UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2013.

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00757

FS Investment Corporation

(Exact name of registrant as specified in its charter)

Maryland	26-1630040
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Cira Centre

2929 Arch Street, Suite 675

Philadelphia, Pennsylvania 19104

(Address of principal executive office)

(215) 495-1150

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for shorter period that the registrant was required to submit and post such files).    Yes  ¨    No  ¨.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x.

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The issuer had 257,448,160 shares of common stock outstanding as of October 29, 2013.

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS		1
	Consolidated Balance Sheets as of September 30, 2013 (Unaudited) and December 31, 2012		1
	Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2013 and 2012		2
	Unaudited Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2013 and 2012		3
	Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2013 and 2012		4
	Consolidated Schedules of Investments as of September 30, 2013 (Unaudited) and December 31, 2012		5
	Notes to Unaudited Consolidated Financial Statements		26
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		52
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		80
ITEM 4.	CONTROLS AND PROCEDURES		81
PART II—OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS		82
ITEM 1A.	RISK FACTORS		82
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		82
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES		82
ITEM 4.	MINE SAFETY DISCLOSURES		82
ITEM 5.	OTHER INFORMATION		82
ITEM 6.	EXHIBITS		83
	SIGNATURES		88

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FS Investment Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	September 30, 2013 (Unaudited)		December 31, 2012
Assets
Investments, at fair value (amortized cost—$4,132,160 and $3,825,244, respectively)	$	4,200,801	$	3,934,722
Cash		290,439		338,895
Receivable for investments sold and repaid		85,341		20,160
Interest receivable		51,075		44,711
Deferred financing costs		5,757		7,735
Prepaid expenses and other assets		172		530
Total assets	$	4,633,585	$	4,346,753
Liabilities
Payable for investments purchased	$	44,648	$	79,420
Credit facilities payable		986,421		973,046
Repurchase agreement payable(1)		906,083		676,667
Stockholder distributions payable		17,939		17,003
Management fees payable		22,808		21,507
Accrued capital gains incentive fees(2)		27,339		39,751
Subordinated income incentive fees payable(2)		16,555		13,393
Administrative services expense payable		1,361		947
Interest payable		10,545		10,242
Directors’ fees payable		229		—
Other accrued expenses and liabilities		1,967		3,039
Total liabilities		2,035,895		1,835,015
Stockholders’ equity
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding		—		—
Common stock, $0.001 par value, 450,000,000 shares authorized, 257,190,300 and 251,890,821 shares issued and outstanding, respectively		257		252
Capital in excess of par value		2,451,662		2,397,826
Accumulated undistributed net realized gains on investments and gain/loss on foreign currency(3)		5,014		—
Accumulated undistributed (distributions in excess of) net investment income(3)		72,116		4,307
Net unrealized appreciation (depreciation) on investments and gain/loss on foreign currency		68,641		109,353
Total stockholders’ equity		2,597,690		2,511,738
Total liabilities and stockholders’ equity	$	4,633,585	$	4,346,753
Net asset value per share of common stock at period end	$	10.10	$	9.97

(1) See Note 8 for a discussion of the Company’s repurchase transaction.

(2) See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income incentive fees.

(3) See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

1

FS Investment Corporation

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Investment income
Interest income	$	109,886		$	82,011		$	317,603		$	191,382
Fee income		11,975			2,004			30,181			6,166
Dividend income		1,446			—			9,916			56
Total investment income		123,307			84,015			357,700			197,604
Operating expenses
Management fees		22,720			19,021			67,541			46,570
Capitals gains incentive fees(1)		(1,548	)		17,421			(621	)		33,920
Subordinated income incentive fees(1)		16,555			—			47,950			—
Administrative services expenses		1,243			1,782			4,034			4,116
Stock transfer agent fees		610			910			2,400			2,731
Accounting and administrative fees		343			280			1,063			1,126
Interest expense		13,098			7,744			37,110			18,271
Directors’ fees		241			212			689			633
Other general and administrative expenses		2,273			1,889			4,978			4,066
Total operating expenses		55,535			49,259			165,144			111,433
Net investment income		67,772			34,756			192,556			86,171
Realized and unrealized gain/loss
Net realized gain (loss) on investments		6,602			10,259			37,220			14,853
Net realized gain (loss) on total return swap(2)		—			9,729			—			19,596
Net realized gain (loss) on foreign currency		70			521			(32	)		534
Net change in unrealized appreciation (depreciation) on investments		(14,857	)		69,216			(40,837	)		126,095
Net change in unrealized appreciation (depreciation) on total return swap(2)		—			(2,453	)		—			1,996
Net change in unrealized gain (loss) on foreign currency		30			(261	)		125			—
Total net realized and unrealized gain (loss) on investments		(8,155	)		87,011			(3,524	)		163,074
Net increase (decrease) in net assets resulting from operations	$	59,617		$	121,767		$	189,032		$	249,245
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)	$	0.23		$	0.49		$	0.75		$	1.13
Weighted average shares outstanding		256,108,444			248,310,640			254,322,277			219,768,484

(1) See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the capital gains incentive fees and subordinated income incentive fees.

(2) On August 29, 2012, the Company terminated its total return swap agreement with Citibank, N.A.

See notes to unaudited consolidated financial statements.

2

FS Investment Corporation

Unaudited Consolidated Statements of Changes in Net Assets

(in thousands)

	Nine Months Ended September 30,
	2013			2012
Operations
Net investment income	$	192,556		$	86,171
Net realized gain (loss) on investments, total return swap and foreign currency(1)		37,188			34,983
Net change in unrealized appreciation (depreciation) on investments		(40,837	)		126,095
Net change in unrealized appreciation (depreciation) on total return swap(1)		—			1,996
Net change in unrealized gain (loss) on foreign currency		125			—
Net increase (decrease) in net assets resulting from operations		189,032			249,245
Stockholder distributions(2)
Distributions from net investment income		(124,747	)		(128,781	)
Distributions from net realized gain on investments		(32,174	)		(18,296	)
Net decrease in net assets resulting from stockholder distributions		(156,921	)		(147,077	)
Capital share transactions
Issuance of common stock		—			803,348
Reinvestment of stockholder distributions		80,950			72,417
Repurchases of common stock		(27,109	)		(11,670	)
Offering costs		—			(3,234	)
Net increase in net assets resulting from capital share transactions		53,841			860,861
Total increase in net assets		85,952			963,029
Net assets at beginning of period		2,511,738			1,498,892
Net assets at end of period	$	2,597,690		$	2,461,921
Accumulated undistributed (distributions in excess of) net investment income(2)	$	72,116		$	(41,326	)

(1) On August 29, 2012, the Company terminated its total return swap agreement with Citibank, N.A.

