Company Overview - FS Credit Opportunities (FSCO) operates as a closed-end fund that generates earnings from a diverse portfolio of credit investments with varying levels of risk [1] - The fund focuses on credit investments, which are interesting due to their dependency on financial conditions and market dynamics [1] Investment Strategy - The fund employs a hybrid system that balances growth and income, aiming to capture a total return comparable to the S&P 500 [1] - The strategy includes a mix of classic dividend growth stocks, Business Development Companies (BDCs), Real Estate Investment Trusts (REITs), and Closed-End Funds (CEFs) to boost investment income [1] Analyst Perspective - The analyst specializes in uncovering investment opportunities, particularly in high-quality dividend stocks and assets with long-term growth potential [1] - The analyst emphasizes the importance of a diversified portfolio that includes various investment vehicles to achieve both income and growth objectives [1]

Group 1 - The article discusses the FS Credit Opportunities Corp. (NYSE: FSCO) closed-end fund, highlighting its appeal to income-oriented investors seeking high yield income for retirement [1] - The author emphasizes the importance of conducting thorough research and making informed long-term investment decisions, particularly after experiencing the Great Recession [1] - The focus is on dividend-paying income stocks and funds, including BDCs, REITs, CEFs, and ETFs, which are essential for increasing retirement income beyond traditional sources [1] Group 2 - The article reflects the author's personal investment philosophy, which is shaped by past experiences and a desire to understand market psychology alongside financial metrics [1] - There is a disclosure of a beneficial long position in FSCO shares, indicating a vested interest in the fund's performance [1]

Core Viewpoint - FS Credit Opportunities Corp. announced a 7.5% increase in its monthly distribution for January 2025, raising it to $0.0645 per share, which reflects a significant growth of approximately 51.8% since its listing in November 2022 [1][2]. Distribution Details - The January distribution will be paid on January 31, 2025, with an ex-date and record date of January 24, 2025 [4]. - The Fund has consistently covered its monthly distributions with net investment income throughout 2024 [2]. Financial Performance - The Fund's current annualized distribution yield is estimated at 10.1% based on net asset value (NAV) and 10.6% based on market price as of December 31, 2024 [2]. - The Fund has achieved a total return of 14.24% on NAV and 34.7% on market price year-to-date through December 31, 2024 [2]. Fund Overview - FS Credit Opportunities Corp. manages approximately $2.3 billion in assets, focusing on event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities [3]. - FS Investments, the parent company, manages over $82 billion in assets and provides a range of alternative asset classes and strategies [7].

Core Points - FS Credit Opportunities Corp. announced a monthly distribution of $0.06 per share for December 2024, payable on December 31, 2024 [1][3] - The current annualized distribution rate is 10.1% based on the Fund's net asset value (NAV) and 10.6% based on market price as of November 30, 2024 [2] - The Fund has generated a total return of 12.75% on NAV and 33.1% on market price year-to-date through November 30, 2024 [2] Fund Overview - FS Credit Opportunities Corp. manages approximately $2.2 billion in assets, focusing on event-driven credit, special situations, private capital solutions, and other non-traditional credit opportunities [3] - The Fund pays regular monthly cash distributions to common shareholders, which may be adjusted based on portfolio and market conditions [3] Distribution Schedule - The ex-date and record date for the December distribution is December 23, 2024, with the payment date set for December 31, 2024 [3]

