Franklin Square’s Investment Corporation III Reports First Quarter 2016 Financial Results

FS Investment Corporation III, a non-traded business development company sponsored by Franklin Square, announced its operating results for the quarter ended March 31, 2016. FSIC III will hold a conference call to discuss the results at 3:00 p.m. ET on Thursday, May 19th.

“Despite general weakness in the secondary markets during the first quarter, FSIC III’s focus on investing in senior secured, floating rate debt of U.S. middle market companies provided our investors with a high level of current income,” commented Michael C. Forman, chairman and chief executive officer of FSIC III. “Especially during these periods of volatility, we expect that our partnership with GSO / Blackstone and long-term fund structure will help drive performance and preserve capital over time.”

Financial Highlights for the Quarter Ended March 31, 2016:

· Net investment income of $0.16 per share, compared to $0.14 per share for the quarter ended March 31, 2015

· Net increase in net assets resulting from operations of $0.10 per share, compared to $0.24 per share for the quarter ended March 31, 2015

· Negligible realized loss, compared to a gain of $0.03 per share for the quarter ended March 31, 2015

· Net change in unrealized appreciation (depreciation) of $(0.06) per share, compared to $0.07 per share for the quarter ended March 31, 2015

· Paid regular cash distributions to stockholders totaling approximately $0.18 per share

Portfolio Highlights as of March 31, 2016

· The fair value of FSIC III’s investment portfolio was approximately $2.8 billion

· FSIC III’s portfolio consisted of investments in 130 portfolio companies

· Committed approximately $102 million to direct originations

· Core investment strategies represented 90 percent of the portfolio by fair value, including 68 percent in direct originations and 22 percent in opportunistic investments. Broadly syndicated/other investments represented 10 percent of the portfolio by fair value

· Gross portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets) was 9.9 percent, compared to 10.7 percent as of March 31, 2015

· Non-accruals represented 1.0 percent of the investment portfolio based on fair value

Quarterly Stockholder Conference Call

FSIC III will host a conference call at 3:00 p.m. ET on Thursday, May 19th to discuss its first quarter 2016 results. To access the conference call, dial (877) 443-2408 and use conference ID 92498276 approximately 10 minutes prior to the call. A replay will be available for 30 days following the call by visiting FSIC III’s “Literature” page on the company’s website.

FSIC III focuses primarily on investing in the debt securities of private companies throughout the United States. The BDC went effective in December 2013 and has raised $2.4 billion in investor equity since inception, according to the most recent Stanger Market Pulse. FSIC III is advised by FSIC III Advisor LLC, an affiliate of Franklin Square, and is sub-advised by GSO / Blackstone Debt Funds Management LLC, an affiliate of GSO Capital Partners LP.

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