FS KKR Capital Corp (NYSE:FSK) Q2 2021 Earnings Conference Call August 10, 2021 9:00 AM ET Company Participants Michael Forman - Chairman, Chief Executive Officer Dan Pietrzak - Co-President, Chief Investment Officer Brian Gerson - Co-President Steven Lilly - Chief Financial Officer Ryan Wilson - Co-Chief Operating Officer Robert Paun - Head of Investor Relations Conference Call Participants Casey Alexander - Compass Point John Hecht - Jefferies Finian O’Shea - Wells Fargo Securities Bryce Rowe - Hovde Ryan ...

FSK | FS KKR Capital Corp. FS KKR Capital Corp. Financial Information QUARTER ENDED JUNE 30, 2021 Summary of Quarterly Results | --- | --- | |----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | • Net investment inc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q 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 ...

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q 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 required to be filed by S ...

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 ...