- **FS Specialty Lending Fund** completed its reorganization on **October 28, 2025**, converting from a business development company to a closed-end fund registered under the Investment Company Act of 1940.  **[1501729_0001104659-25-103241_tm2529568d1_8k.htm:1]** 
- Concurrently, **FS Specialty Lending Advisor, LLC** became an indirect wholly-owned subsidiary of Franklin Square Holdings, L.P. and entered into new Investment Advisory, Fee Waiver, and Administration Agreements with the Fund.  **[1501729_0001104659-25-103241_tm2529568d1_8k.htm:1]** **[1501729_0001104659-25-103241_tm2529568d1_8k.htm:3]** 
- The Fund intends to seek a listing on the New York Stock Exchange in **mid-November**, which will trigger changes in its fee structure.  **[1501729_0001104659-25-103241_tm2529568d1_8k.htm:1]** 
- Post-listing, the **base management fee** will be **1.50%** of gross assets annually, but will be effectively **1.35%** due to a **0.15% waiver**.  **[1501729_0001104659-25-103241_tm2529568d1_ex10-2.htm:0]** **[1501729_0001104659-25-103241_tm2529568d1_8k.htm:2]**  The **income incentive fee** will be **10%** of pre-incentive fee net investment income, subject to a **6.0% hurdle rate**.  **[1501729_0001104659-25-103241_tm2529568d1_ex10-2.htm:0]** **[1501729_0001104659-25-103241_tm2529568d1_8k.htm:2]**

FS Specialty Lending Fund Completes Reorganization and Announces New Fee Structure Ahead of Proposed Listing

- FS Specialty Lending Fund declared a cash distribution of **$0.6024** per share, payable on **October 20, 2025**, to shareholders of record as of **October 17, 2025**.  **[1501729_0001104659-25-100888_tm2528945d1_8k.htm:1]** 
- The Fund is preparing for a public listing on the **New York Stock Exchange (NYSE)** in **mid-November 2025**, following its conversion from a non-traded business development company (BDC) to a registered closed-end fund.  **[1501729_0001104659-25-100888_tm2528945d1_8k.htm:2]** **[1501729_0001104659-25-100888_tm2528945d1_ex99-1.htm:2]** 
- Shareholders approved the Reorganization at meetings held on **September 26, 2025**, and **October 14, 2025**.  **[1501729_0001104659-25-100888_tm2528945d1_8k.htm:3]** 
- The Fund targets an annualized distribution rate of **9.0%–9.5%** based on Net Asset Value (NAV) at listing, with distributions expected to be declared monthly starting in **2026**.  **[1501729_0001104659-25-100888_tm2528945d1_ex99-1.htm:2]** **[1501729_0001104659-25-100888_tm2528945d1_ex99-1.htm:7]** 
- As of **June 30, 2025**, the Fund reported **$1.9 billion** in total assets, with its portfolio consisting of **89% senior secured debt** and **92% diversified credit investments**.  **[1501729_0001104659-25-100888_tm2528945d1_ex99-1.htm:3]**

FS Specialty Lending Fund Declares Distribution and Prepares for NYSE Listing

- The Board of Trustees of FS Specialty Lending Fund (FSSL) unanimously recommends that shareholders **reject an unsolicited mini-tender offer** from Cox Capital Partners to purchase up to **3,600,000 common shares** at **$11.50 per share**, with the offer expiring on **October 10, 2025**.  **[1501729_0001104659-25-090053_tm2525957d1_ex99-1.htm:0]** **[1501729_0001104659-25-090053_tm2525957d1_ex99-1.htm:1]** 
- The Board states that the **$11.50 per share Offer Price** is approximately **42% below FSSL's net asset value (NAV) per Share of $19.82** as of **June 30, 2025**, and is not considered to be in the best interests of FSSL's shareholders.  **[1501729_0001104659-25-090053_tm2525957d1_ex99-1.htm:1]** 
- FSSL is preparing for the **listing of its shares on the New York Stock Exchange (NYSE)** as a registered closed-end fund, following a conversion from a business development company, with an expected timeline before the **end of Q4 2025**.  **[1501729_0001104659-25-090053_tm2525957d1_ex99-1.htm:2]** 
- Tendering shares in the Cox Capital Offer would result in shareholders foregoing future distributions and any potential appreciation in the value of their shares.  **[1501729_0001104659-25-090053_tm2525957d1_ex99-1.htm:2]**

FS Specialty Lending Fund (FSEN)