FSIC III to raise funds for middle-market company loans via stock sale

By Toni Weeks

San Luis Obispo, Calif., Feb. 19 - FS Investment Corp. III announced plans to conduct a public offering of stock through dealer manager FS2 Capital Partners, LLC, according to a 497 filing with the Securities and Exchange Commission.

The newly organized, externally managed, non-diversified, closed-end management investment company seeks to generate current income and, to a less extent, long-term capital appreciation. It invests in directly originated debt financings and syndicated and traded debt transactions. Investments will primarily be comprised of investments in senior secured loans and second-lien secured loans of private U.S. middle-market companies and, to a lesser extent, subordinated loans of private U.S. companies.

Michael C. Forman will lead the portfolio management team, which also includes Gerald F. Stahlecker, Zachary Klehr and Sean Coleman.

The company is offering up to 400 million common shares on a continuous basis at an initial offering price of $10.00 per share.

The sales load is 10%, and the base management fee is 3%. Total annual expenses are expected to be 6.2%.

Philadelphia-based FSIC III Advisor, LLC will be the investment adviser.

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