other material
confidence high
sentiment neutral
materiality 0.40
FS Credit Opportunities enters $50M equity total return swap with Nomura via affiliated fund FSEP
FS Credit Opportunities Corp.
- FSEP obtained economic benefit of up to $50M of FSCO common shares via swap with Nomura.
- Swap term is three years; early termination possible under certain events.
- FSEP's adviser is majority-owned by Franklin Square Holdings, which also controls FSCO's adviser.
- FSEP pays interest-type payments to Nomura in exchange for share exposure without direct ownership.
- Transaction enables FSEP to gain FSCO exposure without acquiring shares outright.