FS KKR Capital Corp. II — Investor Presentation (July 2020)
19 slides from FS KKR Capital Corp. II's investor presentation, Jul 1, 2020
Slide 1: Thank you for joining
1 Thank you for joining • Please submit your questions using the Q&A box. • Google Chrome is the optimal browser for viewing this webinar. • If you are experiencing difficulties viewing the slides please refresh your browser and ensure that you have enabled Adobe Flash Media Player. • If you are exp
Slide 2: FS KKR Capital Corp. II NYSE: FSKR July 2020
FS KKR Capital Corp. II NYSE: FSKR JULY 2020
Slide 3: Frequently asked questions
3 1 Why list now? 2 How was the initial listing price determined? 3 Why did the shares trade below FSKR’s net asset value? 4 Will there be any secondary market support for FSKR’s stock? 5 What are my options? Frequently asked questions
Slide 4: Why list now?
4 Why list now?
Slide 5: FSKR is the result of a four-way BDC merger
FSKR is the result of a four - way BDC merger 1. As of March 31, 2020. • Four - way BDC merger completed on December 18, 2019 • FSIC II was the surviving entity and was renamed FS KKR Capital Corp. II • Combined entity (FSKR) is listed on the NYSE FSKR 1 FSIC IV CCT II FSIC III FSIC II Total AUM $8.
Slide 6: Listing creates optionality for all stakeholders
6 Listing creates optionality for all stakeholders 1 List on NYSE • Provides full liquidity for shareholders outside of quarterly tenders • Received shareholder approval to increase regulatory leverage to 2:1 (debt - to - equity) • Provides middle market companies with capital to finance operations
Slide 7: Responding to rising investor demand for liquidity
3.4 4.5 6.5 12.2 16.1 16.8 19.1 19.8 22.5 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 7 Total number of shares requested for repurchase (millions) Data shown is for FS KKR Capital Corp. II (formerly known as FSIC II), which was the surviving entity in the NAV - for - NAV
Slide 8: How was the initial trading price determined?
8 How was the initial trading price determined?
Slide 9: Initial public offering (IPO) vs. Direct Listing
9 Initial public offering (IPO) vs. Direct Listing Initial public offering Listing Issuance of newly issued shares Listing of existing shares Price range determined ahead of IPO Price determined by supply and demand for shares Conduct road show with prospective investors
Slide 10: Reverse stock split rationale
10 Rationale The reverse stock split helped align FSKR’s net asset value (NAV ) per share with its peers. – Many public BDCs issued shares through an initial public offering (IPO) based on an initial share price of $25 per share – Most non - traded BDCs issued shares through a continuous offering ba
Slide 11: Determining the initial share price
11 For illustrative purposes only. Determining the initial share price Buyers Sellers $13.75 I nitial trading price
Slide 12: Why did the shares trade below FSKR's net asset value?
12 Why did the shares trade below FSKR’s net asset value?
Slide 13: Illustrative dividend yield (NAV) based on a range of valuations
13 Illustrative dividend yield (NAV) based on a range of valuations Based on net asset value as of March 31, 2020. 1. Implied loss rate refers to the decline in asset value necessary to equate to the assumed price - to - book value. Short - term technical pressure is not reflective of portfolio qual
Slide 14: Will there be any secondary market support for FSKR's stock?
14 Will there be any secondary market support for FSKR’s stock?
Slide 15: Significant secondary market support across FS/KKR platform
15 Significant secondary market support across FS/KKR platform $ 120 M+ C o - investment vehicle $100M Fund share repurchase program $ 350 M Co - investment vehicle
Slide 16: What are my options? Sell Hold Buy
16 What are my options? Sell Hold Buy
Slide 17: Resources
17 Resources FSPROXY.COM FORMS / OPERATIONAL SUPPORT WEBINAR REPLAYS FAQs FSKKRADVISOR.COM
Slide 18: Questions?
Questions?
Slide 19: Securities offered through FS Investment Solutions, LLC
19 Securities offered through FS Investment Solutions, LLC (member FINRA/SIPC). FS Investment Solutions, LLC is an affiliated br oke r - dealer that serves as the wholesaling distributor of non - traded funds sponsored by FS Investments. An investment in any fund sponsored by FS Investments involves
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