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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2013.

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00757

 

 

FS Investment Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   26-1630040

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

Cira Centre

2929 Arch Street, Suite 675

Philadelphia, Pennsylvania 19104

(Address of principal executive office)

(215) 495-1150

(Registrant’s telephone number, including area code)

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer, and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer   ¨    Accelerated filer   ¨
Non-accelerated filer   x  (Do not check if a smaller reporting company)    Smaller reporting company   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The issuer has 254,341,184 shares of common stock outstanding as of May 14, 2013.

 

 

 


Table of Contents

TABLE OF CONTENTS

 

          Page  

PART I—FINANCIAL INFORMATION

  

ITEM 1.

   FINANCIAL STATEMENTS      1   
  

Consolidated Balance Sheets as of March 31, 2013 (Unaudited) and December 31, 2012

     1   
  

Unaudited Consolidated Statements of Operations for the three months ended March 31, 2013 and 2012

     2   
  

Unaudited Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2013 and 2012

     3   
  

Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2013 and 2012

     4   
  

Consolidated Schedules of Investments as of March 31, 2013 (Unaudited) and December 31, 2012

     5   
  

Notes to Unaudited Consolidated Financial Statements

     20   

ITEM 2.

  

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     44   

ITEM 3.

  

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     66   

ITEM 4.

  

CONTROLS AND PROCEDURES

     67   

PART II—OTHER INFORMATION

  

ITEM 1.

  

LEGAL PROCEEDINGS

     68   

ITEM 1A.

  

RISK FACTORS

     68   

ITEM 2.

  

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

     68   

ITEM 3.

  

DEFAULTS UPON SENIOR SECURITIES

     68   

ITEM 4.

  

MINE SAFETY DISCLOSURES

     68   

ITEM 5.

  

OTHER INFORMATION

     68   

ITEM 6.

  

EXHIBITS

     69   
  

SIGNATURES

     74   


Table of Contents

PART I—FINANCIAL INFORMATION

 

Item 1. Financial Statements.

FS Investment Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

 

 

 

     March 31, 2013
(Unaudited)
     December 31,
2012
 

Assets

     

Investments, at fair value (amortized cost—$3,957,033 and $3,825,244, respectively)

   $ 4,084,029       $ 3,934,722   

Cash

     362,896         338,895   

Receivable for investments sold and repaid

     21,134         20,160   

Interest receivable

     52,460         44,711   

Deferred financing costs

     6,930         7,735   

Prepaid expenses and other assets

     411         530   
  

 

 

    

 

 

 

Total assets

   $ 4,527,860       $ 4,346,753   
  

 

 

    

 

 

 

Liabilities

     

Payable for investments purchased

   $ 182,608       $ 79,420   

Credit facilities payable

     978,646         973,046   

Repurchase agreement payable(1)

     700,000         676,667   

Stockholder distributions payable

     17,121         17,003   

Management fees payable

     24,342         21,507   

Accrued capital gains incentive fees(2)

     35,168         39,751   

Subordinated income incentive fees payable(2)

     15,601         13,393   

Administrative services expense payable

     1,545         947   

Interest payable

     9,489         10,242   

Other accrued expenses and liabilities

     2,664         3,039   
  

 

 

    

 

 

 

Total liabilities

     1,967,184         1,835,015   
  

 

 

    

 

 

 

Stockholders’ equity

     

Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding

     —           —    

Common stock, $0.001 par value, 450,000,000 shares authorized, 253,646,574 and 251,890,821 shares issued and outstanding, respectively

     254         252   

Capital in excess of par value

     2,415,470         2,397,826   

Accumulated undistributed net realized gains on investments and gain/loss on foreign currency(3)

     2,467         —    

Accumulated undistributed (distributions in excess of) net investment income(3)

     15,493         4,307   

Net unrealized appreciation (depreciation) on investments and gain/loss on foreign currency

     126,992         109,353   
  

 

 

    

 

 

 

Total stockholders’ equity

     2,560,676         2,511,738   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 4,527,860       $ 4,346,753   
  

 

 

    

 

 

 

Net asset value per share of common stock at period end

   $ 10.10       $ 9.97   

 

(1) See Note 8 for a discussion of the Company’s repurchase transaction.

 

(2) See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income incentive fees.

 

(3) See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

 

1


Table of Contents

FS Investment Corporation

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share amounts)

 

 

 

    Three Months Ended
March 31,
 
    2013     2012  

Investment Income

   

Interest income

  $ 102,214      $ 47,949   

Fee income

    7,764        2,586   

Dividend income

    66        —    
 

 

 

   

 

 

 

Total investment income

    110,044        50,535   
 

 

 

   

 

 

 

Operating expenses

   

Management fees

    22,206        12,204   

Capitals gains incentive fees(1)

    6,350        14,801   

Subordinated income incentive fees(1)

    14,228        —    

Administrative services expenses

    1,436        903   

Stock transfer agent fees

    890        940   

Accounting and administrative fees

    365        421   

Interest expense

    12,136        5,181   

Other general and administrative expenses

    1,704        1,193   
 

 

 

   

 

 

 

Total operating expenses

    59,315        35,643   
 

 

 

   

 

 

 

Net investment income

    50,729        14,892   
 

 

 

   

 

 

 

Realized and unrealized gain/loss

   

Net realized gain (loss) on investments

    14,171        (3,102

Net realized gain (loss) on total return swap(2)

    —          5,074   

Net realized gain (loss) on foreign currency

    (63     17   

Net change in unrealized appreciation (depreciation) on investments

    17,518        61,017   

Net change in unrealized appreciation (depreciation) on total return swap(2)

    —          4,512   

Net change in unrealized gain (loss) on foreign currency

    121        —    
 

 

 

   

 

 

 

Total net realized and unrealized gain (loss) on investments

    31,747        67,518   
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

  $ 82,476      $ 82,410   
 

 

 

   

 

 

 

Per share information—basic and diluted

   

Net increase (decrease) in net assets resulting from operations (Earnings per Share)

  $ 0.33      $ 0.45   
 

 

 

   

 

 

 

Weighted average shares outstanding

    252,606,873        180,149,424   
 

 

 

   

 

 

 

 

(1) See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income incentive fees.

 

(2) On August 29, 2012, the Company terminated its total return swap agreement with Citibank, N.A.

See notes to unaudited consolidated financial statements.

 

2


Table of Contents

FS Investment Corporation

Unaudited Consolidated Statements of Changes in Net Assets

(in thousands)

 

 

 

    Three Months Ended
March 31,
 
    2013     2012  

Operations

   

Net investment income (loss)

  $ 50,729      $ 14,892   

Net realized gain (loss) on investments, total return swap and foreign currency(1)

    14,108        1,989   

Net change in unrealized appreciation (depreciation) on investments

    17,518        61,017   

Net change in unrealized appreciation (depreciation) on total return swap(1)

    —          4,512   

Net change in unrealized gain (loss) on foreign currency

    121        —    
 

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

    82,476        82,410   
 

 

 

   

 

 

 

Stockholder distributions(2)

   

Distributions from net investment income

    (39,543     (37,014

Distributions from net realized gain on investments

    (11,641     —    
 

 

 

   

 

 

 

Net decrease in net assets resulting from stockholder distributions

    (51,184     (37,014
 

 

 

   

 

 

 

Capital share transactions

   

Issuance of common stock

    —          394,472   

Reinvestment of stockholder distributions

    26,476        17,206   

Repurchases of common stock

    (8,830     (3,695

Offering costs

    —          (1,515
 

 

 

   

 

 

 

Net increase in net assets resulting from capital share transactions

    17,646        406,468   
 

 

 

   

 

 

 

Total increase in net assets

    48,938        451,864   

Net assets at beginning of period

    2,511,738        1,498,892   
 

 

 

   

 

 

 

Net assets at end of period

  $ 2,560,676      $ 1,950,756   
 

 

 

   

 

 

 

Accumulated undistributed (distributions in excess of) net investment income(2)

  $ 15,493      $ (20,838
 

 

 

   

 

 

 

 

(1) On August 29, 2012, the Company terminated its total return swap agreement with Citibank, N.A.

 

(2) See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

 

3


Table of Contents

FS Investment Corporation

Unaudited Consolidated Statements of Cash Flows

(in thousands)

 

 

 

     Three Months Ended
March 31,
 
     2013     2012  

Cash flows from operating activities

    

Net increase (decrease) in net assets resulting from operations

   $ 82,476      $ 82,410   

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:

    

Purchases of investments

     (649,916     (561,430

Paid-in-kind interest

     (1,413     —    

Proceeds from sales and repayments of investments

     543,817        219,584   

Net realized (gain) loss on investments

     (14,171     3,102   

Net change in unrealized (appreciation) depreciation on investments

     (17,518     (61,017

Net change in unrealized (appreciation) depreciation on total return swap(1)

     —          (4,512

Accretion of discount

     (10,106     (3,080

Amortization of deferred financing costs

     805        221   

(Increase) decrease in due from counterparty

     —          (56,883

(Increase) decrease in receivable for investments sold and repaid

     (974     (2,573

(Increase) decrease in interest receivable

     (7,749     (9,434

(Increase) decrease in receivable due on total return swap(1)

     —          (1,259

(Increase) decrease in prepaid expenses and other assets

     119        113   

Increase (decrease) in payable for investments purchased

     103,188        21,430   

Increase (decrease) in management fees payable

     2,835        3,573   

Increase (decrease) in accrued capital gains incentive fees

     (4,583     14,801   

Increase (decrease) in subordinated income incentive fees payable

     2,208        —    

Increase (decrease) in administrative services expense payable

     598        729   

Increase (decrease) in interest payable

     (753     1,085   

Increase (decrease) in other accrued expenses and liabilities

     (375     1,168   
  

 

 

   

 

 

 

Net cash used in operating activities

     28,488        (351,972
  

 

 

   

 

 

 

Cash flows from financing activities

    

Issuance of common stock

     —          394,357   

Reinvestment of stockholder distributions

     26,476        17,206   

Repurchases of common stock

     (8,830     (3,695

Offering costs

     —          (1,515

Stockholder distributions

     (51,066     (34,214

Borrowings under credit facilities(2)

     5,600        —    

Borrowings under repurchase agreement(3)

     23,333        85,714   

Deferred financing costs paid

     —          (1,027
  

 

 

   

 

 

 

Net cash provided by financing activities

     (4,487     456,826   
  

 

 

   

 

 

 

Total increase in cash

     24,001        104,854   

Cash at beginning of period

     338,895        210,714   
  

 

 

   

 

 

 

Cash at end of period

   $ 362,896      $ 315,568   
  

 

 

   

 

 

 

Supplemental disclosure

    

Local and excise taxes paid

   $ 821      $ —    
  

 

 

   

 

 

 

 

(1) On August 29, 2012, the Company terminated its total return swap agreement with Citibank, N.A.

 

(2) See Note 8 for a discussion of the Company’s credit facilities. During the three months ended March 31, 2013 and 2012, the Company paid $6,934 and $2,236, respectively, in interest expense on the credit facilities.

 

(3) See Note 8 for a discussion of the Company’s repurchase transaction. During the three months ended March 31, 2013 and 2012, the Company paid $5,150 and $1,639, respectively, in interest expense pursuant to the repurchase agreement.

See notes to unaudited consolidated financial statements.

