Financial Performance - Net investment income (NII) for the quarter ended June 30, 2023, was $229 million, or $0.82 per share, compared to $229 million, or $0.81 per share, for the quarter ended March 31, 2023[37] - Adjusted net investment income (Adjusted NII) for the quarter ended June 30, 2023, was $219 million, or $0.78 per share, as compared to $219 million, or $0.78 per share, for the quarter ended March 31, 2023[37] - Net asset value (NAV) per share as of June 30, 2023, was $24.69, compared to $24.93 as of March 31, 2023[37] - Total investment income increased from $379 million in Q2 2022 to $462 million in Q2 2023[10] - Total net realized and unrealized loss was ($87) million for the three months ended June 30, 2023[1, 10] Investment Portfolio - Total investments at fair value were $14.764 billion as of June 30, 2023[12, 50] - New investment fundings in the second quarter were approximately $363 million and net investment activity was ($482) million[37, 30] - The portfolio consists of 195 companies[37, 50, 51] - 59.5% of the investment portfolio is in First Lien Senior Secured Loans as of June 30, 2023[50, 60] Capital Structure and Liquidity - Net Debt-to-Equity ratio was 1.13x as of June 30, 2023[35, 56] - The company has $3.5 billion of liquidity in undrawn debt, cash, and unsettled trades[38]

Financial Data and Key Metrics Changes - The company generated net investment income of $0.82 per share and adjusted net investment income of $0.78 per share, exceeding public guidance [90] - The net asset value per share as of June 30, 2023, was $24.69, down from $24.89 at the start of the year and $24.93 as of March 31, 2023 [90][112] - The company declared a third quarter regular distribution of $0.70 per share, consisting of a base distribution of $0.64 and a supplemental distribution of $0.06 [90][106] Business Line Data and Key Metrics Changes - The investment portfolio had a fair value of $14.8 billion, down from $15.3 billion as of March 31, 2023, with a decrease attributed to the sale of lower-yielding assets [9][96] - The company originated $363 million in new investments during the second quarter, primarily focused on add-on financings [7][109] - The weighted average yield on accruing debt investments increased to 12.1% as of June 30, 2023, compared to 11.7% as of March 31, 2023 [35] Market Data and Key Metrics Changes - The company reported a median interest coverage of 1.6 times for its portfolio companies at the end of the second quarter [8] - Non-accruals improved to 4.8% on a cost basis and 2.5% on a fair value basis, compared to 5.5% and 2.7% respectively as of March 31, 2023 [112] - The company expects recurring dividend income from its joint venture to approximate $54 million [114] Company Strategy and Development Direction - The company is focused on large high-quality borrowers with strong operating margins and deep equity cushions, with 59.5% of the portfolio in first lien loans [111] - The company is actively seeking opportunities in the asset-based finance sector, particularly due to pressures on regional banks [40][108] - The company aims to continue producing strong financial results and rewarding shareholders with attractive dividends over the long term [91][105] Management's Comments on Operating Environment and Future Outlook - Management noted that the resilience of the labor market and strong consumer spending make it unlikely for the economy to slow down significantly [92] - The company anticipates that the recent increase in new investment activity will not materially impact financial results until the fourth quarter of 2023 or early 2024 [93] - Management expressed optimism about the increasing deal flow and the potential for favorable origination activity [44][108] Other Important Information - The company completed the sale of approximately $500 million of lower-yielding investments to increase investment capacity [109] - The total investment income increased by $6 million quarter-over-quarter to $462 million, driven by increased interest income [142] - The company expects third quarter 2023 GAAP net investment income to approximate $0.79 per share [143] Q&A Session Summary Question: Update on Global Jet asset - Management indicated that the underlying performance of the assets remains strong, with good management and cost control [17] Question: Average price of portfolio sale as a percentage of par value - Management explained that the market is currently wide on a spread level, and the portfolio rotation was a strategic decision [20][21] Question: Inbound opportunities from regional banks - Management confirmed they are actively looking for opportunities to partner with banks on transactions, including buying entire portfolios [41] Question: Current share price and actions to narrow discount to NAV - Management emphasized the importance of consistent performance and guidance to improve market perception [30][31] Question: Driving factors behind portfolio sale - Management clarified that the sale was a strategic move related to a specific asset, Solera, which had temporary cash flow adjustments [125] Question: Restructuring environment and valuation changes - Management acknowledged that the restructuring process can be complex and that some situations have become more challenging [134][135]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00757 _________________________________________________ FS KKR Capital Corp. (Exact name of registrant as spec ...

