FS Investment subsidiary extends, amends total return swap for loans

By Angela McDaniels

Tacoma, Wash., July 1 – FS Investment Corp. III subsidiary Center City Funding LLC amended and restated the confirmation letter agreement governing its total return swap for senior secured floating-rate loans with Citibank, NA, according to an 8-K filing with the Securities and Exchange Commission.

The following changes were made under the June 27 amendment and restatement:

• The date that Citibank may terminate the swap changed from any time on or after June 26, 2016 to any time on or after June 27, 2017;

• The swap spread over one-month Libor Center City Funding pays to Citibank on the unused notional amount under the swap was increased to 155 basis points from 150 bps; and

• One of the portfolio criteria was modified to exclude the impact of the ratings of specified excepted loans added to the swap with the approval of Citibank.

FS Investment is a business development company based in Philadelphia.

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