The board of trustees of FS Specialty Lending Fund unanimously recommends rejecting an unsolicited tender offer from Cox Capital Partners.
The offer to purchase up to 3,600,000 common shares of FSSL at $11.50 per share is deemed unfavorable by the board.
The board believes the offer price is significantly below FSSL's net asset value, making it unattractive for shareholders.
Significantly Below NAV
The Offer Price of $11.50 per share is 42% below FSSL's net asset value of $19.82 as of June 30, 2025.
Profit Motive
The Purchasers intend to profit by purchasing Shares at a discount and holding them until the Company is liquidated.
Arbitrary Offer Price
No independent evaluation of the Offer Price's fairness has been conducted by the Purchasers.
Impact on Distributions
Tendering shares will prevent shareholders from receiving future distributions and potential appreciation.
- The Board's decision highlights the discrepancy between the Offer Price and FSSL's real value.
- Shareholders are urged to consider the long-term implications of tendering their shares at a price significantly below NAV.
In conclusion, FSSL's board advises shareholders to reject Cox Capital's offer to protect their interests and future potential gains.