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 MARCH 31, 2015

¨ 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 of Incorporation)	(I.R.S. Employer Identification Number)
201 Rouse Boulevard Philadelphia, Pennsylvania	19112
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (215) 495-1150

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 definition of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨ (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.

There were 241,702,625 shares of the registrant’s common stock outstanding as of May 8, 2015.

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS		1
	Consolidated Balance Sheets as of March 31, 2015 (Unaudited) and December 31, 2014		1
	Unaudited Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014		2
	Unaudited Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2015 and 2014		3
	Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014		4
	Consolidated Schedules of Investments as of March 31, 2015 (Unaudited) and December 31, 2014		5
	Notes to Unaudited Consolidated Financial Statements		22
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		56
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		87

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FS Investment Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	March 31, 2015 (Unaudited)		December 31, 2014
Assets
Investments, at fair value—unaffiliated (amortized cost—$4,130,468 and $4,164,166, respectively)	$	4,145,545	$	4,168,654
Investments, at fair value—affiliated (amortized cost—$17,931 and $17,931, respectively)		16,138		14,793
Cash		83,894		95,205
Foreign currency, at fair value (cost—$5,657 and $1,661, respectively)		4,986		1,639
Receivable for investments sold and repaid		40,961		8,976
Interest receivable		59,245		51,814
Deferred financing costs		12,238		13,097
Prepaid expenses and other assets		1,345		708
Total assets	$	4,364,352	$	4,354,886
Liabilities
Payable for investments purchased	$	832	$	28,095
Credit facilities payable		174,005		188,827
Unsecured notes payable		725,000		725,000
Repurchase agreement payable(1)		950,000		950,000
Stockholder distributions payable		53,706		17,885
Management fees payable		19,073		19,560
Accrued capital gains incentive fees(2)		24,823		21,075
Subordinated income incentive fees payable(2)		13,905		13,089
Administrative services expense payable		613		1,410
Interest payable		14,983		15,850
Directors’ fees payable		288		296
Deferred financing costs payable		—		473
Other accrued expenses and liabilities		1,412		6,340
Total liabilities		1,978,640		1,987,900
Commitments and contingencies(3)		—		—
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, 241,101,342 and 240,896,559 shares issued and outstanding, respectively		241		241
Capital in excess of par value		2,260,554		2,258,548
Accumulated undistributed net realized gains on investments and gain/loss on foreign currency(4)		37,153		33,758
Accumulated undistributed (distributions in excess of) net investment income(4)		66,601		68,658
Net unrealized appreciation (depreciation) on investments and unrealized gain/loss on foreign currency		21,163		5,781
Total stockholders’ equity		2,385,712		2,366,986
Total liabilities and stockholders’ equity	$	4,364,352	$	4,354,886
Net asset value per share of common stock at period end	$	9.90	$	9.83

(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 9 for a discussion of the Company’s commitments and contingencies.

(4) 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 March 31,
	2015		2014
Investment income
Interest income—unaffiliated	$	103,939	$	104,711
Fee income—unaffiliated		4,696		10,085
Total investment income		108,635		114,796
Operating expenses
Management fees		19,038		22,371
Capital gains incentive fees(1)		3,748		4,836
Subordinated income incentive fees(1)		13,905		15,178
Administrative services expenses		991		1,200
Stock transfer agent fees		80		451
Accounting and administrative fees		276		332
Interest expense		17,299		12,700
Directors’ fees		227		265
Other general and administrative expenses		1,422		1,586
Total operating expenses		56,986		58,919
Net investment income		51,649		55,877
Realized and unrealized gain/loss
Net realized gain (loss) on investments—unaffiliated		3,285		13,822
Net realized gain (loss) on foreign currency		110		(19	)
Net change in unrealized appreciation (depreciation) on investments—unaffiliated		10,589		10,335
Net change in unrealized appreciation (depreciation) on investments— affiliated		1,345		—
Net change in unrealized gain (loss) on foreign currency		3,448		45
Total net realized and unrealized gain (loss) on investments		18,777		24,183
Net increase (decrease) in net assets resulting from operations	$	70,426	$	80,060
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)	$	0.29	$	0.31
Weighted average shares outstanding		241,084,292		260,185,661

(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.

See notes to unaudited consolidated financial statements.

2

FS Investment Corporation

Unaudited Consolidated Statements of Changes in Net Assets

(in thousands)

	Three Months Ended March 31,
	2015			2014
Operations
Net investment income (loss)	$	51,649		$	55,877
Net realized gain (loss) on investments and foreign currency		3,395			13,803
Net change in unrealized appreciation (depreciation) on investments		11,934			10,335
Net change in unrealized gain (loss) on foreign currency		3,448			45
Net increase (decrease) in net assets resulting from operations		70,426			80,060
Stockholder distributions(1)
Distributions from net investment income		(53,706	)		(56,237	)
Distributions from net realized gain on investments		—			—
Net decrease in net assets resulting from stockholder distributions		(53,706	)		(56,237	)
Capital share transactions(2)
Reinvestment of stockholder distributions		2,006			29,257
Repurchases of common stock		—			(8,903	)
Net increase (decrease) in net assets resulting from capital share transactions		2,006			20,354
Total increase (decrease) in net assets		18,726			44,177
Net assets at beginning of period		2,366,986			2,640,992
Net assets at end of period	$	2,385,712		$	2,685,169
Accumulated undistributed (distributions in excess of) net investment income(1)	$	66,601		$	34,962

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

(2) See Note 3 for a discussion of the Company’s capital share transactions.

See notes to unaudited consolidated financial statements.

3

FS Investment Corporation

Unaudited Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	70,426		$	80,060
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investments		(191,510	)		(471,491	)
Paid-in-kind interest		(4,994	)		(2,439	)
Proceeds from sales and repayments of investments		237,355			566,115
Net realized (gain) loss on investments		(3,285	)		(13,822	)
Net change in unrealized (appreciation) depreciation on investments		(11,934	)		(10,335	)
Accretion of discount		(3,868	)		(8,074	)
Amortization of deferred financing costs		859			582
(Increase) decrease in receivable for investments sold and repaid		(31,985	)		(41,057	)
(Increase) decrease in interest receivable		(7,431	)		(7,705	)
(Increase) decrease in prepaid expenses and other assets		(637	)		(248	)
Increase (decrease) in payable for investments purchased		(27,263	)		898
Increase (decrease) in management fees payable		(487	)		(325	)
Increase (decrease) in accrued capital gains incentive fees		3,748			3,246
Increase (decrease) in subordinated income incentive fees payable		816			875
Increase (decrease) in administrative services expense payable		(797	)		667
Increase (decrease) in interest payable		(867	)		(261	)
Increase (decrease) in directors’ fees payable		(8	)		—
Increase (decrease) in other accrued expenses and liabilities		(4,928	)		(5,130	)
Net cash provided by (used in) operating activities		23,210			91,556
Cash flows from financing activities
Issuance of common stock		—			—
Reinvestment of stockholder distributions		2,006			29,257
Repurchases of common stock		—			(8,903	)
Stockholder distributions		(17,885	)		(56,094	)
Borrowings under credit facilities(1)		24,200			14,800
Borrowings under unsecured notes(1)		—			—
Repayments of credit facilities(1)		(39,022	)		—
Borrowings under repurchase agreement(2)		—			—
Deferred financing costs paid		(473	)		(259	)
Net cash provided by (used in) financing activities		(31,174	)		(21,199	)
Total increase (decrease) in cash		(7,964	)		70,357
Cash and foreign currency at beginning of period		96,844			227,328
Cash and foreign currency at end of period	$	88,880		$	297,685
Supplemental disclosure
Local and excise taxes paid	$	5,546		$	5,100

(1) See Note 8 for a discussion of the Company’s credit facilities and unsecured notes. During the three months ended March 31, 2015 and 2014, the Company paid $9,416 and $4,488, respectively, in interest expense on the credit facilities and unsecured notes.

