FS KKR Capital Corp 10-K

Item 8. Financial Statements and Supplementary Data. Index to Financial Statements Page Management’s Report on Internal Control over Financial Reporting 70 Reports of Independent Registered Public Accounting Firm 71 Consolidated Balance Sheets as of December 31, 2021 and 2020 74 Consolidated Statements of Operations for the years ended December 31, 2021, 2020 and 2019 75 Consolidated Statements of Changes in Net Assets for the years ended December 31, 2021, 2020 and 2019 77 Consolidated Statements of Cash Flows for the years ended December 31, 2021, 2020 and 2019 78 Consolidated Schedules of Investments as of December 31, 2021 and 2020 79 Notes to Consolidated Financial Statements 113 69 Table of Contents MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Our management is responsible for establishing and maintaining adequate internal control over financial reporting. In connection with the preparation of our annual financial statements, management has conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework set forth in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013 (“COSO”). Management’s assessment included an evaluation of the design of our internal control over financial reporting and testing of the operational effectiveness of those controls. Based on this evaluation, we have concluded that, as of December 31, 2021, our internal control over financial reporting was effective to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Our internal control over financial reporting as of December 31, 2021 has been audited by our independent registered public accounting firm. 70 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of FS KKR Capital Corp. Opinion on Internal Control over Financial Reporting We have audited the internal control over financial reporting of FS KKR Capital Corp. and subsidiaries (the “Company”) as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2021, of the Company and our report dated February 28, 2022, expressed an unqualified opinion on those financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ Deloitte & Touche LLP San Francisco, California February 28, 2022 71 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and the Board of Directors of FS KKR Capital Corp. Opinion on the Financial Statements and Financial Highlights We have audited the accompanying consolidated balance sheets of FS KKR Capital Corp. and subsidiaries (the “Company”), including the consolidated schedules of investments, as of December 31, 2021 and 2020, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2021, the financial highlights for each of the three years in the period ended December 31, 2021, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations, changes in net assets, cash flows, for each of the three years in the period ended December 31, 2021, and the financial highlights for each of the three years in the period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 28, 2022 expressed an unqualified opinion on the Company’s internal control over financial reporting. Basis for Opinion These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of investments owned as of December 31, 2021 and 2020, by correspondence with the custodian, loan agents, and borrowers; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Fair Value — Level 3 Investments — Refer to Notes 2, 6, and 8 to the financial statements Critical Audit Matter Description The Company held investments classified as Level 3 investments under accounting principles generally accepted in the United States of America. These investments included illiquid corporate bonds and loans, unlisted equity securities, and derivatives that lack observable market prices. The valuation techniques used in estimating the fair value of these investments vary and certain significant inputs used were unobservable. The fair value of the Company’s Level 3 investments was $14.0 billion as of December 31, 2021. 72 Table of Contents We identified the valuation of Level 3 investments as a critical audit matter because of the judgments necessary for management to select valuation techniques and to use significant unobservable inputs, such as selected discount rates, projected future cash flows, and comparable company multiples, to estimate the fair value as of December 31, 2021 or the fair value of investments acquired through a merger with another entity. This required a high degree of auditor judgment and extensive audit effort, including the need to involve fair value specialists who possess significant valuation experience, to evaluate the appropriateness of the valuation techniques and the significant unobservable inputs, when performing audit procedures to audit management’s estimate of fair value of Level 3 investments. How the Critical Audit Matter Was Addressed in the Audit Our audit procedures related to valuation techniques and unobservable inputs used by management to estimate the fair value of Level 3 investments included the following, among others: • We tested the effectiveness of controls over management’s valuation of Level 3 investments, including those related to valuation techniques and significant unobservable inputs. • We evaluated the appropriateness of the valuation techniques used for Level 3 investments and tested the related significant unobservable inputs by comparing these inputs to external sources. We evaluated the reasonableness of any significant changes in valuation techniques or significant unobservable inputs. For a selected sample of Level 3 investments, we performed these procedures with the assistance of our fair value specialists. • In instances where the selection of valuation techniques or significant unobservable inputs were more subjective, with the assistance of our fair value specialists, we developed an independent estimate of the fair value and compared our estimates to management’s estimates. • We evaluated management’s ability to reasonably estimate fair value by comparing management’s historical estimates to subsequent transactions, taking into account changes in market or investment specific conditions, where applicable. Accounting for the Merger with FS KKR Capital Corp. II (FSKR) – Refer to Notes 1 and 13 to the Financial Statements Critical Audit Matter Description On June 16, 2021, the Company completed the merger with FSKR for the purchase price of $3.65 billion of its common stock (the “FSKR Merger”). The Company accounted for the FSKR Merger as an asset acquisition under accounting principles generally accepted in the United States of America and the fair value of the consideration paid by the Company was allocated to the assets acquired and liabilities assumed based on their respective fair values as of the date of the transaction. We identified the accounting for the FSKR Merger as a critical audit matter because of judgments necessary for management to apply the merger accounting. This required a high degree of auditor judgement and extensive audit effort, when performing audit procedures to audit management’s application of the merger accounting. How the Critical Audit Matter Were Addressed in the Audit: Our audit procedures related to the application of the merger accounting included the following, among others: • We tested the effectiveness of management’s controls over the FSKR Merger, including those related to the determination and application of appropriate accounting policies for asset acquisition. • We evaluated the appropriateness of the merger accounting based on the significant terms of the merger agreement, the determination of net asset value of FSKR on the merger date, and the allocation of the merger considerations to the assets acquired and liabilities assumed, including the Level 3 investments acquired through the FSKR Merger. /s/ Deloitte & Touche LLP San Francisco, California February 28, 2022 We have served as the Company’s auditor since 2019. 73 Table of Contents Part I—FINANCIAL INFORMATION FS KKR Capital Corp. Consolidated Balance Sheets (in millions, except share and per share amounts) December 31, 2021 2020 Assets Investments, at fair value Non-controlled/unaffiliated investments (amortized cost—$12,419 and $5,314, respectively) $ 12,558 $ 4,986 Non-controlled/affiliated investments (amortized cost—$860 and $629, respectively) 859 534 Controlled/affiliated investments (amortized cost—$2,778 and $1,510, respectively) 2,684 1,260 Total investments, at fair value (amortized cost—$16,057 and $7,453, respectively) 16,101 6,780 Cash 258 182 Foreign currency, at fair value (cost—$119 and $8, respectively) 119 9 Receivable for investments sold and repaid 567 173 Income receivable 153 72 Unrealized appreciation on foreign currency forward contracts 9 1 Deferred financing costs 16 15 Deferred merger costs — 1 Prepaid expenses and other assets 5 4 Total assets $ 17,228 $ 7,237 Liabilities Payable for investments purchased $ 2 $ — Debt (net of deferred financing costs of $38 and $23, respectively) (1) 9,142 3,997 Unrealized depreciation on foreign currency forward contracts 1 3 Stockholder distributions payable 176 74 Management and investment adviser fees payable 60 25 Subordinated income incentive fees payable (2) 19 — Administrative services expense payable 5 2 Interest payable 70 25 Other accrued expenses and liabilities 23 15 Total liabilities 9,498 4,141 Commitments and contingencies (3) Stockholders’ equity Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding — — Common stock, $0.001 par value, 750,000,000 shares authorized, 284,543,091 and 123,755,965 shares issued and outstanding, respectively 0 0 Capital in excess of par value 9,658 3,866 Retained earnings (accumulated deficit) (4) (1,928 ) (770 ) Total stockholders’ equity 7,730 3,096 Total liabilities and stockholders’ equity $ 17,228 $ 7,237 Net asset value per share of common stock at year end (4) $ 27.17 $ 25.02 (1) See Note 9 for a discussion of the Company’s financing arrangements. (2) See Note 2 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees. (3) See Note 10 for a discussion of the Company’s commitments and contingencies. (4) See Note 5 for a discussion of the sources of distributions paid by the Company. See notes to consolidated financial statements. 74 Table of Contents FS KKR Capital Corp. Consolidated Statements of Operations (in millions, except share and per share amounts) Year Ended December 31, 2021 2020 2019 Investment income From non-controlled/unaffiliated investments: Interest income $ 641 $ 427 $ 571 Paid-in-kind interest income 52 43 40 Fee income 88 33 42 Dividend income 30 16 10 From non-controlled/affiliated investments: Interest income 21 10 28 Paid-in-kind interest income 19 19 16 Fee income 2 — — Dividend income 0 — — From controlled/affiliated investments: Interest income 25 7 11 Paid-in-kind interest income 36 4 4 Fee income 1 — — Dividend income 166 80 57 Total investment income 1,081 639 779 Operating expenses Management fees 173 106 115 Subordinated income incentive fees (1) 77 — 57 Administrative services expenses 12 7 9 Accounting and administrative fees 3 2 2 Interest expense (2) 231 170 170 Other general and administrative expenses 19 13 9 Total operating expenses 515 298 362 Incentive fee waiver (1) (30 ) — — Net expenses 485 298 362 Net investment income before taxes 596 341 417 Excise taxes 12 10 7 Net investment income 584 331 410 See notes to consolidated financial statements. 75 Table of Contents FS KKR Capital Corp. Consolidated Statements of Operations (in millions, except share and per share amounts) Year Ended December 31, 2021 2020 2019 Realized and unrealized gain/loss Net realized gain (loss) on investments: Non-controlled/unaffiliated investments $ 28 $ (323 ) $ (114 ) Non-controlled/affiliated investments 192 (132 ) 32 Controlled/affiliated investments (49 ) (35 ) 1 Net realized gain (loss) on swap contracts — — (11 ) Net realized gain (loss) on foreign currency forward contracts 0 0 12 Net realized gain (loss) on foreign currency (7 ) (6 ) 2 Net change in unrealized appreciation (depreciation) on investments: Non-controlled/unaffiliated investments 478 17 (105 ) Non-controlled/affiliated investments 94 (126 ) 55 Controlled/affiliated investments 156 (112 ) (33 ) Net change in unrealized appreciation (depreciation) on swap contracts — — 16 Net change in unrealized appreciation (depreciation) on foreign currency forward contracts 12 (3 ) (2 ) Net change in unrealized gain (loss) on foreign currency 30 (16 ) (17 ) Total net realized and unrealized gain (loss) 934 (736 ) (164 ) Realized loss on extinguishment of debt (3 ) — — Net increase (decrease) in net assets resulting from operations $ 1,515 $ (405 ) $ 246 Per share information—basic and diluted Net increase (decrease) in net assets resulting from operations (Earnings per Share) $ 7.16 $ (3.26 ) $ 1.90 Weighted average shares outstanding 211,670,361 124,290,607 129,736,685 (1) See Note 2 and 4 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees. (2) See Note 9 for a discussion of the Company’s financing arrangements. See notes to consolidated financial statements. 76 Table of Contents FS KKR Capital Corp. Consolidated Statements of Changes in Net Assets (in millions) Year Ended December 31, 2021 2020 2019 Operations Net investment income $ 584 $ 331 $ 410 Net realized gain (loss) on investments, swap contracts, foreign currency and extinguishment of debt 161 (496 ) (78 ) Net change in unrealized appreciation (depreciation) on investments, swap contracts and foreign currency forward contracts (1) 740 (224 ) (69 ) Net change in unrealized gain (loss) on foreign currency 30 (16 ) (17 ) Net increase (decrease) in net assets resulting from operations 1,515 (405 ) 246 Stockholder distributions (2) Distributions to stockholders (511 ) (318 ) (393 ) Net decrease in net assets resulting from stockholder distributions (511 ) (318 ) (393 ) Capital share transactions (3) Issuance of common stock 3,642 — — Reinvestment of stockholder distributions — — — Repurchases of common stock (12 ) (47 ) (153 ) Net increase (decrease) in net assets resulting from capital share transactions 3,630 (47 ) (153 ) Total increase (decrease) in net assets 4,634 (770 ) (300 ) Net assets at beginning of year 3,096 3,866 4,166 Net assets at end of year $ 7,730 $ 3,096 $ 3,866 (1) See Note 7 for a discussion of the Company’s financial instruments. (2) See Note 5 for a discussion of the sources of distributions paid by the Company. (3) See Note 3 for a discussion of the Company’s capital share transactions. See notes to consolidated financial statements. 77 Table of Contents FS KKR Capital Corp. Consolidated Statements of Cash Flows (in millions) Year Ended December 31, 2021 2020 2019 Cash flows from operating activities Net increase (decrease) in net assets resulting from operations $ 1,515 $ (405 ) $ 246 Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: Purchases of investments (1) (6,599 ) (2,336 ) (2,907 ) Paid-in-kind interest (111 ) (84 ) (60 ) Proceeds from sales and repayments of investments 5,575 2,301 2,854 Net realized (gain) loss on investments (171 ) 490 81 Net change in unrealized (appreciation) depreciation on investments (2) (717 ) 221 83 Net change in unrealized (appreciation) depreciation on swap contracts — — (16 ) Net change in unrealized (appreciation) depreciation on foreign currency forward contracts (10 ) 3 2 Realized loss on extinguishment of debt 3 — — Accretion of discount (71 ) (15 ) (21 ) Amortization of deferred financing costs and discount 9 12 6 Unrealized (gain)/loss on borrowings in foreign currency (27 ) 10 19 (Increase) decrease in due from counterparty — — — (Increase) decrease in receivable for investments sold and repaid (394 ) 484 (513 ) (Increase) decrease in income receivable (81 ) 10 (22 ) (Increase) decrease in deferred merger costs 1 (1 ) — (Increase) decrease in prepaid expenses and other assets (1 ) (1 ) (2 ) Increase (decrease) in payable for investments purchased 2 (15 ) 9 Increase (decrease) in management fees payable 35 (5 ) 10 Increase (decrease) in subordinated income incentive fees payable 19 — (14 ) Increase (decrease) in administrative services expense payable 3 (1 ) 2 Increase (decrease) in interest payable 45 2 (5 ) Increase (decrease) in other accrued expenses and liabilities 8 5 (8 ) Cash acquired in merger 293 — — Other assets acquired from merger net of other assets 17 — — Merger costs capitalized into purchase price (8 ) — — Mark-to-market of merged debt 26 — Net cash provided by (used in) operating activities (639 ) 675 (256 ) Cash flows from financing activities Repurchases of common stock (12 ) (47 ) (153 ) Stockholder distributions (502 ) (340 ) (342 ) Borrowings under financing arrangements (3) 5,006 3,379 4,794 Repayments of financing arrangements (3) (3,639 ) (3,542 ) (4,015 ) Deferred financing costs and discount paid (28 ) (40 ) (26 ) Net cash provided by (used in) financing activities 825 (590 ) 258 Total increase (decrease) in cash 186 85 2 Cash and foreign currency at beginning of year 191 106 104 Cash and foreign currency at end of year $ 377 $ 191 $ 106 Supplemental disclosure Non-cash purchases of investments $ (999 ) $ (238 ) $ (138 ) Non-cash sales of investments $ 999 $ 238 $ 138 Local and excise taxes paid $ 9 $ 7 $ 9 (1) Excludes $7,227 of cost of investments acquired from the 2021 Merger. (2) Excludes $11 of unrealized depreciation on unfunded commitments acquired from the 2021 Merger. (3) Excludes $3,794 of debt assumed from the 2021 Merger. See Note 9 for a discussion of the Company’s financing arrangements. During the years ended December 31, 2021, 2020 and 2019, the Company paid $194, $156 and $171, respectively, in interest expense on the credit facilities and unsecured notes. Supplemental disclosure of non-cash operating and financing activities: In connection with the 2021 Merger, the Company issued common stock of $3,650 and acquired investments at cost of $7,227 and other assets of $221 and assumed debt of $3,794 and other liabilities of $297. See notes to consolidated financial statements. 78 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Senior Secured Loans—First Lien—126.3% 3Pillar Global Inc (i)(k)(l) Software & Services L+600 0.8% 11/23/27 $ 96.3 $ 95.3 $ 95.3 3Pillar Global Inc (x) Software & Services L+600 0.8% 11/23/26 9.2 9.2 9.1 3Pillar Global Inc (x) Software & Services L+600 0.8% 11/23/27 30.6 30.6 30.2 5 Arch Income Fund 2 LLC (q)(r)(w)(y)(z) Diversified Financials 9.0% 11/18/23 111.1 81.3 78.3 Accuride Corp (aa)(l) Capital Goods L+525 1.0% 11/17/23 9.0 8.1 8.7 Advanced Dermatology & Cosmetic Surgery (m)(t)(v) Health Care Equipment & Services L+625 1.0% 5/7/27 44.8 42.9 45.0 Advanced Dermatology & Cosmetic Surgery (x) Health Care Equipment & Services L+625 1.0% 5/7/26 3.6 3.6 3.6 Advanced Dermatology & Cosmetic Surgery (x) Health Care Equipment & Services L+625 1.0% 5/7/27 4.2 4.2 4.2 Advania Sverige AB (v)(w) Software & Services SR+610, 0.0% PIK (3.3% Max PIK) 0.0% 4/28/28 SEK 629.4 67.9 68.9 Advania Sverige AB (v)(w) Software & Services R+610, 0.0% PIK (3.3% Max PIK) 0.0% 4/28/28 ISK 1,345.8 10.0 10.3 Advania Sverige AB (w)(x) Software & Services SR+610, 0.0% PIK (3.3% Max PIK) 0.0% 4/28/28 SEK 304.1 37.5 37.2 Affordable Care Inc (ac)(v) Health Care Equipment & Services L+550, 0.0% PIK (1.3% Max PIK) 0.8% 8/2/28 $ 60.4 59.9 60.1 Affordable Care Inc (ac)(x) Health Care Equipment & Services L+550, 0.0% PIK (1.3% Max PIK) 0.8% 8/2/27 12.8 12.8 12.8 Affordable Care Inc (ac)(x) Health Care Equipment & Services L+550, 0.0% PIK (1.3% Max PIK) 0.8% 8/2/28 43.1 43.1 42.9 Alacrity Solutions Group LLC (v) Insurance L+525 0.8% 12/22/27 1.1 0.9 1.1 Alacrity Solutions Group LLC (v) Insurance L+525 0.8% 12/22/28 69.2 68.2 68.2 Alacrity Solutions Group LLC (x) Insurance L+525 0.8% 12/22/27 9.7 9.7 9.5 Alera Group Intermediate Holdings Inc (v) Insurance L+550 0.8% 10/2/28 21.4 21.2 21.2 Alera Group Intermediate Holdings Inc (x) Insurance L+550 0.8% 10/2/28 22.9 22.9 22.7 American Vision Partners (i)(v) Health Care Equipment & Services L+575 0.8% 9/30/27 94.7 93.8 94.3 American Vision Partners (x) Health Care Equipment & Services L+575 0.8% 9/30/26 7.8 7.8 7.7 American Vision Partners (x) Health Care Equipment & Services L+575 0.8% 9/30/27 38.9 38.9 38.7 Amtek Global Technology Pte Ltd (ad)(v)(w)(y)(z) Automobiles & Components E+500 PIK (E+500 Max PIK) 0.0% 4/4/24 € 57.2 68.7 34.8 Arcos LLC/VA (m) Software & Services L+575 1.0% 3/31/28 $ 12.5 12.3 12.4 Arcos LLC/VA (x) Software & Services L+575 1.0% 4/20/27 4.5 4.5 4.5 Ardonagh Group Ltd (v)(w) Insurance SA+675 0.8% 7/14/26 £ 0.8 1.0 1.1 Ardonagh Group Ltd (v)(w) Insurance L+550 0.8% 7/14/26 $ 14.1 13.8 13.9 Ardonagh Group Ltd (w)(x) Insurance L+550 1.0% 7/14/26 £ 16.7 22.8 22.1 Arrotex Australia Group Pty Ltd (v)(w) Pharmaceuticals, Biotechnology & Life Sciences B+525 1.0% 7/10/24 A$ 42.6 30.4 30.9 Arrotex Australia Group Pty Ltd (v)(w) Pharmaceuticals, Biotechnology & Life Sciences B+525 1.0% 7/10/24 3.1 2.2 2.3 Aspect Software Inc (v) Software & Services 8.0% PIK (8.0% Max PIK) 7/14/22 $ 0.3 0.2 0.3 ATX Networks Corp (ad)(s)(v)(w) Capital Goods 7.5% PIK (7.5% Max PIK) 1.0% 8/9/26 46.8 46.8 46.8 AxiomSL Ltd (f)(m)(t)(v) Software & Services L+600 1.0% 12/3/27 35.1 34.4 34.4 AxiomSL Ltd (x) Software & Services L+600 1.0% 12/3/25 2.5 2.4 2.4 AxiomSL Ltd (x) Software & Services L+600 1.0% 12/3/27 2.3 2.3 2.2 Barbri Inc (f)(k)(l)(m)(t)(v) Consumer Services L+575 0.8% 4/28/28 92.4 88.1 92.4 Barbri Inc (k)(l) Consumer Services L+575 0.8% 4/30/28 35.1 34.8 34.8 Barbri Inc (x) Consumer Services L+575 0.8% 4/30/28 14.8 14.8 14.6 Belk Inc (aa)(ac)(v) Retailing L+750 1.0% 7/31/25 21.9 21.7 21.9 Belk Inc (aa)(ac)(v) Retailing 5.0%, 8.0% PIK (8.0% Max PIK) 7/31/25 66.7 40.2 49.2 BGB Group LLC (f)(i)(k)(l)(m)(t)(v) Media & Entertainment L+575 1.0% 8/16/27 118.6 117.5 118.0 BGB Group LLC (x) Media & Entertainment L+575 1.0% 8/16/27 19.9 19.9 19.8 See notes to consolidated financial statements. 79 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Borden (New Dairy Opco) (ac)(v) Food, Beverage & Tobacco L+700, 0.0% PIK (1.0% Max PIK) 1.0% 7/20/25 $ 42.0 $ 40.2 $ 42.0 Borden (New Dairy Opco) (ac)(v) Food, Beverage & Tobacco L+250 1.0% 7/20/25 9.0 8.4 9.0 Borden Dairy Co (ac)(v)(y)(z) Food, Beverage & Tobacco L+825 1.0% 7/6/23 65.0 25.4 — Bowery Farming Inc (v) Food, Beverage & Tobacco L+1,000 1.0% 4/30/26 75.0 74.3 69.3 Cimarron Energy Inc (v)(y)(z) Energy L+900 1.0% 12/31/24 7.5 5.5 3.6 Clarience Technologies LLC (f)(i)(k)(m)(s)(v) Capital Goods L+625 1.0% 12/14/26 268.0 257.2 270.7 Clarience Technologies LLC (v) Capital Goods L+625 1.0% 12/31/26 18.1 17.6 18.4 Clarience Technologies LLC (x) Capital Goods L+625 1.0% 12/13/24 25.4 25.2 25.4 Clarience Technologies LLC (x) Capital Goods L+625 1.0% 12/31/26 10.8 10.8 11.1 Constellis Holdings LLC (ac)(v) Capital Goods L+750 1.0% 3/27/24 15.0 14.0 15.0 Corsearch Intermediate Inc (m)(v) Software & Services L+550 1.0% 4/19/28 30.1 28.3 30.1 Corsearch Intermediate Inc (x) Software & Services L+550 1.0% 4/19/28 4.4 4.4 4.4 CSafe Global (f)(i)(k)(l)(m)(t)(v) Capital Goods L+625 0.8% 12/23/27 188.7 182.5 188.7 CSafe Global (v) Capital Goods L+625 0.8% 12/23/27 £ 27.4 36.3 37.1 CSafe Global (v) Capital Goods L+625 0.8% 8/13/28 $ 11.9 11.9 11.9 CSafe Global (x) Capital Goods L+625 0.8% 12/23/26 34.9 34.9 34.6 Dental Care Alliance Inc (f)(k)(m)(t)(v) Health Care Equipment & Services L+625 0.8% 3/12/27 90.3 86.1 90.4 Dental Care Alliance Inc (v) Health Care Equipment & Services L+625 0.8% 3/12/27 8.7 8.7 8.7 Dental Care Alliance Inc (x) Health Care Equipment & Services L+625 0.8% 3/12/27 13.6 13.6 13.7 Element Materials Technology Group US Holdings Inc (aa)(v)(w) Capital Goods L+350 1.0% 6/28/24 1.9 1.9 1.9 Encora Digital Inc (v) Software & Services L+550, 0.0% PIK (2.4% Max PIK) 0.5% 12/13/28 81.3 79.7 79.7 Encora Digital Inc (x) Software & Services L+550 0.5% 12/13/28 19.6 19.4 19.2 Entertainment Benefits Group LLC (v) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/24 0.4 0.4 0.4 Entertainment Benefits Group LLC (f)(k)(l)(m)(v) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/25 64.0 59.1 61.7 Entertainment Benefits Group LLC (x) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/24 10.2 9.6 9.9 Fairway Group Holdings Corp (ac)(v)(y)(z) Food & Staples Retailing 12.0% PIK (12.0% Max PIK) 11/27/23 11.7 1.0 0.7 Fairway Group Holdings Corp (ac)(v)(y)(z) Food & Staples Retailing 10.0% PIK (10.0% Max PIK) 11/28/23 7.6 — — Follett Software Co (f)(k)(l)(t) Software & Services L+575 0.8% 8/31/28 74.4 73.7 74.1 Follett Software Co (x) Software & Services L+575 0.8% 8/31/27 9.9 9.9 9.8 Foundation Consumer Brands LLC (m)(v) Pharmaceuticals, Biotechnology & Life Sciences L+638 1.0% 2/12/27 97.1 93.0 98.0 Foundation Consumer Brands LLC (x) Pharmaceuticals, Biotechnology & Life Sciences L+638 1.0% 2/12/27 6.6 6.6 6.6 Foundation Risk Partners Corp (v) Insurance L+575 0.8% 10/29/28 74.3 73.2 73.3 Foundation Risk Partners Corp (x) Insurance L+575 0.8% 10/29/27 7.0 6.9 6.9 Foundation Risk Partners Corp (x) Insurance L+575 0.8% 10/29/28 6.2 6.2 6.1 Frontline Technologies Group LLC (i)(m)(v) Software & Services L+525 1.0% 9/18/23 78.7 78.1 78.7 Frontline Technologies Group LLC (s)(v) Software & Services L+525 1.0% 9/18/23 75.6 71.7 76.2 Galaxy Universal LLC (v) Consumer Durables & Apparel L+575 1.0% 11/1/26 88.9 88.9 88.9 Galaxy Universal LLC (v) Consumer Durables & Apparel 5.0% 2/4/22 0.9 0.9 0.9 Galaxy Universal LLC (x) Consumer Durables & Apparel 5.0% 2/4/22 7.7 7.7 7.7 Galway Partners Holdings LLC (k)(l)(t)(v) Insurance L+525, 0.0% PIK (1.3% Max PIK) 0.8% 9/29/28 128.1 125.5 126.0 Galway Partners Holdings LLC (x) Insurance L+525, 0.0% PIK (1.3% Max PIK) 0.8% 9/30/27 12.0 11.7 11.8 Galway Partners Holdings LLC (x) Insurance L+525, 0.0% PIK (1.3% Max PIK) 0.8% 9/29/28 22.4 22.4 22.0 See notes to consolidated financial statements. 