(2) See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

3

FS Investment Corporation

Unaudited Consolidated Statements of Cash Flows

(in thousands)

	Nine Months Ended September 30,
	2013			2012
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	189,032		$	249,245
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:
Purchases of investments		(2,204,560	)		(2,837,344	)
Paid-in-kind interest		(5,437	)		(2,432	)
Proceeds from sales and repayments of investments		1,974,977			937,138
Net realized (gain) loss on investments		(37,220	)		(14,853	)
Net change in unrealized (appreciation) depreciation on investments		40,837			(126,095	)
Net change in unrealized (appreciation) depreciation on total return swap(1)		—			(1,996	)
Accretion of discount		(34,676	)		(12,674	)
Amortization of deferred financing costs		1,978			1,192
(Increase) decrease in due from counterparty		—			69,684
(Increase) decrease in receivable for investments sold and repaid		(65,181	)		(97,234	)
(Increase) decrease in interest receivable		(6,364	)		(31,302	)
(Increase) decrease in receivable due on total return swap(1)		—			548
(Increase) decrease in prepaid expenses and other assets		358			250
Increase (decrease) in payable for investments purchased		(34,772	)		134,273
Increase (decrease) in management fees payable		1,301			9,542
Increase (decrease) in accrued capital gains incentive fees		(12,412	)		33,920
Increase (decrease) in subordinated income incentive fees payable		3,162			—
Increase (decrease) in administrative services expense payable		414			1,455
Increase (decrease) in interest payable		303			3,186
Increase (decrease) in directors’ fees payable		229			16
Increase (decrease) in other accrued expenses and liabilities		(1,072	)		412
Net cash used in operating activities		(189,103	)		(1,683,069	)
Cash flows from financing activities
Issuance of common stock		—			803,348
Reinvestment of stockholder distributions		80,950			72,417
Repurchases of common stock		(27,109	)		(11,670	)
Offering costs		—			(3,234	)
Stockholder distributions		(155,985	)		(140,752	)
Borrowings under credit facilities(2)		13,375			645,130
Borrowings under repurchase agreement(3)		229,416			307,381
Deferred financing costs paid		—			(9,088	)
Net cash provided by financing activities		140,647			1,663,532
Total increase (decrease) in cash		(48,456	)		(19,537	)
Cash at beginning of period		338,895			210,714
Cash at end of period	$	290,439		$	191,177
Supplemental disclosure
Local and excise taxes paid	$	1,298		$	761

(1) On August 29, 2012, the Company terminated its total return swap agreement with Citibank, N.A.

(2) See Note 8 for a discussion of the Company’s credit facilities. During the nine months ended September 30, 2013 and 2012, the Company paid $17,844 and $6,104, respectively, in interest expense on the credit facilities.

(3) See Note 8 for a discussion of the Company’s repurchase transaction. During the nine months ended September 30, 2013 and 2012, the Company paid $16,985 and $7,789, respectively, in interest expense pursuant to the repurchase agreement.

See notes to unaudited consolidated financial statements.

4

FS Investment Corporation

Unaudited Consolidated Schedule of Investments

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Senior Secured Loans—First Lien—82.7%
A.P. Plasman Inc.	(f)(h)(j)	Capital Goods	L+850	1.5%	12/29/16	$	50,629	$	49,913	$	52,401
AccentCare, Inc.	(d)	Health Care Equipment & Services	L+500	1.5%	12/22/16		2,017		1,859		1,251
Alcatel-Lucent USA Inc.	(d)(e)(j)	Technology Hardware & Equipment	L+475	1.0%	1/30/19		8,159		8,121		8,232
Amaya Holdings Corp.	(d)(h)(j)	Consumer Services	L+775	1.3%	11/5/15		24,063		23,799		24,183
American Racing and Entertainment, LLC	(f)	Consumer Services	L+700		6/30/14		14,000		14,000		14,000
American Racing and Entertainment, LLC	(f)	Consumer Services	9.0%		6/30/14		7,750		7,750		7,808
Ardent Medical Services, Inc.	(d)(e)	Health Care Equipment & Services	L+525	1.5%	5/23/18		8,425		8,350		8,477
Aspect Software, Inc.	(d)	Software & Services	L+525	1.8%	5/6/16		6,518		6,376		6,545
Attachmate Corp.	(d)(e)	Software & Services	L+575	1.5%	11/22/17		10,617		10,450		10,657
Audio Visual Services Group, Inc.	(d)	Technology Hardware & Equipment	L+550	1.3%	11/9/18		3,958		3,970		4,017
Avaya Inc.	(d)(e)	Technology Hardware & Equipment	L+450		10/26/17		8,934		8,239		8,020
Avaya Inc.	(d)	Technology Hardware & Equipment	L+675	1.3%	3/31/18		14,870		14,938		14,119
Barrington Broadcasting Group LLC	(f)	Media	L+600	1.5%	6/14/17		2,323		2,275		2,325
BlackBrush TexStar L.P.	(d)(f)	Energy	L+650	1.3%	6/4/19		14,214		14,079		14,427
Boomerang Tube, LLC	(d)(h)	Energy	L+950	1.5%	10/11/17		19,122		18,631		18,644
Burleigh Point, Ltd.	(f)(g)(j)	Retailing	12.0%		12/31/13		112,000		109,998		114,106
Bushnell Inc.	(d)	Consumer Durables & Apparel	L+425	1.5%	8/24/15		7,581		7,403		7,602
Caesars Entertainment Operating Co.	(d)(e)(f)(j)	Consumer Services	L+425		1/26/18		19,302		17,057		17,213
Capital Vision Services, LLC	(f)(h)	Health Care Equipment & Services	L+725	1.3%	12/3/17		17,067		17,067		17,323
Capital Vision Services, LLC		Health Care Equipment & Services	1.0%		12/3/17		2,804		2,804		2,846
Cenveo Corp.	(d)	Commercial & Professional Services	L+500	1.3%	2/13/17		3,949		3,931		3,980
Citgo Petroleum Corp.	(e)(j)	Energy	L+600	2.0%	6/24/15		2,661		2,679		2,691
Citgo Petroleum Corp.	(e)(f)(j)	Energy	L+700	2.0%	6/23/17		7,593		7,579		7,764
Clear Channel Communications, Inc.	(d)(e)(f)	Media	L+365		1/29/16		19,927		16,786		18,824
Clover Technologies Group, LLC	(d)	Commercial & Professional Services	L+550	1.3%	5/7/18		6,359		6,329		6,365
Collective Brands, Inc.	(d)(f)	Consumer Durables & Apparel	L+600	1.3%	10/9/19		12,814		12,751		12,814
Corel Corp.	(d)(f)(h)(j)	Software & Services	L+825		6/7/19		118,500		118,500		119,685
Corel Corp.	(j)	Software & Services	Prime+725		6/7/18		10,000		10,000		10,000
Corner Investment PropCo, LLC	(d)(f)(j)	Consumer Services	L+975	1.3%	11/2/19		24,000		23,566		24,600
CoSentry.Net, LLC	(g)(h)	Software & Services	L+800	1.3%	7/24/19		30,000		30,000		30,000
Crestwood Holdings LLC	(d)	Energy	L+600	1.0%	6/19/19		5,803		5,775		5,923
DAE Aviation Holdings, Inc.	(h)(j)	Capital Goods	L+500	1.3%	11/2/18		1,876		1,843		1,891
Dent Wizard International Corp.	(d)(f)(g)(h)	Commercial & Professional Services	L+800		4/25/19		138,542		137,250		138,542
Dent Wizard International Corp.		Commercial & Professional Services	L+425		4/25/19		15,000		15,000		15,000
Drumm Investors LLC	(d)	Health Care Equipment & Services	L+375	1.3%	5/4/18		2,920		2,822		2,805

See notes to unaudited consolidated financial statements.

