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, 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 242,847,016 shares of the registrant’s common stock outstanding as of November 6, 2015.

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS		1
	Consolidated Balance Sheets as of September 30, 2015 (Unaudited) and December 31, 2014		1
	Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2015 and 2014		2
	Unaudited Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2015 and 2014		3
	Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2015 and 2014		4
	Consolidated Schedules of Investments as of September 30, 2015 (Unaudited) and December 31, 2014		5
	Notes to Unaudited Consolidated Financial Statements		23
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		58
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		85
ITEM 4.	CONTROLS AND PROCEDURES		86
PART II—OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS		87
ITEM 1A.	RISK FACTORS		87
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS		87
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES		87
ITEM 4.	MINE SAFETY DISCLOSURES		87
ITEM 5.	OTHER INFORMATION		87
ITEM 6.	EXHIBITS		88
	SIGNATURES		92

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FS Investment Corporation

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

	September 30, 2015			December 31,
	(Unaudited)			2014
Assets
Investments, at fair value—unaffiliated (amortized cost—$4,059,093 and $4,164,166, respectively)	$	3,975,021		$	4,168,654
Investments, at fair value—affiliated (amortized cost—$91,581 and $17,931, respectively)		125,058			14,793
Cash		85,609			95,205
Foreign currency, at fair value (cost—$325 and $1,661, respectively)		326			1,639
Receivable for investments sold and repaid		24,221			8,976
Interest receivable		50,419			51,814
Deferred financing costs		3,281			13,097
Prepaid expenses and other assets		969			708
Total assets	$	4,264,904		$	4,354,886
Liabilities
Payable for investments purchased	$	—		$	28,095
Credit facilities payable		31,812			188,827
Unsecured notes payable		989,159			725,000
Repurchase agreement payable(1)		800,000			950,000
Stockholder distributions payable		53,965			17,885
Management fees payable		18,845			19,560
Accrued capital gains incentive fees(2)		2,657			21,075
Subordinated income incentive fees payable(2)		12,490			13,089
Administrative services expense payable		401			1,410
Interest payable		18,417			15,850
Directors’ fees payable		219			296
Deferred financing costs payable		—			473
Other accrued expenses and liabilities		980			6,340
Total liabilities		1,928,945			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, 242,274,372 and 240,896,559 shares issued and outstanding, respectively		242			241
Capital in excess of par value		2,272,178			2,258,548
Accumulated undistributed net realized gain/loss on investments and gain/loss on foreign currency(4)		(43,105	)		33,758
Accumulated undistributed (distributions in excess of) net investment income(4)		150,183			68,658
Net unrealized appreciation (depreciation) on investments and unrealized gain/loss on foreign currency		(43,539	)		5,781
Total stockholders’ equity		2,335,959			2,366,986
Total liabilities and stockholders’ equity	$	4,264,904		$	4,354,886
Net asset value per share of common stock at period end	$	9.64		$	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						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Investment income
Interest income—unaffiliated	$	99,468		$	104,823		$	319,180		$	311,630
Interest income—affiliated		910			—			1,628			—
Fee income—unaffiliated		3,290			10,606			33,707			39,141
Dividend income—unaffiliated		—			488			5,519			663
Total investment income		103,668			115,917			360,034			351,434
Operating expenses
Management fees(1)		18,852			20,000			56,993			65,066
Capital gains incentive fees(2)		(13,811	)		(910	)		(18,418	)		6,194
Subordinated income incentive fees(2)		12,485			14,794			47,661			45,033
Administrative services expenses		900			1,202			2,773			3,591
Stock transfer agent fees		30			4			140			1,001
Accounting and administrative fees		261			172			822			824
Interest expense		19,352			18,940			55,699			45,769
Directors’ fees		232			266			688			795
Listing advisory fees		—			—			—			5,043
Other general and administrative expenses		1,601			1,346			4,737			7,002
Total operating expenses		39,902			55,814			151,095			180,318
Management fee waiver(1)		—			—			—			(2,837	)
Net expenses		39,902			55,814			151,095			177,481
Net investment income		63,766			60,103			208,939			173,953
Realized and unrealized gain/loss
Net realized gain (loss) on investments—unaffiliated		(21,246	)		5,421			(42,135	)		25,959
Net realized gain (loss) on foreign currency		266			(338	)		(631	)		(243	)
Net change in unrealized appreciation (depreciation) on investments—unaffiliated		(74,848	)		(8,901	)		(88,560	)		6,140
Net change in unrealized appreciation (depreciation) on investments—affiliated		27,220			(747	)		36,615			(1,046	)
Net change in unrealized gain (loss) on foreign currency		(437	)		61			2,625			207
Total net realized and unrealized gain (loss) on investments		(69,045	)		(4,504	)		(92,086	)		31,017
Net increase (decrease) in net assets resulting from operations	$	(5,279	)	$	55,599		$	116,853		$	204,970
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)	$	(0.02	)	$	0.23		$	0.48		$	0.81
Weighted average shares outstanding		242,227,762			239,548,922			241,659,230			251,603,035

(1) See Note 4 for a discussion of the waiver by FB Income Advisor, LLC, the Company’s investment adviser, of certain management fees to which it was otherwise entitled during the nine months ended September 30, 2014.