 

4


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Senior Secured Loans—First Lien—77.6%

       

A.P. Plasman Inc., L+850, 1.5% LIBOR Floor, 12/29/16(f)(h)(j)

  Capital Goods   $ 52,663      $ 51,825      $ 54,506   

AccentCare, Inc., L+500, 1.5% LIBOR Floor, 12/22/16(d)

  Health Care Equipment & Services     2,017        1,838        1,298   

Advantage Sales & Marketing Inc., L+325, 1.0% LIBOR Floor, 12/18/17(d)

  Commercial & Professional Services     4,539        4,532        4,597   

Alcatel-Lucent USA Inc., L+525, 1.0% LIBOR Floor, 7/31/16(d)(e)(j)

  Technology Hardware & Equipment     1,538        1,531        1,563   

Alcatel-Lucent USA Inc., L+625, 1.0% LIBOR Floor, 1/30/19(d)(e)(j)

  Technology Hardware & Equipment     8,200        8,159        8,338   

Allied Security Holdings, LLC, L+400, 1.3% LIBOR Floor, 2/3/17(d)

  Commercial & Professional Services     3,842        3,825        3,884   

Amaya Holdings Corp., L+775, 1.3% LIBOR Floor, 11/5/15(d)(h)(j)

  Consumer Services     24,688        24,362        25,058   

American & Efird Global, LLC, L+900, 1.5% LIBOR Floor, 12/21/16(f)(h)

  Consumer Durables & Apparel     43,216        42,352        44,296   

American Racing and Entertainment, LLC, Term Loan A, L+700, 6/30/14(f)

  Consumer Services     14,250        14,250        14,321   

American Racing and Entertainment, LLC, Term Loan B, 9.0%, 6/30/14(f)

  Consumer Services     7,750        7,750        7,847   

American Racing and Entertainment, LLC, Term Loan C, 9.0%, 6/30/14(f)

  Consumer Services     500        500        506   

Applied Systems, Inc., L+400, 1.5% LIBOR Floor, 12/8/16(d)

  Software & Services     3,497        3,482        3,523   

Ardent Medical Services, Inc., L+525, 1.5% LIBOR Floor, 5/23/18(d)(e)

  Health Care Equipment & Services     8,467        8,385        8,636   

Aspect Software, Inc., L+525, 1.8% LIBOR Floor, 5/6/16(d)

  Software & Services     6,765        6,593        6,863   

Attachmate Corp., L+575, 1.5% LIBOR Floor, 11/22/17(d)(e)

  Software & Services     11,199        11,004        11,350   

Audio Visual Services Group, Inc., L+550, 1.3% LIBOR Floor, 11/9/18(d)

  Technology Hardware & Equipment     3,988        4,000        3,988   

Avaya Inc., L+450, 10/26/17(d)(e)

  Technology Hardware & Equipment     8,986        8,219        8,503   

Avaya Inc., L+675, 1.3% LIBOR Floor, 3/31/18(d)(i)

  Technology Hardware & Equipment     15,000        15,075        15,123   

Barbri, Inc., L+450, 1.5% LIBOR Floor, 6/16/17(d)

  Consumer Services     3,227        3,220        3,235   

Barrington Broadcasting Group LLC, L+600, 1.5% LIBOR Floor, 6/14/17(f)

  Media     2,577        2,515        2,604   

Blackboard Inc., L+475, 1.5% LIBOR Floor, 10/4/18(d)(f)(h)

  Software & Services     18,282        18,349        18,579   

Boomerang Tube, LLC, L+950, 1.5% LIBOR Floor, 10/11/17(d)(h)

  Energy     24,375        23,694        24,680   

Brasa (Holdings) Inc., L+625, 1.3% LIBOR Floor, 7/19/19(d)

  Consumer Services     5,804        5,736        5,848   

Bushnell Inc., L+425, 1.5% LIBOR Floor, 8/24/15(d)

  Consumer Durables & Apparel     7,581        7,362        7,605   

Caesars Entertainment Operating Co., L+425, 1/26/18(d)(e)(f)(j)

  Consumer Services     15,302        13,430        14,042   

Calceus Acquisition, Inc., L+450, 1.3% LIBOR Floor, 1/31/20(d)

  Retailing     3,333        3,317        3,381   

Cannery Casino Resorts, LLC, L+475, 1.3% LIBOR Floor, 10/2/18(d)

  Consumer Services     3,980        3,943        4,056   

Capital Vision Services, LLC, PRIME+625, 1.3% PRIME Floor, 12/3/17(f)(h)

  Health Care Equipment & Services     17,153        17,153        17,325   

Capital Vision Services, LLC, L+100, 12/3/17

  Health Care Equipment & Services     2,804        2,804        2,832   

CCM Merger, Inc., L+475, 1.3% LIBOR Floor, 3/1/17(d)

  Consumer Services     4,732        4,683        4,786   

Cengage Learning Acquisitions, Inc., L+250, 7/3/14(d)

  Consumer Durables & Apparel     3,109        2,643        2,406   

Chrysler Group LLC, L+475, 1.3% LIBOR Floor, 5/24/17(d)(e)(f)(h)

  Automobiles & Components     22,387        21,705        22,836   

Citgo Petroleum Corp., L+600, 2.0% LIBOR Floor, 6/24/15(e)(j)

  Energy     2,911        2,936        2,945   

Citgo Petroleum Corp., L+700, 2.0% LIBOR Floor, 6/23/17(e)(f)(j)

  Energy     7,638        7,622        7,817   

Clear Channel Communications, Inc., L+365, 1/29/16(d)(e)(f)

  Media     27,557        22,694        24,502   

Collective Brands, Inc., L+600, 1.3% LIBOR Floor, 10/9/19(d)(f)

  Consumer Durables & Apparel     18,901        18,748        19,193   

CompuCom Systems, Inc., L+525, 1.3% LIBOR Floor, 10/4/18(d)

  Software & Services     3,440        3,408        3,511   

The Container Store, Inc., L+500, 1.3% LIBOR Floor, 4/5/19(d)(e)(i)

  Consumer Durables & Apparel     16,822        16,751        16,990   

Corel Corp., L+700, 5/2/14(d)(j)

  Software & Services     9,000        8,961        9,045   

Corner Investment PropCo, LLC, L+975, 1.3% LIBOR Floor, 11/2/19(d)(f)(j)

  Consumer Services     24,000        23,543        24,360   

Crestwood Holdings LLC, L+825, 1.5% LIBOR Floor, 3/26/18(f)

  Energy     16,363        16,284        16,861   

DAE Aviation Holdings, Inc., L+500, 1.3% LIBOR Floor, 11/2/18(h)

  Capital Goods     6,807        6,678        6,935   

DAE Aviation Holdings, Inc., L+500, 1.3% LIBOR Floor, 11/2/18(h)

  Capital Goods     3,086        3,027        3,144   

Drumm Investors LLC, L+375, 1.3% LIBOR Floor, 5/4/18(d)(f)

  Health Care Equipment & Services     8,520        8,023        8,261   

Dynegy Power, LLC (GasCo), L+775, 1.5% LIBOR Floor, 8/5/16(f)

  Energy     6,080        6,200        6,349   

Eastman Kodak Co., 10.6%, 9/30/13(f)

  Consumer Durables & Apparel     7,362        7,362        7,049   

Eastman Kodak Co., 9.8%, 9/30/13

  Consumer Durables & Apparel     9,644        9,644        9,210   

Eastman Kodak Co., L+1050, 1.0% LIBOR Floor, 9/30/13(d)(f)

  Consumer Durables & Apparel     21,401        20,433        21,966   

Education Management LLC, L+400, 6/1/16(f)(j)

  Consumer Services     3,967        3,273        3,297   

Education Management LLC, L+700, 1.3% LIBOR Floor, 3/29/18(e)(j)

  Consumer Services     15,827        15,757        13,724   

Edwards (Cayman Island II) Ltd., L+350, 1.3% LIBOR Floor, 3/26/20(i)(j)

  Capital Goods     4,040        4,000        4,061   

 

See notes to unaudited consolidated financial statements.

 

5


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

EquiPower Resources Holdings, LLC, L+425, 1.3% LIBOR Floor, 12/21/18(d)

  Utilities   $ 4,895      $ 4,916      $ 4,991   

ERC Ireland Holdings Ltd., EURIBOR+300, 1.0% PIK, 9/30/17(i)(j)

  Telecommunication Services   11,176        10,835        12,658   

FairPoint Communications, Inc., L+625, 1.3% LIBOR Floor, 2/14/19(d)(e)

  Telecommunication Services   $ 21,875        21,658        21,371   

Flanders Corp., L+950, 1.5% LIBOR Floor, 5/16/18(f)(h)

  Capital Goods     38,993        38,139        40,357   

Fleetgistics Holdings, Inc., L+588, 2.0% LIBOR Floor, 3/23/15(f)

  Transportation     1,999        1,986        1,839   

Florida Gaming Centers, Inc., 15.8%, 4/25/16(f)

  Consumer Services     12,517        12,355        12,830   

FoxCo Acquisition Sub, LLC, L+450, 1.0% LIBOR Floor, 7/14/17(i)

  Media     647        645        659   

Fram Group Holdings Inc., L+500, 1.5% LIBOR Floor, 7/29/17(d)

  Automobiles & Components     1,944        1,909        1,974   

FREIF North American Power I LLC (TLB), L+450, 1.5% LIBOR Floor, 3/29/19(d)

  Energy     3,029        3,036        3,060   

FREIF North American Power I LLC (TLC), L+450, 1.5% LIBOR Floor, 3/29/19(d)

  Energy     880        882        889   

Generac Power Systems, Inc., L+500, 1.3% LIBOR Floor, 5/30/18(d)(j)

  Capital Goods     3,236        3,295        3,317   

Generic Drug Holdings, Inc., L+375, 1.3% LIBOR Floor, 10/29/19(d)

  Retailing     2,721        2,695        2,719   

Genesys Telecom Holdings, U.S., Inc., L+300, 1.0% LIBOR Floor, 1/25/20(d)

  Telecommunication Services     1,711        1,694        1,725   

Gymboree Corp., L+350, 1.5% LIBOR Floor, 2/23/18(d)

  Consumer Durables & Apparel     3,702        3,486        3,597   

Halifax Media Holdings LLC, L+1050, 0.8% LIBOR Floor, 6/30/16(f)(h)

  Media     13,568        13,314        13,839   

Hamilton Lane Advisors, LLC, L+500, 1.5% LIBOR Floor, 2/23/18(d)

  Diversified Financials     2,694        2,682        2,718   

Harbor Freight Tools USA, Inc., L+425, 1.3% LIBOR Floor, 11/14/17(d)

  Consumer Durables & Apparel     4,354        4,353        4,415   

HarbourVest Partners L.P., L+375, 1.0% LIBOR Floor, 11/21/17(d)

  Diversified Financials     5,526        5,500        5,554   

Harland Clarke Holdings Corp., L+250, 6/30/14(f)

  Commercial & Professional Services     6,317        5,820        6,292   

Hawaiian Telcom Communications, Inc., L+575, 1.3% LIBOR Floor, 2/28/17(d)(f)(h)

  Telecommunication Services     16,857        16,750        17,237   

HBC Solutions, Inc., L+875, 1.5% LIBOR Floor, 2/4/18(d)(f)(g)(h)

  Media     90,000        90,000        90,000   

Hyland Software, Inc., L+425, 1.3% LIBOR Floor, 10/25/19(d)

  Software & Services     4,906        4,905        4,946   

Ikaria Acquisition Inc., L+650, 1.3% LIBOR Floor, 9/18/17(d)

  Pharmaceuticals, Biotechnology & Life Sciences     3,957        3,939        3,997   

ILC Industries, LLC, L+600, 1.5% LIBOR Floor, 7/11/18(d)(h)

  Capital Goods     10,105        9,923        10,072   

Ineos Finance Plc, L+525, 1.3% LIBOR Floor, 5/4/18(d)(e)(f)(j)

