Published on 7/9/2019 in the Prospect News Investment Grade Daily.
New Issue: FS KKR gives details on upsized $400 million 4.625% notes due 2024
By Devika Patel
Knoxville, Tenn., July 9 – FS KKR Capital Corp. (Baa3//BBB-) offered further details about an upsized $400 million sale of 4.625% five-year notes that priced on Monday at a spread of 287.5 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.52 to yield 4.734%.
The deal was upsized from $300 million.
Price guidance was in the Treasuries plus 287.5 bps to 300 bps area.
J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., BMO Capital Markets Corp., SMBC Nikko Securities America, Inc., ING Financial Markets LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, KKR Capital Markets LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, ICBC Standard Bank plc, SG Americas Securities LLC, BNP Paribas Securities Corp., Keefe, Bruyette & Woods, Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.
The company held fixed income investor calls on June 27 for the registered offering.
Proceeds will be used to repay outstanding debt under the company’s financing arrangements.
FS KKR also closed in June on a debut $507.5 million middle-market collateralized loan obligation called FS KKR MMC CLO 1 Ltd./FS KKR CLO 1 LLC.
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
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| Description: | Notes
|
| Maturity: | July 15, 2024
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| Bookrunners: | J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., BMO Capital Markets Corp., SMBC Nikko Securities America, Inc., ING Financial Markets LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, KKR Capital Markets LLC, BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., HSBC Securities (USA) Inc., Barclays, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, ICBC Standard Bank plc, SG Americas Securities LLC, BNP Paribas Securities Corp., Keefe, Bruyette & Woods, Inc. and U.S. Bancorp Investments, Inc.
|
| Coupon: | 4.625%
|
| Price: | 99.52
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| Yield: | 4.734%
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| Spread: | Treasuries plus 287.5 bps
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| Call: | The greater of a make-whole call at Treasuries plus 45 bps and a par call
|
| Change-of-control put: | Par
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| Trade date: | July 8
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| Settlement date: | July 15
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 287.5 bps to 300 bps area
|
| Marketing: | Fixed income investor calls
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