80 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) General Datatech LP (f)(k)(l)(m)(t)(v) Software & Services L+625 1.0% 6/18/27 $ 169.1 $ 167.5 $ 166.5 Greystone Equity Member Corp (v)(w) Diversified Financials L+725 3.8% 4/1/26 194.8 182.7 192.6 Heniff Transportation Systems LLC (v) Transportation L+575 1.0% 12/3/24 5.9 5.6 5.6 Heniff Transportation Systems LLC (f)(i)(k)(l)(m)(v) Transportation L+575 1.0% 12/3/26 137.7 130.5 128.7 Heniff Transportation Systems LLC (v) Transportation L+625 1.0% 12/3/26 19.4 18.6 18.5 Heniff Transportation Systems LLC (x) Transportation L+575 1.0% 12/3/24 11.9 11.9 11.1 hibu Inc (f)(k)(l)(m)(t)(v) Commercial & Professional Services L+625 1.0% 5/4/27 101.6 96.6 104.6 Higginbotham Insurance Agency Inc (v) Insurance L+550 0.8% 11/25/26 25.3 24.6 25.8 Higginbotham Insurance Agency Inc (v) Insurance L+525 0.8% 11/25/26 4.5 4.3 4.6 Higginbotham Insurance Agency Inc (x) Insurance L+525 0.8% 11/25/26 32.6 32.6 33.3 HM Dunn Co Inc (ad)(v) Capital Goods L+600 1.0% 6/30/26 33.6 33.6 33.6 HM Dunn Co Inc (ad)(v) Capital Goods L+600 1.0% 6/30/26 2.0 2.0 2.0 Hudson Technologies Co (v)(w) Commercial & Professional Services L+1,025 1.0% 10/10/23 79.9 72.3 82.1 Individual FoodService (v) Capital Goods L+625 1.0% 11/22/24 0.2 0.2 0.2 Individual FoodService (m)(s)(v) Capital Goods L+625 1.0% 11/22/25 90.8 86.5 91.7 Individual FoodService (x) Capital Goods L+625 1.0% 11/22/24 4.5 4.5 4.5 Individual FoodService (x) Capital Goods L+625 0.0% 11/22/25 5.6 5.6 5.7 Industria Chimica Emiliana Srl (v)(w) Pharmaceuticals, Biotechnology & Life Sciences E+725 0.0% 9/27/26 € 88.8 101.3 103.9 Industry City TI Lessor LP (s)(v) Consumer Services 10.8%, 1.0% PIK (1.0% Max PIK) 6/30/26 $ 29.9 30.0 32.5 Insight Global LLC (v) Commercial & Professional Services L+600 0.8% 9/22/27 10.5 10.5 10.4 Insight Global LLC (i)(v) Commercial & Professional Services L+600 0.8% 9/22/28 230.0 227.8 227.2 Insight Global LLC (x) Commercial & Professional Services L+600 0.8% 9/22/27 10.5 10.5 10.4 Insight Global LLC (x) Commercial & Professional Services L+600 0.8% 11/15/28 20.0 20.0 19.8 Integrity Marketing Group LLC (x) Insurance L+550 0.8% 8/27/25 145.3 145.3 143.2 J S Held LLC (f)(i)(m)(s)(v) Insurance L+550 1.0% 7/1/25 165.4 159.8 167.1 J S Held LLC (v) Insurance L+550 1.0% 7/1/25 2.8 2.6 2.8 J S Held LLC (x) Insurance L+550 1.0% 7/1/25 16.7 16.7 16.9 J S Held LLC (x) Insurance L+550 1.0% 7/1/25 11.3 11.3 11.3 Jarrow Formulas Inc (f)(i)(k)(l)(m)(s)(t)(v) Household & Personal Products L+625 1.0% 11/30/26 186.6 177.1 190.3 Karman Space Inc (m)(v) Capital Goods L+675 1.0% 12/21/25 92.4 88.8 94.2 Karman Space Inc (v) Capital Goods L+675 1.0% 12/21/25 4.4 4.2 4.4 Karman Space Inc (x) Capital Goods L+675 1.0% 12/21/25 1.1 1.1 1.1 KBP Investments LLC (v) Food & Staples Retailing L+500 0.8% 5/26/27 23.6 22.9 23.3 KBP Investments LLC (x) Food & Staples Retailing L+500 0.8% 5/26/27 3.9 3.9 3.8 Kellermeyer Bergensons Services LLC (f)(i)(k)(l)(m)(s)(t)(v) Commercial & Professional Services L+575 1.0% 11/7/26 341.7 329.6 342.8 Kellermeyer Bergensons Services LLC (x) Commercial & Professional Services L+575 1.0% 11/7/26 31.0 31.0 31.1 Lakefield Veterinary Group (f)(i)(v) Consumer Services L+550 0.8% 11/23/28 115.6 114.5 114.6 Lakefield Veterinary Group (x) Consumer Services L+550 0.8% 11/23/28 56.3 56.3 55.7 Lakeview Farms Inc (l)(m)(v) Food, Beverage & Tobacco L+625 1.0% 6/10/27 77.0 75.1 76.5 Lakeview Farms Inc (v) Food, Beverage & Tobacco L+625 1.0% 6/10/27 3.4 3.4 3.4 Lakeview Farms Inc (x) Food, Beverage & Tobacco L+625 1.0% 6/10/27 10.8 10.8 10.8 Lakeview Farms Inc (x) Food, Beverage & Tobacco L+625 1.0% 6/10/27 3.4 3.4 3.4 Lexitas Inc (i)(k)(l)(m)(v) Commercial & Professional Services L+600 1.0% 11/14/25 106.8 103.3 107.8 See notes to consolidated financial statements. 81 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Lexitas Inc (x) Commercial & Professional Services L+600 1.0% 11/14/25 $ 10.3 $ 10.3 $ 10.4 Lexitas Inc (x) Commercial & Professional Services L+600 1.0% 11/14/25 5.4 5.4 5.4 Lionbridge Technologies Inc (f)(k)(s)(t) Consumer Services L+700 1.0% 12/29/25 68.9 64.0 70.3 Lipari Foods LLC (f)(m)(s)(v) Food & Staples Retailing L+575 1.0% 1/6/25 272.0 261.2 272.0 Lloyd’s Register Quality Assurance Ltd (w)(x) Consumer Services SA+600, 0.0% PIK (6.3% Max PIK) 0.0% 12/2/28 £ 15.0 20.0 19.7 Matchesfashion Ltd (v)(w) Consumer Durables & Apparel L+463, 3.0% PIK (3.0% Max PIK) 0.0% 10/11/24 $ 12.9 12.4 8.2 MB2 Dental Solutions LLC (k)(l)(m)(t)(v) Health Care Equipment & Services L+600 1.0% 1/29/27 231.0 220.3 231.7 MB2 Dental Solutions LLC (x) Health Care Equipment & Services L+600 1.0% 1/29/27 56.7 56.7 56.9 Medallia Inc (v) Software & Services L+675 PIK (L+675 Max PIK) 0.8% 10/29/28 147.9 146.5 146.5 Med-Metrix (v) Software & Services L+600 1.0% 9/15/27 62.4 61.8 61.9 Med-Metrix (x) Software & Services L+600 1.0% 9/15/27 31.3 31.3 31.0 Med-Metrix (x) Software & Services L+600 1.0% 9/15/27 7.8 7.8 7.8 Miami Beach Medical Group LLC (k)(l)(m)(t)(v) Health Care Equipment & Services L+650 1.0% 12/14/26 180.6 171.4 178.6 Micronics Filtration Holdings Inc (ac)(v) Capital Goods 7.5% PIK (7.5% Max PIK) 3/29/24 51.4 46.0 51.0 Monitronics International Inc (aa)(f)(v) Commercial & Professional Services L+650 1.3% 3/29/24 18.8 17.2 17.7 Monitronics International Inc (v) Commercial & Professional Services L+500 1.5% 7/3/24 47.3 44.8 45.1 Monitronics International Inc (x) Commercial & Professional Services L+500 1.5% 7/3/24 22.7 22.7 21.6 Motion Recruitment Partners LLC (v) Commercial & Professional Services L+650 1.0% 12/19/25 4.8 4.5 4.7 Motion Recruitment Partners LLC (f)(i)(m)(t)(v) Commercial & Professional Services L+650 1.0% 12/22/25 119.9 115.5 118.4 Motion Recruitment Partners LLC (x) Commercial & Professional Services L+650 1.0% 12/19/25 59.6 59.6 58.9 NBG Home (v) Consumer Durables & Apparel L+550 1.0% 4/26/24 67.7 67.6 53.3 NCI Inc (v) Software & Services L+750, 0.0% PIK (2.5% Max PIK) 1.0% 8/15/24 78.8 77.7 72.0 Net Documents (v) Software & Services L+650 1.0% 6/30/27 24.6 24.4 24.3 Net Documents (v) Software & Services L+675 1.0% 6/30/27 0.9 0.9 0.9 Net Documents (x) Software & Services L+675 1.0% 6/30/27 2.1 2.1 2.0 Net Documents (x) Software & Services L+675 1.0% 6/30/27 7.4 7.3 7.3 New Era Technology Inc (i)(l)(m)(t)(v) Software & Services L+625 1.0% 10/31/26 82.5 78.6 82.1 New Era Technology Inc (v) Software & Services L+625 1.0% 10/31/26 1.6 1.5 1.6 New Era Technology Inc (x) Software & Services L+625 1.0% 10/31/26 13.8 13.8 13.7 New Era Technology Inc (x) Software & Services L+625 1.0% 10/31/26 3.1 3.1 3.1 Omnimax International Inc (f)(i)(k)(l)(m)(v) Capital Goods L+725 1.0% 10/8/26 218.5 209.2 217.0 One Call Care Management Inc (aa)(ad)(v) Health Care Equipment & Services L+550 0.8% 4/22/27 5.0 4.7 5.0 Oxford Global Resources LLC (f)(k)(l)(m)(t) Commercial & Professional Services L+600 1.0% 8/17/27 88.4 87.6 88.2 Oxford Global Resources LLC (v) Commercial & Professional Services L+600 1.0% 8/17/27 4.0 4.0 4.0 Oxford Global Resources LLC (x) Commercial & Professional Services L+600 1.0% 8/17/27 15.3 15.3 15.3 Oxford Global Resources LLC (x) Commercial & Professional Services L+600 1.0% 8/17/27 3.7 3.7 3.7 P2 Energy Solutions Inc. (v) Software & Services L+675 1.0% 1/31/25 4.6 4.3 4.2 P2 Energy Solutions Inc. (f)(i)(k)(m)(s)(t)(v) Software & Services L+675 1.0% 2/2/26 249.1 232.7 232.0 P2 Energy Solutions Inc. (x) Software & Services L+675 1.0% 1/31/25 10.6 10.6 9.9 Parata Systems (f)(m)(v) Health Care Equipment & Services L+575 1.0% 6/30/27 73.9 73.4 74.1 Parata Systems (x) Health Care Equipment & Services L+575 1.0% 6/30/27 22.0 22.0 22.1 Parata Systems (x) Health Care Equipment & Services L+575 1.0% 6/30/27 5.5 5.5 5.5 Parts Town LLC (v) Retailing L+550 0.8% 11/1/28 87.4 86.6 86.6 See notes to consolidated financial statements. 82 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Parts Town LLC (x) Retailing L+550 0.8% 11/1/28 $ 63.9 $ 63.9 $ 63.3 PartsSource Inc (v) Health Care Equipment & Services L+575 0.8% 8/23/28 65.8 65.0 64.7 PartsSource Inc (x) Health Care Equipment & Services L+575 0.8% 8/24/26 4.3 4.2 4.2 PartsSource Inc (x) Health Care Equipment & Services L+575 0.8% 8/23/28 22.9 22.6 22.5 Peraton Corp (aa)(v) Capital Goods L+375 0.8% 2/1/28 9.0 8.7 9.0 Performance Health Holdings Inc (f)(i)(v) Health Care Equipment & Services L+600 1.0% 7/12/27 120.7 119.5 120.2 Petroplex Acidizing Inc (ac)(v)(y)(z) Energy L+825, 1.8% PIK (1.8% Max PIK) 1.0% 6/30/23 27.0 22.0 9.7 Polyconcept North America Inc (aa)(v) Household & Personal Products L+450 PIK (L+450 Max PIK) 1.0% 8/16/23 22.8 22.6 22.7 Premium Credit Ltd (v)(w) Diversified Financials L+650 0.0% 1/16/26 £ 55.9 72.6 75.7 Production Resource Group LLC (ad)(v) Media & Entertainment L+500, 3.1% PIK (3.1% Max PIK) 1.0% 8/21/24 $ 64.4 60.2 64.4 Production Resource Group LLC (ad)(v) Media & Entertainment L+300, 5.5% PIK (5.5% Max PIK) 0.3% 8/21/24 133.3 124.9 133.3 Production Resource Group LLC (ad)(v) Media & Entertainment L+550 PIK (L+550 Max PIK) 1.0% 8/21/24 0.1 0.1 0.1 Production Resource Group LLC (ad)(v) Media & Entertainment L+750, 0.0% PIK (3.1% Max PIK) 1.0% 8/21/24 20.2 20.1 20.2 Production Resource Group LLC (ad)(x) Media & Entertainment L+750, 0.0% PIK (3.1% Max PIK) 1.0% 8/21/24 10.1 10.1 10.1 Propulsion Acquisition LLC (f)(l)(s)(t)(v) Capital Goods L+700 1.0% 7/13/24 60.5 56.8 61.1 PSKW LLC (i)(l)(s)(t)(v) Health Care Equipment & Services L+625 1.0% 3/9/26 294.7 283.5 294.7 Qdoba Restaurant Corp (aa)(m)(v) Consumer Services L+700 1.0% 3/21/25 10.9 10.8 10.8 Reliant Rehab Hospital Cincinnati LLC (f)(i)(l)(m)(s)(v) Health Care Equipment & Services L+625 0.0% 2/28/26 126.8 120.7 124.1 Revere Superior Holdings Inc (m)(v) Software & Services L+575 1.0% 9/30/26 23.0 22.4 23.3 Revere Superior Holdings Inc (x) Software & Services L+575 1.0% 9/30/26 3.2 3.2 3.2 Revere Superior Holdings, Inc (v) Software & Services L+575 1.0% 9/30/26 3.3 3.3 3.4 Revere Superior Holdings, Inc (x) Software & Services L+575 1.0% 9/30/26 7.4 7.4 7.5 Rise Baking Company (v) Food, Beverage & Tobacco L+625 1.0% 8/13/27 2.8 2.6 2.7 Rise Baking Company (l)(m) Food, Beverage & Tobacco L+625 1.0% 8/13/27 28.8 28.1 28.2 Rise Baking Company (x) Food, Beverage & Tobacco L+625 1.0% 8/13/27 2.5 2.5 2.5 RSC Insurance Brokerage Inc (f)(i)(k)(l)(m)(s)(v) Insurance L+550 0.8% 10/30/26 277.8 268.1 280.6 RSC Insurance Brokerage Inc (v) Insurance L+550 0.8% 10/30/26 4.1 4.0 4.1 RSC Insurance Brokerage Inc (x) Insurance L+550 0.8% 10/30/26 16.1 16.1 16.3 RSC Insurance Brokerage Inc (x) Insurance L+550 0.8% 10/30/26 3.6 3.6 3.6 Safe-Guard Products International LLC (f)(m)(t) Diversified Financials L+500 0.5% 1/27/27 45.1 42.5 45.1 SAMBA Safety Inc (x) Software & Services L+575 1.0% 9/1/27 2.4 2.4 2.4 SAMBA Safety Inc (x) Software & Services L+575 1.0% 9/1/27 6.1 6.1 6.0 SavATree LLC (v) Consumer Services L+550 0.8% 10/12/28 1.9 1.8 1.9 SavATree LLC (x) Consumer Services L+550 0.8% 10/12/28 7.6 7.6 7.6 SavATree LLC (x) Consumer Services L+550 0.8% 10/12/28 6.3 6.3 6.3 Sequa Corp (aa)(m)(v) Capital Goods L+675, 0.0% PIK (1.0% Max PIK) 1.0% 11/28/23 16.0 15.4 16.2 Sequa Corp (v) Capital Goods L+900, 0.0% PIK (9.5% Max PIK) 1.0% 7/31/25 16.4 16.0 17.2 Sequel Youth & Family Services LLC (v)(y)(z) Health Care Equipment & Services L+800 1.0% 9/1/23 170.0 106.4 51.6 Sequel Youth & Family Services LLC (v)(y)(z) Health Care Equipment & Services L+700 1.0% 9/1/23 29.2 19.3 8.9 Sequel Youth & Family Services LLC (v) Health Care Equipment & Services L+700 1.0% 9/1/23 36.0 36.0 36.0 Sequel Youth & Family Services LLC (x) Health Care Equipment & Services L+700 1.0% 9/1/23 6.0 6.0 6.0 SitusAMC Holdings Corp (k)(l)(v) Real Estate L+575 0.8% 12/22/27 95.4 94.5 94.4 Sorenson Communications LLC (aa)(ac)(f)(k)(t)(v) Telecommunication Services L+550 0.8% 3/17/26 59.9 56.9 60.1 See notes to consolidated financial statements. 83 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Source Code LLC (k)(l)(t) Software & Services L+650 1.0% 6/30/27 $ 53.3 $ 52.3 $ 52.2 Source Code LLC (x) Software & Services L+650 1.0% 6/30/27 15.3 15.0 15.0 Spins LLC (m)(s)(t)(v) Software & Services L+550 1.0% 1/20/27 60.7 57.3 61.3 Spins LLC (x) Software & Services L+550 1.0% 1/20/27 7.9 7.9 7.9 Staples Canada (v)(w) Retailing C+700 1.0% 9/12/24 C$ 35.8 28.0 29.1 Summit Interconnect Inc (f)(k)(l)(t)(v) Capital Goods L+600 1.0% 9/22/28 $ 107.9 106.8 106.9 Summit Interconnect Inc (x) Capital Goods L+600 1.0% 9/22/28 48.7 48.7 48.2 Sungard Availability Services Capital Inc (ac)(v) Software & Services SF+375, 3.8% PIK (3.8% Max PIK) 1.0% 7/1/24 5.8 5.7 6.0 Sweeping Corp of America Inc (m)(v) Commercial & Professional Services L+575 1.0% 11/30/26 55.8 53.3 56.3 Sweeping Corp of America Inc (v) Commercial & Professional Services L+575 1.0% 11/30/26 1.8 1.8 1.8 Sweeping Corp of America Inc (x) Commercial & Professional Services L+575 1.0% 11/30/26 17.2 17.2 17.3 Sweeping Corp of America Inc (x) Commercial & Professional Services L+575 1.0% 11/30/26 3.9 3.9 3.9 Tangoe LLC (f)(i)(m)(s)(v) Software & Services L+650 1.0% 11/28/25 190.2 171.5 147.2 ThermaSys Corp (ac)(v)(y)(z) Capital Goods L+1,100 PIK (L+1,100 Max PIK) 1.0% 1/1/24 8.5 8.3 3.5 ThreeSixty Group (m)(v) Retailing L+500, 2.5% PIK (2.5% Max PIK) 1.5% 3/1/23 48.5 48.4 47.7 ThreeSixty Group (m)(v) Retailing L+500, 2.5% PIK (2.5% Max PIK) 1.5% 3/1/23 48.3 48.1 47.4 Time Manufacturing Co (v) Capital Goods L+650 0.8% 12/1/27 45.8 44.8 44.8 Time Manufacturing Co (v) Capital Goods L+650 0.8% 12/1/27 5.3 5.3 5.3 Time Manufacturing Co (x) Capital Goods L+650 0.8% 12/1/27 13.7 13.7 13.6 Time Manufacturing Co (x) Capital Goods L+650 0.8% 12/1/27 4.5 4.5 4.5 Time Manufacturing Co (x) Capital Goods E+650 0.8% 12/1/27 € 15.0 17.0 17.2 Transaction Services Group Ltd (v)(w) Software & Services L+650 0.0% 10/15/26 £ 13.9 17.7 18.3 Transaction Services Group Ltd (v)(w) Software & Services B+650 0.0% 10/15/26 A$ 80.3 55.7 57.0 Transaction Services Group Ltd (v)(w) Software & Services L+650 0.0% 10/15/26 $ 126.2 122.2 123.1 Warren Resources Inc (ad)(v) Energy L+900, 1.0% PIK (1.0% Max PIK) 1.0% 5/22/24 18.7 17.4 18.7 Wealth Enhancement Group LLC (v)(w) Diversified Financials L+625 1.0% 10/4/27 15.1 15.0 15.1 Wealth Enhancement Group LLC (v)(w) Diversified Financials L+625 1.0% 10/4/27 0.7 0.7 0.7 Wealth Enhancement Group LLC (w)(x) Diversified Financials L+625 1.0% 10/4/27 13.2 13.2 13.2 Wealth Enhancement Group LLC (w)(x) Diversified Financials L+625 1.0% 10/4/27 1.0 1.0 1.0 Woolpert Inc (f)(k)(l)(m)(t)(v) Capital Goods L+600 1.0% 4/5/28 139.2 132.5 141.2 Woolpert Inc (x) Capital Goods L+600 1.0% 4/5/28 25.6 25.6 25.9 Total Senior Secured Loans—First Lien 11,165.5 11,236.1 Unfunded Loan Commitments (1,470.4 ) (1,470.4 ) Net Senior Secured Loans—First Lien 9,695.1 9,765.7 Senior Secured Loans—Second Lien—20.1% Advanced Lighting Technologies Inc (v)(y)(z) Materials L+600 1.0% 3/16/27 11.3 10.5 6.4 Ammeraal Beltech Holding BV (f)(s)(v)(w) Capital Goods L+775 0.0% 9/12/26 44.9 40.8 44.3 Amtek Global Technology Pte Ltd (ad)(v)(w)(y)(z) Automobiles & Components E+500 PIK (E+500 Max PIK) 0.0% 4/4/24 € 34.7 39.1 — Apex Group Limited (v)(w) Diversified Financials L+675 0.5% 7/27/29 $ 8.0 7.9 8.0 See notes to consolidated financial statements. 84 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Belk Inc (ac)(v)(y)(z) Retailing 10.0% PIK (10.0% Max PIK) 7/31/25 $ 25.5 $ 4.2 $ 6.7 Byrider Finance LLC (u)(v) Automobiles & Components L+1,000, 0.5% PIK (0.5% Max PIK) 1.3% 6/7/22 54.3 52.8 54.4 Constellis Holdings LLC (ac)(f)(v) Capital Goods L+1,100, 0.0% PIK (10.0% Max PIK) 1.0% 3/27/25 13.5 12.5 12.0 Cubic Corp (v) Software & Services L+763 0.8% 5/25/29 54.8 51.8 55.6 Datatel Inc (v) Software & Services L+800 1.0% 10/9/28 179.2 170.1 184.6 Fairway Group Holdings Corp (ac)(v)(y)(z) Food & Staples Retailing 11.0% PIK (11.0% Max PIK) 2/24/24 6.9 — — Galaxy Universal LLC (v) Consumer Durables & Apparel L+500 1.0% 11/1/26 36.2 35.8 35.8 Misys Ltd (aa)(v)(w) Software & Services L+725 1.0% 6/13/25 21.8 20.5 21.8 NBG Home (v)(y)(z) Consumer Durables & Apparel L+1,275 PIK (L+1,275 Max PIK) 1.0% 9/30/24 31.4 28.2 8.5 OEConnection LLC (f)(v) Software & Services L+825 0.0% 9/25/27 27.0 26.6 26.5 OEConnection LLC (v) Software & Services L+700 0.5% 9/25/27 49.0 49.0 48.1 Peraton Corp (s)(v) Capital Goods L+800 1.0% 2/1/29 175.0 165.3 178.5 Peraton Corp (v) Capital Goods L+775 0.8% 2/1/29 156.4 149.9 158.7 Petrochoice Holdings Inc (v) Capital Goods L+875 1.0% 8/21/23 65.0 64.4 57.6 Polyconcept North America Inc (v) Household & Personal Products 11.0% PIK (11.0% Max PIK) 2/16/24 10.0 9.9 10.0 Pure Fishing Inc (f)(m)(v) Consumer Durables & Apparel L+838 1.0% 12/21/26 177.0 170.6 168.1 Sequa Corp (aa)(m)(v) Capital Goods L+1,075, 0.0% PIK (6.8% Max PIK) 1.0% 4/28/24 5.9 5.7 5.9 SIRVA Worldwide Inc (aa)(v) Commercial & Professional Services L+950 0.0% 8/3/26 6.5 5.4 5.7 Solera LLC (aa)(v) Software & Services L+800 1.0% 6/4/29 312.4 295.8 317.6 Sungard Availability Services Capital Inc (ac)(v)(y)(z) Software & Services SF+400, 2.8% PIK (2.8% Max PIK) 1.0% 8/1/24 14.6 13.7 8.3 Valeo Foods Group Ltd (v)(w) Food, Beverage & Tobacco SA+800 0.0% 10/1/29 £ 9.3 12.3 12.2 Valeo Foods Group Ltd (w)(x) Food, Beverage & Tobacco E+750 0.0% 10/1/29 € 6.2 7.2 6.8 Vantage Specialty Chemicals Inc (aa)(v) Materials L+825 1.0% 10/27/25 $ 0.8 0.7 0.7 Wittur Holding GmbH (v)(w) Capital Goods E+850, 0.5% PIK (0.5% Max PIK) 0.0% 9/23/27 € 112.8 120.9 120.9 Total Senior Secured Loans—Second Lien 1,571.6 1,563.7 Unfunded Loan Commitments (7.2 ) (7.2 ) Net Senior Secured Loans—Second Lien 1,564.4 1,556.5 Other Senior Secured Debt—1.6% Angelica Corp (h)(y)(z) Health Care Equipment & Services 10.0% PIK (10.0% Max PIK) 12/30/22 $ 53.4 42.3 5.2 JW Aluminum Co (aa)(ad)(s)(v) Materials 10.3% 6/1/26 76.5 75.5 81.0 One Call Care Management Inc (ad)(v) Health Care Equipment & Services 8.5% PIK (8.5% Max PIK) 11/1/28 23.5 21.6 23.5 TruckPro LLC (aa)(v) Capital Goods 11.0% 10/15/24 9.2 9.2 10.0 Total Other Senior Secured Debt 148.6 119.7 Subordinated Debt—1.4% Ardonagh Group Ltd (aa)(v)(w) Insurance 12.8% PIK (12.8% Max PIK) 1/15/27 0.9 0.9 1.0 ATX Networks Corp (ad)(s)(v)(w)(y)(z) Capital Goods 10.0% PIK (10.0% Max PIK) 8/9/28 18.3 4.8 7.1 ClubCorp Club Operations Inc (aa)(v) Consumer Services 8.5% 9/15/25 37.3 35.4 35.7 See notes to consolidated financial statements. 85 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Encora Digital Inc (v) Software & Services 9.8% PIK (9.8% Max PIK) 12/13/29 $ 21.6 $ 20.9 $ 20.9 Hilding Anders (ad)(v)(w)(y) Consumer Durables & Apparel € 24.8 26.9 — Hilding Anders (ad)(v)(w)(y) Consumer Durables & Apparel 110.5 — — Hilding Anders (ad)(v)(w)(y)(z) Consumer Durables & Apparel 13.0% PIK (13.0% Max PIK) 11/30/25 134.4 99.4 46.6 Total Subordinated Debt 188.3 111.3 Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) / Shares Amortized Cost Fair Value (d) Asset Based Finance—29.1% 801 5th Ave, Seattle, Private Equity (ad)(v)(w)(y) Real Estate 8,554,983 $ 14.1 $ 23.1 801 5th Ave, Seattle, Structure Mezzanine (ad)(v)(w) Real Estate 8.0%, 3.0% PIK (3.0% Max PIK) 12/19/29 $ 57.2 55.1 57.2 Abacus JV, Private Equity (v)(w) Insurance 44,833,382 43.8 48.1 Accelerator Investments Aggregator LP, Private Equity (v)(w)(y) Diversified Financials 5,397,365 6.3 4.7 Altavair AirFinance, Private Equity (v)(w) Capital Goods 94,679,609 95.6 114.3 Australis Maritime, Common Stock (v)(w) Transportation 46,781,830 45.1 46.7 Avida Holding AB, Common Stock (ad)(v)(w)(y) Diversified Financials 405,023,756 44.6 52.3 Bank of Ireland, Class B Credit Linked Floating Rate Note (g)(w) Banks L+1,185 12/4/27 $ 14.7 14.7 14.7 Byrider Finance LLC, Structured Mezzanine (x) Automobiles & Components L+1,050 0.3% 6/3/28 $ 23.0 23.0 23.0 Callodine Commercial Finance LLC, 2L Term Loan A (v) Diversified Financials L+900 1.0% 11/3/25 $ 125.0 118.0 125.6 Callodine Commercial Finance LLC, 2L Term Loan B (x) Diversified Financials L+900 1.0% 11/3/25 $ 40.3 40.3 40.5 Capital Automotive LP, Private Equity (v)(w) Real Estate 21,640,936 23.7 28.1 Capital Automotive LP, Structured Mezzanine (v)(w) Real Estate 11.0% 12/22/28 $ 42.7 41.9 42.7 Global Jet Capital LLC, Preferred Stock (j)(u)(v)(y) Commercial & Professional Services 149,494,590 69.4 — Global Jet Capital LLC, Preferred Stock (j)(u)(v) Commercial & Professional Services 9.0% PIK (9.0% Max PIK) 10/1/28 $ 414.0 304.8 302.2 Global Jet Capital LLC, Structured Mezzanine (j)(u)(v)(w) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/4/25 $ 53.6 36.9 53.6 Global Jet Capital LLC, Structured Mezzanine (j)(u)(v)(w) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/9/25 $ 39.2 26.9 39.2 Global Jet Capital LLC, Structured Mezzanine (j)(u)(v)(w) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 1/29/26 $ 4.6 3.1 4.6 Global Lending Services LLC, Private Equity (v)(w) Diversified Financials 12,222,437 14.2 15.5 Global Lending Services LLC, Private Equity (v)(w) Diversified Financials 22,352,639 24.2 28.5 Home Partners JV 2, Private Equity (ac)(v)(w)(y) Real Estate 1,585,353 1.5 1.6 Home Partners JV 2, Private Equity (ac)(v)(w)(y) Real Estate 59,815 0.1 0.1 Home Partners JV 2, Structured Mezzanine (ac)(v)(w) Real Estate 11.0% PIK (11.0% Max PIK) 3/20/30 $ 3.5 3.4 3.5 Home Partners JV 2, Structured Mezzanine (ac)(w)(x) Real Estate 11.0% PIK (11.0% Max PIK) 3/20/30 $ 13.6 13.6 13.6 Home Partners JV, Common Stock (ac)(v)(w)(y) Real Estate 32,659,547 47.6 80.6 Home Partners JV, Private Equity (ac)(v)(w)(y) Real Estate 4,127,355 5.4 9.4 Home Partners JV, Structured Mezzanine (ac)(v)(w) Real Estate 11.0% PIK (11.0% Max PIK) 3/25/29 $ 90.4 85.6 90.4 See notes to consolidated financial statements. 