FS KKR Capital Corp. Offers $600 Million Unsecured Notes

FS KKR Capital Corp. Launches Public Offering of Unsecured Notes

FS KKR Capital Corp. (NYSE: FSK) has recently announced an exciting development as it prices an underwritten public offering aimed at enhancing its financial strategies. This offering involves $600 million in aggregate principal amount of 6.125% unsecured notes, set to mature in 2030. This initiative allows the company to strengthen its capital structure while providing investors with a reliable investment opportunity.

Details of the Offering

The notes issued by FS KKR will mature on January 15, 2030. Investors should note that these unsecured notes may be redeemed in whole or in part at the company’s discretion at any time, with a make-whole premium. Notably, there is a provision that allows redemption at par one month prior to maturity. This offering is set to close in the near future, following standard closing procedures.

Key Underwriters and Management Teams

The offering brings together several prominent financial institutions as joint book-running managers. Notable firms involved include BofA Securities, J.P. Morgan Securities, BMO Capital Markets, and KKR Capital Markets, among others. Each of these institutions plays a significant role in managing the complexities of the offering process, ensuring a successful completion.

Financial Strategy and Use of Proceeds

FSK intends to utilize the proceeds from this offering to support general corporate purposes. This includes the potential repayment of existing indebtedness under credit facilities and certain notes. By strategically managing its debt and capital, FSK aims to enhance its financial stability and operational capacity.

About FS KKR Capital Corp.

FS KKR Capital Corp. stands out as a leading publicly traded business development company (BDC). This firm focuses on providing tailored credit solutions to middle market private companies within the U.S. The company primarily invests in senior secured debt, while also considering subordinated debt in its investment strategies. Backed by FS/KKR Advisor, LLC, FSK harnesses expert guidance to optimize its investment approach.

Featured Investment Advisory Partnership

FS/KKR Advisor, LLC is a partnership between FS Investments and KKR Credit, serving as the investment adviser to FSK and other business development companies. This partnership enhances FSK's investment management capabilities, ensuring well-rounded decision-making based on extensive market knowledge and analytical expertise.

About FS Investments

FS Investments is recognized as a global alternative asset manager, dedicated to delivering exceptional performance through innovative investment solutions. The firm manages over $82 billion in assets, catering to a diverse clientele, including institutional and individual investors. With a commitment to high-performance culture, FS Investments emphasizes building value and fostering relationships with clients and communities alike.

KKR: A Key Investment Player

KKR, a global investment firm, extends its influence through alternative asset management and capital markets solutions. The firm is dedicated to generating attractive investment returns, grounded in a disciplined investment approach. KKR sponsors funds across private equity, credit, and real assets, collaborating closely with its portfolio companies to support growth and innovation.

Investor Considerations

Investors considering participation in the FSK offering should carefully assess their investment objectives alongside the potential risks and expenses involved. It is prudent to review the pricing term sheet and supplementary prospectus, which contain essential information pertaining to the offering.

Proactive Communication and Transparency

FSK is committed to transparency with its investors. The company reiterates its dedication to keeping potential investors informed of all relevant updates and opportunities within the market. By providing clear and comprehensive information, FSK aims to foster trust and confidence among its current and prospective investors.

Frequently Asked Questions

What is the purpose of the $600 million offering by FSK?

The funds will be used for general corporate purposes, including possibly repaying existing debts.

Who are the main underwriters for this offering?

Key underwriters include BofA Securities, J.P. Morgan Securities, and KKR Capital Markets.

What types of investments does FSK focus on?

FSK primarily invests in senior secured debt of private middle market companies.

How will the offering impact FSK's overall financial strategy?

This offering is expected to enhance FSK’s capital structure and financial stability.

Who manages FSK's investment strategies?

FS/KKR Advisor, LLC advises FSK on investment management and strategy.

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