KKR Injects $300 Million Into FS KKR Capital After $560 Million Q1 Loss
Updated
Updated · CNBC · May 11
KKR Injects $300 Million Into FS KKR Capital After $560 Million Q1 Loss
16 articles · Updated · CNBC · May 11
KKR is putting $300 million into its troubled private-credit fund, split between $150 million of new convertible preferred shares and a $150 million tender offer for common stock at $11 a share.
The move follows a $560 million first-quarter loss at FS KKR Capital, KKR's largest private-credit fund, after loan defaults climbed and pressured the vehicle.
The $12.3 billion fund's default rate rose to 8.1% in the quarter from 5.5%, while its shares have roughly halved, underscoring the strain on the portfolio.
Losses tied to loans including Medallia, Affordable Care, Cubic and Peraton also triggered bond downgrades, and the fund has renegotiated terms with banks such as JPMorgan Chase.
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