FS KKR’s Locust Street unit gets $725 million restated facility

By Marisa Wong

Morgantown, W.Va., March 8 – FS KKR Capital Corp. wholly owned special purpose financing subsidiary Locust Street Funding LLC entered into an amended and restated loan agreement on March 4 with JPMorgan Chase Bank, NA as administrative agent for a $725 million committed facility, according to an 8-K filing with the Securities and Exchange Commission.

Locust Street restated its loan agreement dated Nov. 1, 2016 upon merging with another FS KKR special purpose financing subsidiary, CCT New York Funding LLC.

The new facility amount is equal to the $425 million available under Locust Street’s previous loan agreement plus $300 million previously available under CCT New York’s loan agreement dated Nov. 29, 2016.

Borrowings may be made in foreign currencies up to a specified sublimit.

Interest is equal to Libor plus 250 basis points.

The facility extends the maturity date to Jan. 31, 2021 for $325 million of the committed facility amount and to Sept. 28, 2022 for the remaining $400 million of the committed facility amount.

The loan agreement also provides for a reinvestment period through Sept. 28, 2021; permitted prepayment of all or a portion of the 2021 committed amount after April 1, 2019 without a prepayment premium; permitted prepayment of all or a portion of the 2022 committed amount after March 4, 2020, subject to a prepayment premium equal to 1.5% of the principal amount of any such prepayment between March 5, 2020 and Sept. 29, 2020, subject to a prepayment premium equal to 0.5% of the principal amount of any such prepayment between Sept. 29, 2020 and Jan. 1, 2021 and without any prepayment premium after that.

In addition, the facility provides for an unfunded fee in an amount equal to the product of the interest rate applicable to U.S. dollar borrowings on any day multiplied by the unborrowed amount, if any, below 80% of the committed facility amount and an unused fee of 0.75% per annum on the average daily unborrowed portion of the committed facility amount above the minimum funding amount.

FS KKR is a business development company based in Philadelphia.

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