FS KKR Capital Corp. 8-K Summary
Business Context and Reporting Period
This Form 8-K reports on the Annual Meeting of Stockholders held by FS KKR Capital Corp. on June 14, 2019. The record date for the meeting was April 22, 2019, with 523,300,626 shares eligible to vote. Of these, 239,444,243 shares were voted in person or by proxy.
Key Financial Metrics
The filing does not provide specific financial performance metrics such as revenue, profit, cash flow, margins, or current debt levels. The report focuses on corporate governance and regulatory approvals regarding leverage capacity.
Material Changes and Voting Results
- Director Elections: All four Class C director nominees (Barbara Adams, Frederick Arnold, Michael C. Forman, and Jerel A. Hopkins) were elected for three-year terms expiring in 2022.
- Leverage Proposal Approved: Stockholders approved reducing the asset coverage requirement under Section 61(a)(2) of the Investment Company Act of 1940 from 200% to 150%. This change permits the Company to increase its maximum permitted leverage.
- Share Issuance Proposal Adjourned: The proposal to allow future share sales below net asset value did not receive sufficient votes to pass. The meeting was adjourned to solicit additional votes, with a reconvened meeting scheduled for July 16, 2019.
Outlook and Management Commentary
Effective June 15, 2019, the Company is required to maintain asset coverage for senior securities at 150% (allowing $2 of debt for investment purposes for each $1 of investor equity) rather than the previous 200% requirement. This regulatory change provides the Company with increased flexibility to incur debt for investment purposes.
Investor Verification Checklist
- Verify the implementation date of the new 150% asset coverage requirement (June 15, 2019).
- Monitor the outcome of the reconvened meeting on July 16, 2019, regarding the Share Issuance Proposal.
- Review the definitive proxy statement filed on April 23, 2019, for detailed rationale on the leverage and share issuance proposals.
- Confirm the voting breakdown for the Leverage Proposal (179,670,167 For; 50,094,857 Against).