- FS KKR Capital (NYSE:FSK) and FS KKR Capital II (NYSE:FSKR) to form a single entity with $14.9B in AUM, $7.2B in net asset value and over $3B of committed capital available to new investment opportunities, each on a pro forma basis as of September 30, 2020.
- Under the terms of the agreement, shareholders of FSKR will receive a number of FSK shares with a NAV per share equal to the NAV of the FSKR shares they hold.
- FSK will be the surviving entity and will continue to be managed by FS/KKR and trade on the New York Stock Exchange under the ticker symbol "FSK".
- The combination will result in reduced overall expenses and a stronger dividend profile.
- The transaction is expected to close during 2Q21.
- Prior to the closing of the merger, FS/KKR currently expects FSK and FSKR each to continue to declare quarterly distributions in the normal course of business, subject to board approval.
- On a pro forma basis, ~72% of the combined company's investment portfolio will be comprised of senior secured debt investments.
- Source: Press Release