Foundations America Strategic Income offers $1.5 billion of shares

By Toni Weeks

San Diego, March 19 - Foundations America Strategic Income Corp. registered shares of its common stock in an N-2 filing with the Securities and Exchange Commission.

The newly organized closed-end management investment company intends to sell up to 150 million shares of its common stock at $10 per share on a best-efforts basis for gross proceeds of up to $1.5 billion.

The company's objective is to generate current income and, to a lesser extent, capital appreciation by investing primarily in the debt of privately owned U.S. companies, with a focus on senior secured debt, second-lien debt and subordinated debt.

The offering is subject to a minimum of $1.5 million of shares sold. After the minimum requirement is met, the company will sell shares on a continuous basis. The initial subscription amount must be at least $5,000. Wells Capital, Inc. is the administrative agent.

Robert Kennedy is the portfolio manager.

Each $10 share will incur a $1, or 10%, sales load, which includes up to 7% for selling commissions and up to 3% for dealer manager fees.

Norcross, Ga.-based FoundationsAmerica Advisers, LLC will serve as the investment adviser.

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