Financial Data and Key Metrics Changes - In Q1 2021, the company originated $417 million of new investments and experienced an increase in net asset value, outperforming the target 9% annualized dividend yield on net asset value [9][10] - Net investment income was $0.63 per share, exceeding the quarterly dividend of $0.60 per share and public guidance by $0.02 per share [11][12] - The company ended the quarter with approximately $1.9 billion of available liquidity and no meaningful near-term debt maturities [12][53] - The NAV per share increased from $25.02 at the end of Q4 2020 to $26.03 as of March 31, 2021 [49] Business Line Data and Key Metrics Changes - The investment portfolio had a fair value of $6.5 billion, down from $6.8 billion, with 152 portfolio companies compared to 164 previously [32] - The weighted average yield on accruing debt investments decreased to 8.6% from 8.8% due to the repayment of higher-yielding assets [34] - The company experienced net portfolio appreciation of $121 million, with total realized and unrealized appreciation of $249 million during the quarter [40] Market Data and Key Metrics Changes - Unemployment decreased from 6.9% to 6.1% over two quarters, indicating a positive trend in the labor market [16] - The company noted a significant increase in revenues and EBITDA among financial sponsors and portfolio companies over the last three to four quarters [18] Company Strategy and Development Direction - The company plans to continue targeting a 9% minimum unrealized revenue and is preparing for a proposed merger with FSKR, which is expected to enhance strategic opportunities [13][15][56] - The focus remains on being selective in underwriting to ensure downside protection in the current market [22][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued improvement in free cash flow growth across many sectors, despite potential inflationary pressures [19] - The company is focused on maintaining a disciplined approach to origination and risk management, especially in light of potential economic changes [78][80] Other Important Information - The company placed two investments on non-accrual status during the quarter, while one asset was placed back on accrual status [41][42] - Approximately 84% of the yielding investment portfolio is now comprised of investments originated by KKR [39] Q&A Session Summary Question: Discussion on pipeline and competition from syndicated loan channel - Management noted a healthy pipeline and emphasized that they are not directly competing with the syndicated market, focusing instead on the unique offerings of private credit [62][63] Question: Potential for rotation from equity assets - Management confirmed ongoing efforts to rotate out of equity positions, with a focus on maintaining quality and performance [64] Question: High level of pre-payments and JV investments - Management explained that the decision to sell investments into the JV was strategic, allowing for better management of non-earning assets [65] Question: Quality of originations and pipeline expectations - Management expressed confidence in the quality of originations, emphasizing a selective approach to ensure strong credit quality [98] Question: Mix of first lien versus second lien investments - Management confirmed a focus on first lien investments for conservatism, while remaining open to second lien opportunities under specific conditions [105][106]

FS KKR BDC Franchise Financial Information QUARTER ENDED MARCH 31, 2021 Including: FS KKR Capital Corp. (FSK) and FS KKR Capital Corp. II (FSKR) FSK First Quarter Results FSK - Summary of Quarterly Results • Net investment income (NII) for the quarter ended March 31, 2021 was $78 million, or $0.63 per share, as compared to $78 million, or $0.63 per share, for the quarter ended December 31, 2020. • Net asset value (NAV) per share as of March 31, 2021 was $26.03, compared to $25.02 as of December 31, 2020. Fi ...

