Fifth Street Finance Corp. Releases Its March 2014 Newsletter: Multi-Point Plan Positively Impacting Earnings

Fifth Street Finance Corp. Releases Its March 2014 Newsletter: Multi-Point
Plan Positively Impacting Earnings

WHITE PLAINS, NY, March 19, 2014 (GLOBE NEWSWIRE) -- Fifth Street Finance
Corp. (NASDAQ:FSC) ("FSC") released its March 2014 newsletter today.

March Quarter on Track

Our established origination platform and sponsor relationships are combining
to drive strong, attractive originations during the second half of the March
quarter. The initiatives to improve net investment income, which we discussed
in past earnings conference calls and newsletters, are generating the returns
we anticipated. As a result, we estimate that we are on pace for the March
quarter to cover the current dividend level declared by the Board of
Directors.We anticipate future earnings should continue to benefit from
maintaining leverage within our target range and further progress on our
initiatives should result in the addition of higher yielding assets to the
portfolio with favorable risk-adjusted returns.This may provide our Board of
Directors the opportunity to declare a higher dividend level in the future.

Venture Lending Producing Results

We are pleased to report that momentum continues to build in venture
lending.We closed three financings totaling $55 million of gross originations
in recent weeks, with additional opportunities in the pipeline. The venture
loans in our portfolio have higher yields than the portfolio average, and most
include warrants which may generate future capital gains.For example, one of
the companies in our venture portfolio in which we own a small warrant
position has recently filed for an IPO.A successful public offering may
enable us to monetize our warrant position after the lock-up period expires.

SSLP Nears Completion

As we previously discussed during our earnings conference call in February, we
are currently in the documentation stage and making progress towards forming a
partnership to establish a Senior Secured Loan Program (SSLP).We are also in
discussions with several other parties about additional partnerships.We
anticipate that these types of partnerships, if completed, can ultimately
generate a mid-teens return on equity for FSC.

Capital Structure a Competitive Advantage

We recently became one of three BDCs to access the institutional high-grade
bond market when we issued $250 million of five-year unsecured notes at a
coupon of 4.875%.The institutional high-grade bond market is one of the
largest global capital markets, and represents a new pool of debt capital for
FSC to access.As we grow our balance sheet, we intend to continue accessing
this segment of the capital markets opportunistically for longer-term
unsecured debt.As a reminder, FSC is one of only six BDCs to be rated
investment grade by both Fitch Ratings and Standard & Poor's.

FSC has taken multiple steps to improve the terms, cost and diversity of
funding sources, which provide us with one of the most attractive capital
structures among BDCs.We maintain multiple relationships with bank lenders
and several different types of unsecured debt with staggered maturities. 

Syndications Creating Value

The capital markets team is generating results.We syndicated $70 million of
investments thus far during the March quarter, and are in various stages of
discussion with multiple parties regarding syndications of other loans.

Deepening the Bench

One of the latest additions to FSC's team is Richard A. Petrocelli, who
recently joined as FSC's Chief Accounting Officer. Rich previously spent 15
years at Saratoga Partners, a middle market private equity firm, where he was
Managing Director and Chief Financial Officer. Additionally, Rich served as
Chief Financial Officer and Chief Compliance Officer of Saratoga's
publicly-traded BDC, Saratoga Investment Corp. Rich has over 20 years of
finance and accounting experience across a wide variety of roles in the asset
management industry.


The Fifth Street Team

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. The company'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 Fifth Street Management LLC.
Named 2013 "Lender Firm of the Year" by The M&A Advisor, Fifth Street
Management is an SEC-registered investment adviser and leading alternative
asset manager with over $3 billion in assets under management. With a track
record of more than 15 years, Fifth Street's nationally recognized platform
has the ability to hold loans up to $150 million, commit up to $250 million
and structure and syndicate transactions up to $500 million. FSC's website
can be found at

Forward-Looking Statements

This press release may contain certain forward-looking statements, including
statements with regard to the future performance of the company.Words such as
"believes," "expects," "estimates," "projects," "anticipates," and "future" or
similar expressions are intended to identify forward-looking statements.These
forward-looking statements are subject to the inherent uncertainties in
predicting future results and conditions.Certain factors could cause actual
results to differ materially from those projected in these forward-looking
statements, and these factors are identified from time to time in the
company's filings with the Securities and Exchange Commission.The company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or

CONTACT: Investor Contact:
         Dean Choksi, Executive Director of Finance
         & Head of Investor Relations
         (914) 286-6855

         Corporate Development:
         Juan Alva, Managing Director, Head of Strategy
         & Corporate Development
         (818) 876-9665 

         Media Contact:
         Nick Rust
         Prosek Partners
         (212) 279-3115 ext. 252

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