KKR FS Income Trust Announces Results of Tender Offer for Common Shares

With no shareholders tendering their shares, the trust concludes its buyback without any share purchase.

October 02, 2024

KKR FS Income Trust Completes Share Repurchase Program Without Tendered Shares:

KKR FS Income Trust has reported the final results of its recent tender offer to repurchase up to 662,765 of its outstanding Class I common shares. The offer, which expired on September 30, 2024, at 11:59 p.m. Eastern Time, concluded without any shares being tendered by shareholders. Consequently, no shares were purchased in the offer.

The tender offer was initiated by KKR FS Income Trust on September 3, 2024, aiming to acquire shares at their net asset value (NAV) as of the end of September. The effort was designed to provide liquidity to shareholders, offering them an opportunity to sell their holdings back to the trust. The purchase price per share would have been determined based on the trust's NAV on the specified date.

KKR FS Income Trust, a company focused on income generation through various financial investments, pursued this tender offer as part of its strategic operations. The trust regularly seeks opportunities to balance its capital structure and provide potential liquidity for its shareholders. Although the offer had specific terms and conditions, no shareholders elected to participate in this round, and therefore, no repurchases were made.

The decision not to tender shares may reflect a general confidence among shareholders in the trust’s performance and future prospects. Shareholders may have anticipated potential growth in share value or preferred to retain their investment due to favorable market conditions and trust performance.

The trust's offer was conducted under the regulations of Rule 13e-4, which governs issuer tender offers. Shareholders were given the option to tender their shares voluntarily, and the offer was carried out with the support of legal counsel and compliance with SEC rules. The company's process included the dissemination of an Offer to Purchase and accompanying documents to shareholders, allowing them to make an informed decision regarding the tender offer.

The expiration of the tender offer without any shares being tendered marks a significant moment for KKR FS Income Trust. It suggests that shareholders are holding onto their investments in the company, possibly indicating their confidence in the company's income-generating strategy and the potential for future NAV growth.

Implications for Shareholders and the Trust

The absence of tendered shares means that the trust will retain its current capital structure and that the offer will not impact its financial statements. For shareholders, the decision not to tender shares might align with their investment strategies and views on the trust’s potential to deliver value in the future.

KKR FS Income Trust's tender offer was part of its ongoing strategy to provide potential liquidity while managing its portfolio of investments effectively. The trust continues to focus on generating income through diversified investment strategies, and the conclusion of this tender offer without share repurchase maintains its current capital dynamics.

Shareholders and potential investors will now be watching for the trust's next moves, whether that involves further tender offers, strategic investments, or other operational developments. The decision not to participate in this tender offer suggests a degree of confidence in the ongoing strategy and performance of KKR FS Income Trust.