(2) See Note 8 for a discussion of the Company’s repurchase transaction. During the three months ended March 31, 2015 and 2014, the Company paid $7,891 and $7,891, 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 March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Senior Secured Loans—First Lien—92.1%
A.P. Plasman Inc.	(f)(g)(h)(j)	Capital Goods	L+775	1.0%	12/29/19	$	136,959		$136,959		$137,986
A.P. Plasman Inc.	(h)(j)(o)	Capital Goods	L+775	1.0%	12/29/19		36,919		36,919		37,196
AccentCare, Inc.	(h)	Health Care Equipment & Services	L+500	1.5%	12/22/16		1,954		1,868		1,865
Allen Systems Group, Inc.	(f)(h)(l)	Software & Services	L+1,425	1.0%	12/14/17		1,539		1,724		1,746
Allen Systems Group, Inc.	(f)(h)(l)	Software & Services	L+1,625	1.0%	12/14/17		36,832		41,251		41,796
Altus Power America, Inc.	(h)	Energy	L+750	1.5%	10/10/21		899		899		908
Altus Power America, Inc.	(h)(o)	Energy	L+750	1.5%	10/10/21		2,226		2,226		2,248
American Racing and Entertainment, LLC	(f)	Consumer Services	11.0%		7/1/15		7,750		7,750		7,779
American Racing and Entertainment, LLC	(f)	Consumer Services	L+900		7/1/15		12,250		12,250		12,281
American Racing and Entertainment, LLC	(f)	Consumer Services	L+1000	1.0%	7/1/18		6,500		6,500		6,524
AP Exhaust Acquisition, LLC	(h)	Automobiles & Components	L+775	1.5%	1/16/21		14,595		14,595		14,303
Aspect Software, Inc.	(h)	Software & Services	L+550	1.8%	5/7/16		1,168		1,156		1,167
Azure Midstream Energy LLC	(h)	Energy	L+650	1.0%	11/15/18		263		260		251
BenefitMall Holdings, Inc.	(h)	Commercial & Professional Services	L+725	1.0%	11/24/20		14,963		14,963		15,112
BenefitMall Holdings, Inc.	(h)(o)	Commercial & Professional Services	L+725	1.0%	11/24/20		5,455		5,455		5,509
Boomerang Tube, LLC	(h)(l)(p)	Energy	L+950	1.5%	10/11/17		17,864		17,531		10,272
Cadillac Jack, Inc.	(f)(h)(j)	Consumer Services	L+850	1.0%	5/15/19		74,263		73,196		77,233
Caesars Entertainment Operating Co., Inc.	(e)(f)(j)(l)	Consumer Services	L+575		3/1/17		12,621		11,878		11,566
Caesars Entertainment Operating Co., Inc.	(f)(j)(l)	Consumer Services	L+675		3/1/17		2,363		2,273		2,178
Caesars Entertainment Operating Co., Inc.	(e)(f)(g)(h)(j)(l)	Consumer Services	L+875	1.0%	1/28/18		84,594		84,070		77,446
Caesars Entertainment Resort Properties, LLC	(e)(f)(h)	Consumer Services	L+600	1.0%	10/11/20		71,996		68,360		68,306
Corel Corp.	(f)(g)(h)(j)	Software & Services	L+825		6/7/19		149,127		149,127		151,363
Corel Corp.	(h)(j)(o)	Software & Services	Prime+725		6/7/18		10,000		10,000		10,000
Corner Investment PropCo, LLC	(f)(h)	Consumer Services	L+975	1.3%	11/2/19		44,611		44,757		44,555
CoSentry.Net, LLC	(f)(h)	Software & Services	L+800	1.3%	12/31/19		57,799		57,799		58,955
Crestwood Holdings LLC	(h)	Energy	L+600	1.0%	6/19/19		5,382		5,363		5,096
Dent Wizard International Corp.	(f)(h)	Commercial & Professional Services	L+869	1.0%	2/5/20		88,866		88,866		88,866
Dent Wizard International Corp.	(h)(o)	Commercial & Professional Services	L+425	1.0%	2/5/20		2,317		2,317		2,317
Eastman Kodak Co.	(h)	Consumer Durables & Apparel	L+625	1.0%	9/3/19		10,718		10,554		10,732
Flanders Corp.	(f)	Capital Goods	L+950	1.5%	5/14/18		35,493		34,947		35,892
Fronton Holdings, LLC	(f)	Consumer Services	15.0%		4/30/19		3,736		3,703		3,736
H.M. Dunn Company, Inc.	(h)	Capital Goods	Prime+711		3/26/21		1,000		1,000		1,000
H.M. Dunn Company, Inc.	(h)(o)	Capital Goods	Prime+711		3/26/21		357		357		357

See notes to unaudited consolidated financial statements.

5

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
HBC Solutions, Inc.	(f)(g)(h)	Media	L+875	1.5%	2/4/18	$	83,797	$	83,797	$	84,216
Industrial Group Intermediate Holdings, LLC	(h)	Materials	L+800	1.3%	5/31/20		13,858		13,858		13,858
Industry City TI Lessor, L.P.	(h)	Consumer Services	5.0%, 5.3% PIK (5.3% Max PIK)		6/30/26		25,215		25,215		25,215
Infiltrator Systems, Inc.	(f)(g)(h)	Capital Goods	L+778	1.3%	10/31/19		226,000		225,869		226,000
Lantiq Deutschland GmbH	(f)(h)(j)	Software & Services	L+900	2.0%	11/16/15		7,968		7,832		7,928
Larchmont Resources, LLC	(h)	Energy	L+725	1.0%	8/7/19		4,377		4,343		3,997
Leading Edge Aviation Services, Inc.	(f)(g)(h)	Capital Goods	L+875	1.5%	6/30/19		33,280		32,990		33,113
LEAS Acquisition Co Ltd.	(h)(j)	Capital Goods	L+875	1.5%	6/30/19	€	28,875		39,531		30,864
LEAS Acquisition Co Ltd.	(g)(j)	Capital Goods	L+875	1.5%	6/30/19	$	10,491		10,491		10,439
MB Precision Holdings LLC	(h)	Capital Goods	L+725	1.3%	1/23/20		13,331		13,331		13,065
Micronics, Inc.	(f)(h)	Capital Goods	L+800	1.3%	3/28/19		58,581		58,266		58,581
Micronics, Inc.	(f)(h)(o)	Capital Goods	L+800	1.3%	3/28/19		19,500		19,500		19,500
MMM Holdings, Inc.	(h)	Health Care Equipment & Services	L+825	1.5%	12/12/17		8,685		8,583		7,034
MModal LLC	(h)	Health Care Equipment & Services	L+775	1.3%	1/31/20		4,322		4,303		4,002
MSO of Puerto Rico, Inc.	(h)	Health Care Equipment & Services	L+825	1.5%	12/12/17		6,314		6,239		5,114
New Star Metals Inc.	(f)(h)	Capital Goods	L+800	1.3%	3/20/20		36,475		36,475		36,475
Nova Wildcat Amerock, LLC	(h)	Consumer Durables & Apparel	L+941	1.3%	9/10/19		17,895		17,895		17,895
PHRC License, LLC	(g)(h)	Consumer Services	L+900	1.5%	8/14/20		45,000		45,000		45,000
Polymer Additives, Inc.	(h)	Materials	L+838	1.0%	12/20/21		10,511		10,511		10,564
Production Resource Group, LLC	(h)	Media	L+750	1.0%	7/23/19		32,500		32,500		32,338
PRV Aerospace, LLC	(h)	Capital Goods	L+525	1.3%	5/9/18		79		79		78
Reddy Ice Corp.	(h)	Food & Staples Retailing	L+550	1.3%	5/1/19		1,167		1,158		1,033
Safariland, LLC	(f)(h)	Capital Goods	L+800	1.3%	9/20/19		155,000		155,000		157,325
Shell Topco L.P.	(h)	Materials	L+750	1.5%	9/28/18		30,000		29,717		30,375
Smile Brands Group Inc.	(h)	Health Care Equipment & Services	L+625	1.3%	8/16/19		20,192		19,845		18,375
Sorenson Communications, Inc.	(e)(f)(h)	Telecommunication Services	L+575	2.3%	4/30/20		93,265		92,861		92,799
Southcross Holdings Borrower LP	(h)	Energy	L+500	1.0%	8/4/21		315		314		300
Stallion Oilfield Holdings, Inc.	(h)	Energy	L+675	1.3%	6/19/18		4,798		4,765		3,502
SunGard Availability Services Capital, Inc.	(e)	Software & Services	L+500	1.0%	3/29/19		4,962		4,632		4,350
Sunnova Asset Portfolio 5 Holdings, LLC	(h)	Energy	12.0% PIK (12.0% Max PIK)		11/14/21		2,663		2,663		2,690
Sunnova Asset Portfolio 5 Holdings, LLC	(h)(o)	Energy	12.0% PIK (12.0% Max PIK)		11/14/21		2,400		2,400		2,424

