PHILADELPHIA and NEW YORK, Feb. 26, 2025 /PRNewswire/ — FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter and year ended December 31, 2024, and that its board of directors has declared a first quarter 2025 distribution of $0.70 per share.
Financial and Operating Highlights for the Quarter Ended December 31, 2024(1)
Financial and Operating Highlights for the Year Ended December 31, 2024(1)
“As we conclude the fourth quarter of 2024, we are pleased with our continued strong performance, highlighted by disciplined capital deployment, portfolio stability, and a well-laddered, diversified capital structure,” said Michael C. Forman, Chief Executive Officer & Chairman. “Looking ahead, our $4.8 billion of available liquidity will serve as a significant strength as private market activity continues to build.”
Declaration of Distribution for First Quarter 2025
On February 25, 2025, FSK’s board of directors declared a distribution for the first quarter of $0.70 per share, consisting of a base distribution of $0.64 per share and a supplemental distribution of $0.06 per share, which will be paid on or about April 2, 2025 to stockholders of record as of the close of business on March 19, 2025.
Portfolio Highlights as of December 31, 2024
Portfolio Data
As of December 31, 2024
As of September 30, 2024
Total fair value of investments
$13,490
$13,943
Asset Class (based on fair value)
Senior Secured Loans — First Lien
57.8 %
59.9 %
Senior Secured Loans — Second Lien
5.1 %
6.2 %
Other Senior Secured Debt
0.9 %
0.9 %
Subordinated Debt
1.7 %
1.6 %
Asset Based Finance
15.6 %
14.3 %
Credit Opportunities Partners JV, LLC
10.1 %
9.9 %
Equity/Other
8.8 %
7.2 %
Interest Rate Type (based on fair value)
% Variable Rate Debt Investments
65.8 %
68.6 %
% Fixed Rate Debt Investments
9.5 %
8.2 %
% Other Income Producing Investments
16.4 %
15.8 %
% Non-Income Producing Investments(7)
6.1 %
5.7 %
% of Investments on Non-Accrual(6)
2.2 %
1.7 %
Leverage and Liquidity as of December 31, 2024
Conference Call Information
FSK will host its fourth quarter and full year 2024 results conference call via live webcast on Thursday, February 27, 2025 at 9:00 a.m. (Eastern Time). All interested parties are welcome to participate and can access the live webcast from the Investor Relations section of FSK’s website at www.fskkradvisor.com under Events or through the following URL: https://edge.media-server.com/mmc/p/y6c8i927.
Research analysts who wish to participate in the conference call are requested to register a day in advance or at a minimum 15 minutes before the start of the call using the following URL: https://register.vevent.com/register/BI285768b6c23c42fbb6b961100d310f8e. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN number that can be used to access the call.
An investor presentation of financial information will be available by visiting the Investor Relations section of FSK’s website, under Presentations after the market close on Wednesday, February 26, 2025.
A replay of the call will be available beginning shortly after the end of the call by visiting the Investor Relations section of FSK’s website, under Events.
Supplemental Information
An investor presentation of financial information will be available by visiting the Investor Relations section of FSK’s website at www.fskkradvisor.com, under Presentations, after the market close on Wednesday, February 26, 2025.
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.
About FS/KKR Advisor, LLC
FS/KKR Advisor, LLC (FS/KKR) is a partnership between FS Investments and KKR Credit that serves as the investment adviser to FSK and other business development companies.
FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over $83 billion in assets for a wide range of clients, including institutional investors, financial professionals and individual investors. FS Investments provides access to a broad suite of alternative asset classes and strategies through its best-in-class investment teams and partners. With its diversified platform and flexible capital solutions, the firm is a valued partner to general partners, asset owners and portfolio companies. FS Investments is grounded in its high-performance culture and guided by its commitment to building value for its clients, investing in its colleagues and giving back to its communities. The firm has more than 500 employees across offices in the U.S., Europe and Asia and is headquartered in Philadelphia.
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.
