FS Global Credit Opportunities funds sell shares for loan investments

By Toni Weeks

San Luis Obispo, Calif., Oct. 24 - FS Global Credit Opportunities Fund - A and FS Global Credit Opportunities Fund - D both announced share offerings in separate 497 filings with the Securities and Exchange Commission.

The newly organized non-diversified, closed-end management investment companies seek to generate an attractive total return consisting of a high level of current income and capital appreciation with capital preservation as a secondary objective.

The funds will invest substantially all of their assets in FS Global Credit Opportunities Fund, a separate non-diversified, closed-end management investment company with the same investment objectives and strategies as the A and D funds. The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in a portfolio of secured and unsecured floating- and fixed-rate loans, bonds and other credit instruments, typically rated below investment grade.

The investment committee is led by Michael C. Forman and includes Gerald F. Stahlecker, Zachary Klehr and Robert Hoffman.

The A fund is offering a maximum of 300 million shares at $10.87 per share. The D fund is offering a maximum of 75 million shares at $10.20 per share.

The sales load is 8% for the A fund and 2% for the D fund. Including management fees of 2.8%, total annual fund expenses for each fund are expected to be 5.7%.

Philadelphia-based FS Global Advisor, LLC is the investment adviser to the fund. FS2 Capital Partners, LLC will be the dealer manager for the best-efforts offerings.

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