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Fifth Street Finance Corp. Announces a Gross Realized IRR of 19.1% on Sale of Aircraft

GREENWICH, CT, May 09, 2016 (GLOBE NEWSWIRE) -- Fifth Street Finance Corp. (NASDAQ:FSC) (“FSC”) today announced that its portfolio company in the aircraft leasing sector, First Star Aviation LLC (“First Star”), has successfully sold one 2002 Airbus A320-200 aircraft to Finnair Aircraft Finance Oy, the aircraft leasing division of the Finnair Group.

First Star, through its Bermuda subsidiary, had originally purchased the aircraft in February 2014. The aircraft was on a long-term lease with the airline Finnair through 2017. First Star realized an unlevered internal rate of return of 19.1% from the combined rents collected and subsequent sale of the aircraft to the airline.

Since its inception in 2013, First Star has invested in 11 mid-life aircraft and opportunistically traded five aircraft, generating a strong track record of realized returns for FSC. First Star’s current fleet include the 737-800, A320-200 and 767-300 platforms on lease to five different carriers across the U.S., Asia and Europe.

Pradeep Hathiramani, Head of First Star commented, “We are very pleased with the successful sale of this aircraft, as we continue to optimize our fleet based on special situation opportunities within the mid-life aircraft space.”

About Fifth Street Finance Corp.

Fifth Street Finance Corp. is a leading specialty finance company that provides custom-tailored financing solutions to small and mid-sized companies, primarily in connection with investments by private equity sponsors. The company originates and invests in one-stop financings, first lien, second lien, mezzanine debt and equity co-investments. FSC's investment objective is to maximize its portfolio's total return by generating current income from its debt investments and capital appreciation from its equity investments. The company has elected to be regulated as a business development company and is externally managed by a subsidiary of Fifth Street Asset Management Inc. (NASDAQ:FSAM), a nationally recognized credit-focused asset manager with over $5 billion in assets under management across multiple public and private vehicles. With a track record of over 18 years, Fifth Street's platform has the ability to hold loans up to $250 million and structure and syndicate transactions up to $500 million. Fifth Street received the 2015 ACG New York Champion's Award for "Lender Firm of the Year," and other previously received accolades include the ACG New York Champion's Award for "Senior Lender Firm of the Year," "Lender Firm of the Year" by The M&A Advisor and "Lender of the Year" by Mergers & Acquisitions. FSC's website can be found at fsc.fifthstreetfinance.com.

Forward-Looking Statements

Some of the statements in this press release constitute forward-looking statements, because they relate to future events or our future performance or financial condition. Forward-looking statements may include statements as to the future operating results, dividends and business prospects of Fifth Street Finance Corp. (“FSC”, or “Company”). Words such as “believes,” “expects,” “seeks,” “plans,” “should,” “estimates,” “project,” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. These forward-looking statements involve risks and uncertainties. Actual results could differ materially from those implied or expressed in these forward-looking statements for any reason. Such factors are identified from time to time in FSC’s filings with the Securities and Exchange Commission and include changes in the economy and the financial markets and future changes in laws or regulations and conditions in the Company’s operating areas. FSC undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CONTACT: Investor Contact: Robyn Friedman, Executive Director, Head of Investor Relations (203) 681-3720 ir@fifthstreetfinance.com Media Contact: James Golden / Andrew Squire Joele Frank Wilkinson Brimmer Katcher (212) 355-4449

Source: Fifth Street Finance Corp