5

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Eastman Kodak Co.	(d)(j)	Consumer Durables & Apparel	L+625	1.0%	9/3/19	$	10,882	$	10,666	$	10,825
Education Management LLC	(f)(j)	Consumer Services	L+400		6/1/16		3,946		3,353		3,706
Education Management LLC	(e)(j)	Consumer Services	L+700	1.3%	3/29/18		15,740		15,678		15,478
ERC Ireland Holdings Ltd.	(j)	Telecommunication Services	EURIBOR+300, 1.0% PIK		9/30/17	€	11,269		11,186		15,224
FairPoint Communications, Inc.	(d)(e)	Telecommunication Services	L+625	1.3%	2/14/19	$	21,766		21,564		21,967
Flanders Corp.	(f)(h)	Capital Goods	L+950	1.5%	5/14/18		38,393		37,622		39,256
Fleetgistics Holdings, Inc.	(f)	Transportation	L+588	2.0%	3/23/15		1,760		1,751		1,654
Florida Gaming Centers, Inc.	(f)	Consumer Services	16.5%		4/25/16		12,848		12,710		13,105
Fram Group Holdings Inc.	(d)	Automobiles & Components	L+500	1.5%	7/29/17		1,944		1,912		1,913
Gymboree Corp.	(d)	Consumer Durables & Apparel	L+350	1.5%	2/23/18		3,702		3,505		3,587
Halifax Media Holdings LLC	(f)(h)	Media	L+1050	0.8%	6/30/16		4,200		4,132		4,326
HBC Solutions, Inc.	(d)(f)(g)(h)	Media	L+875	1.5%	2/4/18		84,871		84,871		84,871
Ikaria Acquisition Inc.	(d)	Pharmaceuticals, Biotechnology & Life Sciences	L+600	1.3%	7/3/18		5,872		5,787		5,909
ILC Industries, LLC	(d)(h)	Capital Goods	L+650	1.5%	7/11/18		9,865		9,701		9,668
Infiltrator Systems, Inc.	(f)(g)(h)	Capital Goods	L+843	1.3%	6/27/18		170,000		170,000		170,000
Infiltrator Systems, Inc.		Capital Goods	Prime+625		6/27/18		30,000		30,000		30,000
Infogroup Inc.	(d)	Software & Services	L+600	1.5%	5/25/18		3,004		2,686		2,709
Insight Equity A.P. X, L.P.	(f)(g)(h)	Household & Personal Products	L+850	1.0%	10/26/18		65,000		63,884		66,300
Intralinks, Inc.	(f)(j)	Software & Services	L+425	1.5%	6/15/14		1,025		976		1,025
inVentiv Health, Inc.	(d)	Health Care Equipment & Services	L+600	1.5%	8/4/16		1,066		1,008		1,034
inVentiv Health, Inc.	(e)	Health Care Equipment & Services	L+625	1.5%	5/15/18		2,725		2,707		2,669
Lantiq Deutschland GmbH	(f)(j)	Software & Services	L+900	2.0%	11/16/15		12,105		11,447		11,076
Larchmont Resources, LLC	(d)	Energy	L+725	1.0%	8/7/19		11,115		11,006		11,129
Leading Edge Aviation Services, Inc.	(d)(g)(h)	Capital Goods	L+850	1.5%	4/5/18		26,103		25,683		26,103
Leading Edge Aviation Services, Inc.	(g)	Capital Goods	L+850	1.5%	4/5/18		10,000		10,000		10,000
Leedsworld Inc.	(d)	Retailing	L+450	1.3%	6/27/19		9,791		9,697		9,754
Maritime Telecommunications Network, Inc.	(f)	Telecommunication Services	L+600	1.5%	3/3/16		4,109		4,077		3,636
McGraw-Hill Global Education Holdings, LLC	(d)(e)	Media	L+775	1.3%	3/22/19		20,729		20,146		21,014
MetoKote Corp.	(h)	Materials	L+800	1.3%	9/30/19		20,000		20,000		20,000
MetoKote Corp.		Materials	L+800	1.3%	9/30/19		3,810		3,810		3,810
Micronics, Inc.	(d)(h)	Capital Goods	L+800	1.3%	3/28/19		22,885		22,458		22,885
MMI International Ltd.	(d)(j)	Technology Hardware & Equipment	L+600	1.3%	11/2/18		10,891		10,580		10,564

See notes to unaudited consolidated financial statements.

6

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
MMM Holdings, Inc.	(h)	Health Care Equipment & Services	L+825	1.5%	12/12/17	$	12,430	$	12,217	$	12,508
MModal Inc.	(d)	Health Care Equipment & Services	L+625	1.3%	8/15/19		7,182		7,065		7,015
Mood Media Corp.	(d)(j)	Media	L+550	1.5%	5/7/18		3,022		2,996		3,032
MSO of Puerto Rico, Inc.	(h)	Health Care Equipment & Services	L+825	1.5%	12/12/17		9,040		8,886		9,097
National Mentor Holdings, Inc.	(d)	Health Care Equipment & Services	L+525	1.3%	2/9/17		4,942		4,942		5,000
National Vision, Inc.	(d)	Health Care Equipment & Services	L+575	1.3%	8/2/18		4,740		4,749		4,764
NCO Group, Inc.	(e)(h)	Software & Services	L+675	1.3%	4/3/18		11,565		11,379		11,796
New HB Acquisition, LLC	(d)	Food, Beverage & Tobacco	L+550	1.3%	4/9/20		3,896		3,859		4,007
Nova Wildcat Amerock, LLC	(h)	Consumer Durables & Apparel	L+825	1.3%	9/10/19		20,000		20,000		20,000
Panda Sherman Power, LLC	(d)(f)	Energy	L+750	1.5%	9/14/18		9,273		9,200		9,412
Panda Temple Power, LLC (TLA)	(f)	Energy	L+700	1.5%	7/17/18		3,000		3,000		3,066
Patheon Inc.	(d)(j)	Pharmaceuticals, Biotechnology & Life Sciences	L+600	1.3%	12/6/18		10,182		9,905		10,283
Pelican Products, Inc.	(d)	Capital Goods	L+550	1.5%	7/11/18		2,950		2,925		2,948
Princeton Review, Inc.	(g)	Consumer Services	L+550	1.5%	12/7/14		1,097		1,038		905
Protection One, Inc.	(d)	Consumer Services	L+325	1.0%	3/21/19		1,527		1,531		1,537
PRV Aerospace, LLC	(d)	Capital Goods	L+525	1.3%	5/9/18		4,939		4,929		4,961
RBS Holding Co. LLC	(d)	Commercial & Professional Services	L+800	1.5%	3/23/17		9,782		6,183		3,619
Reddy Ice Holdings, Inc.	(d)	Food & Staples Retailing	L+550	1.3%	5/1/19		1,185		1,173		1,183
Roundy’s Supermarkets, Inc.	(d)(j)	Food & Staples Retailing	L+450	1.3%	2/13/19		2,754		2,640		2,704
Safariland, LLC	(d)(f)(h)	Capital Goods	L+800	1.3%	9/20/19		158,400		158,400		158,400
SESAC Holdings Inc.	(d)	Media	L+475	1.3%	2/7/19		3,503		3,471		3,527
Shell Topco L.P.	(d)(h)	Energy	L+750	1.5%	9/28/18		33,000		32,576		33,495
Sirius Computer Solutions, Inc.	(d)	Software & Services	L+575	1.3%	11/30/18		8,558		8,482		8,697
Six3 Systems, Inc.	(d)	Software & Services	L+575	1.3%	10/4/19		4,639		4,599		4,732
Smarte Carte, Inc.	(d)(f)(h)	Commercial & Professional Services	L+650	1.3%	11/30/17		58,713		58,125		59,593
Smile Brands Group Inc.	(d)(e)(h)	Health Care Equipment & Services	L+625	1.3%	8/15/19		30,550		29,873		30,178
Sorenson Communication, Inc.	(d)(e)(f)(h)	Telecommunication Services	L+825	1.3%	10/31/14		65,877		65,876		66,600
Sports Authority, Inc.	(d)(e)(f)	Consumer Durables & Apparel	L+600	1.5%	11/16/17		22,247		22,090		22,386
Stallion Oilfield Holdings, Inc.	(d)	Energy	L+675	1.3%	6/19/18		4,988		4,940		5,040
Swiss Watch International, Inc.	(d)(f)(h)	Consumer Durables & Apparel	L+725	1.3%	11/8/18		48,875		48,025		49,364
Technicolor SA	(d)(e)(j)	Media	L+600	1.3%	7/10/20		34,314		33,302		33,674
Tervita Corp.	(d)(j)	Commercial & Professional Services	L+500	1.3%	5/15/18		8,055		7,982		7,898
Therakos, Inc.	(d)(f)	Pharmaceuticals, Biotechnology & Life Sciences	L+625	1.3%	12/27/17		27,128		26,528		27,179
ThermaSys Corp.	(d)	Capital Goods	L+400	1.3%	5/3/19		9,938		9,843		9,925

See notes to unaudited consolidated financial statements.

