UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event
reported):
(Exact name of Registrant as specified in its charter)
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(I.R.S. Employer Identification No.) |
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Registrant’s telephone number, including area code:
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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| Item 8.01. | Other Events. |
On July 31, 2023, the board of trustees (the “Board”) of FS Credit Income Fund (the “Fund”) approved an increase to the monthly distribution amount for each class of common shares of beneficial interest of the Fund for the month of August.
The annualized distribution rate for Class I shares will increase to 8.15% based on the net asset value (“NAV”) per Class I share as of July 31, 2023, representing an approximate 10.45% increase to the distribution rate for Class I shares.
The annualized distribution rate for Class A shares will increase to 7.92% based on the NAV per Class A share as of July 31, 2023, representing an approximate 10.82% increase.
The annualized distribution rate for Class T shares will increase to 7.66% based on the NAV per Class T share as of July 31, 2023, representing an approximate 11.21% increase.
The annualized distribution rate for Class U shares will increase to 7.43% based on the NAV per Class U share as of July 31, 2023, representing an approximate 11.63% increase.
The annualized distribution rate for Class U-2 shares will increase to 7.37% based on the NAV per Class U-2 share as of July 31, 2023, representing an approximate 11.64% increase.
The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of the Board.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| EXHIBIT NUMBER | ||
| Exhibit 99.1 | Press Release, dated August 14, 2023 | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FS Credit Income Fund | ||
| Date: August 14, 2023 | By: |
/s/ Stephen Sypherd |
| Stephen Sypherd | ||
| General Counsel | ||
Exhibit 99.1
FS Credit Income Fund Announces Second Distribution Rate Increase in 2023
PHILADELPHIA, August 14, 2023 – FS Investments, a leading alternative asset manager with over $75 billion in assets under management, today announced that FS Credit Income Fund will increase its distribution for all share classes. The increase will be effective with the payment of the monthly distribution on or about August 31, 2023. FS Credit Income Fund, or the Fund, is an alternative credit strategy sub-advised by GoldenTree Asset Management, an employee-owned asset management firm with approximately $51 billion in assets under management and a 23-plus-year track record.
The annualized distribution rate for Class I shares will increase to 8.15% based on the NAV per Class I share as of July 31, 2023, representing an approximate 10.45% increase to the distribution rate for Class I shares.1 This is the Fund’s second distribution rate increase of 2023 and the total increase YTD is approximately 29%. The Fund changed its distribution schedule from quarterly to monthly, effective with the July distribution. More information regarding the distribution rate increase can be found in the Form 8-K filed on August 14, 2023.
“FS Credit Income Fund’s strong performance since inception highlights the benefits of the Fund’s dynamic strategy investing across public and private markets,” said Michael Forman, Chairman and CEO of FS Investments. “Since our founding, FS Investments has strived to deliver innovative alternative solutions to address the challenges in building diversified portfolios. We are pleased to deliver enhanced income to our shareholders and access to areas of the credit market that are typically outside the reach of many traditional credit funds.”
Lee Kruter, Partner and Head of Performing Credit at GoldenTree, noted “GoldenTree has a long history of dynamically allocating across a diverse universe of credit instruments. The market opportunity today remains one of the most interesting we’ve seen over the last decade. We continue to seek high quality investments that offer attractive levels of current income and compelling total return potential.”
FS Credit Income Fund invests across a broad universe of high-yielding asset classes, sectors and capital structures to capture the best relative value opportunities in event-driven and opportunistic credit to seek to generate an attractive level of income and capital appreciation.
The Fund leverages GoldenTree’s deep credit expertise to invest in performing credit opportunities that are often outside the scope of traditional, liquid strategies and market indexes, including structured credit, non-rated assets, issuers outside of the U.S and other idiosyncratic opportunities. The Fund’s dynamic and flexible approach capitalizes on dislocations across market environments, driving attractive outperformance to index-constrained credit strategies.
