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Franklin Square Investment Corporation II Reports Net Investment Income of $0.92 Per Share

FS Investment Corporation II, a non-traded business development company sponsored by Franklin Square Capital Partners, announced its operating results for the quarter and full year ended December 31, 2015.

“During the fourth quarter, we continued to leverage our direct lending platform, in partnership with GSO / Blackstone, to identify, source and structure investments with attractive return profiles,” commented Michael C. Forman, chairman and chief executive officer of FSIC II. “We have sought to capitalize on the recent credit market selloff to improve FSIC II’s overall credit profile by moving up the capital structure while maintaining the overall yield of the investment portfolio.”

Financial Highlights for the Quarter Ended December 31, 2015

· Net investment income of $0.20 per share, compared to $0.26 per share for the quarter ended December 31, 2014.

· Net decrease in net assets resulting from operations of $0.36 per share, compared to a net decrease in net assets resulting from operations of $0.07 per share for the quarter ended December 31, 2014.

· Paid regular cash distributions to stockholders totaling approximately $0.19 per share.

Financial Highlights for the Year Ended December 31, 2015

· Net investment income of $0.92 per share, compared to $0.80 per share for the year ended December 31, 2014.

· Net decrease in net assets resulting from operations of $0.19 per share, compared to a net increase in net assets resulting from operations of $0.63 per share for the year ended December 31, 2014.

· Paid regular cash distributions to stockholders totaling approximately $0.75 per share.

Portfolio Highlights

· As of December 31, 2015, the fair value of FSIC II’s investment portfolio was approximately $4.5 billion.

· Committed approximately $391.8 million and $1.6 billion to direct originations during the quarter and year ended December 31, 2015, respectively, of which 91 percent and 94 percent were in senior secured debt (first and second lien senior secured loans and senior secured bonds), respectively.

· FSIC II’s portfolio consisted of investments in 165 portfolio companies as of December 31, 2015.

· Core investment strategies represented 92 percent of the portfolio by fair value as of December 31, 2015, including 79 percent in direct originations and 13 percent in opportunistic investments. Broadly syndicated/other investments represented 8 percent of the portfolio by fair value as of December 31, 2015.

· Gross portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets) was 10 percent as of December 31, 2015, which is unchanged from September 30, 2015.

· One investment was on non-accrual as of December 31, 2015, representing 0.01 percent of the investment portfolio based on market value.

FSIC II focuses primarily on investing in the debt securities of private companies throughout the United States. The company is advised by FSIC II Advisor and is sub-advised by GSO / Blackstone Debt Funds Management LLC, an affiliate of GSO Capital Partners LP.

Franklin Square is a manager of alternative investment funds and introduced the industry’s first non-traded business development company. The firm manages approximately $16.8 billion in assets as of December 31, 2015, and is the largest manager of BDC assets with approximately $15.5 billion in BDC assets under management. Franklin Square distributes its non-traded funds through its affiliated broker-dealer, FS2 Capital Partners.

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