Published on 1/11/2022 in the Prospect News Investment Grade Daily.
New Issue: FS KKR prices $500 million 3.25% notes due 2027 to yield 3.377%
By Marisa Wong and Cristal Cody
Los Angeles, Jan. 11 – FS KKR Capital Corp. disclosed details of its $500 million sale of 3.25% notes due July 15, 2027 (Baa3//BBB-/Kroll: BBB) in an FWP filed Tuesday with the Securities and Exchange Commission.
The notes priced on Monday at 99.368 to yield 3.377%, or a spread of 185 basis points over Treasuries.
The notes were talked to yield in the Treasuries plus 200 bps area, according to a market source.
The notes feature a make-whole call until one month prior to maturity and then a par call.
BofA Securities, Inc., BMO Capital Markets Corp., KKR Capital Markets LLC, MUFG and SMBC Nikko Securities America, Inc. are joint bookrunners.
J.P. Morgan Securities LLC, ING Financial Markets LLC, Truist Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and RBC Capital Markets, LLC are also bookrunners.
Joint lead managers are BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc. and SG Americas Securities, LLC.
Proceeds will be used for general corporate purposes, including debt repayment.
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.
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| Amount: | $500 million
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| Issue: | Notes
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| Maturity: | July 15, 2027
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| Bookrunners: | BofA Securities, Inc., BMO Capital Markets Corp., KKR Capital Markets LLC, MUFG, SMBC Nikko Securities America, Inc., J.P. Morgan Securities LLC, ING Financial Markets LLC, Truist Securities, Inc., HSBC Securities (USA) Inc., Mizuho Securities USA LLC and RBC Capital Markets, LLC
|
| Joint lead managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, Santander Investment Securities Inc. and SG Americas Securities, LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, Compass Point Research & Trading, LLC, Hovde Group, LLC, ICBC Standard Bank plc, R. Seelaus & Co., LLC, Keefe, Bruyette & Woods, Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 3.25%
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| Price: | 99.368
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| Yield: | 3.377%
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| Spread: | Treasuries plus 185 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until June 15, 2027; par call after that
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| Pricing date: | Jan. 10
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| Settlement date: | Jan. 18
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| Ratings: | Moody’s: Baa3
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| Fitch: BBB-
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| Kroll: BBB
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| Talk: | Treasuries plus 200 bps area
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| Cusip: | 302635AL1
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