(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.

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,
	2015			2014
Operations
Net investment income (loss)	$	208,939		$	173,953
Net realized gain (loss) on investments and foreign currency		(42,766	)		25,716
Net change in unrealized appreciation (depreciation) on investments		(51,945	)		5,094
Net change in unrealized gain (loss) on foreign currency		2,625			207
Net increase (decrease) in net assets resulting from operations		116,853			204,970
Stockholder distributions(1)
Distributions from net investment income		(127,414	)		(118,620	)
Distributions from net realized gain on investments		(34,097	)		(71,629	)
Net decrease in net assets resulting from stockholder distributions		(161,511	)		(190,249	)
Capital share transactions(2)
Reinvestment of stockholder distributions		13,631			48,974
Repurchases of common stock		—			(258,903	)
Net increase (decrease) in net assets resulting from capital share transactions		13,631			(209,929	)
Total increase (decrease) in net assets		(31,027	)		(195,208	)
Net assets at beginning of period		2,366,986			2,640,992
Net assets at end of period	$	2,335,959		$	2,445,784
Accumulated undistributed (distributions in excess of) net investment income(1)	$	150,183		$	90,655

(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)

	Nine Months Ended
	September 30,
	2015			2014
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	116,853		$	204,970
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
Purchases of investments		(1,084,274	)		(1,641,221	)
Paid-in-kind interest		(15,236	)		(10,376	)
Proceeds from sales and repayments of investments		1,114,231			1,523,890
Net realized (gain) loss on investments		42,135			(25,959	)
Net change in unrealized (appreciation) depreciation on investments		51,945			(5,094	)
Accretion of discount		(25,433	)		(20,183	)
Amortization of deferred financing costs and discount		2,788			4,464
Unrealized (gain)/loss on borrowings in foreign currency		(2,804	)		—
(Increase) decrease in receivable for investments sold and repaid		(15,245	)		17,220
(Increase) decrease in interest receivable		1,395			(5,028	)
(Increase) decrease in prepaid expenses and other assets		(261	)		(877	)
Increase (decrease) in payable for investments purchased		(28,095	)		82,002
Increase (decrease) in management fees payable		(715	)		(2,691	)
Increase (decrease) in accrued capital gains incentive fees		(18,418	)		4,604
Increase (decrease) in subordinated income incentive fees payable		(599	)		491
Increase (decrease) in administrative services expense payable		(1,009	)		(165	)
Increase (decrease) in interest payable		2,567			2,238
Increase (decrease) in directors’ fees payable		(77	)		38
Increase (decrease) in other accrued expenses and liabilities		(5,360	)		(4,991	)
Net cash provided by (used in) operating activities		134,388			123,332
Cash flows from financing activities
Reinvestment of stockholder distributions		13,631			48,974
Repurchases of common stock		—			(258,903	)
Stockholder distributions		(125,431	)		(191,101	)
Borrowings under credit facilities(1)		114,200			288,686
Borrowings under unsecured notes(1)		275,000			400,000
Repayments of credit facilities(1)		(268,411	)		(448,074	)
Repayments under repurchase agreement(2)		(150,000	)		—
Deferred financing costs paid		(4,286	)		(10,258	)
Net cash provided by (used in) financing activities		(145,297	)		(170,676	)
Total increase (decrease) in cash		(10,909	)		(47,344	)
Cash and foreign currency at beginning of period		96,844			227,328
Cash and foreign currency at end of period	$	85,935		$	179,984
Supplemental disclosure
Local and excise taxes paid	$	5,638		$	5,407