  Materials     13,879        13,753        14,137   

Infogroup Inc., L+425, 1.5% LIBOR Floor, 5/25/18(d)

  Software & Services     3,338        2,954        3,050   

Insight Equity A.P. X, L.P., L+850, 1.0% LIBOR Floor, 10/26/18(f)(g)(h)

  Household & Personal Products     65,000        63,785        65,650   

Intelsat Jackson Holdings SA, L+325, 1.3% LIBOR Floor, 4/2/18(d)(j)

  Telecommunication Services     2,955        2,955        3,003   

Intralinks, Inc., L+425, 1.5% LIBOR Floor, 6/15/14(f)(j)

  Software & Services     1,031        950        1,036   

inVentiv Health, Inc., L+600, 1.5% LIBOR Floor, 8/4/16(d)

  Health Care Equipment & Services     1,066        1,001        1,062   

inVentiv Health, Inc., L+625, 1.5% LIBOR Floor, 5/15/18(e)

  Health Care Equipment & Services     2,725        2,705        2,705   

Ipreo Holdings LLC, L+525, 1.3% LIBOR Floor, 8/7/17(d)(f)

  Software & Services     8,884        8,785        8,995   

JHCI Acquisition, Inc., L+250, 6/19/14(d)(e)(i)

  Transportation     6,293        5,880        5,991   

KIK Custom Products Inc., L+225, 6/2/14(e)(j)

  Household & Personal Products     10,247        9,760        9,833   

La Paloma Generating Co., LLC, L+550, 1.5% LIBOR Floor, 8/25/17(e)(f)

  Energy     8,675        8,437        8,711   

Lantiq Deutschland GmbH, L+900, 2.0% LIBOR Floor, 11/16/15(f)(j)

  Software & Services     12,105        11,308        11,076   

Leading Edge Aviation Services, Inc., L+850, 1.5% LIBOR Floor, 4/5/18(d)(g)(h)

  Capital Goods     36,235        35,610        36,235   

Maritime Telecommunications Network, Inc., L+600, 1.5% LIBOR Floor, 3/3/16(f)

  Telecommunication Services     4,109        4,071        4,091   

McGraw-Hill Global Education Holdings, LLC, L+775, 1.3% LIBOR Floor, 3/22/19(d)(e)(i)

  Media     20,833        20,208        20,182   

Micronics, Inc., L+800, 1.3% LIBOR Floor, 3/28/19(d)(h)

  Capital Goods     23,000        22,540        22,540   

MMM Holdings, Inc., L+825, 1.5% LIBOR Floor, 12/12/17

  Health Care Equipment & Services     13,509        13,255        13,602   

Mood Media Corp., L+550, 1.5% LIBOR Floor, 5/7/18(d)(j)

  Media     3,037        3,009        3,058   

MSO of Puerto Rico, Inc., L+825, 1.5% LIBOR Floor, 12/12/17

  Health Care Equipment & Services     9,824        9,640        9,891   

National Mentor Holdings, Inc., L+525, 1.3% LIBOR Floor, 2/9/17(d)

  Health Care Equipment & Services     4,959        4,959        5,038   

National Vision, Inc., L+575, 1.3% LIBOR Floor, 8/2/18(d)

  Health Care Equipment & Services     4,740        4,749        4,799   

Natural Products Group, LLC, PRIME+600, 4.0% PRIME Floor, 3/5/15(g)

  Household & Personal Products     1,325        1,272        1,292   

Navistar, Inc., L+550, 1.5% LIBOR Floor, 8/17/17(d)(f)(h)(j)

  Capital Goods     20,892        20,841        21,172   

NCI Building Systems, Inc., L+675, 1.3% LIBOR Floor, 5/2/18(d)(e)(g)(h)(j)

  Capital Goods     30,720        30,014        31,272   

NCO Group, Inc., L+675, 1.3% LIBOR Floor, 4/3/18(e)(h)

  Software & Services     19,734        19,390        19,993   

New HB Acquisition, LLC, L+550, 1.3% LIBOR Floor, 3/31/20(d)(i)

  Food, Beverage & Tobacco     3,896        3,857        3,994   

Nexeo Solutions, LLC, L+350, 1.5% LIBOR Floor, 9/8/17

  Capital Goods     3,980        3,907        3,994   

 

See notes to unaudited consolidated financial statements.

 

6


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

NSH Merger Sub, Inc., L+650, 1.8% LIBOR Floor, 2/2/17(d)(f)

  Health Care Equipment & Services   $ 19,042      $ 18,878      $ 18,994   

On Assignment, Inc., L+375, 1.3% LIBOR Floor, 5/15/19(d)(j)

  Commercial & Professional Services     2,629        2,616        2,666   

Onex Carestream Finance L.P., L+350, 1.5% LIBOR Floor, 2/25/17(d)(j)

  Health Care Equipment & Services     1,415        1,381        1,424   

Ozburn-Hessey Holding Co., LLC, L+625, 2.0% LIBOR Floor, 4/8/16(d)(f)

  Transportation     5,650        5,459        5,678   

Panda Sherman Power, LLC, L+750, 1.5% LIBOR Floor, 9/14/18(d)

  Energy     9,273        9,195        9,412   

Panda Temple Power, LLC (TLA), L+700, 1.5% LIBOR Floor, 7/17/18(f)

  Energy     3,000        3,000        3,086   

Patheon Inc., L+600, 1.3% LIBOR Floor, 12/6/18(d)(j)

  Pharmaceuticals, Biotechnology & Life Sciences     10,233        9,936        10,412   

Pelican Products, Inc., L+550, 1.5% LIBOR Floor, 7/11/18(d)

  Capital Goods     2,965        2,937        2,991   

Peninsula Gaming LLC, L+450, 1.3% LIBOR Floor, 8/3/17(f)(j)

  Consumer Services     4,594        4,552        4,680   

Pharmaceutical Research Associates, Inc., L+525, 1.3% LIBOR Floor, 12/10/17(d)

  Health Care Equipment & Services     6,307        6,251        6,417   

Presidio, Inc., L+450, 1.3% LIBOR Floor, 3/31/17(d)(f)(g)(h)

  Software & Services     15,263        15,197        15,435   

Princeton Review, Inc., PRIME+550, 12/7/14(g)

  Consumer Services     1,111        1,030        916   

Property Data (U.S.) I, Inc., L+550, 1.5% LIBOR Floor, 1/4/17(f)

  Software & Services     4,295        4,253        4,336   

Protection One, Inc., L+325, 1.0% LIBOR Floor, 3/21/19(d)

  Consumer Services     2,538        2,544        2,562   

PRV Aerospace, LLC, L+525, 1.3% LIBOR Floor, 5/9/18(d)

  Capital Goods     4,976        4,965        5,020   

RBS Holding Co. LLC, PRIME+600, 3/23/17(d)

  Commercial & Professional Services     9,800        6,183        3,234   

RBS Worldpay, Inc., L+400, 1.3% LIBOR Floor, 11/30/17(d)

  Software & Services     1,522        1,524        1,534   

Reynolds Group Holdings, Inc., L+375, 1.0% LIBOR Floor, 9/28/18(d)(j)

  Consumer Durables & Apparel     4,282        4,282        4,351   

Rocket Software, Inc., L+450, 1.3% LIBOR Floor, 2/8/18(d)

  Software & Services     6,613        6,622        6,659   

Roundy’s Supermarkets, Inc., L+450, 1.3% LIBOR Floor, 2/13/19(d)(j)

  Food & Staples Retailing     2,767        2,643        2,765   

Safariland, LLC, L+925, 1.5% LIBOR Floor, 7/27/18(d)(f)(h)

  Capital Goods     49,893        48,980        49,893   

Sagittarius Restaurants LLC, L+550, 2.0% LIBOR Floor, 5/18/15(d)(f)

  Consumer Services     6,530        6,500        6,572   

SESAC Holdings Inc., L+475, 1.3% LIBOR Floor, 2/7/19(d)

  Media     3,521        3,486        3,558   

Shell Topco L.P., L+750, 1.5% LIBOR Floor, 9/28/18(d)(h)

  Energy     33,000        32,541        33,330   

Sheridan Production Co., LLC, L+375, 1.3% LIBOR Floor, 10/1/19(e)

  Energy     5,211        5,162        5,269   

Shield Finance Co. Sarl, L+525, 1.3% LIBOR Floor, 5/10/19(f)(j)

  Software & Services     10,947        10,801        11,077   

Sirius Computer Solutions, Inc., L+575, 1.3% LIBOR Floor, 11/30/18(d)

  Software & Services     9,231        9,142        9,369   

Six3 Systems, Inc., L+575, 1.3% LIBOR Floor, 10/4/19(d)

  Software & Services     4,663        4,619        4,709   

Smarte Carte, Inc., L+650, 1.3% LIBOR Floor, 11/30/17(d)(f)(h)

  Commercial & Professional Services     60,238        59,567        62,045   

Smile Brands Group Inc., L+525, 1.8% LIBOR Floor, 12/21/17(d)(e)

  Health Care Equipment & Services     17,592        16,987        16,668   

Sorenson Communication, Inc., L+825, 1.3% LIBOR Floor, 10/31/14(d)(e)(f)(h)(i)

  Telecommunication Services     66,208        66,208        67,318   

Spansion LLC, L+400, 1.3% LIBOR Floor, 12/11/18(e)(j)

  Semiconductors & Semiconductor Equipment     6,352        6,298        6,438   

Sports Authority, Inc., L+600, 1.5% LIBOR Floor, 11/16/17(d)(e)(f)

  Consumer Durables & Apparel     22,361        22,186        22,585   

Sprouts Farmers Markets Holdings, LLC, L+475, 4/18/16

  Food & Staples Retailing     5,250        5,250        5,007   

Sprouts Farmers Markets Holdings, LLC, L+475, 1.3% LIBOR Floor, 4/18/18(d)

  Food & Staples Retailing     4,791        4,736        4,838   

Star West Generation LLC, L+400, 1.0% LIBOR Floor, 3/13/20

  Energy     2,747        2,734        2,786   

SuperValu Inc., L+500, 1.3% LIBOR Floor, 2/28/19(d)(e)(i)(j)

  Food & Staples Retailing     20,000        19,800        20,374   

Surgery Center Holdings, Inc., L+500, 1.5% LIBOR Floor, 2/6/17(d)(f)(h)

  Health Care Equipment & Services     14,656        14,447        14,692   

Swiss Watch International, Inc., L+725, 1.3% LIBOR Floor, 11/8/18(d)(f)(h)

  Consumer Durables & Apparel     49,625        48,690        50,618   

Technicolor SA, EURIBOR+500, 2.0% EURIBOR Floor, 5/26/16(j)

  Media   2,091        2,487        2,707   

Technicolor SA, EURIBOR+600, 2.0% EURIBOR Floor, 5/26/17(j)

  Media   6,279        7,442        8,127   

Technicolor SA, L+500, 2.0% LIBOR Floor, 5/26/16(g)(j)

  Media   $ 1,479        1,351        1,496   

Technicolor SA, L+600, 2.0% LIBOR Floor, 5/26/17(g)(j)

  Media     4,376        3,986        4,426   

Tervita Corp., L+500, 1.3% LIBOR Floor, 5/15/18(d)(j)

  Commercial & Professional Services     8,095        8,015        8,209   

Texas Competitive Electric Holdings Co. LLC, L+350, 10/10/14(d)(e)(f)(g)

  Utilities     76,891        58,235        56,622   

Texas Competitive Electric Holdings Co. LLC, L+450, 10/10/17(g)

  Utilities     38,867        27,292        27,650   

Therakos, Inc., L+625, 1.3% LIBOR Floor, 12/27/17(d)(f)(i)

  Pharmaceuticals, Biotechnology & Life Sciences     27,275        26,604        27,343   

Titlemax, Inc., L+850, 1.5% LIBOR Floor, 6/15/15(f)(h)

  Diversified Financials     25,000        24,809        25,500   

TNS, Inc., L+400, 1.0% LIBOR Floor, 2/15/20(d)(i)

  Telecommunication Services     7,051        6,981        7,054   

Topaz Power Holdings, LLC, L+400, 1.3% LIBOR Floor, 2/26/20(d)

  Energy     6,541        6,476        6,655   

Total Safety U.S., Inc., L+450, 1.3% LIBOR Floor, 3/12/20(d)(i)

  Energy     2,236        2,225        2,259   

Totes Isotoner Corp., L+575, 1.5% LIBOR Floor, 7/7/17(d)

  Consumer Durables & Apparel     6,882        6,790        6,904   

Toys “R” Us-Delaware, Inc., L+450, 1.5% LIBOR Floor, 9/1/16(d)(e)

  Consumer Durables & Apparel     3,833        3,833        3,762   

TravelCLICK, Inc., L+500, 1.5% LIBOR Floor, 3/16/16(d)

  Consumer Services     7,836        7,752        7,845   

Travelport LLC, L+475, 8/21/15(e)(f)(g)

  Consumer Services     14,519        13,367        14,462   

 

See notes to unaudited consolidated financial statements.