86 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) / Shares Amortized Cost Fair Value (d) Jet Edge International LLC, Preferred Stock (ac)(p) Transportation 8.0%, 0.0% PIK (8.0% Max PIK) 20,878,236 $ 20.9 $ 16.8 Jet Edge International LLC, Term Loan (ac)(v) Transportation 10.0%, 2.0% PIK (2.0% Max PIK) 4/2/26 $ 76.6 75.9 76.1 Jet Edge International LLC, Term Loan (ac)(x) Transportation 10.0%, 2.0% PIK (2.0% Max PIK) 4/2/26 $ 75.0 75.0 74.5 Jet Edge International LLC, Warrant (ac)(h)(y) Transportation 3,963 — 4.5 Kilter Finance, Preferred Stock (ad)(v)(w) Insurance 6.0%, 6.0% PIK (6.0% Max PIK) 36,108,611 34.6 36.1 Kilter Finance, Private Equity (ad)(v)(w)(y) Insurance 536,709 0.5 0.5 KKR Central Park Leasing Aggregator L.P., Partnership Interest (v)(w)(y)(z) Capital Goods 14.3% 5/31/23 $ 39.1 39.1 25.8 KKR Chord IP Aggregator LP, Partnership Interest (v)(w) Media & Entertainment 114,193,861 112.6 131.5 KKR Chord IP Aggregator LP, Structured Mezzanine (v)(w) Media & Entertainment 9.0% 10/14/23 $ 167.3 164.9 167.3 KKR Rocket Loans Aggregator LLC, Partnership Interest (ad)(v)(w) Diversified Financials 1,387,913 1.4 1.4 KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest (v)(w)(y) Capital Goods 23,664,954 23.0 19.1 Lenovo Group Ltd, Structured Mezzanine (v)(w) Technology Hardware & Equipment 7.8% 9/22/24 € 7.8 9.2 8.9 Lenovo Group Ltd, Structured Mezzanine (v)(w) Technology Hardware & Equipment 7.8% 9/22/24 $ 12.1 12.1 12.1 Lenovo Group Ltd, Structured Mezzanine (v)(w) Technology Hardware & Equipment 11.8% 9/22/24 € 5.9 6.9 6.7 Lenovo Group Ltd, Structured Mezzanine (v)(w) Technology Hardware & Equipment 11.8% 9/22/24 £ 1.6 2.2 2.1 Lenovo Group Ltd, Structured Mezzanine (v)(w) Technology Hardware & Equipment 7.8% 9/22/24 £ 2.1 2.9 2.9 Lenovo Group Ltd, Structured Mezzanine (v)(w) Technology Hardware & Equipment 11.8% 9/22/24 $ 9.1 9.1 9.1 My Community Homes SFR PropCo 2, Private Equity (ad)(v)(w)(y) Real Estate 33,000,000 33.0 33.0 NewStar Clarendon 2014-1A Class D (v)(w) Diversified Financials 19.5% 1/25/27 $ 8.3 2.5 4.2 Opendoor Labs Inc, Structured Mezzanine (v)(w) Real Estate 10.0% 4/1/26 $ 71.1 71.1 71.1 Opendoor Labs Inc, Structured Mezzanine (w)(x) Real Estate 10.0% 4/1/26 $ 88.9 88.9 88.9 Orchard Marine Limited, Class B Common Stock (ac)(v)(w)(y) Transportation 1,964 3.1 — Orchard Marine Limited, Series A Preferred Stock (ac)(v)(w)(y) Transportation 62,976 62.0 64.6 Pretium Partners LLC P1, Structured Mezzanine (v)(w) Real Estate 2.8%, 5.3% PIK (5.3% Max PIK) 10/22/26 $ 6.7 6.2 6.8 Pretium Partners LLC P2, Private Equity (v)(w)(y) Real Estate 16,772,368 16.4 16.4 Pretium Partners LLC P2, Term Loan (v)(w) Real Estate 11.0% 12/16/29 $ 33.5 32.9 32.9 Prime ST LLC, Private Equity (ad)(v)(w)(y) Real Estate 5,983,135 7.7 9.1 Prime ST LLC, Structured Mezzanine (ad)(v)(w) Real Estate 5.0%, 6.0% PIK (6.0% Max PIK) 3/12/30 $ 52.4 50.4 52.4 Star Mountain Diversified Credit Income Fund III, LP, Private Equity (o)(w) Diversified Financials 23,500,000 23.5 24.3 Toorak Capital Funding LLC, Membership Interest (ad)(v)(w)(y) Real Estate 1,723,140 1.9 1.7 Toorak Capital Partners LLC, Private Equity (ad)(v) Real Estate 158,139,270 158.1 199.3 Toorak Capital Partners LLC, Structured Mezzanine (ad)(v) Real Estate L+650 PIK (L+650 Max PIK) 5/11/22 $ 22.0 22.0 22.0 Toorak Capital Partners LLC, Structured Mezzanine (ad)(x) Real Estate L+650 PIK (L+650 Max PIK) 5/11/22 $ 8.0 8.0 8.0 Total Asset Based Finance 2,380.9 2,493.9 Unfunded Asset Based Finance Commitments (248.9 ) (248.9 ) Net Asset Based Finance 2,132.0 2,245.0 See notes to consolidated financial statements. 87 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) / Shares Amortized Cost Fair Value (d) Credit Opportunities Partners JV, LLC—18.1% Credit Opportunities Partners JV, LLC (ad)(v)(w) Diversified Financials 1,462.3 $ 1,396.7 $ 1,396.2 Total Credit Opportunities Partners JV, LLC 1,396.7 1,396.2 Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Number of Shares Amortized Cost Fair Value (d) Equity/Other—11.7%(e) Abaco Energy Technologies LLC, Common Stock (v)(y) Energy 3,055,556 $ 0.2 $ 0.3 Abaco Energy Technologies LLC, Preferred Stock (v)(y) Energy 12,734,481 1.5 1.7 Affordable Care Inc, Preferred Stock (ac)(v) Health Care Equipment & Services 11.8% PIK (11.8% Max PIK) 49,073,000 48.1 52.1 American Vision Partners, Private Equity (v)(y) Health Care Equipment & Services 2,450,230 2.5 2.4 Amtek Global Technology Pte Ltd, Common Stock (ad)(g)(v)(w)(y) Automobiles & Components 7,046,126 — — Amtek Global Technology Pte Ltd, Ordinary Shares (ad)(v)(w)(y) Automobiles & Components 5,735,804,056 30.7 — Amtek Global Technology Pte Ltd, Private Equity (ad)(v)(w)(y) Automobiles & Components 4,097 — — Angelica Corp, Limited Partnership Interest (h)(y) Health Care Equipment & Services 877,044 47.6 — Arcos LLC/VA, Preferred Stock (v) Software & Services L+950 PIK (L+950 Max PIK) 1.0% 4/30/31 15,000,000 14.0 15.5 Ardonagh Ltd, Ordinary Shares (v)(w)(y) Insurance 16,450 — 2.8 Ardonagh Ltd, Ordinary Shares (v)(w)(y) Insurance 116,814 0.2 0.5 Ardonagh Ltd, Preferred Stock (v)(w)(y) Insurance 6,113,719 9.1 22.0 Arena Energy LP, Warrants (v)(y) Energy 68,186,525 0.4 0.6 Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock (p)(y) Energy 10,193 9.7 2.3 Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim (p)(y) Energy 86,607,143 19.4 19.8 Aspect Software Inc, Common Stock (l)(s)(v)(y) Software & Services 1,309,955 2.3 2.7 Aspect Software Inc, Warrant (l)(s)(v)(y) Software & Services 1/15/24 181,730 0.3 0.3 ATX Networks Corp, Common Stock (ad)(s)(v)(w)(y) Capital Goods 3,483 — — AVF Parent LLC, Trade Claim (v)(y) Retailing 44,507 — — Belk Inc, Common Stock (ac)(v)(y) Retailing 94,950 — — Borden (New Dairy Opco), Common Stock (ac)(h)(n)(y) Food, Beverage & Tobacco 11,167,000 9.1 7.7 Bowery Farming Inc, Warrants (v)(y) Food, Beverage & Tobacco 4/30/26 161,828 0.0 5.2 Catalina Marketing Corp, Common Stock (v)(y) Media & Entertainment 6,522 — — CDS US Intermediate Holdings Inc, Warrant (v)(w)(y) Media & Entertainment 2,023,714 — — Cengage Learning, Inc, Common Stock (v)(y) Media & Entertainment 227,802 7.5 4.2 Cimarron Energy Inc, Common Stock (v)(y) Energy 4,302,293 — — Cimarron Energy Inc, Participation Option (v)(y) Energy 25,000,000 — — Constellis Holdings LLC, Private Equity (ac)(f)(v)(y) Capital Goods 849,702 10.3 0.2 CTI Foods Holding Co LLC, Common Stock (v)(y) Food, Beverage & Tobacco 5,892 0.7 — See notes to consolidated financial statements. 88 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Number of Shares Amortized Cost Fair Value (d) Cubic Corp, Preferred Stock (v) Software & Services 11.0% PIK (11.0% Max PIK) 42,141,600 $ 39.6 $ 42.3 Envigo Laboratories Inc, Series A Warrant (s)(y) Health Care Equipment & Services 4/29/24 10,924 — — Envigo Laboratories Inc, Series B Warrant (s)(y) Health Care Equipment & Services 4/29/24 17,515 — — Fairway Group Holdings Corp, Common Stock (ac)(v)(y) Food & Staples Retailing 103,091 — — Fox Head Inc, Common Stock (j)(v)(y) Consumer Durables & Apparel 10,000,000 8.0 10.9 Fronton BV, Common Stock (ac)(o)(y) Consumer Services 14,943 — 1.4 Galaxy Universal LLC, Common Stock (v)(y) Consumer Durables & Apparel 228,806 35.5 35.5 Galaxy Universal LLC, Trade Claim (v)(y) Consumer Durables & Apparel 27,256,114 16.4 16.4 Genesys Telecommunications Laboratories Inc, Class A Shares (v)(y) Technology Hardware & Equipment 40,529 — — Genesys Telecommunications Laboratories Inc, Ordinary Shares (v)(y) Technology Hardware & Equipment 41,339 — — Genesys Telecommunications Laboratories Inc, Preferred Stock (v)(y) Technology Hardware & Equipment 1,050,465 — — Harvey Industries Inc, Common Stock (v) Capital Goods 5,000,000 2.2 3.3 Hilding Anders, Class A Common Stock (ad)(v)(w)(y) Consumer Durables & Apparel 4,503,411 0.1 — Hilding Anders, Class B Common Stock (ad)(v)(w)(y) Consumer Durables & Apparel 574,791 0.0 — Hilding Anders, Class C Common Stock (ad)(v)(w)(y) Consumer Durables & Apparel 213,201 — — Hilding Anders, Equity Options (ad)(v)(w)(y) Consumer Durables & Apparel 11/30/25 236,160,807 15.0 — HM Dunn Co Inc, Preferred Stock, Series A (ad)(s)(v)(y) Capital Goods 85,385 7.1 7.1 HM Dunn Co Inc, Preferred Stock, Series B (ad)(s)(v)(y) Capital Goods 15,000 — — Imagine Communications Corp, Common Stock (v)(y) Media & Entertainment 33,034 3.8 2.5 Jones Apparel Holdings, Inc., Common Stock (v)(y) Consumer Durables & Apparel 5,451 0.9 — JW Aluminum Co, Common Stock (ad)(j)(u)(v)(y) Materials 2,105 0.0 — JW Aluminum Co, Preferred Stock (ad)(j)(u)(v) Materials 12.5% PIK (12.5% Max PIK) 2/15/28 15,279 177.9 122.6 Maverick Natural Resources LLC, Common Stock (n)(o)(y) Energy 259,211 84.5 143.6 MB Precision Holdings LLC, Class A—2 Units (n)(o)(y) Capital Goods 8,081,288 0.5 — Med-Metrix, Common Stock (h)(y) Software & Services 29,403 1.5 1.6 Med-Metrix, Preferred Stock (h) Software & Services 8.0% PIK (8.0% Max PIK) 29,403 1.5 1.5 Miami Beach Medical Group LLC, Common Stock (v)(y) Health Care Equipment & Services 5,000,000 4.8 3.9 Micronics Filtration Holdings Inc, Common Stock (ac)(v)(y) Capital Goods 53,073 0.6 — Micronics Filtration Holdings Inc, Preferred Stock, Series A (ac)(v)(y) Capital Goods 55 0.6 0.1 Micronics Filtration Holdings Inc, Preferred Stock, Series B (ac)(v)(y) Capital Goods 23 0.2 0.4 Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK (ac)(v)(y) Capital Goods 112,780 — 11.9 Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK (ac)(v)(y) Capital Goods 54,000 — 6.2 Misys Ltd, Preferred Stock (v)(w) Software & Services L+1,025 PIK (L+1,025 Max PIK) 79,782,377 73.5 78.9 NBG Home, Common Stock (v)(y) Consumer Durables & Apparel 1,903 2.6 — Nine West Holdings Inc, Common Stock (v)(y) Consumer Durables & Apparel 5,451 6.5 — One Call Care Management Inc, Common Stock (ad)(v)(y) Health Care Equipment & Services 34,872 2.1 2.4 See notes to consolidated financial statements. 89 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Number of Shares Amortized Cost Fair Value (d) One Call Care Management Inc, Preferred Stock A (ad)(v)(y) Health Care Equipment & Services 371,992 $ 22.8 $ 26.1 One Call Care Management Inc, Preferred Stock B (ad)(v) Health Care Equipment & Services 9.0% PIK (9.0% Max PIK) 10/25/29 7,672,347 8.0 9.2 Petroplex Acidizing Inc, Preferred Stock A (ac)(v)(y) Energy 25,138,631 4.9 — Petroplex Acidizing Inc, Warrant (ac)(v)(y) Energy 12/15/26 8 — — Polyconcept North America Inc, Class A—1 Units (v)(y) Household & Personal Products 30,000 3.0 4.3 PRG III LLC, Preferred Stock, Series A PIK (ad)(v)(y) Media & Entertainment 8/21/24 434,250 18.1 17.4 PRG III LLC, Preferred Stock, Series B PIK (ad)(v)(y) Media & Entertainment 8/21/24 140 — — Proserv Acquisition LLC, Class A Common Units (ac)(v)(w)(y) Energy 2,635,005 33.4 0.1 Proserv Acquisition LLC, Class A Preferred Units (ac)(v)(w)(y) Energy 837,780 5.4 9.3 Quorum Health Corp, Trade Claim (v)(y) Health Care Equipment & Services 8,301,000 0.7 0.9 Quorum Health Corp, Trust Initial Funding Units (v)(y) Health Care Equipment & Services 143,400 0.2 0.2 Ridgeback Resources Inc, Common Stock (j)(u)(v)(w)(y) Energy 1,969,418 9.1 9.9 Sorenson Communications LLC, Common Stock (ac)(j)(u)(v)(y) Telecommunication Services 89,959 42.5 67.5 Sound United LLC, Common Stock (ad)(v) Consumer Durables & Apparel 12,857,143 17.3 77.5 Stuart Weitzman Inc, Common Stock (v)(y) Consumer Durables & Apparel 5,451 — — Sungard Availability Services Capital Inc, Common Stock (ac)(s)(u)(v)(y) Software & Services 262,516 6.9 — Swift Worldwide Resources Holdco Ltd, Common Stock (v)(y) Energy 1,250,000 1.2 1.1 ThermaSys Corp, Common Stock (ac)(u)(v)(y) Capital Goods 17,383,026 10.2 — ThermaSys Corp, Preferred Stock (ac)(v)(y) Capital Goods 1,529 1.7 — Versatile Processing Group Inc, Class A—2 Units (u)(y) Materials 3,637,500 3.6 — Warren Resources Inc, Common Stock (ad)(v)(y) Energy 3,483,788 12.8 20.4 Zeta Interactive Holdings Corp, Common Stock (aa)(v)(y) Software & Services 3,610,212 30.8 30.4 Total Equity/Other 931.6 907.1 TOTAL INVESTMENTS—208.3% $ 16,056.7 16,101.5 LIABILITIES IN EXCESS OF OTHER ASSETS—(108.3%) (8,371.5 ) NET ASSETS—100% $ 7,730.0 See notes to consolidated financial statements. 90 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Foreign currency forward contracts Foreign Currency Settlement Date Counterparty Amount and Transaction US$ Value at Settlement Date US$ Value at December 31, 2021 Unrealized Appreciation (Depreciation) AUD 10/17/2022 JP Morgan Chase Bank A$ 3 Sold $ 2.1 $ 2.2 $ (0.1 ) AUD 2/14/2023 JP Morgan Chase Bank A$ 2.2 Sold 1.6 1.6 — CAD 6/7/2022 JP Morgan Chase Bank $ 1.4 Sold 1.1 1.1 — CAD 6/7/2022 JP Morgan Chase Bank $ 1.9 Sold 1.5 1.5 — CAD 11/10/2022 JP Morgan Chase Bank $ 1.5 Sold 1.2 1.1 0.1 CAD 11/15/2024 JP Morgan Chase Bank $ 4.0 Sold 3.2 3.1 0.1 EUR 5/6/2022 JP Morgan Chase Bank € 6.1 Sold 7.5 7.0 0.5 EUR 5/6/2022 JP Morgan Chase Bank € 1.6 Sold 2.0 1.8 0.2 EUR 5/6/2022 JP Morgan Chase Bank € 0.7 Sold 0.9 0.8 0.1 EUR 5/6/2022 JP Morgan Chase Bank € 2.2 Sold 2.7 2.5 0.2 EUR 5/6/2022 JP Morgan Chase Bank € 0.9 Sold 1.2 1.1 0.1 EUR 9/12/2022 JP Morgan Chase Bank € 10.0 Sold 11.7 11.5 0.2 EUR 7/17/2023 JP Morgan Chase Bank € 1.3 Sold 1.7 1.5 0.2 EUR 2/23/2024 JP Morgan Chase Bank € 42.3 Sold 49.1 49.4 (0.3 ) EUR 8/8/2025 JP Morgan Chase Bank € 4.8 Sold 5.7 5.7 — EUR 8/8/2025 JP Morgan Chase Bank € 1.9 Sold 2.3 2.3 — GBP 1/11/2023 JP Morgan Chase Bank £ 1.9 Sold 2.9 2.6 0.3 GBP 1/11/2023 JP Morgan Chase Bank £ 1.7 Sold 2.6 2.3 0.3 GBP 1/11/2023 JP Morgan Chase Bank £ 3.4 Sold 4.8 4.6 0.2 GBP 1/11/2023 JP Morgan Chase Bank £ 5.0 Sold 6.5 6.6 (0.1 ) GBP 1/11/2023 JP Morgan Chase Bank £ 1.4 Sold 1.9 1.9 — GBP 10/13/2023 JP Morgan Chase Bank £ 6.2 Sold 8.5 8.4 0.1 NOK 8/8/2025 JP Morgan Chase Bank NOK 49.1 Sold 5.2 5.5 (0.3 ) NOK 8/8/2025 JP Morgan Chase Bank NOK 11.4 Sold 1.2 1.3 (0.1 ) SEK 3/15/2024 JP Morgan Chase Bank SEK 72.8 Sold 8.5 8.2 0.3 SEK 5/10/2024 JP Morgan Chase Bank SEK 430.3 Sold 51.4 48.4 3.0 SEK 5/10/2024 JP Morgan Chase Bank SEK 503.0 Sold 60.1 56.6 3.5 SEK 5/10/2024 JP Morgan Chase Bank SEK 34.5 Sold 4.1 3.9 0.2 SEK 8/8/2025 JP Morgan Chase Bank SEK 119.3 Sold 13.3 13.5 (0.2 ) SEK 8/8/2025 JP Morgan Chase Bank SEK 27.8 Sold 3.1 3.2 (0.1 ) Total $ 269.6 $ 261.2 $ 8.4 (a) Security may be an obligation of one or more entities affiliated with the named company. (b) Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of December 31, 2021, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.21%, the Euro Interbank Offered Rate, or EURIBOR, was (0.57)%, Canadian Dollar Offer Rate, or CDOR was 0.52%, the Bank Bill Swap Bid Rate, or BBSY was 0.12%, the Reykjavik Interbank Offered Rate, or REIBOR, was 2.65%, the Stockholm Interbank Offered Rate, or STIBOR, was (0.05)%, the Sterling Overnight Index Average, or SONIA, was .19%, the Secured Overnight Financing Rate, or SOFR, was .05%, and the U.S. Prime Lending Rate, or Prime, was 3.25%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. See notes to consolidated financial statements. 91 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) (c) Denominated in U.S. dollars unless otherwise noted. (d) Fair value determined by the Company’s board of directors (see Note 8). (e) Listed investments may be treated as debt for GAAP or tax purposes. (f) Security or portion thereof held within Ambler Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Ally Bank (see Note 9). (g) Security or portion thereof was held within CCT Dublin Funding Limited (h) Security held within CCT Holdings II, LLC, a wholly-owned subsidiary of the Company. (i) Security or portion thereof was held within CCT Tokyo Funding LLC and was pledged as collateral supporting the amounts outstanding under the revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9). (j) Security or portion thereof held within Cobbs Creek LLC and is pledged as collateral supporting the amounts outstanding under the senior secured revolving credit facility (see Note 9). (k) Security or portion thereof held within Darby Creek LLC and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Deutsche Bank AG, New York Branch (see Note 9). (l) Security or portion thereof held within Dunlap Funding LLC and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Deutsche Bank AG, New York Branch (see Note 9). (m) Security or portion thereof was held within FSK CLO as of December 31, 2021. (n) Security held within FSIC II Investments, Inc., a wholly-owned subsidiary of the Company. (o) Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company. (p) Security held within IC American Energy Investments, Inc., a wholly-owned subsidiary of the Company. (q) Security held within IC Arches Investments LLC, a wholly-owned subsidiary of the Company. (r) Security held within IC II Arches Investments, LLC, a wholly-owned subsidiary of the Company. (s) Security or portion thereof held within Juniata River LLC and is pledged as collateral supporting the amounts outstanding under a term loan credit facility with JPMorgan Chase Bank, N.A. (see Note 9). (t) Security or portion thereof held within Meadowbrook Run LLC and is pledged as collateral supporting the amounts outstanding under a revolving credit facility with Morgan Stanley Senior Funding, Inc. (see Note 9). (u) Security or portion thereof held within Race Street Funding LLC. Security is available as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9). (v) Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9). (w) The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of December 31, 2021, 75.1% of the Company’s total assets represented qualifying assets. (x) Security is an unfunded commitment. Reflects the stated spread at the time of commitment, but may not be the actual rate received upon funding. (y) Security is non-income producing. See notes to consolidated financial statements. 92 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) (z) Asset is on non-accrual status. (aa) Security is classified as Level 1 or 2 in the Company’s fair value hierarchy (see Note 8). (ab) Not used. (ac) Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2021, the Company held investments in portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person for the year ended December 31, 2021: Portfolio Company Fair Value at December 31, 2020 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Senior Secured Loans—First Lien Affordable Care Inc $ — $ — $ — $ — $ — $ — $ — $ — $ 0.3 $ — Affordable Care Inc — 115.5 (55.9 ) 0.3 — 59.9 2.7 — 1.6 — Belk Inc — 42.6 (2.4 ) — 9.0 49.2 3.1 0.9 — — Belk Inc — 21.7 — — 0.2 21.9 1.6 — — — Borden (New Dairy Opco) 7.6 10.6 (10.0 ) 0.2 0.6 9.0 0.5 — — — Borden (New Dairy Opco) 16.8 23.4 — — 1.8 42.0 2.7 — — — Borden Dairy Co — — — 1.3 (1.3 ) — — — — — Constellis Holdings LLC — 14.0 — — 1.0 15.0 0.9 — — — Fairway Group Holdings Corp — 1.1 (0.7 ) 0.6 (0.3 ) 0.7 0.8 — — — Fairway Group Holdings Corp — — — — — — — — — — HM Dunn Co Inc (5) 0.3 — (0.6 ) — 0.3 — — — — — HM Dunn Co Inc (5) 0.2 — (0.3 ) — 0.1 — — — — — Micronics Filtration Holdings Inc 35.5 1.0 — — 14.5 51.0 — 1.0 — — One Call Care Management Inc (5) 4.7 0.6 (4.9 ) — (0.4 ) — 0.2 — — — Petroplex Acidizing Inc 4.5 — (0.2 ) — 5.4 9.7 — — — — Sorenson Communications LLC (4) — 61.8 (5.1 ) 0.2 3.2 60.1 2.8 — — — Sungard Availability Services Capital Inc (4) — 5.7 — — 0.3 6.0 0.2 0.1 — — ThermaSys Corp 3.9 0.4 — — (0.8 ) 3.5 — 0.5 — — Senior Secured Loans—Second Lien Belk Inc — 4.2 — — 2.5 6.7 — — — — Constellis Holdings LLC — 12.5 — — (0.5 ) 12.0 0.6 0.4 — — Fairway Group Holdings Corp — — — — — — — — — — Sorenson Communications LLC — 22.0 (22.2 ) 0.2 — — 0.4 0.9 — — Sungard Availability Services Capital Inc — 13.6 0.1 — (5.4 ) 8.3 0.7 0.2 — — Other Senior Secured Debt JW Aluminum Co (5) 41.8 — (39.4 ) — (2.4 ) — — — — — Subordinated Debt Home Partners of America Inc — 3.5 (3.5 ) — — — 0.1 — — — See notes to consolidated financial statements. 93 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2020 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Asset Based Finance Home Partners JV, Structured Mezzanine $ 38.5 $ 83.4 $ (36.3 ) $ — $ 4.8 $ 90.4 $ 0.6 $ 7.3 $ — $ — Home Partners JV, Private Equity — 5.4 — — 4.0 9.4 — — — — Home Partners JV, Private Equity — — — (0.6 ) 0.6 — — — — — Home Partners JV, Common Stock 21.5 45.9 (22.9 ) 7.7 28.4 80.6 — — — — Home Partners JV 2, Structured Mezzanine — 3.4 — — 0.1 3.5 — 0.2 — — Home Partners JV 2, Private Equity — 0.1 — — — 0.1 — — — — Home Partners JV 2, Private Equity — 1.5 — — 0.1 1.6 — — — — Jet Edge International LLC, Preferred Stock — 20.9 — — (4.1 ) 16.8 0.5 — — — Jet Edge International LLC, Warrant — — — — 4.5 4.5 — — — — Jet Edge International LLC, Term Loan — 78.0 (2.1 ) — (0.3 ) 75.6 2.4 0.5 — — Orchard Marine Limited, Class B Common Stock — — — — — — — — — — Orchard Marine Limited, Series A Preferred Stock 24.6 — — — 40.0 64.6 — — — — Equity/Other Affordable Care Inc, Common Stock — 48.1 — — 4.0 52.1 — 2.3 — — ASG Technologies, Common Stock 42.7 — (79.4 ) 56.0 (19.3 ) — — — — — ASG Technologies, Warrants 3.5 — (10.2 ) 3.7 3.0 — — — — — Belk Inc, Common Stock — — — — — — — 0 — — Borden (New Dairy Opco), Common Stock 3.2 5.2 — — (0.7 ) 7.7 — — — — Charlotte Russe Inc, Common Stock — — — (12.5 ) 12.5 — — — — — Constellis Holdings LLC, Private Equity — 10.3 — — (10.1 ) 0.2 — — — — Fairway Group Holdings Corp, Common Stock — — — — — — — — — — Fronton BV, Common Stock 1.2 — — — 0.2 1.4 — — — — HM Dunn Co Inc, Preferred Stock, Series A (5) — — — — — — — — — — HM Dunn Co Inc, Preferred Stock, Series B (5) — — — — — — — — — — Home Partners of America Inc, Common Stock 130.5 — (214.3 ) 130.7 (46.9 ) — — — — — Home Partners of America Inc, Warrant 2.1 — (4.4 ) 4.1 (1.8 ) — — — — — JW Aluminum Co, Common Stock (5) — — — — — — — — — — JW Aluminum Co, Preferred Stock (5) 93.7 — (107.3 ) — 13.6 — — 4.2 — — Micronics Filtration Holdings Inc, Common Stock — — — — — — — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series A — — — — 0.1 0.1 — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series B — — — — 0.4 0.4 — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK — — — — 11.9 11.9 — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK — — — — 6.2 6.2 — — — — One Call Care Management Inc, Common Stock (5) 2.4 — (3.0 ) — 0.6 — — — — — One Call Care Management Inc, Preferred Stock A (5) 25.5 — (32.3 ) — 6.8 — — — — — One Call Care Management Inc, Preferred Stock B (5) 10.6 — (9.8 ) — (0.8 ) — — — — — Petroplex Acidizing Inc, Preferred Stock A — 0.4 — — (0.4 ) — — — — 0.4 Petroplex Acidizing Inc, Warrant — — — — — — — — — — Proserv Acquisition LLC, Class A Common Units 9.0 — (0.1 ) — (8.8 ) 0.1 — — — — Proserv Acquisition LLC, Class A Preferred Units 9.5 — — — (0.2 ) 9.3 — — — — See notes to consolidated financial statements. 94 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2020 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Sorenson Communications LLC, Common Stock (4) $ — $ 42.5 $ — $ — $ 25.0 $ 67.5 $ — $ — $ — $ — Sungard Availbaility Services Capital Inc, Common Stock (4) — 6.9 — — (6.9 ) — — — — — ThermaSys Corp, Common Stock — — — — — — — — — — ThermaSys Corp, Preferred Stock — — — — — — — — — — Total $ 533.8 $ 706.2 $ (667.2 ) $ 191.9 $ 94.3 $ 859.0 $ 20.8 $ 18.5 $ 1.9 $ 0.4 (1) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. (2) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. (3) Interest, PIK, fee and dividend income presented for the full year ended December 31, 2021. (4) The Company held this investment as of December 31, 2020 but it was not deemed to be an “affiliated person” of the portfolio company as of December 31, 2020. Transfers in or out have been presented at amortized cost. (5) The Company held this investment as of December 31, 2021 but it was deemed to “control” the portfolio company as of December 31, 2021. Transfers in or out have been presented at amortized cost. (ad) Under the Investment Company Act of 1940, as amended, the Company generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2021, the Company held investments in one portfolio company of which it is deemed to be an “affiliated person” and deemed to “control”. During the year ended December 31, 2021, the Company disposed of investments in one portfolio of which it was deemed to be an “affiliated person” and deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and deemed to control for the year ended December 31, 2021: Portfolio Company Fair Value at December 31, 2020 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Senior Secured Loans—First Lien Advanced Lighting Technologies Inc $ 12.0 $ 4.1 $ (15.9 ) $ (4.6 ) $ 4.4 $ — $ — $ — $ — $ — Amtek Global Technology Pte Ltd 59.7 2.4 — — (27.3 ) 34.8 1.1 1.4 — — ATX Networks Corp — 46.8 — — — 46.8 1.3 — — — HM Dunn Co Inc (4) — 49.2 (7.1 ) (8.5 ) — 33.6 0.5 — — — HM Dunn Co Inc (4) — 14.0 (19.0 ) 7.0 — 2.0 0.4 0.8 — — One Call Care Management Inc — 9.7 (5.1 ) 0.1 0.3 5.0 0.3 — 0.1 — Production Resource Group LLC — 124.9 — — 8.4 133.3 5.4 3.8 — — Production Resource Group LLC — 0.1 — — — 0.1 — — — — Production Resource Group LLC — 60.6 (0.4 ) — 4.2 64.4 2.8 0.8 0.4 — Production Resource Group LLC — 20.2 (0.1 ) — 0.1 20.2 0.4 — 0.1 — Sound United LLC 14.9 — (15.0 ) — 0.1 — 0.4 — — — Warren Resources Inc (4) — 19.3 (2.0 ) 0.1 1.3 18.7 1.3 0.1 — — See notes to consolidated financial statements. 