(1) See Note 8 for a discussion of the Company’s credit facilities and unsecured notes. During the nine months ended September 30, 2015 and 2014, the Company paid $27,851 and $15,653, 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 nine months ended September 30, 2015 and 2014, the Company paid $22,493 and $23,414, 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, 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—83.0%
A.P. Plasman Inc.	(e)(f)(g)(h)	Capital Goods	L+775	1.0%	12/29/19	$	171,584	$	171,584	$	172,871
Allen Systems Group, Inc.	(e)(g)(p)	Software & Services	L+789, 1.2% PIK (1.2% Max PIK)	1.0%	4/30/20		37,826		37,826		38,204
Altus Power America, Inc.	(g)	Energy	L+750	1.5%	10/10/21		1,474		1,474		1,489
Altus Power America, Inc.	(g)(m)	Energy	L+750	1.5%	10/10/21		1,651		1,651		1,667
American Racing and Entertainment, LLC	(e)	Consumer Services	L+800	1.0%	7/1/18		5,750		5,750		5,793
AP Exhaust Acquisition, LLC	(f)(g)	Automobiles & Components	L+775	1.5%	1/16/21		15,811		15,811		15,811
Aspect Software, Inc.	(g)	Software & Services	L+550	1.8%	5/7/16		1,161		1,153		1,138
Atlas Aerospace LLC	(g)	Capital Goods	L+807	1.0%	5/8/19		20,000		20,000		19,900
Atlas Aerospace LLC	(g)(m)	Capital Goods	L+750	1.0%	5/8/19		7,619		7,619		7,581
BenefitMall Holdings, Inc.	(g)	Commercial & Professional Services	L+725	1.0%	11/24/20		14,888		14,888		14,888
BenefitMall Holdings, Inc.	(g)(m)	Commercial & Professional Services	L+725	1.0%	11/24/20		5,455		5,455		5,455
Blue Coat Holdings, Inc.	(g)(m)	Technology Hardware & Equipment	L+350	1.0%	5/20/20		2,136		2,136		2,103
Blueprint Sub, Inc.	(e)	Software & Services	L+750	1.0%	5/7/21		26,954		26,954		26,954
Blueprint Sub, Inc.	(g)(m)	Software & Services	L+750	1.0%	5/7/21		3,509		3,509		3,509
Blueprint Sub, Inc.	(g)(m)	Software & Services	L+450	1.0%	5/7/21		1,404		1,404		1,404
Cadence Aerospace Finance, Inc.	(g)	Capital Goods	L+525	1.3%	5/9/18		76		76		75
Caesars Entertainment Operating Co., Inc.	(e)(g)(h)(j)	Consumer Services	L+575		3/1/17		12,621		12,141		11,192
Caesars Entertainment Operating Co., Inc.	(e)(h)(j)	Consumer Services	L+675		3/1/17		2,363		2,298		2,117
Caesars Entertainment Operating Co., Inc.	(e)(f)(g)(h)(j)	Consumer Services	L+875	1.0%	3/1/17		84,594		84,135		72,689
Caesars Entertainment Resort Properties, LLC	(e)(g)	Consumer Services	L+600	1.0%	10/11/20		22,125		21,086		20,726
Corel Corp.	(e)(f)(g)(h)	Software & Services	L+825		6/7/19		135,933		135,933		137,462
Corel Corp.	(g)(h)(m)	Software & Services	Prime+725		6/7/18		10,000		10,000		10,000
Corner Investment PropCo, LLC	(e)(g)	Consumer Services	L+975	1.3%	11/2/19		43,062		43,208		42,416
CoSentry.Net, LLC	(e)(g)	Software & Services	L+800	1.3%	12/31/19		62,490		62,490		62,881
Crestwood Holdings LLC	(g)	Energy	L+600	1.0%	6/19/19		5,235		5,219		4,685
Eastman Kodak Co.	(g)	Consumer Durables & Apparel	L+625	1.0%	9/3/19		10,664		10,512		10,261
Flanders Corp.	(e)(g)	Capital Goods	L+950	1.5%	5/14/18		34,493		34,032		35,355
Fronton Holdings, LLC	(e)	Consumer Services	15.0%		4/30/19		3,736		3,706		3,736
Greystone Bridge Manager LLC	(g)(h)	Diversified Financials	L+1050		5/1/20		2,101		2,101		2,080
Greystone Bridge Manager LLC	(g)(h)(m)	Diversified Financials	L+1050		5/1/20		1,855		1,855		1,837
Gruden Acquisition, Inc.	(g)	Transportation	L+475	1.0%	8/18/22		3,545		3,510		3,504

See notes to unaudited consolidated financial statements.

