FS KKR accepts tenders for $214 million of 4.25% notes due 2020

By Sarah Lizee

Olympia, Wash., Nov. 20 – FS KKR Capital Corp. announced the final results of its cash tender offer for any and all of its $405 million of 4.25% notes due 2020.

As of the expiration date of 5 p.m. ET on Nov. 19, about $214 million, or 52.9% of the outstanding amount, of notes had been tendered in the offer.

Payment for the tendered notes was made on Nov. 20.

As previously reported, the consideration is $1,001.50 per $1,000 of notes.

Holders also received accrued interest.

The tender offer was conditioned on FS KKR completing an offering of new senior notes in an amount sufficient to effect the repurchase of the 2020 notes in the tender offer and to redeem any remaining notes. On Nov. 13, the company sold $425 million of 4.125% notes due 2025.

FS KKR used about $218 million of the proceeds from the new notes to finance the tender offer, and will use some of the remaining proceeds will be used to redeem the rest of the 4.25% notes on Dec. 16 at par plus accrued interest up to but excluding the redemption date.

J.P. Morgan Securities LLC (212 834-8553 collect or 866 834-4666 toll-free) is the dealer manager, and D.F. King & Co., Inc. (fsk@dfking.com, 212 269-5550 for banks and brokers or 866 796-1290 all others) is the tender agent.

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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