FSK completes $400 million offering of 6.125% unsecured notes

PHILADELPHIA/NEW YORK - FS KKR Capital Corp. (NYSE:FSK), currently trading at $15.18 and with a market capitalization of $4.27 billion, announced today it has completed its previously announced $400 million offering of 6.125% unsecured notes due 2031.

The business development company (BDC) plans to use the net proceeds for general corporate purposes, which may include repaying outstanding indebtedness under credit facilities and certain notes, according to a press release statement.

The offering was managed by multiple financial institutions, with BofA Securities, BMO Capital Markets, ING Financial Markets, J.P. Morgan Securities, KKR Capital Markets, SMBC Nikko Securities America, and Truist Securities acting as joint book-running managers.

FSK is a publicly traded BDC that focuses on providing customized credit solutions to private middle market U.S. companies. The company primarily invests in senior secured debt and, to a lesser extent, subordinated debt of private middle market companies.

The company is advised by FS/KKR Advisor, LLC, a partnership between Future Standard (formerly FS Investments) and KKR Credit. Future Standard manages over $86 billion in assets, while KKR is a global investment firm offering alternative asset management, capital markets, and insurance solutions.

The announcement specified that it does not constitute an offer to sell or a solicitation of an offer to buy any of the notes, and no sale would be made in any state or jurisdiction where such offer would be unlawful.

In other recent news, FS KKR Capital Corp announced a $400 million notes offering with a 6.125% interest rate, set to mature in 2031. The offering was conducted under an effective shelf registration statement and is expected to close in September 2025, subject to customary conditions. Shareholders of FS KKR Capital also approved a proposal allowing the company to issue shares below net asset value in future offerings. In light of recent developments, RBC Capital has lowered its price target for FS KKR Capital to $18, citing revised net investment income estimates and credit concerns. Fitch Ratings has affirmed the company’s long-term issuer default rating at ’BBB-’ but revised its outlook to negative, highlighting challenges such as elevated non-accruals and realized losses from portfolio restructurings. These updates reflect ongoing assessments by financial institutions on FS KKR Capital’s financial health and market strategies.

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