5

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
H.M. Dunn Co., Inc.	(g)	Capital Goods	L+809	1.0%	3/26/21	$	1,000	$	1,000	$	1,000
H.M. Dunn Co., Inc.	(g)(m)	Capital Goods	L+725	1.0%	3/26/21		357		357		357
Imagine Communications Corp.	(e)(f)(g)	Media	L+825	1.0%	4/29/20		105,782		105,782		105,782
Imagine Communications Corp.	(g)(m)	Media	L+825	1.0%	4/29/20		30,000		30,000		30,000
Industrial Group Intermediate Holdings, LLC	(g)	Materials	L+800	1.3%	5/31/20		13,572		13,572		13,572
Industry City TI Lessor, L.P.	(g)	Consumer Services	5.0%, 5.3% PIK (5.3% Max PIK)		6/30/26		25,466		25,466		27,121
JSS Holdings, Inc.	(g)	Capital Goods	L+650	1.0%	8/31/21		2,000		1,861		1,970
JW Aluminum Co.	(g)	Materials	L+750	1.0%	5/15/17		1,160		1,160		1,160
Latham Pool Products, Inc.	(e)	Commercial & Professional Services	L+775	1.0%	6/29/21		70,000		70,000		69,300
Leading Edge Aviation Services, Inc.	(e)(f)(g)	Capital Goods	L+875	1.5%	6/30/19		32,415		32,167		31,929
LEAS Acquisition Co Ltd.	(g)(h)	Capital Goods	L+875	1.5%	6/30/19	€	28,125		38,505		30,922
LEAS Acquisition Co Ltd.	(f)(h)	Capital Goods	L+875	1.5%	6/30/19	$	10,219		10,219		10,065
MB Precision Holdings LLC	(g)	Capital Goods	L+725	1.3%	1/23/20		12,889		12,889		12,760
Micronics, Inc.	(e)(g)	Capital Goods	L+800	1.3%	12/11/19		64,272		63,986		64,272
Micronics, Inc.	(g)(m)	Capital Goods	L+800	1.3%	12/11/19		13,500		13,500		13,500
MMM Holdings, Inc.	(g)	Health Care Equipment & Services	L+825	1.5%	12/12/17		8,414		8,331		6,408
MSO of Puerto Rico, Inc.	(g)	Health Care Equipment & Services	L+825	1.5%	12/12/17		6,117		6,056		4,658
New Star Metals Inc.	(e)(g)	Capital Goods	L+800	1.3%	3/20/20		36,275		36,275		35,912
Nobel Learning Communities, Inc.	(g)	Consumer Services	L+845	1.0%	4/27/21		1,056		1,056		1,052
Nobel Learning Communities, Inc.	(g)(m)	Consumer Services	L+450	1.0%	4/27/20		140		140		140
Nova Wildcat Amerock, LLC	(g)	Consumer Durables & Apparel	L+316, 5.4% PIK (5.4% Max PIK)	1.3%	9/10/19		18,580		18,580		16,536
PHRC License, LLC	(f)(g)	Consumer Services	L+900	1.5%	8/14/20		44,689		44,689		44,689
Polymer Additives, Inc.	(g)	Materials	L+838	1.0%	12/20/21		10,511		10,511		10,643
Reddy Ice Corp.	(g)	Food, Beverage & Tobacco	L+550	1.3%	5/1/19		1,161		1,153		968
Roadrunner Intermediate Acquisition Co., LLC	(e)(f)(g)	Health Care Equipment & Services	L+800	1.0%	9/22/21		37,000		37,000		37,000
Rogue Wave Software, Inc.	(e)(f)(g)	Software & Services	L+857	1.0%	9/25/21		31,313		31,313		31,313
Safariland, LLC	(e)(g)	Capital Goods	L+800	1.3%	9/20/19		172,976		172,976		177,300
Shell Topco L.P.	(g)	Materials	L+750	1.5%	9/28/18		30,000		29,750		30,150
Smile Brands Group Inc.	(g)	Health Care Equipment & Services	L+625	1.3%	8/16/19		20,090		19,777		14,121
Sorenson Communications, Inc.	(e)(g)	Telecommunication Services	L+575	2.3%	4/30/20		92,795		92,426		93,259
Southcross Holdings Borrower LP	(g)	Energy	L+500	1.0%	8/4/21		313		312		238

See notes to unaudited consolidated financial statements.

