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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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 ...

About FS/KKR Advisor, LLC Participants are requested to register a day in advance or at a minimum 15 minutes before the start of the call. Once registered, they will receive the dial-in numbers and their unique PIN number. When they dial in, they will input their PIN and be placed into the call. The conference call will also be webcast, which can be accessed from the Investor Relations section of FSK's website at www.fskkradvisor.com under Events. PHILADELPHIA and NEW YORK, July 15, 2024 /PRNewswire/ -- FS ...

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 ...