See notes to unaudited consolidated financial statements.

6

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
Swiss Watch International, Inc.	(f)(h)	Consumer Durables & Apparel	L+725	1.3%	11/8/18	$	46,625	$	46,011		$	44,294
The Sports Authority, Inc.	(h)	Consumer Durables & Apparel	L+600	1.5%	11/16/17		6,318		6,322			5,528
U.S. Xpress Enterprises, Inc.	(f)(g)	Transportation	L+875, 1.8% PIK (1.8% Max PIK)	1.5%	5/30/19		74,625		74,625			75,744
Vertellus Performance Chemicals LLC	(g)(h)	Materials	Prime+850		1/30/20		38,000		38,000			38,006
Virtual Radiologic Corp.	(h)	Health Care Equipment & Services	L+550	1.8%	12/22/16		3,447		3,419			2,835
VPG Group Holdings LLC	(f)(h)	Materials	L+900	1.0%	10/4/16		77,445		77,077			77,541
Waste Pro USA, Inc.	(f)(g)	Commercial & Professional Services	L+750	1.0%	10/15/20		86,672		86,672			87,538
Waste Pro USA, Inc.	(h)(o)	Commercial & Professional Services	L+750	1.0%	10/15/20		9,444		9,444			9,539
Total Senior Secured Loans—First Lien									2,302,406			2,286,015
Unfunded Loan Commitments									(88,618	)		(88,618	)
Net Senior Secured Loans—First Lien									2,213,788			2,197,397
Senior Secured Loans—Second Lien—29.2%
AdvancePierre Foods, Inc.	(e)(f)(g)	Food & Staples Retailing	L+825	1.3%	10/10/17		17,556		17,392			17,687
Affordable Care, Inc.	(f)(g)(h)	Health Care Equipment & Services	L+925	1.3%	12/26/19		34,314		33,998			33,971
Alison US LLC	(h)(j)	Capital Goods	L+850	1.0%	8/29/22		4,444		4,278			4,030
American Energy—Utica, LLC	(f)	Energy	L+950	1.5%	9/30/18		136,186		136,186			135,846
American Racing and Entertainment, LLC	(g)	Consumer Services	14.0%		7/1/18		16,800		16,403			16,842
Brasa (Holdings) Inc.	(f)	Consumer Services	L+950	1.5%	1/20/20		6,211		6,037			6,227
Brock Holdings III, Inc.	(h)	Energy	L+825	1.8%	3/16/18		6,923		6,860			6,560
Byrider Finance, LLC	(g)(h)	Automobiles & Components	L+1000	1.3%	8/22/20		10,000		10,000			10,000
Compuware Corp.	(e)(h)	Software & Services	L+825	1.0%	12/15/22		5,000		4,363			4,658
DEI Sales, Inc.	(f)(g)	Commercial & Professional Services	L+900	1.5%	1/15/18		57,500		57,013			54,481
Eastman Kodak Co.	(f)(g)	Consumer Durables & Apparel	L+950	1.3%	9/3/20		50,000		48,952			49,979
FullBeauty Brands, Inc.	(f)(g)(h)	Consumer Durables & Apparel	L+800	1.3%	7/31/20		165,000		165,000			164,175
Nielsen & Bainbridge, LLC	(h)	Consumer Services	L+925	1.0%	8/15/21		15,000		14,794			14,775
Paw Luxco II Sarl	(g)(j)	Consumer Durables & Apparel	EURIBOR+950		1/29/19	€	16,364		20,281			15,096
PSAV Acquisition Corp.	(f)(h)	Technology Hardware & Equipment	L+825	1.0%	1/24/22	$	80,000		78,924			80,500
Sequential Brands Group, Inc.	(f)(j)	Consumer Durables & Apparel	L+800	1.0%	8/15/20		25,000		25,000			25,000
Stadium Management Corp.	(f)	Consumer Services	L+825	1.0%	2/27/21		57,500		57,500			57,788
Total Senior Secured Loans—Second Lien									702,981			697,615

See notes to unaudited consolidated financial statements.

7

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
Senior Secured Bonds—15.1%
Advanced Lighting Technologies, Inc.	(f)(g)	Materials	10.5%		6/1/19	$	78,500	$	77,190		$	54,950
Allen Systems Group, Inc.	(f)(g)(h)(l)(p)	Software & Services	10.5%		11/15/16		38,448		31,201			11,342
Aspect Software, Inc.	(e)	Software & Services	10.6%		5/15/17		6,000		5,992			5,250
Avaya Inc.	(e)(f)(g)	Technology Hardware & Equipment	10.5%		3/1/21		39,250		36,283			33,559
Caesars Entertainment Resort Properties, LLC	(e)(f)(g)	Consumer Services	11.0%		10/1/21		60,138		59,868			52,621
FourPoint Energy, LLC	(f)(g)	Energy	8.0%		12/31/20		70,875		67,916			63,433
FourPoint Energy, LLC	(f)(g)(o)	Energy	8.0%		12/31/20		27,563		27,425			24,668
Global A&T Electronics Ltd.	(h)(j)	Technology Hardware & Equipment	10.0%		2/1/19		9,000		9,000			8,854
JW Aluminum Co.	(f)(g)(h)	Materials	11.5%, 1.0% PIK (1.0% Max PIK)		11/15/17		66,297		65,852			66,297
Logan’s Roadhouse, Inc.	(e)(g)	Consumer Services	10.8%		10/15/17		56,294		47,532			42,572
Sorenson Communications, Inc.	(g)	Telecommunication Services	9.0%		10/31/20		19,898		19,174			19,251
Speedy Cash Intermediate Holdings Corp.	(f)	Diversified Financials	10.8%		5/15/18		5,000		5,065			4,778
Total Senior Secured Bonds									452,498			387,575
Unfunded Bond Commitments									(27,425	)		(27,425	)
Net Senior Secured Bonds									425,073			360,150
Subordinated Debt—19.1%
Alta Mesa Holdings, LP	(e)	Energy	9.6%		10/15/18		11,165		11,091			8,541
Aurora Diagnostics, LLC	(f)(g)	Pharmaceuticals, Biotechnology & Life Sciences	10.8%		1/15/18		18,065		18,094			16,224
Brooklyn Basketball Holdings, LLC	(g)(h)	Consumer Services	L+800		10/25/19		19,873		19,873			19,773
Cadillac Jack, Inc.	(g)(j)	Consumer Services	6.0%, 7.0% PIK (7.0% Max PIK)		5/15/20		53,183		37,953			63,022
Comstock Resources, Inc.	(f)(j)	Energy	9.5%		6/15/20		7,500		7,239			3,216
EV Energy Partners, L.P.	(g)	Energy	8.0%		4/15/19		1,225		1,068			1,124
Flanders Corp.	(f)(g)	Capital Goods	13.8% PIK (13.8% Max PIK)		5/14/18		23,121		23,001			20,578
Flanders Corp.	(g)(h)	Capital Goods	17.5% PIK (17.5% Max PIK)		5/14/18		22,554		21,173			22,554
Global Jet Capital Inc.	(h)	Commercial & Professional Services	15.0%, 0.0% PIK (15.0% Max PIK)		1/30/25		401		401			401
HBC Solutions, Inc.	(h)	Media	12.5% PIK (12.5% Max PIK)		8/4/18		312		312			312
HBC Solutions, Inc.	(h)(o)	Media	12.5% PIK (12.5% Max PIK)		8/4/18		150		150			150