6

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity		Principal Amount(c)		Amortized Cost			Fair Value(d)
Spencer Gifts LLC	(g)	Retailing	L+425	1.0%		7/16/21	$	998	$	993		$	985
Sports Authority, Inc.	(g)	Retailing	L+600	1.5%		11/16/17		6,318		6,321			4,848
Stallion Oilfield Holdings, Inc.	(g)	Energy	L+675	1.3%		6/19/18		4,773		4,745			3,476
SunGard Availability Services Capital, Inc.	(g)	Software & Services	L+500	1.0%		3/29/19		4,424		4,159			3,777
Sunnova Asset Portfolio 5 Holdings, LLC	(g)	Energy	12.0% PIK (12.0% Max PIK)			11/14/21		6,814		6,814			6,814
Sunnova Asset Portfolio 5 Holdings, LLC	(g)(m)	Energy	12.0% PIK (12.0% Max PIK)			11/14/21		517		517			517
Swiss Watch International, Inc.	(e)(g)	Consumer Durables & Apparel	L+725	1.3%		11/8/18		41,375		40,890			35,169
Transplace Texas, LP	(e)(f)	Transportation	L+747	1.0%		9/16/21		20,000		20,000			20,000
U.S. Xpress Enterprises, Inc.	(e)(f)	Transportation	L+1000, 0.0% PIK (1.5% Max PIK)	1.5%		5/30/19		68,082		68,082			68,422
Vertellus Performance Chemicals LLC	(f)(g)	Materials	L+950	1.0%		1/30/20		38,000		38,000			37,210
VPG Group Holdings LLC	(e)(g)	Materials	L+900	1.0%		10/4/18		73,945		73,695			73,483
Warren Resources, Inc.	(f)(g)	Energy	L+850	1.0%		5/22/20		3,157		3,157			2,904
Warren Resources, Inc.	(g)(m)	Energy	L+850	1.0%		5/22/20		431		431			397
Waste Pro USA, Inc.	(e)(f)(g)	Commercial & Professional Services	L+750	1.0%		10/15/20		86,237		86,237			87,531
Waste Pro USA, Inc.	(g)(m)	Commercial & Professional Services	L+750	1.0%		10/15/20		9,444		9,444			9,586
Weight Watchers International, Inc.	(g)(h)	Consumer Services	L+300			4/2/16		5,786		5,268			5,257
Zeta Interactive Holdings Corp.	(g)	Software & Services	L+750	1.0%		7/9/21		8,000		8,000			7,985
Zeta Interactive Holdings Corp.	(g)(m)	Software & Services	L+750	1.0%		7/9/21		4,571		4,571			4,563
Total Senior Secured Loans—First Lien										2,061,649			2,030,804
Unfunded Loan Commitments										(92,589	)		(92,589	)
Net Senior Secured Loans—First Lien										1,969,060			1,938,215
Senior Secured Loans—Second Lien—37.8%
AdvancePierre Foods, Inc.	(e)(f)(g)	Food, Beverage & Tobacco	L+825	1.3%		10/10/17		17,556		17,418			17,578
Affordable Care, Inc.	(e)(f)(g)	Health Care Equipment & Services	L+925	1.3%		12/26/19		34,314		34,018			33,971
Alison US LLC	(g)(h)	Capital Goods	L+850	1.0%		8/29/22		4,444		4,282			3,837
American Racing and Entertainment, LLC	(f)	Consumer Services	12.0%			7/1/18		5,800		5,679			5,844
AP Exhaust Acquisition, LLC	(f)	Automobiles & Components	12.0%			9/28/21		3,243		3,243			3,243
Arena Energy, LP	(g)	Energy	L+900	1.0%		1/24/21		5,000		5,000			4,816

See notes to unaudited consolidated financial statements.

7

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Ascent Resources - Utica, LLC	(e)(f)(g)	Energy	L+950, 2.0% PIK (2.0% Max PIK)	1.5%	9/30/18	$	182,161	$	181,334	$	172,142
Brock Holdings III, Inc.	(g)	Energy	L+825	1.8%	3/16/18		6,923		6,869		6,490
Byrider Finance, LLC	(f)(g)	Automobiles & Components	L+1000	1.3%	8/22/20		10,000		10,000		9,800
Compuware Corp.	(g)	Software & Services	L+825	1.0%	12/15/22		6,550		5,871		5,928
DEI Sales, Inc.	(e)(f)	Consumer Durables & Apparel	L+900	1.5%	1/15/18		57,500		57,084		54,266
EagleView Technology Corp.	(g)	Software & Services	L+825	1.0%	7/14/23		11,538		11,368		11,135
Eastman Kodak Co.	(e)(f)	Consumer Durables & Apparel	L+950	1.3%	9/3/20		50,000		49,023		48,375
FullBeauty Brands, Inc.	(e)(f)(g)	Consumer Durables & Apparel	L+800	1.3%	9/17/21		165,000		165,000		165,000
Gruden Acquisition, Inc.	(g)	Transportation	L+850	1.0%	8/18/23		15,000		14,259		14,325
National Surgical Hospitals, Inc.	(e)	Health Care Equipment & Services	L+900	1.0%	6/1/23		30,000		30,000		29,489
Nielsen & Bainbridge, LLC	(g)	Consumer Durables & Apparel	L+925	1.0%	8/15/21		16,675		16,443		16,425
Paw Luxco II Sarl	(f)(h)	Consumer Durables & Apparel	EURIBOR+950		1/29/19	€	16,364		20,448		13,950
PSAV Acquisition Corp.	(e)(g)	Technology Hardware & Equipment	L+825	1.0%	1/24/22	$	80,000		78,979		80,000
Sequential Brands Group, Inc.	(e)(h)	Consumer Durables & Apparel	L+900	1.0%	4/8/21		60,124		60,124		60,124
Spencer Gifts LLC	(e)(g)	Retailing	L+825	1.0%	6/29/22		60,000		59,712		59,100
Stadium Management Corp.	(e)	Consumer Services	L+825	1.0%	2/27/21		57,500		57,500		57,788
Stardust Finance Holdings, Inc.	(g)(h)	Materials	L+950	1.0%	3/13/23		9,875		9,834		9,814
Total Senior Secured Loans—Second Lien									903,488		883,440
Senior Secured Bonds—14.1%
Advanced Lighting Technologies, Inc.	(f)(g)	Materials	10.5%		6/1/19		78,500		77,314		49,455
Aspect Software, Inc.	(f)(g)	Software & Services	10.6%		5/15/17		8,500		8,412		7,480
Avaya Inc.	(e)(f)(g)	Technology Hardware & Equipment	10.5%		3/1/21		49,800		45,435		23,033
Caesars Entertainment Resort Properties, LLC	(e)(g)	Consumer Services	11.0%		10/1/21		29,248		28,992		26,725
FourPoint Energy, LLC	(e)(f)	Energy	8.0%		12/31/20		92,531		89,646		81,428
FourPoint Energy, LLC	(f)(m)	Energy	8.0%		12/31/20		5,906		5,877		5,198
Global A&T Electronics Ltd.	(g)(h)	Semiconductors & Semiconductor Equipment	10.0%		2/1/19		7,000		6,932		5,635
JW Aluminum Co.	(e)(f)(g)	Materials	11.5%, 1.0% PIK (1.0% Max PIK)		11/15/17		70,462		70,193		65,617
Lightstream Resources Ltd.	(f)(h)	Energy	9.9%		6/15/19		2,112		2,112		1,811
Logan’s Roadhouse, Inc.	(f)(g)	Consumer Services	10.8%		10/15/17		56,294		48,926		39,089

