KKR Income Opportunities Fund Completes Acquisition of Assets of Insight Select Income Fund
KKR Income Opportunities Fund (NYSE: KIO) has completed its acquisition of Insight Select Income Fund (INSI) assets. INSI shareholders will receive 1.34709 KIO shares for each INSI share, based on closing net asset values of $17.62 and $13.08 for INSI and KIO, respectively, as of February 6, 2025.
Of INSI shareholders, 55.6% elected to receive cash consideration, resulting in approximately 8.8% of their INSI shares' value in cash, with the remainder in KIO shares. Cash election proceeds and whole shares will be distributed on February 12, 2025, with fractional share proceeds to follow the next week.
KIO, managed by KKR Credit Advisors, aims to generate high current income and capital appreciation by investing in secured and unsecured loans and high-yield corporate debt instruments of U.S. and non-U.S. issuers.
Il KKR Income Opportunities Fund (NYSE: KIO) ha completato l'acquisizione degli attivi dell'Insight Select Income Fund (INSI). Gli azionisti di INSI riceveranno 1.34709 azioni KIO per ciascuna azione INSI, basato sui valori patrimoniali netti di chiusura di $17.62 e $13.08 per INSI e KIO, rispettivamente, al 6 febbraio 2025.
Tra gli azionisti di INSI, il 55.6% ha scelto di ricevere un corrispettivo in contante, risultando in circa l'8.8% del valore delle loro azioni INSI in contante, con il resto in azioni KIO. I proventi della scelta in contante e le azioni intere saranno distribuiti il 12 febbraio 2025, con i proventi delle azioni frazionarie che seguiranno la settimana successiva.
KIO, gestito da KKR Credit Advisors, mira a generare un alto reddito corrente e apprezzamento del capitale investendo in prestiti garantiti e non garantiti e in strumenti di debito societario ad alto rendimento emessi da emittenti statunitensi e non statunitensi.
El KKR Income Opportunities Fund (NYSE: KIO) ha completado su adquisición de los activos del Insight Select Income Fund (INSI). Los accionistas de INSI recibirán 1.34709 acciones de KIO por cada acción de INSI, basándose en los valores netos de activos de cierre de $17.62 y $13.08 para INSI y KIO, respectivamente, al 6 de febrero de 2025.
Del total de accionistas de INSI, el 55.6% eligió recibir una compensación en efectivo, lo que resultó en aproximadamente el 8.8% del valor de sus acciones de INSI en efectivo, con el resto en acciones de KIO. Los ingresos de la elección en efectivo y las acciones enteras se distribuirán el 12 de febrero de 2025, con los ingresos de las acciones fraccionarias que seguirán la semana siguiente.
KIO, gestionado por KKR Credit Advisors, tiene como objetivo generar altos ingresos actuales y apreciación de capital mediante la inversión en préstamos asegurados y no asegurados, así como en instrumentos de deuda corporativa de alto rendimiento emitidos por emisores de EE. UU. y no EE. UU.
KKR 소득 기회 펀드 (NYSE: KIO)가 인사이트 선택 소득 펀드 (INSI)의 자산 인수를 완료했습니다. INSI 주주들은 2025년 2월 6일 기준, INSI와 KIO 각각의 종가 기준 자산 가치 $17.62와 $13.08에 따라 INSI 주식 1주당 KIO 주식 1.34709주를 받게 됩니다.
INSI 주주 중 55.6%는 현금 보상을 선택했으며, 이로 인해 INSI 주식 가치의 약 8.8%를 현금으로 받고 나머지는 KIO 주식으로 받게 됩니다. 현금 선택 수익금과 전체 주식은 2025년 2월 12일에 배포되며, 분할 주식의 수익금은 다음 주에 이어질 것입니다.
KKR 크레딧 어드바이저가 관리하는 KIO는 미국 및 비미국 발행자의 담보 및 비담보 대출과 고수익 기업 채무 상품에 투자하여 높은 현재 소득과 자본 상승을 목표로 합니다.
Le KKR Income Opportunities Fund (NYSE: KIO) a achevé l'acquisition des actifs du Insight Select Income Fund (INSI). Les actionnaires d'INSI recevront 1.34709 actions KIO pour chaque action INSI, sur la base des valeurs nettes d'actif de clôture de 17,62 $ et 13,08 $ pour INSI et KIO, respectivement, au 6 février 2025.
Parmi les actionnaires d'INSI, 55,6 % ont choisi de recevoir une compensation en espèces, ce qui représente environ 8,8 % de la valeur de leurs actions INSI en espèces, le reste étant en actions KIO. Les produits de l'élection en espèces et les actions entières seront distribués le 12 février 2025, les produits des actions fractionnaires suivant la semaine suivante.
KIO, géré par KKR Credit Advisors, vise à générer un revenu courant élevé et une appréciation du capital en investissant dans des prêts garantis et non garantis ainsi que dans des instruments de dette d'entreprises à haut rendement émis par des émetteurs américains et non américains.
Der KKR Income Opportunities Fund (NYSE: KIO) hat die Akquisition der Vermögenswerte des Insight Select Income Fund (INSI) abgeschlossen. INSI-Aktionäre erhalten für jede INSI-Aktie 1.34709 KIO-Aktien, basierend auf den Schlussnettovermögenswerten von $17.62 und $13.08 für INSI und KIO, jeweils am 6. Februar 2025.
