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fs credit opportunities corp pledges steady returns during market volatility 12

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FS Credit Opportunities Corp Pledges Steady Returns During Market Volatility

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Lauren Miller

June 3, 2024 - 20:58 pm

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Stable Returns Amidst Uncertainty: FS Credit Opportunities Corp Announces Monthly Distribution

PHILADELPHIA, June 3, 2024 – In a recent announcement, the Board of Directors of FS Credit Opportunities Corp. (the Fund), a company listed on the New York Stock Exchange under the symbol FSCO, declared the monthly distribution for the month of June 2024. Shareholders can expect a distribution of $0.06 per share payable on June 28, 2024. The Fund has summarized further details regarding this month’s distribution in the following tabular overview.

The declaration reflects a steadfast yearly distribution rate that translates into an annualized yield of 10.2% and 11.4%, relevant to the Fund's net asset value (NAV) and market price as of May 31, 2024, respectively. Demonstrating resilience and strength, the monthly distribution has consistently been supported by the Fund's net investment income for the entirety of 2024. Impressively, the fund has also yielded a total estimated return on NAV of 7.1% and an even more substantial 17.1% return based on the market price year-to-date as of the end of May 2024.

Fund Portfolio and Asset Management

FS Credit Opportunities Corp. manages an impressive portfolio with approximately $2.1 billion in assets under management. The Fund primarily invests in a variety of non-traditional credit avenues, which include event-driven credit opportunities, special situations, strategies in private capital, and other credit solutions that are typically not mainstream. By focusing on these alternative credit segments, the Fund offers investors the unique opportunity to diversify their investment portfolios and potentially reap the rewards of sectors that are less correlated with the traditional markets.

Detailed Distribution Information

To offer more transparency regarding the distribution, the Fund provided a comprehensive table that includes important dates such as the ex-date, record date, and the payable date for the month of June. The distribution is set to follow a specific schedule, ensuring payments are executed timely and shareholders remain informed about when they can expect the distribution proceeds.

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Distribution Policies and Tax Implications

The Fund adheres to a distribution policy that involves the regular payment of monthly cash distributions to its common shareholders. This level rate may be adjusted based on a variety of factors including, but not limited to, changes in the portfolio and prevailing market conditions. This strategic flexibility allows the Fund to maintain distribution consistency in the face of a fluctuating financial landscape.

It is crucial for shareholders to note that the information provided should not be utilized for preparing their tax returns. The Fund will facilitate their tax planning by sending shareholders a Form 1099-DIV for the calendar year, indicating the proper way to report these distributions for federal income tax purposes.

Investment Considerations and Fund Documentation

Potential and current investors are encouraged to assess the Fund’s focus, risks, charges, expenses, and other investment considerations meticulously before choosing to invest. In pursuit of transparency and proper due diligence, the Fund’s most recent reports and filings are accessible on the Securities and Exchange Commission's EDGAR Database. Additionally, these documents can be found on the company's website, enriching investors with valuable information to guide their investment decisions. Those interested can visit the fund's comprehensive resource at FS Credit Opportunities Corp.

About FS Investments

FS Investments stands out as a leading global alternative asset manager, committed to delivering exceptional performance and pioneering investment and capital solutions for a wide cadre of clients. With assets under management exceeding $75 billion, their clientele ranges from institutional investors, and financial professionals to individual investors. The organization offers access to a broad spectrum of alternative asset classes and investment strategies through distinguished investment teams and partners.

The hallmark of FS Investments is their diversified platform paired with flexible capital solutions, establishing the firm as a trusted partner for general partners, asset owners, and portfolio companies. At its foundation, FS Investments is driven by a culture that prioritizes high performance. The company is dedicated to generating value for its investors, supporting the growth and development of its team members, and contributing positively to the communities it serves. With a workforce of over 500, FS Investments has established a remarkable global presence, operating branches in the U.S., Europe, and Asia, with corporate headquarters in Philadelphia.

Contact Information and Points of Communication

To cater to shareholder inquiries and foster clear lines of communication, FS Investments has divulged its contact details. Investor relations are handled by Robert Paun, whose details can be reached through the encoded email ([email protected]). Media relations and press inquiries are managed by Sarah McAssey, and her contact information is similarly available through a protected email link ([email protected]). Both email addresses are crafted to prevent spam and safeguard correspondence.

Forward-Looking Statements Disclaimer and Prediction Prudence

The discourse surrounding the future performance and operational outcomes of the Fund often resorts to forward-looking statements, a term defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words like "intends," "will," "expects," and "may" are frequently used to signal these types of projections. These forward-looking statements, while presented with reasonable expectations, are inherently subject to various uncertainties that could lead to a divergence between actual results and those suggested by the projections.

Investors should stay mindful that a wide range of factors – ranging from broad economic changes, geopolitical risks to potential disruptions caused by hostilities, acts of terrorism, natural disasters or pandemics like COVID-19 – may materially influence the Fund's projected path. Additional elements that could affect the Fund's results include legislative measures, regulatory adjustments, and conditions within the operating area. It is critical to note that unexpected costs may arise and the trading price of the Fund's common stock on the New York Stock Exchange could fluctuate.

The significance of these forward-looking statements cannot be overstressed, yet it's equally crucial for investors to regard them as representations of future expectations rather than guaranteed outcomes. It is the Fund's policy to refrain from updating these statements unless federal securities laws mandate such revisions. As a precaution, readers of this communication are advised not to place undue dependence on any mentioned forward-looking statements.

Dividend Yield Projections and Estimations

As a final note, the importance of the annualized distribution yield must be underscoreed. It is reflective of the current month's distribution per share annualized, set against the backdrop of the estimated NAV per share or the market price per share as the current month concludes. However, investors are reminded that due to the forward-looking nature of these projections, and since they are anchored to the dynamism of the month-end NAV, the distribution yield is a fluid estimate subject to future adjustments.

Conclusion

In conclusion, FS Credit Opportunities Corp. has maintained an auspicious position amidst the unpredictable market currents, underscoring their resilience and commitment to providing consistent shareholder value. By adhering to strategic distribution practices and leveraging alternative credit investments, the Fund positions itself as an attractive option for investors seeking stable returns. As FS Credit Opportunities Corp. continues to navigate the complex financial terrain, their efforts to furnish investors with detailed distribution schedules, tax guidance, and well-documented investment opportunities bear testimony to their fidelity towards investor transparency and engagement.

The communication channels and investor services delineated by the firm further affirm their dedication to accessibility and responsiveness. As prospective and current investors contemplate their engagement with FS Investments, they are well-advised to consider the exhaustive array of information and documents made available by the company. With FS Investments’ propensity for foresight and prudence, individuals invested in the Fund or considering an investment are encouraged to exercise the same level of due diligence and informed decision-making.

As FS Credit Opportunities Corp. ventures into the upcoming financial cycles, it does so with a clear recognition of the challenges and opportunities on the horizon, emphasizing a forward-looking strategy that could well serve their investors in times of both prosperity and uncertainty.

In sum, FS Credit Opportunities Corp.'s latest announcement not only underlines its stable performance metrics and robust asset management but also represents the company's relentless pursuit of transparency and investor relations upkeep. As the financial sector confronts a host of societal and economic headwinds, FS Credit Opportunities Corp. emerges as a beacon of stability, guiding its shareholders towards a course of unwavering confidence and assured financial stewardship.