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FS Investments Closes $830 Million in the Second Quarter

FS Investments, an alternative investment manager formerly known as Franklin Square Capital Partners, announced that its business development company direct lending platform committed more than $830 million to middle market companies in the second quarter of 2016, bringing its year-to-date total commitments to more than $1.2 billion. New directly originated investments during the quarter were made in support of 12 portfolio companies headquartered in seven different U.S. states.

“Our market-leading scale serves as a great deal sourcing advantage,” said Michael Forman, chairman and chief executive officer of FS Investments. “Our ability to underwrite larger investments provides access to a broad set of investment opportunities for our investors and a flexible source of financing for our portfolio companies and their private equity sponsors.”

Newly committed capital was provided by five BDCs managed by affiliates of FS Investments and sub-advised by GSO Capital Partners LP or its affiliate: FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV and FS Energy and Power Fund. FS Investments is the largest manager of BDCs.

The company’s directly originated transactions included investments in the following companies in the second quarter:

FourPoint Energy:

FSIC, FSIC II and FSEP provided an upsized equity commitment to FourPoint Energy, a Denver-headquartered private oil and gas exploration and production company. The new equity investment served to recapitalize and solidify FourPoint’s balance sheet and provided financing for its acquisition of new acreage.

Polymer Additives Holdings (dba: Valtris Specialty Chemicals):

FSIC, FSIC II and FSIC III provided a new senior secured unitranche commitment to Valtris Specialty Chemicals, an Independence, Ohio-headquartered manufacturer of specialty chemicals, including lubricants, stabilizers and polymer modifiers. The new term loan refinanced FS Investments’ previous investment in the company and provided incremental capital to help fund the acquisition of Akcros Holdings Limited, a manufacturer of additives for the processing and manufacturing of polymers

A.P. Plasman:

FSIC provided a new senior secured commitment to A.P. Plasman, a designer and manufacturer of exterior trim products to a variety of industries. FSIC’s new commitment refinanced its previous investment in the company and provided additional capital to support its acquisition of Plastal Industri, a supplier of exterior painted trim products for the European automotive industry.

In addition to new investments made during the quarter, FSIC, FSIC II and FSIC III’s senior secured first lien loan to Pittsburgh Glass Works was repaid in connection with the sale of the company. Pittsburgh Glass Works, a Pittsburgh-headquartered automotive glass company, was acquired by LKQ Corp., a Chicago-based provider of automotive parts and components.

FS Investments was founded in 2007 as Franklin Square Capital Partners and currently manages six funds with more than $18 billion in assets under management.

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