Tender Offer Now Subject to Antitrust Review; Preferred Stock Terms Clarified with Uncapped Increases

summarizeSummary

FS KKR Capital Corp. filed an amendment to its tender offer statement, adding an antitrust condition to KKR's $150 million tender offer and clarifying that there is no cap on certain annual increases related to KKR's preferred stock investment.

check_boxKey Events

• Tender Offer Condition Added

  The $150 million tender offer by KKR Alternative Assets L.P. to purchase common stock at $11.00 per share is now explicitly subject to antitrust clearance under the Hart-Scott-Rodino Act.

• Preferred Stock Term Clarified

  The purchase agreement for KKR's $150 million preferred stock investment has been amended to clarify that there is no cap on certain 1.00% per annum increases, potentially related to fees or dividends.

auto_awesomeAnalysis

This amendment provides new details regarding the ongoing tender offer and preferred stock investment from KKR. The addition of an antitrust condition introduces a regulatory hurdle for the $150 million tender offer, which was previously presented without such explicit conditions. Furthermore, the clarification that there is "no cap" on 1.00% per annum increases related to the preferred stock purchase agreement could imply uncapped future costs or obligations for FS KKR Capital, which is a notable detail for investors given the company's recent financial challenges and dividend cuts.