FS KKR Capital Corp.
11/05/2026 | Press release | Distributed by Public on 11/05/2026 05:39
FS KKR Capital Corp. Announces Third Quarter 2026 Results (Form 8-K)
FS KKR Capital Corp. Announces Third Quarter 2026 Results
PHILADELPHIA, PA AND NEW YORK, NY - November 5, 2026 - FS KKR Capital Corp. (NYSE: FSK), or the Company, today announced its financial and operating results for the quarter ended September 30, 2026, and that its board of directors previously, on October 7, 2026, declared a fourth quarter 2026 distribution of $0.44 per share to common stockholders and a special distribution of $0.20 per share to common stockholders.
Financial and Operating Highlights for the Quarter Ended September 30, 2026(1)
| • | Net investment income of $0.46 per share, compared to $0.44 per share for the quarter ended June 30, 2026 |
| • | Adjusted net investment income(2) of $0.46 per share, compared to $0.43 per share for the quarter ended June 30, 2026 |
| • | Net asset value of $18.28 per share as of September 30, 2026, compared to $18.30 per share as of June 30, 2026 |
| • | Total net realized and unrealized loss of $0.19 per share, compared to a total net realized and unrealized loss of $0.56 per share for the quarter ended June 30, 2026 |
| • | Adjusted net realized and unrealized loss(2) of $0.18 per share, compared to adjusted net realized and unrealized loss of $0.55 per share for the quarter ended June 30, 2026 |
| • | Earnings (Loss) per share of $0.26, compared to Earnings (Loss) per share of ($0.13) for the quarter ended June 30, 2026 |
| • | Total purchases of $335 million versus $442 million of sales and repayments |
| • | Debt to equity ratio as of September 30, 2026 was 127%, compared to 127% as of June 30, 2026 |
| • | Net debt to equity ratio(3) as of September 30, 2026 was 125%, compared to 122% as of June 30, 2026 |
| • | Paid a third quarter 2026 distribution of $0.44 per share to common stockholders(4) |
"During the third quarter, FSK continued making progress toward our previously stated strategic goals," said Michael C. Forman, Chief Executive Officer and Chairman. "During the quarter we repurchased approximately six million shares of common stock at a weighted average price of $11.24 per share, totaling approximately $69 million. In addition, we received full and partial repayments of portfolio investments totaling $442 million. As our investment team continues focusing on portfolio rotation, we expect our portfolio will move toward more first lien exposure."
Subsequent Events
During the period from October 1, 2026 through October 30, 2026, the Company repurchased 1,546,162 shares of common stock pursuant to the board-authorized share repurchase program at an average price per share (inclusive of commissions paid) of $10.88 (totaling $17 million). All such repurchases were made on the Company's behalf by a third-party agent on the open market at prices below net asset value per share in transactions intended to qualify for the safe harbors provided by Rules 10b5-1 and 10b-18 under the Exchange Act of 1934, as amended. The shares repurchased during the period from October 1, 2026 through October 30, 2026 are in addition to 6,533,672 shares of common stock (totaling $73 million at an average price per share, inclusive of commissions paid, of $11.20) repurchased from the commencement of the repurchase plan on June 29, 2026, through the end of the third quarter. The weighted average purchase price of all shares repurchased from June 29, 2026 to October 30, 2026 (inclusive of commissions paid) was $11.14.
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Common Stock Distributions for Fourth Quarter 2026
As previously announced, on October 7, 2026, FSK's board of directors declared (i) a fourth quarter 2026 distribution of $0.44 per share to common stockholders, which will be paid on or about December 24, 2026 to common stockholders of record as of the close of business on December 16, 2026, and (ii) a special distribution of $0.20 per share to common stockholders, which will be paid on or about December 15, 2026 to common stockholders of record as of the close of business on December 1, 2026.
The special distribution amount represents a portion of the Company's estimated accumulated spillback income and is intended to distribute additional taxable income to shareholders in connection with the Company's maintenance of its treatment as a regulated investment company under the Internal Revenue Code of 1986, as amended.
Declaration of Convertible Preferred Stock Dividend for Fourth Quarter 2026
On October 28, 2026, FSK's board of directors declared a cash dividend on FSK's convertible preferred stock for the period from September 30, 2026 to, but excluding, December 31, 2026 in the amount of $0.3125 per preferred share, which will be paid on or about December 31, 2026 to the convertible preferred stockholders of record as of the close of business on December 15, 2026.
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Portfolio Highlights as of September 30, 2026
| • | Total fair value of investments was $11.3 billion of which 63.2% was invested in senior secured securities. |
| • | Weighted average annual yield on accruing debt investments(5) was 10.0%, compared to 9.8% as of June 30, 2026. |
| • | Weighted average annual yield on all debt investments(5) was 9.0%, compared to 8.8% as of June 30, 2026. |
| • | Exposure to the top ten largest portfolio companies by fair value was 21%, compared to 21% as of June 30, 2026. |
| • | As of September 30, 2026, investments on non-accrual status represented 3.4% and 6.4% of the total investment portfolio at fair value and amortized cost, respectively, compared to 3.8% and 7.1% as of June 30, 2026. |
| Portfolio Data | As of September 30, 2026 | As of June 30, 2026 | ||
| Total fair value of investments (in millions) | $11,306 | $11,418 | ||
| Asset Class (based on fair value) | ||||
| Senior Secured Loans - First Lien | 58.9% | 58.7% | ||
| Senior Secured Loans - Second Lien | 3.9% | 3.9% | ||
| Other Senior Secured Debt | 0.4% | 0.4% | ||
| Subordinated Debt | 0.9% | 0.9% | ||
| Asset Based Finance | 11.6% | 12.6% | ||
| Credit Opportunities Partners JV, LLC | 14.4% | 14.4% | ||
| Equity/Other | 9.9% | 9.1% | ||
| Interest Rate Type (based on fair value) | ||||
| % Variable Rate Debt Investments | 60.1% | 59.4% | ||
| % Fixed Rate Debt Investments | 9.5% | 9.1% | ||
| % Other Income Producing Investments | 19.2% | 21.1% | ||
| % Non-Income Producing Investments(6) | 7.8% | 6.6% | ||
| % of Investments on Non-Accrual(7) | 3.4% | 3.8% |
Leverage and Liquidity as of September 30, 2026
| • | Debt to equity ratio of 127%, based on $6.3 billion in total debt outstanding and common stockholders' equity of $5.0 billion. Net debt to equity ratio(3) of 125%, based on $6.5 billion in total debt outstanding, including convertible preferred stock, net of $111 million of cash, cash equivalents, and foreign currency and $105 million of net receivable for investments sold and repaid and common stockholders' equity of $5.0 billion. FSK's weighted average stated interest rate on borrowings was 5.57%(9). |
| • | Cash, cash equivalents, and foreign currency of $111 million and availability under the Company's financing arrangements of $3.2 billion, subject to borrowing base and other limitations. |
| • | As of September 30, 2026, 73% of the Company's $6.3 billion of total debt outstanding was in unsecured debt and 27% was in secured debt. |
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Conference Call Information
FSK will host its third quarter 2026 results conference call via live webcast on Thursday, November 5, 2026 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/upuop9i6.
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-conf.media-server.com/register/BI0d946f0340f2498081d26dfdacd11fc1. 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, before the market open on Thursday, November 5, 2026.
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, subordinated loans and certain asset-based financing loans of private U.S. 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 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 $94 billion in assets under management, we back the business owners and financial sponsors that drive growth and innovation across the middle market, transforming untapped potential into durable value(8).
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.
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FS KKR Capital Corp. published this content on November 05, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 05, 2026 at 11:40 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]