Von den INSI-Aktionären wählten 55.6% die Barabfindung, was ungefähr 8.8% des Wertes ihrer INSI-Aktien in bar resultierte, während der Rest in KIO-Aktien ausgezahlt wird. Die Barabfindungserlöse und vollen Aktien werden am 12. Februar 2025 verteilt, wobei die Erlöse aus den Bruchstückaktien in der darauffolgenden Woche folgen.
KIO, verwaltet von KKR Credit Advisors, zielt darauf ab, hohe aktuelle Einkünfte und Kapitalsteigerung zu generieren, indem es in gesicherte und ungesicherte Darlehen sowie hochverzinsliche Unternehmensschuldinstrumente von US-amerikanischen und nicht US-amerikanischen Emittenten investiert.
- Acquisition expands KIO's asset base and market presence
- Strategic growth through consolidation of fund assets
- Maintains listing on NYSE, ensuring continued market liquidity
- Potential integration risks from merging fund assets
- 55.6% of INSI shareholders requesting cash consideration could indicate some skepticism about the merger
- Use of leverage may increase volatility and interest rate risk
Insights
The completion of KIO's acquisition of Insight Select Income Fund marks a strategic expansion in the competitive closed-end fund space. The transaction structure, offering 1.34709 KIO shares for each INSI share, reflects a carefully calculated exchange ratio based on the funds' respective NAVs of
The
The timing of this acquisition appears particularly strategic given the current credit market environment. With interest rates at elevated levels and market volatility creating pricing dislocations, KIO's enhanced scale should provide greater flexibility to capitalize on opportunities across the credit spectrum. The combined entity will benefit from increased trading power and potentially better access to deal flow in both primary and secondary markets.
The merger also offers operational efficiencies through the consolidation of fund administration and management structures. For continuing shareholders, this could translate into improved expense ratios and more efficient capital deployment. KIO's dynamic investment approach, focusing on secured loans and high-yield corporate debt, positions the fund well to navigate the current market environment where credit selection and risk management are paramount.
“We are thrilled to officially welcome INSI shareholders to KIO,” said Jeremiah Lane, Co-Head of Global Leveraged Credit at KKR. “We continue to believe this is a strong environment for credit investing, and we look forward to leveraging the compelling opportunities we see in the market to continue delivering value to our shareholders.”
INSI’s shares ceased trading on The New York Stock Exchange on January 31, 2025. KIO will continue to trade on the New York Stock Exchange under its current ticker symbol, “KIO.”
INSI will receive shares of KIO based on the closing net asset values on February 6, 2025, which were
INSI shareholders were given the option to receive a portion of the consideration in cash subject to the adjustment and proration procedures set forth in the Agreement and Plan of Reorganization;
The cash election proceeds and whole shares will be distributed on February 12, 2025, while cash resulting from the sale of fractional shares will be paid out early the following week.
UBS Securities LLC served as financial advisor to Insight North America LLC (“Insight”). Dechert LLP served as legal counsel to KIO and KKR Credit Advisors (US) LLC. Clifford Chance LLP served as legal counsel to Insight and Troutman Pepper Hamilton Sanders LLP served as legal counsel to INSI.
KKR Income Opportunities Fund
KKR Income Opportunities Fund is a diversified, closed-end management investment company managed by KKR Credit Advisors (US) LLC (“KKR Credit”), an indirect subsidiary of KKR & Co. Inc. (“KKR”). The Fund’s primary investment objective is to seek a high level of current income with a secondary objective of capital appreciation. The Fund will seek to achieve its investment objective by investing primarily in first- and second-lien secured loans, unsecured loans and high yield corporate debt instruments. It seeks to employ a dynamic strategy of investing in a targeted portfolio of loans and fixed-income instruments of
KIO invests in loans and other types of fixed-income instruments and securities. Such investments may be secured, partially secured or unsecured and may be unrated, and whether or not rated, may have speculative characteristics. The market price of KIO’s investments will change in response to changes in interest rates and other factors. Generally, when interest rates rise, the values of fixed-income instruments fall, and vice versa.
Use of leverage creates an opportunity for increased income and return for common shareholders of KIO but, at the same time, creates risks, including the likelihood of greater volatility in the NAV and market price of, and distributions on, the common shares of KIO. In particular, leverage may magnify interest rate risk, which is the risk that the prices of portfolio securities will fall (or rise) if market interest rates for those types of securities rise (or fall). As a result, leverage may cause greater changes in KIO’s NAV, which will be borne entirely by KIO’s common shareholders.
Derivative investments have risks, including the imperfect correlation between the value of such instruments and the underlying assets of KIO. The risk of loss from a short sale is unlimited because KIO must purchase the shorted security at a higher price to complete the transaction and there is no upper limit for the security price. The use of options, swaps, and derivatives by KIO has the potential to significantly increase KIO’s volatility. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. KIO’s investments in securities or other instruments of non-
View source version on businesswire.com: https://www.businesswire.com/news/home/20250210410214/en/
Julia Kosygina or Lauren McCranie
media@kkr.com
212-750-8300
Source: KKR Income Opportunities Fund
FAQ
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