Forward-Looking Statements and Important Disclosure Notice
This announcement may contain certain forward-looking statements, including statements with regard to future events or future performance or operations of FSK. Words such as “believes,” “expects,” “projects,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, risks associated with possible disruption in FSK’s operations or the economy generally due to terrorism, geo-political risks, natural disasters or pandemics such as COVID-19, future changes in laws or regulations and conditions in FSK’s operating area and the price at which shares of FSK’s common stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSK makes with the SEC. FSK undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The press release above contains summaries of certain financial and statistical information about FSK. The information contained in this press release is summary information that is intended to be considered in the context of FSK’s SEC filings and other public announcements that FSK may make, by press release or otherwise, from time to time. FSK undertakes no duty or obligation to update or revise the information contained in this press release. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. Investors should not view the past performance of FSK, or information about the market, as indicative of FSK’s future results.
Other Information
The information in this press release is summary information only and should be read in conjunction with FSK’s annual report on Form 10-K for the year ended December 31, 2024, which FSK filed with the U.S. Securities and Exchange Commission (the SEC) on February 26th, 2025, as well as FSK’s other reports filed with the SEC. A copy of FSK’s annual report on Form 10-K for the year ended December 31, 2024 and FSK’s other reports filed with the SEC can be found on FSK’s website at www.fskkradvisor.com and the SEC’s website at www.sec.gov.
Certain Information About Distributions
The determination of the tax attributes of FSK’s distributions is made annually as of the end of its fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. FSK intends to update stockholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to stockholders will be reported to stockholders annually on Form 1099-DIV.
The timing and amount of any future distributions on FSK’s shares of common stock are subject to applicable legal restrictions and the sole discretion of its board of directors. There can be no assurance as to the amount or timing of any such future distributions.
FSK may fund its cash distributions to stockholders from any sources of funds legally available to it, including net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies, proceeds from the sale of shares of FSK’s common stock and borrowings. FSK has not established limits on the amount of funds it may use from available sources to make distributions. There can be no assurance that FSK will be able to pay distributions at a specific rate or at all.
Contact Information:
Investor Relations Contact
Anna Kleinhenn
Anna.Kleinhenn@fsinvestments.com
FS Investments Media Team
Melanie Hemmert
Melanie.Hemmert@fsinvestments.com
Consolidated Statements of Operations
(in millions, except share and per share amounts)
Year Ended December 31,
2024
2023
2022
Investment income
From non-controlled/unaffiliated investments:
Interest income
$ 1,059
$ 1,183
$ 1,020
Paid-in-kind interest income
67
108
72
Fee income
53
30
74
Dividend and other income
26
14
50
From non-controlled/affiliated investments:
Interest income
42
25
28
Paid-in-kind interest income
50
39
48
Fee income
1
1
6
Dividend and other income
16
28
7
From controlled/affiliated investments:
Interest income
71
87
58
Paid-in-kind interest income
94
45
43
Fee income
9
4
—
Dividend and other income
233
266
229
Total investment income
1,721
1,830
1,635
Operating expenses
Management fees
216
226
245
Subordinated income incentive fees
167
181
159
Administrative services expenses
10
12
15
Accounting and administrative fees
4
4
5
Interest expense
465
467
365
Other general and administrative expenses
23
26
22
Total operating expenses
885
916
811
Incentive fee waiver
—
—
(60)
Net expenses
885
916
751
Net investment income before taxes
836
914
884
Excise taxes
23
22
19
Net investment income
813
892
865
Realized and unrealized gain/loss
Net realized gain (loss) on investments:
Non-controlled/unaffiliated investments
(448)
(147)
136
Non-controlled/affiliated investments
(61)
(21)
84
Controlled/affiliated investments
23
(175)
(71)
Net realized gain (loss) on foreign currency forward contracts
19
8
10
Net realized gain (loss) on foreign currency
(9)
12
23
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/unaffiliated investments
255
30
(679)
Non-controlled/affiliated investments
134
9
(131)
Controlled/affiliated investments
(172)
127
(171)
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts
(7)
(15)
16
Net change in unrealized gain (loss) on foreign currency
38
(21)
15
Total net realized and unrealized gain (loss)
(228)
(193)
(768)
Provision for taxes on realized and unrealized gains on investments
—
(3)
(5)
Net increase (decrease) in net assets resulting from operations
$ 585
$ 696
$ 92
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings per Share)
$ 2.09
$ 2.48
$ 0.32
Weighted average shares outstanding
280,066,433
280,276,768
283,508,494
Consolidated Balance Sheets
(in millions, except share and per share amounts)
December 31,
2024
2023