See notes to unaudited consolidated financial statements.

8

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
SandRidge Energy, Inc.	(g)	Energy	8.8%		6/1/20	$	19,500	$	19,455		$	11,919
Sorenson Communications, Inc.	(f)	Telecommunication Services	9.0%		10/31/20		19,898		19,223			19,202
Total Senior Secured Bonds									422,517			336,592
Unfunded Bond Commitments									(5,877	)		(5,877	)
Net Senior Secured Bonds									416,640			330,715
Subordinated Debt—19.0%
Alta Mesa Holdings, LP	(g)	Energy	9.6%		10/15/18		11,165		11,099			5,923
Aurora Diagnostics, LLC	(e)(f)	Health Care Equipment & Services	10.8%		1/15/18		18,065		18,089			14,271
Bellatrix Exploration Ltd.	(g)(h)	Energy	8.5%		5/15/20		5,000		4,906			3,881
Brooklyn Basketball Holdings, LLC	(f)(g)	Consumer Services	L+725		10/25/19		19,873		19,873			19,773
CEC Entertainment, Inc.	(f)	Consumer Services	8.0%		2/15/22		5,000		5,012			4,950
Ceridian Corp.	(f)(g)	Commercial & Professional Services	11.0%		3/15/21		10,800		11,377			9,896
EV Energy Partners, L.P.	(f)(h)	Energy	8.0%		4/15/19		265		236			184
Flanders Corp.	(e)(f)	Capital Goods	13.8% PIK (13.8% Max PIK)		5/14/18		24,785		24,680			23,236
Flanders Corp.	(f)(g)	Capital Goods	17.5% PIK (17.5% Max PIK)		5/14/18		24,636		23,320			25,437
Frontier Communications Corp.	(g)(h)	Telecommunication Services	11.0%		9/15/25		5,250		5,250			5,083
Global Jet Capital Inc.	(g)	Commercial & Professional Services	15.0%, 0.0% PIK (15.0% Max PIK)		1/30/25		620		620			620
Global Jet Capital Inc.	(g)	Commercial & Professional Services	15.0%, 0.0% PIK (15.0% Max PIK)		4/30/25		4,826		4,826			4,826
Global Jet Capital Inc.	(g)	Commercial & Professional Services	15.0%, 0.0% PIK (15.0% Max PIK)		9/3/25		875		875			875
Global Jet Capital Inc.	(g)	Commercial & Professional Services	15.0%, 0.0% PIK (15.0% Max PIK)		9/29/25		999		999			999
Imagine Communications Corp.	(g)	Media	12.5% PIK (12.5% Max PIK)		8/4/18		501		501			501
Jupiter Resources Inc.	(f)(g)(h)	Energy	8.5%		10/1/22		6,425		5,377			3,831
KODA Distribution Group, Inc.	(e)	Materials	11.3%		9/30/19		49,500		48,714			49,809
Mood Media Corp.	(f)(g)(h)	Media	9.3%		10/15/20		43,135		42,225			31,165
Navistar International Corp.	(f)(h)	Capital Goods	8.3%		11/1/21		8,345		8,158			6,676

See notes to unaudited consolidated financial statements.

