FS KKR Capital Corp. Prices $750M Notes for Global Atlantic Acquisition
Ticker: FSK · Form: 8-K · Filed: Oct 9, 2024 · CIK: 1422183
| Field | Detail |
|---|---|
| Company | Fs Kkr Capital Corp (FSK) |
| Form Type | 8-K |
| Filed Date | Oct 9, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.70 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt-offering, acquisition, financing
TL;DR
FS KKR Capital Corp. just priced $750M in notes to buy Global Atlantic. Big move!
AI Summary
FS KKR Capital Corp. announced on October 9, 2024, that it has priced a public offering of $750 million aggregate principal amount of 7.750% senior unsecured notes due 2030. The company expects to use the net proceeds from this offering, along with cash on hand, to fund its previously announced acquisition of Global Atlantic Financial Group Limited.
Why It Matters
This debt issuance is a key step in FS KKR Capital Corp.'s significant acquisition of Global Atlantic, which could reshape its business and financial profile.
Risk Assessment
Risk Level: medium — The company is taking on significant debt to finance a large acquisition, which introduces financial risk and integration challenges.
Key Numbers
- $750.0M — Senior Unsecured Notes (Amount priced for public offering to fund acquisition)
- 7.750% — Interest Rate (Coupon on the senior unsecured notes due 2030)
- 2030 — Maturity Date (Due date for the senior unsecured notes)
Key Players & Entities
- FS KKR Capital Corp. (company) — Registrant
- Global Atlantic Financial Group Limited (company) — Acquisition Target
- $750 million (dollar_amount) — Principal amount of notes
- 7.750% (dollar_amount) — Interest rate on notes
- 2030 (date) — Maturity date of notes
- October 9, 2024 (date) — Date of pricing
FAQ
What is the purpose of the $750 million note offering?
The $750 million aggregate principal amount of 7.750% senior unsecured notes due 2030 is intended to fund FS KKR Capital Corp.'s previously announced acquisition of Global Atlantic Financial Group Limited.
When did FS KKR Capital Corp. price these notes?
FS KKR Capital Corp. priced the notes on October 9, 2024.
What is the interest rate on the new notes?
The notes carry a fixed interest rate of 7.750% per annum.
What is the maturity date of the notes?
The senior unsecured notes are due in 2030.
How will the net proceeds from the offering be used?
The net proceeds, along with cash on hand, are expected to be used to fund the acquisition of Global Atlantic Financial Group Limited.
Filing Stats: 727 words · 3 min read · ~2 pages · Grade level 11 · Accepted 2024-10-09 16:27:26
Key Financial Figures
- $0.70 — announced a cash distribution totaling $0.70 per share, which will be paid on or abo
Filing Documents
- tm2425846d1_8k.htm (8-K) — 30KB
- tm2425846d1_ex99-1.htm (EX-99.1) — 9KB
- tm2425846d1_ex99-1img001.jpg (GRAPHIC) — 8KB
- 0001104659-24-107354.txt ( ) — 222KB
- fsk-20241009.xsd (EX-101.SCH) — 3KB
- fsk-20241009_lab.xml (EX-101.LAB) — 33KB
- fsk-20241009_pre.xml (EX-101.PRE) — 22KB
- tm2425846d1_8k_htm.xml (XML) — 3KB
02
Item 2.02. Results of Operations and Financial Condition. On October 9, 2024, FS KKR Capital Corp. announced that it will host a conference call at 9:00 a.m. (Eastern Time) on Thursday, November 7, 2024, to discuss its third quarter 2024 results. A copy of the press release announcing the conference call is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
01. Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure. In the Press Release, the Company announced a cash distribution totaling $0.70 per share, which will be paid on or about December 18, 2024 to stockholders of record as of the close of business on December 4, 2024. The Company will make available under the "Events + presentation" page within the "Investor relations" section of the Company's website ( www.fskkradvisor.com/fsk ) a presentation containing financial and operating information in advance of its November 7, 2024 conference call.
Forward-Looking Statements
Forward-Looking Statements This Current Report on Form 8-K may contain certain forward-looking statements, including statements with regard to future events or the future performance or operation of the Company. Words such as "believes," "expects," "projects" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking disruption in the Company's operations or the economy generally due to terrorism, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in the Company's operating area, and the price at which shares of common stock may trade on the New York Stock Exchange. Some of these factors are enumerated in the filings the Company makes with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits. EXHIBIT NUMBER DESCRIPTION 99.1 Press Release, dated October 9, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FS KKR Capital Corp. Date: October 9, 2024 By: /s/ Stephen Sypherd Stephen Sypherd General Counsel EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION 99.1 Press Release, dated October 9, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).