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

Rhea-AI Summary

FS Credit Opportunities Corp. (NYSE: FSCO) has declared a monthly distribution of $0.06 per share for September 2024, payable on September 30, 2024. The current annualized distribution yield is 10.1% based on NAV and 11.4% based on market price as of August 31, 2024. The Fund has $2.2 billion in assets under management and invests in event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities.

Key highlights:

• Monthly distribution fully covered by net investment income throughout 2024
• Estimated total return on NAV of 10.0% year-to-date
• Estimated total return on market price of 19.8% year-to-date

Positive

• Monthly distribution of $0.06 per share declared for September 2024
• High annualized distribution yield of 10.1% based on NAV and 11.4% based on market price
• Monthly distribution fully covered by net investment income throughout 2024
• Estimated total return on NAV of 10.0% year-to-date
• Estimated total return on market price of 19.8% year-to-date
• $2.2 billion in assets under management

Negative

• None.

Financial Analyst

The $0.06 monthly distribution from FSCO, yielding an annualized 10.1% to 11.4% based on NAV and market price, is notably high in the current market environment. This attractive yield could draw income-seeking investors, potentially supporting the stock price. However, it's important to note that high yields can sometimes indicate higher risk.

The Fund's $2.2 billion in assets under management and focus on non-traditional credit opportunities suggest a diversified portfolio, which could provide some stability. The 10.0% NAV return and 19.8% market price return year-to-date are impressive, outperforming many traditional fixed-income investments. This performance, coupled with the distribution being fully covered by net investment income, indicates strong underlying asset performance and prudent management.

Portfolio Manager

The Fund's investment strategy in event-driven credit, special situations and private capital solutions is intriguing. These areas often offer higher yields but come with increased complexity and potential illiquidity. The 10.1% to 11.4% distribution yield suggests the strategy is currently successful in generating income.

However, investors should be cautious. The significant spread between the 10.0% NAV return and 19.8% market price return indicates the fund may be trading at a premium to its underlying assets. This could pose a risk if the premium narrows. Additionally, while the distribution is currently covered by net investment income, sustainability in various market conditions is key. The monthly distribution model provides regular income but may pressure managers to maintain yields in challenging markets.

PHILADELPHIA, Sept. 9, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for September 2024. The distribution of $0.06 per share will be paid on September 30, 2024. Further information on the distribution is summarized in the charts below.

The current annualized distribution rate equates to an annualized distribution yield¹ of 10.1% and 11.4%, respectively, based on the Fund's net asset value (NAV) and market price as of August 31, 2024. 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 10.0% and 19.8% on market price year-to-date through August 31, 2024.

The Fund has approximately $2.2 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
September	FSCO	FS Credit Opportunities Corp.		$0.06

The distribution will be made on the following schedule:

Month	Ex-Date	Record Date	Payable Date
September	September 23, 2024	September 23, 2024	September 30, 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
Joe Montelione
joseph.montelione@fsinvestments.com 

Media
Sarah Hilferty
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 amount for FSCO in September 2024?

FS Credit Opportunities Corp. (FSCO) declared a monthly distribution of $0.06 per share for September 2024.

When is the September 2024 distribution payable for FSCO shareholders?

The September 2024 distribution for FSCO shareholders is payable on September 30, 2024.

What is the current annualized distribution yield for FSCO based on its NAV?

The current annualized distribution yield for FSCO is 10.1% based on its net asset value (NAV) as of August 31, 2024.

How much assets under management does FSCO have as of September 2024?

FS Credit Opportunities Corp. (FSCO) has approximately $2.2 billion in assets under management as of September 2024.

What is FSCO's estimated total return on market price year-to-date through August 31, 2024?

FSCO's estimated total return on market price year-to-date through August 31, 2024, is 19.8%.