FSK intends to use the net proceeds of this offering for general corporate purposes, including potentially repaying outstanding indebtedness under credit facilities and certain notes. This announcement does not constitute an offer to sell or a solicitation of an offer to buy any of the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful. About FS KKR Capital Corp. FSK is a leading publicly traded business devel ...

PHILADELPHIA and NEW YORK, May 31, 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 6.875% unsecured notes due 2029 (the "Notes"). The Notes will mature on August 15, 2029 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 o ...

Devenorr/iStock via Getty Images Introduction Receiving dividends is fun - and often necessary to retire (early). However, when it comes to chasing yield, I'm extremely careful, as I believe the higher the yield, the higher the risk there's something fundamentally wrong with the underlying investment. That's the so-called "sucker yield." Companies that fall under the "sucker-yield" definition typically have unpredictable and unreliable earnings histories with unsafe dividend payouts. - Forbes After all, a v ...

Quarter Ended March 31, 2024 | --- | --- | |---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | • Net investment ...

FS KKR Capital (FSK) reported $434 million in revenue for the quarter ended March 2024, representing a year- over-year decline of 4.8%. EPS of $0.73 for the same period compares to $0.78 a year ago. The reported revenue represents a surprise of +1.06% over the Zacks Consensus Estimate of $429.46 million. With the consensus EPS estimate being $0.71, the EPS surprise was +2.82%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

FS KKR Capital (FSK) came out with quarterly earnings of $0.73 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 2.82%. A quarter ago, it was expected that this business development company would post earnings of $0.76 per share when it actually produced earnings of $0.75, delivering a surprise of -1.32%.Over the last four quar ...

Financial Performance - For the three months ended March 31, 2024, total purchases amounted to $1,444 million, while sales and repayments totaled $1,855 million, resulting in a net portfolio activity of $(411) million[292]. - The company reported a net investment activity of $(753) million for the year ended December 31, 2023[292]. - Total investment income for the three months ended March 31, 2024, was $434 million, a decrease from $456 million in the same period of 2023, primarily due to lower interest and PIK income[304]. - Net investment income for Q1 2024 was $212 million ($0.76 per share), compared to $229 million ($0.81 per share) in Q1 2023, reflecting lower overall investment income[311]. - The company reported a net realized loss of $246 million for Q1 2024, compared to a loss of $54 million in Q1 2023, driven by sales and repayments of investments[312]. - The net change in unrealized appreciation for Q1 2024 was $207 million, significantly higher than $24 million in Q1 2023, indicating improved asset valuations[314]. Investment Portfolio - The company’s investment portfolio primarily consists of senior secured loans and second lien secured loans of private middle market U.S. companies[281]. - As of March 31, 2024, the total fair value of the investment portfolio is $14,221 million, down from $14,649 million as of December 31, 2023, representing a decrease of 2.9%[293]. - The number of portfolio companies increased to 197 as of March 31, 2024, from 196 as of December 31, 2023[296]. - The percentage of investments on non-accrual based on fair value decreased to 2.9% as of March 31, 2024, from 4.5% as of December 31, 2023[296]. - The largest investment in a single portfolio company as of March 31, 2024, was $126 million, compared to $134.2 million as of December 31, 2023[299]. - The fair value of investments in the Capital Goods sector increased to $1,985 million, representing 14.0% of the total portfolio as of March 31, 2024, compared to 13.5% as of December 31, 2023[301]. - The fair value of investments in the Software & Services sector was $2,351 