FS KKR Capital Corp. II Prepares for Public Listing
May 27, 2020 | Luke Schmidt | Blue Vault
FS KKR Capital Corp. II (“FSKR”) has commenced the final steps in preparation for the proposed listing of the Company’s shares of common stock on the New York Stock Exchange. Subject to market conditions, the Company currently anticipates that its shares of common stock will commence trading on the NYSE with the ticker symbol “FSKR” on or around June 17, 2020.
In anticipation of the listing, the Company intends to execute a 4 to 1 reverse stock split of the Company’s shares of common stock. As a result of this reverse stock split, every four shares of the Company’s common stock issued and outstanding will be automatically combined into one share of the Company’s common stock, with the number of outstanding shares to be reduced from approximately 684.8 million to approximately 171.2 million. The Company’s net asset value per share as of March 31, 2020, would have been $24.68 (instead of $6.17 per share) if adjusted with the reverse stock split.
In connection with the listing, FSKR will eliminate any outstanding fractional shares of its common stock. The Company will eliminate all outstanding fractional shares by rounding up the number of fractional shares held by each of the Company’s shareholders to the nearest whole number of shares as of the date prior to the listing.
On April 28, 2020, the Company declared a regular quarterly cash distribution of $0.15 per share, to be paid on or about July 2, 2020, to stockholders of record as of the close of business on June 17, 2020. In preparation for the listing, the Company decided to change the record and payment dates of the distribution, which will now be paid on or about June 8, 2020, to stockholders of record as of the close of business on June 8, 2020.
On May 26, 2020, the board of directors authorized a stock repurchase program where the Company may repurchase up to $100 million in the aggregate of its outstanding common stock in the open market at prices below the current net asset value per share. The timing, manner, price and amount of any share repurchases will be determined by the Company. The program is expected to be in effect for one year from the effective date, unless extended or until the aggregate repurchase amount has been expended.
FSKR is the result of four nontraded BDCs advised by FS/KKR Advisor merging in December of 2019. FS Investment Corporation III, FS Investment Corporation IV, and Corporate Capital Trust II merged with and into FS Investment Corporation II, with FS Investment Corporation II surviving the merger and being renamed FS KKR Capital Corp. II. As of March 31, 2020, FSKR reported total assets of approximately $8.2 billion with total investments of approximately $7.5 billion.
Source: SEC, Blue Vault