95 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2020 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Senior Secured Loans—Second Lien Amtek Global Technology Pte Ltd $ 0.1 $ (1.8 ) $ — $ (10.4 ) $ 12.1 $ — $ (1.9 ) $ — $ — $ — Sound United LLC 20.9 1.7 (22.6 ) — — — — 1.0 — — Other Senior Secured Debt Advanced Lighting Technologies Inc — — (0.7 ) (22.9 ) 23.6 — — — — — JW Aluminum Co (4) — 75.5 — — 5.5 81.0 6.2 — — — One Call Care Management Inc (4) — 43.5 (21.9 ) — 1.9 23.5 0.4 1.6 — — Subordinated Debt ATX Networks Corp — 4.8 — — 2.3 7.1 — — — — Hilding Anders 32.4 — — — 14.2 46.6 — — — — Hilding Anders — — — — — — — — — — Hilding Anders 30.3 — — — (30.3 ) — — — — — Asset Based Finance 801 5th Ave, Seattle, Structure Mezzanine 29.4 25.7 — — 2.1 57.2 3.6 1.3 — — 801 5th Ave, Seattle, Private Equity 10.3 9.6 — — 3.2 23.1 — — — — Avida Holding AB, Common Stock 38.3 9.1 — — 4.9 52.3 — — — — Kilter Finance, Preferred Stock 0.2 34.4 — — 1.5 36.1 1.3 1.2 — — Kilter Finance, Private Equity 0.2 0.3 — — — 0.5 — — — — KKR Rocket Loans Aggregator LLC, Partnership Interest — 1.4 — — — 1.4 — — — 0.1 My Community Homes SFR PropCo 2, Private Equity — 33.0 — — — 33.0 — — — — Prime St LLC, Private Equity 3.9 4.6 — — 0.6 9.1 — — — — Prime St LLC, Structured Mezzanine 22.8 27.6 — — 2.0 52.4 0.9 2.2 — — Toorak Capital Funding LLC, Membership Interest 6.6 1.3 (4.9 ) — (1.3 ) 1.7 — — — — Toorak Capital Partners, LLC, Private Equity 235.9 2.3 (50.2 ) 10.2 1.1 199.3 — — — 18.7 Toorak Capital Partners LLC, Structured Mezzanine — 73.0 (51.0 ) — — 22.0 0.2 — — — Credit Opportunities Partners JV, LLC Credit Opportunities Partners JV, LLC 712.5 586.4 — — 97.3 1,396.2 — — — 126.9 Equity/Other Advanced Lighting Technologies Inc, Common Stock — — — (16.5 ) 16.5 — — — — — Advanced Lighting Technologies Inc, Warrant — — — (0.1 ) 0.1 — — — — — Amtek Global Technology Pte Ltd, Common Stock — — — — — — — — — — Amtek Global Technology Pte Ltd, Ordinary Shares — — — — — — — — — — Amtek Global Technology Pte Ltd, Trade Claim — — (1.4 ) 0.4 1.0 — — — — — Amtek Global Technology Pte Ltd, Private Equity — — — — — — — — — — ATX Networks Corp, Common Stock — — — — — — — — — — Hilding Anders, Class A Common Stock — — — — — — — — — — Hilding Anders, Class B Common Stock — — — — — — — — — — Hilding Anders, Class C Common Stock — — — — — — — — — — Hilding Anders, Equity Options — — — — — — — — — — HM Dunn Co Inc, Preferred Stock, Series A (4) — 7.1 — — — 7.1 — — — — HM Dunn Co Inc, Preferred Stock, Series B (4) — — — — — — — — — — See notes to consolidated financial statements. 96 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2021 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2020 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) JW Aluminum Co, Common Stock (4) $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — JW Aluminum Co, Preferred Stock (4) — 177.9 — — (55.3 ) 122.6 0.4 20.9 — — One Call Care Management Inc, Common Stock (4) — 4.5 (2.2 ) (0.2 ) 0.3 2.4 — — — — One Call Care Management Inc, Preferred Stock A (4) — 48.6 (23.7 ) (2.1 ) 3.3 26.1 — — — — One Call Care Management Inc, Preferred Stock B (4) — 15.7 (8.8 ) 1.1 1.2 9.2 — 0.8 — — Production Resource Group LLC, Preferred Stock, Series A PIK — 18.1 — — (0.7 ) 17.4 — — — — Production Resource Group LLC, Preferred Stock, Series B PIK — — — — — — — — — — Sound United LLC, Class A Units — — — (1.1 ) 1.1 — — — — — Sound United LLC, Common Stock 29.3 — — — 48.2 77.5 — — — 20.0 Sound United LLC, Series I Units — — — (0.5 ) 0.5 — — — — — Sound United LLC, Series II Units — — — (0.5 ) 0.5 — — — — — Warren Resources Inc, Common Stock — 12.8 — — 7.6 20.4 — — — — Total $ 1,259.7 $ 1,568.4 $ (252.0 ) $ (48.5 ) $ 156.5 $ 2,684.1 $ 25.0 $ 35.9 $ 0.6 $ 165.7 (1) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. (2) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. (3) Interest, PIK, fee and dividend income presented for the full year ended December 31, 2021. (4) The Company held this investment as of December 31, 2020 but it was not deemed to be an “control” of the portfolio company as of December 31, 2020. Transfers in or out have been presented at amortized cost. See notes to consolidated financial statements. 97 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Senior Secured Loans—First Lien—111.4% 5 Arch Income Fund 2 LLC (l)(n)(q)(w) Diversified Financials 9.0% 11/18/23 $ 28.8 $ 28.8 $ 25.5 5 Arch Income Fund 2 LLC (l)(n)(q)(v)(w) Diversified Financials 9.0% 11/18/23 4.5 4.5 4.0 A10 Capital LLC (g)(h) Diversified Financials L+650 1.0% 5/1/23 12.8 12.7 12.6 A10 Capital LLC (v) Diversified Financials L+650 1.0% 5/1/23 14.1 14.1 14.0 Abaco Systems, Inc (g)(h)(i) Capital Goods L+600 1.0% 12/7/21 60.6 60.0 60.6 ABB CONCISE Optical Group LLC (g)(x) Retailing L+500 1.0% 6/15/23 0.7 0.7 0.7 Accuride Corp (g)(h)(i)(x) Capital Goods L+525 1.0% 11/17/23 17.7 17.6 16.1 Acproducts Inc (g)(h)(x) Consumer Durables & Apparel L+650 1.0% 8/18/25 41.8 39.7 43.1 Advanced Lighting Technologies Inc (g)(n)(w)(z) Materials L+750 1.0% 10/4/22 19.8 16.4 12.0 All Systems Holding LLC (f)(g)(h) Commercial & Professional Services L+625 1.0% 10/31/23 112.2 112.3 112.6 All Systems Holding LLC (v) Commercial & Professional Services L+625 1.0% 10/31/23 7.2 7.2 7.2 American Tire Distributors Inc (g)(x) Automobiles & Components L+750, 0.0% PIK (1.5% Max PIK) 1.0% 9/2/24 23.0 21.7 22.0 Amtek Global Technology Pte Ltd (j)(l)(z) Automobiles & Components E+500 0.0% 4/4/24 € 54.4 66.3 59.7 Apex Group Limited (g)(l) Diversified Financials L+700 1.3% 6/15/23 $ 0.6 0.6 0.6 Apex Group Limited (l)(v) Diversified Financials L+700 1.3% 6/15/23 1.3 1.2 1.3 Apex Group Limited (g)(h)(l) Diversified Financials L+700 1.3% 6/16/25 18.6 18.3 18.7 Apex Group Limited (g)(l) Diversified Financials L+700 1.5% 6/16/25 £ 31.3 39.7 43.2 Ardonagh Group Ltd (g)(l) Insurance L+750, 0.0% PIK (2.3% Max PIK) 0.8% 7/14/26 0.1 0.2 0.2 Ardonagh Group Ltd (l)(v) Insurance L+750, 0.0% PIK (2.3% Max PIK) 0.8% 7/14/26 0.7 0.8 0.9 Aspect Software Inc (g) Software & Services 8.0% PIK (8.0% Max PIK) 1/15/21 0.0 0.0 0.0 Aspect Software Inc (v) Software & Services L+500 1.0% 7/15/23 0.7 0.7 0.7 Berner Food & Beverage LLC (g)(h)(i) Food & Staples Retailing L+875 1.0% 3/16/22 87.6 87.3 91.6 Borden (New Dairy Opco) (g)(y) Food, Beverage & Tobacco L+250 1.0% 7/20/25 7.6 7.6 7.6 Borden (New Dairy Opco) (g)(y) Food, Beverage & Tobacco L+700, 0.0% PIK (1.0% Max PIK) 1.0% 7/20/25 16.8 16.8 16.8 Borden Dairy Co (g)(n)(w)(y) Food, Beverage & Tobacco L+825 1.0% 7/6/23 26.0 24.1 — Charles Taylor PLC (g)(l) Diversified Financials L+575 0.0% 1/24/27 £ 33.6 42.9 43.3 CSafe Global (g) Capital Goods L+625 1.0% 12/23/27 $ 0.1 0.1 0.1 CSafe Global (v) Capital Goods L+625 1.0% 12/23/27 1.5 1.5 1.5 CSafe Global (g)(h) Capital Goods L+625 1.0% 12/23/27 16.0 15.9 15.9 CSM Bakery Products (g)(x) Food, Beverage & Tobacco L+625 1.0% 1/4/22 1.1 1.1 1.1 CTI Foods Holding Co LLC (g) Food, Beverage & Tobacco L+577, 3.0% PIK (3.0% Max PIK) 1.0% 5/3/24 3.0 3.0 2.5 Distribution International Inc (g)(h)(x) Retailing L+575 1.0% 12/15/23 27.6 25.2 25.3 Eagle Family Foods Inc (v) Food, Beverage & Tobacco L+650 1.0% 6/14/23 7.1 7.1 7.1 Eagle Family Foods Inc (g)(h)(i) Food, Beverage & Tobacco L+650 1.0% 6/14/24 45.6 45.3 45.6 Empire Today LLC (g)(h) Retailing L+650 1.0% 11/17/22 75.6 75.6 76.4 Entertainment Benefits Group LLC (g) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/24 4.3 4.3 3.6 Entertainment Benefits Group LLC (v) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/24 0.5 0.5 0.4 Entertainment Benefits Group LLC (g)(h) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/25 30.1 29.8 25.3 FloWorks International LLC (g)(h) Capital Goods L+600 1.0% 10/14/26 17.2 17.0 17.0 FloWorks International LLC (g) Capital Goods L+600 1.0% 10/14/26 6.4 6.4 6.4 FloWorks International LLC (v) Capital Goods L+600 1.0% 10/14/26 6.4 6.4 6.4 Frontline Technologies Group LLC (g) Software & Services L+525 1.0% 9/18/23 22.3 22.3 22.3 Frontline Technologies Group LLC (g)(h)(i) Software & Services L+575 1.0% 9/18/23 51.9 51.6 52.0 See notes to consolidated financial statements. 98 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Greystone & Co Inc (g)(h) Diversified Financials L+800 1.0% 4/17/24 $ 36.8 $ 36.6 $ 37.2 Greystone Equity Member Corp (g)(l) Diversified Financials L+725 3.8% 4/1/26 60.8 60.8 60.3 Heniff Transportation Systems LLC (g) Transportation L+575 1.0% 12/3/24 3.4 3.4 3.4 Heniff Transportation Systems LLC (v) Transportation L+575 1.0% 12/3/24 4.8 4.8 4.7 Heniff Transportation Systems LLC (g)(h)(i) Transportation L+575 1.0% 12/3/26 64.4 64.1 64.0 HM Dunn Co Inc (g)(n)(w)(y) Capital Goods L+875 PIK (L+875 Max PIK) 1.0% 12/31/21 0.9 0.6 0.3 HM Dunn Co Inc (g)(y) Capital Goods 15.0% PIK (15.0% Max PIK) 12/31/21 0.3 0.3 0.2 Hudson Technologies Co (g)(l) Commercial & Professional Services L+1,025 1.0% 10/10/23 32.4 32.2 26.8 ID Verde (g)(l) Commercial & Professional Services E+500, 2.3% PIK (2.3% Max PIK) 0.0% 3/29/24 € 30.3 33.3 37.1 ID Verde (g)(l) Commercial & Professional Services L+525, 2.3% PIK (2.3% Max PIK) 0.0% 3/29/24 £ 4.3 5.1 5.9 Individual FoodService (g) Capital Goods L+625 1.0% 11/22/24 $ 0.1 0.1 0.1 Individual FoodService (v) Capital Goods L+625 1.0% 11/22/24 0.4 0.4 0.4 Individual FoodService (g) Capital Goods L+625 1.0% 11/22/25 6.8 6.8 6.8 Individual FoodService (v) Capital Goods L+625 1.0% 11/22/25 0.5 0.5 0.5 Industria Chimica Emiliana Srl (g)(l) Pharmaceuticals, Biotechnology & Life Sciences E+725 0.0% 6/30/26 € 19.3 20.7 23.9 Industria Chimica Emiliana Srl (g)(l) Pharmaceuticals, Biotechnology & Life Sciences E+725 0.0% 9/27/26 8.1 9.3 10.1 Industry City TI Lessor LP (g) Consumer Services 10.8%, 1.0% PIK (1.0% Max PIK) 6/30/26 $ 24.1 24.1 26.4 J S Held LLC (g)(h) Insurance L+600 1.0% 7/1/25 65.5 65.1 66.1 J S Held LLC (v) Insurance L+600 1.0% 7/1/25 1.4 1.4 1.4 J S Held LLC (g) Insurance L+600 1.0% 7/1/25 1.1 1.1 1.1 J S Held LLC (v) Insurance L+600 1.0% 7/1/25 5.1 5.1 5.1 Jarrow Formulas Inc (g)(i) Household & Personal Products L+625 1.0% 11/30/26 57.3 56.6 56.6 Jo-Ann Stores Inc (g)(h)(x) Retailing L+500 1.0% 10/20/23 8.7 8.7 8.5 Kellermeyer Bergensons Services LLC (g)(h)(i) Commercial & Professional Services L+650 1.0% 11/7/26 117.7 117.0 118.9 Kellermeyer Bergensons Services LLC (v) Commercial & Professional Services L+650 1.0% 11/7/26 28.3 28.3 28.6 Kodiak BP LLC (h) Capital Goods L+725 1.0% 12/1/24 10.2 10.2 10.3 Kodiak BP LLC (g)(h) Capital Goods L+725 1.0% 12/1/24 125.0 124.8 126.2 Koosharem LLC (g)(x) Commercial & Professional Services L+450 1.0% 4/18/25 0.0 0.0 0.0 Lexitas Inc (g)(h)(i) Commercial & Professional Services L+600 1.0% 11/14/25 34.7 34.4 34.6 Lexitas Inc (v) Commercial & Professional Services L+600 1.0% 11/14/25 4.3 4.2 4.3 Lexitas Inc (v) Commercial & Professional Services L+600 1.0% 11/14/25 2.5 2.5 2.5 Lipari Foods LLC (g)(h)(i) Food & Staples Retailing L+588 1.0% 1/6/25 84.4 83.8 85.0 Lipari Foods LLC (g) Food & Staples Retailing L+588 1.0% 1/6/25 19.2 19.2 19.3 Matchesfashion Ltd (g)(h)(l) Consumer Durables & Apparel L+463, 1.0% PIK (1.0% Max PIK) 0.0% 10/11/24 12.7 12.1 9.8 Miami Beach Medical Group LLC (v) Health Care Equipment & Services L+650 1.0% 12/14/26 1.4 1.4 1.4 Miami Beach Medical Group LLC (g) Health Care Equipment & Services L+650 1.0% 12/14/26 7.8 7.8 7.8 Micronics Filtration Holdings Inc (g)(n)(w)(y) Capital Goods 7.5% PIK (7.5% Max PIK) 3/29/24 47.6 45.0 35.5 Motion Recruitment Partners LLC (g)(h) Commercial & Professional Services L+650 1.0% 12/19/25 37.5 37.2 33.7 Motion Recruitment Partners LLC (v) Commercial & Professional Services L+650 1.0% 12/19/25 29.8 29.8 29.8 NBG Home (g)(h)(i) Consumer Durables & Apparel L+550 1.0% 4/26/24 69.3 69.0 55.4 NCI Inc (g)(h)(i) Software & Services L+500, 2.5% PIK (2.5% Max PIK) 1.0% 8/15/24 83.5 82.9 59.0 Omnimax International Inc (g)(h) Capital Goods L+725 1.0% 10/8/26 44.7 44.0 44.0 Omnimax International Inc (v) Capital Goods L+725 1.0% 10/8/26 7.7 7.7 7.7 One Call Care Management Inc (g)(x)(y) Health Care Equipment & Services L+525 1.0% 11/27/22 4.9 4.3 4.7 See notes to consolidated financial statements. 99 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) P2 Energy Solutions Inc. (g) Software & Services L+675 1.0% 1/31/25 $ 2.3 $ 2.3 $ 2.2 P2 Energy Solutions Inc. (v) Software & Services L+675 1.0% 1/31/25 4.7 4.7 4.5 P2 Energy Solutions Inc. (g)(h)(i) Software & Services L+675 1.0% 2/2/26 116.5 115.2 111.0 Petroplex Acidizing Inc (g)(n)(w)(y) Energy L+900 PIK (L+900 Max PIK) 1.0% 12/30/21 24.6 22.2 4.5 Polyconcept North America Inc (g)(x) Household & Personal Products L+450 PIK (L+450 Max PIK) 1.0% 8/16/23 21.5 21.2 20.4 Premium Credit Ltd (g)(l) Diversified Financials L+650 0.0% 1/16/26 £ 40.0 51.2 53.9 Project Marron (g)(l) Consumer Services B+575 0.0% 7/3/25 A$ 1.5 1.0 1.0 PSKW LLC (g) Health Care Equipment & Services L+625 1.0% 3/9/26 $ 137.3 135.7 137.6 Qdoba Restaurant Corp (g)(h)(x) Consumer Services L+700 1.0% 3/21/25 11.1 10.9 10.4 Reliant Rehab Hospital Cincinnati LLC (g)(h)(i) Health Care Equipment & Services L+675 0.0% 9/2/24 64.8 64.5 62.4 Revere Superior Holdings Inc (g)(h) Software & Services L+575 1.0% 9/30/26 12.9 12.9 13.0 Revere Superior Holdings Inc (v) Software & Services L+575 1.0% 9/30/26 1.0 1.0 1.0 Roadrunner Intermediate Acquisition Co LLC (h) Health Care Equipment & Services L+675 1.0% 3/15/23 10.7 10.7 10.7 RSC Insurance Brokerage Inc (v) Insurance L+550 1.0% 9/30/26 3.2 3.1 3.2 RSC Insurance Brokerage Inc (g)(h)(i) Insurance L+550 1.0% 10/30/26 98.4 97.8 98.3 RSC Insurance Brokerage Inc (v) Insurance L+550 1.0% 10/30/26 6.3 6.3 6.3 Safe-Guard Products International LLC (g)(i) Diversified Financials L+575 0.0% 1/27/27 40.0 39.6 39.9 Savers Inc (g)(h) Retailing L+800, 0.8% PIK (0.8% Max PIK) 1.5% 3/28/24 44.9 44.6 44.4 Savers Inc (g)(l) Retailing C+850, 0.8% PIK (0.8% Max PIK) 1.5% 3/28/24 C$ 62.4 46.1 49.2 Sequa Corp (h)(x) Capital Goods L+675, 0.0% PIK (1.0% Max PIK) 1.0% 11/28/23 $ 11.4 10.8 11.4 Sequel Youth & Family Services LLC (g) Health Care Equipment & Services L+700 1.0% 9/1/23 13.7 13.7 9.2 Sequel Youth & Family Services LLC (g)(h) Health Care Equipment & Services L+800 1.0% 9/1/23 80.0 80.0 53.7 Sequential Brands Group Inc. (g)(h) Consumer Durables & Apparel L+875 0.0% 2/7/24 59.0 57.8 50.9 Sorenson Communications LLC (h)(x) Telecommunication Services L+650 0.0% 4/29/24 10.1 9.9 10.1 Sound United LLC (g)(h)(z) Consumer Durables & Apparel L+700 1.0% 12/31/23 15.0 15.0 14.9 Sungard Availability Services Capital Inc (g) Software & Services L+375, 3.8% PIK (3.8% Max PIK) 1.0% 7/1/24 0.6 0.7 0.7 Sungard Availability Services Capital Inc (v) Software & Services L+375, 3.8% PIK (3.8% Max PIK) 1.0% 7/1/24 0.3 0.4 0.4 Sweeping Corp of America Inc (g) Commercial & Professional Services L+575 1.0% 11/30/26 10.7 10.6 10.6 Sweeping Corp of America Inc (v) Commercial & Professional Services L+575 1.0% 11/30/26 3.4 3.4 3.4 Sweeping Corp of America Inc (v) Commercial & Professional Services L+575 1.0% 11/30/26 1.7 1.7 1.7 Sweet Harvest Foods Management Co (g)(i) Food & Staples Retailing L+775, 1.0% PIK (1.0% Max PIK) 1.0% 6/23/23 24.4 24.3 24.4 Sweet Harvest Foods Management Co (v) Food & Staples Retailing L+775, 1.0% PIK (1.0% Max PIK) 1.0% 6/23/23 0.8 0.8 0.8 Tangoe LLC (g)(h)(i) Software & Services L+650 1.0% 11/28/25 89.2 88.5 82.5 ThermaSys Corp (g)(y) Capital Goods L+1,100 PIK (L+1,100 Max PIK) 1.0% 1/1/24 7.5 7.9 3.9 ThreeSixty Group (g)(h)(i) Retailing L+375, 3.8% PIK (3.8% Max PIK) 1.5% 3/1/23 51.6 51.3 46.6 ThreeSixty Group (g)(h)(i) Retailing L+375, 3.8% PIK (3.8% Max PIK) 1.5% 3/1/23 51.3 50.9 46.3 Torrid Inc (g)(h) Retailing L+675 1.0% 12/16/24 26.3 26.0 26.3 Trace3 Inc (g)(h) Software & Services L+675 1.0% 8/3/24 89.0 89.0 89.0 Transaction Services Group Ltd (g)(l) Software & Services B+600 0.0% 10/15/26 A$ 7.6 5.0 5.5 Transaction Services Group Ltd (g)(h)(l) Software & Services L+600 0.0% 10/15/26 $ 15.9 15.9 14.8 Transaction Services Group Ltd (g)(l) Software & Services L+600 0.0% 10/15/26 £ 6.1 7.8 7.8 Truck-Lite Co LLC (g) Capital Goods L+625 1.0% 12/13/24 $ 9.3 9.2 9.0 Truck-Lite Co LLC (v) Capital Goods L+625 1.0% 12/13/24 2.5 2.5 2.5 See notes to consolidated financial statements. 100 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Truck-Lite Co LLC (g)(h)(i) Capital Goods L+625 1.0% 12/13/26 $ 125.4 $ 124.1 $ 121.8 Utility One Source LP (h)(x) Capital Goods L+425 0.0% 4/18/25 0.0 0.0 0.0 Virgin Pulse Inc (g)(h)(i) Software & Services L+650 1.0% 5/22/25 115.6 114.9 115.6 Warren Resources Inc (g)(h) Energy L+900, 1.0% PIK (1.0% Max PIK) 1.0% 5/21/21 0.7 0.7 0.7 Wheels Up Partners LLC (g) Transportation L+855 1.0% 10/15/21 4.3 4.3 4.3 Wheels Up Partners LLC (g) Transportation L+855 1.0% 7/15/22 4.6 4.6 4.6 Wheels Up Partners LLC (g) Transportation L+710 1.0% 6/30/24 16.9 16.9 17.1 Wheels Up Partners LLC (g) Transportation L+710 1.0% 11/1/24 7.0 7.0 7.1 Wheels Up Partners LLC (g) Transportation L+710 1.0% 12/21/24 14.9 14.9 15.1 Wheels Up Partners LLC (g) Transportation L+710 1.0% 12/21/24 11.7 11.6 11.8 Zeta Interactive Holdings Corp (g)(h) Software & Services L+750 1.0% 7/29/22 15.8 15.8 15.8 Total Senior Secured Loans—First Lien 3,750.9 3,603.5 Unfunded Loan Commitments (154.0 ) (154.0 ) Net Senior Secured Loans—First Lien 3,596.9 3,449.5 Senior Secured Loans—Second Lien—28.4% Abaco Systems, Inc (g) Capital Goods L+1,050 1.0% 6/7/22 63.4 63.0 63.4 Amtek Global Technology Pte Ltd (g)(j)(l)(n)(w)(z) Automobiles & Components E+500 PIK (E+500 Max PIK) 0.0% 4/4/24 € 44.9 51.3 0.1 athenahealth Inc (g) Health Care Equipment & Services L+850 0.0% 2/11/27 $ 112.9 112.0 114.0 Belk Inc (g)(n)(w) Retailing 10.5% 6/12/23 19.5 14.0 2.7 Belk Inc (g)(n)(w) Retailing 10.5% 10/29/25 99.6 90.5 13.9 Byrider Finance LLC (f)(g) Automobiles & Components L+1,000, 0.5% PIK (0.5% Max PIK) 1.3% 6/7/22 18.0 18.0 17.9 Culligan International Co (g)(h) Household & Personal Products L+850 1.0% 12/13/24 85.0 84.4 85.0 Datatel Inc (g) Software & Services L+800 1.0% 10/9/28 53.7 53.0 53.0 Gruden Acquisition Inc (g)(x) Transportation L+850 1.0% 8/18/23 10.0 9.8 9.2 MedAssets Inc (g) Health Care Equipment & Services L+975 1.0% 4/20/23 63.0 62.2 62.6 NBG Home (g)(n)(w) Consumer Durables & Apparel L+1,275 PIK (L+1,275 Max PIK) 1.0% 9/30/24 27.6 24.7 17.0 NEP Broadcasting LLC (g)(x) Media & Entertainment L+700 0.0% 10/19/26 1.0 1.0 0.9 OEConnection LLC (g) Software & Services L+825 0.0% 9/25/27 34.1 33.7 33.8 Paradigm Acquisition Corp (g)(x) Health Care Equipment & Services L+750 0.0% 10/26/26 1.9 1.9 1.7 Peak 10 Holding Corp (g)(n)(w)(x) Telecommunication Services L+725 0.0% 8/1/25 0.2 0.2 0.1 Petrochoice Holdings Inc (g) Capital Goods L+875 1.0% 8/21/23 65.0 64.1 54.9 Polyconcept North America Inc (g) Household & Personal Products 11.0% PIK (11.0% Max PIK) 2/16/24 8.7 8.6 7.5 Pretium Packaging LLC (g) Household & Personal Products L+825 0.8% 11/6/28 18.6 18.3 18.3 Pure Fishing Inc (g) Consumer Durables & Apparel L+838 1.0% 12/31/26 81.1 80.4 76.0 Rise Baking Company (g)(h) Food, Beverage & Tobacco L+800 1.0% 8/9/26 31.1 30.9 29.1 Sequa Corp (h)(x) Capital Goods L+1,075, 0.0% PIK (6.8% Max PIK) 1.0% 4/28/24 3.6 3.5 3.1 Sorenson Communications LLC (f)(h) Telecommunication Services L+1,150 PIK (L+1,150 Max PIK) 4/30/25 18.4 18.0 18.4 Sound United LLC (g)(z) Consumer Durables & Apparel 13.5% PIK (13.5% Max PIK) 6/30/24 21.8 20.9 20.9 Sparta Systems Inc (g) Software & Services L+825 1.0% 8/21/25 35.1 34.7 34.9 Sungard Availability Services Capital Inc (g) Software & Services L+400, 2.8% PIK (2.8 % Max PIK) 1.0% 8/1/24 1.9 1.9 1.9 Vestcom International Inc (g)(h) Consumer Services L+825 1.0% 12/19/24 70.5 70.1 70.5 WireCo WorldGroup Inc (h)(x) Capital Goods L+900 1.0% 9/30/24 3.4 3.4 2.8 See notes to consolidated financial statements. 101 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) Amortized Cost Fair Value (d) Wittur Holding GmbH (g)(l) Capital Goods E+850, 0.5% PIK (0.5% Max PIK) 0.0% 9/23/27 € 56.7 $ 60.6 $ 66.3 Total Senior Secured Loans—Second Lien 1,035.1 879.9 Other Senior Secured Debt—2.8% Advanced Lighting Technologies Inc (g)(n)(w)(z) Materials L+1,700 PIK (L+1,700 Max PIK) 1.0% 10/4/23 $ 38.3 23.6 — Angelica Corp (n)(t)(w) Health Care Equipment & Services 10.0% PIK (10.0% Max PIK) 12/30/22 48.4 42.3 23.9 Black Swan Energy Ltd (g)(l) Energy 9.0% 1/20/24 6.0 6.0 5.9 JW Aluminum Co (g)(x)(y) Materials 10.3% 6/1/26 39.3 39.4 41.8 Lycra (g)(l)(x) Consumer Durables & Apparel 7.5% 5/1/25 5.4 5.4 4.8 TruckPro LLC (g)(x) Capital Goods 11.0% 10/15/24 2.8 2.6 3.0 Velvet Energy Ltd (g)(l) Energy 9.0% 10/5/23 7.5 7.5 6.2 Total Other Senior Secured Debt 126.8 85.6 Subordinated Debt—5.5% All Systems Holding LLC (g) Commercial & Professional Services 10.0% PIK (10.0% Max PIK) 10/31/22 0.0 0.0 0.0 Ardonagh Group Ltd (g)(l)(x) Insurance 11.5% 1/15/27 $ 0.8 $ 0.8 $ 0.8 athenahealth Inc (g) Health Care Equipment & Services L+1,113 PIK (L+1,113 Max PIK) 2/11/27 71.2 71.2 71.5 ClubCorp Club Operations Inc (g)(x) Consumer Services 8.5% 9/15/25 19.0 18.8 17.8 Cornerstone (Ply Gem Holdings Inc) (g)(x) Capital Goods 8.0% 4/15/26 0.2 0.2 0.2 Craftworks Rest & Breweries Group Inc (g)(n)(w) Consumer Services 14.0% PIK (14.0% Max PIK) 11/1/24 7.3 7.2 — Hilding Anders (g)(l)(n)(z) Consumer Durables & Apparel € 110.5 — — Hilding Anders (g)(l)(n)(z) Consumer Durables & Apparel 24.8 26.9 30.3 Hilding Anders (g)(l)(n)(w)(z) Consumer Durables & Apparel 13.0% PIK (13.0% Max PIK) 6/30/21 118.2 99.4 32.4 Legends Hospitality LLC (g) Consumer Services L+1,000 PIK (L+1,000 Max PIK) 1.0 % 5/6/26 $ 18.2 17.9 17.9 Total Subordinated Debt 242.4 170.9 Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) / Shares Amortized Cost Fair Value (d) Asset Based Finance—30.8% 801 5th Ave, Seattle, Private Equity (g)(l)(n)(z) Real Estate 4,529,676 $ 4.5 $ 10.3 801 5th Ave, Seattle, Structure Mezzanine (g)(l)(z) Real Estate 8.0%, 3.0% PIK (3.0% Max PIK) 12/19/29 $ 29.4 29.4 29.4 Abacus JV, Private Equity (g)(l) Insurance 29,115,242 29.1 31.0 Accelerator Investments Aggregator LP, Private Equity (g)(l)(n) Diversified Financials 4,285,347 5.0 3.8 Altavair AirFinance, Private Equity (g)(l) Capital Goods 46,599,209 46.6 46.6 AMPLIT JV LP, Limited Partnership Interest (g)(l)(n) Diversified Financials N/A 3.8 — Australis Maritime, Common Stock (g)(l) Transportation 19,792,141 19.8 19.6 Avida Holding AB, Common Stock (g)(l)(n)(z) Diversified Financials 328,271,754 35.5 38.3 Bank of Ireland, Class B Credit Linked Floating Rate Note (j)(l) Banks L+1,185 12/4/27 $ 14.7 14.7 14.5 See notes to consolidated financial statements. 