FS KKR Advisor Merges

FS KKR Advisor Merges Two Publicly Traded BDCs in All-Stock Deal

FS KKR Capital Corp. (FSK) and FS KKR Capital Corp. (FSKRThe merger of two publicly traded BDCs has taken place. The newly merged entity is now known as FS KKR Capital Corp. and retain the ticker ‘FSK’ for trading on the New York Stock Exchange.

The exchange rate was calculated based on net asset value per share at the close of business, 14Th In June 2021 the FSK rate was $26.77 and FSKR $25.42. FSKR shares will receive 0.9498 FSK for each FSKR share. In this way, the NAV that the former FSKR holders will have in FSK and FSKR is the same. FSK will not pay cash for fractional shares.

Dan Pietrzak is the chief investment officer of FSK and co-president. He has stated that this merger was justified. “The combination creates a premier BDC lending franchise with approximately $15 billion in assets. With our portfolio diversification, enhanced access to capital markets, and over $3 billion of available investment capacity, we believe we are well-positioned as a leading lender to upper-middle market borrowers.”

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FSKR Merger & Lawsuits

Both companies merging FSK The following are some examples of how to get started: FSKR, were part of FS/KKR Advisor LLC Which, in turn was formed by a partnership between KKR Credit Advisors & FS Investments.

FSK was formed as a result of a merger. FS Investment Corporation (FSIC) and Corporate Capital Trust Inc. (CCTFSK had started trading in December 2018. FSK started trading in the month of December 2018.

Investors have filed several lawsuits against brokers. financial advisors That sold the original FSKR BDCs that were not traded.  Haselkorn & Thibaut, a law firm representing investors, alleges massive losses and set up a toll-free number for investors to call at 1-800-856-3352.

FSKR The company, which was formed by the merger of four BDCs that were not traded on NYSE and listed in June 2020, had been listed since then. The four BDCs were:

  1. FS Investment Corporation II
  2. FS Investment Corporation II
  3. FS Investment Corporation III
  4. Corporate Capital Trust II

FSK’s board has approved a program of share repurchases in conjunction with the closing. The company may repurchase shares in the open markets up to a value of $100,000,000, provided that the price paid is less than the current NAV. FSK will decide the exact timing and price.

FSK’s shares closed Wednesday at $22.62, a gain 0.22%. After-hours, when the announcement was made, FSK shares jumped up to $23.00. This represents a gain of 1.68 %.

FSKR shares closed at $21.56 down 0.51%. The previous close was $21.67.

 

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