 

7


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

U.S. Security Associates Holdings, Inc., L+475, 1.3% LIBOR Floor, 7/28/17(d)

  Commercial & Professional Services   $ 3,948      $ 3,948      $ 3,984   

United Surgical Partners International Inc., L+475, 1.3% LIBOR Floor, 4/3/19(d)

  Health Care Equipment & Services     4,363        4,361        4,400   

Univar Inc., L+350, 1.5% LIBOR Floor, 6/30/17(e)

  Materials     6,492        6,492        6,568   

Univision Communications Inc., L+425, 3/31/17(e)(f)

  Media     5,719        5,176        5,755   

Virtual Radiologic Corp., PRIME+450, 12/22/16(g)

  Health Care Equipment & Services     3,528        3,472        2,493   

Vision Solutions, Inc., L+450, 1.5% LIBOR Floor, 7/22/16(d)

  Software & Services     6,647        6,604        6,681   

VPG Group Holdings LLC, L+900, 1.0% LIBOR Floor, 10/4/16(f)(h)

  Materials     54,338        53,509        54,609   

Wall Street Systems Holdings, Inc., L+450, 1.3% LIBOR Floor, 10/25/19(d)

  Software & Services     4,988        4,917        5,053   

Wide OpenWest Finance LLC, L+500, 1.3% LIBOR Floor, 7/17/18(d)

  Media     6,203        6,195        6,280   

Willbros United States Holdings, Inc., L+750, 2.0% LIBOR Floor, 6/30/14(h)(j)

  Energy     6,705        6,646        6,688   

WireCo WorldGroup Inc., L+475, 1.3% LIBOR Floor, 2/15/17(d)

  Capital Goods     3,549        3,548        3,599   
     

 

 

   

 

 

 

Total Senior Secured Loans—First Lien

        1,961,987        2,001,942   

Unfunded Loan Commitments

        (14,004     (14,004
     

 

 

   

 

 

 

Net Senior Secured Loans—First Lien

        1,947,983        1,987,938   
     

 

 

   

 

 

 

Senior Secured Loans—Second Lien—33.3%

       

Advance Pierre Foods, Inc., L+825, 1.3% LIBOR Floor, 10/10/17(e)(f)(g)

  Food & Staples Retailing     22,556        22,205        23,364   

Advantage Sales & Marketing Inc., L+725, 1.0% LIBOR Floor, 6/12/18(e)(f)

  Commercial & Professional Services     17,412        17,432        17,716   

Affordable Care, Inc., L+925, 1.3% LIBOR Floor, 12/26/19(d)(e)(f)(g)(h)

  Health Care Equipment & Services     40,000        39,425        40,200   

AlixPartners, LLP, L+925, 1.5% LIBOR Floor, 12/27/19(e)

  Diversified Financials     15,000        14,580        15,413   

Alliance Laundry Systems LLC, L+825, 1.3% LIBOR Floor, 12/10/19(d)(e)

  Capital Goods     4,025        3,986        4,130   

American Racing and Entertainment, LLC, 12.0%, 7/2/18(g)

  Consumer Services     16,800        16,245        16,968   

Attachmate Corp., L+950, 1.5% LIBOR Floor, 11/22/18(e)(f)

  Software & Services     29,000        28,172        29,308   

Audio Visual Services Group, Inc., L+950, 1.3% LIBOR Floor, 5/9/18(d)(f)(g)

  Technology Hardware & Equipment     52,885        51,873        52,664   

BJ’s Wholesale Club, Inc., L+850, 1.3% LIBOR Floor, 3/26/20(e)(f)

  Food & Staples Retailing     8,298        8,219        8,630   

Blackboard Inc., L+1000, 1.5% LIBOR Floor, 4/4/19(f)(g)

  Software & Services     22,000        20,157        21,918   

BNY ConvergEx Group, LLC, L+700, 1.8% LIBOR Floor, 12/18/17(g)

  Software & Services     9,000        9,020        8,941   

Brasa (Holdings) Inc., L+950, 1.5% LIBOR Floor, 1/20/20(f)

  Consumer Services     17,391        16,754        17,652   

Brock Holdings III, Inc., L+825, 1.8% LIBOR Floor, 3/16/18(e)

  Energy     7,756        7,664        7,863   

Camp International Holding Co., L+875, 1.3% LIBOR Floor, 11/29/19(d)

  Capital Goods     6,207        6,092        6,397   

Cannery Casino Resorts, LLC, L+875, 1.3% LIBOR Floor, 10/2/19(g)

  Consumer Services     12,000        11,773        11,726   

CHG Buyer Corp., L+775, 1.3% LIBOR Floor, 11/19/20(d)

  Health Care Equipment & Services     5,787        5,675        5,958   

Crossmark Holdings, Inc., L+750, 1.3% LIBOR Floor, 12/21/20(e)

  Commercial & Professional Services     7,778        7,701        7,807   

DEI Sales, Inc., L+850, 1.5% LIBOR Floor, 1/15/18(f)(g)

  Commercial & Professional Services     57,500        56,762        58,075   

EquiPower Resources Holdings, LLC, L+850, 1.5% LIBOR Floor, 6/21/19(d)

  Utilities     7,000        6,871        7,193   

EZE Software Group LLC, L+750, 1.3% LIBOR Floor, 2/22/21(e)(i)

  Software & Services     4,762        4,714        4,869   

FR Brand Acquisition Corp., L+975, 1.3% LIBOR Floor, 10/11/19(e)(g)

  Energy     36,000        34,522        36,000   

Fram Group Holdings Inc., L+900, 1.5% LIBOR Floor, 1/29/18(e)

  Automobiles & Components     2,000        1,992        2,040   

ILC Industries, LLC, L+1000, 1.5% LIBOR Floor, 6/14/19(f)(g)

  Capital Goods     37,000        35,715        36,653   

JHCI Acquisition, Inc., L+550, 12/19/14(g)

  Transportation     11,250        10,629        9,000   

John Henry Holdings, Inc., L+900, 1.3% LIBOR Floor, 5/6/19(f)

  Commercial & Professional Services     23,250        22,914        23,541   

Kronos Inc., L+850, 1.3% LIBOR Floor, 4/30/20(d)(e)(f)

  Software & Services     30,769        30,473        32,231   

LM U.S. Member LLC, L+825, 1.3% LIBOR Floor, 10/19/20

  Transportation     9,374        9,240        9,608   

NES Rentals Holdings, Inc., L+1150, 1.8% LIBOR Floor, 10/14/14(g)

  Capital Goods     8,500        8,465        8,500   

OSP Group, Inc., L+900, 1.3% LIBOR Floor, 7/31/20(d)(f)(g)(h)

  Consumer Durables & Apparel     85,000        85,000        86,275   

Paw Luxco II Sarl, EURIBOR+950, 1/29/19(j)

  Consumer Durables & Apparel   20,000        23,878        22,878   

Pelican Products, Inc., L+1000, 1.5% LIBOR Floor, 6/14/19(d)

  Capital Goods   $ 6,667        6,544        6,633   

Pharmaceutical Research Associates, Inc., L+925, 1.3% LIBOR Floor, 6/10/19(f)(i)

  Health Care Equipment & Services     30,000        29,760        30,413   

Pregis Corp., L+1000, 1.5% LIBOR Floor, 3/23/18(f)(g)

  Capital Goods     45,000        44,245        45,450   

 

See notes to unaudited consolidated financial statements.

 

8


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Samson Investment Co., L+475, 1.3% LIBOR Floor, 9/25/18(d)

  Energy   $ 5,515      $ 5,476      $ 5,589   

Sedgwick CMS Holdings Inc., L+750, 1.5% LIBOR Floor, 5/30/17

  Commercial & Professional Services     500        500        508   

Sensus USA Inc., L+725, 1.3% LIBOR Floor, 5/9/18(d)(e)

  Capital Goods     8,571        8,577        8,630   

SESAC Holdings Inc., L+875, 1.3% LIBOR Floor, 7/12/19(f)

  Media     3,000        2,956        3,075   

Smart & Final Inc., L+925, 1.3% LIBOR Floor, 11/16/20(g)

  Food & Staples Retailing     6,400        6,213        6,648   

SRAM, LLC, L+700, 1.5% LIBOR Floor, 12/7/18(d)

  Consumer Durables & Apparel     5,000        4,961        5,100   

Stadium Management Corp., L+950, 1.3% LIBOR Floor, 12/7/18(f)

  Consumer Services     23,529        23,112        23,647   

TravelCLICK, Inc., L+850, 1.3% LIBOR Floor, 3/26/18(f)(g)

  Consumer Services     34,925        34,577        36,060   

TriZetto Group, Inc., L+725, 1.3% LIBOR Floor, 3/28/19

  Software & Services     8,372        8,254        8,498   

Vertafore, Inc., L+825, 1.5% LIBOR Floor, 10/27/17(e)

  Software & Services     14,750        14,705        15,119   

Wall Street Systems Holdings, Inc., L+800, 1.3% LIBOR Floor, 10/25/20(d)(i)

  Software & Services     7,000        6,867        7,070   

WP CPP Holdings, LLC, L+925, 1.3% LIBOR Floor, 6/28/20(d)(e)(h)

  Capital Goods     15,000        14,850        15,563   
     

 

 

   

 

 

 

Total Senior Secured Loans—Second Lien

        829,745        851,521   
     

 

 

   

 

 

 

Senior Secured Bonds—19.5%

       

Advanced Lighting Technologies, Inc., 10.5%, 6/1/19(f)(g)

  Materials     78,500        76,749        76,145   

Allen Systems Group, Inc., 10.5%, 11/15/16(f)

  Software & Services     23,698        19,710        15,404   

Aspect Software, Inc., 10.6%, 5/15/17(e)

  Software & Services     4,000        4,000        4,015   

Avaya Inc., 7.0%, 4/1/19(e)(f)(g)

  Technology Hardware & Equipment     23,500        21,848        23,089   

Avaya Inc., 9.0%, 4/1/19(e)

  Technology Hardware & Equipment     5,000        5,000        5,219   

Cenveo Corp., 8.9%, 2/1/18(e)(f)

  Commercial & Professional Services     23,788        21,792        23,744   

Chester Downs & Marina, LLC, 9.3%, 2/1/20(e)

