FS Global Credit Opportunities Fund–D

FSGCO–D (closed)

Fund:

FSGCO–A, FSGCO–D, FSGCO–ADV, FSGCO–T and FSGCO–T2 are closed to new investors.

Investment objectives

Generate an attractive total return with a secondary objective of capital preservation

Overview

FSGCO is an unlisted, closed-end fund. The fund invests primarily in global corporate credit, including loans, bonds and other credit instruments that companies use to finance their operations.

Adviser

FS Global Advisor, LLC
An affiliate of FS Investments

Sub-adviser

GSO Capital Partners LP
The credit platform of Blackstone


Pricing

Net asset value 1 (as of 10/18/2017) $7.79
Annualized distribution rate 2 (based on net asset value as of 10/18/2017) 11.16%


View Pricing Disclosure For Footnotes 12
1FSGCO–D’s net asset value (NAV) per common share as of the date indicated is the NAV determined by FSGCO–D for purposes of complying with the requirements of Section 23(b) of the Investment Company Act of 1940, as amended, and has not been approved by FSGCO–D’s board of trustees. FSGCO–D’s NAV per common share may increase or decrease in the future, and any such change may be material.
2The annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the regular weekly cash distribution per share as of the date indicated, without compounding), divided by FSGCO–D’s net asset value per share as of the date indicated. The annualized distribution rate shown may be rounded. The payment of future distributions on FSGCO–D’s common shares is subject to the discretion of FSGCO–D’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. The sources of FSGCO–D’s cash distributions for the year ended December 31, 2016 were as follows: net investment income: 89%, expense reimbursement and additional support payment from FS Investments: 11%. The determination of the tax attributes of FSGCO–D’s distributions is made annually as of the end of FSGCO–D’s fiscal year based upon FSGCO–D’s taxable income for the full year and distributions paid for the full year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of FSGCO–D’s distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV.

Performance – returns


Shareholder returns 1
Without sales charge, compounded monthly
YTD
6.1%
1 year
14.3%
3 years
Annualized
3.5%
5 years
Annualized
––
Since inception
Annualized
4.1%
Cumulative total return
Since inception
16.5%
Cumulative cash distributions per share 3
Since inception
$3.31
Inception date
12/13/2013
As of 9/30/2017, unless otherwise noted. Numbers may be rounded.
Returns shown are historical only and are based on past performance. Past performance is not a guarantee of future results.
View Returns disclosure For Footnotes 123
1

Shareholder Returns (Without Sales Charge) are the total returns an investor received for the highlighted period taking into account all distributions paid during such period, compounded monthly. The calculation of the Shareholder Returns (Without Sales Charge) (during the period FSGCO–D offered shares to the public in its public offering), assumes that the investor purchased shares at FSGCO–D’s public offering price, excluding dealer manager fees, as applicable, at the beginning of the applicable period and reinvested all cash distributions pursuant to its distribution reinvestment plan (“DRP”). Since FSGCO–D closed its public offering in April 2016, and has since issued new shares only pursuant to its DRP, the calculation of FSGCO–D’s Shareholder Returns (Without Sales Charge) for the YTD and 1-year periods assume that the investor purchased shares at the beginning of the applicable period at a price based upon FSGCO–D’s DRP on such date. Valuation as of the end of each period is the repurchase price pursuant to FSGCO–D’s share repurchase program on such date. Shareholder Returns (Without Sales Charge) do not include dealer manager fees, which could have totaled up to 2% of FSGCO–D’s public offering price. Had such dealer manager fees been included, performance would be lower. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.

FSGCO–D is closed to new investors. FSGCO–D’s total operating expenses as a percentage of average net assets were 0.53% for the year ended December 31, 2016. Shareholders of FSGCO–D indirectly bear the expenses of FSGCO, as FSGCO–D’s assets are invested in FSGCO. FSGCO’s total operating expenses as a percentage of average net assets was 4.61% for the year ended December 31, 2016.

2Shareholder Return (With Sales Charge) is the total return an investor received since inception taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at FSGCO–D’s public offering price, including the maximum dealer manager fees, at inception and reinvested all distributions pursuant to FSGCO–D’s DRP. Valuation as of the end of the period is the repurchase price pursuant to FSGCO–D’s share repurchase program on such date. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.
3Cumulative cash distributions per share reflect the total regular cash distributions paid since inception on a per share basis as of September 30, 2017. The payment of future distributions on the funds’ shares is subject to the sole discretion of the funds’ boards of directors or trustees, as applicable, and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.

Portfolio composition1

View Portfolio disclosure For Footnotes 1
1As of 6/30/2017. Calculated as a percentage of fair value. Fair value is determined by FS Global Credit Opportunities Fund’s (FSGCO) board of trustees. Investments listed are held by FSGCO. Investments in FSGCO are made indirectly through FSGCO–A, FSGCO–D, FSGCO–T, FSGCO–ADV and FSGCO–T2.

