Summary

On December 18, 2019, FS/KKR Advisor, LLC (FS/KKR), a partnership between FS Investments and KKR Credit Advisors (US) LLC, announced the closing of the mergers of four non-traded business development companies (BDCs): 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).

The combined entity, which has been renamed FS KKR Capital Corp. II (FSK II), is now the second-largest BDC, with more than $9.5 billion in assets.

The mergers are part of a three-step plan toward a liquidity event for all shareholders, including a recapitalization of the combined company through the issuance of preferred stock representing approximately 20% of the combined company’s net asset value to all FSK II shareholders followed by a listing of the company’s common shares on the New York Stock Exchange in the first half of 2020, subject to final board approval and market conditions.

Our most recent guidance was that FSK II was targeting a listing in late April. FS/KKR is working closely with the FSK II’s board to evaluate the liquidity plan, including the timing of a listing. Given the continued spread of COVID-19 (more commonly known as the Coronavirus) globally, we do not currently believe that FSK II will list in late April. We will provide further updates as soon as they are available.

Next steps

1
Recapitalization and listing in 2020
(Subject to market conditions and board approval.)
2
View resources below
3
Contact your financial advisor or call us at 877-628-8575

FSIC II resources

Merger summary

8-K filing

FSIC III resources

Merger summary

8-K filing

FSIC IV resources

Merger summary

8-K filing

CCT II resources

Merger summary

8-K filing

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