FS/KKR Advisor LLC, a partnership between FS Investments and KKR Credit Advisors LLC, have agreed to merge four non-traded business development companies under its advisement. The programs include FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and Corporate Capital Trust II (CCT II).
FS/KKR Advisor said that the combined company will become the second largest BDC by assets under management, with more than $9 billion in assets as of March 31, 2019, with 208 portfolio companies across 20 industries.
The common equity of the combined company is currently expected to be listed on the New York Stock Exchange in the fourth quarter of 2019, subject to final board approval and market conditions. The combined company will remain advised by FS/KKR.
The combined company currently intends to issue approximately $1 billion of 5.50 percent perpetual preferred equity pro rata to holders of the combined company’s common equity prior to any public listing of the common equity.