FS KKR Capital Corp (FS Investment Corporation) - 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed on October 24, 2013, by FS Investment Corporation (FSIC). The report details a material definitive agreement entered into on the same date involving Race Street Funding LLC, a wholly-owned, special-purpose, bankruptcy-remote financing subsidiary of FSIC.
Key Financial Metrics and Facility Terms
The filing focuses on amendments to a repurchase transaction facility (the "JPM Facility") with JPMorgan Chase Bank, N.A., London Branch. The following adjustments were made to the collateral requirements:
- Aggregate Market Value of Collateral: Decreased from $814,000,000 to $720,000,000 on the Amendment Date and for future distribution dates.
- Aggregate Minimum Market Value of Portfolio: Decreased from $678,000,000 to $648,000,000 effective on and after the Amendment Date.
- Concentration Limitations: Certain limitations on the Portfolio were revised.
The filing does not provide specific values for revenue, profit, cash flow, margins, or overall debt levels for the parent company, as the report is limited to the terms of this specific financing amendment.
Material Changes Versus Prior Period
The primary material change is the reduction in the required collateral thresholds for the JPM Facility. The aggregate market value requirement was reduced by $94,000,000, and the minimum market value requirement was reduced by $30,000,000. No other material terms of the facility were changed.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of general risks and contingencies beyond the specific terms of the amended agreement. The document notes that the description of the amendment is a summary and is qualified by the full text of the Amendment Agreement filed as Exhibit 10.1.
Key Facts for Investor Verification
- Verify the full text of the Amendment Agreement (Exhibit 10.1) to understand the specific revised concentration limitations.
- Confirm the impact of the reduced collateral requirements on the subsidiary's ability to effect distributions to FSIC.
- Review subsequent filings to determine if the reduced collateral thresholds were utilized to return capital to shareholders.