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PHILADELPHIA and NEW YORK, Nov. 5, 2025 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended September 30, 2025, and that its board of directors previously, on October 8, 2025, declared a fourth quarter 2025 distribution of $0.70 per share. Financial and Operating Highlights for the Quarter Ended September 30, 2025 (1) Net investment income of $0.57 per share, compared to $0.62 per share for the quarter ended June 30, 2025Adjusted net investment income(2) of $0.57 per share, compared to $0.60 per share for the quarter ended June 30, 2025Net asset value of $21.99 per share, compared to $21.93 per share as of June 30, 2025Total net realized and unrealized gain of $0.19 per share, compared to a total net realized and unrealized loss of $1.36 per share for the quarter ended June 30, 2025Adjusted net realized and unrealized gain(2) of $0.21 per share, compared to adjusted net realized and unrealized loss of $1.34 per share for the quarter ended June 30, 2025Earnings (Loss) per Share of $0.76, compared to Earnings (Loss) per Share of $(0.75) for the quarter ended June 30, 2025Total purchases of $1,142 million versus $1,483 million of sales and repayments, including $450 million of sales to the Company's joint venture, Credit Opportunities Partners JV, LLCNet debt to equity ratio(3) as of September 30, 2025 was 116%, compared to 120% as of June 30, 2025Paid distributions to stockholders totaling $0.70 per share(4) "During the third quarter FSK generated $0.57 per share of Adjusted Net Investment Income, and our Net Asset Value per share increased to $21.99," said Michael C. Forman, Chief Executive Officer and Chairman. "We are pleased to announce our 2026 quarterly distribution strategy which we currently believe will result in an annualized yield of approximately 10% on our Net Asset Value, consistent with the BDC industry's long term yield of 9.0% to 10.0%. We believe this distribution will be attractive on both a relative and absolute basis." Distribution for Fourth Quarter 2025 As previously announced, on October 8, 2025, FSK's board of directors declared a distribution for the fourth 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 December 17, 2025 to stockholders of record as of the close of business on December 3, 2025. Portfolio Highlights as of September 30, 2025 Total fair value of investments was $13.4 billion of which 63.2% was invested in senior secured securities.Weighted average annual yield on accruing debt investments(5) was 10.6%, compared to 10.8% as of June 30, 2025. Excluding the impact of merger accounting, weighted average annual yield on accruing debt investments was 10.5%, compared to 10.6% as of June 30, 2025.Weighted average annual yield on all debt investments(5) was 9.8%, compared to 9.9% as of June 30, 2025. Excluding the impact of merger accounting, weighted average annual yield on all debt investments was 9.7%, compared to 9.7% as of June 30, 2025.Exposure to the top ten largest portfolio companies by fair value was 20%, compared to 19% as of June 30, 2025.As of September 30, 2025, investments on non-accrual status represented 2.9% and 5.0% of the total investment portfolio at fair value and amortized cost, respectively, compared to 3.0% and 5.3% as of June 30, 2025. Leverage and Liquidity as of September 30, 2025 Net debt to equity ratio(3) of 116%, based on $7.4 billion in total debt outstanding, $155 million of cash, cash equivalents and foreign currency and $46 million of net receivable for investments sold and repaid and stockholders' equity of $6.2 billion. FSK's weighted average effective interest rate (including the effect of non-usage fees) was 5.29%.Cash, cash equivalents and foreign currency of $155 million and availability under the Company's financing arrangements of $3.5 billion, subject to borrowing base and other limitations.As of September 30, 2025, 64% of the Company's $7.4 billion of total debt outstanding was in unsecured debt and 36% in secured debt. Conference Call Information FSK will host its third quarter 2025 results conference call via live webcast on Thursday, November 6, 2025 at 9:00 a.m. (Eastern Time). All interested parties are welcome to participate and can access the live webcast from the For Investors section of FSK's website at www.fskkrcapitalcorp.com under Events & Presentations or through the following URL: https://edge.media-server.com/mmc/p/bfej9rbd. 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/BId48596b4c82440e48cc3c575f06d7b1a. 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 For Investors section of FSK's website at www.fskkrcapitalcorp.com, under Events & Presentations, after the market close on Wednesday, November 5, 2025. A replay of the call will be available beginning shortly after the end of the call by visiting the For Investors section of FSK's website, under Events & 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.fskkrcapitalcorp.com. About FS/KKR Advisor, LLC FS/KKR Advisor, LLC (FS/KKR) is a partnership between Future Standard, formerly FS Investments, and KKR Credit that serves as the investment adviser to FSK and other business development companies. Future Standard is a global alternative asset manager serving institutional and private wealth clients, investing across private equity, credit and real estate. With a 30+ year track record of value creation and over $86 billion in assets under management(8), we back the business owners and financial sponsors that drive growth and innovation across the middle market, transforming untapped potential into durable value. 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, 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 quarterly report on Form 10-Q for the quarter ended September 30, 2025, which FSK filed with the U.S. Securities and Exchange Commission (the SEC) on November 5, 2025, as well as FSK's other reports filed with the SEC. A copy of FSK's quarterly report on Form 10-Q for the quarter ended September 30, 2025 and FSK's other reports filed with the SEC can be found on FSK's website at www.fskkrcapitalcorp.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 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.
