KKR FS Income Trust Select Announces Results of Tender Offer

KKR FS Income Trust Select’s tender offer ends with no shares tendered for purchase, leaving the fund’s portfolio unchanged.

October 03, 2024

KKR FS Income Trust Select Completes Tender Offer with No Share Repurchases

KKR FS Income Trust Select recently concluded a tender offer, revealing that no shareholders tendered their shares for purchase. The process, which ended on September 30, 2024, was an opportunity for investors to redeem their Class S common shares in exchange for their net asset value (NAV) as of the tender's expiration date. However, with no shares submitted, the offer resulted in no repurchases, leaving the fund's structure and capital position unchanged.

Details of the Tender Offer

The tender offer initiated by KKR FS Income Trust Select aimed to purchase up to 304,785 shares of its Class S common shares. Shareholders were invited to participate by tendering their shares for sale, with the purchase price pegged to the NAV per share at the end of September 2024. Despite the availability of this option, none of the shareholders submitted their shares for purchase, as confirmed by the results filed with the U.S. Securities and Exchange Commission (SEC).

This tender offer was intended to provide shareholders with a liquidity option within the portfolio, potentially offering an exit route for investors seeking to sell their shares at a price that reflected the underlying asset value. Such offers are typically part of closed-end funds' strategies to manage shareholder redemption needs while maintaining stability in the fund's asset base.

Implications of the Tender Offer Outcome

The fact that no shares were tendered has multiple implications for both the fund and its investors. Firstly, the fund’s NAV remains unchanged by the lack of redemptions, which can be viewed positively for remaining investors, as it indicates stability and continuity in the fund’s investment strategy and portfolio holdings.

For KKR FS Income Trust Select, the absence of share repurchases means that its available cash and capital resources are not impacted by the tender offer, allowing the fund to proceed with its existing investment strategies without the need for adjustments to accommodate significant redemptions.

The outcome also suggests that shareholders may be confident in the current performance and future prospects of the fund. By not tendering their shares, investors have effectively demonstrated a preference to retain their holdings in KKR FS Income Trust Select, potentially signaling satisfaction with the management, strategy, or anticipated returns from the portfolio.