Group 1 - FS KKR Capital Corp. has completed an offering of $600 million in 6.125% unsecured notes due 2030 [1] - The net proceeds from this offering will be used for general corporate purposes, including potentially repaying outstanding indebtedness [2] - FS KKR Capital Corp. is a publicly traded business development company focused on providing customized credit solutions to private middle market U.S. companies [3] Group 2 - FS/KKR Advisor, LLC serves as the investment adviser to FS KKR Capital Corp. and other business development companies [4] - FS Investments manages over $82 billion in assets and provides access to a broad suite of alternative asset classes and strategies [5] - KKR is a leading global investment firm that offers alternative asset management and aims to generate attractive investment returns [6]

PHILADELPHIA and NEW YORK, Nov. 13, 2024 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced that it has priced an underwritten public offering of $600 million in aggregate principal amount of its 6.125% unsecured notes due 2030 (the "Notes"). The Notes will mature on January 15, 2030 and may be redeemed in whole or in part at FSK's option at any time at par plus a "make-whole" premium, provided that the Notes may be redeemed at par one month prior to their maturity. The offering is expected to close ...

Financial Data and Key Metrics Changes - FSK generated net investment income of $0.77 per share and adjusted net investment income of $0.74 per share, exceeding guidance of approximately $0.72 and $0.70 per share respectively [10] - The net asset value per share at the end of Q3 2024 was $23.82, down from $23.95 at the end of Q2 2024 [40] - Total investment income increased by $2 million to $441 million, with total interest income rising by $3 million to $356 million [37] Business Line Data and Key Metrics Changes - FSK originated approximately $1.1 billion of new investments during Q3 2024, with 57% focused on add-on financings to existing portfolio companies [12][21] - New investments consisted of approximately 84% in first-lien loans and 16% in asset-based finance investments [21] - The weighted average yield on accruing debt investments decreased by 50 basis points to 11.5% [33] Market Data and Key Metrics Changes - The U.S. economy has experienced a 6.8% growth rate in real terms since the Fed began raising rates in early 2022 [16] - Inflation has declined from 9.1% in June 2022 to approximately 2.4% today, supporting consumer spending [17] - The M&A environment is expected to improve significantly in 2025, with increased middle market deal volumes [18] Company Strategy and Development Direction - FSK is well-positioned to capitalize on expected market conditions, focusing on new investment opportunities and rotating out of legacy portfolio companies [13][14] - The company maintains a high bar on credit quality and a disciplined underwriting process [12] - FSK continues to see compelling opportunities in asset-based finance as banks reposition their portfolios due to regulatory requirements [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for new investment opportunities and the potential for a very active year in 2025 [49] - The company noted that while the M&A pipeline is growing, it has been slower to start than anticipated [76] - Management highlighted that revenue and EBITDA growth in the portfolio has been positive but slower than in previous years [77] Other Important Information - Non-accruals represented 3.8% of the portfolio on a cost basis, down from 4.3% in Q2 2024 [26] - The company has approximately $1.2 billion of unsecured notes maturing in 2025, representing about 10% of total debt commitments [47] - FSK's available liquidity was $4.4 billion at the end of Q3 2024 [45] Q&A Session Summary Question: Impact of lower rates and spread compression on yields - Management indicated that the yield compression of 50 basis points was due to both lower rates and spread compression [51] Question: Dividend coverage and spillover income - Management confirmed that spillover income is sufficient to bridge any gaps in dividend coverage, with nearly three quarters of spillover available [56] Question: PIK income expectations - Management expects PIK income to remain around 15% for the next couple of quarters, with half of the PIK income being regular business [61] Question: M&A pipeline growth expectations - Management believes the M&A pipeline will grow, driven by pressure from LPs to return capital and the availability of dry powder in private equity [74] Question: Credit outlook and revenue trends - Management noted that revenue and EBITDA growth has been slower than in previous years, but overall trends remain positive [77] Question: Repricing activity trends - Management observed that repricing activity has been slower, with spreads settling at certain levels [85] Question: Asset-based finance opportunities - Management highlighted that asset-based finance deals are typically keyed off bank or capital market rates, with targeted returns in the mid-teens [98]

FS KKR Capital (FSK) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.71%. A quarter ago, it was expected that this business development company would post earnings of $0.71 per share when it actually produced earnings of $0.75, delivering a surprise of 5.63%.Over the last four quart ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________________________________ FORM 10-Q _________________________________________________ xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00757 ________________________________________________ ...

