FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit Advisors (US) LLC (FS/KKR), announced a definitive agreement to merge FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and Corporate Capital Trust II (CCT II) to create the second-largest business development company, with over $9 billion in assets on a pro forma basis as of March 31, 2019.

The merger is part of a proposed three-step plan toward a liquidity event for all shareholders, including a recapitalization of the combined company through the issuance of approximately $1 billion in preferred stock to all non-traded shareholders followed by a listing of the combined company’s common shares on the New York Stock Exchange. The staged liquidity plan is designed to achieve the following:

  • Ensure shareholders receive equal value in shares of the combined company
  • Align the distribution of the combined company’s common stock with public BDC peers
  • Diversify the combined portfolio
  • Reduce operating expenses
  • Minimize execution risks of listing

Next steps

Learn the details by referencing the resources below
Be on the lookout for proxy materials in August 2019
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