  Consumer Services     3,750        3,783        3,618   

Clear Channel Communications, Inc., 9.0%, 12/15/19(d)(e)

  Media     2,073        1,830        2,003   

Eastman Kodak Co., 10.6%, 3/15/19(f)

  Consumer Durables & Apparel     7,138        4,828        3,500   

Eastman Kodak Co., 9.8%, 3/1/18

  Consumer Durables & Apparel     9,348        4,494        4,581   

Edgen Murray Corp., 8.8%, 11/1/20(e)

  Capital Goods     1,400        1,390        1,463   

Energy Future Intermediate Holding Co. LLC, 11.8%, 3/1/22(f)

  Utilities     14,250        14,684        16,388   

FairPoint Communications, Inc., 8.8%, 8/15/19(e)(f)

  Telecommunication Services     26,000        26,000        25,545   

Global A&T Electronics Ltd., 10.0%, 2/1/19(e)(j)

  Technology Hardware & Equipment     9,000        9,000        9,744   

HOA Restaurant Group, LLC, 11.3%, 4/1/17(f)

  Consumer Services     14,100        14,122        13,293   

JW Aluminum Co., 11.5%, 11/15/17(f)

  Materials     20,000        19,647        20,226   

Kinetic Concepts, Inc., 10.5%, 11/1/18(e)(f)

  Health Care Equipment & Services     18,660        18,112        20,336   

Logan’s Roadhouse Inc., 10.8%, 10/15/17(e)(i)

  Consumer Services     2,494        2,349        2,345   

Neff Rental LLC, 9.6%, 5/15/16

  Capital Goods     7,351        7,666        7,779   

NES Rentals Holdings, Inc., 12.3%, 4/15/15(f)(g)

  Capital Goods     38,375        38,663        40,704   

Palace Entertainment Holdings, LLC, 8.9%, 4/15/17(e)

  Consumer Services     2,400        2,400        2,556   

PH Holding LLC, 9.8%, 12/31/17(f)

  Consumer Durables & Apparel     10,000        9,813        10,200   

Reynolds Group Holdings, Inc., 5.8%, 10/15/20(e)(j)

  Consumer Durables & Apparel     2,750        2,750        2,812   

Ryerson Inc., 9.0%, 10/15/17(e)

  Capital Goods     3,100        3,100        3,391   

Sorenson Communication, Inc., 10.5%, 2/1/15(g)

  Telecommunication Services     39,000        34,229        33,814   

Speedy Cash Intermediate Holdings Corp., 10.8%, 5/15/18(e)(f)

  Diversified Financials     19,000        19,340        20,448   

Symbion, Inc., 8.0%, 6/15/16(e)(f)

  Health Care Equipment & Services     12,460        12,334        13,239   

Technicolor SA, 9.4%, 4/23/16(d)(g)(i)(j)

  Media     5,547        5,673        6,097   

Technicolor SA, 9.4%, 5/26/17(d)(g)(i)(j)

  Media     20,947        20,535        23,023   

Tervita Corp., 8.0%, 11/15/18(e)(j)

  Commercial & Professional Services     6,000        6,000        6,195   

Texas Competitive Electric Holdings Co. LLC, 11.5%, 10/1/20(f)

  Utilities     10,000        9,918        7,567   

Titlemax, Inc., 13.3%, 7/15/15(f)

  Diversified Financials     14,500        14,981        15,979   

Tops Holding Corp., 8.9%, 12/15/17(e)

  Food & Staples Retailing     2,750        2,750        3,025   

Travelport LLC, L+600 PIK, 12/1/16(g)

  Consumer Services     23,478        18,946        22,175   

Trinseo Materials Operating SCA, 8.8%, 2/1/19(e)

  Materials     4,000        4,000        3,985   

Viasystems Group Inc., 7.9%, 5/1/19(e)(j)

  Technology Hardware & Equipment     5,000        5,000        5,263   
     

 

 

   

 

 

 

Total Senior Secured Bonds

        487,436        498,910   
     

 

 

   

 

 

 

 

See notes to unaudited consolidated financial statements.

 

9


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Subordinated Debt—20.0%

       

Advantage Sales & Marketing Inc., 13.0%, 12/23/18(g)

  Commercial & Professional Services   $ 10,000      $ 9,823      $ 10,000   

Alta Mesa Holdings, L.P., 9.6%, 10/15/18(e)

  Energy     16,700        16,564        17,827   

Asurion, LLC, L+950, 1.5% LIBOR Floor, 8/16/19(f)

  Insurance     15,000        14,596        16,172   

Aurora Diagnostics, LLC, 10.8%, 1/15/18(f)

  Pharmaceuticals, Biotechnology & Life Sciences     20,065        20,117        15,851   

Aurora USA Oil & Gas, Inc., 7.5%, 4/1/20(e)(j)

  Energy     7,000        7,000        7,111   

BakerCorp. International Inc., 8.3%, 6/1/19(f)

  Commercial & Professional Services     2,000        2,000        2,073   

Bresnan Broadband Holdings LLC, 8.0%, 12/15/18(e)(j)

  Telecommunication Services     5,000        5,000        5,488   

Cedar Fair, L.P., 5.3%, 3/15/21(e)(j)

  Consumer Services     3,500        3,500        3,512   

Cincinnati Bell Inc., 8.4%, 10/15/20(e)(j)

  Telecommunication Services     8,895        8,754        9,295   

Comstock Resources, Inc., 9.5%, 6/15/20(e)(f)(j)

  Energy     21,000        20,078        23,277   

Cumulus Media Inc., 7.8%, 5/1/19(f)(j)

  Media     5,000        4,469        5,137   

Del Monte Foods Co., 7.6%, 2/15/19(e)

  Food, Beverage & Tobacco     3,500        3,498        3,637   

DigitalGlobe, Inc., 5.3%, 2/1/21(e)(j)

  Software & Services     1,100        1,100        1,097   

Entercom Radio, LLC, 10.5%, 12/1/19(e)(j)

  Media     13,500        13,362        15,557   

EPL Oil & Gas, Inc., 8.3%, 2/15/18(e)(j)

  Energy     3,200        3,170        3,402   

Flanders Corp., 10.0%, 3.8% PIK, 5/14/18(g)

  Capital Goods     8,190        8,012        8,313   

Gymboree Corp., 9.1%, 12/1/18(g)

  Consumer Durables & Apparel     7,000        6,435        6,597   

Harland Clarke Holdings Corp., 9.5%, 5/15/15(g)

  Commercial & Professional Services     2,689        2,455        2,659   

HD Supply Inc., 7.5%, 7/15/20(e)

  Commercial & Professional Services     10,000        10,000        10,600   

Infiltrator Systems, Inc., 12.0%, 2.0% PIK, 3/11/18

  Capital Goods     63,886        62,879        66,441   

Ipreo Holdings LLC, 11.8%, 8/15/18(f)

  Software & Services     10,000        9,961        10,563   

Jefferies Finance LLC, 7.4%, 4/1/20(e)(g)

  Diversified Financials     3,250        3,250        3,315   

Kinetic Concepts, Inc., 12.5%, 11/1/19(e)(f)(g)

  Health Care Equipment & Services     24,700        23,501        24,480   

Martin Midstream Partners L.P., 7.3%, 2/15/21(e)(j)

  Energy     7,450        7,450        7,572   

MModal Inc., 10.8%, 8/15/20(e)(g)

  Health Care Equipment & Services     2,418        2,371        2,104   

Monitronics International, Inc., 9.1%, 4/1/20(e)(j)

  Consumer Services     2,250        2,250        2,393   

Mood Media Corp., 9.3%, 10/15/20(e)(f)(j)

  Media     24,250        24,278        26,554   

The Pantry, Inc., 8.4%, 8/1/20(g)(j)

  Food & Staples Retailing     1,500        1,500        1,616   

Petco Holdings, Inc., 8.5%, 10/15/17(e)

  Retailing     1,000        995        1,034   

QR Energy, L.P., 9.3%, 8/1/20(e)(j)

  Energy     3,250        3,207        3,458   

Resolute Energy Corp., 8.5%, 5/1/20(e)(j)

  Energy     10,500        10,624        10,888   

Revlon Consumer Products Corp., 5.8%, 2/15/21(e)(j)

  Household & Personal Products     7,600        7,600        7,648   

Samson Investment Co., 9.8%, 2/15/20(e)(f)

  Energy     19,420        19,625        20,699   

SandRidge Energy, Inc., 8.1%, 10/15/22(e)(j)

  Energy     7,500        7,500        8,030   

Sequel Industrial Products Holdings, LLC, 12.0%, 2.5% PIK, 5/10/18(g)

  Energy     15,598        15,321        15,910   

Sidewinder Drilling Inc., 9.8%, 11/15/19(f)(g)

  Capital Goods     8,000        8,000        8,134   

Symmetry Medical Inc., 12.0%, 2.0% PIK, 12/29/17(g)(j)

  Health Care Equipment & Services     33,170        32,335        34,911   

ThermaSys Corp., 10.0%, 2.5% PIK, 12/31/16

  Capital Goods     86,760        85,275        87,627   

Viking Cruises, Ltd., 8.5%, 10/15/22(e)(j)

  Consumer Services     1,075        1,075        1,188   
     

 

 

   

 

 

 

Total Subordinated Debt

        488,930        512,170   
     

 

 

   

 

 

 

Collateralized Securities—4.0%

       

Apidos CDO IV Class E, L+360, 10/27/18(g)(j)

  Diversified Financials     2,000        1,235        1,832   

Ares 2007 CLO 11A Class E, L+600, 10/11/21(g)(j)

  Diversified Financials     4,775        3,249        4,670   

Ares 2007 CLO 12X Class E, L+575, 11/25/20(g)(j)

  Diversified Financials     2,252        1,830        2,189   

Carlyle Azure CLO Class Income, 22.0%, 5/27/20(j)

  Diversified Financials     28,000        12,303        17,906   

Dryden CDO 23A Class E, L+700, 7/20/23(j)

  Diversified Financials     4,500        3,649        4,434   

Dryden CDO 23A Class Subord, 14.5%, 7/17/23(j)

  Diversified Financials     10,000        7,220        7,991   

Galaxy VII CLO Class Subord., 22.3%, 10/13/18(j)

  Diversified Financials     2,000        863        1,249   

Lightpoint CLO 2006 V Class D, L+365, 8/5/19(g)(j)

  Diversified Financials     6,500        3,558        5,496   

Rampart CLO 2007 1A Class Subord., 56.8%, 10/25/21(j)

  Diversified Financials     10,000        4,853        11,329   

 

See notes to unaudited consolidated financial statements.

