FSK FS KKR Capital Corp
Price Chart
Executive Summary
FS KKR Capital Corp. priced a $900M offering of 7.500% Notes due 2031 via an underwriting agreement with a syndicate of 26 banks. The notes were priced at par with a yield of 7.500%, representing a spread of T+332.6 bps over the 4.125% May 2031 Treasury. The transaction increases the company's leverage by $900M in new debt, a material credit event for the BDC.
Key Financial Metrics
Actionable Insight
The $900M note issuance increases FSK's leverage meaningfully at a relatively high cost of debt (7.500%). Monitor the company's upcoming quarterly earnings for net investment income coverage of the higher interest expense and any impact on net asset value. The T+332.6 bps spread reflects the BDC's credit profile; any rating agency action (especially Moody's Ba1 stable) would be a key catalyst.
Key Facts
- Issued $900,000,000 aggregate principal amount of 7.500% Notes due August 1, 2031
- Underwriters purchased at 99.000% of par; issue price to public was 100.000%
- Coupon of 7.500%, yield to maturity of 7.500%, spread of T+332.6 bps
- Settlement date June 8, 2026 (T+5); maturity August 1, 2031
- Ratings: Fitch BB+ (Neg), Kroll BBB- (Stable), Moody's Ba1 (Stable)
- Optional redemption at make-whole (T+50 bps) prior to May 1, 2031, then at par
- Net proceeds to be used for general corporate purposes, including repaying debt and investing in portfolio companies
Financial Impact
Adds $900M in new senior unsecured debt at 7.500% coupon, increasing annual interest expense by ~$67.5M
Risk Factors
- Higher leverage from $900M new debt could pressure net investment income coverage ratios
- 7.500% coupon adds ~$67.5M in annual interest expense, reducing distributable earnings
- Potential for credit rating downgrade if leverage increases materially above current levels
- BDC sector sensitivity to interest rate changes and credit market conditions
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-069537 |
| Document: tm2616700d2_8k.htm | 0001104659-26-069537 |
| Document: 0001104659-26-069537-index-headers.html | 0001104659-26-069537 |
| Document: 0001104659-26-069537-index.html | 0001104659-26-069537 |
| Document: 0001104659-26-069537.txt | 0001104659-26-069537 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 8, 2026
4d ago
|
8-K
| $10.64 awaiting T+1 | awaiting T+1 | — | $11.06 (+3.95%) |
|
Jun 2, 2026
10d ago
|
8-K
| $10.80 $10.97 | ▼ −1.57% | ▼ −1.18% | $11.06 (−2.41%) |
|
Jun 2, 2026
10d ago
|
8-K
| $10.90 $10.80 | ▼ −0.92% | ▼ −0.20% | $11.06 (+1.47%) |
|
May 18, 2026
25d ago
|
8-K
| $10.59 $10.96 | ▲ +3.49% | ▲ +2.45% | $11.06 (+4.44%) |
|
May 12, 2026
4w ago
|
8-K
| $10.72 $10.72 | · 0.00% | ▲ +0.00% | $11.06 (+3.17%) |
|
May 11, 2026
4w ago
|
8-K
| $10.76 $10.78 | ▼ −0.19% | ▼ −0.32% | $11.06 (−2.79%) |
|
May 5, 2026
5w ago
|
DEFA14A
| $11.50 $11.42 | ▼ −0.70% | ▼ −2.08% | $11.06 (−3.83%) |
|
Apr 30, 2026
6w ago
|
DEFA14A
| $11.55 $11.62 | ▲ +0.61% | ▲ +0.95% | $11.06 (−4.24%) |
|
Apr 30, 2026
6w ago
|
DEFA14A
| $11.55 $11.62 | ▲ +0.61% | ▲ +0.95% | $11.06 (−4.24%) |
|
Apr 30, 2026
6w ago
|
DEFA14A
| $11.55 $11.62 | ▲ +0.61% | ▲ +0.95% | $11.06 (−4.24%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access