FS/KKR Advisor LLC, a partnership between FS Investments and KKR Credit Advisors LLC, is closing the mergers of four non-traded business development companies: FS Investment Corporation II, FS Investment Corporation III, FS Investment Corporation IV and Corporate Capital Trust II. The combined entity, which is named "FS KKR Capital Corp. II", becomes the second largest BDC with over $9.5 billion in assets and, as of September 30, 2019, 210 portfolio companies across 21 industries.
"As we explained in June when we announced our intention to merge these BDCs, we believe the scale, diversification, operating efficiencies and capital structure flexibility of the combined entity will drive shareholder value," said Michael Forman, Chairman and CEO of FSK II. "The mergers also represent a major milestone in our plan to list FSK II in 2020."
The mergers are also expected to reduce annual operating expenses through the elimination of duplicative legal, administrative, printing and other expenses.
The company intends to list its common stock on the New York Stock Exchange during 2020, subject to market conditions and board approval.