JPMorgan-Led Lenders Pull Back on FS KKR Capital Amid Rescue Plan
A JPMorgan-led syndicate cut FS KKR Capital’s revolver by about $648 million (roughly 14%) and raised borrowing costs, prompting FS KKR and KKR to commit a $300 million support package—$150 million in new equity and $150 million to buy back shares—after the fund posted roughly $560 million in Q1 losses and nonaccrual loans rose to 8.1%. Moody’s had downgraded the fund to junk in March. Management signaled a tighter, de‑levered strategy with less new lending, while pursuing a $300 million share repurchase and fee waivers as part of the stabilization plan.