102 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) / Shares Amortized Cost Fair Value (d) Byrider Finance LLC, Structured Mezzanine (g) Automobiles & Components L+1,050 0.3 % 6/3/28 $ 2.1 $ 2.1 $ 2.1 Byrider Finance LLC, Structured Mezzanine (v) Automobiles & Components L+1,050 0.3 % 6/3/28 $ 5.5 5.5 5.5 Byrider Finance LLC, Sub Note (g)(l) Automobiles & Components 8.7% 2/17/25 $ 2.1 2.0 2.2 Callodine Commercial Finance LLC, 2L Term Loan A (g) Diversified Financials L+900 1.0 % 11/3/25 $ 37.5 37.5 37.5 Callodine Commercial Finance LLC, 2L Term Loan B (v) Diversified Financials L+900 1.0 % 11/3/25 $ 12.1 12.1 12.1 Capital Automotive LP, Private Equity (g)(l)(n) Real Estate 10,001,344 10.0 10.0 Capital Automotive LP, Structured Mezzanine (g)(l) Real Estate 11.0% PIK (11.0% MAX PIK) 12/22/28 $ 20.0 20.0 20.0 Global Jet Capital LLC, Preferred Stock (f)(g)(n) Commercial & Professional Services 69,429,554 69.4 — Global Jet Capital LLC, Structured Mezzanine (g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 1/30/25 $ 1.3 1.2 1.2 Global Jet Capital LLC, Structured Mezzanine (g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 4/30/25 $ 8.5 7.5 7.4 Global Jet Capital LLC, Structured Mezzanine (g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 9/3/25 $ 1.7 1.5 1.5 Global Jet Capital LLC, Structured Mezzanine (g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 9/29/25 $ 1.6 1.5 1.4 Global Jet Capital LLC, Structured Mezzanine (f)(g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/4/25 $ 99.2 87.9 87.5 Global Jet Capital LLC, Structured Mezzanine (f)(g)(l) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/4/25 $ 22.1 19.6 19.5 Global Jet Capital LLC, Structured Mezzanine (f)(g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/9/25 $ 2.3 2.0 2.0 Global Jet Capital LLC, Structured Mezzanine (f)(g)(l) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/9/25 $ 17.6 15.6 15.5 Global Jet Capital LLC, Structured Mezzanine (f) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 1/29/26 $ 8.5 7.5 7.5 Global Jet Capital LLC, Structured Mezzanine (f)(l) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 1/29/26 $ 1.9 1.7 1.7 Global Jet Capital LLC, Structured Mezzanine (g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 4/14/26 $ 21.2 18.8 18.7 Global Jet Capital LLC, Structured Mezzanine (g) Commercial & Professional Services 15.0% PIK (15.0% Max PIK) 12/2/26 $ 20.9 18.5 18.4 Global Lending Services LLC, Private Equity (g)(l) Diversified Financials 5,092,915 5.1 5.7 Global Lending Services LLC, Private Equity (g)(l) Diversified Financials 1,836,896 1.8 1.9 Home Partners JV, Common Stock (g)(l)(n)(y) Real Estate 16,886,437 16.9 21.5 Home Partners JV, Private Equity (g)(l)(n)(x)(y) Real Estate 585,960 0.6 0.0 Home Partners JV, Structured Mezzanine (g)(l)(y) Real Estate 11.0% PIK (11.0% Max PIK) 3/25/29 $ 38.5 38.5 38.5 Home Partners JV, Structured Mezzanine (l)(v)(y) Real Estate 11.0% PIK (11.0% Max PIK) 3/25/29 $ 9.7 9.7 9.7 Kilter Finance, Preferred Stock (g)(l)(z) Insurance 6.0%, 6.0% PIK (6.0% Max PIK) 228,173 0.2 0.2 Kilter Finance, Private Equity (g)(l)(n)(z) Insurance 247,441 0.2 0.2 KKR Central Park Leasing Aggregator L.P., Partnership Interest (g)(l) Capital Goods 16.0% 5/31/23 N/A 39.1 38.8 KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest (g)(l) Capital Goods 18,232,157 18.2 20.2 Lenovo Group Ltd, Structured Mezzanine (g)(l) Technology Hardware & Equipment 8.0% 6/22/22 € 7.4 8.4 9.0 Lenovo Group Ltd, Structured Mezzanine (g)(l) Technology Hardware & Equipment 12.0% 6/22/22 $ 4.7 5.3 5.7 Opendoor Labs Inc, 2L Term Loan (g)(l) Real Estate 10.0% 1/23/26 $ 23.6 23.6 23.6 Opendoor Labs Inc, 2L Term Loan (l)(v) Real Estate 10.0% 1/23/26 $ 47.1 47.1 47.1 Orchard Marine Limited, Class B Common Stock (g)(l)(n)(y) Transportation 1,964 3.1 — Orchard Marine Limited, Series A Preferred Stock (g)(l)(n)(y) Transportation 62,976 62.0 24.6 Prime ST LLC, Private Equity (g)(l)(n)(z) Real Estate 3,058,733 3.1 3.9 Prime ST LLC, Structured Mezzanine (g)(l)(z) Real Estate 5.0%, 6.0% PIK (6.0% Max PIK) 3/12/30 $ 22.8 22.8 22.8 See notes to consolidated financial statements. 103 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Principal Amount (c) / Shares Amortized Cost Fair Value (d) Rampart CLO 2007 1A Class Subord. (g)(l)(n) Diversified Financials 10/25/21 $ 10.0 $ — $ — Sofi Lending Corp, Purchase Facility (g)(l) Diversified Financials 32,231,687 32.2 32.6 Star Mountain Diversified Credit Income Fund III, LP, Private Equity (l)(p) Diversified Financials 12,500,000 12.5 12.1 Toorak Capital Funding LLC, Membership Interest (g)(l)(z) Real Estate N/A 5.5 6.6 Toorak Capital Partners LLC, Private Equity (g)(z) Real Estate N/A 195.8 235.9 Wind River CLO Ltd. 2012 1A Class Subord. B (g)(l)(n) Diversified Financials 1/15/26 $ 42.5 17.5 — Total Asset Based Finance 1,099.5 1,025.8 Unfunded Asset Based Finance Commitments (74.4 ) (74.4 ) Net Asset Based Finance 1,025.1 951.4 Strategic Credit Opportunities Partners, LLC—23.0% Strategic Credit Opportunities Partners, LLC (g)(l)(z) Diversified Financials $ 810.3 $ 810.3 $ 712.5 Total Strategic Credit Opportunities Partners, LLC 810.3 712.5 Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Number of Shares Amortized Cost Fair Value (d) Equity/Other—17.1% (m) Advanced Lighting Technologies Inc, Common Stock (g)(n)(z) Materials 587,637 $ 16.5 $ — Advanced Lighting Technologies Inc, Warrant (g)(n)(z) Materials 10/4/27 9,262 0.1 — Alion Science & Technology Corp, Class A Membership Interest (g)(n) Capital Goods 7,350,267 7.3 12.4 All Systems Holding LLC, Common Stock (g)(n) Commercial & Professional Services 586,763 0.6 0.9 Amtek Global Technology Pte Ltd, Ordinary Shares (j)(l)(n)(z) Automobiles & Components 5,735,804,056 30.7 — Amtek Global Technology Pte Ltd, Private Equity (j)(l)(n)(z) Automobiles & Components 4,097 — — Amtek Global Technology Pte Ltd, Trade Claim (j)(l)(n)(z) Automobiles & Components 1,190,759 1.0 — Angelica Corp, Limited Partnership Interest (n)(t) Health Care Equipment & Services 877,044 47.6 — Ap Plasman Inc, Warrant (g)(l)(n) Capital Goods 5/25/26 6,985 2.5 — Ardonagh Ltd, Ordinary Shares (g)(l)(n) Insurance 16,450 — — Ardonagh Ltd, Ordinary Shares (g)(l)(n) Insurance 116,814 0.2 0.2 Ardonagh Ltd, Preferred Stock (g)(l)(n) Insurance 6,113,719 9.1 9.7 Arena Energy LP, Warrants (g)(n) Energy 9,740,932 0.0 0.0 Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock (n)(o) Energy 10,193 9.7 2.3 Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim (o) Energy 86,607,143 19.4 19.3 ASG Technologies, Common Stock (g)(n)(y) Software & Services 1,149,421 23.4 42.7 ASG Technologies, Warrant (g)(n)(y) Software & Services 6/27/22 229,541 6.5 3.5 Aspect Software Inc, Common Stock (g)(n) Software & Services 161,261 0.3 0.3 See notes to consolidated financial statements. 104 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Number of Shares Amortized Cost Fair Value (d) Aspect Software Inc, Warrant (g)(n) Software & Services 1/15/24 161,008 $ — $ 0.2 AVF Parent LLC, Trade Claim (g)(n) Retailing 56,969 — — Belk Inc, Units (g)(n) Retailing 1,642 7.8 — Borden (New Dairy Opco), Common Stock (n)(t)(y) Food, Beverage & Tobacco 4,466,800 3.9 3.2 Cengage Learning, Inc, Common Stock (g)(n) Media & Entertainment 227,802 7.5 3.3 Charlotte Russe Inc, Common Stock (g)(n)(y) Retailing 22,575 12.5 — Chisholm Oil & Gas Operating LLC, Series A Units (n)(p) Energy 75,000 0.1 — CTI Foods Holding Co LLC, Common Stock (g)(n) Food, Beverage & Tobacco 5,836 0.7 0.0 Directed LLC, Warrant (g)(n) Consumer Durables & Apparel 12/31/25 649,538 — — Empire Today LLC, Common Stock (g)(n) Retailing 375 1.1 3.3 Fronton BV, Common Stock (n)(p)(y) Consumer Services 14,943 — 1.2 Genesys Telecommunications Laboratories Inc, Class A Shares (g)(n) Technology Hardware & Equipment 40,529 — — Genesys Telecommunications Laboratories Inc, Ordinary Shares (g)(n) Technology Hardware & Equipment 41,339 — — Genesys Telecommunications Laboratories Inc, Preferred Stock (g)(n) Technology Hardware & Equipment 1,050,465 — — Harvey Industries Inc, Common Stock (g)(n) Capital Goods 2,333,333 — 1.9 Hilding Anders, Class A Common Stock (g)(l)(n)(z) Consumer Durables & Apparel 4,503,411 0.1 — Hilding Anders, Class B Common Stock (g)(l)(n)(z) Consumer Durables & Apparel 574,791 — — Hilding Anders, Class C Common Stock (g)(l)(n)(z) Consumer Durables & Apparel 213,201 — — Hilding Anders, Equity Options (g)(l)(n)(z) Consumer Durables & Apparel 11/30/25 236,160,807 15.0 — HM Dunn Co Inc, Preferred Stock, Series A (g)(n)(y) Capital Goods 214 0.0 — HM Dunn Co Inc, Preferred Stock, Series B (g)(n)(y) Capital Goods 214 — — Home Partners of America Inc, Common Stock (g)(n)(y) Real Estate 81,625 83.6 130.5 Home Partners of America Inc, Warrant (g)(n)(y) Real Estate 8/7/24 2,675 0.3 2.1 Imagine Communications Corp, Common Stock (g)(n) Media & Entertainment 33,034 3.8 2.9 Jones Apparel Holdings, Inc., Common Stock (g)(n) Consumer Durables & Apparel 5,451 0.9 — JW Aluminum Co, Common Stock (f)(g)(n)(y) Materials 1,474 — — JW Aluminum Co, Preferred Stock (f)(g)(y) Materials 12.5% PIK (12.5% Max PIK) 2/15/28 8,404 107.3 93.7 Maverick Natural Resources, Common Stock (n) Energy 160,101 44.0 48.6 MB Precision Holdings LLC, Class A - 2 Units (n)(p) Capital Goods 1,426,110 0.5 — Miami Beach Medical Group LLC, Common Stock (g)(n) Health Care Equipment & Services 269,107 0.3 0.3 Micronics Filtration Holdings Inc, Common Stock (g)(n)(y) Capital Goods 53,073 0.6 — Micronics Filtration Holdings Inc, Preferred Stock, Series A (g)(n)(y) Capital Goods 55 0.6 — Micronics Filtration Holdings Inc, Preferred Stock, Series B (g)(n)(y) Capital Goods 23 0.2 — Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK (g)(y) Capital Goods 3.0% PIK (3.0% Max PIK) 3/31/24 112,780 — — Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK (g)(y) Capital Goods 7.5% PIK (7.5% Max PIK) 3/31/24 54,000 — — NBG Home, Common Stock (g)(n) Consumer Durables & Apparel 1,903 2.6 — See notes to consolidated financial statements. 105 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company (a) Footnotes Industry Rate (b) Floor Maturity Number of Shares Amortized Cost Fair Value (d) Nine West Holdings Inc, Common Stock (g)(n) Consumer Durables & Apparel 5,451 $ 6.5 $ — One Call Care Management Inc, Common Stock (g)(n)(y) Health Care Equipment & Services 4,370,566,806 3.0 2.4 One Call Care Management Inc, Preferred Stock A (g)(n)(y) Health Care Equipment & Services 466,194 32.3 25.5 One Call Care Management Inc, Preferred Stock B (g)(y) Health Care Equipment & Services 9.0% PIK (9.0% Max PIK) 10/25/29 9,615,247 9.8 10.6 Petroplex Acidizing Inc, Preferred Stock A (g)(y) Energy 2.0% PIK (2.0% Max PIK) 24,642,082 4.5 — Petroplex Acidizing Inc, Warrant (g)(n)(y) Energy 12/15/26 8 — — Polyconcept North America Inc, Class A - 1 Units (g)(n) Household & Personal Products 29,376 2.9 2.1 Proserv Acquisition LLC, Class A Common Units (g)(l)(n)(y) Energy 2,635,005 33.5 9.0 Proserv Acquisition LLC, Class A Preferred Units (g)(l)(n)(y) Energy 837,780 5.4 9.5 Quorum Health Corp, Common Stock (g)(n) Health Care Equipment & Services 32,622 0.3 0.3 Quorum Health Corp, Trade Claim (g)(n) Health Care Equipment & Services 3,334,000 0.3 0.3 Quorum Health Corp, Trust Initial Funding Units (g)(n) Health Care Equipment & Services 57,595 0.1 0.1 Ridgeback Resources Inc, Common Stock (f)(l)(n) Energy 324,954 2.0 1.3 Sequential Brands Group Inc., Common Stock (g)(x) Consumer Durables & Apparel 5,167 2.8 0.1 Sorenson Communications LLC, Common Stock (f)(n) Telecommunication Services 46,163 — 42.3 Sound United LLC, Class A Units (g)(n)(z) Consumer Durables & Apparel 649,538 1.1 — Sound United LLC, Common Stock (g)(n)(z) Consumer Durables & Apparel 12,857,143 17.3 29.3 Sound United LLC, Series I Units (g)(n)(z) Consumer Durables & Apparel 308,948 0.5 — Sound United LLC, Series II Units (n)(p)(z) Consumer Durables & Apparel 316,770 0.5 — SSC (Lux) Limited S.a r.l., Common Stock (g)(l)(n) Health Care Equipment & Services 113,636 2.3 4.9 Stuart Weitzman Inc, Common Stock (g)(n) Consumer Durables & Apparel 5,451 — — Sungard Availability Services Capital Inc, Common Stock (f)(g)(n) Software & Services 44,857 3.1 1.5 Sweet Harvest Foods Management Co, Warrant (g)(i)(n) Food & Staples Retailing 6/30/30 2,883,007 — 1.1 ThermaSys Corp, Common Stock (f)(g)(n)(y) Capital Goods 17,383,026 10.2 — ThermaSys Corp, Preferred Stock (g)(n)(y) Capital Goods 1,529 1.7 — Trace3 Inc, Common Stock (g)(n) Software & Services 19,312 0.2 1.4 Versatile Processing Group Inc, Class A - 2 Units (f)(n) Materials 3,637,500 3.6 — Warren Resources Inc, Common Stock (g)(n) Energy 113,515 0.5 0.1 Zeta Interactive Holdings Corp, Preferred Stock, Series E - 1 (g)(n) Software & Services 215,662 1.7 2.2 Zeta Interactive Holdings Corp, Preferred Stock, Series F (g)(n) Software & Services 196,151 1.7 3.4 Zeta Interactive Holdings Corp, Warrant (g)(n) Software & Services 4/20/27 29,422 — 0.1 Total Equity/Other 616.1 530.0 TOTAL INVESTMENTS - 219.0% $ 7,452.7 6,779.8 LIABILITIES IN EXCESS OF OTHER ASSETS—(119.0%) (3,683.8 ) NET ASSETS— 100% $ 3,096.0 See notes to consolidated financial statements. 106 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Foreign currency forward contracts Foreign Currency Settlement Date Counterparty Amount and Transaction US$ Value at Settlement Date US$ Value at December 31, 2020 Unrealized Appreciation (Depreciation) AUD 10/17/2022 JP Morgan Chase Bank A$ 3.0 Sold $ 2.1 $ 2.3 $ (0.2 ) EUR 5/6/2022 JP Morgan Chase Bank € 6.1 Sold 7.5 7.5 — EUR 7/17/2023 JP Morgan Chase Bank € 1.3 Sold 1.7 1.6 0.1 EUR 8/8/2025 JP Morgan Chase Bank € 4.8 Sold 5.7 6.1 (0.4 ) GBP 10/13/2021 JP Morgan Chase Bank £ 0.6 Sold 0.9 0.8 0.1 GBP 10/13/2021 JP Morgan Chase Bank £ 0.6 Bought (0.8 ) (0.8 ) — GBP 1/11/2023 JP Morgan Chase Bank £ 2.0 Bought (2.7 ) (2.7 ) — GBP 1/11/2023 JP Morgan Chase Bank £ 7.0 Sold 9.4 9.6 (0.2 ) GBP 1/11/2023 JP Morgan Chase Bank £ 1.9 Sold 2.9 2.7 0.2 GBP 1/11/2023 JP Morgan Chase Bank £ 1.7 Sold 2.6 2.4 0.2 GBP 1/11/2023 JP Morgan Chase Bank £ 3.4 Sold 4.8 4.7 0.1 GBP 1/11/2023 JP Morgan Chase Bank £ 1.4 Sold 1.9 1.9 — NOK 8/8/2025 JP Morgan Chase Bank NOK 49.1 Sold 5.2 5.6 (0.4 ) SEK 8/8/2025 JP Morgan Chase Bank SEK 119.3 Sold 13.3 14.8 (1.5 ) Total $ 54.5 $ 56.5 $ (2.0 ) (a) Security may be an obligation of one or more entities affiliated with the named company. (b) Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of December 31, 2020, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.24%, the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Canadian Dollar Offer Rate, or CDOR, was 0.48% and the U.S. Prime Lending Rate, or Prime, was 3.25%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. (c) Denominated in U.S. dollars unless otherwise noted. (d) Fair value determined by the Company’s board of directors (see Note 8). (e) Not used. (f) Security or portion thereof held within Race Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with ING Capital LLC (see Note 9). (g) Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9). (h) Security or portion thereof held within FS KKR MM CLO 1 LLC (see Note 9). (i) Security or portion thereof was held within CCT Tokyo Funding LLC and was pledged as collateral supporting the amounts outstanding under the revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9). (j) Security or portion thereof was held within CCT Dublin Funding Limited See notes to consolidated financial statements. 107 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) (k) Not used. (l) The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of December 31, 2020, 73.4% of the Company’s total assets represented qualifying assets. (m) Listed investments may be treated as debt for GAAP or tax purposes. (n) Security is non-income producing. (o) Security held within IC American Energy Investments, Inc., a wholly-owned subsidiary of the Company. (p) Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company. (q) Security held within IC Arches Investments LLC, a wholly-owned subsidiary of the Company. (r) Not used. (s) Not used. (t) Security held within CCT Holdings II, LLC, a wholly-owned subsidiary of the Company. (u) Not used. (v) Security is an unfunded commitment. Reflects the stated spread at the time of commitment, but may not be the actual rate received upon funding. (w) Asset is on non-accrual status. (x) Security is classified as Level 1 or 2 in the Company’s fair value hierarchy (see Note 8). (y) Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2020, the Company held investments in portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person as of December 31, 2020: Portfolio Company Fair Value at December 31, 2019 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2020 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Senior Secured Loans—First Lien AltEn, LLC $ 1.5 $ — $ — $ (2.7 ) $ 1.2 $ — $ — $ — — — Borden (New Dairy Opco) — 7.6 — — — 7.6 0.1 — — — Borden (New Dairy Opco) — 16.8 — — — 16.8 0.6 — — — Borden Dairy Co (4) — 70.7 (11.6 ) (35.0 ) (24.1 ) — — — — — HM Dunn Co Inc 0.4 — — — (0.1 ) 0.3 — — — — HM Dunn Co Inc 0.1 0.2 — — (0.1 ) 0.2 — — — — See notes to consolidated financial statements. 108 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2019 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2020 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) MB Precision Holdings LLC $ 4.6 $ 0.2 $ (3.9 ) $ (0.8 ) $ (0.1 ) $ — $ 0.3 $ — — — Micronics Filtration Holdings Inc (4) — 61.6 — (16.6 ) (9.5 ) 35.5 — — — — One Call Care Management Inc 4.6 0.1 — — — 4.7 0.5 — — — Petroplex Acidizing Inc 22.2 — — — (17.7 ) 4.5 — — — — Safariland LLC 2.6 — (2.5 ) (0.3 ) 0.2 — — — — — Safariland LLC 116.2 8.8 (117.4 ) (14.7 ) 7.1 — 1.3 — — — ThermaSys Corp 6.4 0.8 — — (3.3 ) 3.9 0.2 0.6 — — Z Gallerie LLC — 0.9 (1.5 ) 0.6 — — — — — — Senior Secured Loans—Second Lien Z Gallerie LLC 2.8 — (2.0 ) (0.9 ) 0.1 — 0.1 — 0.1 — Other Senior Secured Debt JW Aluminum Co 38.3 2.9 — — 0.6 41.8 3.9 — — — Mood Media Corp 36.4 3.6 — (40.5 ) 0.5 — 0.4 — — — Z Gallerie LLC — — — — — — — — — — Z Gallerie LLC 1.4 — — (1.5 ) 0.1 — — — 0.1 — Asset Based Finance Home Partners JV, Common Stock 13.2 4.4 — — 3.9 21.5 — — — — Home Partners JV, Private Equity — — — — — — — — — — Home Partners JV, Structured Mezzanine 25.0 14.0 (0.5 ) — — 38.5 — 3.3 — — Orchard Marine Limited, Class B Common Stock — — — — — — — — — — Orchard Marine Limited, Series A Preferred Stock 22.7 — — — 1.9 24.6 — — — — Equity/Other AltEn, LLC, Membership Units — — — (3.0 ) 3.0 — — — — — ASG Technologies, Common Stock 56.5 — — — (13.8 ) 42.7 — — — — ASG Technologies, Warrants 6.3 — — — (2.8 ) 3.5 — — — — Borden (New Dairy Opco), Common Stock — 3.9 — — (0.7 ) 3.2 — — — Charlotte Russe Inc, Common Stock — — — — — — — — — — Fronton BV, Common Stock 1.4 — — — (0.2 ) 1.2 — — — — HM Dunn Co Inc, Preferred Stock, Series A — — — — — — — — — — HM Dunn Co Inc, Preferred Stock, Series B — — — — — — — — — — Home Partners of America Inc, Common Stock 134.1 — — — (3.6 ) 130.5 — — — — Home Partners of America Inc, Warrant 2.0 — — — 0.1 2.1 — — — — JW Aluminum Co, Common Stock — — — — — — — — — — JW Aluminum Co, Preferred Stock 127.2 16.9 — — (50.4 ) 93.7 2.4 14.6 — — MB Precision Holdings LLC, Class A - 2 Units — — (0.5 ) — 0.5 — — — — — MB Precision Holdings LLC, Preferred Stock 1.2 — — (1.9 ) 0.7 — — — — — Micronics Filtration Holdings Inc, Common Stock (4) — 0.6 — — (0.6 ) — — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series A (4) — 0.6 — — (0.6 ) — — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series B (4) — 0.2 — — (0.2 ) — — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK (4) — — — — — — — — — — Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK (4) — — — — — — — — — — See notes to consolidated financial statements. 109 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2019 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2020 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Mood Media Corp, Common Stock $ 0.9 $ — $ — $ (11.8 ) $ 10.9 $ — $ — $ — — — Mood Media LLC, Class A Warrants — — — — — — — — — — Mood Media LLC, Class B Warrants — — — — — — — — — — Mood Media LLC, Class C Warrants — — — — — — — — — — One Call Care Management Inc, Common Stock 3.0 — — — (0.6 ) 2.4 — — — — One Call Care Management Inc, Preferred Stock A 32.3 — — — (6.8 ) 25.5 — — — — One Call Care Management Inc, Preferred Stock B 9.8 — — — 0.8 10.6 — 0.9 — — Petroplex Acidizing Inc, Preferred Stock A 4.2 0.3 — — (4.5 ) — — — — 0.4 Petroplex Acidizing Inc, Warrant — — — — — — — — — — Proserv Acquisition LLC, Class A Common Units 14.4 — — — (5.4 ) 9.0 — — — — Proserv Acquisition LLC, Class A Preferred Units 9.5 — — — — 9.5 — — — — Safariland LLC, Common Equity 6.4 — (1.0 ) (2.0 ) (3.4 ) — — — — — ThermaSys Corp, Common Stock 6.9 — — — (6.9 ) — — — — — ThermaSys Corp, Preferred Stock 1.5 — — — (1.5 ) — — — — — Z Gallerie LLC, Common Stock 0.7 — — (0.7 ) — — — — — — Total $ 716.7 $ 215.1 $ (140.9 ) $ (131.8 ) $ (125.3 ) $ 533.8 $ 9.8 $ 19.4 $ 0.2 $ 0.4 (1) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. (2) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. (3) Interest, PIK, fee and dividend income presented for the full year ended December 31, 2020. (4) The Company held this investment as of December 31, 2019 but it was not deemed to be an “affiliated person” of the portfolio company as of December 31, 2019. Transfers in or out have been presented at amortized cost. (z) Under the Investment Company Act of 1940, as amended, the Company generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of December 31, 2020, the Company held investments in one portfolio company of which it is deemed to be an “affiliated person” and deemed to “control”. During the year ended December 31, 2020, the Company disposed of investments in one portfolio of which it was deemed to be an “affiliated person” and deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person and deemed to control as of December 31, 2020: Portfolio Company Fair Value at December 31, 2019 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2020 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Senior Secured Loans—First Lien Advanced Lighting Technologies Inc $ 13.1 $ — $ (1.5 ) $ — $ 0.4 $ 12.0 $ — $ — $ — $ — Amtek Global Technology Pte Ltd 55.3 5.8 — — (1.4 ) 59.7 3.0 — — — Sound United LLC — 27.4 (12.5 ) — — 14.9 0.3 — — — See notes to consolidated financial statements. 110 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2019 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2020 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Senior Secured Loans—Second Lien Amtek Global Technology Pte Ltd $ 36.3 $ 6.5 $ (0.1 ) $ — $ (42.6 ) $ 0.1 $ — $ — $ — $ — Sound United LLC — 22.8 (1.9 ) — — 20.9 — 0.7 — — Other Senior Secured Debt Advanced Lighting Technologies Inc — — — — — — — — — — Subordinated Debt Hilding Anders 76.8 — (26.9 ) (3.0 ) (14.5 ) 32.4 — — — — Hilding Anders 0.2 — — (0.5 ) 0.3 — — — — — Hilding Anders — — — (0.9 ) 0.9 — — — — — Hilding Anders 3.6 — — (12.9 ) 9.3 — — — — — Hilding Anders — — — — — — — — — — Hilding Anders — 26.9 — — 3.4 30.3 — — — — Asset Based Finance 801 5th Ave, Seattle, Structure Mezzanine 52.9 0.9 (24.4 ) — — 29.4 3.2 1.4 — — 801 5th Ave, Seattle, Private Equity 8.8 — (6.3 ) 2.0 5.8 10.3 — — — — Avida Holding AB, Common Stock — 35.5 — — 2.8 38.3 — — — — Kilter Finance, Preferred Stock — 0.2 — — — 0.2 — — — — Kilter Finance, Private Equity — 0.2 — — — 0.2 — — — — Prime ST LLC, Private Equity — 5.7 (0.3 ) (2.3 ) 0.8 3.9 — — — — Prime ST LLC, Structured Mezzanine — 41.4 (18.6 ) — — 22.8 0.6 1.7 — — Toorak Capital Funding LLC, Membership Interest 5.3 3.8 (2.5 ) — — 6.6 — — — — Toorak Capital Partners LLC, Private Equity 240.5 11.5 (4.4 ) — (11.7 ) 235.9 — — — 9.6 Strategic Credit Opportunities Partners, LLC Strategic Credit Opportunities Partners, LLC 479.0 319.4 — — (85.9 ) 712.5 — — — 70.4 Equity/Other Advanced Lighting Technologies Inc, Common Stock — — — — — — — — — — Advanced Lighting Technologies Inc, Warrant — — — — — — — — — — Amtek Global Technology Pte Ltd, Ordinary Shares 5.2 — — — (5.2 ) — — — — — Amtek Global Technology Pte Ltd, Trade Claim 0.6 — — — (0.6 ) — — — — — Amtek Global Technology Pte Ltd, Private Equity — — — — — — — — — — Hilding Anders, ARLE PIK Interest — — — — — — — — — — Hilding Anders, Class A Common Stock — — — — — — — — — — Hilding Anders, Class B Common Stock — — — — — — — — — — Hilding Anders, Class C Common Stock — — — — — — — — — — Hilding Anders, Equity Options 1.3 — — — (1.3 ) — — — — — KKR BPT Holdings Aggregator LLC, Membership Interest — — (0.4 ) (17.2 ) 17.6 — — — — — Sound United LLC, Class A Units — 1.1 — — (1.1 ) — — — — — Sound United LLC, Common Stock — 17.3 — — 12.0 29.3 — — — — See notes to consolidated financial statements. 