9

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
NewStar Financial, Inc.	(g)(h)	Diversified Financials	8.3%, 0.0% PIK (8.8% Max PIK)		12/4/24	$	62,500	$	48,052	$	46,875
P.F. Chang’s China Bistro, Inc.	(f)(g)	Consumer Services	10.3%		6/30/20		11,433		11,829		11,462
PriSo Acquisition Corp.	(g)	Capital Goods	9.0%		5/15/23		6,000		5,941		5,910
Sequel Industrial Products Holdings, LLC	(f)	Commercial & Professional Services	12.0%, 2.5% PIK (2.5% Max PIK)		9/30/19		7,000		6,922		7,175
Sorenson Communications, Inc.	(f)	Telecommunication Services	13.0%		10/31/21		15,122		14,173		15,727
SunGard Availability Services Capital, Inc.	(f)(g)	Software & Services	8.8%		4/1/22		10,750		8,020		6,880
ThermaSys Corp.	(e)(f)	Capital Goods	9.0%, 1.8% PIK (5.0% Max PIK)		5/3/20		135,072		135,072		132,033
VPG Group Holdings LLC	(e)	Materials	11.0%, 2.0% PIK (2.0% Max PIK)		7/15/19		5,221		5,221		5,044
Total Subordinated Debt									471,367		443,042
Collateralized Securities—4.4%
ACASC 2013-2A Class Subord. B	(f)(g)(h)	Diversified Financials	9.8%		10/25/25		30,500		22,393		21,211
Dryden CDO 23A Class Subord.	(g)(h)	Diversified Financials	22.5%		7/17/23		10,000		4,913		5,849
JPMorgan Chase Bank, N.A. Credit-Linked Notes	(f)(h)	Diversified Financials	14.0%		12/20/21		16,740		16,705		16,531
NewStar Clarendon 2014-1A Class D	(g)(h)	Diversified Financials	L+435		1/25/27		1,560		1,461		1,454
NewStar Clarendon 2014-1A Class Subord. B	(g)(h)	Diversified Financials	13.4%		1/25/27		17,900		16,948		16,219
Rampart CLO 2007 1A Class Subord.	(g)(h)	Diversified Financials	30.4%		10/25/21		10,000		2,609		4,276
Stone Tower CLO VI Class Subord.	(f)(h)	Diversified Financials	36.2%		4/17/21		5,000		1,878		3,151
Wind River CLO Ltd. 2012 1A Class Subord. B	(g)(h)	Diversified Financials	14.7%		1/15/24		42,504		31,171		34,370
Total Collateralized Securities									98,078		103,061

See notes to unaudited consolidated financial statements.

10

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value(d)
Equity/Other—17.2%(i)
Allen Systems Group, Inc., Common Equity	(g)(j)(p)	Software & Services		1,689,767	$	36,422	$	68,774
Altus Power America Holdings, LLC, Preferred Equity	(g)(j)	Energy		491,425		491		885
Amaya Inc., Warrants, 5/15/2024	(g)(h)(j)	Consumer Services		2,000,000		16,832		24,560
AP Exhaust Holdings, LLC, Common Equity	(g)(j)(l)	Automobiles & Components		811		811		584
Aquilex Corp., Common Equity, Class A Shares	(e)	Commercial & Professional Services		15,128		1,088		4,050
Aquilex Corp., Common Equity, Class B Shares	(e)(f)	Commercial & Professional Services		32,637		1,690		8,737
Ascent Resources Utica Holdings, LLC, Common Equity	(g)(j)(k)	Energy		10,192,939		9,700		6,625
Burleigh Point, Ltd., Warrants, 7/16/2020	(g)(h)(j)	Retailing		17,256,081		1,898		3,624
CoSentry.Net, LLC, Preferred Equity	(f)(j)	Software & Services		2,632		2,500		4,424
Eastman Kodak Co., Common Equity	(e)(g)(j)	Consumer Durables & Apparel		61,859		1,202		966
Flanders Corp., Common Equity	(f)(j)	Capital Goods		6,829,973		7,183		8,196
FourPoint Energy, LLC, Common Equity, Class C Units	(g)(j)(l)	Energy		21,000		21,000		25,515
FourPoint Energy, LLC, Common Equity, Class D Units	(g)(j)(l)	Energy		3,937		2,601		4,823
Fronton Investor Holdings, LLC, Class B Units	(g)(j)(l)(p)	Consumer Services		14,943		17,333		18,080
Global Jet Capital Holdings, LP, Preferred Equity	(g)(j)	Commercial & Professional Services		3,137,062		3,137		3,137
Imagine Communications Corp., Common Equity, Class A Units	(g)(j)	Media		33,034		3,783		4,562
Industrial Group Intermediate Holdings, LLC, Common Equity	(g)(j)(l)	Materials		347,107		347		538
JW Aluminum Co., Common Equity	(f)(j)	Materials		37,500		3,225		—
Leading Edge Aviation Services, Inc., Common Equity	(f)(j)	Capital Goods		4,401		464		22
Leading Edge Aviation Services, Inc., Preferred Equity	(f)(j)	Capital Goods		1,303		1,303		1,303
MB Precision Investment Holdings LLC, Class A-2 Units	(f)(j)	Capital Goods		490,213		490		319
Micronics, Inc., Common Equity	(g)(j)	Capital Goods		53,073		553		791
Micronics, Inc., Preferred Equity	(g)(j)	Capital Goods		55		553		689
Milagro Holdings, LLC, Common Equity	(f)(j)	Energy		12,057		50		—
Milagro Holdings, LLC, Preferred Equity	(g)(j)	Energy		283,947		11,181		—
New Star Metals Inc., Common Equity	(g)	Capital Goods		741,082		750		815
NewStar Financial, Inc., Warrants, 11/4/2024	(g)(h)(j)(n)	Diversified Financials		3,000,000		15,058		14,640
Plains Offshore Operations Inc., Preferred Equity	(e)(f)	Energy		52,666		64,732		71,417
Plains Offshore Operations Inc., Warrants, 11/18/2019	(e)(f)(j)	Energy		1,067,481		1,722		—
PSAV Holdings LLC, Common Equity	(f)	Technology Hardware & Equipment		10,000		10,000		26,500
Safariland, LLC, Common Equity	(f)(j)	Capital Goods		25,000		2,500		15,458
Safariland, LLC, Preferred Equity	(f)	Capital Goods		2,042		23,409		24,695
Safariland, LLC, Warrants, 7/27/2018	(f)(j)	Capital Goods		2,263		246		1,399