1 The annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the most recent monthly cash distribution per Class I share declared as of the date indicated, without compounding), divided by the fund’s net asset value per Class I share as of the date indicated. The annualized distribution rate shown may be rounded. The payment of future distributions on FS Credit Income Fund’s common shares is subject to the discretion of FS Credit Income Fund’s board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. The determination of the tax attributes of FS Credit Income Fund’s distributions is made annually at the end of the calendar year, and a determination made on an interim basis may not be representative of the actual tax attributes of FS Credit Income Fund’s distributions for a full year. The actual tax characteristics of distributions to shareholders are reported to shareholders annually on Form 1099-DIV. The Fund may pay distributions in significant part from sources that may not be available in the future and that are unrelated to the Fund’s performance, such as return of capital or borrowings. For the 12 months ended June 30, 2023, 100% of FS Credit Income Fund’s distributions were funded through ordinary income.
About FS Investments
FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over $75 billion in assets for a wide range of clients, including institutional investors, financial professionals and individual investors. FS Investments provides access to a broad suite of alternative asset classes and strategies through its best-in-class investment teams and partners. With its diversified platform and flexible capital solutions, the firm is a valued partner to general partners, asset owners and portfolio companies. FS Investments is grounded in its high-performance culture and guided by its commitment to building value for its clients, investing in its colleagues and giving back to its communities. The firm has more than 500 employees across offices in the U.S, Europe and Asia and is headquartered in Philadelphia.
About GoldenTree Asset Management
GoldenTree is a 100% employee-owned, global asset management firm that specializes in opportunities across the credit universe in sectors such as high yield bonds, leveraged loans, private credit, distressed debt, structured products, emerging markets, private equity and credit-themed equities. GoldenTree was founded in 2000 by Steve Tananbaum and is one of the largest independent, global credit asset managers. GoldenTree manages approximately $51 billion for institutional investors, including leading public and corporate pensions, endowments, foundations, insurance companies and sovereign wealth funds. GoldenTree has over 290 employees, with offices in New York, West Palm Beach, Charlotte, Newport Beach, London, Dublin, Singapore, Sydney, Tokyo and Dubai. For more information, please visit www.goldentree.com.
Contact Information
Melanie Hemmert
media@fsinvestments.com
Forward-Looking Statements and Important Disclosures
This press release may contain certain forward-looking statements, including statements with regard to the future performance or operations of FS Credit Income Fund. Words such as “believes,” “expects,” “projects,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings the Fund makes with the U.S. Securities and Exchange Commission. The Fund undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The Fund’s investment objective is to provide attractive total returns, which will include current income and capital appreciation. There can be no assurance that the Fund will be able to achieve its investment objective.
An investment in the Fund involves a high degree of risk and may be considered speculative. Investors are advised to consider the investment objectives, risk and charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other information about the Fund. Investors may obtain a copy of the Fund’s prospectus free of charge at www.fsinvestments.com or by contacting FS Investments at 201 Rouse Blvd., Philadelphia, PA 19112 or by phone at 877-628-8575. Investors should read and carefully consider all information found in the Fund’s prospectus and other reports filed with the U.S. Securities and Exchange Commission before investing.
Securities offered through ALPS Distributors, Inc. (1290 Broadway, Suite 1000, Denver, CO 80203, member FINRA), the distributor of the Fund. FS Investment Solutions, LLC is an affiliated broker-dealer that serves as the exclusive wholesale marketing agent for the Fund. FS Investment Solutions, LLC and ALPS Distributors, Inc. are not affiliated.
Cover |
Jul. 31, 2023 |
|---|---|
| Cover [Abstract] | |
| Document Type | 8-K |
| Amendment Flag | false |
| Document Period End Date | Jul. 31, 2023 |
| Entity File Number | 811-23221 |
| Entity Registrant Name | FS CREDIT INCOME FUND |
| Entity Central Index Key | 0001688897 |
| Entity Tax Identification Number | 81-4285943 |
| Entity Incorporation, State or Country Code | DE |
| Entity Address, Address Line One | 201 Rouse Boulevard |
| Entity Address, City or Town | Philadelphia |
| Entity Address, State or Province | PA |
| Entity Address, Postal Zip Code | 19112 |
| City Area Code | (215) |
| Local Phone Number | 495-1150 |
| Written Communications | false |
| Soliciting Material | false |
| Pre-commencement Tender Offer | false |
| Pre-commencement Issuer Tender Offer | false |
| Entity Emerging Growth Company | false |
| Entity Information, Former Legal or Registered Name | None |
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