FS KKR Capital Corp. Furnishes Update on $150M Convertible Preferred Stock Issuance and Fee Waiver
Summary
FS KKR Capital Corp. (FSK) closed its previously announced $150 million issuance of cumulative convertible perpetual preferred stock to KKR Alternative Assets L.P. on June 29, 2026, at $25.00 per share (via Ex. 99.1). The company intends to use the proceeds for general corporate purposes, including funding common stock repurchases or debt repayment. Additionally, the Adviser agreed to waive 50% of the subordinated income incentive fee for the fiscal quarters ending June 30, 2026, through March 31, 2027 (via Ex. 99.2). - The Convertible Preferred Stock pays dividends of 5.00% per annum in cash, or 7.00% PIK, increasing annually by 1.00% after 5.5 years. - It ranks senior to common stock and junior to existing indebtedness. - A registration rights agreement was also entered into with the Purchaser.
Why It Matters
The closing of the $150 million convertible preferred stock issuance (Ex. 99.1) provides significant capital for FSK, enhancing financial flexibility for debt repayment or share repurchases. The adviser's fee waiver (Ex. 99.2) also impacts the company's cost structure by reducing advisory fees for a specified period.
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Key Quote
“limited partnership (the "Purchaser"), on May 10, 2026, pursuant to which the Purchaser agreed to purchase $150.0 million.”
— From Item 1.01
Filing Details
Reported Items
Additional Information
- CIK Number
- 0001422183
- Filing Date
- Monday, June 29, 2026
- Filing Time
- 12:00 AM UTC
- Form Type
- 8-K
- Materiality Level
- high
- Sentiment
- neutral