111 Table of Contents FS KKR Capital Corp. Consolidated Schedule of Investments (continued) As of December 31, 2020 (in millions, except share amounts) Portfolio Company Fair Value at December 31, 2019 Gross Additions (1) Gross Reductions (2) Net Realized Gain (Loss) Net Change in Unrealized Appreciation (Depreciation) Fair Value at December 31, 2020 Interest Income (3) PIK Income (3) Fee Income (3) Dividend Income (3) Sound United LLC, Series I Units $ — $ 0.5 $ — $ — $ (0.5 ) $ — $ — $ — $ — $ — Sound United LLC, Series II Units — 0.5 — — (0.5 ) — — — — — Total $ 978.9 $ 527.4 $ (99.8 ) $ (34.8 ) $ (112.0 ) $ 1,259.7 $ 7.1 $ 3.8 $ — $ 80.0 (1) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category. (2) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category. (3) Interest, PIK and dividend income presented for the full year ended December 31, 2020. See notes to consolidated financial statements. 112 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (in millions, except share and per share amounts) Note 1. Principal Business and Organization FS KKR Capital Corp. (NYSE: FSK), or the Company, was incorporated under the general corporation laws of the State of Maryland on December 21, 2007 and formally commenced investment operations on January 2, 2009. The Company is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940, as amended, or the 1940 Act. In addition, the Company has elected to be treated for U.S. federal income tax purposes, and intends to qualify annually, as a regulated investment company, or RIC, as defined under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. As of December 31, 2021, the Company had various wholly-owned subsidiaries, including special-purpose financing subsidiaries and subsidiaries through which it holds interests in portfolio companies. The consolidated financial statements include both the Company’s accounts and the accounts of its wholly-owned subsidiaries as of December 31, 2021. All intercompany transactions have been eliminated in consolidation. Certain of the Company’s consolidated subsidiaries are subject to U.S. federal and state income taxes. The Company’s investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The Company’s portfolio is comprised primarily of investments in senior secured loans and second lien secured loans of private middle-market U.S. companies and, to a lesser extent, subordinated loans and certain asset-based financing loans of private U.S. companies. In addition, a portion of the Company’s portfolio may be comprised of equity and equity-related securities, corporate bonds, structured products, other debt securities and derivatives, including total return swaps and credit default swaps. The Company is externally managed by FS/KKR Advisor, LLC, or the Advisor, pursuant to an investment advisory agreement, dated as of June 16, 2021, or the investment advisory agreement. Prior to entering into the investment advisory agreement, the Company was a party to an investment advisory agreement, dated as of December 20, 2018, with the Advisor, or the prior investment advisory agreement, which remained in effect until June 16, 2021. On June 15, 2020, the Company filed Articles of Amendment to its Articles of Incorporation, or the Reverse Stock Split Amendment, with the State Department of Assessments and Taxation of the State of Maryland to effect a 4 to 1 reverse split of the Company’s shares of common stock, or the Reverse Stock Split. The Reverse Stock Split became effective in accordance with the terms of the Reverse Stock Split Amendment on June 15, 2020. The Reverse Stock Split affected all shareholders uniformly and did not alter any shareholder’s percentage interest in the Company’s equity, except to the extent that the Reverse Stock Split resulted in some shareholders owning a fractional share. In that regard, no fractional shares were issued in connection with the Reverse Stock Split. Shareholders of record who would have otherwise been entitled to receive a fractional share instead received a cash payment based on the closing price of the Company’s common stock as reported on the NYSE as of June 15, 2020. On June 16, 2021, the Company completed its acquisition, or the 2021 Merger, of FS KKR Capital Corp. II, or FSKR, pursuant to that certain Agreement and Plan of Merger, or the 2020 Merger Agreement, dated as of November 23, 2020, by and among the Company, FSKR, Rocky Merger Sub, Inc., a former wholly-owned subsidiary of the Company, or Merger Sub, and the Advisor. See Note 13 for a discussion of the 2021 Merger. Note 2. Summary of Significant Accounting Policies Basis of Presentation: The accompanying audited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The Company is considered an investment company under GAAP and follows the accounting and reporting guidance applicable to investment companies under Financial Accounting Standards Board, or the FASB, Accounting Standards Codification Topic 946, Financial Services—Investment Companies . The Company has evaluated the impact of subsequent events through the date the consolidated financial statements were issued and filed with the U.S. Securities and Exchange Commission, or the SEC. Use of Estimates: The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 113 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 2. Summary of Significant Accounting Policies (continued) Cash and Cash Equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. All cash balances are maintained with high credit quality financial institutions, which are members of the Federal Deposit Insurance Corporation. Valuation of Portfolio Investments: The Company determines the net asset value of its investment portfolio each quarter. Securities are valued at fair value as determined in good faith by the Company’s board of directors. In connection with that determination, the Advisor provides the Company’s board of directors with portfolio company valuations which are based on relevant inputs, including, but not limited to, indicative dealer quotes, values of like securities, recent portfolio company financial statements and forecasts, and valuations prepared by independent third-party valuation services. Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosure , or ASC Topic 820, issued by the FASB clarifies the definition of fair value and requires companies to expand their disclosure about the use of fair value to measure assets and liabilities in interim and annual periods subsequent to initial recognition. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. With respect to investments for which market quotations are not readily available, the Company undertakes a multi-step valuation process each quarter, as described below: • the Company’s quarterly fair valuation process begins by the Advisor providing financial and operating information with respect to each portfolio company or investment to the Company’s independent third-party valuation service providers; • the Company’s independent third-party valuation service providers review this information, along with other public and private information, and provide the Advisor with a valuation range for each portfolio company or investment; • the Advisor then discusses the independent third-party valuation service providers’ valuation ranges and provides the valuation committee of the board of directors, or the valuation committee, with a valuation recommendation for each investment, along with supporting materials; • preliminary valuations are then discussed with the valuation committee; • the Company’s valuation committee reviews the preliminary valuations and the Advisor, together with the Company’s independent third-party valuation service providers and, if applicable, supplements the preliminary valuations to reflect any comments provided by the valuation committee; • following the completion of its review, the Company’s valuation committee recommends that the Company’s board of directors approves the fair valuations determined by the valuation committee; and • the Company’s board of directors discusses the valuations and determines the fair value of each such investment in the Company’s portfolio in good faith based on various statistical and other factors, including the input and recommendation of the Advisor, the valuation committee and the Company’s independent third-party valuation service providers. Determination of fair value involves subjective judgments and estimates. Accordingly, these notes to the Company’s audited consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations and any change in such valuations on the Company’s consolidated financial statements. In making its determination of fair value, the Company’s board of directors may use any approved independent third-party pricing or valuation services. However, the Company’s board of directors is not required to determine fair value in accordance with the valuation provided by any single 114 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 2. Summary of Significant Accounting Policies (continued) source, and may use any relevant data, including information obtained from the Advisor or any approved independent third-party valuation or pricing service that the Company’s board of directors deems to be reliable in determining fair value under the circumstances. Below is a description of factors that the Advisor, any approved independent third-party valuation services and the Company’s board of directors may consider when determining the fair value of the Company’s investments. Valuation of fixed income investments, such as loans and debt securities, depends upon a number of factors, including prevailing interest rates for like securities, expected volatility in future interest rates, call features, put features and other relevant terms of the debt. For investments without readily available market prices, the Company may incorporate these factors into discounted cash flow models to arrive at fair value. Other factors that may be considered include the borrower’s ability to adequately service its debt, the fair market value of the borrower in relation to the face amount of its outstanding debt and the quality of collateral securing the Company’s debt investments. For convertible debt securities, fair value generally approximates the fair value of the debt plus the fair value of an option to purchase the underlying security (i.e., the security into which the debt may convert) at the conversion price. To value such an option, a standard option pricing model may be used. The Company’s equity interests in portfolio companies for which there is no liquid public market are valued at fair value. The Company’s board of directors, in its determination of fair value, may consider various factors, such as multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues or, in limited instances, book value or liquidation value. All of these factors may be subject to adjustments based upon the particular circumstances of a portfolio company or the Company’s actual investment position. For example, adjustments to EBITDA may take into account compensation to previous owners or acquisition, recapitalization, restructuring or other related items. The Advisor, any approved independent third-party valuation services and the Company’s board of directors may also consider private merger and acquisition statistics, public trading multiples discounted for illiquidity and other factors, valuations implied by third-party investments in the portfolio companies or industry practices in determining fair value. The Advisor, any approved independent third-party valuation services and the Company’s board of directors may also consider the size and scope of a portfolio company and its specific strengths and weaknesses, and may apply discounts or premiums, where and as appropriate, due to the higher (or lower) financial risk and/or the smaller size of portfolio companies relative to comparable firms, as well as such other factors as the Company’s board of directors, in consultation with the Advisor and any approved independent third-party valuation services, if applicable, may consider relevant in assessing fair value. Generally, the value of the Company’s equity interests in public companies for which market quotations are readily available is based upon the most recent closing public market price. Portfolio securities that carry certain restrictions on sale are typically valued at a discount from the public market value of the security. When the Company receives warrants or other equity securities at nominal or no additional cost in connection with an investment in a debt security, the cost basis in the investment will be allocated between the debt securities and any such warrants or other equity securities received at the time of origination. The Company’s board of directors subsequently values these warrants or other equity securities received at their fair value. The Company values certain investments at their net asset value in accordance with practical expedient under ASC Topic 820. The fair values of the Company’s investments are determined in good faith by the Company’s board of directors. The Company’s board of directors is responsible for the valuation of the Company’s portfolio investments at fair value as determined in good faith pursuant to the Company’s valuation policy and consistently applied valuation process. The Company’s board of directors has delegated day-to-day responsibility for implementing its valuation policy to the Advisor, and has authorized the Advisor to utilize independent third-party valuation and pricing services that have been approved by the Company’s board of directors. The valuation committee is responsible for overseeing the Advisor’s implementation of the valuation process. Derivative Instruments: The Company’s derivative instruments include foreign currency forward contracts and cross currency swaps. The Company recognizes all derivative instruments as assets or liabilities at fair value in its consolidated 115 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 2. Summary of Significant Accounting Policies (continued) financial statements. Derivative contracts entered into by the Company are not designated as hedging instruments, and as a result, the Company presents changes in fair value through net change in unrealized appreciation (depreciation) on derivative instruments in the consolidated statements of operations. Realized gains and losses of the derivative instruments are included in net realized gains (losses) on derivative instruments in the consolidated statements of operations. Revenue Recognition: Security transactions are accounted for on the trade date. The Company records interest income on an accrual basis to the extent that it expects to collect such amounts. The Company records dividend income on the ex-dividend date. Distributions received from limited liability company (“LLC”) and limited partnership (“LP”) investments are evaluated to determine if the distribution should be recorded as dividend income or a return of capital. The Company does not accrue as a receivable interest or dividends on loans and securities if it has reason to doubt its ability to collect such income. The Company’s policy is to place investments on non-accrual status when there is reasonable doubt that interest income will be collected. The Company considers many factors relevant to an investment when placing it on or removing it from non-accrual status including, but not limited to, the delinquency status of the investment, economic and business conditions, the overall financial condition of the underlying investment, the value of the underlying collateral, bankruptcy status, if any, and any other facts or circumstances relevant to the investment. If there is reasonable doubt that the Company will receive any previously accrued interest, then the accrued interest will be written-off. Payments received on non-accrual investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest. Non-accrual investments may be restored to accrual status when principal and interest become current and are likely to remain current based on the Company’s judgment. Loan origination fees, original issue discount and market discount are capitalized and the Company amortizes such amounts as interest income over the respective term of the loan or security. Upon the prepayment of a loan or security, any unamortized loan origination fees and original issue discount are recorded as interest income. Structuring and other non-recurring upfront fees are recorded as fee income when earned. The Company records prepayment premiums on loans and securities as fee income when it receives such amounts. For the years ended December 31, 2021, 2020 and 2019, the Company recognized $55, $16 and $20, respectively, in structuring fee revenue and included such revenue in the fee income line item on its consolidated statement of operations. Net Realized Gains or Losses, Net Change in Unrealized Appreciation or Depreciation and Net Change in Unrealized Gains or Losses on Foreign Currency: Gains or losses on the sale of investments are calculated by using the specific identification method. The Company measures realized gains or losses by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized, but considering unamortized fees. Net change in unrealized appreciation or depreciation reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gains or losses when gains or losses are realized. Net change in unrealized gains or losses on foreign currency reflects the change in the value of receivables or accruals during the reporting period due to the impact of foreign currency fluctuations. Capital Gains Incentive Fee: Pursuant to the terms of the investment advisory agreement, the incentive fee on capital gains is determined and payable in arrears as of the end of each calendar year (or upon termination of the investment advisory agreement). This fee equals 20.0% of the Company’s incentive fee capital gains, which shall equal the realized capital gains of Corporate Capital Trust, Inc., or CCT, (as predecessor-by-merger to the Company), FSKR (as predecessor-by-merger to the Company) and the Company (without duplication) on a cumulative basis from inception, calculated as of the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation (without duplication) on a cumulative basis, less the aggregate amount of any capital gain incentive fees previously paid by CCT, FSKR and the Company. On a quarterly basis, the Company accrues for the capital gains incentive fee by calculating such fee as if it were due and payable as of the end of such period. The Company includes unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to the Advisor if the Company’s entire portfolio was liquidated at its fair value as of the balance sheet date even though the Advisor is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized. 116 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 2. Summary of Significant Accounting Policies (continued) Subordinated Income Incentive Fee: Pursuant to the terms of the investment advisory agreement, the Advisor may also be entitled to receive a subordinated incentive fee on income. The subordinated incentive fee on income under the investment advisory agreement, which is calculated and payable quarterly in arrears, equals 17.5% of the Company’s “pre-incentive fee net investment income” for the immediately preceding quarter and is subject to a hurdle rate, expressed as a rate of return on the value of the Company’s net assets, equal to 1.75% per quarter, or an annualized hurdle rate of 7.0%. As a result, the Advisor will not earn this incentive fee for any quarter until the Company’s pre-incentive fee net investment income for such quarter exceeds the hurdle rate of 1.75%. Once the Company’s pre-incentive fee net investment income in any quarter exceeds the hurdle rate, the Advisor will be entitled to a “catch-up” fee equal to the amount of the pre-incentive fee net investment income in excess of the hurdle rate, until the Company’s pre-incentive fee net investment income for such quarter equals 2.12%, or 8.48% annually, of net assets. Thereafter, the Advisor will be entitled to receive 17.5% of pre-incentive fee net investment income. See Note 4 for a discussion of the subordinated incentive fee on income under the prior investment advisory agreement. Income Taxes: The Company has elected to be treated for U.S. federal income tax purposes, and intends to qualify annually, as a RIC under Subchapter M of the Code. To qualify for and maintain qualification as a RIC, the Company must, among other things, meet certain source-of-income and asset diversification requirements, as well as distribute to its stockholders, for each tax year, at least 90% of its “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses, determined without regard to any deduction for distributions paid. As a RIC, the Company will not have to pay corporate-level U.S. federal income taxes on any income that it distributes to its stockholders. The Company intends to make distributions in an amount sufficient to qualify for and maintain its RIC tax status each tax year and to not pay any U.S. federal income taxes on income so distributed. The Company is also subject to nondeductible federal excise taxes if it does not distribute in respect of each calendar year an amount at least equal to the sum of 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no U.S. federal income taxes. The Company accrued $12, $10 and $7 in estimated excise taxes payable in respect of income received during the years ended December 31, 2021, 2020 and 2019, respectively. During the years ended December 31, 2021, 2020, and 2019, the Company paid $9, $7 and $9, respectively, in excise and other taxes. The Company evaluates its tax positions to determine if the tax positions taken meet the minimum recognition threshold in connection with accounting for uncertainties in income tax positions taken or expected to be taken for the purposes of measuring and recognizing tax benefits or liabilities in the Company’s consolidated financial statements. Recognition of a tax benefit or liability with respect to an uncertain tax position is required only when the position is “more likely than not” to be sustained assuming examination by taxing authorities. The Company recognizes interest and penalties, if any, related to unrecognized tax liabilities as income tax expense in its consolidated statements of operations. During the years ended December 31, 2021, 2020 and 2019, the Company did not incur any interest or penalties. The Company has analyzed the tax positions taken on federal and state income tax returns for all open tax years, and has concluded that no provision for income tax for uncertain tax positions is required in the Company’s financial statements. The Company’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. Distributions: Distributions to the Company’s stockholders are recorded as of the record date. Subject to the discretion of the Company’s board of directors and applicable legal restrictions, the Company intends to declare and pay such distributions on a quarterly basis. Net realized capital gains, if any, are distributed or deemed distributed at least annually. Reclassifications: Certain amounts in the consolidated financial statements as of and for the years ended December 31, 2020 and 2019 