FS Credit Opportunities Corp. (FSCO) Declares Increased Distribution for June 2025

Rhea-AI Summary

FS Credit Opportunities Corp. (FSCO) announced a 5.1% increase in its monthly distribution for June 2025, setting it at $0.0678 per share, payable on June 30, 2025. This represents a 59.5% increase from the Fund's distribution at its NYSE listing in November 2022 and marks the fourth increase in 24 months. The Fund, with $2.2 billion in assets under management, currently offers an annualized distribution yield of 10.5% based on NAV and 10.7% based on market price as of May 30, 2025. FSCO has demonstrated strong performance with fully covered distributions through 2025 and generated year-to-date total returns of 7.2% on NAV and 10.8% on market price through May 30, 2025. The Fund specializes in event-driven credit, special situations, and non-traditional credit opportunities.

Positive

• Monthly distribution increased by 5.1% to $0.0678 per share
• 59.5% increase in distribution rate since NYSE listing in November 2022
• Strong annualized distribution yield of 10.5% based on NAV
• Monthly distributions fully covered by net investment income throughout 2025
• Positive year-to-date returns: 7.2% on NAV and 10.8% on market price

Negative

• None.

Insights

Fixed Income & Fund Analyst

FSCO's 5.1% dividend increase signals strong portfolio performance, pushing its annualized yield to 10.5-10.7% with distributions fully covered by investment income.

FS Credit Opportunities Corp has announced a 5.1% increase to its monthly distribution, bringing the June 2025 payout to $0.0678 per share. This marks the fourth distribution increase in 24 months and represents a substantial 59.5% rise from the fund's initial distribution when it listed on the NYSE in November 2022.

The increased distribution reflects exceptional performance in select investments that have outperformed expectations. The fund's new distribution level translates to an impressive annualized yield of 10.5% based on NAV and 10.7% based on market price as of May 30, 2025 – significantly higher than typical fixed income alternatives in the current market.

Importantly, FSCO's distributions have been fully covered by net investment income throughout 2025 on a tax basis, indicating sustainable payout levels without return of capital. The fund has generated strong year-to-date returns of 7.2% on NAV and 10.8% on market price through May 30, 2025.

With approximately $2.2 billion in assets under management, FSCO maintains a specialized investment approach focused on event-driven credit, special situations, private capital solutions, and non-traditional credit opportunities. This strategy has evidently delivered results in the current market environment.

This distribution increase demonstrates management's commitment to returning capital to shareholders while maintaining a disciplined investment approach. The statement from Andrew Beckman, Portfolio Manager, indicates ongoing assessment of distribution policies against market conditions, suggesting potential for further adjustments as market dynamics evolve.

PHILADELPHIA, June 9, 2025 /PRNewswire/ -- The Board of Directors of FS Credit Opportunities Corp. (the Fund or FSCO) (NYSE: FSCO) announced today an increase to the monthly distribution rate for June 2025. The June distribution will be paid on or about June 30, 2025, at $0.0678 per share, representing an increase of approximately 5.1% over the May distribution. Further information on the distribution is summarized in the charts below.

"We are pleased to announce an approximately 5.1% increase to FSCO's monthly distribution," said Andrew Beckman, Head of FS Investments' Global Credit business and Portfolio Manager for FSCO. "Our new monthly distribution rate of $0.0678 per share represents an increase of approximately 59.5% over the Fund's distribution at the time of listing on New York Stock Exchange in November 2022, and the fourth increase over the last twenty-four months. The distribution increase reflects strong income generation from select investments that have meaningfully outperformed expectations. This increase underscores our commitment to delivering value to shareholders through a disciplined, opportunistic investment approach and returning capital from income generation. We remain committed to actively monitoring market conditions, portfolio performance, and the broader macroeconomic environment and will continue to reassess our distribution policy to ensure it remains aligned with long-term shareholder interests as market dynamics evolve."

The current annualized distribution rate equates to an annualized distribution yield¹ of 10.5% and 10.7%, respectively, based on the Fund's net asset value (NAV) and market price as of May 30, 2025. The monthly distribution has been fully covered by the Fund's net investment income throughout 2025 on a tax basis, and the Fund has generated an estimated total return on NAV of 7.2% and 10.8% on market price year-to-date through May 30, 2025.

The Fund has approximately $2.2 billion in assets under management and invests in event-driven credit, special situations, private capital solutions and other non-traditional credit opportunities.

Month	Ticker	Fund Name		Monthly Dividend
June	FSCO	FS Credit Opportunities Corp.		$0.0678

The distribution will be made on the following schedule:

Month	Ex-Date	Record Date	Payable Date
June	June 23, 2025	June 23, 2025	June 30, 2025

The Fund pays regular monthly cash distributions to common shareholders at a level rate that may be adjusted from time to time. The amount of monthly distributions may be affected by numerous factors, including changes in portfolio and market conditions.

Shareholders should not use the information provided here in preparing their tax returns. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will tell them how to report these distributions for federal income tax purposes.

Investors should consider, among other things, the investment objectives, risks, charges and expenses of the Fund carefully before investing. Investors can find the Fund's most recent prospectus, reports and other filings on the Securities and Exchange Commission's EDGAR Database or on the Fund's website (https://fsinvestments.com/fs-credit-opportunities-corp/).

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 $82 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.

Contact Information:

Investor Relations
Josh Blum
josh.blum@fsinvestments.com 

Media
Marc Hazelton
media@fsinvestments.com

Forward Looking Statements
Statements included herein may constitute "forward-looking" statements as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to future events or the future performance or operations of the Fund. Words such as "intends," "will," "expects," and "may" 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. Factors that could cause actual results to differ materially include changes in the economy, geopolitical risks, risks associated with possible disruption to the Fund's operations or the economy generally due to hostilities, terrorism, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in the Fund's operating area, unexpected costs, the price at which the Fund's shares of common stock may trade on the New York Stock Exchange and such other factors that are disclosed in the Fund's filings with the Securities and Exchange Commission. The inclusion of forward-looking statements should not be regarded as a representation that any plans, estimates or expectations will be achieved. Any forward-looking statements speak only as of the date of this communication. Except as required by federal securities laws, the Fund undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

¹ Annualized distribution yield reflects the current month's distribution per share annualized and divided by the estimated current month end net asset value (NAV) per share or market price per share; because annualized distribution yield is based on estimated current month end NAV, it is an estimate that is subject to change.

 

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SOURCE FS Investments

FAQ

What is FSCO's new monthly distribution amount for June 2025?

FSCO's new monthly distribution for June 2025 is $0.0678 per share, representing a 5.1% increase from May.

What is FSCO's current annualized distribution yield?

FSCO's annualized distribution yield is 10.5% based on NAV and 10.7% based on market price as of May 30, 2025.

How has FSCO's distribution changed since its NYSE listing?

FSCO's distribution has increased by approximately 59.5% since its NYSE listing in November 2022, with four increases over 24 months.

What are FSCO's year-to-date returns as of May 2025?

FSCO has generated a total return of 7.2% on NAV and 10.8% on market price year-to-date through May 30, 2025.

When is FSCO's June 2025 distribution payable?

FSCO's June 2025 distribution is payable on June 30, 2025, with an ex-date and record date of June 23, 2025.