FSK: Stockholders Renew Below-NAV Share Authority
FS KKR Capital Corp. shareholders approved renewed authority to sell common shares below net asset value at a reconvened annual meeting on August 20, 2026.
The proposal received 103.8 million votes for, 35.5 million against and 7.0 million abstentions. The authority covers the 12 months following approval and limits cumulative below-NAV sales to 25% of shares outstanding immediately before each sale.
The authorization does not mean FSK has launched an offering. Before any sale, the required majority of directors must determine that it is in the interests of FSK and shareholders. They must also determine that the price closely approximates market value, less commissions or discounts.
Why it matters
The approval gives FSK financing flexibility while its shares trade below NAV. Capital could support investments, repay debt or serve other corporate purposes. However, a completed sale below NAV would immediately dilute existing shareholders’ NAV per share and their proportional claims on earnings, assets and votes.
The central uncertainty is whether FSK will use the authority. Shareholders should watch for a specific offering, its discount, the amount issued and how the proceeds would be deployed.
Sources
Disclosure: This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.