PHILADELPHIA and NEW YORK, Oct. 9, 2024 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced today plans to release its third quarter 2024 results after the close of trading on the New York Stock Exchange on Wednesday, November 6, 2024, and that its board of directors has declared a fourth quarter 2024 distribution of $0.70 per share. FSK will host a conference call at 9:00 a.m. (Eastern Time) on Thursday, November 7, 2024, to discuss its third quarter 2024 results. All interested parties are welcome ...

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If income is what you seek, then income is what you should get. BDCs are popular amongst income investors and rightfully so. They are required by law to pay out most of their income in the form of dividends. However, as Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own ...

Financial Data and Key Metrics Changes - The company generated net investment income of $0.77 per share and adjusted net investment income of $0.75 per share, exceeding public guidance of approximately $0.74 and $0.71 per share respectively [6] - Total investment income increased by $5 million to $439 million, with interest income at $353 million and dividend and fee income at $86 million [20] - The net asset value per share decreased to $23.95 from $24.32, impacted by a $0.70 per share distribution and a $0.05 special distribution [21] Business Line Data and Key Metrics Changes - The investment team originated $2.7 billion of investments in the first half of 2024, with $1.3 billion originated in the second quarter [8] - New investments consisted of approximately 81% in first lien loans, 2% in other senior secured debt, 1% in subordinated debt, and 16% in asset-based finance investments [11] - The weighted average yield on occurring debt investments was 12%, a decrease of 10 basis points from the previous quarter [16] Market Data and Key Metrics Changes - The market remains competitive with spread compression experienced by all lenders, and M&A volumes remain below average [9] - The company observed 12% year-over-year EBITDA growth at portfolio companies invested since April 2018 [13] - Non-accruals represented 4.3% of the portfolio on a cost basis and 1.8% on a fair value basis, down from 6.5% and 4.2% respectively in the previous quarter [14] Company Strategy and Development Direction - The company aims to maintain a minimum of $2.90 per share in total distributions for 2024, equating to a 12.1% yield on the net asset value [7] - The focus remains on senior secured investments, with approximately 58% in first lien loans and 66% in senior secured debt as of June 30, 2024 [15] - The company is actively rotating out of cyclical industries into more defensive sectors like software and healthcare [19] Management's Comments on Operating Environment and Future Outlook - Management noted concerns over the health of the U.S. economy but remains optimistic about sustained growth due to high productivity [9] - The expectation of elevated market volatility persists, influenced by domestic political and international geopolitical complexities [9] - The company anticipates an increase in M&A activity in the coming months despite current market conditions [11] Other Important Information - The company ended the quarter with approximately $4.7 billion of available liquidity [7] - A total third quarter distribution of $0.70 per share was declared, consisting of a base distribution of $0.64 and a supplemental distribution of $0.06 [7] - The company issued $600 million of unsecured notes due 2029, strengthening its balance sheet and liquidity position [23] Q&A Session Summary Question: Can you talk about the spillover picture? - Management indicated they are at the middle to upper end of the range for spillover, providing protection for long-term dividend coverage [26] Question: Was there a lower income on the ADF book? - Management clarified that the lower income is not idiosyncratic but rather a timing issue related to structured deals [28] Question: Were you more selective in refinancing this quarter? - Management confirmed that selectivity is based on credit quality and sector performance, adjusting positions as necessary [30] Question: How do you see opportunities in asset-based finance? - Management expressed a positive outlook on the asset-based finance market, highlighting strong deal flow and attractive risk-adjusted returns [34] Question: Any material changes from portfolio companies due to economic turbulence? - Management acknowledged recent economic volatility but noted steady performance in portfolio companies, with some concerns about free cash flow [35] Question: What is the updated outlook on leverage? - Management stated they are comfortable with current leverage levels and have room to add more if needed [40] Question: What drives the timing of asset-based finance dividends? - Management indicated that timing is more related to specific asset sales rather than macroeconomic factors [38] Question: Will supplemental dividends go away if rates decrease? - Management emphasized their focus on maintaining dividends while managing earnings growth and reducing non-income producing assets [55]

FS KKR Capital (FSK) came out with quarterly earnings of $0.75 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 5.63%. A quarter ago, it was expected that this business development company would post earnings of $0.71 per share when it actually produced earnings of $0.73, delivering a surprise of 2.82%. Over the last four qua ...