FS KKR Capital Corp. Launches Major Public Offering of Unsecured Notes Worth $900 Million

FS KKR Capital Corp. Announces Major Public Offering

On June 2, 2026, FS KKR Capital Corp. (NYSE: FSK) made headlines by announcing a significant underwritten public offering totaling $900 million in unsecured notes. These notes, which carry an interest rate of 7.500%, are set to mature on August 1, 2031. This strategic move is part of the company's ongoing efforts to bolster its financial foundation and enhance corporate capabilities.

Details of the Offering

According to the press release, the unsecured notes can be redeemed partially or in full at the discretion of FSK, allowing for greater financial flexibility. Importantly, potential investors should take note that these notes may also be redeemed at their par value three months ahead of their maturity date. The anticipated closing date for this public offering is June 8, 2026, subject to standard conditions affecting such transactions.

Underwriting Team

FS KKR has enlisted a prestigious group of financial institutions to manage this offering. Leading the underwriting efforts are BofA Securities, Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, KKR Capital Markets LLC, RBC Capital Markets, LLC, and SMBC Nikko Securities America, Inc. Further backing is provided by a cohort of joint lead managers including HSBC Securities (USA) Inc., ING Financial Markets LLC, and Morgan Stanley & Co. LLC, among others. This comprehensive team is a testament to the high confidence placed in the offering and the firm's financial stability.

Purpose of the Proceeds

The funds generated from this offering are intended primarily for general corporate purposes. Specifically, FSK aims to utilize the net proceeds to pay down existing indebtedness associated with its credit facilities and certain other notes. This strategic decision aligns with the company’s objective of maintaining a robust and efficient capital structure while maximizing shareholder value.

Investment Considerations

Investors are strongly encouraged to conduct thorough due diligence on FSK before committing to an investment of this nature. Vital information regarding investment risks, objectives, charges, and the nuances of this offering can be found in the pricing term sheet, the preliminary prospectus supplement filed with the SEC, along with the accompanying prospectus. These documents provide critical insights and should be carefully reviewed prior to any operational decisions related to the securities.

About FS KKR Capital Corp.

FS KKR Capital Corp. holds a prominent place among publicly traded business development companies (BDCs), specializing in tailored credit solutions for private middle-market companies in the United States. The firm strategically focuses on investing in senior secured debt and subordinated loans, alongside various asset-based financing options. Its investment decisions are guided by FS/KKR Advisor, LLC, an experienced advisory partnership that crafts the investment strategies behind FSK and other similar companies.

The Role of FS/KKR Advisor, LLC

FS/KKR Advisor, LLC plays an integral role in the operations of FSK by providing critical investment advice and strategy development. This partnership is grounded in a shared commitment to fostering growth and innovation across the middle market. With a legacy that spans over 30 years, Future Standard, the parent company of FS/KKR, boasts an impressive $94 billion in assets under management, funding diverse investments that contribute to sustainable business development and value creation.

Conclusion

The public offering of unsecured notes by FS KKR Capital Corp. represents a significant financial maneuver aimed at sustaining corporate growth and optimizing its balance sheet. This move not only reflects the firm's confidence in its financial strategies but also highlights its commitment to delivering value to investors and stakeholders alike. As the market awaits further developments on this offering, it will be crucial for prospective investors to consider the risks and advantages associated with this unique investment opportunity.