US Top News and Analysis | JPMorgan Chase-led bank group reins in credit line to troubled KKR private credit fund as losses mount
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JPMorgan Chase‑led lenders slashed the credit facility for FS KKR Capital Corp. (ticker FSK) by about $648 million—roughly 14%—and raised borrowing costs just days before the fund disclosed $560 million in first‑quarter losses and a 10% drop in net asset value. To stabilize the distressed BDC, co‑manager KKR is injecting $150 million in equity and purchasing $150 million of shares from exiting investors, while also waiving half its incentive fees for four quarters and authorizing a $300 million share‑repurchase program. The fund’s non‑accrual loans rose to 8.1% of its portfolio, with defaults increasing at software and dental‑services borrowers, prompting FSK to curb new investments, focus on existing portfolio companies, and aim for a smaller, less leveraged balance sheet.
Read more: https://www.cnbc.com/2026/05/11/kkr-private-credit-fund-fsk-jpmorgan-chase-credit.html
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