KKR Unit Purchases $150M FS KKR Capital Convertible Preferred Stock
KKR•KKR•KKR•KKR•FS KKR Capital Corp issued $150 million of cumulative convertible perpetual preferred stock to a KKR unit, with a 5% cash or 7% PIK dividend and $18.83 initial conversion price. Proceeds will fund FSK’s share repurchase and debt paydown; holders get two board seats and voting rights.
FS KKR Capital Corp closed a $150 million issuance of cumulative convertible perpetual preferred stock to KKR Alternative Assets L.P., offering a 5.00% per annum cash dividend or 7.00% per annum PIK and an initial $18.83 conversion price.
FSK will funnel proceeds into its common share repurchase program and debt repayment to strengthen its balance sheet.
Holders have on-conversion voting rights and can elect two board members; the dividend rate increases by 1.00% annually after 5.5 years, with conversion options starting after six months and redemption rights upon certain conditions.