7

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost			Fair Value(c)
Totes Isotoner Corp.	(d)	Consumer Durables & Apparel	L+575	1.5%	7/7/17	$	6,656	$	6,574		$	6,687
Toys “R” Us-Delaware, Inc.	(e)	Consumer Durables & Apparel	L+450	1.5%	9/1/16		1,524		1,529			1,486
TravelCLICK, Inc.	(d)	Consumer Services	L+450	1.3%	3/16/16		7,796		7,726			7,835
Tri-Northern Acquisition, Inc.	(f)(h)	Retailing	L+800	1.3%	7/1/19		54,863		54,863			54,863
Tri-Northern Acquisition, Inc.	(f)	Retailing	L+800	1.3%	7/1/19		11,379		11,379			11,379
Virtual Radiologic Corp.	(g)	Health Care Equipment & Services	Prime+450		12/22/16		3,501		3,451			2,258
Vision Solutions, Inc.	(d)	Software & Services	L+450	1.5%	7/22/16		6,463		6,426			6,479
VPG Group Holdings LLC	(d)(f)(h)	Materials	L+900	1.0%	10/4/16		64,945		64,228			65,919
Willbros Group, Inc.	(h)(j)	Energy	L+975	1.3%	8/7/19		16,000		15,445			16,104
Total Senior Secured Loans—First Lien									2,190,843			2,221,812
Unfunded Loan Commitments									(72,743	)		(72,743	)
Net Senior Secured Loans—First Lien									2,118,100			2,149,069
Senior Secured Loans—Second Lien—35.2%
Advance Pierre Foods, Inc.	(e)(f)(g)	Food & Staples Retailing	L+825	1.3%	10/10/17		22,556		22,235			23,007
Advantage Sales & Marketing Inc.	(e)	Commercial & Professional Services	L+725	1.0%	6/12/18		14,844		14,844			15,071
Affordable Care, Inc.	(d)(e)(f)(g)(h)	Health Care Equipment & Services	L+925	1.3%	12/26/19		40,000		39,471			40,000
Alliance Laundry Systems LLC	(e)	Capital Goods	L+825	1.3%	12/10/19		2,012		1,994			2,034
American Energy—Utica, LLC	(f)	Energy	L+950	1.5%	9/30/18		75,000		75,000			75,000
American Racing and Entertainment, LLC	(g)	Consumer Services	12.0%		7/1/18		16,800		16,281			16,968
Attachmate Corp.	(e)(f)	Software & Services	L+950	1.5%	11/22/18		28,218		27,466			27,913
Audio Visual Services Group, Inc.	(d)(f)(g)	Technology Hardware & Equipment	L+950	1.3%	5/9/18		52,885		51,931			52,884
BJ’s Wholesale Club, Inc.	(e)(f)	Food & Staples Retailing	L+850	1.3%	3/26/20		8,298		8,223			8,492
Blackboard Inc.	(f)(g)	Software & Services	L+1000	1.5%	4/4/19		22,000		20,262			22,660
Brand Energy & Infrastructure Services, Inc.	(e)(g)	Energy	L+975	1.3%	10/23/19		36,000		34,613			36,930
Brasa (Holdings) Inc.	(f)	Consumer Services	L+950	1.5%	1/20/20		11,180		10,799			11,348
Brock Holdings III, Inc.	(e)(g)	Energy	L+825	1.8%	3/16/18		7,756		7,673			7,882
Camp International Holding Co.	(d)	Capital Goods	L+875	1.3%	11/29/19		6,207		6,099			6,351
CHG Buyer Corp.	(d)	Health Care Equipment & Services	L+775	1.3%	11/19/20		5,787		5,680			5,917
Consolidated Precision Products Corp.	(d)(e)(h)	Capital Goods	L+925	1.3%	6/28/20		15,000		14,857			15,516
Crossmark Holdings, Inc.	(e)	Commercial & Professional Services	L+750	1.3%	12/21/20		7,778		7,705			7,778
DEI Sales, Inc.	(f)(g)	Commercial & Professional Services	L+900	1.5%	1/15/18		57,500		56,820			57,716
Eastman Kodak Co.	(f)(j)	Consumer Durables & Apparel	L+950	1.3%	7/31/20		50,000		48,761			50,719
EZE Software Group LLC	(e)	Software & Services	L+750	1.3%	2/22/21		2,381		2,359			2,420

See notes to unaudited consolidated financial statements.

8

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Fram Group Holdings Inc.	(e)	Automobiles & Components	L+900	1.5%	1/29/18	$	2,000	$	1,993	$	1,943
ILC Industries, LLC	(f)(g)	Capital Goods	L+1000	1.5%	6/14/19		27,976		27,057		26,297
Keystone Automotive Operations, Inc.	(f)	Automobiles & Components	L+950	1.3%	8/15/20		44,500		43,623		44,278
Kronos Inc.	(e)(f)	Software & Services	L+850	1.3%	4/30/20		21,769		21,570		22,599
LM U.S. Member LLC	(g)	Transportation	L+825	1.3%	10/19/20		9,375		9,245		9,516
OSP Group, Inc.	(d)(f)(g)(h)	Consumer Durables & Apparel	L+900	1.3%	7/31/20		105,000		105,000		106,575
Paw Luxco II Sarl	(j)	Consumer Durables & Apparel	EURIBOR+950		1/29/19	€	20,000		24,107		24,293
Pelican Products, Inc.	(d)	Capital Goods	L+1000	1.5%	6/14/19	$	6,667		6,551		6,700
Pregis Corp.	(f)(g)	Capital Goods	L+1000	1.5%	3/23/18		50,000		49,244		50,000
Quikrete Holdings, Inc.	(f)(i)	Capital Goods	L+600	1.0%	3/26/21		3,922		3,882		4,002
Ranpak Corp.	(g)	Commercial & Professional Services	L+725	1.3%	4/8/20		11,324		11,215		11,607
Sensus USA Inc.	(d)(e)	Capital Goods	L+725	1.3%	5/9/18		8,571		8,577		8,427
SESAC Holdings Inc.	(f)	Media	L+875	1.3%	7/12/19		3,000		2,959		3,075
Smart & Final Inc.	(g)	Food & Staples Retailing	L+925	1.3%	11/16/20		4,595		4,466		4,679
Stadium Management Corp.	(f)	Consumer Services	L+950	1.3%	12/7/18		23,529		23,146		23,618
TravelCLICK, Inc.	(f)(g)	Consumer Services	L+850	1.3%	3/26/18		34,925		34,606		35,798
TriZetto Group, Inc.	(g)	Software & Services	L+725	1.3%	3/28/19		8,372		8,261		7,263
Vertafore, Inc.	(e)	Software & Services	L+825	1.5%	10/27/17		14,750		14,709		15,054
Wall Street Systems Holdings, Inc.	(d)	Software & Services	L+800	1.3%	10/25/20		7,000		6,874		7,059
WildHorse Resources, LLC		Energy	L+625	1.3%	12/13/18		15,407		15,112		15,214
Total Senior Secured Loans—Second Lien									895,270		914,603
Senior Secured Bonds—14.6%
Advanced Lighting Technologies, Inc.	(f)(g)	Materials	10.5%		6/1/19		78,500		76,850		64,763
Allen Systems Group, Inc.	(f)(g)	Software & Services	10.5%		11/15/16		38,448		29,934		23,357
Aspect Software, Inc.	(e)	Software & Services	10.6%		5/15/17		4,000		4,000		4,000
Avaya Inc.	(e)(f)(g)	Technology Hardware & Equipment	7.0%		4/1/19		23,500		21,955		22,031
Avaya Inc.	(e)	Technology Hardware & Equipment	9.0%		4/1/19		5,000		5,000		4,850
Caesars Entertainment Resort Properties, LLC	(e)(f)(i)(j)	Consumer Services	11.0%		10/1/21		35,000		35,000		35,000
Chassix, Inc.	(e)	Automobiles & Components	9.3%		8/1/18		5,000		5,070		5,313
Chester Downs & Marina, LLC	(e)	Consumer Services	9.3%		2/1/20		3,750		3,781		3,761
Clear Channel Communications, Inc.	(d)(e)	Media	9.0%		12/15/19		2,073		1,843		2,049
Edgen Murray Corp.	(e)(j)	Capital Goods	8.8%		11/1/20		1,400		1,391		1,428
Energy Future Intermediate Holding Co. LLC	(f)	Utilities	11.8%		3/1/22		14,250		14,657		16,102