[PART I—FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This section provides the unaudited consolidated financial statements and management's discussion for FS KKR Capital Corp. as of March 31, 2021 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents FS KKR Capital Corp.'s unaudited consolidated financial statements, including balance sheets, operations, cash flows, and investment schedules, for Q1 2021 and 2020 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2021, total assets decreased to $6.96 billion, while total stockholders' equity increased to $3.22 billion, raising NAV per share to $26.03 Consolidated Balance Sheet Summary (in millions, except per share data) | Metric | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | Total investments, at fair value | $6,457 | $6,780 | | Total assets | $6,964 | $7,237 | | Total liabilities | $3,743 | $4,141 | | Total stockholders' equity | $3,221 | $3,096 | | Net asset value per share | $26.03 | $25.02 | [Unaudited Consolidated Statements of Operations](index=4&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) Net assets increased by $199 million ($1.61 per share) in Q1 2021, a significant turnaround from a $703 million decrease in Q1 2020, driven by unrealized gains Consolidated Statements of Operations Summary (in millions, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Total investment income | $151 | $179 | | Total operating expenses | $73 | $81 | | Net investment income | $78 | $98 | | Total net realized and unrealized gain (loss) | $121 | $(801) | | **Net increase (decrease) in net assets** | **$199** | **$(703)** | | **Earnings per Share (basic and diluted)** | **$1.61** | **$(5.59)** | [Unaudited Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by $125 million to $3.221 billion in Q1 2021, primarily due to a $199 million operational gain, contrasting with an $838 million decrease in Q1 2020 Changes in Net Assets (in millions) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net assets at beginning of period | $3,096 | $3,866 | | Net increase (decrease) from operations | $199 | $(703) | | Distributions to stockholders | $(74) | $(95) | | Repurchases of common stock | $— | $(40) | | **Total increase (decrease) in net assets** | **$125** | **$(838)** | | **Net assets at end of period** | **$3,221** | **$3,028** | [Unaudited Consolidated Statements of Cash Flows](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $435 million, while financing activities used $477 million, resulting in a $42 million net cash decrease for Q1 2021 Consolidated Statements of Cash Flows Summary (in millions) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $435 | $131 | | Net cash provided by (used in) financing activities | $(477) | $(44) | | **Total increase (decrease) in cash** | **$(42)** | **$87** | [Consolidated Schedules of Investments](index=7&type=section&id=Consolidated%20Schedules%20of%20Investments) The investment portfolio's fair value was $6.46 billion, primarily debt-weighted with 51.2% in Senior Secured First Lien loans, and key concentrations in Capital Goods, Software & Services, and SCJV Investment Portfolio Composition by Type (as of March 31, 2021) | Investment Type | Fair Value (in millions) | Percentage of Portfolio | | :--- | :--- | :--- | | Senior Secured Loans—First Lien | $3,303 | 51.2% | | Senior Secured Loans—Second Lien | $713 | 11.0% | | Other Senior Secured Debt | $81 | 1.3% | | Subordinated Debt | $79 | 1.2% | | Asset Based Finance | $948 | 14.7% | | Strategic Credit Opportunities Partners, LLC | $732 | 11.3% | | Equity/Other | $601 | 9.3% | | **Total** | **$6,457** | **100.0%** | - The company's total investments had an amortized cost of **$6.89 billion** and a fair value of **$6.46 billion** as of March 31, 2021[46](index=46&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=35&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail the company's business, accounting policies, and financial activities, including the pending FSKR merger, advisor fees, investment portfolio, SCJV, financing, distributions, and Level 3 asset valuation - The company has entered into a merger agreement with FS KKR Capital Corp II (FSKR), expected to close in the second or third quarter of 2021, with FSK as the surviving company[124](index=124&type=chunk)[287](index=287&type=chunk) - The company's investment in its joint venture, Strategic Credit Opportunities Partners, LLC (SCJV), had a fair value of **$731.9 million** as of March 31, 2021, with SCJV itself holding total investments with a fair value of **$1.66 billion**[40](index=40&type=chunk)[193](index=193&type=chunk) - As of March 31, 2021, the company had total unfunded commitments of **$523.5 million**, consisting of **$252.0 million** in debt investments, **$205.7 million** in equity/other, and **$65.8 million** to its SCJV[181](index=181&type=chunk)[277](index=277&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=73&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reviews Q1 2021 financial performance, noting a $199 million net asset increase driven by portfolio appreciation, $460 million net repayments, 94.9% direct originations, strong liquidity, and the pending FSKR merger Q1 2021 vs Q1 2020 Performance Summary (in millions) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Total Investment Income | $151 | $179 | | Net Investment Income | $78 | $98 | | Net Realized/Unrealized Gain (Loss) | $121 | $(801) | | **Net Increase (Decrease) in Net Assets** | **$199** | **$(703)** | - During Q1 2021, portfolio activity resulted in net repayments of **$460 million**, with **$417 million** in purchases and **$877 million** in sales and repayments[330](index=330&type=chunk) - As of March 31, 2021, **94.9%** of the total portfolio at fair value consisted of direct originations, with a weighted average annual yield on all direct origination debt investments of **7.7%**[339](index=339&type=chunk) - The company's asset coverage ratio was **189%** as of March 31, 2021, exceeding the required minimum of **150%**[252](index=252&type=chunk)[357](index=357&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=88&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate and foreign currency risks, with 60.1% of its portfolio in variable-rate debt; a 300 bps rate hike could increase net interest income by $63 million, and foreign currency exposure is hedged - As of March 31, 2021, **60.1%** of the investment portfolio at fair value consisted of variable-rate debt investments[386](index=386&type=chunk) Interest Rate Sensitivity Analysis (Annual Impact in millions) | Basis Point Change | Increase (Decrease) in Net Interest Income | | :--- | :--- | | Down 19 bps | $1 | | Up 100 bps | $1 | | Up 300 bps | $63 | | Up 500 bps | $126 | - The company manages foreign currency risk through derivative instruments and borrowing in foreign currencies, holding **$64.8 million** in notional foreign currency forward contracts and outstanding borrowings in Euros, Canadian dollars, British pounds, and Australian dollars as of March 31, 2021[393](index=393&type=chunk)[395](index=395&type=chunk) [Controls and Procedures](index=90&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[397](index=397&type=chunk) - No changes occurred during the quarter ended March 31, 2021, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[398](index=398&type=chunk) [PART II—OTHER INFORMATION](index=91&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This section provides other required information, including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=91&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings, nor is it aware of any threatened against it - FS KKR Capital Corp. reports no material legal proceedings as of the filing date[401](index=401&type=chunk) [Risk Factors](index=91&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K are reported - The company states there are no material changes from the risk factors included in its most recent Annual Report on Form 10-K[402](index=402&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=91&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Affiliated Purchaser did not purchase any of the company's common stock during the quarter ended March 31, 2021 - The Affiliated Purchaser, an investment vehicle associated with the Advisor's owners, made no purchases of the company's common stock during the first quarter of 2021[403](index=403&type=chunk) [Defaults upon Senior Securities](index=91&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) This section is not applicable to the company's current reporting requirements [Mine Safety Disclosures](index=91&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's current reporting requirements [Other Information](index=91&type=section&id=Item%205.%20Other%20Information) This section is not applicable to the company's current reporting requirements [Exhibits](index=91&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including key agreements, corporate documents, and certifications

