FS Investment Corporation 8-K Summary
Business Context and Reporting Period
This Form 8-K Current Report was filed by FS Investment Corporation (noting the input metadata reference to FS KKR Capital Corp) on October 22, 2013, covering events occurring on October 16, 2013. The filing primarily addresses a change in the Company's regular monthly cash distribution policy.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the period. The primary financial data disclosed relates to shareholder distributions:
- Previous Monthly Distribution: $0.06975 per share.
- New Monthly Distribution: $0.0720 per share (effective November).
- Annual Distribution Rate Increase: From 7.75% to 8.00% (based on the last public offering price of $10.80 per share).
- Upcoming Payments: $0.06975 per share payable October 31, 2013; $0.0720 per share payable November 29, 2013.
Material Changes
The Board of Directors increased the regular monthly cash distribution rate to stockholders. This change is effective for the distribution payable in November 2013. The increase raises the annualized distribution yield from 7.75% to 8.00%.
Outlook, Risks, and Management Commentary
Tax Attributes: The tax characterization of distributions (e.g., ordinary income vs. return of capital) is determined annually at the end of the fiscal year. Quarterly estimates may not reflect the final annual tax attributes, which will be reported on Form 1099-DIV.
Future Distributions: The payment of future distributions is subject to the discretion of the Board and applicable legal restrictions. The filing explicitly states there can be no assurance as to the amount or timing of future distributions.
Other Events: The Company issued a press release on October 22, 2013, which is attached as Exhibit 99.1.
Investor Verification Checklist
- Verify the record dates for the October 31 and November 29 payments (October 30 and November 28, respectively).
- Confirm the final tax attributes of the distributions upon receipt of the annual Form 1099-DIV.
- Review the attached press release (Exhibit 99.1) for additional context on the distribution increase.
- Note that the filing does not contain operational financial results (revenue, net income) for the period.