FS KKR Capital Corp. Announces Significant $100 Million Debt Offering and Future Plans

FS KKR Capital Corp. Prices Public Offering of $100 Million

FS KKR Capital Corp., a prominent public business development company, announced a significant move in the financial sector with their recent pricing of an underwritten public offering. They are set to issue an additional $100 million in unsecured notes featuring a yield of 6.125%, maturing on January 15, 2030.

This offering marks a strategic reopening of existing notes and reflects the company's proactive approach towards financing and investment stability. FSK plans to use the proceeds from this offering for various corporate purposes, which could include repaying existing debts under credit facilities as well as other outstanding notes. This strategic funding initiative indicates FSK's commitment to strengthening its financial foundation while navigating the complexities of the current market.

The offering is expected to finalize on December 27, 2024, contingent upon typical closing conditions. A consortium of financial institutions, including BofA Securities, Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, and others, are acting as joint book-running managers for the transaction. Their participation underlines the confidence in FSK's prospects and the attractiveness of this debt offering.

Investors are advised to examine their strategic objectives, risk scenarios, and consider the various charges and expenses associated with investing in FSK securities. Detailed information including the pricing term sheet and prospectus has been filed with the U.S. Securities and Exchange Commission (SEC) and is available for potential investors to review. This documentation will help clarify the details surrounding the investment, including possible risks and the overall financial health of FSK.

Besides the immediate financial benefits, this offering highlights FS KKR Capital Corp.'s strategy of making calculated moves in a volatile market. As a leader in providing tailored credit solutions to the private middle market in the U.S., their investment focus remains primarily on senior secured and, to some extent, subordinated debts. The firm's expertise in managing more than $83 billion in assets enhances their ability to adapt and respond to market changes effectively.

FS KKR Capital Corp.'s operations are backed by FS/KKR Advisor, LLC, a partnership designed to drive innovation and performance in investment strategies. FS Investments, the parent company, is dedicated to creating diverse asset management solutions, tapping into a range of financial strategies, and enhancing long-term value for stakeholders.

KKR, another key player in the business, provides a robust support system for FSK through its global investments. Their disciplined and patient investment approach focuses on promoting growth, ultimately aiming to generate attractive returns for investors while driving community progress.

Despite the opportunities presented by the offering, potential investors should be cognizant of possible market fluctuations influenced by various global events. The announcement includes standard forward-looking statements, cautioning that actual outcomes may vary due to different influencing factors such as economic conditions, regulatory changes, and market disruptions.

In summary, FS KKR Capital Corp.’s public offering of $100 million at a 6.125% yield represents a significant and strategic step toward solidifying its financial base and enhancing its investments in growth-oriented initiatives. As FSK continues to forge ahead in the dynamic landscape of corporate finance, it remains committed to transparency, strategic planning, and stakeholder engagement.

For more information on investing in this exciting opportunity, interested parties are encouraged to explore the detailed prospectus available through the SEC or by contacting the underwriting banks directly for comprehensive consultations regarding this public offering.