The $900M note issuance increases FSK's leverage meaningfully at a relatively high cost of debt (7.500%). Monitor the company's upcoming quarterly earnings for net investment income coverage of the higher interest expense and any impact on net asset value. The T+332.6 bps spread reflects the BDC's credit profile; any rating agency action (especially Moody's Ba1 stable) would be a key catalyst.
Price Chart
Executive Summary
FS KKR Capital Corp. priced a $900M offering of 7.500% Notes due 2031 via an underwriting agreement with a syndicate of 26 banks. The notes were priced at par with a yield of 7.500%, representing a spread of T+332.6 bps over the 4.125% May 2031 Treasury. The transaction increases the company's leverage by $900M in new debt, a material credit event for the BDC.
Key Financial Metrics
Key Facts
- Issued $900,000,000 aggregate principal amount of 7.500% Notes due August 1, 2031
- Underwriters purchased at 99.000% of par; issue price to public was 100.000%
- Coupon of 7.500%, yield to maturity of 7.500%, spread of T+332.6 bps
- Settlement date June 8, 2026 (T+5); maturity August 1, 2031
- Ratings: Fitch BB+ (Neg), Kroll BBB- (Stable), Moody's Ba1 (Stable)
- Optional redemption at make-whole (T+50 bps) prior to May 1, 2031, then at par
- Net proceeds to be used for general corporate purposes, including repaying debt and investing in portfolio companies
Financial Impact
Adds $900M in new senior unsecured debt at 7.500% coupon, increasing annual interest expense by ~$67.5M
Risk Factors
- Higher leverage from $900M new debt could pressure net investment income coverage ratios
- 7.500% coupon adds ~$67.5M in annual interest expense, reducing distributable earnings
- Potential for credit rating downgrade if leverage increases materially above current levels
- BDC sector sensitivity to interest rate changes and credit market conditions
Market Snapshot
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-069537 |
| Document: tm2616700d2_8k.htm | 0001104659-26-069537 |
| Document: 0001104659-26-069537-index-headers.html | 0001104659-26-069537 |
| Document: 0001104659-26-069537-index.html | 0001104659-26-069537 |
| Document: 0001104659-26-069537.txt | 0001104659-26-069537 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 29, 2026 13w ago | 8-K | $10.50 $11.17 | ▲ +6.38% | ▲ +3.56% | $11.11 (+5.81%) |
Jun 23, 2026 14w ago | DEFA14A | $10.04 $11.74 | ▲ +16.93% | ▲ +14.09% | $11.11 (+10.66%) |
Jun 8, 2026 16w ago | 8-K | $10.87 $12.25 | ▲ +12.70% | ▲ +8.88% | $11.11 (+2.21%) |
Jun 2, 2026 17w ago | 8-K | $10.80 $12.23 | ▼ −13.24% | ▼ −10.74% | $11.11 (−2.87%) |
Jun 2, 2026 17w ago | 8-K | $10.90 $12.16 | ▲ +11.56% | ▲ +10.44% | $11.11 (+1.93%) |
May 18, 2026 19w ago | 8-K | $10.59 $12.64 | ▲ +19.36% | ▲ +13.07% | $11.11 (+4.91%) |
May 12, 2026 20w ago | 8-K | $10.72 $12.44 | ▲ +16.04% | ▲ +11.61% | $11.11 (+3.64%) |
May 11, 2026 20w ago | 8-K | $10.76 $11.04 | ▼ −2.60% | ▲ +1.79% | $11.11 (−3.25%) |
May 5, 2026 21w ago | DEFA14A | $11.50 $10.56 | ▼ −8.17% | ▼ −10.91% | $11.11 (−3.39%) |
Apr 30, 2026 22w ago | DEFA14A | $11.55 $10.99 | ▼ −4.85% | ▼ −7.92% | $11.11 (−3.81%) |
US Market Status
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