Generate current income and, to a lesser extent, long-term capital appreciation
FSIC III is a business development company (BDC) designed to provide a high level of current income. The fund primarily invests in floating rate, senior secured loans of private U.S. middle market companies.
FSIC III Advisor, LLC
An affiliate of FS Investments
The calculation assumes that the investor purchased shares at FSIC III's institutional offering price at the beginning of the applicable period and reinvested all cash distributions pursuant to FSIC III's distribution reinvestment plan (DRP). Valuation as of the end of each period is the repurchase price pursuant to FSIC III’s share repurchase program on such date. Institutional stockholder returns include all fund operating expenses. Upon liquidation or repurchase, market conditions may cause the actual values to be more or less than the values shown.
The stockholder returns reflect FSIC III’s expenses for each period shown. FSIC III’s shares are no longer subject to a sales load, but are still subject to offering expenses of up to 1.5% of the gross proceeds received in its offering. FSIC III’s ratio of total operating expenses, together with excise taxes, to average net assets was 5.89% for the year ended December 31, 2015.
Asset: As of June 30, 2016. Calculated as a percentage of fair value. Fair value is determined by FSIC III’s board of directors. Includes investments held by FSIC III and the assets underlying FSIC III’s total return swap (TRS) financing arrangement with Citibank, N.A. Excluding investments held under the TRS, floating rate investments comprised 73.5% of FSIC III’s investment portfolio and investment allocations were 66% first lien senior secured loans, 10% second lien senior secured loans, 1% senior secured bonds, 19% subordinated debt, <1% collateralized securities and 4% equity/other.
Industry: As of June 30, 2016. Calculated as a percentage of fair value. Fair value is determined by FSIC III’s board of directors. Does not include assets underlying FSIC III’s TRS financing arrangement with Citibank, N.A.
Top 10 holdings: As of June 30, 2016. Calculated as a percentage of fair value. Fair value is determined by FSIC III’s board of directors. Securities may be an obligation of one or more entities affiliated with the named company. Percentages shown are net of unfunded commitment amounts. Does not include assets underlying FSIC III’s TRS financing arrangement with Citibank, N.A.
Investing in FSIC III may be considered speculative and involves a high level of risk, including the risk of a substantial loss of investment. The following are some of the risks an investment in FSIC III’s common stock involves; however, you should carefully consider all of the information found in the section of FSIC III’s prospectus entitled “Risk Factors” before deciding to invest in shares of FSIC III’s common stock.
To invest in FSIC III, an investor must have either (i) a net worth of at least $70,000 and an annual gross income of at least $70,000, or (ii) a net worth of at least $250,000. Some states impose higher suitability standards. Please consult the prospectus for a detailed description of the suitability standards imposed on investors, including heightened standards required by certain states.
An investment in FSIC III’s common stock involves significant costs and investors should review the information in FSIC III’s prospectus regarding fees and expenses.
FS Investment Solutions, LLC | 201 Rouse Boulevard | Philadelphia, PA 19112
877-372-9880 | Member FINRA/SIPC