Business Context and Reporting Period
FS Investment Corporation (filing as FS KKR Capital Corp) submitted a Form 8-K on March 16, 2017, reporting the entry into a material definitive agreement. The registrant is incorporated in Maryland and maintains its principal executive offices in Philadelphia, Pennsylvania.
Key Financial Metrics and Debt Structure
This filing details a restructuring of the Company's Senior Secured Revolving Credit Agreement rather than reporting operational financial performance metrics such as revenue or profit. Key debt metrics updated in this agreement include:
- Increased Commitments: Lender commitments raised to $327,500,000.
- Accordion Provision: Capacity to increase commitments up to $600,000,000.
- Revised Maturities: Revolving period extended to March 16, 2020; final maturity date set to March 16, 2021.
- Reduced Interest Margins: Applicable Margin decreased to 1.25% for ABR Loans and 2.25% for Eurocurrency Loans.
The filing text does not provide clear values for revenue, net income, operating cash flow, or current liquidity positions outside of the credit facility terms.
Material Changes Versus Prior Period
Compared to the prior credit agreement terms (dated April 3, 2014), the material changes include:
- Expansion of total available credit capacity.
- Extension of the loan term by approximately three years.
- Reduction in borrowing costs via lower applicable margins.
- Payment of certain fees associated with the amendment.
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 of the amendment terms. The primary focus is the execution of the Second Amendment to the Credit Agreement with ING Capital LLC as the administrative agent.
Investor Verification Checklist
- Verify the full text of Exhibit 10.1 (Amendment No. 2) for specific covenants and conditions not summarized in the 8-K.
- Confirm the exact amount of fees paid in connection with the amendment.
- Review the Company's most recent 10-Q or 10-K to assess current utilization of the $327.5 million facility and overall leverage ratios.
- Check for any subsequent filings regarding the exercise of the accordion provision to reach the $600 million cap.