See notes to unaudited consolidated financial statements.

8

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
Jupiter Resources Inc.	(e)(g)(j)	Energy	8.5%		10/1/22	$	6,425	$	5,330		$	5,301
KODA Distribution Group, Inc.	(f)	Materials	11.3%		9/30/19		35,000		34,431			35,044
Lightstream Resources Ltd.	(g)(j)	Energy	8.6%		2/1/20		1,650		1,302			1,196
Mood Media Corp.	(e)(f)(g)(j)	Media	9.3%		10/15/20		43,135		42,160			37,204
NewStar Financial, Inc.	(f)(h)(j)	Diversified Financials	8.3%, 0.0% PIK (8.8% Max PIK)		12/4/24		50,000		35,176			37,750
P.F. Chang’s China Bistro, Inc.	(e)	Consumer Services	10.3%		6/30/20		1,390		1,383			1,449
RKI Exploration & Production, LLC	(e)(g)	Energy	8.5%		8/1/21		8,150		8,150			7,763
Samson Investment Co.	(e)(f)(g)(h)	Energy	9.8%		2/15/20		14,200		13,406			3,976
SandRidge Energy, Inc.	(e)(h)(j)	Energy	8.8%		1/15/20		7,500		6,361			5,081
Sequel Industrial Products Holdings, LLC	(g)	Energy	12.0%, 2.5% PIK (2.5% Max PIK)		9/30/19		7,000		6,915			7,175
Sorenson Communications, Inc.	(g)	Telecommunication Services	13.0%		10/31/21		15,122		14,126			15,122
Talos Production LLC	(g)	Energy	9.8%		2/15/18		1,500		1,373			1,238
ThermaSys Corp.	(f)(g)	Capital Goods	9.0%, 1.8% PIK (5.0% Max PIK)		5/3/20		133,891		133,891			135,230
VPG Group Holdings LLC	(f)	Materials	11.0%, 2.0% PIK (2.0% Max PIK)		7/15/19		5,168		5,168			5,265
Warren Resources, Inc.	(g)	Energy	9.0%		8/1/22		1,000		714			593
Total Subordinated Debt									450,241			455,282
Unfunded Debt Commitments									(150	)		(150	)
Net Subordinated Debt									450,091			455,132
Collateralized Securities—4.6%
ACASC 2013-2A B Class B	(g)(h)(j)	Diversified Financials	8.8%		10/15/23		30,500		24,596			22,452
Dryden CDO 23A Class Subord.	(h)(j)	Diversified Financials	21.1%		7/17/23		10,000		5,456			7,429
JPMorgan Chase Bank, N.A. Credit-Linked Notes	(g)(j)	Diversified Financials	14.3%		12/20/21		16,740		16,663			16,991
NewStar Clarendon 2014-1A Class D	(h)(j)	Diversified Financials	L+435		1/25/27		1,560		1,461			1,458
NewStar Clarendon 2014-1A Class Subord. B	(h)(j)	Diversified Financials	12.5%		1/25/27		17,900		17,713			17,632
Rampart CLO 2007 1A Class Subord.	(h)(j)	Diversified Financials	26.8%		10/25/21		10,000		2,775			5,094
Stone Tower CLO VI Class Subord.	(g)(j)	Diversified Financials	35.5%		4/17/21		5,000		2,035			3,612
Wind River CLO Ltd. 2012 1A Class Subord. B	(h)(j)	Diversified Financials	12.1%		1/15/24		42,504		32,800			35,955
Total Collateralized Securities									103,499			110,623

See notes to unaudited consolidated financial statements.

9

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value(d)
Equity/Other—14.3%(k)
Altus Power America Holdings, LLC, Preferred Equity	(h)(l)	Energy		299,758	$	300	$	480
Amaya Gaming Group Inc., Warrants	(h)(j)(l)	Consumer Services		2,000,000		16,832		33,340
American Energy Appalachia Holdings, LLC, Common Equity	(h)(l)(m)	Energy		10,192,939		9,700		10,193
AP Exhaust Holdings, LLC, Common Equity	(h)(l)(n)	Automobiles & Components		811		811		600
Aquilex Corp., Common Equity, Class A Shares	(f)	Energy		15,128		1,088		4,295
Aquilex Corp., Common Equity, Class B Shares	(f)(g)	Energy		32,637		1,690		9,266
Burleigh Point, Ltd., Warrants	(h)(j)(l)	Retailing		17,256,081		1,898		3,451
CoSentry.Net, LLC, Preferred Equity	(g)(l)	Software & Services		2,632		2,500		5,461
Eastman Kodak Co., Common Equity	(f)(h)(l)	Consumer Durables & Apparel		61,859		1,202		1,175
ERC Ireland Holdings Ltd., Common Equity	(g)(h)(j)(l)	Telecommunication Services		53,356		7,542		9,028
Flanders Corp., Common Equity	(g)(i)(l)	Capital Goods		6,829,973		7,183		6,830
FourPoint Energy, LLC, Common Equity, Class C Units	(h)(l)(n)	Energy		21,000		21,000		26,250
FourPoint Energy, LLC, Common Equity, Class D Units	(h)(l)(n)	Energy		3,937		2,601		4,980
Fronton Investor Holdings, LLC, Class B Units	(h)(l)(n)(t)	Consumer Services		14,943		17,931		16,138
Global Jet Capital Holdings, LP, Preferred Equity	(h)(l)	Commercial & Professional Services		171,832		172		172
HBC Solutions, Inc., Common Equity, Class A Units	(h)(l)	Media		28,285		3,027		4,107
Industrial Group Intermediate Holdings, LLC, Common Equity	(h)(l)(n)	Materials		347,107		347		538
JW Aluminum Co., Common Equity	(g)(l)	Materials		37,500		3,225		—
Leading Edge Aviation Services, Inc., Common Equity	(g)(l)	Capital Goods		4,401		464		102
Leading Edge Aviation Services, Inc., Preferred Equity	(g)(l)	Capital Goods		1,303		1,303		1,303
MB Precision Investment Holdings LLC, Class A-2 Units	(g)(l)	Capital Goods		490,213		490		417
Micronics, Inc., Common Equity	(h)(l)	Capital Goods		53,073		553		1,008
Micronics, Inc., Preferred Equity	(h)(l)	Capital Goods		55		553		657
Milagro Holdings, LLC, Common Equity	(g)(l)	Energy		12,057		50		—
Milagro Holdings, LLC, Preferred Equity	(h)(l)	Energy		283,947		11,180		—
MModal LLC, Common Equity	(h)(l)	Health Care Equipment & Services		56,529		933		763
New Star Metals Inc., Common Equity	(h)	Capital Goods		741,082		750		963
NewStar Financial, Inc., Warrants	(h)(j)(l)(r)	Diversified Financials		3,000,000		15,058		16,800
Plains Offshore Operations Inc., Preferred Equity	(f)(g)	Energy		52,666		62,677		77,335
Plains Offshore Operations Inc., Warrants	(f)(g)(l)	Energy		1,067,481		1,722		5,337
PSAV Holdings LLC, Common Equity	(g)(l)	Technology Hardware & Equipment		10,000		10,000		17,500
Safariland, LLC, Common Equity	(g)(l)	Capital Goods		25,000		2,500		8,748
Safariland, LLC, Preferred Equity	(g)	Capital Goods		2,042		22,654		22,806

