PHILADELPHIA and NEW YORK,
June 17, 2020 /PRNewswire/ -- FS
KKR Capital Corp. II (FSKR), a leading business development company
(BDC) focused on providing customized credit solutions to private
middle market U.S. companies, announced today that its shares of
common stock commenced trading on the New York Stock Exchange
(NYSE) under the ticker symbol "FSKR." FSKR, together with its
affiliate, FS KKR Capital Corp. (NYSE: FSK), represents the second
largest publicly traded BDC platform in the market.
Michael Forman, Chief Executive
Officer of FSKR, commented, "We are pleased to complete the listing
of FSKR on the NYSE and deliver on our commitment to shareholders.
We believe that the listing serves as a catalyst to unlock
significant capital which can be deployed to help maximize
shareholder value as well as further strengthen FSKR's position as
a leading BDC."
Daniel Pietrzak, Co-President and
Chief Investment Officer of FSKR, added, "Following the listing,
FSKR anticipates shareholder approval of its proposal to decrease
its asset coverage requirement, which would enable FSKR to access
in excess of $1 billion of previously
committed financing lines across its balance sheet. This additional
flexibility will enhance our investment capacity as we support our
existing portfolio companies and think strategically about
expanding our portfolio through new investments."
On June 10, 2020, FSKR effected a
4 to 1 reverse split of its shares of common stock. As a result,
every four shares of FSKR common stock issued and outstanding were
automatically combined into one share of FSKR common stock, and the
number of outstanding shares was reduced from approximately 691.2
million to approximately 172.9 million. As adjusted to give effect
to the reverse stock split, FSKR's net asset value per share as of
March 31, 2020 would have been
$24.68, instead of $6.17 per share. The reverse stock split does not
modify the rights or preferences of FSKR's common stock.
As previously announced, on May 26,
2020, FSKR's Board of Directors authorized a share
repurchase program. Under the program, FSKR may repurchase up to
$100 million in aggregate of its
outstanding common stock in the open market. The timing, manner,
price and amount of any share repurchases will be determined by
FSKR, in its discretion, based upon the evaluation of economic and
market conditions, FSKR's stock price, applicable legal and
regulatory requirements and other factors. Additionally, certain
affiliates of the owners of FSKR's investment advisor, FS/KKR
Advisor, LLC, have committed $100
million to a $350 million
investment vehicle that may invest from time to time in shares of
FSKR and its affiliate, FSK. There can be no assurance that FSKR or
the investment vehicle will purchase any FSKR shares.
J.P. Morgan, Morgan Stanley, Keefe, Bruyette & Woods, A
Stifel Company, and SunTrust Robinson Humphrey are serving as
lead advisors to FSKR in connection with the listing. Barclays, BMO
Capital Markets, BNP PARIBAS, BofA Securities, Citigroup Global
Markets Inc., Compass Point, Credit Suisse, Deutsche Bank
Securities, Goldman Sachs & Co. LLC, HSBC, ING, KKR Capital
Markets, Mizuho Securities, MUFG, R. Seelaus & Co., LLC, RBC
Capital Markets, SOCIETE GENERALE, SMBC Nikko and Wells Fargo
Securities are also acting as co-advisors.
About FS KKR Capital Corp. II
FS KKR Capital Corp. II (NYSE: FSKR) is a publicly traded BDC
focused on providing customized credit solutions to private middle
market U.S. companies. FSKR seeks to invest primarily in the senior
secured debt and, to a lesser extent, the subordinated debt of
private middle market companies. FSKR is advised by FS/KKR Advisor,
LLC.
About FS/KKR Advisor, LLC
FS/KKR Advisor, LLC is a partnership between FS Investments and
KKR Credit that serves as the investment adviser to BDCs with
approximately $15.6 billion in assets
under management as of March 31,
2020. The BDCs managed by FS/KKR Advisor, LLC are FS KKR
Capital Corp. (NYSE: FSK) and FS KKR Capital Corp. II (NYSE:
FSKR).
FS Investments is a leading asset manager dedicated to helping
individuals, financial professionals and institutions design better
portfolios. The firm provides access to alternative sources of
income and growth, and focuses on setting industry standards for
investor protection, education and transparency. FS Investments is
headquartered in Philadelphia, PA
with offices in New York, NY,
Orlando, FL, Washington, DC and Leawood, KS. Visit
www.fsinvestments.com to learn more.
KKR Credit is a subsidiary of KKR, a leading global investment
firm that manages multiple alternative asset classes, including
private equity, energy, infrastructure, real estate and credit,
with strategic partners that manage hedge funds. KKR aims to
generate attractive investment returns for its fund investors by
following a patient and disciplined investment approach, employing
world-class people, and driving growth and value creation with KKR
portfolio companies. KKR invests its own capital alongside the
capital it manages for fund investors and provides financing
solutions and investment opportunities through its capital markets
business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about
KKR & Co. Inc. (NYSE: KKR), please visit KKR's website at
www.kkr.com and on Twitter @KKR_Co.
Forward-Looking Statements and Important Disclosure
Notice
This announcement may contain certain forward-looking
statements, including statements with regard to future events or
the future performance or operations of FSKR. Words such as
"believes," "expects," "projects," and "future" or similar
expressions are intended to identify forward-looking statements.
These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. Certain
factors could cause actual results to differ materially from those
projected in these forward-looking statements. Factors that could
cause actual results to differ materially include changes in the
economy, risks associated with possible disruption in FSKR's
operations or the economy generally due to terrorism, natural
disasters or pandemics including COVID-19, future changes in laws
or regulations and conditions in FSKR's operating area, unexpected
costs, the impact on access to capital due to changes in covenant
levels under FSKR's debt agreements and other factors, the price at
which FSKR's shares of common stock trade on the NYSE, that FSKR
and/or the investment vehicle may not purchase FSKR shares as
anticipated or at all. Some of these factors are enumerated in the
filings FSKR makes with the SEC. FSKR undertakes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact Information:
Advisors and Retail Investors
877-628-8575
Institutional Investors
Robert
Paun
Robert.Paun@fsinvestments.com
Media (FS Investments)
Melanie
Hemmert
Media@fsinvestments.com
Media (KKR)
Kristi Huller or Miles Radcliffe-Trenner
media@kkr.com
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SOURCE FS KKR Capital Corp. II