million, accounting for 16.5% of the total portfolio as of March 31, 2024, down from 16.9% as of December 31, 2023[301]. - As of March 31, 2024, the portfolio's fair value totaled $14.221 billion, with 71% rated as performing investments (Rating 1) and 23% as performing investments requiring closer monitoring (Rating 2)[303]. Revenue Sources - The company generated revenues primarily from interest income on debt investments, along with non-recurring fees such as commitment, closing, and performance-based fees[286]. - Interest income accounted for 72.6% of total investment income in Q1 2024, while dividend income decreased to 15.4% from 18.0% in Q1 2023[304]. Operating Expenses - Operating expenses for Q1 2024 were $222 million, down from $227 million in Q1 2023, mainly due to reduced management and incentive fees[308]. - The management and incentive fees paid to the Adviser are a significant component of the company's operating expenses[287]. Debt and Financing - The total debt investments in the Credit Opportunities Partners JV, LLC amounted to $3,149.8 million as of March 31, 2024, slightly up from $3,131.6 million as of December 31, 2023[299]. - The unfunded commitments for the Credit Opportunities Partners JV, LLC decreased to $4.5 million as of March 31, 2024, from $24.7 million as of December 31, 2023[299]. - The aggregate amount of senior securities issued by the company was $8.0 billion, with an asset coverage ratio of 185% as of March 31, 2024[317]. - The company maintains unfunded commitments totaling $1.1427 billion for debt investments and $579.3 million for equity/other commitments, ensuring liquidity for future investments[316]. - As of March 31, 2024, the total outstanding financing arrangements amount to $7.968 billion, with $3.588 billion available for borrowing[319]. - The company has a total of $1.164 billion under the Senior Secured Revolving Credit Facility, with a maturity date of October 31, 2028[319]. Cash and Distributions - As of March 31, 2024, the company had $242 million in cash and $3.588 billion in available borrowings under financing arrangements[316]. - The company declared a cash distribution of $0.75 per share for the three months ended March 31, 2024, totaling $210 million, compared to $0.70 per share totaling $196 million for the same period in 2023[331]. - The company intends to make distributions sufficient to qualify for RIC tax treatment, requiring at least 90% of investment company taxable income to be distributed[327]. Interest Rate and Currency Exposure - The company expects that a 250 basis point increase in interest rates would result in an increase of $244 million in interest income and $71 million in interest expense, leading to a net interest income increase of $173 million, or 18.4%[352]. - The net contractual amount of foreign currency forward contracts totaled $159.7 million as of March 31, 2024, all related to hedging foreign currency denominated debt investments[359]. - The company had outstanding borrowings denominated in foreign currencies totaling €386 million, CAD4 million, £82 million, and AUD36 million under its Senior Secured Revolving Credit Facility[359]. - The fair value of investments denominated in foreign currencies would decrease by $60.2 million if there were a 10% adverse change in exchange rates as of March 31, 2024[357]. - The company did not engage in interest rate hedging activities during the three months ended March 31, 2024 and 2023[354]. Valuation Methods - The valuation methods for portfolio companies may vary based on industry and company-specific considerations, with enterprise value assessments being a key initial step[340]. - The company utilizes independent third-party pricing services for fair valuation, which involves a multi-step process including feedback and approval from internal valuation committees[338]. - The company’s equity interests in public companies are valued based on the most recent closing public market price, while those without a liquid market are valued at fair value[344]. - The company has no off-balance sheet arrangements, including any risk management of commodity pricing or other hedging practices[348].