See notes to unaudited consolidated financial statements.

11

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Number of Shares		Amortized Cost		Fair Value(d)
Safariland, LLC, Warrants, 9/20/2019	(f)(j)	Capital Goods		2,273	$	227	$	1,406
Sequel Industrial Products Holdings, LLC, Common Equity	(f)(g)(j)	Commercial & Professional Services		33,306		3,400		8,307
Sequel Industrial Products Holdings, LLC, Preferred Equity	(f)(g)	Commercial & Professional Services		8,000		10,823		10,831
Sequel Industrial Products Holdings, LLC, Warrants, 9/28/2022	(g)(j)	Commercial & Professional Services		1,293		1		166
Sequel Industrial Products Holdings, LLC, Warrants, 5/10/2022	(f)(j)	Commercial & Professional Services		19,388		12		2,897
Sequential Brands Group, Inc., Common Equity	(g)(h)(j)	Consumer Durables & Apparel		206,664		2,790		2,598
Sorenson Communications, Inc., Common Equity	(f)(j)	Telecommunication Services		46,163		—		25,381
ThermaSys Corp., Common Equity	(f)(j)	Capital Goods		51,813		1		—
ThermaSys Corp., Preferred Equity	(f)(j)	Capital Goods		51,813		5,181		2,435
VPG Group Holdings LLC, Class A-2 Units	(f)(j)	Materials		3,637,500		3,638		2,183
Zeta Interactive Holdings Corp., Preferred Equity	(g)(j)	Software & Services		215,662		1,714		1,714
Total Equity/Other						292,041		404,046
Unfunded Contingent Warrant Commitment	(o)							(2,440	)
Net Equity/Other								401,606
TOTAL INVESTMENTS—175.5%					$	4,150,674		4,100,079
LIABILITIES IN EXCESS OF OTHER ASSETS—(75.5%)								(1,764,120	)
NET ASSETS—100%							$	2,335,959

(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 September 30, 2015, the three-month London Interbank Offered Rate, or LIBOR, was 0.33%, the Euro Interbank Offered Rate, or EURIBOR, was (0.04)% 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 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).

(f) 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).

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

See notes to unaudited consolidated financial statements.

12

FS Investment Corporation

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2015

(in thousands, except share amounts)

(h) 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 September 30, 2015, 81.2% of the Company’s total assets represented qualifying assets.

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

(j) Security is non-income producing.

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

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

(m) Security is an unfunded commitment.

(n) Includes 500,000 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 $12,500, upon the request of NewStar.

(o) Represents the maximum number of NewStar warrants that the Company will forfeit in the event the Company declines to fund additional subordinated debt investments in NewStar in an amount not to exceed $12,500, upon the request of NewStar.

(p) Under the 1940 Act, 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 September 30, 2015, the Company held investments in two portfolio companies 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 companies for the nine months ended September 30, 2015:

Portfolio Company	Purchases		Sales and Repayments		Interest Income		Dividend Income		Net Realized Gain (Loss)		Net Change in Unrealized Appreciation (Depreciation)
Senior Secured Loans—First Lien
Allen Systems Group, Inc.	$	37,634		—	$	1,628		—		—	$	378
Equity/Other
Allen Systems Group, Inc., Common Equity	$	36,422		—		—		—		—	$	32,352
Fronton Investor Holdings, LLC, Class B Units		—		—		—		—		—	$	3,885

See notes to unaudited consolidated financial statements.

13

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

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)
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
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

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)
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
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

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)
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
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

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)
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
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

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	Rate(b)	Floor	Maturity	Principal Amount(c)		Amortized Cost			Fair Value(d)
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
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.

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)
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