SCHEDULE: Apollo Group Discloses 6.3% Stake in FS Credit Preferred Shares

A group of Apollo entities, including Athene Annuity and Life Company, reported a 6.3% beneficial ownership stake in FS Credit Opportunities Corp.'s Term Preferred Shares.

Summary

• A group of nine affiliated entities, primarily under the Apollo umbrella, collectively reported beneficial ownership of 25,000 Term Preferred Shares of FS Credit Opportunities Corp.
• This ownership represents 6.3% of the total class of Term Preferred Shares outstanding.
• The total outstanding Term Preferred Shares are 400,000 as of May 15, 2025, as reported by the Issuer in its definitive proxy statement filed on May 16, 2025.
• The shares are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 5

Explanation: A Schedule 13G is a factual disclosure of beneficial ownership and does not inherently convey positive or negative sentiment regarding the issuer's performance. The acquisition of a significant stake by a large financial institution like Apollo/Athene could be viewed as a neutral to slightly positive signal of confidence in the asset class or the issuer's ability to service the preferred shares.

Future Outlook

NA

Management Comments

• The securities referred to were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11.

Industry Context

This filing indicates a significant passive investment by a major financial and insurance group (Apollo/Athene) in the preferred shares of FS Credit Opportunities Corp. Such investments are common for large asset managers and insurance companies seeking stable income streams, as preferred shares typically offer fixed dividends. The filing highlights the continued interest of institutional investors in the structured credit or income-oriented segments of the market.

Stakeholder Impact

• Shareholders (Common): The presence of a large institutional holder in preferred shares may signal stability for the company's capital structure, potentially indirectly benefiting common shareholders by reducing perceived financial risk.
• Preferred Shareholders: The filing confirms a significant institutional holder, which could imply liquidity and confidence in the preferred shares.

Key Dates

Keywords

FS Credit Opportunities Corp, Term Preferred Shares, Apollo Management, Athene Annuity, Beneficial Ownership, Schedule 13G, SEC Filing, Investment, Preferred Stock