Financial Data and Key Metrics Changes - For Q1 2023, the company generated net investment income of $0.81 per share and adjusted net investment income of $0.78 per share, exceeding public guidance of $0.77 and $0.74 per share respectively [10] - The net asset value increased to $24.93 per share, up from $24.89 per share in Q4 2022, despite a slight decline in the investment portfolio value [39] - Total investment income rose by $7 million quarter-over-quarter, driven by increased interest income, totaling $369 million [35] Business Line Data and Key Metrics Changes - The investment portfolio had a fair value of $15.3 billion as of March 31, 2023, down from $15.4 billion at the end of 2022, with 189 portfolio companies [22] - New investments in Q1 2023 totaled approximately $270 million, with 87% coming from existing portfolio companies [18] - The weighted average yield on accruing debt investments increased to 11.7% from 11.4% in the previous quarter [24] Market Data and Key Metrics Changes - The company ended Q1 2023 with approximately $3 billion in available liquidity [11] - Interest expense increased to $114 million, reflecting rising base rates on secured debt facilities [37] - Non-accruals totaled 5.5% on a cost basis and 2.7% on a fair value basis, compared to 4.9% and 2.4% respectively at the end of 2022 [30] Company Strategy and Development Direction - The company plans to maintain a minimum quarterly supplemental distribution of $0.06 per share throughout 2023, with total distributions expected to reach a minimum of $2.95 per share [14] - The focus remains on senior secured investments, with 61% of the portfolio in first lien loans as of March 31, 2023 [22] - The company anticipates that increased volatility and economic uncertainty will create compelling investment opportunities [16] Management's Comments on Operating Environment and Future Outlook - Management expects inflation to remain elevated and believes the higher interest rate environment will persist longer than anticipated [15] - The company is seeing a ramp-up in M&A activity inquiries, although overall transaction volumes are expected to remain below average for the next few quarters [16] - The portfolio is performing well, with borrowers demonstrating the ability to pass through price increases, maintaining acceptable EBITDA margins [17] Other Important Information - The company completed a $100 million share repurchase program, repurchasing $32 million of shares in March [11] - Special distributions totaling $0.15 per share will be paid in three equal installments throughout 2023 [13] - The gross and net debt to equity levels were 125% and 118% respectively, unchanged from the previous quarter [43] Q&A Session Summary Question: Can you discuss the recent increase in deal activity? - Management noted an uptick in inquiries from sell-side firms and existing borrowers, indicating potential future M&A activity, although the overall environment remains slow [52] Question: What are the best opportunities in the current market? - The direct lending market is seen as extremely attractive, with credit spreads on new loans approximately 100 basis points higher than a year ago [53] Question: How is the company managing its funding profile? - The company is satisfied with its unsecured debt issued prior to 2022 and plans to remain active in the market while being prudent with its funding strategy [75]

Quarter Ended March 31, 2023 Portfolio Diversification Capital Structure FS KKR Capital Corp. F i n a n c i a l I n f o r m a t i o n Summary of Quarterly Results • Diversified portfolio with 189 portfolio companies spread across 23 industries. • Exposure to the top ten largest portfolio companies by fair value was 19% as of March 31, 2023. • $3.0 billion of liquidity in undrawn debt, cash, and unsettled trades. 1. See the Appendix for a reconciliation between NII and Adjusted NII. 2. Based on the declared ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q _________________________________________________ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-00757 _________________________________________________ FS KKR Capital Corp. (Exact name of registrant as spe ...