 

10


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Stone Tower CLO VI Class Subord., 54.8%, 4/17/21(g)(j)

  Diversified Financials   $ 5,000      $ 3,101      $ 6,045   

Wind River CLO Ltd. 2012 1A Class Sub B, 16.8%, 1/15/24(j)

  Diversified Financials     42,504        40,917        38,985   
     

 

 

   

 

 

 

Total Collateralized Securities

        82,778        102,126   
     

 

 

   

 

 

 
Equity/Other—5.1%(k)       Number of
Shares
    Amortized
Cost
    Fair
Value(c)
 

Aquilex Corp., Common Equity, Class A Shares(f)(l)

  Energy     15,128        2,266        6,220   

Aquilex Corp., Common Equity, Class B Shares(f)(g)(l)

  Energy     32,637        4,889        13,420   

ERC Ireland Holdings Ltd., Common Equity(j)(l)

  Telecommunication Services     16,127        —          —     

ERC Ireland Holdings Ltd., Warrants(j)(l)

  Telecommunication Services     2,326        —          —     

Flanders Corp., Common Equity(g)(l)

  Capital Goods     5,000,000        5,000        9,000   

Florida Gaming Centers, Inc., Strike: $0.01, Warrants(g)(l)

  Consumer Services     71        —          890   

Florida Gaming Corp., Strike: $25.00, Warrants(g)(l)

  Consumer Services     226,635        —          —     

HBC Solutions, Inc., Common Equity, Class A Units(l)

  Media     26,984        2,889        2,890   

Ipreo Holdings LLC, Common Equity(g)(l)

  Software & Services     1,000,000        1,000        1,600   

JW Aluminum Co., Common Equity(g)(l)

  Materials     37,500        3,225        —     

Leading Edge Aviation Services, Inc., Common Equity(g)(l)

  Capital Goods     4,181        418        418   

Leading Edge Aviation Services, Inc., Preferred Equity(g)(l)

  Capital Goods     1,177        1,177        1,177   

Micronics, Inc., Common Equity(l)

  Capital Goods     1,000,000        1,000        1,000   

Milagro Holdings, LLC, Common Equity(g)(l)

  Energy     12,057        50        —     

Milagro Holdings, LLC, Preferred Equity(l)

  Energy     283,947        11,181        —     

Plains Offshore Operations Inc., Preferred Equity(f)(g)

  Energy     523,068        52,749        54,938   

Plains Offshore Operations Inc., Strike: $20.00, Warrants(f)(g)(l)

  Energy     1,013,444        1,722        1,622   

Safariland, LLC, Common Equity(g)(l)

  Capital Goods     25,000        2,500        4,135   

Safariland, LLC, Preferred Equity(g)

  Capital Goods     5,139        10,202        10,626   

Safariland, LLC, Warrants(g)(l)

  Capital Goods     2,263        246        374   

Sequel Industrial Products Holdings, LLC, Common Equity(g)(l)

  Energy     3,330,600        3,400        5,329   

Sequel Industrial Products Holdings, LLC, Preferred Equity(g)(l)

  Energy     87,607        8,552        8,565   

Sequel Industrial Products Holdings, LLC, Strike: $100.00, Warrants(g)(l)

  Energy     20,681        13        23   

ThermaSys Corp., Common Equity(g)(l)

  Capital Goods     51,813        1        1,456   

ThermaSys Corp., Preferred Equity(g)(l)

  Capital Goods     51,813        5,181        5,181   

VPG Group Holdings LLC, Class A-2 Units(g)(l)

  Materials     2,500,000        2,500        2,500   
     

 

 

   

 

 

 

Total Equity/Other

        120,161        131,364   
     

 

 

   

 

 

 

TOTAL INVESTMENTS—159.5%

      $ 3,957,033        4,084,029   
     

 

 

   

LIABILITIES IN EXCESS OF OTHER ASSETS—(59.5%)

          (1,523,353
       

 

 

 

NET ASSETS—100.0%

        $ 2,560,676   
       

 

 

 

 

(a) Security may be an obligation of one or more entities affiliated with the named company.

 

(b) Denominated in U.S. dollars unless otherwise noted.

 

(c) Fair value determined by the Company’s board of directors (see Note 7).

 

(d) Security or portion thereof held within Arch Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Citibank, N.A. (see Note 8).

 

(e) Security or portion thereof held within Broad Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Deutsche Bank AG, New York Branch (see Note 8).

 

(f) Security or portion thereof held within Locust Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the Class A Notes issued to Race Street Funding LLC pursuant to an indenture with Citibank, N.A., as trustee (see Note 8).

 

(g) Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the repurchase agreement with JPMorgan Chase Bank, N.A., London Branch (see Note 8).

 

(h) Security or portion thereof held within Walnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Wells Fargo Bank, National Association (see Note 8).

 

See notes to unaudited consolidated financial statements.

 

11


Table of Contents

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2013

(in thousands, except share amounts)

 

 

 

(i) Position or portion thereof unsettled as of March 31, 2013.

 

(j) The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of March 31, 2013, 83.8% of the Company’s total assets represented qualifying assets.

 

(k) Listed investments may be treated as debt for GAAP or tax purposes.

 

(l) Security is non-income producing.

 

See notes to unaudited consolidated financial statements.

 

12


Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments

As of December 31, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Senior Secured Loans—First Lien—77.5%

       

A.P. Plasman Inc., L+850, 1.5% LIBOR Floor, 12/29/16(f)(h)(j)

  Capital Goods   $ 53,350      $ 52,456      $ 54,150   

AccentCare, Inc., L+500, 1.5% LIBOR Floor, 12/22/16(d)

  Health Care Equipment & Services     2,017        1,828        1,573   

Advantage Sales & Marketing Inc., L+375, 1.5% LIBOR Floor, 12/18/17(d)

  Commercial & Professional Services     4,550        4,544        4,592   

Airvana Network Solutions Inc., L+800, 2.0% LIBOR Floor, 3/25/15(f)

  Telecommunication Services     3,685        3,677        3,702   

AlixPartners, LLP, L+525, 1.3% LIBOR Floor, 6/28/19(d)(f)

  Diversified Financials     9,950        9,878        10,092   

Alkermes, Inc., L+350, 1.0% LIBOR Floor, 9/18/19(d)(j)

  Pharmaceuticals, Biotechnology & Life Sciences     4,200        4,159        4,247   

Allied Security Holdings, LLC, L+400, 1.3% LIBOR Floor, 2/3/17(d)

  Commercial & Professional Services     3,851        3,833        3,880   

Altegrity, Inc., L+600, 1.8% LIBOR Floor, 2/20/15(d)(e)

  Commercial & Professional Services     5,121        5,115        5,125   

Amaya Holdings Corp., L+775, 1.3% LIBOR Floor, 11/5/15(d)(h)

  Consumer Services     25,000        24,642        25,000   

American & Efird Global, LLC, L+900, 1.5% LIBOR Floor, 12/21/16(f)(h)

  Consumer Durables & Apparel     43,400        42,486        44,051   

American Racing and Entertainment, LLC Term Loan A, L+700, 6/30/14(f)

  Consumer Services     14,500        14,500        14,500   

American Racing and Entertainment, LLC Term Loan B, 9.0%, 6/30/14(f)

  Consumer Services     7,750        7,750        7,789   

American Racing and Entertainment, LLC Term Loan C, 9.0%, 6/30/14(f)

  Consumer Services     750        750        754   

Applied Systems, Inc., L+400, 1.5% LIBOR Floor, 12/8/16(d)

  Software & Services     3,506        3,490        3,536   

Ardent Medical Services, Inc., L+500, 1.5% LIBOR Floor, 9/15/15(d)(e)

  Health Care Equipment & Services     13,248        13,164        13,314   

Ardent Medical Services, Inc., L+525, 1.5% LIBOR Floor, 5/23/18(d)(e)(i)

  Health Care Equipment & Services     8,488        8,403        8,589   

Aspect Software, Inc., L+525, 1.8% LIBOR Floor, 5/6/16(d)

  Software & Services     6,765        6,581        6,824   

Attachmate Corp., L+575, 1.5% LIBOR Floor, 11/22/17(d)(e)

  Software & Services     11,421        11,213        11,547   

Avaya Inc., L+275, 10/24/14(d)

  Technology Hardware & Equipment     1,973        1,944        1,939   

Avaya Inc., L+450, 10/26/17(d)(e)

  Technology Hardware & Equipment     9,012        8,208        7,976   

AZ Chem U.S. Inc., L+575, 1.5% LIBOR Floor, 12/22/17(h)(i)

  Materials     4,545        4,451        4,611   

Barbri, Inc., L+450, 1.5% LIBOR Floor, 6/16/17(d)

  Consumer Services     3,227        3,219        3,233   

Barrington Broadcasting Group LLC, L+600, 1.5% LIBOR Floor, 6/14/17(f)

  Media     2,889        2,816        2,917   

BBB Industries, LLC, L+450, 2.0% LIBOR Floor, 6/27/14(f)

  Automobiles & Components     8,025        7,993        7,945   

BJ’s Wholesale Club, Inc., L+450, 1.3% LIBOR Floor, 9/26/19(d)(e)

  Food & Staples Retailing     14,000        13,864        14,204   

Blackboard Inc., L+600, 1.5% LIBOR Floor, 10/4/18(d)(f)(h)

  Software & Services     18,307        17,142        18,536   

Boomerang Tube, LLC, L+950, 1.5% LIBOR Floor, 10/11/17(d)(h)

  Energy     24,688        23,971        24,379   

Brasa (Holdings) Inc., L+625, 1.3% LIBOR Floor, 7/19/19(d)

  Consumer Services     5,819        5,749        5,877   

Bushnell Inc., L+425, 1.5% LIBOR Floor, 8/24/15(d)

  Consumer Durables & Apparel     7,581        7,342        7,584   

Caesars Entertainment Operating Co., L+425, 1/26/18(d)(e)(f)(j)

  Consumer Services     19,166        16,718        16,624   

Cannery Casino Resorts, LLC, L+475, 1.3% LIBOR Floor, 10/2/18(d)

  Consumer Services     3,990        3,951        4,008   

Capital Vision Services, LLC, Prime+625, 1.3% PRIME Floor, 12/3/17(f)(h)

  Health Care Equipment & Services     17,196        17,196        17,196   

Capital Vision Services, LLC, L+100, 12/3/17

  Health Care Equipment & Services     2,804        2,804        2,804   

CCM Merger, Inc., L+475, 1.3% LIBOR Floor, 3/1/17(d)

  Consumer Services     4,746        4,694        4,766   

Cengage Learning Acquisitions, Inc., L+225, 7/3/14(d)(i)

  Consumer Durables & Apparel     3,117        2,618        2,471   

Chrysler Group LLC, L+475, 1.3% LIBOR Floor, 5/24/17(d)(e)(f)(h)

  Automobiles & Components     22,444        21,726        22,952   

Citgo Petroleum Corp., L+600, 2.0% LIBOR Floor, 6/24/15(e)(j)

  Energy     3,036        3,066        3,062   

Citgo Petroleum Corp., L+700, 2.0% LIBOR Floor, 6/23/17(e)(f)(j)

  Energy     7,661        7,643        7,779   

Clear Channel Communications, Inc., L+365, 1/29/16(d)(e)(f)(i)

  Media     27,557        22,354        22,842   

Collective Brands Finance, Inc., L+600, 1.3% LIBOR Floor, 10/9/19(f)

  Consumer Durables & Apparel     10,820        10,662        10,968   

CompuCom Systems, Inc., L+525, 1.3% LIBOR Floor, 10/4/18(d)

  Software & Services     3,448        3,415        3,472   

The Container Store, Inc., L+500, 1.3% LIBOR Floor, 4/5/19(d)(e)

  Consumer Durables & Apparel     13,065        13,001        13,187   

Corel Corp., L+700, 5/2/14(d)(j)

  Software & Services     9,400        9,352        9,447   

Corner Investment PropCo, LLC, L+975, 1.3% LIBOR Floor, 11/1/19(d)(f)(j)

  Consumer Services     24,000        23,532        23,730   

Crestwood Holdings LLC, L+825, 1.5% LIBOR Floor, 3/26/18(f)

  Energy     16,689        16,603        17,050   

DAE Aviation Holdings, Inc., L+500, 1.3% LIBOR Floor, 10/29/18(h)

  Capital Goods     6,825        6,690        6,927   

DAE Aviation Holdings, Inc., L+500, 1.3% LIBOR Floor, 11/2/18(h)

  Capital Goods     3,094        3,033        3,140   

Del Monte Foods Co., L+300, 1.5% LIBOR Floor, 3/8/18(d)

  Food, Beverage & Tobacco     2,876        2,832        2,886   

Drumm Investors LLC, L+375, 1.3% LIBOR Floor, 5/4/18(d)(f)

  Health Care Equipment & Services     8,542        8,021        8,037   

Dynegy Holdings Inc. (GasCo), L+775, 1.5% LIBOR Floor, 8/5/16(f)

  Energy     6,096        6,225        6,393   

Eastman Kodak Co., L+750, 1.0% LIBOR Floor, 7/19/13(g)

  Consumer Durables & Apparel     7,232        7,181        7,252   

Education Management LLC, L+400, 6/1/16(f)(j)

  Consumer Services     3,978        3,233        3,257   

Education Management LLC, L+700, 1.3% LIBOR Floor, 3/29/18(e)(j)

  Consumer Services     15,870        15,796        13,271   

Electrical Components International, Inc., L+525, 1.5% LIBOR Floor, 2/4/16(f)

  Capital Goods     235        218        236   

Electrical Components International, Inc., L+525, 1.5% LIBOR Floor, 2/4/17(g)

  Capital Goods     3,573        3,295        3,582   

EquiPower Resources Holdings, LLC, L+425, 1.3% LIBOR Floor, 12/21/18(d)

  Utilities     4,975        4,996        5,054   

ERC Ireland Holdings Ltd., EURIBOR+300, 1.0% PIK, 9/30/17(i)(j)

  Telecommunication Services   11,173        10,733        11,896   

 

See notes to unaudited consolidated financial statements.

