FS KKR Capital, FS KKR Capital To Merge

(RTTNews) - FS/KKR Advisor, LLC a partnership between FS Investments and KKR Credit Advisors (US), said that FS KKR Capital Corp. (FSK) and FS KKR Capital Corp. II (FSKR), have entered into a definitive merger agreement.

As per the deal, 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, as determined shortly before closing.

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 transaction is expected to close during the second or third quarter of 2021.

The combined company had, on a pro forma basis, $14.9 billion in assets as of September 30, 2020. The combined company's investment portfolio consisted of 216 investments across 23 industries, as of September 30, 2020.

At the closing of the merger, FS/KKR has agreed to waive $90 million of incentive fees spread evenly over the first six quarters following the closing. The waiver equates to $15 million per quarter.