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

Rhea-AI Summary

FS Credit Opportunities Corp. (NYSE: FSCO) announced the monthly distribution for January 2024, with a payout of $0.057 per share. The annualized distribution yield stands at 9.9% and 12.1% on the Fund's net asset value and market price, respectively. The Fund has generated an estimated total return on NAV of 20.0% year-to-date through December 31, 2023, with approximately $2.1 billion in assets under management, investing in event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities.

Insights

Financial Analyst

The annualized distribution yield of 9.9% to 12.1% is notably high compared to the average yield of fixed income investments, indicating that FS Credit Opportunities Corp. is offering an attractive income stream to its investors. However, such high yields often come with higher risks, which may include credit risk, interest rate risk and liquidity risk. Investors should assess the Fund's credit risk profile and the quality of assets it holds to gauge the sustainability of these distributions.

Moreover, the Fund's claim of having the monthly distribution fully covered by net investment income throughout 2023 suggests robust operational performance. However, investors should scrutinize the Fund's payout ratio and compare it with industry norms to ensure that distributions are not compromising the Fund's capital or future growth.

Market Research Analyst

With $2.1 billion in assets under management, FS Credit Opportunities Corp. is a significant player in the non-traditional credit space. The Fund's focus on event-driven credit and special situations could provide diversification benefits to investors' portfolios. However, these strategies can be complex and may carry higher volatility. It is important to consider the Fund's historical performance, particularly the 20.0% total return on NAV year-to-date, in the context of overall market conditions and credit spreads to evaluate the Fund's market positioning and risk-adjusted returns.

Economist

The distribution yield and total return metrics are reflective of the broader economic environment, including interest rates and the health of the credit markets. In a low-interest-rate environment, the high yield offered by FS Credit Opportunities Corp. would be particularly attractive. However, in a rising interest rate environment, the value of the Fund's existing debt holdings could decline, potentially affecting its NAV and the sustainability of its distribution rate. Investors should consider macroeconomic trends and monetary policy outlook when evaluating the Fund's future performance.

PHILADELPHIA, Jan. 11, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced today the monthly distribution for January 2024. The January distribution will be paid on January 31, 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 9.9% and 12.1% as of December 31, 2023 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 2023, and the Fund has generated an estimated total return on NAV of 20.0% year-to-date through December 31, 2023.

The Fund has approximately $2.1 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
January	FSCO	FS Credit Opportunities Corp.		$0.057

The distribution will be made on the following schedule:

Month	Ex-Date	Record Date	Payable Date
January	January 23, 2024	January 24, 2024	January 31, 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.

 

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SOURCE FS Investments

FAQ

What is the monthly distribution for January 2024 announced by FS Credit Opportunities Corp. (FSCO)?

The monthly distribution for January 2024 announced by FS Credit Opportunities Corp. (FSCO) is $0.057 per share.

What is the annualized distribution yield for FS Credit Opportunities Corp. (FSCO)?

The annualized distribution yield for FS Credit Opportunities Corp. (FSCO) stands at 9.9% and 12.1% on the Fund's net asset value and market price, respectively.

What is the total return on NAV of FS Credit Opportunities Corp. (FSCO) year-to-date through December 31, 2023?

FS Credit Opportunities Corp. (FSCO) has generated an estimated total return on NAV of 20.0% year-to-date through December 31, 2023.

How much in assets does FS Credit Opportunities Corp. (FSCO) have under management?

FS Credit Opportunities Corp. (FSCO) has approximately $2.1 billion in assets under management.

What does FS Credit Opportunities Corp. (FSCO) invest in?

FS Credit Opportunities Corp. (FSCO) invests in event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities.