The newly issued shares carry an initial dividend rate of 5.00% in cash, or 7.00% if the company chooses to pay in kind. This rate is set to escalate by 1.00% annually starting five and a half years after issuance. The preferred stock is positioned as senior to the company's common equity but junior to existing debt obligations.
FS KKR Capital Corp. Secures $150 Million in Preferred Stock Deal
FS KKR Capital Corp. has finalized a $150 million issuance of cumulative convertible perpetual preferred stock to a subsidiary of KKR Alternative Assets. The business development company plans to deploy the capital toward corporate initiatives, including debt repayment and its ongoing common stock repurchase program.
Investors holding these shares gain voting rights on an as-converted basis and are entitled to elect two members to the company’s board of directors. The initial conversion price is fixed at $18.83 per share, matching the company's net asset value as of March 31, 2026. After a six-month waiting period, holders may opt to convert their stake into common stock, while the company retains the right to redeem the shares for cash or, under specific market conditions after three years, common stock.
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