Franklin Square’s FS KKR Capital Corp. II (FSKR)
According to its website, FS KKR Capital Corp. II, a publicly traded BDC, is focused on providing customized credit solutions to private middle market U.S. companies. The company reportedly seeks “to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S. companies to achieve the best risk-adjusted returns for our investors.”
FSKR was launched at the end of 2019 as the product of a merger of four non-traded BDCs –FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and Corporate Capital Trust II (CCT II). An investment in the common stock of FSKR involves a high degree of risk and may be considered speculative, according to its prospectus.
The White Law Group has represented numerous investors in claims against their brokerage firms involving Franklin Square offerings such as FSIC II, FSIC III, FSIC IV and CCT II.
On July 2, 2020, the company listed its shares of common stock on the New York Stock Exchange under the ticker symbol “FSKR.” Shares of FSKR closed at $13.00 yesterday.
Update on May 28, 2020 4-to-1 Stock Split
The company has finalized its preparation for listing on the New York Stock Exchange under the ticker symbol “FSKR” beginning approximately June 17, 2020, according to a press announcement.
The company noted that it has changed the record and payment dates of its $0.15 per share quarterly distribution, which will now be paid on June 8, 2020 to stockholders of record as of June 8, 2020. The distribution payment was previously expected on July 2, 2020.
The company plans to enact a 4-to-1 reverse stock split following the payment of the distribution, where every four shares of common stock issued and outstanding will be automatically combined into one share.
This will reportedly reduce the number of outstanding shares from approximately 684.8 million to approximately 171.2 million, and the net asset value per share as of March 31, 2020 would have been $24.68, instead of $6.17 per share. Shares were originally sold for $10.00 per share.
Filing a Complaint against your Brokerage Firm
The White Law Group is currently representing many BDC investors in claims against the brokerage firms that recommended Franklin Square’s FSKR offerings to investors.
These claims result when broker-dealers fail to perform adequate due diligence on the investments before offering them for sale to their clients. Additionally the brokerage firms often fail to determine whether the investments were appropriate in light of their clients’ age, investment, experience, net worth, and tolerance for risk.
If you are concerned about your investments in Franklin Square offerings, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.