Key facts
- FS KKR plans to sell at least $400 million of junk bonds.
- This is a rare high-yield offering for a publicly traded credit fund.
- FS KKR is jointly managed by Future Standard and KKR & Co.
Business Development Companies (BDCs) like FS KKR typically issue investment-grade debt. Issuing junk-rated bonds is uncommon and suggests a strategy to access capital at potentially higher rates or for specific investment opportunities not covered by their usual funding. This move could signal a shift in funding strategies within the BDC sector.