have been reclassified to conform to the classifications used to prepare the consolidated financial statements for the year ended December 31, 2021. Recent Accounting Pronouncements: In March 2020, the FASB issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848) ,” which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging 117 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 2. Summary of Significant Accounting Policies (continued) relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2022, except for hedging transactions as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company is currently evaluating the impact of adopting ASU 2020-04 on its consolidated financial statements. Note 3. Share Transactions Below is a summary of transactions with respect to shares of the Company’s common stock during the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 Shares Amount Shares Amount Shares (1) Amount Reinvestment of Distributions — $ — — $ — — $ — Share Repurchase Program (586,902 ) (12 ) (2,823,750 ) (47 ) (6,287,919 ) (153 ) Fractional Share Repurchase — — (2,051 ) — — — Issuance of Common Stock (2) 161,374,028 3,642 — — — — Net Proceeds from Share Transactions 160,787,126 $ 3,630 (2,825,801 ) $ (47 ) (6,287,919 ) $ (153 ) (1) The number of shares repurchased has been adjusted to reflect the Reverse Stock Split as discussed below. (2) Issuance of common stock for the 2021 Merger. Shares were issued at fair value of FSK common stock at the merger date. During the year ended December 31, 2021, the administrator for the Company’s distribution reinvestment plan, or DRP, purchased 1,321,614 shares of common stock in the open market at an average price per share of $21.08 (totaling $28) pursuant to the DRP, and distributed such shares to participants in the DRP. During the year ended December 31, 2020, the administrator for the DRP purchased 1,504,389 shares of common stock in the open market at an average price per share of $15.84 (totaling $24) pursuant to the DRP, and distributed such shares to participants in the DRP. During the period from January 1, 2022 to February 25, 2022, the administrator for the DRP purchased 595,933 shares of common stock in the open market at an average price per share of $21.68 (totaling $13) pursuant to the DRP, and distributed such shares to participants in the DRP. For additional information regarding the terms of the DRP, see Note 5. Acquisition of FSKR In accordance with the terms of the 2020 Merger Agreement, at the time of the transactions contemplated by the 2020 Merger Agreement, each outstanding share of FSKR common stock was converted into the right to receive 0.9498 shares of the Company’s common stock. As a result, the Company issued an aggregate of approximately 161,374,028 shares of its common stock to former FSKR stockholders. September 2021 Share Repurchase Program In November 2020, the Company’s board of directors authorized a stock repurchase program, which went into effect in September 2021 following the consummation of the 2021 Merger. Under the program, the Company may repurchase up to $100 in the aggregate of its outstanding common stock in the open market at prices below the then-current net asset value per share. The timing, manner, price and amount of any share repurchases was determined by the Company based upon the evaluation of economic and market conditions, the Company’s stock price, applicable legal and regulatory requirements and other factors. The program is expected to be in effect for one year from the effective date, unless extended, or until the aggregate repurchase amount that has been approved by the Company’s board of directors has been expended, or the plan otherwise terminates pursuant to its terms. The program does not require the Company to repurchase any specific number of shares and the Company cannot assure stockholders that any shares will be repurchased under the program. The program may be suspended, extended, modified or discontinued at any time. 118 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 3. Share Transactions (continued) During the year ended December 31, 2021, the Company repurchased 586,902 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $21.44 (totaling $12). During the period from January 1, 2022 to February 24, 2022, the Company repurchased 268,457 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $21.79 (totaling $6). December 2018 Share Repurchase Program In December 2018, the Company’s board of directors authorized a stock repurchase program. Under the program, the Company was permitted to repurchase up to $200 in the aggregate of its outstanding common stock in the open market at prices below the then-current net asset value per share. During the year ended December 31, 2020, the Company repurchased 2,823,750 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $16.71 (totaling $47). During the year ended December 31, 2019, the Company repurchased 6,287,919 shares of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $24.30 (totaling $153). The program has concluded since the aggregate repurchase amount that was approved by the Company’s board of directors has been expended. Reverse Stock Split and Fractional Shares As a result of the Reverse Stock Split, which was effective on June 15, 2020, every four shares of the Company’s common stock issued and outstanding were automatically combined into one share of the Company’s common stock, and the number of outstanding shares of the Company’s common stock was reduced from approximately 495.0 million to approximately 123.75 million as of June 15, 2020. The Reverse Stock Split did not modify the rights or preferences of the Company’s common stock. The Company also filed a separate Articles of Amendment to Articles of Incorporation with the State Department of Assessments and Taxation of the State of Maryland to provide that there would be no change in the par value of $0.001 per share as a result of the Reverse Stock Split. The Reverse Stock Split affected all shareholders uniformly and did not alter any shareholder’s percentage interest in the Company’s equity, except to the extent that the Reverse Stock Split resulted in some shareholders owning a fractional share. In that regard, no fractional shares were issued in connection with the Reverse Stock Split. Shareholders of record who would have otherwise been entitled to receive a fractional share instead received a cash payment based on the closing price of the Company’s common stock as reported on the NYSE as of June 15, 2020. Note 4. Related Party Transactions Compensation of the Investment Adviser Pursuant to the investment advisory agreement, the Advisor is entitled to a base management fee calculated at an annual rate of 1.50% of the average weekly value of the Company’s gross assets excluding cash and cash equivalents (gross assets equal the total assets of the Company as set forth on the Company’s consolidated balance sheets) and an incentive fee based on the Company’s performance. Effective June 15, 2019, in connection with stockholder approval of the modification of the asset coverage requirement applicable to senior securities from 200% to 150%, the Advisor reduced (by permanent waiver) the annual base management fee payable under the investment advisory agreement from 1.5% to 1.0% on all assets financed using leverage over 1.0x debt-to-equity. The base management fee is payable quarterly in arrears. All or any part of the base management fee not taken as to any quarter will be deferred without interest and may be taken in such other quarter as the Advisor determines. The prior investment advisory agreement had substantially similar terms as the investment advisory agreement, except that the investment advisory agreement amended the prior investment advisory agreement to (i) reduce the Company’s income incentive fee rate from 20% to 17.5%; and (ii) remove the total return lookback provision applicable to the subordinated incentive fee on income from the prior investment advisory agreement. Under the prior investment advisory agreement, the subordinated incentive fee on income was subject to a cap equal to (i) 20.0% of the “per share pre-incentive fee return” for the then-current and eleven preceding calendar quarters minus the cumulative “per share incentive fees” accrued and/or payable for the eleven preceding 119 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 4. Related Party Transactions (continued) calendar quarters multiplied by (ii) the weighted average number of shares outstanding during the calendar quarter (or any portion thereof) for which the subordinated incentive fee on income was being calculated. The definitions of “per share pre-incentive fee return” and “per share incentive fees” under the prior investment advisory agreement took into account the historic per share pre-incentive fee return of both the Company and CCT, together with the historic per share incentive fees paid by both the Company and CCT. For the purpose of calculating the “per share pre-incentive fee return,” any unrealized appreciation or depreciation recognized as a result of the purchase accounting for the Company’s acquisition of CCT was excluded. See Note 2 for a discussion of the capital gains and subordinated income incentive fees that the Advisor may be entitled to under the investment advisory agreement. In connection with the entry into the investment advisory agreement, the Advisor has agreed to waive income incentive fees in the amount of $15 per quarter for the first six full fiscal quarters of operations following the closing of the 2021 Merger, commencing on July 1, 2021, for a total waiver of $90. In addition, the Advisor has agreed to exclude from the calculation of the subordinated incentive fee on income and the incentive fee on capital gains any changes to the fair value recorded for the assets and liabilities of FSKR resulting solely from the new cost basis of the acquired FSKR investments determined in accordance with Accounting Standards Codification Topic 805-50, Business Combinations—Related Issues as a result of the 2021 Merger. On April 9, 2018, the Company entered into an administration agreement with the Advisor, or the administration agreement. Pursuant to the administration agreement, the Advisor oversees the Company’s day-to-day operations, including the provision of general ledger accounting, fund accounting, legal services, investor relations, certain government and regulatory affairs activities, and other administrative services. The Advisor also performs, or oversees the performance of, the Company’s corporate operations and required administrative services, which includes being responsible for the financial records that the Company is required to maintain and preparing reports for the Company’s stockholders and reports filed with the SEC. In addition, the Advisor assists the Company in calculating its net asset value, overseeing the preparation and filing of tax returns and the printing and dissemination of reports to the Company’s stockholders, and generally overseeing the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Pursuant to the administration agreement, the Company reimburses the Advisor for expenses necessary to perform services related to its administration and operations, including the Advisor’s allocable portion of the compensation and related expenses of certain personnel of Franklin Square Holdings, L.P., which does business as FS Investments, or FS Investments, and KKR Credit Advisors (US), LLC, or KKR Credit, providing administrative services to the Company on behalf of the Advisor. The Company reimburses the Advisor no less than quarterly for all costs and expenses incurred by the Advisor in performing its obligations and providing personnel and facilities under the administration agreement. The Advisor allocates the cost of such services to the Company based on factors such as total assets, revenues, time allocations and/or other reasonable metrics. The Company’s board of directors reviews the methodology employed in determining how the expenses are allocated to the Company and the proposed allocation of administrative expenses among the Company and certain affiliates of the Advisor. The Company’s board of directors then assesses the reasonableness of such reimbursements for expenses allocated to it based on the breadth, depth and quality of such services as compared to the estimated cost to the Company of obtaining similar services from third-party service providers known to be available. In addition, the Company’s board of directors considers whether any single third-party service provider would be capable of providing all such services at comparable cost and quality. Finally, the Company’s board of directors compares the total amount paid to the Advisor for such services as a percentage of the Company’s net assets to the same ratio as reported by other comparable BDCs. The FB Advisor administration agreement was substantially similar to the administration agreement. 120 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 4. Related Party Transactions (continued) The following table describes the fees and expenses accrued under the investment advisory agreement, the prior investment advisory agreement, and the administration agreement, as applicable, during the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, Related Party Source Agreement Description 2021 2020 2019 The Advisor Investment advisory agreement and prior investment advisory agreement Base Management Fee (1) $173 $106 $115 The Advisor Investment advisory agreement and prior investment advisory agreement Subordinated Incentive Fee on Income (2) $47 $— $57 The Advisor Administration agreement Administrative Services Expenses (3) $12 $7 $9 (1) During the years ended December 31, 2021, 2020 and 2019, $162, $111, and $105, respectively, in base management fees were paid to the Advisor. As of December 31, 2021, $60 in base management fees were payable to the Advisor. (2) The Advisor agreed, effective July 1, 2021, to waive up to $15 per quarter of the subordinated incentive fee on income to which it is entitled to under the investment advisory agreement. During the year ended December 31, 2021, the amount shown is net of waivers of $30. During the years ended December 31, 2021, 2020 and 2019, $49, $0 and $71, respectively, of subordinated incentive fees on income were paid to the Advisor. As of December 31, 2021, $19 in subordinated incentive fees on income were payable to the Advisor. (3) During the years ended December 31, 2021, 2020 and 2019, $10, $6 and $6, respectively, of administrative services expenses related to the allocation of costs of administrative personnel for services rendered to the Company by the Advisor and the remainder related to other reimbursable expenses, including reimbursement of fees related to transactional expenses for prospective investments, such as fees and expenses associated with performing due diligence reviews of investments that do not close, often referred to as “broken deal” costs. Broken deal costs were $1.3 for the year ended December 31, 2021. The Company paid $11, $8 and $7, respectively, in administrative services expenses to the Advisor during the years ended December 31, 2021, 2020 and 2019. Potential Conflicts of Interest The members of the senior management and investment teams of the Advisor serve or may serve as officers, directors or principals of entities that operate in the same or a related line of business as the Company does, or of investment vehicles managed by the same personnel. The officers, managers and other personnel of the Advisor may serve in similar or other capacities for the investment advisers to future investment vehicles affiliated with FS Investments or KKR Credit. In serving in these multiple and other capacities, they may have obligations to other clients or investors in those entities, the fulfillment of which may not be in the Company’s best interests or in the best interest of the Company’s stockholders. The Company’s investment objectives may overlap with the investment objectives of such investment funds, accounts or other investment vehicles. Exemptive Relief As a BDC, the Company is subject to certain regulatory restrictions in making its investments. For example, BDCs generally are not permitted to co-invest with certain affiliated entities in transactions originated by the BDC or its affiliates in the absence of an exemptive order from the SEC. However, BDCs are permitted to, and may, simultaneously co-invest in transactions where price is the only negotiated term. In an order dated June 4, 2013, or the FS Order, the SEC granted exemptive relief permitting the Company, subject to the satisfaction of certain conditions, to co-invest in certain privately negotiated investment transactions with certain affiliates of its former investment adviser, including FS Energy and Power Fund and any future BDCs that are advised by its former investment adviser or its affiliated investment advisers. However, in connection with the investment advisory relationship with the Advisor, and in an effort to mitigate potential future conflicts of interest, the Company’s board of directors authorized and directed that the Company (i) withdraw from the FS Order, except with respect to any transaction in which the Company participated in reliance on the FS Order prior to April 9, 2018, and (ii) rely on an exemptive relief order, dated January 5, 2021, that permits the 121 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 4. Related Party Transactions (continued) Company, subject to the satisfaction of certain conditions, to co-invest in certain privately negotiated investment transactions, including investments originated and directly negotiated by the Advisor or KKR Credit, with certain affiliates of the Advisor. Affiliated Purchaser Program As previously disclosed, certain affiliates of the owners of the Advisor committed $100 to a $350 investment vehicle that may invest from time to time in shares of the Company. In September 2021 and December 2021, that investment vehicle entered into a written trading plan with a third party broker in accordance with Rule 10b5-1 and Rule 10b-18 promulgated under the Exchange Act to facilitate the purchase of shares of the Company’s common stock pursuant to the terms and conditions of such plan. The Company is not a party to any transaction with the investment vehicle. Note 5. Distributions The following table reflects the cash distributions per share that the Company has declared on its common stock during the years ended December 31, 2021, 2020 and 2019: Distribution For the Year Ended December 31, Per Share (1) Amount 2019 $ 3.04000 $ 393 2020 $ 2.56000 $ 318 2021 $ 2.47000 $ 511 (1) The amount of each per share distribution has been retroactively adjusted to reflect the Reverse Stock Split as discussed above in Note 3. On February 23, 2022, the Company’s board of directors declared a regular quarterly cash distribution of $0.63 per share, which will be paid on or about April 4, 2022 to stockholders of record as of the close of business on March 16, 2022. The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole discretion of the Company’s board of directors. Pursuant to the DRP, the Company will reinvest all cash dividends or distributions declared by the Company’s board of directors on behalf of stockholders who do not elect to receive their distributions in cash. As a result, if the Company’s board of directors declares a distribution, then stockholders who have not elected to “opt out” of the DRP will have their distributions automatically reinvested in additional shares of the Company’s common stock. With respect to each distribution pursuant to the DRP, the Company reserves the right to either issue new shares of common stock or purchase shares of common stock in the open market in connection with implementation of the DRP. Unless the Company, in its sole discretion, otherwise directs the plan administrator, (A) if the per share market price (as defined in the DRP) is equal to or greater than the estimated net asset value per share (rounded up to the nearest whole cent) of the Company’s common stock on the payment date for the distribution, then the Company will issue shares of common stock at the greater of (i) net asset value per share of common stock or (ii) 95% of the market price; or (B) if the market price is less than the net asset value per share, then, in the sole discretion of the Company, (i) shares of common stock will be purchased in open market transactions for the accounts of participants to the extent practicable, or (ii) the Company will issue shares of common stock at net asset value per share. Pursuant to the terms of the DRP, the number of shares of common stock to be issued to a participant will be determined by dividing the total dollar amount of the distribution payable to a participant by the price per share at which the Company issues such shares; provided, however, that shares purchased in open market transactions by the plan administrator will be allocated to a participant based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market. If a stockholder receives distributions in the form of common stock pursuant to the DRP, such stockholder generally will be subject to the same federal, state and local tax consequences as if it elected to receive distributions in cash. If the Company’s common stock is trading at or below net asset value, a stockholder receiving distributions in the form of additional common stock will be treated as receiving a distribution in the amount of cash that they would have received if they had elected to receive the distribution in cash. If the Company’s common stock is trading above net asset value, a stockholder receiving distributions in the 122 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 5. Distributions (continued) form of additional common stock will be treated as receiving a distribution in the amount of the fair market value of the Company’s common stock. The stockholder’s basis for determining gain or loss upon the sale of common stock received in a distribution will be equal to the total dollar amount of the distribution payable to the stockholder. Any stock received in a distribution will have a holding period for tax purposes commencing on the day following the day on which the shares of common stock are credited to the stockholder’s account. The Company may fund its cash distributions to stockholders from any sources of funds legally available to it, including proceeds from the sale of shares of the Company’s common stock, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to the Company on account of preferred and common equity investments in portfolio companies. The Company has not established limits on the amount of funds it may use from available sources to make distributions. During certain periods, the Company’s distributions may exceed its earnings. As a result, it is possible that a portion of the distributions the Company makes may represent a return of capital. A return of capital generally is a return of a stockholder’s investment rather than a return of earnings or gains derived from the Company’s investment activities. Each year a statement on Form 1099-DIV identifying the sources of the distributions (i.e., paid from ordinary income, paid from net capital gains on the sale of securities, and/or a return of capital, which is a nontaxable distribution) will be mailed to the Company’s stockholders. There can be no assurance that the Company will be able to pay distributions at a specific rate or at all. The following table reflects the sources of the cash distributions on a tax basis that the Company has paid on its common stock during the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 Source of Distribution Distribution Amount Percentage Distribution Amount Percentage