FS KKR Capital Corp (FS Investment Corporation) - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed on July 13, 2010, by FS Investment Corporation (also referred to as FS KKR Capital Corp in the request metadata). The filing reports on a material definitive agreement and the creation of a direct financial obligation involving the company's wholly-owned financing subsidiary, Broad Street Funding LLC.
Key Financial Metrics and Obligations
- Debt Facility Increase: The maximum borrowing capacity under the revolving credit facility with Deutsche Bank AG, New York Branch was increased from $140 million to $240 million.
- Interest Rate Reduction: The borrowing cost was lowered from LIBOR + 250 basis points to LIBOR + 223 basis points per annum.
- Collateral: Additional loans were contributed by FS Investment Corporation to Broad Street Funding LLC to serve as collateral for the amended facility.
- Revenue and Profit: The filing text does not provide a clear value for revenue, profit, cash flow, or margins as this is a transactional report rather than a periodic financial statement.
Material Changes Versus Prior Period
The primary material change is the amendment of the credit agreement originally established on March 10, 2010. The facility size increased by $100 million, and the interest spread decreased by 27 basis points. No other material terms of the revolving credit facility were changed.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard incorporation by reference of the amended agreements. The transaction involved an amendment fee paid to Deutsche Bank, though the specific amount is not disclosed in the text.
Key Facts for Investor Verification
- Verify the total outstanding balance under the new $240 million facility limit.
- Confirm the specific amount of the amendment fee paid to Deutsche Bank.
- Review the details of the additional loans contributed as collateral in the First Asset Contribution Agreement Amendment.
- Check subsequent filings for any further amendments to the credit agreement terms.