Fs Kkr Capital Corp. · NYSE:FSK
Fs Kkr Capital — Q2 2023 Earnings Presentation
16 slides from Fs Kkr Capital's earnings presentation, Aug 8, 2023
Slide 1: FS KKR Capital Corp. Financial Information, Quarter Ended June 30, 2023
FS KKR Capital Corp. Financial Information Quarter Ended June 30, 2023 All information is as of June 30, 2023 unless otherwise noted
Slide 2: Summary of Quarterly Results
Summary of Quarterly Results • Net investment income (NII) for the quarter ended June 30, 2023 was $229 million, or $0.82 per share, as compared to $229 million, or $0.81 per share, for the quarter ended March 31, 2023. • Adjusted net investment income (Adjusted NII) for the quarter ended June 30, 2
Slide 3: Financial Results
Financial Results (Dollar amounts in millions, except per share data) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 NII per share $0.71 $0.76 $0.80 $0.81 $0.82 Adjusted NII per share(1) $0.67 $0.73 $0.81 $0.78 $0.78 Net realized and unrealized gains (losses) per share ($0.96) ($1.21) ($0.56) ($0.11) ($0.
Slide 4: Portfolio Highlights
Portfolio Highlights As of and for Three Months Ended (Dollar amounts in millions) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Investment at Fair Value: First Lien Senior Secured Loans 61.9% 61.9% 60.3% 61.0% 59.5% Second Lien Senior Secured Loans 8.0% 7.9% 7.8% 7.7% 7.9% Other Senior Secured Debt 0.7%
Slide 5: FSK Investment Portfolio Overview
FSK Investment Portfolio Overview 195 19% 68% $115mm / 6.0x portfolio companies(1) FV in top-10 portfolio of investments in median portfolio company EBITDA & companies(2) senior secured debt(2) leverage(3) 89% 12.1% 2.5% ~75% of debt investments wtd. avg. annual yield on non-accrual rate at FV lead,
Slide 6: Quarterly Investment Activity
Quarterly Investment Activity Asset Mix of New Purchases(1) $907 $863 $804 49% 69% 74% 9% $363 (2) 0% $270 1% 20% 83% 19% 7% 82% 6% 23% 3% 11% 14% 11% 10% 1% 3% 4% 1% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Portfolio Roll ($ in millions) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Investment Purchases
Slide 7: Net Asset Value Bridge
Net Asset Value Bridge $0.82 ($0.70) ($0.05) ($0.31) $0.05 $24.93 $24.93 $25.05 $25.00 $24.69 $24.69 $24.74 $24.74 3/31/2023 Net Investment Regular & Supplemental Special Distribution Net Realized 6/30/2023 Special Distribution 6/30/2023 NAV Income Distribution & Unrealized Losses NAV Adjusted NAV 1
Slide 8: Capital Structure: Overview
Capital Structure: Overview Key Highlights Capital Structure Overview • 1.13x Net Debt-to-Equity as of June 30, 2023, compared to 1.18x as of March 31, 2023(1) Funding Source Committed Outstanding Undrawn Maturity Wtd. Avg. Rate Senior Secured Revolver due 2027 4,655 1,806 2,832(3) 5/17/2027 S+1.75%
Slide 9: Credit Opportunities Partners JV, LLC Overview
Credit Opportunities Partners JV, LLC Overview FSK’s joint venture with South Carolina Retirement 4.9% Senior Secured Loans—First Lien Systems Group Trust (SCRS) 16.0% Senior Secured Loans—Second Lien 0.2% Primarily senior secured assets Security Exposure 0.6% Other Senior Secured Debt (by fair valu
Slide 10: Direct Origination Investments EBITDA and Credit Statistics
Direct Origination Investments EBITDA and Credit Statistics Direct Origination Portfolio Company Median EBITDA Direct Origination Portfolio Company Coverage Ratios $113.8 $114.4 $114.7 7.0x 6.1x 6.1x 6.0x 6.0x 6.0x 5.9x 5.9x $99.3 6.0x 5.6x 5.6x 5.6x 5.5x 5.4x 5.5x 5.2x 5.3x $81.4 $80.5 5.0x $77.7 $
Slide 11: Appendix
APPENDIX FSK | FS KKR Capital Corp.
Slide 12: Operating Results
Operating Results For The Three Months Ended (Dollar amounts in millions, except per share data) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Total investment income $379 $411 $449 $456 $462 Net expenses (176) (194) (205) (227) (233) Net investment income before taxes $203 $217 $244 $229 $229 Excise tax
Slide 13: Operating Results Detail
Operating Results Detail For The Three Months Ended (Dollar amounts in millions, except per share data) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Investment income: Interest income $247 $279 $319 $327 $320 Payment-in-kind interest income 40 39 41 42 56 Fee income 13 26 12 5 6 Total dividend and other
Slide 14: Balance Sheet
Balance Sheet As of (Dollar amounts in millions, except per share data) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Assets Total investments, at fair value $16,178 $15,792 $15,377 $15,277 $14,764 Cash 232 264 248 245 225 Foreign currency, at fair value 37 2 3 5 49 Receivable for investments sold and re
Slide 15: Quarterly Gain/Loss Information
Quarterly Gain/Loss Information For The Three Months Ended (Dollar amounts in millions, except per share data) 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 Realized gain/loss Net realized gain (loss) on investments: Non-controlled/unaffiliated investments $177 $16 ($31) ($58) ($39) Non-controlled/affili
Slide 16: Important Disclosure Notice
Important Disclosure Notice Forward-Looking Statements Statements included herein may constitute “forward-looking” statements as that term is defined in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended, i