PHILADELPHIA—Michael C. Forman, Chief Executive Officer of FS KKR Capital Corp (NYSE:FSK), a $6.2 billion business development company trading near its 52-week high of $22.39, disclosed a recent transaction involving the sale of common stock. According to a Form 4 filing with the Securities and Exchange Commission, Forman sold 10,088 shares of FS KKR Capital. The transaction, conducted on January 1, 2025, was recorded at a price of $0 per share, resulting in a total transaction value of $0.
Following this transaction, Forman holds various indirect ownership interests in FS KKR Capital, which currently offers a substantial 13.2% dividend yield to shareholders. These include 355.438 shares through Franklin Square Holdings, L.P., 130,039.246 shares held in trust, 8,694.023 shares jointly held with his spouse, 7,125.587 shares in a 401(k) plan, and 14,221 shares in an IRA. According to InvestingPro, FSK maintains strong financial health with a current ratio of 2.82.
The filing notes that these shares were part of a vested grant from Franklin Square Holdings, L.P., related to Forman's role as an officer of FS KKR Capital. The report also clarifies that Forman disclaims beneficial ownership of any shares exceeding his pecuniary interest in the holdings mentioned. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, FS KKR Capital Corp has shown considerable activity in its capital management. The company issued an additional $100 million in 6.125% notes due 2030, as part of its broader strategy to manage its capital structure and funding requirements. This follows a previous issuance and sale of $600 million in notes due 2030. On the earnings front, FS KKR reported strong third-quarter results, with net investment income exceeding expectations at $0.77 per share and an adjusted net investment income of $0.74 per share. A fourth-quarter distribution of $0.70 per share was also declared.
Analyst notes reveal a shift in perspective on FS KKR. Wells Fargo (NYSE:WFC) downgraded the company's stock from Overweight to Equal Weight due to concerns about the narrowing discount of the stock relative to the broader Business Development Company industry and potential credit risks associated with FS KKR's loan portfolio. Conversely, RBC Capital Markets maintained a Sector Perform rating on FS KKR, adjusting the price target to $21 from $20 after reviewing the company's third-quarter results.
In the midst of these developments, FS KKR continues to navigate the investment landscape, securing underwriting agreements with a consortium of banks for their note offerings and maintaining a steady dividend yield. These recent developments provide a snapshot of FS KKR's current financial landscape.
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