Corporate ActionJun 29, 2026, 05:12 PM
FS KKR Capital Corp. Closes $150M Convertible Preferred Stock Issuance
AI Summary
FS KKR Capital Corp. (FSK) announced the closing of its $150 million issuance of Cumulative Convertible Perpetual Preferred Stock, Series A, to KKR Alternative Assets L.P. The company issued 6,000,000 shares at $25.00 per share, with proceeds intended for general corporate purposes, including common stock repurchases or debt repayment. The preferred stock features a 5.00% annual cash dividend (or 7.00% PIK) and an initial conversion price of $18.83 per share. Additionally, FS/KKR Advisor, LLC agreed to waive 50% of its subordinated incentive fee on income for four fiscal quarters, from June 30, 2026, through March 31, 2027.
Key Highlights
- Closed $150 million convertible perpetual preferred stock issuance.
- Issued 6 million preferred shares at $25.00 each to KKR Alternative Assets L.P.
- Proceeds for general corporate purposes, including common stock repurchase or debt repayment.
- Preferred stock pays 5.00% cash dividend (or 7.00% PIK); rate increases 1% annually after 5.5 years.
- Initial conversion price is $18.83 per share; convertible after 6 months.
- Holders gain voting rights on as-converted basis and can elect two board members.
- Advisor to waive 50% of subordinated incentive fee on income for four quarters.
Price Impact
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