#United States #Philadelphia #FS KKR Capital #Unsecured Notes #FSK

FS KKR Capital Corp. Announces Public Offering of Unsecured Notes

On September 19, 2025, FS KKR Capital Corp. (NYSE: FSK) revealed that it has officially priced a significant public offering involving $400 million worth of unsecured notes. These notes, which carry an interest rate of 6.125% and are set to mature on January 15, 2031, are expected to attract considerable investor interest. According to company sources, the offering is projected to close on September 25, 2025, pending standard closing procedures.

The notes can be redeemed in full or in part at FSK's discretion before maturity, offering flexibility to investors. Notably, the terms allow for redemption at par a month before the final maturity date, providing added financial maneuvering potential for the company. This strategic move comes amid FSK's commitment to bolstering its capital structure and enhancing its operational foothold in the marketplace.

Underwriters and Financial Management

In terms of underwriting, a notable consortium of financial institutions has stepped up to manage this offering. Prominent firms such as BofA Securities, BMO Capital Markets, ING Financial Markets, and J.P. Morgan Securities are among the joint book-running managers. Meanwhile, multiple joint lead managers, including Citigroup Global Markets and Goldman Sachs, have also joined the efforts to ensure that the offering’s terms are competitive and attractive to potential investors.

Additionally, groups like ICBC Standard Bank and U.S. Bancorp Investments have been designated as co-managers, responsible for assisting in the overall execution and management of the offering.

Utilization of Proceeds

The net proceeds from the public offering will be utilized for general corporate purposes. FSK has indicated that the funds may be directed towards paying down current outstanding debts under existing credit facilities, which could significantly improve their balance sheet and overall financial health. This strategic planning reflects FSK's ongoing approach to ensuring sustainable growth and operational effectiveness, particularly in a time when market conditions demand calculated fiscal management.

Investor Considerations

For potential investors, it is crucial to consider the various investment objectives, risks, charges, and expenses associated with investing in FSK's offerings. The company has made a concerted effort to inform investors about their options, emphasizing the need to review the detailed pricing term sheet, preliminary prospectus, and accompanying documents filed with the U.S. Securities and Exchange Commission (SEC). This due diligence is essential for any investor considering participation in this public offering.

About FS KKR Capital Corp.

FS KKR Capital Corp. stands as a leading publicly traded business development company (BDC) that focuses on delivering customized credit solutions targeted primarily at private middle-market U.S. companies. Their investment strategy primarily revolves around senior secured debt, with a secondary focus on subordinated debt. Advised by FS/KKR Advisor, LLC—a partnership with Future Standard and KKR Credit—FSK strives to create value for its stakeholders through prudent investment decisions.

As a global asset manager, Future Standard specializes in private equity, credit, and real estate, boasting a robust track record of over 30 years and managing assets exceeding $86 billion. Partnering with KKR, a renowned global investment firm, FSK leverages an extensive network and expertise to unlock the potential of its investments and bolster community growth.

Closing Remarks

In conclusion, FSK's recent pricing of their public offering of unsecured notes characterized by a reasonable interest rate seems promising amidst a dynamically shifting economic landscape. The ability to redeem early and streamline debts enhances investor confidence, positioning FSK for strategic expansion and robust performance in the upcoming years. All interested parties are encouraged to stay informed on updates related to this offering, as careful consideration and thorough analysis will play key roles in successful investment decisions.