FSK Completes Offering of $500,000,000 3.250% Notes Due 2027

Rhea-AI Summary

FS KKR Capital Corp. (NYSE: FSK) announced the successful completion of its $500 million offering of 3.250% unsecured notes due 2027. The offering was managed by multiple financial institutions, including BofA Securities and J.P. Morgan. The net proceeds will be used for general corporate purposes, primarily to repay existing indebtedness. This move aims to strengthen FSK’s financial position, allowing for enhanced flexibility in managing debt obligations.

Positive

• Successfully raised $500 million through unsecured notes offering.
• Intended use of proceeds for repaying existing debt enhances financial flexibility.

Negative

• None.

PHILADELPHIA, Jan. 18, 2022 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) today announced that it has completed its previously announced offering of $500,000,000 in aggregate principal amount of its 3.250% unsecured notes due 2027 (the "Notes"). BofA Securities, Inc., BMO Capital Markets Corp., KKR Capital Markets LLC, MUFG Securities Americas Inc., SMBC Nikko Securities America, Inc., J.P. Morgan Securities LLC, ING Financial Markets LLC, Truist Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and RBC Capital Markets, LLC are acting as joint book-running managers for this offering. BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc. and SG Americas Securities, LLC are acting as joint lead managers for this offering. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Compass Point Research & Trading, LLC, Hovde Group, LLC, ICBC Standard Bank Plc, R. Seelaus & Co., LLC, Keefe, Bruyette & Woods, Inc. and U.S. Bancorp Investments, Inc. are acting as co-managers for this offering.

FSK intends to use the net proceeds of this offering for general corporate purposes, including potentially repaying outstanding indebtedness under credit facilities and certain notes.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About FS KKR Capital Corp.

FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. FSK seeks to invest primarily 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.

About FS/KKR Advisor, LLC

FS/KKR Advisor, LLC (FS/KKR) is a partnership between FS Investments and KKR Credit that serves as the investment adviser to FSK. 

FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth, and focuses on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Leawood, KS.

KKR Credit is a subsidiary of KKR & Co. Inc., a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic manager partnerships that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR's investments may include the activities of its sponsored funds.

Forward-Looking Statements and Important Disclosure Notice

This announcement may contain certain forward-looking statements, including statements with regard to future events or the future performance or operations of FSK. Words such as "believes," "expects," "projects," 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. Factors that could cause actual results to differ materially include changes in the economy, risks associated with possible disruption in FSK's operations or the economy generally due to terrorism, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in FSK's operating area, and the price at which shares of FSK's common stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSK makes with the SEC. FSK undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:

Investor Relations Contact

Robert Paun
Robert.Paun@fsinvestments.com
917-338-5074

Media Contact

Melanie Hemmert
Melanie.Hemmert@fsinvestments.com  

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SOURCE FS KKR Capital Corp.

FAQ

What was the amount raised in the FS KKR Capital Corp. offering?

FS KKR Capital Corp. raised $500 million in its recent offering.

What is the interest rate on the unsecured notes issued by FSK?

The unsecured notes issued by FS KKR Capital Corp. have an interest rate of 3.250%.

What is the maturity date of the notes offered by FS KKR Capital Corp.?

The notes offered by FS KKR Capital Corp. are due in 2027.

What will FS KKR Capital Corp. use the proceeds from the note offering for?

FS KKR Capital Corp. intends to use the proceeds for general corporate purposes, including repaying outstanding indebtedness.

Who managed the recent notes offering by FS KKR Capital Corp.?

The offering was managed by BofA Securities, J.P. Morgan, and several other financial institutions.