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 $7.36


View Pricing Disclosure For Footnote 1
1As of December 16, 2019.

Performance – returns


STOCKHOLDER RETURNS 1 As of 11/30/2019 YTD 1 YR 3 YRS 5 YRS SINCE
INCEPTION
6/18/2012
CUMULATIVE
TOTAL RETURN
since inception*
CUMULATIVE
TOTAL RETURN
since inception*
(with sales charge) 2
FS KKR Capital Corp. II 3.5% 1.4% 4.3% 4.3% 6.5% 59.0% 43.1%
* Compounded monthly
Numbers may be rounded. Returns shown are historical only and are based on past performance. Past performance is not a guarantee of future results. Returns less than one year are cumulative; all others are annualized.
VIEW RETURNS DISCLOSURE Footnotes 12
1FS KKR Capital Corp. II's (FSK II's) Stockholder Returns (Without Sales Charge) are the total returns an investor received for the highlighted period taking into account all distributions paid during such period, compounded monthly. Except for the YTD, 1-year, 3-year and 5-year periods, the calculation assumes that the investor purchased shares at FSK II's public offering price, excluding selling commissions and dealer manager fees, at the beginning of the applicable period and reinvested all cash distributions pursuant to FSK II's distribution reinvestment plan (DRP). Since FSK II closed its public offering in March 2014 and has since issued new shares only pursuant to its DRP, the calculation of FSK II's Stockholder Returns (Without Sales Charge) for the YTD, 1-year, 3-year and 5-year periods assumes that the investor purchased shares at the beginning of the applicable period at a price based upon FSK II's DRP on such date. Valuation as of the end of each period is FSK II's distribution reinvestment price on such date, which also equals the redemption price pursuant to FSK II's share repurchase program for such dates the share repurchase program was in effect. Stockholder Returns (Without Sales Charge) do not include selling commissions and dealer manager fees, which could total up to 10% of FSK II's public offering price. Had such selling commissions and dealer manager fees been included, performance would be lower. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.

FSK II is closed to new investors. FSK II's total expenses as a percentage of average net assets attributable to common stock was 8.12% for the twelve months ended December 31, 2018.
2Stockholder Return (With Sales Charge) is the total return an investor received since inception taking into account all distributions paid during such period, compounded monthly. The calculation assumes that the investor purchased shares at FSK II’s public offering price, including the maximum selling commissions and dealer manager fees, at inception and reinvested all distributions pursuant to FSK II’s DRP. Valuation as of the end of each period is FSK II’s distribution reinvestment price on such date, which also equals the redemption price pursuant to FSK II’s share repurchase program for such dates the share repurchase program was in effect. Upon liquidation or redemption, market conditions may cause the actual values to be more or less than the values shown.

Portfolio composition1

View Portfolio disclosure For Footnote 1
1As of September 30, 2019. 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. In addition, any such repurchases will be at the distribution reinvestment price on the date of repurchase.
  • 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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