 

13


Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Fairway Group Acquisition Co., L+675, 1.5% LIBOR Floor, 8/17/18(d)(f)(h)

  Food & Staples Retailing   $ 25,325      $ 25,037      $ 25,578   

Flanders Corp., L+950, 1.5% LIBOR Floor, 5/16/18(f)(h)

  Capital Goods     38,993        38,104        39,188   

Fleetgistics Holdings, Inc., L+588, 2.0% LIBOR Floor, 3/23/15(f)

  Transportation     2,026        2,011        1,783   

Flexera Software, Inc., L+625, 1.3% LIBOR Floor, 9/29/17(d)

  Software & Services     2,925        2,923        2,948   

Florida Gaming Centers, Inc., 15.8%, 4/25/16(f)

  Consumer Services     12,517        12,343        12,455   

Fram Group Holdings Inc., L+500, 1.5% LIBOR Floor, 7/29/17(d)

  Automobiles & Components     1,990        1,952        1,992   

FREIF North American Power I LLC (TLB), L+450, 1.5% LIBOR Floor, 3/29/19(d)

  Energy     3,073        3,080        3,111   

FREIF North American Power I LLC (TLC), L+450, 1.5% LIBOR Floor, 3/29/19(d)

  Energy     880        882        891   

Generac Power Systems, Inc., L+500, 1.3% LIBOR Floor, 5/30/18(d)(j)

  Capital Goods     3,563        3,630        3,653   

Generic Drug Holdings, Inc., L+475, 1.3% LIBOR Floor, 9/28/19(d)

  Retailing     2,728        2,701        2,753   

Genesys Telecom Holdings, U.S., Inc., L+525, 1.5% LIBOR Floor, 1/31/19(d)

  Telecommunication Services     1,711        1,724        1,730   

Gymboree Corp., L+350, 1.5% LIBOR Floor, 2/23/18(d)

  Consumer Durables & Apparel     3,702        3,477        3,420   

Halifax Media Holdings LLC, L+1050, 0.8% LIBOR Floor, 6/30/16(f)(h)

  Media     16,068        15,748        15,907   

Hamilton Lane Advisors, LLC, L+500, 1.5% LIBOR Floor, 2/23/18(d)

  Diversified Financials     2,730        2,717        2,750   

Harbor Freight Tools USA, Inc., L+425, 1.3% LIBOR Floor, 11/14/17(d)

  Consumer Durables & Apparel     4,365        4,364        4,424   

HarbourVest Partners L.P., L+375, 1.0% LIBOR Floor, 11/21/17(d)

  Diversified Financials     5,752        5,724        5,781   

Harland Clarke Holdings Corp., L+250, 6/30/14(f)

  Commercial & Professional Services     6,334        5,741        6,135   

Hawaiian Telcom Communications, Inc., L+575, 1.3% LIBOR Floor, 2/28/17(d)(f)(h)

  Telecommunication Services     16,979        16,864        17,335   

Hupah Finance Inc., L+500, 1.3% LIBOR Floor, 1/21/19(d)(e)

  Capital Goods     11,333        11,275        11,475   

Hyland Software, Inc., L+425, 1.3% LIBOR Floor, 10/25/19(d)

  Software & Services     4,918        4,918        4,939   

IASIS Healthcare LLC, L+375, 1.3% LIBOR Floor, 5/3/18(d)

  Health Care Equipment & Services     1,453        1,427        1,459   

Ikaria Acquisition Inc., L+650, 1.3% LIBOR Floor, 9/18/17(d)

  Pharmaceuticals, Biotechnology & Life Sciences     3,967        3,948        3,992   

ILC Industries, LLC, L+600, 1.5% LIBOR Floor, 7/11/18(d)(h)

  Capital Goods     10,131        9,941        10,038   

Immucor, Inc., L+450, 1.3% LIBOR Floor, 8/17/18(d)

  Health Care Equipment & Services     3,873        3,882        3,929   

INC Research, LLC, L+575, 1.3% LIBOR Floor, 7/12/18(d)(f)

  Health Care Equipment & Services     16,788        16,522        16,913   

Ineos Finance Plc, L+525, 1.3% LIBOR Floor, 5/4/18(d)(e)(f)(j)

  Materials     18,914        18,713        19,145   

Infogroup Inc., L+425, 1.5% LIBOR Floor, 5/25/18(d)

  Software & Services     3,338        2,940        3,004   

Insight Equity A.P. X, L.P., L+850, 1.0% LIBOR Floor, 10/26/18(f)(g)(h)

  Household & Personal Products     65,000        63,736        65,000   

Intelsat Jackson Holdings SA, L+325, 1.3% LIBOR Floor, 4/2/18(d)(j)

  Telecommunication Services     2,963        2,962        2,993   

Intralinks, Inc., L+425, 1.5% LIBOR Floor, 6/15/14(f)(j)

  Software & Services     1,033        938        1,034   

inVentiv Health, Inc., L+500, 1.5% LIBOR Floor, 8/4/16(d)

  Health Care Equipment & Services     1,066        997        1,040   

inVentiv Health, Inc., L+525, 1.5% LIBOR Floor, 5/15/18(e)

  Health Care Equipment & Services     2,725        2,704        2,671   

Ipreo Holdings LLC, L+525, 1.3% LIBOR Floor, 8/7/17(d)(f)

  Software & Services     8,968        8,861        9,024   

Jason Inc. (TLA), L+625, 2.0% LIBOR Floor, 9/21/14(g)

  Capital Goods     2,403        2,395        2,399   

Jason Inc. (TLB), L+625, 2.0% LIBOR Floor, 9/21/14(g)

  Capital Goods     971        968        973   

JHCI Acquisition, Inc., L+250, 6/19/14(d)

  Transportation     2,304        2,192        2,070   

KIK Custom Products Inc., L+225, 6/2/14(e)(j)

  Household & Personal Products     10,274        9,693        9,657   

Kronos Inc., L+425, 1.3% LIBOR Floor, 10/25/19(d)

  Commercial & Professional Services     4,500        4,478        4,560   

La Paloma Generating Co., LLC, L+550, 1.5% LIBOR Floor, 8/25/17(e)(f)

  Energy     8,697        8,445        8,686   

Lantiq Deutschland GmbH, L+900, 2.0% LIBOR Floor, 11/16/15(f)(j)

  Software & Services     12,105        11,241        11,076   

Leading Edge Aviation Services, Inc., L+850, 1.5% LIBOR Floor, 4/5/18(d)(g)(h)

  Capital Goods     36,301        35,651        35,212   

Maritime Telecommunications Network, Inc., L+600, 1.5% LIBOR Floor, 3/3/16(f)

  Telecommunication Services     5,169        5,117        5,159   

MMM Holdings, Inc., L+825, 1.5% LIBOR Floor, 12/12/17

  Health Care Equipment & Services     13,509        13,240        13,527   

Mood Media Corp., L+550, 1.5% LIBOR Floor, 5/7/18(d)(j)

  Media     3,045        3,016        3,054   

MSO of Puerto Rico, Inc., L+825, 1.5% LIBOR Floor, 12/12/17

  Health Care Equipment & Services     9,825        9,629        9,838   

National Mentor Holdings, Inc., L+525, 1.3% LIBOR Floor, 2/9/17(d)

  Health Care Equipment & Services     7,980        7,980        7,985   

National Vision, Inc., L+575, 1.3% LIBOR Floor, 8/2/18(d)

  Health Care Equipment & Services     4,764        4,774        4,835   

Natural Products Group, LLC, Prime+600, 4.0% PRIME Floor, 3/5/15(g)

  Household & Personal Products     1,325        1,266        1,272   

Navistar, Inc., L+550, 1.5% LIBOR Floor, 8/17/17(d)(f)(h)(j)

  Capital Goods     20,944        20,891        21,082   

NCI Building Systems, Inc., L+675, 1.3% LIBOR Floor, 5/2/18(d)(e)(g)(h)(j)

  Capital Goods     31,573        30,815        31,635   

NCO Group, Inc., L+675, 1.3% LIBOR Floor, 4/3/18(e)(h)

  Software & Services     19,807        19,448        19,900   

Nexeo Solutions, LLC, L+350, 1.5% LIBOR Floor, 9/17/17

  Capital Goods     3,990        3,912        3,926   

NSH Merger Sub, Inc., L+650, 1.8% LIBOR Floor, 2/2/17(d)(f)

  Health Care Equipment & Services     19,042        18,869        18,613   

Nuveen Investments, Inc., L+550, 5/13/17(d)

  Diversified Financials     9,000        9,004        9,055   

NXP BV, L+425, 1.3% LIBOR Floor, 3/3/17(d)(j)

  Semiconductors & Semiconductor Equipment     2,351        2,375        2,402   

On Assignment, Inc., L+375, 1.3% LIBOR Floor, 5/15/19(d)(j)

  Commercial & Professional Services     2,992        2,976        3,033   

 

See notes to unaudited consolidated financial statements.