See notes to unaudited consolidated financial statements.

10

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value(d)
Safariland, LLC, Warrants	(g)(l)	Capital Goods		4,536	$	473	$	1,587
Sequel Industrial Products Holdings, LLC, Common Equity	(g)(h)(l)	Energy		33,306		3,400		9,069
Sequel Industrial Products Holdings, LLC, Preferred Equity	(g)(h)	Energy		8,000		10,325		10,334
Sequel Industrial Products Holdings, LLC, Warrants	(g)(l)(q)	Energy		1,293		1		196
Sequel Industrial Products Holdings, LLC, Warrants	(h)(l)(q)	Energy		19,388		12		3,341
Sorenson Communications, Inc., Common Equity	(g)(l)	Telecommunication Services		46,163		—		22,925
ThermaSys Corp., Common Equity	(g)(l)	Capital Goods		51,813		1		52
ThermaSys Corp., Preferred Equity	(g)	Capital Goods		51,813		5,181		5,181
VPG Group Holdings LLC, Class A-2 Units	(g)(l)	Materials		3,637,500		3,638		3,638
Total Equity/Other						252,967		346,366
Unfunded Contingent Warrant Commitment	(s)							(5,600	)
Net Equity/Other								340,766
TOTAL INVESTMENTS—174.4%					$	4,148,399		4,161,683
LIABILITIES IN EXCESS OF OTHER ASSETS—(74.4%)								(1,775,971	)
NET ASSETS—100%							$	2,385,712

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

(b) Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of March 31, 2015, the three-month London Interbank Offered Rate, or LIBOR, was 0.27%, the Euro Interbank Offered Rate, or EURIBOR, was 0.02% and the U.S. Prime Lending Rate, or Prime, was 3.25%.

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

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

(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 is pledged as collateral supporting the amounts outstanding under the revolving credit facility with ING Capital LLC (see Note 8).

(i) Position or portion thereof unsettled as of March 31, 2015.

See notes to unaudited consolidated financial statements.

11

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2015

(in thousands, except share amounts)

(j) The investment is not a qualifying asset under the Investment Company Act of 1940, as amended, or the 1940 Act. 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 March 31, 2015, 78.6% 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.

(n) Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company.

(o) Security is an unfunded loan commitment.

(p) Asset is on non-accrual status.

(q) Warrants expire on September 28, 2022 and May 10, 2022 and the strike prices are $121.00 and $100.00 per share, respectively.

(r) Includes 1,000,000 NewStar Financial, Inc., or NewStar, warrants, which is the maximum number of warrants that the Company will forfeit in the event that the Company declines to fund additional subordinated debt investments in NewStar in an amount not to exceed $25,000, upon the request of NewStar.

(s) Represents the maximum number of NewStar warrants that the Company will forfeit in the event that the Company declines to fund additional subordinated debt investments in NewStar in an amount not to exceed $25,000, upon the request of NewStar.

(t) Under the 1940 Act, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns 25% or more of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of March 31, 2015, the Company held one investment in a portfolio company of which it is deemed to be an “affiliated person” but would not be deemed to “control”. The following table presents certain financial information with respect to such portfolio company for the three months ended March 31, 2015:

Portfolio Company	Purchases		Sales and Repayments		Interest Income		Fee Income		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)
Equity/Other
Fronton Investor Holdings, LLC, Class B Units		—		—		—		—		—	$	1,345

See notes to unaudited consolidated financial statements.

12

FS Investment Corporation

Consolidated Schedule of Investments

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Senior Secured Loans—First Lien—93.2%
A.P. Plasman Inc.	(f)(g)(h)(i)(k)	Capital Goods	L+775	1.0%	12/29/19	$	137,875	$	137,875	$	137,875
A.P. Plasman Inc.	(i)(k)(p)	Capital Goods	L+775	1.0%	12/29/19		36,919		36,919		36,919
AccentCare, Inc.	(i)	Health Care Equipment & Services	L+500	1.5%	12/22/16		1,954		1,855		1,712
Allen Systems Group, Inc.	(f)(i)	Software & Services	L+1,425	1.0%	12/14/17		1,539		1,718		1,897
Allen Systems Group, Inc.	(f)(i)	Software & Services	L+1,625	1.0%	12/14/17		36,832		41,114		45,410
Altus Power America, Inc.	(i)	Energy	L+750	1.5%	10/10/21		762		762		762
Altus Power America, Inc.	(i)(p)	Energy	L+750	1.5%	10/10/21		2,363		2,363		2,363
American Racing and Entertainment, LLC	(f)	Consumer Services	L+700		7/1/15		12,500		12,500		12,484
American Racing and Entertainment, LLC	(f)	Consumer Services	9.0%		7/1/15		7,750		7,750		7,769
American Racing and Entertainment, LLC	(f)	Consumer Services	L+800	1.0%	7/1/18		5,495		5,495		5,516
American Racing and Entertainment, LLC	(f)(p)	Consumer Services	L+800	1.0%	7/1/18		1,005		1,005		1,009
AP Exhaust Acquisition, LLC	(h)	Automobiles & Components	L+775	1.5%	1/16/21		14,595		14,595		14,157
Aspect Software, Inc.	(i)	Software & Services	L+550	1.8%	5/7/16		1,172		1,158		1,149
Azure Midstream Energy LLC	(i)	Energy	L+550	1.0%	11/15/18		327		323		294
BenefitMall Holdings, Inc.	(h)	Commercial & Professional Services	L+725	1.0%	11/24/20		15,000		15,000		15,000
BenefitMall Holdings, Inc.	(i)(p)	Commercial & Professional Services	L+725	1.0%	11/24/20		5,455		5,455		5,455
Boomerang Tube, LLC	(i)	Energy	L+950	1.5%	10/11/17		17,864		17,521		15,497
Cadillac Jack, Inc.	(f)(h)(i)(k)	Consumer Services	L+850	1.0%	5/15/19		74,450		73,320		76,590
Caesars Entertainment Operating Co., Inc.	(e)(f)(k)	Consumer Services	L+575		3/1/17		12,621		11,822		11,073
Caesars Entertainment Operating Co., Inc.	(f)(k)	Consumer Services	L+675		3/1/17		2,363		2,266		2,077
Caesars Entertainment Operating Co., Inc.	(e)(f)(g)(i)(k)	Consumer Services	L+875	1.0%	1/28/18		84,594		84,032		73,738
Caesars Entertainment Resort Properties, LLC	(e)(f)(i)	Consumer Services	L+600	1.0%	10/11/20		72,178		68,410		67,727
Corel Corp.	(f)(g)(h)(i)(k)	Software & Services	L+825		6/7/19		151,063		151,063		151,063
Corel Corp.	(i)(k)(p)	Software & Services	Prime+725		6/7/18		10,000		10,000		10,000
Corner Investment PropCo, LLC	(f)(i)	Consumer Services	L+975	1.3%	11/2/19		44,723		44,878		44,500
CoSentry.Net, LLC	(f)(h)(i)	Software & Services	L+800	1.3%	12/31/19		57,945		57,945		58,235
Crestwood Holdings LLC	(i)	Energy	L+600	1.0%	6/19/19		5,452		5,432		5,176
Dent Wizard International Corp.	(f)(h)(i)	Commercial & Professional Services	L+800		4/25/19		123,165		122,252		125,320
Dent Wizard International Corp.	(i)(p)	Commercial & Professional Services	Prime+325		4/25/19		5,000		5,000		5,000
Eastman Kodak Co.	(i)	Consumer Durables & Apparel	L+625	1.0%	9/3/19		10,745		10,572		10,777
Flanders Corp.	(f)(h)	Capital Goods	L+950	1.5%	5/14/18		35,993		35,444		36,218
Fronton Holdings, LLC	(f)	Consumer Services	15.0%		4/30/19		3,736		3,703		3,736
HBC Solutions, Inc.	(f)(g)(i)	Media	L+875	1.5%	2/4/18		84,990		84,990		84,990

