KKR FS Income Trust Adds Up To $350 Million SMBC Credit Line, Expandable To $1 Billion

The multicurrency line follows a Bank of Montreal facility the trust closed earlier in October through a separate financing subsidiary.

November 6, 2026

KKR FS Income Trust has opened a new asset-based credit facility with Sumitomo Mitsui Banking Corporation (SMBC). K-FIT Finance SM-1 LLC, a wholly owned special purpose financing subsidiary of the business development company, entered into a loan and servicing agreement on October 29, 2026, with SMBC as administrative agent and collateral agent. The facility provides an initial aggregate principal amount of up to $350 million and can be increased to a maximum of $1 billion.

Through March 25, 2027, the subsidiary may ask SMBC to raise its commitment by up to $150 million, to as much as $500 million. Increases after that date require the consent of the applicable lenders and the administrative agent.

The SMBC deal follows a $250 million revolving facility with Bank of Montreal that the trust closed on October 7 through a separate subsidiary, K-FIT Finance BMO-1 LLC. Both lines allow borrowings in U.S. dollars, Canadian dollars, pounds sterling and euros.

Pricing and Term

Borrowings bear interest at Term SOFR for U.S. dollars, Adjusted Term CORRA for Canadian dollars, EURIBOR for euros and Daily Simple SONIA for sterling, plus a spread of 2.00% during the reinvestment period and 2.50% after it ends. Base rate advances carry a spread of 1.00% during the reinvestment period and 1.50% afterward. An event of default adds 2.00% per year to the applicable spread.

Fees include a non-usage fee. In certain circumstances, a make-whole premium of 1.00% applies if the agreement is terminated, or the unused maximum facility amount is terminated or reduced, before the first anniversary of closing.

The subsidiary can borrow, repay and re-borrow until October 28, 2029. All borrowings mature on the business day before October 29, 2031. Each date can be extended by one year with the consent of the administrative agent and the lenders, and advances are subject to conditions that include maintaining the required borrowing base.

Collateral and Recourse

KKR FS Income Trust acts as transferor and servicer under the agreement, and Computershare Trust Company, N.A. serves as securities intermediary, collateral custodian and collateral administrator.

SM-1's obligations are secured by a first priority security interest in substantially all of its assets, including its loan portfolio and related accounts. If an event of default occurs, the administrative agent may terminate the commitments and declare all obligations immediately due. The obligations are non-recourse to KKR FS Income Trust, whose exposure is limited to the value of its equity in, and investment in, the subsidiary.