Key facts*

Inception date 12/12/2013
Closed to new investors 4/27/2016
Total AUM 1 $2.23 billion
Number of portfolio companies 93
Sponsor commitment (as of 5/1/2017) 2 $57.14 million
Floating rate assets 3 40% of portfolio
Distribution frequency 4 Monthly
Liquidity 5 Quarterly tender offers
Tax reporting Form 1099-DIV
*As of 6/30/2017 unless otherwise noted.
View key facts disclosure for Footnotes 12345
1Total AUM represents the total assets of FSGCO. Investments in FSGCO are made indirectly through FSGCO–A, FSGCO–D, FSGCO–T, FSGCO–ADV, and FSGCO–T2.
2Sponsor commitment means the aggregate investments in FSGCO–T, FSGCO–A, FSGCO–D, FSGCO–ADV, and FSGCO-T2 made by investors affiliated with FS Global Advisor, LLC and GSO Capital Partners LP, including members of FSGCO–D’s board of trustees.
3Calculated as a percentage of fair value. Fair value is determined by FSGCO’s board of trustees.
4The payment of future distributions on FSGCO–D’s common shares is subject to the discretion of FSGCO–D’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.
5FSGCO–D intends to repurchase a limited number of shares pursuant to its share repurchase program. FSGCO–D may amend, suspend or terminate its share repurchase program at any time.
View risk factors disclosure

Investments in FSGCO are made indirectly through FSGCO–D. FSGCO is a separate non-diversified, closed-end management investment company that carries out the investment strategies generally described herein. An investment in FSGCO–D involves a high degree of risk and may be considered speculative. The following are some of the risks an investment in FSGCO–D’s common shares involves; however, investors should carefully consider all of the risks discussed in FSGCO–D’s reports filed with the SEC before deciding to invest in FSGCO–D’s common shares.

  • An investment in common shares is not suitable for an investor if they need access to the money they invest.
  • Shareholders should consider that they may not have access to the money they invest for an indefinite period of time.
  • Unlike an investor in most closed-end funds, FSGCO–D’s shareholders should not expect to be able to sell their common shares regardless of how FSGCO–D performs.
  • If a shareholder is able to sell their common shares, the shareholder will likely receive less than their purchase price and the then-current NAV per common share.
  • Unlike most closed-end funds, FSGCO–D’s common shares are not listed on any securities exchange, and FSGCO–D intends to evaluate completing a liquidity event within seven years following the date on which it commenced investment operations. The distribution fee will terminate for all shareholders upon the occurrence of a liquidity event. As such, there may be a conflict of interest relating to the timing with which FS Global Advisor, LLC seeks to complete a liquidity event for shareholders.

  • To provide shareholders with limited liquidity, FSGCO–D intends to conduct quarterly repurchases of common shares. Although FSGCO–D has implemented a share repurchase program, it may be discontinued at any time and only a limited number of common shares are eligible for repurchase. 
  • FSGCO–D’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to FSGCO–D for investment. Any capital returned to shareholders through distributions will be distributed after payment of fees and expenses, as well as the sales load.
  • FSGCO–D’s and FSGCO’s previous distributions to shareholders were funded in significant part from the reimbursement of certain expenses, including through the waiver of certain investment advisory fees, and additional support payments that may be subject to repayment to FSGCO–D’s and FSGCO’s affiliate, FS Investments, and FSGCO–D’s and FSGCO’s future distributions may be funded from such waivers, reimbursements or payments. Significant portions of these distributions were not based on FSGCO’s investment performance and such waivers, reimbursements and payments by FS Investments may not continue in the future. If FS Investments had not agreed to reimburse certain of FSGCO–D’s or FSGCO’s expenses, including through the waiver of certain advisory fees payable by FSGCO, and provide additional support payments, significant portions of FSGCO–D’s and FSGCO’s distributions would have come from offering proceeds or borrowings. The repayment of any amounts owed to FS Investments will reduce the future distributions to which FSGCO–D’s shareholders would otherwise be entitled.
  • Even if FSGCO does eventually list its common shares, common shares of closed-end funds frequently trade at a discount to NAV, and this creates a risk of loss for investors who purchased common shares at the offering price. This risk is separate and distinct from the risk that FSGCO–D’s NAV will decrease.
  • FSGCO’s investments in securities and other obligations of companies that are experiencing distress involve a substantial degree of risk, require a high level of analytical sophistication for successful investment and require active monitoring.
  • FSGCO’s investments in various types of debt securities and instruments may be secured, unsecured, rated or unrated, are subject to non-payment risk, and may be speculative in nature. 
  • Below investment grade instruments (commonly referred to as “high yield” securities or “junk bonds”) may be particularly susceptible to economic downturns, which could cause losses. 
  • FSGCO may invest in illiquid and restricted securities that may be difficult to dispose of at a fair price.
  • FSGCO’s use of leverage could result in special risks for FSGCO’s shareholders, including FSGCO–D, and can magnify the effect of any losses.
  • Investments in certain securities or other instruments of non-U.S. issuers or borrowers may involve factors not typically associated with investing in the United States or other developed
    countries.
  • Securities or other instruments of non-U.S. securities may be traded in underdeveloped, inefficient and less liquid markets and may experience greater price volatility, illiquidity and changes in value.
  • FS Global Advisor, LLC, GSO Capital Partners LP and certain of their affiliates may experience conflicts of interest in connection with the management of FSGCO.
  • FSGCO–D and FSGCO have limited operating histories and are subject to the business risks and uncertainties associated with any new business.
  • FSGCO seeks to achieve its investment objectives by focusing on a limited number of opportunities across the investment universe.



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