FS KKR Capital Corp. (NYSE: FSK), today reported net investment income of $201 million, or $0.71 per share for the third quarter ended September 30, 2021. The Company’s net asset value (“NAV”) was $27.14 per share as of September 30, 2021, compared to $26.84 per share as of June 30, 2021.
Financial and Operating Highlights for the Quarter Ended September 30, 2021(1)
“FSK’s third quarter results were strong across multiple metrics,” commented Michael C. Forman, CEO and Chairman. “We originated $2.8 billion of new investments as we continue to benefit from the growing private credit market and strength of our experienced investing team. During the third quarter, we over-earned our targeted 9.00% annualized dividend yield and we also experienced an increase in our net asset value. Based on our strong operating results and pursuant to our variable dividend policy, we are delighted to announce a $0.62 per share dividend for the fourth quarter of 2021, as compared to our original expectation of a $0.60 per share dividend. Finally, in October we further enhanced our already strong liquidity position by issuing $1.25 billion of unsecured notes at a weighted average coupon of 2.54%. As we begin looking forward to 2022, I believe FSK is well positioned for future success.”
Declaration of Distribution for Fourth Quarter 2021
FSK’s board of directors has declared a cash distribution for the fourth quarter of $0.62 per share, which will be paid on or about January 4, 2022 to stockholders of record as of the close of business on December 15, 2021.
Portfolio Highlights as of September 30, 2021
Portfolio Data |
As of September 30, 2021 |
As of June 30, 2021 |
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Total fair value of investments |
$15,824 |
$14,734 |
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Number of Portfolio Companies |
190 |
195 |
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Asset Class (based on fair value) |
||||
Senior Secured Loans — First Lien |
61.2% |
56.4% |
||
Senior Secured Loans — Second Lien |
10.6% |
12.4% |
||
Other Senior Secured Debt |
0.9% |
1.3% |
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Subordinated Debt |
0.6% |
0.7% |
||
Asset Based Finance |
12.6% |
12.9% |
||
Credit Opportunities Partners JV, LLC |
8.8% |
9.5% |
||
Equity/Other |
5.3% |
6.8% |
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Interest Rate Type (based on fair value) |
||||
% Variable Rate Debt Investments |
69.2% |
68.0% |
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% Fixed Rate Debt Investments |
9.3% |
9.0% |
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% Other Income Producing Investments |
13.4% |
14.0% |
||
% Non-Income Producing Investments(7) |
4.4% |
6.0% |
||
% of Investments on Non-Accrual(6) |
3.7% |
3.0% |
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Leverage and Liquidity as of September 30, 2021
Conference Call Information
FSK will host a conference call at 9:00 a.m. (Eastern Time) on Tuesday, November 9, 2021, to discuss its third quarter 2021 financial and operating results. All interested parties are welcome to participate. Interested parties can access the conference call by dialing (833) 818-6808 and using the conference ID 6949375 approximately 10 minutes prior to the call. The conference call also will be webcast, which can be accessed from the Investor Relations section of FSK’s website at www.fskkradvisor.com under Events.
A replay of the call will be available shortly after the end of the call for a period of 30 days following the call by visiting the Investor Relations section of FSK’s website at www.fskkradvisor.com under Events or by dialing (855) 859-2056 and using conference ID 6949375.
Supplemental Information
An investor presentation containing financial and operating information will be made available prior to the call in the Investor Relations section of FSK’s website at www.fskkradvisor.com under Earnings presentations.
About FS KKR Capital Corp.
FSK is a leading publicly traded business development company (BDC) focused on providing customized credit solutions to private middle market U.S. companies. FSK seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies. FSK is advised by FS/KKR Advisor, LLC. For more information, please visit www.fskkradvisor.com.