FS Credit Opportunities Corp. (FSCO) Declares Distribution for February 2024

Rhea-AI Summary

FS Credit Opportunities Corp. (FSCO) announces a monthly distribution for February 2024 of $0.057 per share, equating to an annualized distribution yield of 9.8% on NAV and 11.9% on market price. The Fund has generated a total return of 1.5% on NAV and 2.1% on market price year-to-date through January 31, 2024, with approximately $2 billion in assets under management.

Insights

Financial Analyst

The announcement of FS Credit Opportunities Corp.'s monthly distribution at $0.057 per share is a key indicator of the Fund's current financial health and its ability to generate consistent cash flows. The disclosed annualized distribution yields of 9.8% and 11.9% on the Fund's NAV and market price respectively, are particularly noteworthy. These figures suggest a robust yield that is likely to attract income-focused investors, especially in a low-interest-rate environment. However, it is critical to assess the sustainability of these yields in the context of the Fund's investment strategy in event-driven credit and non-traditional credit opportunities, which may carry higher risk compared to more traditional fixed-income investments.

Furthermore, the fact that the monthly distribution has been fully covered by net investment income indicates operational efficiency and a strong income-generating portfolio. Yet, investors should remain vigilant about the potential for changes in market conditions that could affect future distributions. The Fund's asset under management (AUM) of approximately $2 billion provides a sense of scale and diversification potential, though the actual diversification benefits would depend on the specific assets and strategies employed by the Fund.

Market Research Analyst

The performance metrics, such as the estimated total return on NAV of 1.5% and 2.1% on market price year-to-date, provide a snapshot of the Fund's short-term performance relative to the broader market. These figures, while modest, may be aligned with the Fund's strategy focusing on event-driven and special situations, which can lead to asymmetric risk-return profiles. The Fund's performance should be contextualized within its peer group and the broader credit market to fully understand its competitive positioning.

Additionally, the Fund's decision to maintain a level rate of distribution may be appealing to shareholders seeking predictable income streams. However, the level rate policy may also imply that distributions could be maintained during periods of underperformance at the expense of reinvestment or capital preservation strategies. This could potentially impact the Fund's long-term capital growth prospects. As such, an analysis of the Fund's distribution policy in relation to its total return and capital appreciation is crucial for a comprehensive understanding of its investment approach and appeal to different types of investors.

Economist

The Fund's distribution yield can be seen as a reflection of the current macroeconomic environment. High distribution yields, such as those reported by FS Credit Opportunities Corp., may signal a higher risk appetite among investors, but they can also be indicative of a search for yield in a potentially low-interest-rate economic climate. It's important to consider the broader economic trends, such as inflation rates, interest rate policies and economic growth projections, as these factors can significantly influence the performance of credit markets and the attractiveness of high-yield investments.

Moreover, the Fund's focus on non-traditional credit opportunities suggests a strategy that may be less correlated with traditional market movements, potentially offering diversification benefits during economic downturns or market volatility. However, the specialized nature of these investments also requires investors to have a thorough understanding of the associated risks and the economic factors that could affect their performance.

PHILADELPHIA, Feb. 9, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced today the monthly distribution for February 2024. The February distribution will be paid on February 29, 2024 at $0.057 per share. Further information on the distribution is summarized in the charts below.

The current annualized distribution rate equates to an annualized distribution yield¹ of 9.8% and 11.9% as of January 31, 2024 on the Fund's net asset value (NAV) and market price, respectively. The monthly distribution has been fully covered by the Fund's net investment income throughout 2024, and the Fund has generated an estimated total return on NAV of 1.5% and 2.1% on market price year-to-date through January 31, 2024.

The Fund has approximately $2 billion in assets under management and invests in event-driven credit, special situations, private capital solutions and other non-traditional credit opportunities.

Month	Ticker	Fund Name		Monthly Dividend
February	FSCO	FS Credit Opportunities Corp.		$0.057

The distribution will be made on the following schedule:

Month	Ex-Date	Record Date	Payable Date
February	February 21, 2024	February 22, 2024	February 29, 2024

The Fund pays regular monthly cash distributions to common shareholders at a level rate that may be adjusted from time to time. The amount of monthly distributions may be affected by numerous factors, including changes in portfolio and market conditions.

Shareholders should not use the information provided here in preparing their tax returns. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will tell them how to report these distributions for federal income tax purposes.

Investors should consider, among other things, the investment objectives, risks, charges and expenses of the Fund carefully before investing. Investors can find the Fund's most recent reports and other filings on the Securities and Exchange Commission's EDGAR Database or on the Fund's website (https://fsinvestments.com/fs-credit-opportunities-corp/).

About FS Investments
FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over $75 billion in assets for a wide range of clients, including institutional investors, financial professionals and individual investors. FS Investments provides access to a broad suite of alternative asset classes and strategies through its best-in-class investment teams and partners. With its diversified platform and flexible capital solutions, the firm is a valued partner to general partners, asset owners and portfolio companies. FS Investments is grounded in its high-performance culture and guided by its commitment to building value for its clients, investing in its colleagues and giving back to its communities. The firm has more than 500 employees across offices in the U.S., Europe and Asia and is headquartered in Philadelphia.

Contact Information:

Investor Relations
Robert Paun
robert.paun@fsinvestments.com

Media
Sarah McAssey
media@fsinvestments.com

Forward Looking Statements
Statements included herein may constitute "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to future events or the future performance or operations of the Fund. Words such as "intends," "will," "expects," and "may" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, geopolitical risks, risks associated with possible disruption to the Fund's operations or the economy generally due to hostilities, terrorism, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in the Fund's operating area, unexpected costs, the price at which the Fund's shares of common stock may trade on the New York Stock Exchange and such other factors that are disclosed in the Fund's filings with the Securities and Exchange Commission. The inclusion of forward-looking statements should not be regarded as a representation that any plans, estimates or expectations will be achieved. Any forward-looking statements speak only as of the date of this communication. Except as required by federal securities laws, the Fund undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

¹ Annualized distribution yield reflects the current month's distribution per share annualized and divided by the estimated current month end net asset value (NAV) per share or market price per share; because annualized distribution yield is based on estimated current month end NAV, it is an estimate that is subject to change.

View original content:https://www.prnewswire.com/news-releases/fs-credit-opportunities-corp-fsco-declares-distribution-for-february-2024-302058843.html

SOURCE FS Investments

FAQ

What is the ticker symbol of FS Credit Opportunities Corp. mentioned in the press release?

The ticker symbol is FSCO.

What is the monthly distribution amount announced for February 2024 by FS Credit Opportunities Corp.?

The monthly distribution amount is $0.057 per share.

What is the annualized distribution yield on NAV for FS Credit Opportunities Corp. as of January 31, 2024?

The annualized distribution yield on NAV is 9.8%.

What is the total return on market price generated by FS Credit Opportunities Corp. year-to-date through January 31, 2024?

The total return on market price is 2.1%.

Where can investors find FS Credit Opportunities Corp.'s most recent reports and other filings?

Investors can find the Fund's reports and filings on the Securities and Exchange Commission's EDGAR Database or on the Fund's website.