KKR Amends Tender Offer, Discloses Uncapped Cost Term for Preferred Stock
FSK is trading near its 52-week low of $9.72 (11% above the low).
Summary
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.
Key Events · Ownership and Investor Activity · FSK
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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.
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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.
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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."
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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.
Analysis · FSK · Unknown
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.
At the time of this filing, FSK was trading at $10.77 on NYSE in the Unknown sector, with a market capitalization of approximately $3B. The 52-week trading range was $9.72 to $22.68. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.