Published on 6/10/2021 in the Prospect News Investment Grade Daily.
New Issue: FS KKR Capital prices $400 million of 2.625% notes due 2027 at 99.623
By Devika Patel
Knoxville, Tenn., June 10 – FS KKR Capital Corp. priced $400 million of 2.625% notes (Baa3/BBB-/BBB) due Jan. 15, 2027 at Treasuries plus 195 basis points on Wednesday, according to a press release and an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.623 to yield 2.698%.
The notes were talked in the area of 215 bps over Treasuries.
J.P. Morgan Securities LLC, RBC Capital Markets LLC and SMBC Nikko Securities America Inc. were the bookrunners.
Proceeds will be used for general corporate purposes, including 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: | $400 million
|
| Description: | Notes
|
| Maturity: | Jan. 15, 2027
|
| Bookrunners: | J.P. Morgan Securities LLC, RBC Capital Markets LLC and SMBC Nikko Securities America Inc.
|
| Underwriters: | BMO Capital Markets Corp., MUFG, KKR Capital Markets LLC, ING Financial Markets LLC, Truist Securities Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Barclays, BofA Securities Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, SG Americas Securities LLC, BNP Paribas Securities Corp., Compass Point Research & Trading LLC, Credit Suisse Securities (USA) LLC, ICBC Standard Bank plc, Keefe, Bruyette & Woods, Inc., R. Seelaus & Co., LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 2.625%
|
| Price: | 99.623
|
| Yield: | 2.698%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole call at Treasuries plus 30 bps until Dec. 15, 2026, then a par call
|
| Change-of-control put: | At 101
|
| Trade date: | June 9
|
| Settlement date: | June 17
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Guidance: | Treasuries plus 215 bps area
|
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