FS KKR Capital Corp. II (FSK II), a non-traded business development company, has retained J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Keefe, Bruyette & Woods Inc. and SunTrust Robinson Humphrey Inc. to serve as lead advisors in connection with FSK II’s proposed listing of its shares of common stock on the New York Stock Exchange.
FSK II was formed from the December 2019 merger of four non-traded BDCs including FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV, and Corporate Capital Trust II.
“We believe that engaging top-tier banks like J.P. Morgan, Morgan Stanley, KBW and SunTrust will help position us well for our upcoming listing on the NYSE,” said Michael Forman, chief executive officer of FSK II. “We expect to benefit from the expertise of these banks as we look forward to completing the listing and further strengthening FSK II’s position as a leading BDC.”
Subject to market conditions, FSK II anticipates that its shares of common stock will begin trading on the NYSE with the ticker symbol “FSKR” around June 17, 2020.
In preparation for the proposed listing, the company previously changed the record and payment dates of its $0.15 per share quarterly distribution from July 2, 2020 to June 8, 2020.
Following the payment of the distribution, the company plans to enact a 4-to-1 reverse stock split where every four shares of common stock issued and outstanding will be automatically combined into one share.
Thus, the number of outstanding shares will be reduced from approximately 684.8 million to approximately 171.2 million, and the net asset value per share as of March 31, 2020 would have been $24.68, instead of $6.17 per share.
The company plans to eliminate any outstanding fractional shares of common stock and will round up the number of fractional shares held by each shareholder to the nearest whole number prior to the listing.
FSK II invests primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies. As of the first quarter of 2020, the company’s portfolio was comprised by 179 portfolio companies with a fair value of approximately $7.5 billion.