FS KKR Capital

FS KKR Capital reported a 2.8% NAV decline driven by valuation marks on specific portfolio names and said it reduced net debt-to-equity to 122% (within its 1.0–1.25x target) via disciplined originations and $1.3 billion of net sales and repayments. Management sold $500 million of investments to third parties, received liquidity support from KKR's $150 million tender and a $150 million convertible preferred investment, and noted non-accruals fell to 3.8%. The firm expects net investment income of 8–9% of NAV for the rest of 2026, will complete a remaining $300 million buyback through 2026–27, and is shifting portfolio mix toward first-lien senior secured debt while citing geopolitical risks and slower M&A activity as potential headwinds. » More on finance.yahoo.com

FS KKR Capital has completed a private placement of cumulative, convertible and perpetual preferred shares worth $150 million to KKR Alternative Assets. The securities pay a 5.00% cash dividend or alternatively 7.00% payment-in-kind; the rate increases by 1 percentage point annually after 5.5 years. Proceeds are to be used for general corporate purposes, such as financing share buybacks or debt repayment. The initial conversion price is $18.83, conversion is possible after six months; the preferred shareholders receive voting rights on » More on de.investing.com

FS KKR Capital has placed an unsecured, guaranteed bond of $900 million maturing on Aug. 1, 2031, with a 7.5% coupon. Closing of the transaction is expected on June 8, 2026, subject to customary conditions; FSK may redeem the notes early at par plus a make‑whole premium, and there is a call option at par three months before final maturity. Net proceeds are intended for general corporate purposes, including possible repayment of existing indebtedness; FSK is a BDC that invests in credit solutions for private US middle‑market companies. » More on de.investing.com

A JPMorgan Chase-led bank group reduced FS KKR Capital's credit facility by about $648 million to $4.05 billion and raised borrowing costs while lowering the minimum equity covenant to $3.75 billion. FS KKR reported roughly $560 million in first-quarter losses and non-accrual loans rose to 8.1%. KKR will inject $150 million of equity and spend $150 million to buy shares from exiting investors, and the board authorized a separate $300 million repurchase plan as KKR waives half its incentive fees for four quarters. » More on cnbc.com

FS KKR Capital reported fourth-quarter net investment income of $0.52, missing estimates of $0.54, and announced a 31% dividend reduction. Shares have fallen about 29% year-to-date and 42% over the past year, with a 15% drop after the earnings release. Analysts at Truist and B. Riley cut price targets to $11 and kept neutral/hold ratings. Jim Cramer highlighted the firm's net asset value falling from $20.89 on February 25 to $10.11, calling it a market-driven move. » More on finance.yahoo.com