FS KKR Capital Corp. (NYSE:FSK) Q4 2020 Earnings Conference Call March 2, 2021 8:00 AM ET Company Participants Robert Paun - Head, Investor Relations Michael Forman - Chairman & Chief Executive Officer Dan Pietrzak - Chief Investment Officer & Co-President Brian Gerson - Co-President Steven Lilly - Chief Financial Officer Conference Call Participants Casey Alexander - Compass Point Finian O’Shea - Wells Fargo Securities John Hecht - Jefferies Paul Johnson - Keefe, Bruyette & Woods Robert Dodd - Raymond Jame ...

Financial Performance (FSK) - FSK's Net Investment Income (NII) for Q4 2020 was $78 million, or $0.63 per share, the same as Q3 2020[1] - Adjusted NII for Q4 2020 was $89 million, or $0.72 per share, compared to $78 million, or $0.63 per share, in Q3 2020[1] - NAV per share as of December 31, 2020, was $25.02, up from $24.46 as of September 30, 2020[1] - Net realized and unrealized gains on investments were $65 million, or $0.53 per share, for Q4 2020, compared to $132 million, or $1.06 per share, in Q3 2020[1] Financial Performance (FSKR) - FSKR's Net Investment Income (NII) for Q4 2020 was $101 million, or $0.59 per share, compared to $90 million, or $0.52 per share, in Q3 2020[16] - Adjusted NII for Q4 2020 was $104 million, or $0.61 per share, compared to $90 million, or $0.52 per share, in Q3 2020[16] - NAV per share as of December 31, 2020, was $25.10, compared to $24.66 as of September 30, 2020[16] - Net realized and unrealized gains on investments were $60 million, or $0.35 per share, for Q4 2020, similar to $59 million, or $0.35 per share, in Q3 2020[16] Portfolio & Investment Activity (FSK) - New investment fundings in Q4 2020 were approximately $613 million[1] - The portfolio is diversified with 164 portfolio companies across 23 industries, with the top ten largest holdings representing 22% of the portfolio's fair value[1] - As of December 31, 2020, 88% of debt investments are floating rate[4] Portfolio & Investment Activity (FSKR) - New investment fundings in Q4 2020 were approximately $1.299 billion[16] - The portfolio is diversified with 155 portfolio companies across 22 industries, with the top ten largest holdings representing 24% of the portfolio's fair value[16] - As of December 31, 2020, 90% of debt investments are floating rate[22]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00757 FS KKR Capital Corp. (Exact name of registrant as specified in its charter) Maryland 26-1630040 (State of Incorporation ...

FS KKR Capital Corp. (NYSE:FSK) Q3 2020 Earnings Conference Call November 10, 2020 8:00 AM ET Company Participants Robert Paun - Head, Investor Relations Michael Forman - Chairman & Chief Executive Officer Dan Pietrzak - Chief Investment Officer & Co-President Brian Gerson - Co-President Steven Lilly - Chief Financial Officer Conference Call Participants Casey Alexander - Compass Point Rick Shane - JPMorgan Finian O'Shea - Wells Fargo Securities Robert Dodd - Raymond James Bryce Rowe - National Securities R ...

FS KKR BDC Franchise Financial Information QUARTER ENDED SEPTEMBER 30, 2020 Including: FS KKR Capital Corp. (FSK) and FS KKR Capital Corp. II (FSKR) FSK | FS KKR Capital Corp. FSK Third Quarter Results FSK - Summary of Quarterly Results | --- | --- | |---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

FORM 10-Q Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FS KKR Capital Corp. (Exact name of registrant as specified in its charter) 201 Rouse Boulevard Philadelphia, Pennsylvania 19112 (Address of principal executive offices) (Zip Code) Maryland 26-1630040 (State of Incorporation) (I.R.S. Employer Identification Number) Registrant's telephone number, including area code: (215) 495-1150 Indicate by check mark whether the Registrant (1) has filed all reports require ...

FS KKR Capital Corp (NYSE:FSK) Q2 2020 Earnings Conference Call August 11, 2020 8:30 AM ET Company Participants Robert Paun - Head, IR Michael Forman - Chairman and CEO Dan Pietrzak - CIO and Co-President Brian Gerson - Co-President Steven Lilly - CFO Conference Call Participants Casey Alexander - Compass Point Rick Shane - JPMorgan Ryan Carr - Jefferies Ryan Lynch - KBW Finian O'Shea - Wells Fargo Robert Dodd - Raymond James Operator Good morning ladies and gentlemen. Welcome to FS KKR Capital Corp.'s Seco ...