Profile: GSC Investment Corp. (GNV)

GSC Investment Corp., incorporated on March 21, 2007, is a business development company. The Company’s investment objectives are to generate current income and capital appreciation through debt and equity investments by primarily investing in middle market companies and select high-yield bonds. The Company’s portfolio is comprises primarily of investments in leveraged loans (comprising of both first and second lien term loans) issued by middle market companies and high yield bonds. These investments are sourced in both the primary and secondary markets through a network of relationships with commercial and investment banks, commercial finance companies and financial sponsors.

The Company seeks to invest up to 30% of its assets in opportunistic investments. Opportunistic investments may include investments in distressed debt, debt and equity securities of public companies, credit default swaps, emerging market debt, and structured finance vehicles, including collateralized loan obligation (CLO). As part of this 30%, the Company may also invest in debt of middle market companies located outside the United States.

As of February 28, 2009, its portfolio consisted of $118.9 million in investments. The Company creates a diversified portfolio that includes leveraged loans, mezzanine debt and high yield bonds by investing up to 5% of its total investments in each portfolio company, although the investment sizes may be more or less than the targeted range. As of February 28, 2009, the Company invested in excess of 5% of its total investments in four of the 35 portfolio companies and the GSCIC CLO, but in each case less than 18.8% of its total investments, and its five largest portfolio company exposures represented approximately 43.6% of its total investments.

The Company’s leveraged loan portfolio is comprised primarily of first lien and second lien term loans. First lien term loans are secured by a first priority perfected security interest on all or substantially all of the assets of the borrower and include a first priority pledge of the capital stock of the borrower. High yield bonds are either senior secured or unsecured. Equity investments may consist of preferred equity that is expected to pay dividends on a current basis or preferred equity that does not pay current dividends.