KKR Amends Tender Offer, Discloses Uncapped Cost Term for Preferred Stock

summarizeSummary

KKR has amended its tender offer statement, revealing an uncapped annual increase term for the $150 million preferred stock investment and clarifying the purpose of the capital injection is to support FSK's share price.

check_boxKey Events

• Tender Offer Amendment

  KKR Alternative Assets L.P. amended its tender offer to purchase up to $150 million of FSK common stock at $11.00 per share, consistent with the original offer.

• Uncapped Preferred Stock Cost Term

  The amendment discloses that there is "no cap" on the 1.00% per annum increases for the $150 million convertible preferred stock investment from KKR, a new detail regarding the cost structure.

• Clarified Purpose of Offer

  The filing explicitly states the tender offer and preferred stock investment are for "supporting the share price of the Company" and "supporting the Company through a direct investment."

• New Bidder Named

  KKR Alternative Assets Limited, the general partner of the Purchaser, is now named as a bidder due to its control over the Purchaser.

auto_awesomeAnalysis

This amendment to KKR's tender offer statement provides additional details regarding the previously announced $150 million convertible preferred stock investment. A key update is the disclosure that there is "no cap" on the 1.00% per annum increases associated with the preferred stock, which could lead to escalating costs for FS KKR Capital Corp over time. The filing also clarifies that the tender offer and preferred stock investment are intended to support the company's share price.