[Financial and Operating Highlights](index=1&type=section&id=Financial%20and%20Operating%20Highlights) FSK reported strong Q1 2024 results with $0.73 Adjusted Net Investment Income per share, 10% annualized ROE, and improved leverage - The CEO highlighted an active start to 2024, with **strong earnings**, **increased investment activity**, and **significant progress on restructuring non-accruing investments**, expressing confidence in the company's ability to deliver **attractive distributions**[4](index=4&type=chunk) - Investment activity in Q1 2024 included **$1.44 billion** in purchases and **$1.86 billion** in sales and repayments[6](index=6&type=chunk) - The net debt-to-equity ratio improved, decreasing from **113%** at the end of Q4 2023 to **109%** at the end of Q1 2024[6](index=6&type=chunk) Q1 2024 vs. Q4 2023 Key Financial Metrics (per share) | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Net Investment Income | $0.76 | $0.71 | | Adjusted Net Investment Income | $0.73 | $0.75 | | Net Asset Value | $24.32 | $24.46 | | Total Net Realized/Unrealized Loss | ($0.14) | ($0.39) | | Earnings Per Share | $0.62 | $0.32 | [Declaration of Distribution](index=1&type=section&id=Declaration%20of%20Distribution) The Board declared a total Q2 2024 distribution of $0.75 per share, comprising regular and special components Q2 2024 Distribution Details | Distribution Type | Amount per Share | Record Date | Payment Date | | :--- | :--- | :--- | :--- | | Regular (Base + Supplemental) | $0.70 | June 12, 2024 | July 2, 2024 | | Special | $0.05 | May 15, 2024 | May 29, 2024 | [Portfolio Highlights](index=2&type=section&id=Portfolio%20Highlights) FSK's $14.2 billion portfolio, primarily senior secured loans, saw non-accrual investments decrease to 4.2% with a 12.5% weighted average yield - Investments on non-accrual status decreased significantly, from **5.5%** of the total portfolio at fair value as of Dec 31, 2023, to **4.2%** as of March 31, 2024[9](index=9&type=chunk) - The weighted average annual yield on accruing debt investments was **12.5%** as of March 31, 2024, slightly down from **12.7%** as of December 31, 2023[9](index=9&type=chunk) Portfolio Composition by Asset Class (Fair Value) | Asset Class | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Senior Secured Loans — First Lien | 57.0% | 58.2% | | Senior Secured Loans — Second Lien | 7.1% | 7.5% | | Asset Based Finance | 14.6% | 14.2% | | Credit Opportunities Partners JV, LLC | 9.8% | 9.5% | | Equity/Other | 8.1% | 7.7% | [Leverage and Liquidity](index=2&type=section&id=Leverage%20and%20Liquidity) FSK maintained strong liquidity with a 109% net debt-to-equity ratio, $242 million cash, and $3.6 billion available financing, with 65% unsecured debt - The net debt-to-equity ratio was **109%** as of March 31, 2024, based on **$8.0 billion** in total debt and **$6.8 billion** in stockholders' equity[10](index=10&type=chunk) - Total available liquidity was approximately **$3.84 billion**, comprising **$242 million** in cash and foreign currency and **$3.6 billion** in availability under financing arrangements[10](index=10&type=chunk) - As of March 31, 2024, **65%** of the company's total debt was unsecured, with the remaining **35%** being secured[10](index=10&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The consolidated financial statements show Q1 2024 net investment income of $212 million, a $173 million net asset increase, and $24.32 NAV per share [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2024 operations generated $434 million total investment income, $212 million net investment income, and a $173 million net asset increase Q1 2024 Statement of Operations Highlights (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Investment Income | $434 | $456 | | Total Operating Expenses | $222 | $227 | | Net Investment Income | $212 | $229 | | Total Net Realized and Unrealized Loss | ($39) | ($30) | | Net Increase in Net Assets from Operations | $173 | $199 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, FSK reported $15.15 billion in total assets, $8.34 billion in liabilities, $6.81 billion in equity, and $24.32 NAV per share Balance Sheet Highlights (in millions) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Investments, at fair value | $14,221 | $14,649 | | Total Assets | $15,152 | $15,469 | | Total Liabilities | $8,340 | $8,620 | | Total Stockholders' Equity | $6,812 | $6,849 | | Net Asset Value per Share | $24.32 | $24.46 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) FSK uses non-GAAP measures like Adjusted Net Investment Income to clarify operational performance, reporting $0.73 per share for Q1 2024 - FSK uses non-GAAP measures internally and believes they are useful for investors to evaluate ongoing results and trends by excluding items such as merger accounting impacts and certain non-recurring expenses[31](index=31&type=chunk)[34](index=34&type=chunk) Reconciliation of GAAP to Non-GAAP Measures (per share) | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | **GAAP Net Investment Income** | **$0.76** | **$0.71** | | Adjustments | ($0.03) | $0.04 | | **Adjusted Net Investment Income** | **$0.73** | **$0.75** | | **GAAP Net Realized/Unrealized Loss** | **($0.14)** | **($0.39)** | | Adjustments | $0.03 | $0.03 | | **Adjusted Net Realized/Unrealized Loss** | **($0.11)** | **($0.36)** | [Company and Event Information](index=3&type=section&id=Company%20and%20Event%20Information) FSK is a BDC advised by FS/KKR Advisor, LLC, providing credit to U.S. middle-market companies, with Q1 2024 results discussed on a May 9 conference call - FSK is a BDC that primarily invests in senior secured debt of private middle-market U.S. companies and is advised by FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit[14](index=14&type=chunk)[15](index=15&type=chunk) - A conference call to discuss Q1 2024 results was held on May 9, 2024. A webcast replay and investor presentation are available on the company's investor relations website[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk)

Analysts on Wall Street project that FS KKR Capital (FSK) will announce quarterly earnings of $0.71 per share in its forthcoming report, representing a decline of 9% year over year. Revenues are projected to reach $429.46 million, declining 5.8% from the same quarter last year. Over the last 30 days, there has been an upward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts ...

PHILADELPHIA and NEW YORK,  April 16, 2024 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK) announced today plans to release its first quarter 2024 results after the close of trading on the New York Stock Exchange on Wednesday, May 8, 2024. FSK will host a conference call at 9:00 a.m. (Eastern Time) on Thursday, May 9, 2024, to discuss its first quarter 2024 results. All interested parties are welcome to participate and can access the live conference call by registering using the following URL: https://regi ...