Fs Kkr Capital Corp. · NYSE:FSK
Fs Kkr Capital — Q3 2023 Earnings Presentation
16 slides from Fs Kkr Capital's earnings presentation, Nov 7, 2023
Slide 1: FS KKR Capital Corp. Financial Information, Quarter Ended September 30, 2023
FS KKR Capital Corp. Financial Information Quarter Ended September 30, 2023 All information is as of September 30, 2023 unless otherwise noted
Slide 2: Summary of Quarterly Results
Summary of Quarterly Results • Net investment income (NII) for the quarter ended September 30, 2023 was $234 million, or $0.84 per share, as compared to $229 million, or $0.82 per share, for the quarter ended June 30, 2023. • Adjusted net investment income (Adjusted NII) for the quarter ended Septem
Slide 3: Financial Results
Financial Results (Dollar amounts in millions, except per share data) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 NII per share $0.76 $0.80 $0.81 $0.82 $0.84 Adjusted NII per share(1) $0.73 $0.81 $0.78 $0.78 $0.80 Net realized and unrealized gains (losses) per share ($1.21) ($0.56) ($0.11) ($0.31) $0.1
Slide 4: Portfolio Highlights
Portfolio Highlights As of and for Three Months Ended (Dollar amounts in millions) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 Investment at Fair Value: First Lien Senior Secured Loans 61.9% 60.3% 61.0% 59.5% 59.8% Second Lien Senior Secured Loans 7.9% 7.8% 7.7% 7.9% 7.5% Other Senior Secured Debt 0.7%
Slide 5: FSK Investment Portfolio Overview
FSK Investment Portfolio Overview 200 20% 68% $118mm / 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% 12.2% 2.4% ~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 49% 74% $504 9% (2) $363 0% $270 20% 92% 1% 83% 7% 82% 6% 5% 23% 3% 14% 11% 10% 2% 1% 3% 4% 1% 0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Portfolio Roll ($ in millions) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 Investment Purchases
Slide 7: Net Asset Value Bridge
Net Asset Value Bridge $0.84 ($0.70) $0.11 ($0.05) $24.69 $24.69 $24.83 $24.78 $24.89 $24.89 6/30/2023 Net Investment Regular & Supplemental Special Distribution Net Realized 9/30/2023 NAV Income Distribution & Unrealized Gains NAV Note: Per share data derived using the weighted average shares outst
Slide 8: Capital Structure: Overview
Capital Structure: Overview Key Highlights Pro-forma Capital Structure Overview(3) • 1.10x Net Debt-to-Equity as of September 30, 2023, compared to 1.13x as of June 30, 2023(1) Funding Source Committed Outstanding Undrawn Maturity Wtd. Avg. Rate Senior Secured Revolver due 2028 4,670 1,683 2,969(4)
Slide 9: Credit Opportunities Partners JV, LLC Overview
Credit Opportunities Partners JV, LLC Overview FSK’s joint venture with South Carolina Retirement 5.3% Senior Secured Loans—First Lien Systems Group Trust (SCRS) 0.1% 14.0% Senior Secured Loans—Second Lien 0.6% Primarily senior secured assets Security Exposure 7.1% Other Senior Secured Debt (by fair
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 $117.5 7.0x $113.8 $114.4 $114.7 6.1x 6.1x 6.0x 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 5.0x $
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) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 Total investment income $411 $449 $456 $462 $465 Net expenses (194) (205) (227) (233) (231) Net investment income before taxes $217 $244 $229 $229 $234 Excise tax
Slide 13: Operating Results Detail
Operating Results Detail For The Three Months Ended (Dollar amounts in millions, except per share data) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 Investment income: Interest income $279 $319 $327 $320 $316 Payment-in-kind interest income 39 41 42 56 58 Fee income 26 12 5 6 12 Total dividend and other
Slide 14: Balance Sheet
Balance Sheet As of (Dollar amounts in millions, except per share data) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 Assets Total investments, at fair value $15,792 $15,377 $15,277 $14,764 $14,666 Cash 264 248 245 225 171 Foreign currency, at fair value 2 3 5 49 5 Receivable for investments sold and rep
Slide 15: Quarterly Gain/Loss Information
Quarterly Gain/Loss Information For The Three Months Ended (Dollar amounts in millions, except per share data) 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 Realized gain/loss Net realized gain (loss) on investments: Non-controlled/unaffiliated investments $16 ($31) ($58) ($39) ($50) Non-controlled/affil
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