FS KKR Capital Corp. Form 8-K Summary
Business Context and Reporting Period
FS KKR Capital Corp. (NYSE: FSK), a Maryland corporation, filed this Current Report on Form 8-K on October 4, 2021. The filing reports the entry into a material definitive agreement regarding a new debt offering.
Key Financial Metrics and Transaction Details
The Company executed an underwriting agreement to issue two tranches of senior notes with an aggregate principal amount of $1.25 billion:
- Tranche 1: $500,000,000 aggregate principal amount of 1.650% Notes due 2024.
- Tranche 2: $750,000,000 aggregate principal amount of 3.125% Notes due 2028.
The offering was conducted pursuant to an effective shelf registration statement on Form N-2 (Registration No. 333-260000). The underwriters included BofA Securities, Inc., BMO Capital Markets Corp., KKR Capital Markets LLC, MUFG Securities Americas Inc., and Truist Securities, Inc.
Material Changes
This filing represents a material change in the Company's capital structure through the incurrence of new long-term debt obligations. The filing does not provide comparative financial performance data (revenue, profit, or cash flow) as it is a transaction-specific report rather than a periodic financial statement.
Outlook, Risks, and Management Commentary
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard incorporation by reference of the Underwriting Agreement. The full text of the Underwriting Agreement is filed as Exhibit 1.1.
Key Facts for Investor Verification
- Verify the total debt issuance of $1.25 billion and the specific interest rates (1.650% and 3.125%) for the respective maturities.
- Confirm the use of proceeds and the impact on the Company's leverage ratios by reviewing the full Underwriting Agreement (Exhibit 1.1).
- Check the Company's subsequent periodic reports (10-K or 10-Q) for the actual cash proceeds received after deducting underwriting discounts and commissions.
- Review the effective shelf registration statement (No. 333-260000) for any additional terms or conditions associated with the notes.