FS KKR Capital Provides Expected Reverse Stock Split Details
FS KKR Capital Corp. FSK expects to implement a reverse stock split, approved by the board of directors on May 26, on or around June 15. For trading purposes, the reverse stock split is likely to become effective on Jun 16.
The reverse stock split will result in a reduction in the company’s share count on a 4:1 basis. Now, each shareholder will receive 1 share for every 4 shares owned.
FS KKR Capital is also planning to file a separate Articles of Amendment to its charter in order to provide that the par value of $0.001 per share will remain unchanged due to the reverse stock split.
Notably, the reverse stock split is not expected to have any direct economic consequence to the company or its shareholders. In fact, it will not result in a change in the authorized number of shares of the company's common stock.
All shareholders will be affected uniformly from the reverse stock split. The move will not alter any shareholder's percentage interest in the company's equity, except to the extent that the reverse stock split would result in some shareholders owning a fractional share.
Consequently, in relation to the reverse split, no shareholder will be issued fractional shares. Shareholders of record who were otherwise entitled to receive fractional shares would instead be paid cash on the basis of the closing price of the company's common stock as reported on the effective date of the amendment to the company's charter affecting the reverse split.
The Depository Trust Company will act as the exchange agent and DST Systems, Inc. will be the transfer agent for the reverse split.
FS KKR Capital is a publicly traded business development company, which focuses on providing customized credit solutions to private middle market companies in the United States.
Notably, as disclosed previously, the company’s board of directors announced a cash distribution of 15 cents per share, to be paid on or about Jul 2, to shareholders of record as of Jun 17.
However, the amount that will be paid on Jul 2 will instead be 60 cents per share (the aggregate amount that would have been paid on four shares prior to the reverse stock split).
Shares of FS KKR Capital have lost 34.4% so far this year compared with the industry’s decline of 25%.
Currently, the company carries a Zacks Rank #3 (Hold).
A few better-ranked stocks from the finance space are mentioned below.
Merchants Bancorp’s MBIN current-year earnings estimates have moved upward by 11.9% over the past 60 days. The stock has appreciated 5.8% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GAIN Capital Holdings’ GCAP current-year earnings estimates have moved up significantly over the past 60 days. Further, the company’s shares have gained 47.8% over the past six months. At present, it carries a Zacks Rank of 2.
West Bancorporation’s WTBA current-year earnings estimates have moved up 13.9% over the past 60 days. The company’s shares have declined 19.8% over the past six months. At present, it sports a Zacks Rank of 1.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GAIN Capital Holdings, Inc. (GCAP) : Free Stock Analysis Report
West Bancorporation (WTBA) : Free Stock Analysis Report
Merchants Bancorp (MBIN) : Free Stock Analysis Report
FS KKR Capital Corp. (FSK) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