See notes to unaudited consolidated financial statements.

13

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor		Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Industrial Group Intermediate Holdings, LLC	(h)	Materials	L+800		1.3%	5/31/20	$	13,894	$	13,894	$	13,894
Industry City TI Lessor, L.P.	(i)	Consumer Services	5.0%, 5.3% PIK (5.3% Max PIK)			6/30/26		24,885		24,885		24,512
Infiltrator Systems, Inc.	(f)(g)(h)(i)	Capital Goods	L+841		1.3%	6/27/18		226,000		225,860		224,870
Intralinks, Inc.	(f)(i)(k)	Software & Services	L+525		2.0%	2/24/19		9,900		9,817		9,776
Lantiq Deutschland GmbH	(f)(i)(k)	Software & Services	L+900		2.0%	11/16/15		7,968		7,781		7,928
Larchmont Resources, LLC	(h)	Energy	L+725		1.0%	8/7/19		5,988		5,940		5,824
Leading Edge Aviation Services, Inc.	(f)(g)(h)(i)	Capital Goods	L+875		1.5%	6/30/19		33,799		33,485		33,292
LEAS Acquisition Co Ltd.	(i)(k)	Capital Goods	L+875		1.5%	6/30/19	€	29,250		40,045		34,864
LEAS Acquisition Co Ltd.	(g)(k)	Capital Goods	L+875		1.5%	6/30/19	$	10,628		10,628		10,468
Maritime Telecommunications Network, Inc.	(f)	Telecommunication Services	L+600		1.5%	3/4/16		3,242		3,230		3,161
MB Precision Holdings LLC	(h)	Capital Goods	L+725		1.3%	1/23/20		13,365		13,365		13,231
Micronics, Inc.	(f)(h)(i)	Capital Goods	L+800		1.3%	3/28/19		43,228		42,893		43,228
MMM Holdings, Inc.	(h)(i)	Health Care Equipment & Services	L+825		1.5%	12/12/17		8,956		8,841		8,687
MModal Inc.	(i)	Health Care Equipment & Services	L+775		1.3%	1/31/20		4,322		4,302		4,241
Mood Media Corp.	(i)(k)	Media	L+600		1.0%	5/1/19		698		692		685
MSO of Puerto Rico, Inc.	(h)(i)	Health Care Equipment & Services	L+825		1.5%	12/12/17		6,511		6,427		6,316
New Star Metals Inc.	(f)(h)(i)	Capital Goods	L+800		1.3%	3/20/20		36,575		36,575		36,575
Nova Wildcat Amerock, LLC	(h)(i)	Consumer Durables & Apparel	L+798		1.3%	9/10/19		20,000		20,000		19,600
Panda Sherman Power, LLC	(f)	Energy	L+750		1.5%	9/14/18		496		500		493
Panda Temple Power, LLC (TLA)	(f)	Energy	L+700		1.5%	7/17/18		2,583		2,582		2,619
PHRC License, LLC	(g)(h)(i)	Consumer Services	L+900		1.5%	8/14/20		45,000		45,000		44,550
Polymer Additives, Inc.	(i)	Materials	L+838		1.0%	12/20/21		10,511		10,510		10,511
Production Resource Group, LLC	(h)(i)	Media	L+750		1.0%	7/23/19		32,500		32,500		32,663
PRV Aerospace, LLC	(i)	Capital Goods	L+525		1.3%	5/9/18		80		80		79
Reddy Ice Holdings, Inc.	(i)	Food & Staples Retailing	L+550		1.3%	5/1/19		1,170		1,160		1,032
Safariland, LLC	(f)(h)(i)	Capital Goods	L+800		1.3%	9/20/19		150,400		150,400		152,656
Shell Topco L.P.	(h)(i)	Materials	L+750		1.5%	9/28/18		30,000		29,698		30,525
Smile Brands Group Inc.	(i)	Health Care Equipment & Services	L+625		1.3%	8/16/19		20,243		19,878		19,383
Sorenson Communications, Inc.	(e)(f)(h)(i)	Telecommunication Services	L+575		2.3%	4/30/20		93,500		93,081		94,435
Southcross Holdings Borrower LP	(i)	Energy	L+500		1.0%	8/4/21		316		314		283
Sports Authority, Inc.	(h)	Consumer Durables & Apparel	L+600		1.5%	11/16/17		6,318		6,321		5,607
Stallion Oilfield Holdings, Inc.	(h)	Energy	L+675		1.3%	6/19/18		4,810		4,775		4,119
SunGard Availability Services Capital, Inc.	(e)	Software & Services	L+500		1.0%	3/29/19		4,975		4,623		4,455

See notes to unaudited consolidated financial statements.

