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FS KKR Capital Completes $389 Million Middle-Market Securitization

Story Highlights
  • On December 18, 2025, FS KKR closed a $389.5 million CLO backed mainly by middle market loans.
  • FS KKR retained all equity in the CLO, will manage the portfolio, and waived management and subordinated fees.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
FS KKR Capital Completes $389 Million Middle-Market Securitization

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FS KKR Capital ( (FSK) ) has issued an announcement.

On December 18, 2025, FS KKR Capital’s wholly owned special purpose subsidiary, KKR – FSK CLO 3 LLC, completed a $389.5 million term debt securitization backed by a diversified portfolio of primarily middle market loans and participation interests, with some exposure to broadly syndicated loans and other permitted assets. The transaction, executed via private placement across multiple tranches of senior secured and deferrable floating rate notes and loans maturing in 2038, provided the company with cash proceeds in exchange for transferring an initial portfolio of collateral obligations to the issuer, with any excess fair value treated as a capital contribution. FS KKR Capital retained 100% of the issuer’s membership interests, will serve as portfolio manager for the collateral, and has irrevocably waived any base management fee or subordinated interest under the portfolio management agreement, aligning its economics primarily with the performance of the retained equity in the securitization and reinforcing its position in the middle market credit securitization space.

The most recent analyst rating on (FSK) stock is a Hold with a $17.00 price target. To see the full list of analyst forecasts on FS KKR Capital stock, see the FSK Stock Forecast page.

Spark’s Take on FSK Stock

According to Spark, TipRanks’ AI Analyst, FSK is a Neutral.

FS KKR Capital’s stock score reflects a cautious outlook. The primary concerns are the zero revenue reported, which signals significant operational challenges, and the mixed results from the earnings call. The strong cash flow and improved balance sheet provide some stability, and the attractive valuation offers potential for income-focused investors. However, technical indicators suggest caution as the stock may face downward pressure.

To see Spark’s full report on FSK stock, click here.

More about FS KKR Capital

FS KKR Capital Corp. operates as a specialty finance company focused on providing credit solutions, primarily through investments in middle market loans and related interests. Through its wholly owned special purpose financing subsidiaries, the company structures and manages securitized portfolios of corporate credit assets, with an emphasis on diversified exposure to middle market borrowers and, to a lesser extent, broadly syndicated loans and other permitted non-loan assets.

Average Trading Volume: 2,798,275

Technical Sentiment Signal: Sell

Current Market Cap: $4.11B

For detailed information about FSK stock, go to TipRanks’ Stock Analysis page.

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