FS KKR Capital Corp. II

(closed)

Investment objectives

Generate current income and, to a lesser extent, long-term capital appreciation

Overview

FS KKR Capital Corp. II is a business development company (BDC) designed to provide a high level of current income. The fund primarily invests in floating rate, senior secured loans of private U.S. middle market companies.

Adviser

FS/KKR Advisor, LLC


Pricing

Net asset value 1 $6.17
Annualized distribution rate 2 (based on net asset value) 9.72%
Annualized distribution amount (as of 3/31/2020) $0.60
Distribution reinvestment price (as of 3/31/2020) $6.20


View Pricing Disclosure For Footnotes 12
1As of 3/31/20.
2The annualized distribution rate shown is expressed as a percentage equal to the projected annualized distribution amount per share (which is calculated by annualizing the regular monthly cash distribution per share as of the date indicated, without compounding), divided by FSK II’s net asset value (NAV) per share as of the date indicated. The annualized distribution rate shown may be rounded. The payment of future distributions of FSK II’s shares of common stock is subject to the discretion of FSK II’s board of directors and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. For the three months ended March 31, 2020, 100% of FSK II’s distributions were funded through net investment income, on a tax basis. No portion of FSK II’s distributions during the 3 months ended March 31, 2020, was funded through expense reimbursements from FSK II’s sponsor. The determination of the tax attributes of FSK II’s distributions is made annually at the end of FSK II’s fiscal year, and a determination made on an interim basis may not be representative of the actual tax attributes of FSK II’s distributions for a full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV.

Portfolio composition1

View Portfolio disclosure For Footnote 1
1As of March 31, 2020. Calculated as percentage of fair value. Fair value is determined by FSK II’s board of directors. Securities may be an obligation of one or more entities affiliated with the named company. Percentages shown are net of unfunded commitment amounts.

Key facts

Inception date 6/18/2012
Closed to new investors March 1, 2014
Distribution frequency 1 Quarterly
Tax reporting Form 1099-DIV
Distribution reinvestment plan Quarterly*
*For more information, please visit www.fsproxy.com.
View key facts disclosure for Footnotes 1
1The payment of future distributions on FSK II's shares of common stock is subject to the discretion of FSK II's board of directors and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions.
View risk factors disclosure

An investment in the common stock of FSK II involves a high degree of risk and may be considered speculative. The following are some of the risks an investment in FSK II’s common stock involves; however, you should carefully consider all of the information found in FSK II’s annual report on Form 10-K and other periodic reports filed with the SEC before deciding to invest in shares of FSK II’s common stock.

  • Because there is no public trading market for shares of FSK II’s common stock and FSK II is not obligated to effectuate a liquidity event by a specified date, if at all, it is unlikely that you will be able to sell your shares. If you are able to sell your shares before FSK II completes a liquidity event, it is likely that you will receive less than you paid for them. FSK II historically repurchased a limited number of shares pursuant to its share repurchase program, which has currently been suspended. FSK II may reinstate, amend, suspend or terminate its share repurchase program at any time.
  • FSK II’s distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to FSK II for investment. Any capital returned to stockholders through distributions will be distributed after payment of fees and expenses.
  • An investment strategy focused primarily on privately held companies presents certain challenges, including the lack of available information about these companies.
  • Investing in middle market companies involves a number of significant risks, any one of which could have a material adverse effect on FSK II’s operating results.
  • A lack of liquidity in certain of FSK II’s investments may adversely affect its business.
  • FSK II is subject to financial market risks, including changes in interest rates, which may have a substantial negative impact on FSK II’s investments.
  • FSK II has borrowed funds to make investments, which increases the volatility of FSK II’s investments and may increase the risks of investing in our securities.
  • FSK II is a long-term investment for persons of adequate financial means who have no need for liquidity in their investment.

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