FS KKR Capital Completes $600M Public Offering

By Bobby Samwell • Thursday, June 06 16:56 • Permanent Link

FS KKR Capital Corp. (NYSE: FSK) has recently completed its public offering of $600 million in aggregate principal amount of its 6.875% unsecured notes due 2029. The joint book-running managers for this offering include BofA Securities, Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, KKR Capital Markets LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc., ING Financial Markets LLC, MUFG Securities Americas Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, and TD Securities (USA) LLC. On the other hand, Barclays Capital Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and SG Americas Securities, LLC are acting as joint lead managers for this offering. Notably, ICBC Standard Bank PLC, Keefe, Bruyette & Woods, Inc., R. Seelaus & Co., LLC, U.S. Bancorp Investments, Inc., B. Riley Securities, Inc., and Compass Point Research & Trading, LLC are acting as co-managers for this offering.

FSK intends to use the net proceeds from this offering for general corporate purposes, including potentially repaying outstanding indebtedness under credit facilities and certain notes. This move by FSK aligns with its focus on providing customized credit solutions to private middle market U.S. companies, primarily investing in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies.

FSK is advised by FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit. FS Investments, managing over $79 billion in assets, provides access to a broad suite of alternative asset classes and strategies through its investment teams and partners, while KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions.

The completion of this offering marks a significant financial move for FSK, as it seeks to navigate the business landscape, generate attractive investment returns, and support growth in its portfolio companies and communities. Following these announcements, the company's shares moved -0.3%, and are now trading at a price of $20.57. For the full picture, make sure to review FS KKR Capital's 8-K report.

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