Philadelphia-based FS Investment Corporation and Corporate Capital Trust agreed to a merger expected to close in the fourth quarter of 2018, according to a Monday statement from FS/KKR Advisor, L.L.C., a partnership between FS Investments and KKR Credit Advisors.
The combined company will have over $8 billion in assets invested in 221 portfolio companies across 23 industries as of March 31 and on a pro forma basis, according to the news release. The boards of directors of both FS Investment Corporation (FSIC) and Corporation and Corporate Capital Trust (CCT) approved the transaction, with "unanimous support" of their respective independent directors.
Financial terms weren't disclosed. CCT shareholders will receive a number of FSIC shares with a net asset value equal to that of the CCT shares they hold, as determined shortly before closing, subject to payment of cash in lieu of fractional shares. The combined company will trade under the ticker symbol "FSIC" on the New York Stock Exchange and will remain externally managed by FS/KKR.
The proposed merger is expected to reduce operating expenses, lower financing costs, and improve secondary market liquidity according to the statement.