See notes to unaudited consolidated financial statements.

9

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
FairPoint Communications, Inc.	(e)(f)	Telecommunication Services	8.8%		8/15/19	$	22,750	$	22,750	$	23,033
Global A&T Electronics Ltd.	(e)(j)	Technology Hardware & Equipment	10.0%		2/1/19		9,000		9,000		7,772
HOA Restaurant Group, LLC	(f)	Consumer Services	11.3%		4/1/17		14,100		14,116		14,370
JW Aluminum Co.	(f)	Materials	11.5%		11/15/17		20,000		19,676		20,125
KeHE Distributors, LLC	(e)	Food, Beverage & Tobacco	7.6%		8/15/21		6,200		6,200		6,355
Kinetic Concepts, Inc.	(f)	Health Care Equipment & Services	10.5%		11/1/18		11,660		11,129		12,954
Logan’s Roadhouse Inc.	(e)	Consumer Services	10.8%		10/15/17		3,994		3,775		3,696
Neff Rental LLC	(f)	Capital Goods	9.6%		5/15/16		7,352		7,619		7,848
Ryerson Inc.	(e)	Capital Goods	9.0%		10/15/17		3,100		3,100		3,223
Sorenson Communication, Inc.	(g)	Telecommunication Services	10.5%		2/1/15		39,000		35,366		28,280
Speedy Cash Intermediate Holdings Corp.	(e)(f)	Diversified Financials	10.8%		5/15/18		19,000		19,310		19,924
Tervita Corp.	(e)(j)	Commercial & Professional Services	8.0%		11/15/18		3,250		3,250		3,274
Texas Competitive Electric Holdings Co. LLC	(f)	Utilities	11.5%		10/1/20		10,000		9,921		6,969
Titlemax, Inc.	(d)(e)	Diversified Financials	8.5%		9/5/18		15,000		15,000		15,713
Travelport LLC	(g)	Consumer Services	4.0%, 4.4% PIK		12/1/16		23,552		19,433		23,743
Total Senior Secured Bonds									399,126		379,933
Subordinated Debt—18.5%
Alta Mesa Holdings, L.P.	(e)	Energy	9.6%		10/15/18		16,700		16,573		17,744
Asurion, LLC	(f)	Insurance	L+950	1.5%	8/16/19		15,000		14,618		15,713
Aurora Diagnostics, LLC	(f)(g)	Pharmaceuticals, Biotechnology & Life Sciences	10.8%		1/15/18		18,065		18,108		11,381
BMC Software Finance, Inc.	(e)	Software & Services	8.1%		7/15/21		6,500		6,500		6,784
Comstock Resources, Inc.	(e)(f)(j)	Energy	9.5%		6/15/20		21,000		20,121		22,926
CrownRock, L.P.	(e)(f)	Energy	7.1%		4/15/21		25,000		25,000		24,847
Cumulus Media Inc.	(f)(j)	Media	7.8%		5/1/19		5,000		4,502		5,200
Entercom Radio, LLC	(e)(j)	Media	10.5%		12/1/19		13,500		13,369		15,323
Flanders Corp.	(f)(g)	Capital Goods	10.0%, 3.8% PIK		5/14/18		15,832		15,667		16,248
Harland Clarke Holdings Corp.	(g)	Commercial & Professional Services	9.5%		5/15/15		2,193		2,039		2,197
Hub International Ltd.	(e)(i)	Insurance	7.9%		10/1/21		2,250		2,250		2,256
Ipreo Holdings LLC	(f)	Software & Services	11.8%		8/15/18		10,000		9,964		10,550
Kinetic Concepts, Inc.	(e)(f)(g)	Health Care Equipment & Services	12.5%		11/1/19		24,700		23,559		25,935
KODA Distribution Group, Inc.	(f)	Materials	11.3%		9/30/19		32,500		31,850		31,850
MModal Inc.	(e)(g)	Health Care Equipment & Services	10.8%		8/15/20		2,418		2,373		1,934
Monitronics International, Inc.	(e)(j)	Consumer Services	9.1%		4/1/20		2,250		2,250		2,357

See notes to unaudited consolidated financial statements.