 

14


Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

Onex Carestream Finance L.P., L+350, 1.5% LIBOR Floor, 2/25/17(d)(j)

  Health Care Equipment & Services   $ 1,419      $ 1,383      $ 1,416   

Orbitz Worldwide, Inc., L+300, 7/25/14(d)(j)

  Retailing     4,216        4,058        4,056   

Ozburn-Hessey Holding Co., LLC, L+625, 2.0% LIBOR Floor, 4/8/16(d)(f)

  Transportation     5,650        5,446        5,650   

Panda Sherman Power, LLC, L+750, 1.5% LIBOR Floor, 9/13/18(d)

  Energy     9,273        9,192        9,435   

Panda Temple Power, LLC (TLA), L+700, 1.5% LIBOR Floor, 7/17/18(f)

  Energy     3,000        3,000        3,045   

Party City Holdings Inc., L+450, 1.3% LIBOR Floor, 7/26/19(d)(e)(f)

  Retailing     16,593        16,513        16,809   

Patheon Inc., L+600, 1.3% LIBOR Floor, 12/6/18(d)(i)(j)

  Pharmaceuticals, Biotechnology & Life Sciences     10,259        9,951        10,259   

Pelican Products, Inc., L+550, 1.5% LIBOR Floor, 7/11/18(d)

  Capital Goods     2,972        2,944        2,954   

Peninsula Gaming LLC, L+450, 1.3% LIBOR Floor, 8/3/17(f)(j)

  Consumer Services     4,605        4,562        4,671   

Pharmaceutical Product Development, Inc., L+500, 1.3% LIBOR Floor, 12/5/18(d)

  Health Care Equipment & Services     8,967        8,890        9,126   

Pharmaceutical Research Associates, Inc., L+525, 1.3% LIBOR Floor, 11/27/18(d)(i)

  Health Care Equipment & Services     5,833        5,775        5,841   

PL Propylene LLC, L+575, 1.3% LIBOR Floor, 3/23/17(d)(j)

  Materials     6,833        6,714        6,944   

Presidio, Inc., L+450, 1.3% LIBOR Floor, 3/31/17(d)(f)(g)(h)

  Software & Services     15,302        15,231        15,455   

Princeton Review, Inc., L+550, 1.5% LIBOR Floor, 12/7/14(g)

  Consumer Services     1,113        1,022        990   

Property Data (U.S.) I, Inc., L+550, 1.5% LIBOR Floor, 1/4/17(f)

  Software & Services     4,295        4,251        4,303   

Protection One, Inc., L+450, 1.3% LIBOR Floor, 3/21/19(d)

  Consumer Services     2,544        2,551        2,580   

PRV Aerospace, LLC, L+525, 1.3% LIBOR Floor, 5/9/18(d)

  Capital Goods     4,976        4,965        4,989   

RBS Holding Co. LLC, Prime+600, 3/23/17(d)

  Commercial & Professional Services     9,825        6,065        3,635   

RBS Worldpay, Inc., L+400, 1.3% LIBOR Floor, 11/30/17(d)

  Software & Services     1,522        1,524        1,534   

Remy International, Inc., L+450, 1.8% LIBOR Floor, 12/16/16(d)(j)

  Automobiles & Components     1,923        1,861        1,940   

Reynolds Group Holdings, Inc., L+375, 1.0% LIBOR Floor, 9/28/18(d)(j)

  Consumer Durables & Apparel     4,293        4,293        4,349   

Rocket Software, Inc., L+450, 1.3% LIBOR Floor, 2/8/18(d)

  Software & Services     6,630        6,636        6,673   

Roundy’s Supermarkets, Inc., L+450, 1.3% LIBOR Floor, 2/13/19(d)(j)

  Food & Staples Retailing     2,776        2,648        2,619   

Sabre Inc., L+575, 12/29/17(d)

  Consumer Services     1,487        1,471        1,500   

Sabre Inc., L+600, 1.3% LIBOR Floor, 12/29/17(e)

  Consumer Services     4,978        4,931        5,052   

Safariland, LLC, L+925, 1.5% LIBOR Floor, 7/27/18(d)(f)(h)

  Capital Goods     45,243        44,392        46,601   

Sagittarius Restaurants LLC, L+550, 2.0% LIBOR Floor, 5/18/15(d)(f)

  Consumer Services     6,530        6,497        6,505   

Shell Topco L.P., L+750, 1.5% LIBOR Floor, 9/28/18(d)(h)

  Energy     33,000        32,524        33,000   

Sheridan Production Co., LLC, L+375, 1.3% LIBOR Floor, 9/14/19(e)

  Energy     5,224        5,173        5,279   

Shield Finance Co. Sarl, L+525, 1.3% LIBOR Floor, 5/10/19(f)(j)

  Software & Services     10,974        10,822        11,002   

Sirius Computer Solutions, Inc., L+575, 1.3% LIBOR Floor, 11/30/18(d)(i)

  Software & Services     9,808        9,710        9,900   

Sitel, LLC, L+675, 1/30/17(e)

  Telecommunication Services     5,966        5,743        5,951   

Six3 Systems, Inc., L+575, 1.3% LIBOR Floor, 10/4/19(d)

  Software & Services     4,674        4,629        4,674   

Smarte Carte, Inc., L+650, 1.3% LIBOR Floor, 11/30/17(d)(f)(h)

  Commercial & Professional Services     61,000        60,288        61,000   

Smile Brands Group Inc., L+525, 1.8% LIBOR Floor, 12/21/17(d)(e)

  Health Care Equipment & Services     13,717        13,308        12,962   

Sophia, L.P., L+500, 1.3% LIBOR Floor, 7/19/18(d)(e)(f)

  Software & Services     13,966        13,880        14,165   

Sorenson Communication, Inc., L+400, 2.0% LIBOR Floor, 8/16/13(d)(e)(f)(h)

  Telecommunication Services     50,402        49,586        49,609   

Spansion LLC, L+350, 1.3% LIBOR Floor, 2/9/15(e)(j)

  Semiconductors & Semiconductor Equipment     6,369        6,285        6,418   

Sports Authority, Inc., L+600, 1.5% LIBOR Floor, 11/16/17(d)(e)(f)

  Consumer Durables & Apparel     22,418        22,234        22,615   

Sprouts Farmers Markets Holdings, LLC, L+475, 4/18/16

  Food & Staples Retailing     5,250        5,250        5,001   

Sprouts Farmers Markets Holdings, LLC, L+475, 1.3% LIBOR Floor, 4/18/18(d)

  Food & Staples Retailing     4,803        4,746        4,861   

SRA International, Inc., L+525, 1.3% LIBOR Floor, 7/20/18(d)(e)(f)

  Software & Services     21,624        20,910        20,489   

Star West Generation LLC, L+450, 1.5% LIBOR Floor, 5/17/18(d)

  Energy     5,923        5,860        5,949   

Surgery Center Holdings, Inc., L+500, 1.5% LIBOR Floor, 2/6/17(d)(f)(h)

  Health Care Equipment & Services     14,693        14,473        14,620   

Swiss Watch International, Inc., L+725, 1.3% LIBOR Floor, 11/8/18(d)(f)(h)

  Consumer Durables & Apparel     50,000        49,022        50,000   

Technicolor SA, EURIBOR+500, 2.0% EURIBOR Floor, 5/26/16(j)

  Media   2,345        2,770        3,080   

Technicolor SA, EURIBOR+600, 2.0% EURIBOR Floor, 5/26/17(j)

  Media   6,279        7,402        8,249   

Technicolor SA, L+500, 2.0% LIBOR Floor, 5/26/16(g)(j)

  Media   $ 1,659        1,507        1,651   

Technicolor SA, L+600, 2.0% LIBOR Floor, 5/26/17(g)(j)

  Media     4,376        3,967        4,357   

Texas Competitive Electric Holdings Co. LLC, L+350, 10/10/14(d)(e)(f)(g)(i)

  Utilities     76,891        56,163        58,221   

Texas Competitive Electric Holdings Co. LLC, L+450, 10/10/17(g)

  Utilities     38,867        26,875        25,992   

TI Group Automotive Systems, LLC, L+550, 1.3% LIBOR Floor, 3/14/18(d)(e)(j)

  Capital Goods     8,956        8,709        9,045   

Titlemax, Inc., L+850, 1.5% LIBOR Floor, 6/15/15(f)(h)

  Diversified Financials     25,000        24,790        25,500   

Total Safety U.S., Inc., L+625, 1.3% LIBOR Floor, 10/31/17(d)(f)

  Energy     9,900        9,667        10,032   

Totes Isotoner Corp., L+575, 1.5% LIBOR Floor, 7/7/17(d)

  Consumer Durables & Apparel     6,928        6,830        6,945   

Toys “R” Us-Delaware, Inc., L+450, 1.5% LIBOR Floor, 9/1/16(d)(e)

  Consumer Durables & Apparel     3,842        3,843        3,729   

 

See notes to unaudited consolidated financial statements.

 

15


Table of Contents

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2012

(in thousands, except share amounts)

 

 

 

Portfolio Company(a)

 

Industry

  Principal
Amount(b)
    Amortized
Cost
    Fair
Value(c)
 

TravelCLICK, Inc., L+500, 1.5% LIBOR Floor, 3/16/16(d)

  Consumer Services   $ 7,836      $ 7,746      $ 7,836   

Travelport LLC, L+475, 8/21/15(e)(f)(g)

  Consumer Services     15,682        14,327        15,143   

U.S. Security Associates Holdings, Inc., L+475, 1.3% LIBOR Floor, 7/28/17(d)

  Commercial & Professional Services     3,959        3,958        3,985   

Unifrax I LLC, L+500, 1.5% LIBOR Floor, 11/28/18(e)(f)

  Capital Goods     13,958        13,707        14,145   

United Surgical Partners International Inc., L+475, 1.3% LIBOR Floor, 4/3/19(d)

  Health Care Equipment & Services     4,374        4,372        4,418   

Univar Inc., L+350, 1.5% LIBOR Floor, 6/30/17(e)

  Materials     6,509        6,509        6,500   

Univision Communications Inc., L+425, 3/31/17(e)(f)

  Media     9,593        8,591        9,454   

Virtual Radiologic Corp., Prime+450, 12/22/16(g)

  Health Care Equipment & Services     3,528        3,468        3,105   

Vision Solutions, Inc., L+450, 1.5% LIBOR Floor, 7/22/16(d)

  Software & Services     6,800        6,753        6,787   

VPG Group Holdings LLC, L+900, 1.0% LIBOR Floor, 10/4/16(f)(h)

  Materials     55,055        54,173        55,056   

Wall Street Systems Holdings, Inc., L+450, 1.3% LIBOR Floor, 10/24/19(d)

  Software & Services     5,000        4,926        5,013   

WASH Multifamily Laundry Systems, LLC, Prime+375, 8/28/14(g)

  Commercial & Professional Services     3,830        3,803        3,825   

West Corp., L+450, 1.3% LIBOR Floor, 6/29/18(d)

  Software & Services     7,297        7,245        7,422   

Wide Open West Finance LLC, L+500, 1.3% LIBOR Floor, 7/17/18(d)

  Media     6,219        6,211        6,299   

Willbros United States Holdings, Inc., L+750, 2.0% LIBOR Floor, 6/30/14(h)(j)

  Energy     6,705        6,635        6,721   

WireCo WorldGroup Inc., L+475, 1.3% LIBOR Floor, 2/15/17(d)

  Capital Goods     3,558        3,554        3,638   

Woodstream Corp., L+350, 8/31/14(f)

  Household & Personal Products     705        665        673   

Woodstream Corp., Prime+375, 8/31/14(g)

  Household & Personal Products     1,530        1,508        1,522   
     

 

 

   

 

 

 

Total Senior Secured Loans—First Lien

        1,929,800        1,959,963   

Unfunded Loan Commitments

        (14,804     (14,804
     

 

 

   

 

 

 

Net Senior Secured Loans—First Lien

        1,914,996        1,945,159   
     

 

 

   

 

 

 

Senior Secured Loans—Second Lien—30.4%

       

Advance Pierre Foods, Inc., L+825, 1.3% LIBOR Floor, 10/10/17(e)(f)(g)

  Food & Staples Retailing     25,556        25,133        26,075   

Advantage Sales & Marketing Inc., L+775, 1.5% LIBOR Floor, 6/18/18(e)(f)

  Commercial & Professional Services     20,314        20,363        20,466   

Affordable Care, Inc., Prime+825, 12/26/19(d)(e)(f)(g)(h)

  Health Care Equipment & Services     40,000        39,401        39,400   

AlixPartners, LLP, L+925, 1.5% LIBOR Floor, 12/27/19(e)

  Diversified Financials     15,000        14,570        15,197   

Alliance Laundry Systems LLC, L+825, 1.3% LIBOR Floor, 12/10/19(d)(e)

  Capital Goods     4,919        4,870        4,987   

American Racing and Entertainment, LLC, 12.0%, 7/2/18(g)

  Consumer Services     16,800