FS/KKR Advisor LLC, a partnership between FS Investments and KKR Credit Advisors (US) LLC, has closed its merger of FS Investment Corporation (NYSE: FSIC) and Corporate Capital Trust Inc. (NYSE: CCT) creating the second-largest publicly traded business development company.
With the closing of the merger, FS Investment Corporation has been renamed FS KKR Capital Corp. (FSK) and began trading on the New York Stock Exchange under the ticker symbol “FSK” on December 20, 2018.
“Combining FSIC and CCT represents an important milestone for our franchise in our quest to drive consistent and sustained value for our investors,” said Michael Forman, chief executive officer of FSK. “We believe the business and operational synergies this merger is expected to create – including lower administrative costs, a more diversified investment portfolio and an optimized capital structure – position us well to deliver on that objective.”
CCT’s board of directors previously declared a conditional special cash distribution of at least $0.402 per share, which will be paid on or about December 27, 2018 to stockholders of record as of the close of business on December 18, 2018. Prior to the closing of the merger, CCT determined that the amount of such special cash distribution will be $0.506 per share.
Based on the final merger exchange ratio reported by FSK, CCT shareholders will receive 2.3552 FSK shares for each share of CCT held, subject to payment of cash in lieu of fractional shares.
Additionally, FSK’s board of directors has authorized a share repurchase program. Under the program, FSK may repurchase up to $200 million in the aggregate of its outstanding common stock in the open market at prices below the current net asset value per share. The program will be in effect through December 19, 2019.
FS KKR Capital Corp. (NYSE: FSK) is a publicly traded business development company focused on providing credit solutions to private middle market U.S. companies. FSK seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S. companies.
FS/KKR Advisor serves as the investment adviser to traded and non-traded BDCs with approximately $17 billion in assets under management, including FS KKR Capital Corp., FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV and Corporate Capital Trust II.