10

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Mood Media Corp.	(e)(f)(g)(i)(j)	Media	9.3%		10/15/20	$	25,400	$	25,293	$	21,717
QR Energy, L.P.	(e)(j)	Energy	9.3%		8/1/20		3,250		3,209		3,327
Resolute Energy Corp.	(e)(j)	Energy	8.5%		5/1/20		8,500		8,594		8,764
RKI Exploration & Production, LLC	(e)	Energy	8.5%		8/1/21		10,900		10,900		11,012
Samson Investment Co.	(e)(f)	Energy	9.8%		2/15/20		19,420		19,614		20,701
SandRidge Energy, Inc.	(e)(j)	Energy	8.1%		10/15/22		7,000		7,000		7,132
Sequel Industrial Products Holdings, LLC	(g)	Energy	12.0%, 2.5% PIK		5/10/18		15,792		15,539		16,108
Sidewinder Drilling Inc.	(f)(g)	Capital Goods	9.8%		11/15/19		8,000		8,000		7,811
Symmetry Medical Inc.	(g)(j)	Health Care Equipment & Services	12.0%, 2.0% PIK		12/29/17		33,675		32,903		35,191
ThermaSys Corp.	(f)(g)	Capital Goods	9.0%, 1.8% PIK		5/3/20		130,373		130,373		129,721
VPG Group Holdings LLC	(f)	Materials	11.0%, 2.0% PIK		7/15/19		5,000		5,000		5,000
Total Subordinated Debt									475,168		479,729
Collateralized Securities—4.7%
ACASC 2013-2A B	(g)	Diversified Financials	12.6%		10/15/23		30,500		30,475		30,500
Apidos CDO IV Class E	(g)(j)	Diversified Financials	L+360		10/27/18		2,000		1,276		1,870
Ares 2007 CLO 11A Class E	(g)(j)	Diversified Financials	L+600		10/11/21		4,775		3,296		4,725
Ares 2007 CLO 12X Class E	(g)(j)	Diversified Financials	L+575		11/25/20		2,252		1,851		2,246
Carlyle Azure CLO Class Income	(j)	Diversified Financials	19.3%		5/27/20		28,000		11,646		14,818
Dryden CDO 23A Class Subord.	(j)	Diversified Financials	21.4%		7/17/23		10,000		6,403		7,651
Lightpoint CLO 2006 V Class D	(g)(j)	Diversified Financials	L+365		8/5/19		6,500		3,683		6,002
Rampart CLO 2007 1A Class Subord.	(j)	Diversified Financials	31.9%		10/25/21		10,000		4,159		7,693
Stone Tower CLO VI Class Subord.	(g)(j)	Diversified Financials	33.7%		4/17/21		5,000		3,184		5,278
Wind River CLO Ltd. 2012-1A Class Subord. B	(j)	Diversified Financials	11.0%		1/15/24		42,504		39,883		41,434
Total Collateralized Securities									105,856		122,217
						Number of Shares		Amortized Cost		Fair Value(c)
Equity/Other—6.0%(k)
American Energy Ohio Holdings, LLC, Common Equity	(l)(m)	Energy					5,070,590		5,071		5,071
Aquilex Corp., Common Equity, Class A Shares	(f)	Energy					15,128		1,087		2,702
Aquilex Corp., Common Equity, Class B Shares	(f)(g)	Energy					32,637		2,346		5,829
Burleigh Point, Ltd., Warrants	(j)(l)	Retailing					17,256,081		1,898		3,279
Eastman Kodak Co., Common Equity	(f)(j)(l)	Consumer Durables & Apparel					61,859		1,202		1,546

See notes to unaudited consolidated financial statements.

11

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value(c)
ERC Ireland Holdings Ltd., Common Equity	(j)(l)	Telecommunication Services		21,099	$	—	$	—
ERC Ireland Holdings Ltd., Warrants	(j)(l)	Telecommunication Services		4,943		—		—
Flanders Corp., Common Equity	(g)(l)	Capital Goods		5,000,000		5,000		9,500
Florida Gaming Centers, Inc., Warrants	(g)(l)	Consumer Services		71		—		3,071
Florida Gaming Corp., Warrants	(g)(l)	Consumer Services		226,635		—		—
HBC Solutions, Inc., Common Equity, Class A Units	(l)	Media		26,984		3,051		3,206
Ipreo Holdings LLC, Common Equity	(g)(l)	Software & Services		1,000,000		1,000		1,950
JW Aluminum Co., Common Equity	(g)(l)	Materials		37,500		3,225		—
Leading Edge Aviation Services, Inc., Common Equity	(g)(l)	Capital Goods		4,181		418		388
Leading Edge Aviation Services, Inc., Preferred Equity	(g)(l)	Capital Goods		1,177		1,177		1,177
Micronics, Inc., Common Equity	(l)	Capital Goods		50,000		500		470
Micronics, Inc., Preferred Equity	(l)	Capital Goods		50		500		500
Milagro Holdings, LLC, Common Equity	(g)(l)	Energy		12,057		50		—
Milagro Holdings, LLC, Preferred Equity	(l)	Energy		283,947		11,180		3,155
Plains Offshore Operations Inc., Preferred Equity	(f)(g)	Energy		50,000		54,495		61,505
Plains Offshore Operations Inc., Warrants	(f)(g)(l)	Energy		1,013,444		1,722		2,939
Safariland, LLC, Common Equity	(g)(l)	Capital Goods		25,000		2,500		4,665
Safariland, LLC, Preferred Equity	(g)	Capital Goods		1,021		20,547		20,327
Safariland, LLC, Warrants	(g)(l)	Capital Goods		2,263		473		846
Sequel Industrial Products Holdings, LLC, Common Equity	(g)(l)	Energy		3,330,600		3,400		6,661
Sequel Industrial Products Holdings, LLC, Preferred Equity	(g)(l)	Energy		8,000,000		8,965		8,976
Sequel Industrial Products Holdings, LLC, Warrants	(g)(l)	Energy		20,681		13		41
ThermaSys Corp., Common Equity	(g)(l)	Capital Goods		51,813		1		—
ThermaSys Corp., Preferred Equity	(g)	Capital Goods		51,813		5,181		3,808
VPG Group Holdings LLC, Class A-2 Units	(g)(l)	Materials		2,500,000		3,638		3,638
Total Equity/Other						138,640		155,250
TOTAL INVESTMENTS—161.7%					$	4,132,160		4,200,801
LIABILITIES IN EXCESS OF OTHER ASSETS—(61.7%)								(1,603,111	)
NET ASSETS—100%							$	2,597,690

See notes to unaudited consolidated financial statements.

12

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2013

(in thousands, except share amounts)

(a) Security may be an obligation of one or more entities affiliated with the named company.

(b) Denominated in U.S. dollars unless otherwise noted.

(c) Fair value determined by the Company’s board of directors (see Note 7).

(d) Security or portion thereof held within Arch Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Citibank, N.A. (see Note 8).

(e) Security or portion thereof held within Broad Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Deutsche Bank AG, New York Branch (see Note 8).

(f) Security or portion thereof held within Locust Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the Class A Notes issued to Race Street Funding LLC pursuant to an indenture with Citibank, N.A., as trustee (see Note 8).

(g) Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the repurchase agreement with JPMorgan Chase Bank, N.A., London Branch (see Note 8).

(h) Security or portion thereof held within Walnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Wells Fargo Bank, National Association (see Note 8).

(i) Position or portion thereof unsettled as of September 30, 2013.

(j) The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of September 30, 2013, 81.3% of the Company’s total assets represented qualifying assets.

(k) Listed investments may be treated as debt for GAAP or tax purposes.

(l) Security is non-income producing.

(m) Security held within IC American Energy Investments, Inc., a wholly-owned subsidiary of the Company.

See notes to unaudited consolidated financial statements.

