New Issue: FS KKR Capital sells $1 billion of 3.4% five-year notes at 325 bps over Treasuries

By Cristal Cody

Tupelo, Miss., Dec. 3 – FS KKR Capital Corp. (Baa3//BBB-) priced an upsized $1 billion of 3.4% notes due Jan. 15, 2026 on Thursday at a spread of 325 basis points over Treasuries, tighter than initial talk in the 350 bps spread area, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at 98.83 to yield 3.653%.

The deal was upsized from $400 million.

Bookrunners were BofA Securities, Inc., BMO Capital Markets Corp., ING Financial Markets LLC, MUFG, SMBC Nikko Securities America, Inc., Truist Securities, Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and KKR Capital Markets LLC.

Lead managers were Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Barclays, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC.

Proceeds will be used to repay debt.

The Philadelphia-based business development company invests mainly in senior secured and subordinated debt of private middle-market U.S. companies.

Issuer:	FS KKR Capital Corp.
Amount:	$1 billion
Description:	Notes
Maturity:	Jan. 15, 2026
Bookrunners:	BofA Securities, Inc., BMO Capital Markets Corp., ING Financial Markets LLC, MUFG, SMBC Nikko Securities America, Inc., Truist Securities, Inc., J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and KKR Capital Markets LLC
Lead managers:	Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, Barclays, Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC
Co-managers:	BNP Paribas Securities Corp., SG Americas Securities, LLC, Compass Point Research & Trading, LLC, ICBC Standard Bank plc, R. Seelaus & Co., LLC, Keefe, Bruyette & Woods, Inc. and U.S. Bancorp Investments, Inc.
Coupon:	3.4%
Price:	98.83
Yield:	3.653%
Spread:	Treasuries plus 325 bps
Call features:	Make-whole call before Dec. 15, 2026 at Treasuries plus 50 bps; thereafter at par
Trade date:	Dec. 3
Settlement date:	Dec. 10
Ratings:	Moody’s: Baa3
	Fitch: BBB-
Distribution:	SEC registered
Price guidance:	Treasuries plus 350 bps area

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