Financial Data and Key Metrics Changes - The adjusted net investment income per share for the full year grew over 10% compared to 2021 [13] - The net asset value declined 1.6% quarter-over-quarter, with a December 31, 2022 net asset value per share of $24.89 [14][121] - Total investment income increased by $38 million quarter-over-quarter, driven by increased interest income [65] - The weighted average yield on accruing debt investments was 11.4% as of December 31, 2022, compared to 10.4% as of September 30 [120] Business Line Data and Key Metrics Changes - The investment portfolio had a fair value of $15.4 billion, consisting of 197 portfolio companies, down from $15.8 billion and 195 companies as of September 30, 2022 [23] - During the fourth quarter, the company originated approximately $863 million of new investments, primarily focused on fundings and add-on financings to existing portfolio companies [31] - The largest negative movers in the portfolio were Pure Fishing and KBS, impacted by credit performance-related issues [24] Market Data and Key Metrics Changes - The company expects above-average levels of volatility in the near term due to the Federal Reserve's focus on fighting inflation and ongoing geopolitical issues [18] - The portfolio companies reported a weighted average year-over-year EBITDA growth rate of approximately 15% across companies invested in since April 2018 [30] - The median interest coverage for portfolio companies at the end of the fourth quarter was 1.9 times [32] Company Strategy and Development Direction - The company continues to rotate its investment portfolio into FS KKR originated assets, with a focus on larger companies in the upper end of the middle market [12][58] - The management team believes the increased volatility and economic uncertainty have created compelling investment opportunities for large-scale private debt investors [19] - The company plans to maintain a minimum supplemental distribution of $0.06 per share throughout 2023, equating to a total minimum distribution of $0.70 per share per quarter [15][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future and confidence in generating strong results for shareholders [43] - The macroeconomic environment is expected to remain challenging throughout 2023, with uncertainty over inflation and interest rates [18] - Management noted that while there has been a slight uptick in amendment activity, it is considered normal course of business and not indicative of fundamental weaknesses in the companies [80] Other Important Information - The company repurchased $87 million of shares under its $100 million share repurchase program, with $13 million remaining as of February 24, 2023 [3] - The board declared a first-quarter total distribution of $0.70 per share, raising the quarterly-based dividend to $0.64 per share, a 5% increase from the previous quarter [27] Q&A Session Summary Question: Will higher interest rates impact deal activity? - Management indicated that the M&A market is looking for comfort that inflation is under control, and deal activity may remain slow until there is more clarity on the economic landscape [46][57] Question: How does the company view asset-based finance opportunities? - The company maintains a 10% to 15% allocation to asset-based finance and sees it as an attractive asset class to invest in [50] Question: What is driving the increase in amendment activity? - The increase in amendment activity is primarily driven by financial performance metrics and regular loan covenant adjustments [96][98] Question: Are the performance issues in portfolio companies considered transitory? - Management believes the performance issues are transitory and reflects normal market adjustments rather than fundamental weaknesses [63][82]

Quarter and Year Ended December 31, 2022 FS KKR Capital Corp. Financial Information All information is as of December 31, 2022 unless otherwise noted Fourth Quarter Performance • Net asset value (NAV) per share as of December 31, 2022 was $24.89, compared to $25.30 as of September 30, 2022. Distribution/Dividend • 54% of our drawn leverage was unsecured as of December 31, 2022 and our weighted average effective rate on borrowings was 4.78%. 2 1. See the Appendix for a reconciliation between NII and Adjusted ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________________ 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) (I.R.S. Employer Identification Number) FORM 10-K __________________________________ ...

FS KKR Capital Corp (NYSE:FSK) Q3 2022 Earnings Conference Call November 8, 2022 9:00 AM ET Company Participants Robert Paun - Director, IR Michael Forman - Chairman & CEO Daniel Pietrzak - Co-President & CIO Brian Gerson - Co-President Steven Lilly - CFO Conference Call Participants John Hecht - Jefferies Casey Alexander - Compass Point Research & Trading Ryan Lynch - KBW Robert Dodd - Raymond James & Associates Melissa Wedel - JPMorgan Chase & Co. Kenneth Lee - RBC Capital Markets Operator Good morning, ...