FS KKR upsizes revolver to $4.64 billion, extends maturity, lowers rate

By Rebecca Melvin

Concord, N.H., May 18 – FS KKR Capital Corp. amended its second amended and restated senior secured revolving credit facility on May 17, providing for a $615 million upsize to $4.64 billion from $4.025 billion and extends the revolving period to May 17, 2026 from December 23, 2024, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also upsizes the company’s option to request, at one or more times, that existing and/or new lenders, at their election, provide additional commitments of up to $2.32 billion additional commitments, from an amount of up to $2,012,500,000 additional commitments. It also extension of the scheduled maturity date to May 17, 2027 from Dec. 23, 2025.

In addition, the amendment reduced the applicable margin on borrowings to 187.5 basis points plus term SOFR from 200 bps plus term SOFR with a step down to 175 bps if the value of the gross borrowing base is equal to or greater than 1.6 times the amount of certain outstanding debt of the company.

The commitment fee was reduced to 37.5 bps per year, based on the preceding quarter’s average usage, from up to 50 bps per year on the unused portion of the company’s sublimit under the credit agreement during the revolving period.

The amendment also replaced Libor benchmark provisions with SOFR benchmark provisions. There is an availability of a swingline subfacility of up to $100 million, the deletion of the requirement that the company make mandatory prepayment of interest and principal upon certain events at certain times when the company’s adjusted asset coverage ratio is less than 185% and a reset of the minimum shareholders’ equity that must be maintained, measured as of each fiscal quarter end.

JPMorgan Chase Bank, NA is administrative agent of the credit agreement; ING Capital LLC is syndication agent, and Bank of Montreal, Truist Bank, MUFG Union Bank NA and Sumitomo Mitsui Banking Corp. are documentation agents with JPMorgan, ING, BMO Capital Markets Corp., MUFG Union, Sumitomo Mitsui and Truist as joint bookrunners and joint lead arrangers.

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

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