FS Investment Corporation III Lowers DRP Price per Share
July 5, 2018 | James Sprow | Blue Vault
Effective June 29, 2018, FS Investment Corporation III (the “Company”) decreased the price at which it issues shares under its distribution reinvestment plan (the “DRP”) from $8.25 per share to $8.20 per share. As previously disclosed by the Company, the price at which shares are issued under the DRP is determined by the Company’s board of directors (the “Board”) or a committee thereof, in its sole discretion, and is (i) not less than the net asset value per share determined in good faith by the Board or a committee thereof, in its sole discretion, immediately prior to the payment of the distribution (the “NAV Per Share”) and (ii) not more than 2.5% greater than the NAV Per Share as of such date. The purpose of this decrease was to ensure that the Company did not issue shares under the DRP at a price per share that was more than 2.5% greater than the NAV Per Share.
In the Q1 2018 BDC Industry Review, Blue Vault reported that FS Investment Corporation III had $3.77 billion in total assets, invested in 101 companies’ private debt. The BDC was paying a quarterly distribution in Q1 2018 of $0.175 per share. The BDC’s net investment income for Q1 2018 was $0.17 compared to $0.16 for Q1 2017.
A third party, (McKenzie Capital Management) filed a tender offer dated July 2, 2018, to purchase up to 2,500,000 shares at a purchase price of $5.00 per share. The offer was extended to August 10, 2018.
Sources: SEC, Blue Vault
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