13

FS Investment Corporation

Consolidated Schedule of Investments

As of December 31, 2012

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Senior Secured Loans—First Lien—77.5%
A.P. Plasman Inc.	(f)(h)(j)	Capital Goods	L+850	1.5%	12/29/16	$	53,350	$	52,456	$	54,150
AccentCare, Inc.	(d)	Health Care Equipment & Services	L+500	1.5%	12/22/16		2,017		1,828		1,573
Advantage Sales & Marketing Inc.	(d)	Commercial & Professional Services	L+375	1.5%	12/18/17		4,550		4,544		4,592
Airvana Network Solutions Inc.	(f)	Telecommunication Services	L+800	2.0%	3/25/15		3,685		3,677		3,702
AlixPartners, LLP	(d)(f)	Diversified Financials	L+525	1.3%	6/28/19		9,950		9,878		10,092
Alkermes, Inc.	(d)(j)	Pharmaceuticals, Biotechnology & Life Sciences	L+350	1.0%	9/18/19		4,200		4,159		4,247
Allied Security Holdings, LLC	(d)	Commercial & Professional Services	L+400	1.3%	2/3/17		3,851		3,833		3,880
Altegrity, Inc.	(d)(e)	Commercial & Professional Services	L+600	1.8%	2/20/15		5,121		5,115		5,125
Amaya Holdings Corp.	(d)(h)	Consumer Services	L+775	1.3%	11/5/15		25,000		24,642		25,000
American & Efird Global, LLC	(f)(h)	Consumer Durables & Apparel	L+900	1.5%	12/21/16		43,400		42,486		44,051
American Racing and Entertainment, LLC Term Loan A	(f)	Consumer Services	L+700		6/30/14		14,500		14,500		14,500
American Racing and Entertainment, LLC Term Loan B	(f)	Consumer Services	9.0%		6/30/14		7,750		7,750		7,789
American Racing and Entertainment, LLC Term Loan C	(f)	Consumer Services	9.0%		6/30/14		750		750		754
Applied Systems, Inc.	(d)	Software & Services	L+400	1.5%	12/8/16		3,506		3,490		3,536
Ardent Medical Services, Inc.	(d)(e)	Health Care Equipment & Services	L+500	1.5%	9/15/15		13,248		13,164		13,314
Ardent Medical Services, Inc.	(d)(e)(i)	Health Care Equipment & Services	L+525	1.5%	5/23/18		8,488		8,403		8,589
Aspect Software, Inc.	(d)	Software & Services	L+525	1.8%	5/7/16		6,765		6,581		6,824
Attachmate Corp.	(d)(e)	Software & Services	L+575	1.5%	11/22/17		11,421		11,213		11,547
Avaya Inc.	(d)	Technology Hardware & Equipment	L+275		10/24/14		1,973		1,944		1,939
Avaya Inc.	(d)(e)	Technology Hardware & Equipment	L+450		10/26/17		9,012		8,208		7,976
AZ Chem U.S. Inc.	(h)(i)	Materials	L+575	1.5%	12/22/17		4,545		4,451		4,611
Barbri, Inc.	(d)	Consumer Services	L+450	1.5%	6/16/17		3,227		3,219		3,233
Barrington Broadcasting Group LLC	(f)	Media	L+600	1.5%	6/14/17		2,889		2,816		2,917
BBB Industries, LLC	(f)	Automobiles & Components	L+450	2.0%	6/27/14		8,025		7,993		7,945
BJ’s Wholesale Club, Inc.	(d)(e)	Food & Staples Retailing	L+450	1.3%	9/26/19		14,000		13,864		14,204
Blackboard Inc.	(d)(f)(h)	Software & Services	L+600	1.5%	10/4/18		18,307		17,142		18,536
Boomerang Tube, LLC	(d)(h)	Energy	L+950	1.5%	10/11/17		24,688		23,971		24,379
Brasa (Holdings) Inc.	(d)	Consumer Services	L+625	1.3%	7/19/19		5,819		5,749		5,877
Bushnell Inc.	(d)	Consumer Durables & Apparel	L+425	1.5%	8/24/15		7,581		7,342		7,584
Caesars Entertainment Operating Co.	(d)(e)(f)(j)	Consumer Services	L+425		1/26/18		19,166		16,718		16,624
Cannery Casino Resorts, LLC	(d)	Consumer Services	L+475	1.3%	10/2/18		3,990		3,951		4,008
Capital Vision Services, LLC	(f)(h)	Health Care Equipment & Services	Prime+625	1.3%	12/3/17		17,196		17,196		17,196
Capital Vision Services, LLC		Health Care Equipment & Services	L+100		12/3/17		2,804		2,804		2,804
CCM Merger, Inc.	(d)	Consumer Services	L+475	1.3%	3/1/17		4,746		4,694		4,766
Cengage Learning Acquisitions, Inc.	(d)(i)	Consumer Durables & Apparel	L+225		7/3/14		3,117		2,618		2,471

See notes to unaudited consolidated financial statements.

14

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2012

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor	Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Chrysler Group LLC	(d)(e)(f)(h)	Automobiles & Components	L+475	1.3%	5/24/17	$	22,444	$	21,726	$	22,952
Citgo Petroleum Corp.	(e)(j)	Energy	L+600	2.0%	6/24/15		3,036		3,066		3,062
Citgo Petroleum Corp.	(e)(f)(j)	Energy	L+700	2.0%	6/23/17		7,661		7,643		7,779
Clear Channel Communications, Inc.	(d)(e)(f)(i)	Media	L+365		1/29/16		27,557		22,354		22,842
Collective Brands, Inc.	(f)	Consumer Durables & Apparel	L+600	1.3%	10/9/19		10,820		10,662		10,968
CompuCom Systems, Inc.	(d)	Software & Services	L+525	1.3%	10/4/18		3,448		3,415		3,472
The Container Store, Inc.	(d)(e)	Consumer Durables & Apparel	L+500	1.3%	4/5/19		13,065		13,001		13,187
Corel Corp.	(d)(j)	Software & Services	L+700		5/2/14		9,400		9,352		9,447
Corner Investment PropCo, LLC	(d)(f)(j)	Consumer Services	L+975	1.3%	11/1/19		24,000		23,532		23,730
Crestwood Holdings LLC	(f)	Energy	L+825	1.5%	3/26/18		16,689		16,603		17,050
DAE Aviation Holdings, Inc.	(h)	Capital Goods	L+500	1.3%	10/29/18		6,825		6,690		6,927
DAE Aviation Holdings, Inc.	(h)	Capital Goods	L+500	1.3%	11/2/18		3,094		3,033		3,140
Del Monte Foods Co.	(d)	Food, Beverage & Tobacco	L+300	1.5%	3/8/18		2,876		2,832		2,886
Drumm Investors LLC	(d)(f)	Health Care Equipment & Services	L+375	1.3%	5/4/18		8,542		8,021		8,037
Dynegy Inc.	(f)	Energy	L+775	1.5%	8/5/16		6,096		6,225		6,393
Eastman Kodak Co.	(g)	Consumer Durables & Apparel	L+750	1.0%	7/19/13		7,232		7,181		7,252
Education Management LLC	(f)(j)	Consumer Services	L+400		6/1/16		3,978		3,233		3,257
Education Management LLC	(e)(j)	Consumer Services	L+700	1.3%	3/29/18		15,870		15,796		13,271
Electrical Components International, Inc.	(f)	Capital Goods	L+525	1.5%	2/4/16		235		218		236
Electrical Components International, Inc.	(g)	Capital Goods	L+525	1.5%	2/4/17		3,573		3,295		3,582
EquiPower Resources Holdings, LLC	(d)	Utilities	L+425	1.3%	12/21/18		4,975		4,996		5,054
ERC Ireland Holdings Ltd.	(i)(j)	Telecommunication Services	EURIBOR+300, 1.0% PIK		9/30/17	€	11,173		10,733		11,896
Fairway Group Acquisition Co.	(d)(f)(h)	Food & Staples Retailing	L+675	1.5%	8/17/18	$	25,325		25,037		25,578
Flanders Corp.	(f)(h)	Capital Goods	L+950	1.5%	5/16/18		38,993		38,104		39,188
Fleetgistics Holdings, Inc.	(f)	Transportation	L+588	2.0%	3/23/15		2,026		2,011		1,783
Flexera Software, Inc.	(d)	Software & Services	L+625	1.3%	9/29/17		2,925		2,923		2,948
Florida Gaming Centers, Inc.	(f)	Consumer Services	15.8%		4/25/16		12,517		12,343		12,455
Fram Group Holdings Inc.	(d)	Automobiles & Components	L+500	1.5%	7/29/17		1,990		1,952		1,992
FREIF North American Power I LLC	(d)	Energy	L+450	1.5%	3/29/19		3,073		3,080		3,111
FREIF North American Power I LLC	(d)	Energy	L+450	1.5%	3/29/19		880		882		891
Generac Power Systems, Inc.	(d)(j)	Capital Goods	L+500	1.3%	5/30/18		3,563		3,630		3,653
Generic Drug Holdings, Inc.	(d)	Retailing	L+475	1.3%	9/28/19		2,728		2,701		2,753
Genesys Telecom Holdings, U.S., Inc.	(d)	Telecommunication Services	L+525	1.5%	1/31/19		1,711		1,724		1,730
Gymboree Corp.	(d)	Consumer Durables & Apparel	L+350	1.5%	2/23/18		3,702		3,477		3,420

See notes to unaudited consolidated financial statements.

