FSK Prices Public Offering of $100 million 6.125% Unsecured Notes Due 2030
FS KKR Capital Corp. (NYSE: FSK) has priced a $100 million public offering of 6.125% unsecured notes due 2030. The notes will mature on January 15, 2030, with an option for early redemption at par one month before maturity or at any time with a make-whole premium. The offering is expected to close on December 27, 2024.
The company plans to use the net proceeds for general corporate purposes, including potential repayment of outstanding indebtedness under credit facilities and certain notes. The offering is being managed by multiple joint book-running managers, including BofA Securities, BMO Capital Markets, J.P. Morgan Securities, KKR Capital Markets, SMBC Nikko Securities America, and Truist Securities.
FS KKR Capital Corp. (NYSE: FSK) ha fissato il prezzo per un offerta pubblica di $100 milioni di note non garantite al 6,125% con scadenza nel 2030. Le note scadranno il 15 gennaio 2030, con un'opzione di rimborso anticipato a valore nominale un mese prima della scadenza o in qualsiasi momento con un premio di make-whole. Si prevede che l'offerta si chiuder脿 il 27 dicembre 2024.
L'azienda prevede di utilizzare i proventi netti per finalit脿 aziendali generali, inclusa la potenziale restituzione di debiti esistenti sotto linee di credito e alcune note. L'offerta 猫 gestita da pi霉 manager congiunti, tra cui BofA Securities, BMO Capital Markets, J.P. Morgan Securities, KKR Capital Markets, SMBC Nikko Securities America e Truist Securities.
FS KKR Capital Corp. (NYSE: FSK) ha fijado el precio de una oferta p煤blica de $100 millones de notas no garantizadas al 6,125% con vencimiento en 2030. Las notas vencer谩n el 15 de enero de 2030, con una opci贸n de reembolso anticipado a valor nominal un mes antes del vencimiento o en cualquier momento con una prima de make-whole. Se espera que la oferta cierre el 27 de diciembre de 2024.
La empresa planea usar los ingresos netos para fines corporativos generales, incluyendo la posible reembolso de deudas pendientes bajo l铆neas de cr茅dito y ciertas notas. La oferta est谩 siendo gestionada por varios gestores conjuntos, incluyendo BofA Securities, BMO Capital Markets, J.P. Morgan Securities, KKR Capital Markets, SMBC Nikko Securities America y Truist Securities.
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FS KKR Capital Corp. (NYSE: FSK) a fix茅 le prix d'une offre publique de 100 millions de dollars d'obligations non garanties 脿 6,125 % arrivant 脿 茅ch茅ance en 2030. Les obligations arriveront 脿 茅ch茅ance le 15 janvier 2030, avec une option de remboursement anticip茅 脿 la valeur nominale un mois avant l'茅ch茅ance ou 脿 tout moment avec une prime make-whole. L'offre devrait se clore le 27 d茅cembre 2024.
La soci茅t茅 pr茅voit d'utiliser les produits nets pour des besoins d'entreprise g茅n茅raux, y compris le remboursement potentiel des dettes en cours dans le cadre de lignes de cr茅dit et certaines obligations. L'offre est g茅r茅e par plusieurs directeurs de livres conjoints, y compris BofA Securities, BMO Capital Markets, J.P. Morgan Securities, KKR Capital Markets, SMBC Nikko Securities America et Truist Securities.
FS KKR Capital Corp. (NYSE: FSK) hat eine 枚ffentliche Anleiheemission 眉ber 100 Millionen US-Dollar zu 6,125 % nicht gesicherten Anleihen mit F盲lligkeit im Jahr 2030 festgelegt. Die Anleihen laufen am 15. Januar 2030 ab, mit einer Option auf vorzeitige R眉ckzahlung zum Nennwert einen Monat vor F盲lligkeit oder jederzeit mit einer Make-Whole-Pr盲mie. Die Emission soll am 27. Dezember 2024 abgeschlossen werden.
Das Unternehmen plant, die Nettoerl枚se f眉r allgemeine Unternehmenszwecke zu verwenden, einschlie脽lich der m枚glichen R眉ckzahlung bestehender Schulden unter Kreditlinien und bestimmten Anleihen. Die Emission wird von mehreren Joint Book-Running-Managern verwaltet, darunter BofA Securities, BMO Capital Markets, J.P. Morgan Securities, KKR Capital Markets, SMBC Nikko Securities America und Truist Securities.
- Additional $100 million in capital raised through note offering
- Relatively long-term debt maturity until 2030
- Potential debt restructuring opportunity through repayment of existing facilities
- 6.125% interest rate adds to debt service costs
- Increased debt burden on balance sheet
- Additional interest expense will impact profitability
Insights
This
The underwriting syndicate includes top-tier banks, enhancing distribution capabilities and market confidence. The stated use of proceeds for general corporate purposes, particularly debt refinancing, points to proactive liability management. This could potentially lower FSK's weighted average cost of capital if used to retire higher-cost debt, though the impact would be modest given the size relative to FSK's
The transaction's timing and structure reveal FSK's thoughtful approach to capital structure optimization. By reopening existing notes rather than launching a new series, FSK is enhancing the liquidity of their outstanding debt while potentially achieving better pricing through the established trading history of the original issuance.
For simplified understanding: Think of this like adding more water to an existing pool rather than digging a new one - it's typically more efficient and cost-effective. The
BofA Securities, Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, KKR Capital Markets LLC, SMBC Nikko Securities America, Inc., and Truist Securities, Inc. are acting as joint book-running 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.
Other Information
Investors are advised to carefully consider the investment objectives, risks, charges and expenses of FSK before investing. The pricing term sheet dated December 20, 2024, the preliminary prospectus supplement dated December 20, 2024, and the accompanying prospectus dated September 19, 2024, each of which has been filed with the
The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell any securities of FSK and are not soliciting an offer to buy such securities in any state or jurisdiction where such offer and sale is not permitted.
FSK's shelf registration statement is on file and was deemed immediately effective upon filing with the SEC. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents FSK has filed with the SEC for more complete information about FSK and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at . Alternatively, FSK, any underwriter or any dealer participating in the offering will arrange to send you the prospectus supplement and accompanying prospectus if you request it, by calling BofA Securities, Inc. at 1-800-294-1322; BMO Capital Markets Corp. at聽1 (888) 200-0266;聽J.P. Morgan Securities LLC at聽1-212-834-4533;聽KKR Capital Markets LLC at聽1-212-230-9433;聽SMBC Nikko Securities America, Inc. at聽1-888-868-6856;聽or Truist Securities, Inc. at聽1-800-685-4786.
About聽FS KKR Capital Corp.
FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market
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 and other business development companies.
FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over聽
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR's insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR's investments may include the activities of its sponsored funds and insurance subsidiaries.
Forward-Looking Statements and Important Disclosure Notice
This announcement may contain certain forward-looking statements, including statements with regard to future events or 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,聽geo-political聽risks, natural disasters or pandemics such as聽COVID-19,聽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
Anna Kleinhenn
Anna.Kleinhenn@fsinvestments.com
FS Investments Media Team
Melanie Hemmert
Melanie.Hemmert@fsinvestments.com
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FAQ
What is the interest rate and maturity date of FSK's new notes offering?
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