FS KKR Capital Completes $900 Million 7.500% Unsecured Notes Offering Due 2031

PHILADELPHIA and NEW YORK — FS KKR Capital Corp. (NYSE: FSK), one of the leading publicly traded business development companies (BDCs) in the United States, has announced the successful completion of its previously disclosed public offering of $900 million aggregate principal amount of 7.500% unsecured notes due 2031. The transaction marks a significant milestone in the company’s ongoing capital management strategy and provides additional financial flexibility to support future growth initiatives and balance sheet optimization.

Major Debt Offering Successfully Closed

According to the company, the newly issued unsecured notes carry a fixed annual interest rate of 7.500% and are scheduled to mature in 2031. The successful completion of the offering follows the pricing announcement made earlier, demonstrating strong investor interest in FS KKR Capital's credit profile and long-term business outlook.

The $900 million issuance represents one of the company's largest recent debt offerings and reflects continued access to capital markets despite a dynamic interest rate environment. The transaction provides FS KKR Capital with additional resources to pursue strategic corporate objectives while maintaining liquidity and financial flexibility.

Purpose of the Offering

FS KKR Capital stated that the net proceeds from the issuance are expected to be used for general corporate purposes. These purposes may include the repayment of outstanding indebtedness under existing credit facilities, refinancing certain notes, and supporting broader operational and investment activities.

By refinancing portions of its existing debt and extending maturities, the company aims to optimize its capital structure and improve financial flexibility over the long term. Such actions are common among business development companies seeking to manage leverage efficiently while maintaining the capacity to support portfolio investments.

Strong Syndicate of Financial Institutions Supports Transaction

The offering attracted support from a broad group of leading global financial institutions. Several major investment banks served as joint book-running managers, helping to coordinate the issuance and distribution of the notes to institutional investors.

Joint Book-Running Managers included:

• BofA Securities, Inc.
• BMO Capital Markets Corp.
• J.P. Morgan Securities LLC
• KKR Capital Markets LLC
• RBC Capital Markets, LLC
• SMBC Nikko Securities America, Inc.

In addition, numerous global banking institutions participated as joint lead managers and co-managers, highlighting the strong institutional support behind the transaction. The extensive underwriting group demonstrates confidence in FS KKR Capital’s financial position and long-term strategy.

Details of the Notes

The newly issued notes are unsecured obligations of FS KKR Capital, meaning they are not backed by specific collateral assets. Investors purchasing the notes rely primarily on the company's overall creditworthiness and financial strength.

Key characteristics of the offering include:

• Total Principal Amount: $900 million
• Coupon Rate: 7.500%
• Maturity Date: 2031
• Security Type: Unsecured Notes
• Issuer: FS KKR Capital Corp.

The fixed-rate structure provides predictable financing costs for the company while offering investors a defined income stream over the life of the notes.

Strategic Importance for FS KKR Capital

The completion of this financing transaction reinforces FS KKR Capital’s position as a significant participant within the business development company sector. Access to long-term capital remains critical for BDCs because it enables them to continue providing financing solutions to middle-market companies while managing their own funding requirements effectively.

With the successful completion of the offering, FS KKR Capital can continue pursuing investment opportunities across a diversified portfolio of private U.S. companies. The company primarily focuses on senior secured debt investments, subordinated loans, and selected asset-based financing opportunities.

About FS KKR Capital Corp.

FS KKR Capital Corp. is a publicly traded business development company focused on delivering customized credit solutions to private middle-market businesses across the United States. The company seeks to generate attractive risk-adjusted returns through investments primarily in senior secured loans while maintaining a diversified portfolio approach.

FSK is advised by FS/KKR Advisor, LLC, a strategic partnership between FS Investments and KKR Credit. Through this relationship, the company benefits from the investment expertise, market access, and resources of two highly regarded alternative asset management organizations.

Market Implications

The completion of this substantial debt issuance highlights continued investor demand for corporate fixed-income securities issued by established financial institutions. Despite evolving market conditions, the successful placement of $900 million in unsecured notes demonstrates confidence in FS KKR Capital’s operating model, asset quality, and long-term prospects.

Industry analysts note that securing fixed-rate financing can provide valuable protection against future interest rate volatility. By locking in funding through 2031, FS KKR Capital may benefit from greater certainty regarding future borrowing costs while maintaining flexibility for portfolio management and strategic growth initiatives.

Forward-Looking Perspective

Looking ahead, the proceeds from the offering are expected to support FS KKR Capital's ongoing efforts to strengthen its balance sheet and maintain access to diversified funding sources. The company continues to focus on delivering credit solutions to middle-market businesses while creating value for shareholders through disciplined investment management and prudent capital allocation.

The successful completion of the $900 million unsecured notes offering represents another step in FS KKR Capital’s long-term financial strategy and underscores the company’s commitment to maintaining a strong and flexible capital structure in support of future growth opportunities.

Disclaimer: The offering announcement does not constitute an offer to sell or a solicitation of an offer to buy securities in any jurisdiction where such actions would be unlawful under applicable securities laws.

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