Q2 2025 earnings call
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, 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 are presentation 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.
FS Credit Opportunities Corp.(“FSCO” or the “Company”) is a non-diversified, closed-end management investment company that carries out the investment strategies generally described herein. An investment in FSCO involves a high degree of risk and maybe considered speculative. The following are some of the risks an investment in the shares of common stock of the Company (the “Shares”) involves; however, investors should carefully consider all of the risks discussed in FSCO’s prospectus and reports filed with the U.S. Securities and Exchange Commission (the “SEC”) before deciding to invest in the Shares. Investors may obtain a copy of these filings free of charge at www.futurestandard.com or by contacting Future Standard at 201 Rouse Boulevard, Philadelphia, PA 19112 or by phone at 877-628-8575.
- Shareholders of the Company (the“Shareholders”) should consider that an investment in the Shares may result in loss in principal.
- When a Shareholder sells theirShares, the Shareholder may receive less than their purchase price and the then-current net asset value (“NAV”) per Share.
- Shares of closed-end funds frequently trade at a discount to NAV. This risk is separate and distinct from the risk that FSCO’s NAV will decrease.
- FSCO’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available toFSCO for investment. Any capital returned to Shareholders through distributions will be distributed after payment of fees and expenses, as well as the sales load.
- Senior secured debt is backed by a borrower’s assets or cash flows and has the highest repayment priority.However, rising interest rates can increase loan defaults, and there’s no guarantee of full repayment after a default, especially if collateral values drop. Additionally, security for these investments may not be recognized if required filings are not made, which may affect priority over other creditors.
- FSCO’s investments in securities and other obligations of companies that are experiencing distress involve a substantial degree of risk, require a high level of analytical sophistication for successful investment and require active monitoring.
- FSCO’s investments in various types of debt securities and instruments may be secured, unsecured, rated or unrated, are subject to non-payment risk, and may be speculative in nature.
- FSCO may invest in subordinated debt, which is subordinated in payment and/or lower in lien priority relative to first lien holders, and in the event of a default on such subordinated debt, first lien holders would have a first claim to the underlying collateral.
- Below investment grade instruments (commonly referred to as “high yield” securities or “junk bonds”)may be particularly susceptible to economic recessions or downturns, which could cause losses.
- FSCO may invest in illiquid and restricted securities that may be difficult to dispose of at a fair price.
- FSCO’s use of leverage could result in special risks for the Shareholders and can magnify the effect of any losses.
- Investments in certain securities or other instruments of non-U.S. issuers or borrowers may involve factors not typically associated with investing in the United States or other developed countries.
- Securities or other instruments of non-U.S. securities may be traded in underdeveloped, inefficient and less liquid markets and may experience greater price volatility, illiquidity and changes in value.
- FS Global Advisor, LLC and certain of its affiliates may experience conflicts of interest in connection with the management of FSCO.
- FSCO seeks to achieve its investment objectives by focusing on a limited number of opportunities across the investment universe.
- Uncertainty with respect to legislation, regulation and government policy at the federal, state and local levels could adversely affect FSCO’s business, financial condition, operating results and cash flows.
- Certain local, regional or global events such as war (including Russia’s invasion of Ukraine and conflicts in theMiddle East, acts of terrorism, the spread of infectious illnesses and/or other public health issues, or other events may have a significant impact on a security or instrument and may adversely affect the performance of FSCO’s investments and FSCO.
- Elevated levels of inflation, andFederal Reserve rate increases to control inflation, Furthermore, a reduction in interest rates may result in both lower interest rates on new investments and higher repayments on current investments with high interest rates, which may have an adverse impact on FSCO’s investments and FSCO.
- Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside FSCO’s control.
- Future economic recessions or downturns could impair our portfolio companies and harm our operating results.
- Recent technological advances in artificial intelligence, and the use of artificial intelligence by third-party service providers or any counterparties, pose risks to FSCO and FSCO’s investments.
- Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with FSCO’s consolidated financial statements prepared in accordance with GAAP.