FSK Prices Public Offering Of $400M 7.875% Unsecured Notes Due 2029
Portfolio Pulse from Benzinga Newsdesk
FSK has priced a public offering of $400 million 7.875% unsecured notes due 2029. The notes are redeemable at FSK's option with a make-whole premium, and at par one month before maturity. The offering is set to close on November 21, 2023, pending customary closing conditions.
November 14, 2023 | 6:26 am
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NEUTRAL IMPACT
FSK's public offering of $400M in unsecured notes may impact its stock as it increases debt but provides capital for growth or refinancing.
The issuance of new debt by FSK could have a neutral to slightly negative short-term impact on its stock price. While the capital raised can be used for growth or refinancing, increasing the company's debt load may concern investors. However, the relatively high interest rate of 7.875% indicates a strong demand for yield, which could be seen as a positive sign by the market.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100