14

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor		Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
Sunnova Asset Portfolio 5 Holdings, LLC.	(i)	Energy	12.0% PIK (12.0% Max PIK)			11/14/21	$	1,803	$	1,803		$	1,803
Sunnova Asset Portfolio 5 Holdings, LLC.	(i)(p)	Energy	12.0% PIK (12.0% Max PIK)			11/14/21		3,200		3,200			3,200
Swiss Watch International, Inc.	(f)(h)(i)	Consumer Durables & Apparel	L+725		1.3%	11/8/18		47,000		46,359			45,355
U.S. Xpress Enterprises, Inc.	(f)(g)	Transportation	L+850, 1.5% PIK (1.5% Max PIK)		1.5%	5/30/19		74,813		74,813			74,813
Virtual Radiologic Corp.	(i)	Health Care Equipment & Services	L+550		1.8%	12/22/16		3,484		3,452			2,645
VPG Group Holdings LLC	(f)(h)(i)	Materials	L+900		1.0%	10/4/16		79,195		78,764			79,393
Waste Pro USA, Inc.	(f)(g)(h)	Commercial & Professional Services	L+750		1.0%	10/15/20		86,889		86,889			86,889
Waste Pro USA, Inc.	(i)(p)	Commercial & Professional Services	L+750		1.0%	10/15/20		9,444		9,444			9,444
Total Senior Secured Loans—First Lien										2,289,343			2,279,592
Unfunded Loan Commitments										(73,386	)		(73,386	)
Net Senior Secured Loans—First Lien										2,215,957			2,206,206
Senior Secured Loans—Second Lien—29.9%
Advance Pierre Foods, Inc.	(e)(f)(g)	Food & Staples Retailing	L+825		1.3%	10/10/17		17,556		17,379			17,292
Affordable Care, Inc.	(f)(g)(i)	Health Care Equipment & Services	L+925		1.3%	12/26/19		44,314		43,893			43,871
Alison US LLC	(i)(k)	Capital Goods	L+850		1.0%	8/29/22		4,444		4,273			4,161
American Energy—Utica, LLC	(f)	Energy	L+400, 5.5% PIK (5.5% Max PIK)		1.5%	9/30/18		79,987		79,987			78,387
American Energy—Utica, LLC	(g)	Energy	L+400, 5.5% PIK (5.5% Max PIK)		1.5%	9/30/18		54,324		54,324			53,238
American Racing and Entertainment, LLC	(g)	Consumer Services	12.0%			7/1/18		16,800		16,380			16,800
BPA Laboratories, Inc.	(i)	Pharmaceuticals, Biotechnology & Life Sciences	2.5%			7/3/17		593		475			526
Brasa (Holdings) Inc.	(f)	Consumer Services	L+950		1.5%	1/20/20		6,211		6,031			6,149
Brock Holdings III, Inc.	(i)	Energy	L+825		1.8%	3/16/18		6,923		6,855			5,573
Byrider Finance, LLC	(g)(i)	Automobiles & Components	L+1000		1.3%	8/22/20		10,000		10,000			10,000
Compuware Corp.	(e)(i)(j)	Software & Services	L+825		1.0%	12/9/22		10,000		8,700			9,250
Consolidated Precision Products Corp.	(f)	Capital Goods	L+775		1.0%	4/30/21		10,925		10,877			10,434
DEI Sales, Inc.	(f)(g)	Commercial & Professional Services	L+900		1.5%	1/15/18		57,500		56,978			55,991
Eastman Kodak Co.	(f)(g)	Consumer Durables & Apparel	L+950		1.3%	9/3/20		50,000		48,918			50,000
Nielsen & Bainbridge, LLC	(i)	Consumer Services	L+925		1.0%	8/15/21		15,000		14,786			14,775

See notes to unaudited consolidated financial statements.

15

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor		Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
OSP Group, Inc.	(f)(g)(i)	Consumer Durables & Apparel	L+800		1.3%	7/31/20	$	145,000	$	145,000		$	144,275
Paw Luxco II Sarl	(g)(k)	Consumer Durables & Apparel	EURIBOR+950			1/29/19	€	16,364		20,200			17,203
Pelican Products, Inc.	(i)	Capital Goods	L+825		1.0%	4/9/21	$	4,222		4,194			4,169
PSAV Acquisition Corp.	(f)(i)	Technology Hardware & Equipment	L+825		1.0%	1/24/22		80,000		78,898			80,500
Sensus USA Inc.	(i)	Capital Goods	L+725		1.3%	5/9/18		3,000		3,027			2,873
Sequential Brands Group, Inc.	(f)	Consumer Durables & Apparel	L+800		1.0%	8/15/20		25,000		25,000			25,000
Stadium Management Corp.	(f)	Consumer Services	L+825		1.0%	2/15/22		57,500		57,500			57,788
Total Senior Secured Loans—Second Lien										713,675			708,255
Senior Secured Bonds—15.2%
Advanced Lighting Technologies, Inc.	(f)(g)	Materials	10.5%			6/1/19		78,500		77,139			52,203
Allen Systems Group, Inc.	(f)(g)(i)(m)(q)	Software & Services	10.5%			11/15/16		38,448		31,201			13,457
Aspect Software, Inc.	(e)	Software & Services	10.6%			5/15/17		6,000		5,991			5,700
Avaya Inc.	(e)(f)(g)	Technology Hardware & Equipment	10.5%			3/1/21		39,250		36,194			33,853
Caesars Entertainment Resort Properties, LLC	(e)(f)(g)	Consumer Services	11.0%			10/1/21		60,138		59,854			55,026
FourPoint Energy, LLC	(f)(g)	Energy	8.0%			12/31/20		70,875		67,690			62,370
FourPoint Energy, LLC	(f)(g)(p)	Energy	8.0%			12/31/20		27,563		27,563			24,255
Global A&T Electronics Ltd.	(i)(k)	Technology Hardware & Equipment	10.0%			2/1/19		9,000		9,000			8,118
JW Aluminum Co.	(f)(g)(i)	Materials	11.5%, 1.0% PIK (1.0% Max PIK)			11/15/17		66,297		65,818			66,297
Logan’s Roadhouse Inc.	(e)(g)	Consumer Services	10.8%			10/15/17		56,294		46,855			41,728
Sorenson Communications, Inc.	(g)	Telecommunication Services	9.0%			10/31/20		19,898		19,158			18,903
Speedy Cash Intermediate Holdings Corp.	(f)	Diversified Financials	10.8%			5/15/18		5,000		5,061			4,928
Total Senior Secured Bonds										451,524			386,838
Unfunded Bond Commitments										(27,563	)		(27,563	)
Net Senior Secured Bonds										423,961			359,275
Subordinated Debt—19.6%
Alta Mesa Holdings, L.P.	(e)	Energy	9.6%			10/15/18		11,165		11,084			9,468
Aurora Diagnostics, LLC	(f)(g)	Pharmaceuticals, Biotechnology & Life Sciences	10.8%			1/15/18		18,065		18,099			15,717
Brooklyn Basketball Holdings, LLC	(g)(i)	Consumer Services	L+800			10/15/19		19,873		19,873			19,674
Cadillac Jack, Inc.	(g)(k)	Consumer Services	6.0%, 7.0% PIK (7.0% Max PIK)			5/15/20		52,268		36,561			54,947
Comstock Resources, Inc.	(f)(k)	Energy	9.5%			6/15/20		7,500		7,232			5,063

See notes to unaudited consolidated financial statements.