15

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2012

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor		Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
Halifax Media Holdings LLC	(f)(h)	Media	L+1050		0.8%	6/30/16	$	16,068	$	15,748	$	15,907
Hamilton Lane Advisors, LLC	(d)	Diversified Financials	L+500		1.5%	2/23/18		2,730		2,717		2,750
Harbor Freight Tools USA, Inc.	(d)	Consumer Durables & Apparel	L+425		1.3%	11/14/17		4,365		4,364		4,424
HarbourVest Partners L.P.	(d)	Diversified Financials	L+375		1.0%	11/21/17		5,752		5,724		5,781
Harland Clarke Holdings Corp.	(f)	Commercial & Professional Services	L+250			6/30/14		6,334		5,741		6,135
Hawaiian Telcom Communications, Inc.	(d)(f)(h)	Telecommunication Services	L+575		1.3%	2/28/17		16,979		16,864		17,335
Hupah Finance Inc.	(d)(e)	Capital Goods	L+500		1.3%	1/21/19		11,333		11,275		11,475
Hyland Software, Inc.	(d)	Software & Services	L+425		1.3%	10/25/19		4,918		4,918		4,939
IASIS Healthcare LLC	(d)	Health Care Equipment & Services	L+375		1.3%	5/3/18		1,453		1,427		1,459
Ikaria Acquisition Inc.	(d)	Pharmaceuticals, Biotechnology & Life Sciences	L+650		1.3%	9/18/17		3,967		3,948		3,992
ILC Industries, LLC	(d)(h)	Capital Goods	L+600		1.5%	7/11/18		10,131		9,941		10,038
Immucor, Inc.	(d)	Health Care Equipment & Services	L+450		1.3%	8/17/18		3,873		3,882		3,929
INC Research, LLC	(d)(f)	Health Care Equipment & Services	L+575		1.3%	7/12/18		16,788		16,522		16,913
INEOS Finance Plc	(d)(e)(f)(j)	Materials	L+525		1.3%	5/4/18		18,914		18,713		19,145
Infogroup Inc.	(d)	Software & Services	L+425		1.5%	5/25/18		3,338		2,940		3,004
Insight Equity A.P. X, L.P.	(f)(g)(h)	Household & Personal Products	L+850		1.0%	10/26/18		65,000		63,736		65,000
Intelsat Jackson Holdings SA	(d)(j)	Telecommunication Services	L+325		1.3%	4/2/18		2,963		2,962		2,993
Intralinks, Inc.	(f)(j)	Software & Services	L+425		1.5%	6/15/14		1,033		938		1,034
inVentiv Health, Inc.	(d)	Health Care Equipment & Services	L+500		1.5%	8/4/16		1,066		997		1,040
inVentiv Health, Inc.	(e)	Health Care Equipment & Services	L+525		1.5%	5/15/18		2,725		2,704		2,671
Ipreo Holdings LLC	(d)(f)	Software & Services	L+525		1.3%	8/7/17		8,968		8,861		9,024
Jason Inc. (TLA)	(g)	Capital Goods	L+625		2.0%	9/21/14		2,403		2,395		2,399
Jason Inc. (TLB)	(g)	Capital Goods	L+625		2.0%	9/21/14		971		968		973
JHCI Acquisition, Inc.	(d)	Transportation	L+250			6/19/14		2,304		2,192		2,070
KIK Custom Products Inc.	(e)(j)	Household & Personal Products	L+225			6/2/14		10,274		9,693		9,657
Kronos Inc.	(d)	Commercial & Professional Services	L+425		1.3%	10/25/19		4,500		4,478		4,560
La Paloma Generating Co., LLC	(e)(f)	Energy	L+550		1.5%	8/25/17		8,697		8,445		8,686
Lantiq Deutschland GmbH	(f)(j)	Software & Services	L+900		2.0%	11/16/15		12,105		11,241		11,076
Leading Edge Aviation Services, Inc.	(d)(g)(h)	Capital Goods	L+850		1.5%	4/5/18		36,301		35,651		35,212
Maritime Telecommunications Network, Inc.	(f)	Telecommunication Services	L+600		1.5%	3/3/16		5,169		5,117		5,159
MMM Holdings, Inc.		Health Care Equipment & Services	L+825		1.5%	12/12/17		13,509		13,240		13,527
Mood Media Corp.	(d)(j)	Media	L+550		1.5%	5/7/18		3,045		3,016		3,054
MSO of Puerto Rico, Inc.		Health Care Equipment & Services	L+825		1.5%	12/12/17		9,825		9,629		9,838
National Mentor Holdings, Inc.	(d)	Health Care Equipment & Services	L+525		1.3%	2/9/17		7,980		7,980		7,985

See notes to unaudited consolidated financial statements.

16

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2012

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate	Floor		Maturity	Principal Amount(b)		Amortized Cost		Fair Value(c)
National Vision, Inc.	(d)	Health Care Equipment & Services	L+575		1.3%	8/2/18	$	4,764	$	4,774	$	4,835
Natural Products Group, LLC	(g)	Household & Personal Products	Prime+600		4.0%	3/5/15		1,325		1,266		1,272
Navistar, Inc.	(d)(f)(h)(j)	Capital Goods	L+550		1.5%	8/17/17		20,944		20,891		21,082
NCI Building Systems, Inc.	(d)(e)(g)(h)(j)	Capital Goods	L+675		1.3%	5/2/18		31,573		30,815		31,635
NCO Group, Inc.	(e)(h)	Software & Services	L+675		1.3%	4/3/18		19,807		19,448		19,900
Nexeo Solutions, LLC		Capital Goods	L+350		1.5%	9/7/17		3,990		3,912		3,926
NSH Merger Sub, Inc.	(d)(f)	Health Care Equipment & Services	L+650		1.8%	2/2/17		19,042		18,869		18,613
Nuveen Investments, Inc.	(d)	Diversified Financials	L+550			5/13/17		9,000		9,004		9,055
NXP BV	(d)(j)	Semiconductors & Semiconductor Equipment	L+425		1.3%	3/3/17		2,351		2,375		2,402
On Assignment, Inc.	(d)(j)	Commercial & Professional Services	L+375		1.3%	5/15/19		2,992		2,976		3,033
Onex Carestream Finance L.P.	(d)(j)	Health Care Equipment & Services	L+350		1.5%	2/25/17		1,419		1,383		1,416
Orbitz Worldwide, Inc.	(d)(j)	Retailing	L+300			7/25/14		4,216		4,058		4,056
Ozburn-Hessey Holding Co., LLC	(d)(f)	Transportation	L+625		2.0%	4/8/16		5,650		5,446		5,650
Panda Sherman Power, LLC	(d)	Energy	L+750		1.5%	9/14/18		9,273		9,192		9,435
Panda Temple Power, LLC (TLA)	(f)	Ene