KKR FS Income Trust Secures $250 Million Credit Facility

The financing agreement expands the firm's access to flexible capital, with an option to increase to $350 million.

March 11, 2025

Expanded Liquidity for KKR FS Income Trust

KKR FS Income Trust has locked in a $250 million revolving credit facility, expanding its access to flexible capital. The financing, arranged through its subsidiary K-FIT Finance CO-1 LLC, strengthens the firm’s ability to manage liquidity and deploy capital efficiently. The deal, finalized on March 4, 2025, also includes an option to increase the facility to $350 million, subject to lender approval.

Flexible Borrowing Terms

The facility, backed by Capital One, National Association as administrative agent, allows K-FIT CO-1 to borrow in multiple currencies, including:

U.S. dollars

Australian dollars

Canadian dollars

Euros

British pounds

The revolving period runs until March 2028, with full repayment due by March 2030. During this time, K-FIT CO-1 can draw, repay, and re-borrow funds as long as borrowing base requirements are met.

Interest Rates and Fees

Borrowings in U.S. dollars carry an interest rate tied to the three-month term SOFR plus 2.13%, while loans in other currencies follow their respective benchmark rates. The facility also includes a non-usage fee that varies from 0.25% to 0.75%, depending on the amount of unused credit.

Financial Covenants and Security

As part of the agreement, K-FIT CO-1 must maintain an adjusted interest coverage ratio of at least 150% after an initial period. The financing is secured by a first-priority lien on K-FIT CO-1’s loan and debt securities portfolio. However, KKR FS Income Trust itself holds no direct repayment obligation.

Default Provisions

If a default event occurs, Capital One has the authority to terminate lending commitments and demand immediate repayment. While the facility offers financial flexibility, K-FIT CO-1 remains subject to reporting requirements and ongoing performance thresholds to ensure compliance.

Positioning for Growth

With this facility in place, KKR FS Income Trust gains greater financial agility, allowing it to manage its portfolio, respond to market conditions, and position itself for long-term growth.