FS Investment Corporation Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by FS Investment Corporation (the "Company") on December 22, 2014, reporting events occurring on December 18, 2014. The filing concerns Broad Street Funding LLC, a wholly-owned financing subsidiary of the Company.
Key Financial Metrics and Debt
The filing details an amendment to the Company's revolving credit facility with Deutsche Bank AG, New York Branch. Key terms of the amendment include:
- Maturity Extension: The maturity date of the Credit Facility was extended to December 18, 2015.
- Commitment Fee: A fee of 1.50% is payable on unused amounts, triggered after five consecutive business days where utilization is less than 33% of the maximum commitment.
- Flexibility: Broad Street Funding LLC gained the right to reduce the maximum commitment upon three days' notice.
- Costs: The Company paid certain fees to Deutsche Bank in connection with the amendment.
The filing text does not provide specific values for total revenue, net profit, cash flow, margins, total debt outstanding, or liquidity ratios.
Material Changes
The primary material change is the extension of the credit facility maturity by one year and the introduction of a specific commitment fee structure based on utilization levels. No other material terms of the Credit Facility were changed.
Outlook, Risks, and Contingencies
The filing includes standard forward-looking statements regarding future performance. Management notes that actual results may differ due to factors including:
- Changes in the economy.
- Risks of operational disruption due to terrorism or natural disasters.
- Future changes in laws or regulations.
- Conditions in the Company's operating area.
The Company explicitly states it undertakes no obligation to update or revise these forward-looking statements.
Investor Verification Checklist
- Verify the total maximum commitment amount of the revolving credit facility, which is not specified in this summary.
- Confirm the specific dollar amount of fees paid to Deutsche Bank for the amendment.
- Review the full text of the Seventh Amendment to Credit Agreement (Exhibit 10.1) for covenants and default provisions.
- Assess the Company's current utilization rate of the facility to determine if the 1.50% commitment fee is currently triggered.