Financial Data and Key Metrics Changes - The Fund delivered a net return of 3.35% based on NAV for Q3 2024, with a year-to-date net return of 12.31%, outperforming high yield bonds by approximately 430 basis points and loans by 580 basis points [9][10] - The Fund paid distributions of $0.18 per share in Q3 2024, fully covered by net investment income [12] - As of November 22, 2024, the Fund's annualized distribution yield was 10.3% based on NAV and 11.1% based on stock price [13] - Total return for FSCO shareholders was 2.6% in Q3 2024 and 27.4% year-to-date as of November 22, 2024 [14] Business Line Data and Key Metrics Changes - The Fund remained fully invested throughout Q3 2024, with purchases totaling approximately $270 million compared to sales and repayments of $233 million [24] - Approximately 59% of new investment activity was in privately originated investments, with 100% in first lien loans [26] - By asset type, 82% of the portfolio consisted of senior secured debt, while subordinated debt was 6% [26] Market Data and Key Metrics Changes - The US economy grew 5.5% in real terms since the Fed began raising interest rates in Q1 2022, with middle market companies showing an average revenue growth of nearly 13% as of June 2024 [16] - Privately originated senior loans returned 12.5% over the past year, marking the highest return outside of late 2020 and early 2021 [17] - High yield bonds returned 5.28%, outperforming senior secured loans by 324 basis points [19] - Loan defaults have risen to a 44-month high, while high yield bond default rates fell to a 26-month low as of the end of October [21] Company Strategy and Development Direction - The company focuses on businesses with strong cash flows and modest leverage profiles, investing in credits with appropriate loan-to-values [30][34] - The strategy includes leveraging the size and scale of FSCO to drive differentiated outcomes, with $2.2 billion in assets as of September 30, 2024 [35] - The company aims to dynamically allocate capital across public and private markets based on risk-return opportunities [37] Management's Comments on Operating Environment and Future Outlook - The management anticipates potential volatility driven by geopolitical conflicts and changes in US rates following the November election [29] - The portfolio is constructed to be durable over the long term, focusing on sectors with better downside protection and higher recoveries [30][34] - The management is cautious about making new investments due to tight credit spreads and weak covenants in the market [32] Other Important Information - Non-accruals are just under 3% of fair market value in the portfolio, consistent with historical levels [50] - The company successfully refinanced its leverage facility, reducing the term loan and revolver pricing [53] Q&A Session Summary Question: Insights on forward-looking dividend policy - The company will review its distribution policy based on the Fund's earnings profile, base rates, and credit spreads [42] Question: Relative value in private credit - Both private and public credit are tight, but private credit still offers a premium of 150 to 175 basis points [44] Question: Impact of weak covenants on deal volumes - Weak covenants are affecting the market, leading to increased scrutiny on transactions [45] Question: Future allocation in private credit - The company sees attractive opportunities in private credit due to spread premiums and significant dispersion [46] Question: Relative value subsectors in credit - Healthcare and media/entertainment are identified as sectors with potential for excess returns [47] Question: Macro environment outlook - Recent rate moves suggest base rates may remain higher, with a focus on floating rate assets in the portfolio [49] Question: Updates on non-accrual investments - Non-accruals are under 3% of fair market value, with one new non-accrual in LaserShip [50] Question: Fee structure relative to peers - The fee structure is justified by the nature of investments, with a significant portion in private credit [51] Question: Progress on refinancing capital structure - The company successfully refinanced its leverage facility, improving pricing and borrowing capacity [53]

Group 1 - FS Credit Opportunities Corp. (NYSE: FSCO) is a closed-end fund that is classified as "non-diversified," indicating a heavy concentration in a single sub-asset within fixed income [1] - The fund is primarily invested in senior secured debt, which is considered risky [1]

PHILADELPHIA, Nov. 4, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for November 2024. The distribution of $0.06 per share will be paid on November 29, 2024. Further information on the distribution is summarized in the charts below.The current annualized distribution rate equates to an annualized distribution yield1 of 10.1% and 10.8%, respectively, based on the Fund's net asset value (NAV) and market price as of Octob ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): October 23, 2024 FS CREDIT OPPORTUNITIES CORP. (Exact name of Registrant as specified in its charter) | --- | --- | --- | |-------------------------------------------------------------------|----------------------------------------|-----------------------------------------------------| | | | | ...

PHILADELPHIA, Oct. 23, 2024 /PRNewswire/ -- FS Credit Opportunities Corp. (NYSE: FSCO) today announced plans to host a conference call at 9:00 a.m. (Eastern Time) on Tuesday, November 26, 2024, to discuss its third quarter 2024 results. All interested parties are welcome to participate and can access the call by registering using the following URL: https://event.on24.com/wcc/r/4753878/A077B5151E85D48D1BA7EF6016E81021.Participants are requested to register a day in advance or at a minimum 15 minutes before t ...

PHILADELPHIA, Oct. 9, 2024 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund) (NYSE: FSCO) announced the monthly distribution for October 2024. The distribution of $0.06 per share will be paid on October 31, 2024. Further information on the distribution is summarized in the charts below. The current annualized distribution rate equates to an annualized distribution yield1 of 10.0% and 11.3%, respectively, based on the Fund's net asset value (NAV) and market price as of Septem ...