FS KKR Capital Issues Convertible Preferred Stock in Placement

FS KKR Capital ( (FSK) ) just unveiled an announcement.

On May 10, 2026, FS KKR Capital Corp. entered into a purchase agreement with KKR Alternative Assets L.P. under which the purchaser agreed to buy $150 million of newly issued cumulative convertible perpetual preferred stock. The preferred shares, with a par value of $0.001, were offered in a private placement relying on an exemption from registration under the Securities Act of 1933.

The closing of the transaction is contingent on the completion of KKR Alternative Assets’ third-party tender offer for up to $150 million of FS KKR Capital’s common stock, as well as customary closing conditions and antitrust clearance under the Hart-Scott-Rodino Act. The deal structure is expected to strengthen the company’s capital base by adding a sizable layer of preferred equity while aligning it with a key alternative asset manager stakeholder.

The most recent analyst rating on (FSK) stock is a Hold with a $11.00 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.

The score is held back primarily by volatile financials with leverage and data consistency concerns, plus a cautious earnings-call backdrop marked by a sharp NAV decline and rising nonaccruals. High dividend yield and meaningful shareholder-support actions (tender, preferred injection, buyback authorization, fee waiver) provide partial support, while technical indicators remain broadly neutral to weak longer term.

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

More about FS KKR Capital

FS KKR Capital Corp. operates as a business development company focused on providing customized credit solutions to middle-market companies. The firm primarily invests in senior secured loans, subordinated debt, and, to a lesser extent, equity securities, serving as a source of financing for private U.S. businesses seeking growth or recapitalization capital.

Average Trading Volume: 4,383,678

Technical Sentiment Signal: Sell

Current Market Cap: $3.04B

See more insights into FSK stock on TipRanks’ Stock Analysis page.