16

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
Flanders Corp.	(f)(g)	Capital Goods	13.8% PIK (13.8% Max PIK)		5/14/18	$	22,344	$	22,217		$	19,495
Flanders Corp.	(g)(i)	Capital Goods	17.5% PIK (17.5% Max PIK)		5/14/18		21,595		20,227			21,325
Global Jet Capital, Inc.	(i)	Commercial & Professional Services	8.0% PIK (8.0% Max PIK)		1/30/15		313		313			313
HBC Solutions, Inc.	(i)	Media	12.5% PIK (12.5% Max PIK)		8/4/18		303		303			303
HBC Solutions, Inc.	(i)(p)	Media	12.5% PIK (12.5% Max PIK)		8/4/18		150		150			150
Jupiter Resources, Inc.	(e)(g)(k)	Energy	8.5%		10/1/22		6,425		5,306			4,819
Kinetic Concepts, Inc.	(e)(f)	Health Care Equipment & Services	12.5%		11/1/19		15,000		14,256			16,500
KODA Distribution Group, Inc.	(f)	Materials	11.3%		9/30/19		35,000		34,440			35,000
Lightstream Resources, Ltd.	(g)(k)	Energy	8.6%		2/1/20		1,650		1,290			1,163
Mood Media Corp.	(e)(f)(g)(k)	Media	9.3%		10/15/20		43,135		42,124			35,263
NewStar Financial, Inc.	(f)(i)(k)	Diversified Financials	8.3%, 0.0% PIK (8.8% Max PIK)		12/4/24		50,000		34,997			37,500
P.F. Chang’s China Bistro, Inc.	(e)	Consumer Services	10.3%		6/30/20		1,390		1,384			1,397
RKI Exploration & Production, LLC	(e)(g)	Energy	8.5%		8/1/21		12,550		12,362			10,229
Samson Investment Co.	(e)(f)(g)(i)	Energy	9.8%		2/15/20		14,200		13,397			5,964
Sandridge Energy, Inc.	(e)(i)(k)	Energy	8.8%		1/5/20		7,500		6,321			5,119
Sequel Industrial Products Holdings, LLC	(g)	Energy	12.0%, 2.5% PIK (2.5% Max PIK)		5/10/18		7,000		6,909			7,245
Sidewinder Drilling Inc.	(f)	Energy	9.8%		11/15/19		4,328		4,328			2,532
Sorenson Communications, Inc.	(g)	Telecommunication Services	13.0%		10/31/21		15,122		14,112			15,425
Talos Production, LLC	(g)	Energy	9.8%		2/15/18		1,500		1,364			1,358
ThermaSys Corp.	(f)(g)	Capital Goods	9.0%, 1.8% PIK (5.0% Max PIK)		5/3/20		133,295		133,295			132,628
VPG Group Holdings LLC	(f)	Materials	11.0%, 2.0% PIK (2.0% Max PIK)		7/15/19		5,142		5,142			5,232
Warren Resources, Inc.	(g)	Energy	9.0%		8/1/22		1,000		709			625
Total Subordinated Debt									467,795			464,454
Unfunded Debt Commitments									(150	)		(150	)
Net Subordinated Debt									467,645			464,304

See notes to unaudited consolidated financial statements.

17

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Collateralized Securities—5.2%
ACASC 2013-2A B	(g)(i)(k)	Diversified Financials	8.1%		10/15/23	$	30,500	$	25,488	$	25,338
Dryden CDO 23A Class Subord.	(i)(k)	Diversified Financials	19.1%		7/17/23		10,000		5,810		7,967
JPMorgan Chase Bank, N.A. Credit-Linked Notes	(g)(k)	Diversified Financials	14.3%		12/20/21		16,740		16,594		17,284
Lightpoint CLO 2006 V Class D	(g)(k)	Diversified Financials	L+365		8/5/19		6,500		4,087		6,361
NewStar Clarendon 2014-1A Class D	(i)(j)(k)	Diversified Financials	L+435		1/25/27		1,560		1,461		1,461
NewStar Clarendon 2014-1A Sub B	(i)(j)(k)	Diversified Financials	12.5%		1/25/27		17,900		17,713		17,713
Rampart CLO 2007 1A Class Subord.	(i)(k)	Diversified Financials	24.2%		10/25/21		10,000		2,943		4,997
Stone Tower CLO VI Class Subord.	(g)(k)	Diversified Financials	32.6%		4/17/21		5,000		2,225		3,936
Wind River CLO Ltd. 2012 1A Class Sub B	(i)(k)	Diversified Financials	18.8%		1/15/24		42,504		34,041		38,863
Total Collateralized Securities									110,362		123,920

See notes to unaudited consolidated financial statements.

18

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number  of Shares		Amortized Cost		Fair Value(d)
Equity/Other—13.6%(l)
Altus Power America, Inc., Preferred Equity	(i)(m)	Energy		253,925	$	254	$	254
Amaya Gaming Group Inc., Warrants	(i)(k)(m)	Consumer Services		2,000,000		16,832		35,180
American Energy Appalachia Holdings, LLC	(i)(m)(n)	Energy		9,700,000		9,700		9,700
AP Exhaust Holdings, LLC, Common Equity	(i)(m)(o)	Automobiles & Components		811		811		580
Aquilex Corp., Common Equity, Class A Shares	(f)	Energy		15,128		1,088		4,295
Aquilex Corp., Common Equity, Class B Shares	(f)(g)	Energy		32,637		1,690		9,266
BPA Laboratories, Inc., Series A Warrants	(i)(m)	Pharmaceuticals, Biotechnology & Life Sciences		1,979		—		—
BPA Laboratories, Inc., Series B Warrants	(i)(m)	Pharmaceuticals, Biotechnology & Life Sciences		3,173		—		—
Burleigh Point, Ltd., Warrants	(i)(k)(m)	Retailing		17,256,081		1,898		5,004
CoSentry.Net, LLC, Preferred Equity	(g)(m)	Software & Services		2,632		2,500		4,185
Eastman Kodak Co., Common Equity	(f)(i)(m)	Consumer Durables & Apparel		61,859		1,202		1,343
ERC Ireland Holdings Ltd., Common Equity	(g)(i)(j)(k)(m)	Telecommunication Services		37,547		5,219		5,950
ERC Ireland Holdings Ltd., Warrants	(i)(k)(m)	Telecommunication Services		15,809		2,288		2,505
Flanders Corp., Common Equity	(g)(m)	Capital Goods		6,177,490		6,531		1,853
FourPoint Energy, LLC, Class C Units	(i)(m)(o)	Energy		21,000		21,000		26,775
FourPoint Energy, LLC, Class D Units	(i)(m)(o)	Energy		3,937		2,601		5,059
Fronton Investor Holdings, LLC, Class B Units	(i)(m)(o)(s)	Consumer Services		14,943		17,931		14,793
HBC Solutions, Inc., Common Equity, Class A Units	(i)(m)	Media		26,774		3,027		3,539
Industrial Group Intermediate Holdings, LLC, Common Equity	(i)(m)(o)	Materials		347,107		347		486
JW Aluminum Co., Common Equity	(g)(m)	Materials		37,500		3,225		—
Leading Edge Aviation Services, Inc., Common Equity	(g)(m)	Capital Goods		4,401		464		92
Leading Edge Aviation Services, Inc., Preferred Equity	(g)(m)	Capital Goods		1,303		1,303		1,303
MB Precision Investment Holdings LLC, Class A-2 Units	(g)(m)	Capital Goods		490,213		490		490
Micronics, Inc., Common Equity	(i)(m)	Capital Goods		53,073		553		918
Micronics, Inc., Preferred Equity	(i)(m)	Capital Goods		55		553		553
Milagro Holdings, LLC, Common Equity	(g)(m)	Energy		12,057		50		—
Milagro Holdings, LLC, Preferred Equity	(i)(m)	Energy		283,947		11,180		525
MModal Inc., Common Equity	(i)(m)	Health Care Equipment & Services		56,529		933		850
New Star Metals Inc., Common Equity	(i)	Capital Goods		741,082		750		963
NewStar Financial, Inc., Warrants	(i)(k)(m)	Diversified Financials		2,375,000		15,058		15,675
Plains Offshore Operations Inc., Preferred Equity	(f)(g)	Energy		50,000		61,722		66,778
Plains Offshore Operations Inc., Warrants	(f)(g)(m)	Energy		1,067,481		1,722		2,028

See notes to unaudited consolidated financial statements.

19

FS Investment Corporation

Consolidated Schedule of Investments (continued)

As of December 31, 2014

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number  of Shares		Amortized Cost		Fair Value(d)
PSAV Holdings LLC, Common Equity	(g)(m)	Technology Hardware & Equipment		10,000	$	10,000	$	15,000
Safariland, LLC, Common Equity	(g)(m)	Capital Goods		25,000		2,500		10,220
Safariland, LLC, Preferred Equity	(g)	Capital Goods		2,042		22,284		22,578
Safariland, LLC, Warrants	(g)(m)	Capital Goods		4,536		473		1,854
Sequel Industrial Products Holdings, LLC, Common Equity	(g)(i)(m)	Energy