Distribution Amount Percentage Offering proceeds $ — — $ — — $ — — Borrowings — — — — — — Net investment income (1) 511 100 % 318 100 % 393 100 % Short-term capital gains proceeds from the sale of assets — — — — — — Long-term capital gains proceeds from the sale of assets — — — — — — Non-capital gains proceeds from the sale of assets — — — — — — Distributions on account of preferred and common equity — — — — — — Total $ 511 100 % $ 318 100 % $ 393 100 % (1) During the years ended December 31, 2021, 2020 and 2019, 84.6%, 88.1% and 90.5%, respectively, of the Company’s gross investment income was attributable to cash income earned, 5.5%, 1.6% and 1.8%, respectively, was attributable to non-cash accretion of discount and 9.9%, 10.3% and 7.7%, respectively, was attributable to paid-in-kind, or PIK, interest. The Company’s net investment income on a tax basis for the years ended December 31, 2021, 2020 and 2019 was $557, $357 and $422, respectively. As of December 31, 2021, 2020 and 2019, the Company had $284, $244 and $220, respectively, of undistributed net investment income and $1,705, $855 and $480, respectively, of accumulated capital losses on a tax basis. The Company’s undistributed net investment income on a tax basis may be adjusted following the filing of the Company’s tax returns. The adjustment is in general due to tax-basis income received by the Company differing from GAAP-basis income on account of certain collateralized securities and interests in partnerships, and the reclassification of realized gains and losses upon the sale of certain collateralized securities held in its investment portfolio during such period. The difference between the Company’s GAAP-basis net investment income and its tax-basis net investment income is primarily due to the reclassification of unamortized original issue discount and prepayment fees recognized upon prepayment of 123 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 5. Distributions (continued) loans from income for GAAP purposes to realized gains or deferred to future periods for tax purposes, the impact of consolidating certain subsidiaries for purposes of computing GAAP-basis net investment income but not for purposes of computing tax-basis net investment income, the reversal of non-deductible excise taxes and income recognized for tax purposes on certain transactions but not recognized for GAAP purposes. The following table sets forth a reconciliation between GAAP-basis net investment income and tax-basis net investment income during the years ended December 31, 2021, 2020 and 2019: Year Ended December 31, 2021 2020 2019 GAAP-basis net investment income $ 584 $ 331 $ 410 Income subject to tax not recorded for GAAP 10 29 17 GAAP accretion from merger not recognized for tax (47 ) — — Excise taxes 12 10 7 GAAP versus tax-basis impact of consolidation of certain subsidiaries 12 11 4 Reclassification of unamortized original issue discount and prepayment fees (37 ) (14 ) (22 ) Other miscellaneous differences 23 (10 ) 6 Tax-basis net investment income $ 557 $ 357 $ 422 The Company may make certain adjustments to the classification of stockholders’ equity as a result of permanent book-to-tax differences. During the year ended December 31, 2021, the Company decreased accumulated undistributed (distributions in excess of) net investment income and accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $47 and $2,115, respectively, and increased capital in excess of par value by $2,162. During the year ended December 31, 2020, the Company increased accumulated undistributed (distributions in excess of) net investment income and accumulated undistributed net realized gain (loss) on investments and gain (loss) on foreign currency by $10 and $119, respectively, and decreased capital in excess of par value by $129. The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon the Company’s taxable income for the full year and distributions paid for the full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV. As of December 31, 2021 and 2020, the components of accumulated earnings on a tax basis were as follows: Year Ended December 31, 2021 2020 Distributable ordinary income $ 284 $ 244 Distributable realized gains (accumulated capital losses) (1) (1,881 ) (855 ) Other temporary differences (1 ) 0 Net unrealized appreciation (depreciation) (2) (330 ) (159 ) Total $ (1,928 ) $ (770 ) (1) Net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term losses. As of December 31, 2021, the Company had capital loss carryforwards available to offset future realized capital gains of approximately $1,900. $85 of such losses were carried over from CCT due to the 2018 Merger, $1,212 were carried over from FSKR due to the 2021 Merger, and $177 of such losses were carried over from losses generated by the Company prior to the 2018 Merger. Because of the loss limitation rules of the Code, some of the tax basis losses may be limited in their use. Any unused balances resulting from such limitations may be carried forward into future years indefinitely. (2) As of December 31, 2021 and 2020, the gross unrealized appreciation was $1,665 and $1,121, respectively. As of December 31, 2021 and 2020, the gross unrealized depreciation was $1,995 and $1,280, respectively. The aggregate cost of the Company’s investments for U.S. federal income tax purposes totaled $17,167 and $7,622 as of December 31, 2021 and 2020, respectively. The aggregate net unrealized appreciation (depreciation) on a tax basis was $(1,066) 124 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 5. Distributions (continued) and $(842) as of December 31, 2021 and 2020, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation (depreciation) from merger accounting, cross currency swaps, foreign currency forward contracts and foreign currency transactions. As of December 31, 2021, the Company had a deferred tax liability of $4 resulting from unrealized appreciation on investments held by the Company’s wholly-owned taxable subsidiaries and a deferred tax asset of $79 resulting from a combination of unrealized depreciation on investments held by and net operating losses and other tax attributes of the Company’s wholly-owned taxable subsidiaries. As of December 31, 2021, certain wholly-owned taxable subsidiaries anticipated that they would be unable to fully utilize their generated net operating losses, therefore the deferred tax asset was offset by a valuation allowance of $75. For the year ended December 31, 2021, the Company did not record a provision for taxes related to wholly-owned taxable subsidiaries. Note 6. Investment Portfolio The following table summarizes the composition of the Company’s investment portfolio at cost and fair value as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Amortized Cost (1) Fair Value Percentage of Portfolio Amortized Cost (1) Fair Value Percentage of Portfolio Senior Secured Loans—First Lien $ 9,695 $ 9,765 60.7 % $ 3,597 $ 3,449 50.9 % Senior Secured Loans—Second Lien 1,564 1,557 9.7 % 1,035 880 13.0 % Other Senior Secured Debt 149 120 0.7 % 127 86 1.3 % Subordinated Debt 188 111 0.7 % 243 171 2.5 % Asset Based Finance 2,132 2,245 13.9 % 1,025 951 14.0 % Credit Opportunities Partners JV, LLC 1,397 1,396 8.7 % 810 713 10.5 % Equity/Other 932 907 5.6 % 616 530 7.8 % Total $ 16,057 $ 16,101 100.0 % $ 7,453 $ 6,780 100.0 % (1) Amortized cost represents the original cost adjusted for the amortization of premiums and/or accretion of discounts, as applicable, on investments. In general, under the 1940 Act, the Company would be presumed to “control” a portfolio company if it owned more than 25% of its voting securities or it had the power to exercise control over the management or policies of such portfolio company, and would be an “affiliated person” of a portfolio company if it owned 5% or more of its voting securities. As of December 31, 2021, the Company held investments in seventeen portfolio companies of which it is deemed to “control.” As of December 31, 2021, the Company held investments in sixteen portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control.” For additional information with respect to such portfolio companies, see footnotes (ac) and (ad) to the consolidated schedule of investments as of December 31, 2021. As of December 31, 2020, the Company held investments in ten portfolio companies of which it is deemed to “control.” As of December 31, 2020, the Company held investments in thirteen portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control.” For additional information with respect to such portfolio companies, see footnotes (y) and (z) to the consolidated schedule of investments as of December 31, 2020. The Company’s investment portfolio may contain loans and other unfunded arrangements that are in the form of lines of credit, revolving credit facilities, delayed draw credit facilities or other investments, which require the Company to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. As of December 31, 2021, the Company had unfunded debt investments with aggregate unfunded commitments of $1,724.1, unfunded equity/other commitments of $576.9 and unfunded commitments of $350.2 to Credit Opportunities Partners JV, LLC. As of December 31, 125 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) 2020, the Company had unfunded debt investments with aggregate unfunded commitments of $228.4, unfunded equity/other commitments of $142.9 and unfunded commitments of $65.8 to Credit Opportunities Partners JV, LLC. The Company maintains sufficient cash on hand and available borrowings to fund such unfunded commitments should the need arise. For additional details regarding the Company’s unfunded debt investments, see the Company’s consolidated schedule of investments as of December 31, 2021 and 2020. The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets in such industries as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Industry Classification Fair Value Percentage of Portfolio Fair Value Percentage of Portfolio Automobiles & Components $ 89 0.5 % $ 104 1.5 % Banks 15 0.1 % 14 0.2 % Capital Goods 2,281 14.2 % 799 11.8 % Commercial & Professional Services 1,615 10.0 % 564 8.3 % Consumer Durables & Apparel 551 3.4 % 385 5.7 % Consumer Services 393 2.4 % 145 2.1 % Credit Opportunities Partners JV, LLC 1,396 8.7 % 713 10.5 % Diversified Financials 672 4.2 % 467 6.9 % Energy 241 1.5 % 107 1.6 % Food & Staples Retailing 296 1.8 % 221 3.3 % Food, Beverage & Tobacco 256 1.6 % 106 1.6 % Health Care Equipment & Services 1,613 10.0 % 604 8.9 % Household & Personal Products 227 1.4 % 190 2.8 % Insurance 898 5.6 % 208 3.1 % Materials 211 1.3 % 147 2.2 % Media & Entertainment 720 4.5 % 36 0.5 % Pharmaceuticals, Biotechnology & Life Sciences 235 1.5 % 34 0.5 % Real Estate 876 5.4 % 555 8.2 % Retailing 288 1.8 % 344 5.1 % Software & Services 2,698 16.8 % 770 11.3 % Technology Hardware & Equipment 42 0.3 % 15 0.2 % Telecommunication Services 128 0.8 % 71 1.0 % Transportation 360 2.2 % 181 2.7 % Total $ 16,101 100.0 % $ 6,780 100.0 % Credit Opportunities Partners JV, LLC Credit Opportunities Partners JV, LLC (formerly known as Strategic Credit Opportunities Partners, LLC), or COPJV, is a joint venture between the Company and South Carolina Retirement Systems Group Trust, or SCRS. SCRS purchased its interests in COPJV from Conway Capital, LLC, an affiliate of Guggenheim Life and Annuity Company and Delaware Life Insurance Company, in June 2019, which had no impact on the significant terms governing COPJV other than an increase in the aggregate capital commitment (but not the percentage of the aggregate capital committed by each member) to COPJV. Effective as of June 18, 2021, Credit Opportunities Partners, LLC, or COP, merged with and into COPJV, with COPJV surviving the merger, or the COPJV Merger. As of June 18, 2021, COPJV assumed all of COP’s obligations under its credit facilities, and COP’s wholly- owned special purpose financing subsidiaries became wholly-owned special purpose financing subsidiaries of COPJV, in each case, as a result of the consummation of the COPJV Merger. COPJV’s second amended and restated limited liability company agreement, or the COPJV Agreement, requires the Company and SCRS to provide capital to COPJV of up to $2,000 in the aggregate where the Company and SCRS would provide 87.5% and 12.5%, respectively, of the committed capital. Pursuant to the 126 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) terms of the COPJV Agreement, the Company and SCRS each have 50% voting control of COPJV and are required to agree on all investment decisions as well as certain other significant actions for COPJV. COPJV invests its capital in a range of investments, including senior secured loans (both first lien and second lien) to middle market companies, broadly syndicated loans, equity, warrants and other investments. As administrative agent of COPJV, the Company performs certain day-to-day management responsibilities on behalf of COPJV and is entitled to a fee of 0.25% of COPJV’s assets under administration, calculated and payable quarterly in arrears. As of December 31, 2021, the Company and SCRS have funded approximately $1,599.8 to COPJV, of which $1,399.8 was from the Company. Big Cedar Creek LLC, or Big Cedar Creek Funding, a wholly-owned subsidiary of COPJV, has a revolving credit facility with BNP Paribas, or as amended, the Big Cedar Creek Funding Credit Facility, which provides for up to $300 of borrowings as of December 31, 2021. The Big Cedar Creek Funding Credit Facility provides loans in U.S. dollars, Australian dollars, Canadian dollars, New Zealand dollars, Euros and pounds sterling. U.S. dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus a spread of 1.85% to 2.55% during the reinvestment period and 2.00% to 2.65% thereafter. Foreign currency loans bear interest at the applicable floating rate (subject to a 0% floor) plus a spread of 1.85% to 2.55% during the reinvestment period and 2.00% to 2.65% thereafter. Big Cedar Creek Funding also pays a commitment fee of up to 1.00% on undrawn commitments. The Big Cedar Creek Funding Credit Facility matures on March 11, 2025. As of December 31, 2021, total outstanding borrowings under the Big Cedar Creek Funding Credit Facility were $193.5. Borrowings under the Big Cedar Creek Funding Credit Facility are secured by substantially all of the assets of Big Cedar Creek. Boxwood Drive Funding LLC, or Boxwood Drive Funding, a wholly-owned subsidiary of COPJV, has a revolving credit facility with BNP Paribas, or as amended, the Boxwood Drive Funding Credit Facility, which provides for up to $300 of borrowings as of December 31, 2021. The Boxwood Drive Funding Credit Facility provides for loans in U.S. dollars, Australian dollars, Canadian dollars, New Zealand dollars, Euros and pounds sterling. U.S. dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus a spread of 2.05% to 3.15% during the reinvestment period and 2.50% to 3.25% thereafter. Foreign currency loans bear interest at the applicable floating rate (subject to 0% floor) plus the spread applicable to the specified currency. Boxwood Drive Funding also pays a commitment fee of up to 1.00% on undrawn commitments. The Boxwood Drive Funding Credit Facility matures on April 15, 2025. As of December 31, 2021, total outstanding borrowings under the Boxwood Drive Funding Credit Facility were $207.8. Borrowings under the Boxwood Drive Funding Credit Facility are secured by substantially all of the assets of Boxwood Drive Funding. Chestnut Street Funding LLC, or Chestnut Street Funding, a wholly-owned subsidiary of COPJV, has a revolving credit facility with Citibank, N.A., or as amended, the Chestnut Street Funding Credit Facility, which provides for up to $400 of borrowings as of December 31, 2021. The Chestnut Street Funding Credit Facility provides loans in U.S. dollars, Australian dollars, Canadian dollars, Euros and pounds sterling. U.S. dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus 2.25%. Foreign currency loans bear interest at the applicable floating rate (subject to a 0% floor) plus 2.25%. Chestnut Street Funding also pays a commitment fee of up to 0.50% on undrawn commitments. The Chestnut Street Funding Credit Facility matures on September 18, 2024. As of December 31, 2021, total outstanding borrowings under the Chestnut Street Funding Credit Facility were $175.0. Borrowings under the Chestnut Street Funding Credit Facility are secured by substantially all of the assets of Chestnut Street Funding. Green Creek LLC, or Green Creek Funding, a wholly-owned subsidiary of COPJV, has a revolving credit facility with Goldman Sachs Bank, or as amended, the Green Creek Funding Credit Facility, which provides for up to $400 of borrowings as of December 31, 2021. The Green Creek Credit Facility provides for loans in U.S. dollars, Canadian dollars, Euros and pounds sterling. U.S. dollar loans bear interest at the rate of LIBOR (subject to a 0% floor) plus 2.25%. Foreign currency loans bear interest at the rate of the applicable floating rate (subject to a 0% floor) plus the spread applicable to the specified currency. Green Creek Funding also pays a commitment fee of up to 2.25% on undrawn commitments. The Green Creek Funding Credit Facility matures on January 30, 2027. As of December 31, 2021, total outstanding borrowings under the Green Creek Funding Credit Facility were $345.8. Borrowings under the Green Creek Funding Credit Facility are secured by substantially all of the assets of Green Creek Funding. 127 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) On September 2, 2021, Jersey City Funding LLC, or Jersey City Funding, a wholly-owned subsidiary of COPJV, prepaid all outstanding borrowings under, and terminated, its revolving credit facility with Goldman Sachs Bank. On March 31, 2021, COPJV sold in a private placement $300 of aggregate principal amount of unsecured notes, or the April COPJV Notes, to qualified institutional buyers in reliance on Section 4(a)(2) of the Securities Act. Interest of the April COPJV Notes is payable quarterly on the 1st of each of January, April, July and October, at a fixed annual rate of 4.25%, commencing July 1, 2021. This interest rate is subject to increase up to 4.75% in the event that the April COPJV Notes cease to be rated investment grade, and the April COPJV Notes will be subject to an additional 2.0% of default interest during the continuance of an event of default. The April COPJV Notes mature on April 1, 2026, unless redeemed, purchased or prepaid prior to such date by COPJV in accordance with their terms. On August 17, 2021, COPJV sold in a private placement $225 of aggregate principal amount of Series B senior unsecured notes, or the August COPJV Notes and together with the April COPJV Notes, the COPJV Notes, to qualified institutional buyers in reliance on Section 4(a)(2) of the Securities Act. Interest of the August COPJV Notes is payable semi-annually on the 17th of each of February and August, at a fixed annual rate of 3.62%, commencing February 17, 2022. This interest rate is subject to increase up to 4.12% in the event that the COPJV Notes cease to be rated investment grade, and the August COPJV Notes will be subject to an additional 2.0% of default interest during the continuance of an event of default. The August COPJV Notes mature on August 17, 2026, unless redeemed, purchased or prepaid prior to such date by COPJV in accordance with their terms. The COPJV Notes are general unsecured obligations that rank pari passu with all outstanding and future unsecured and unsubordinated indebtedness that COPJV may issue. COPJV used the net proceeds from the COPJV Notes for general corporate purposes, including to make investments, repay existing debt and make permitted distributions. During the year ended December 31, 2021, the Company sold investments with a cost of $1,570.6 for proceeds of $1,620.8 to COPJV and recognized a net realized gain (loss) of $50.2 in connection with the transactions. As of December 31, 2021, $560.3 of these sales to COPJV are included in receivable for investments sold in the consolidated statements of assets and liabilities. As of December 31, 2021 and December 31, 2020, COPJV had total investments with a fair value of $3,260.0 and $1,544.3, respectively. As of December 31, 2021 and December 31, 2020, COPJV had zero and two investments on non-accrual status, respectively. Below is a summary of COPJV’s portfolio, followed by a listing of the individual loans in COPJV’s portfolio as of December 31, 2021 and 2020: As of December 31, 2021 December 31, 2020 Total debt investments (1) $ 2,954.2 $ 1,436.3 Weighted average current interest rate on debt investments (2) 8.1 % 8.6 % Number of portfolio companies in COPJV 95 66 Largest investment in a single portfolio company (1) $ 131.5 $ 72.6 Unfunded commitments (1) $ 1.9 $ 21.6 (1) “Debt Investments” means investments that pay or are expected to pay a stated interest rate, stated dividend rate or other similar stated return. (2) The Weighted Average Annual Yield on Accruing Debt Investments is computed as (i) the sum of (a) the stated annual interest rate, dividend rate or other similar stated return of each accruing Debt Investment, multiplied by its par amount, adjusted to U.S. dollars and for any partial income accrual when necessary, as of the end of the applicable reporting period, plus (b) the annual amortization of the purchase or original issue discount or premium of each accruing Debt Investment; divided by (ii) the total amortized cost of Debt Investments included in the calculated group as of the end of the applicable reporting period. 128 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Credit Opportunities Partners JV, LLC Portfolio As of December 31, 2021 (in millions) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Senior Secured Loans—First Lien—135.2% ABB CONCISE Optical Group LLC (j)(k) Retailing L+500 1.0% 6/15/23 $ 16.2 $ 14.5 $ 15.7 Accuride Corp (i)(j) Capital Goods L+525 1.0% 11/17/23 21.0 20.3 20.3 Advania Sverige AB (e) Software & Services SR+610, 0.0% PIK (3.3% Max PIK) 0.0% 4/28/28 SEK 588.0 66.4 64.3 Advania Sverige AB (e) Software & Services R+610, 0.0% PIK (3.3% Max PIK) 0.0% 4/28/28 ISK 1,644.9 12.8 12.5 Affordable Care Inc (e)(h)(i) Health Care Equipment & Services L+550, 0.0% PIK (1.3% Max PIK) 0.8% 8/2/28 $ 55.9 55.6 55.6 Alera Group Intermediate Holdings Inc (e)(k) Insurance L+550 0.8% 10/2/28 20.2 20.0 20.0 Alstom SA (k) Transportation L+550, 2.5% PIK (2.5% Max PIK) 1.0% 8/29/23 6.1 5.3 5.0 Ammeraal Beltech Holding BV (h)(k) Capital Goods E+350 0.0% 7/30/25 € 4.8 4.7 5.4 Apex Group Limited (h) Diversified Financials L+375 0.5% 7/27/28 $ 4.2 4.2 4.2 Apex Group Limited (h) Diversified Financials E+400 0.0% 7/27/28 € 1.6 1.9 1.8 Arcos LLC/VA (e)(h)(j) Software & Services L+575 1.0% 3/31/28 $ 22.4 22.2 22.3 Ardonagh Group Ltd (e)(i) Insurance L+675 0.8% 7/14/26 £ 3.8 4.7 5.2 Ardonagh Group Ltd (e)(i) Insurance E+675 1.0% 7/14/26 € 0.5 0.5 0.6 Ardonagh Group Ltd (e)(j)(k) Insurance L+550 0.8% 7/14/26 $ 40.7 40.3 40.3 Arrotex Australia Group Pty Ltd (e)(j)(k)(n) Pharmaceuticals, Biotechnology & Life Sciences B+525 1.0% 7/10/24 A$ 109.4 73.6 79.7 Arrotex Australia Group Pty Ltd (e)(j)(k)(n) Pharmaceuticals, Biotechnology & Life Sciences B+525 1.0% 7/10/24 8.0 5.7 5.8 129 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Barbri Inc (e)(h)(i) Consumer Services L+575 0.8% 4/28/28 $ 47.7 $ 47.7 $ 47.7 BearCom Acquisition Corp (e)(j) Technology Hardware & Equipment L+600 1.0% 7/5/24 2.2 2.2 2.1 BearCom Acquisition Corp (e)(j) Technology Hardware & Equipment C+550 1.0% 7/5/24 C$ 14.4 10.5 11.0 BearCom Acquisition Corp (e)(f) Technology Hardware & Equipment C+550 1.0% 1/5/24 1.3 1.0 1.0 Belk Inc Retailing L+750 1.0% 7/31/25 $ 0.6 0.6 0.6 Belk Inc Retailing 5.0%, 8.0% PIK (8.0% Max PIK) 7/31/25 2.9 1.5 2.1 BGB Group LLC (e)(h)(i) Media & Entertainment L+575 1.0% 8/16/27 48.5 48.2 48.3 Big Bus Tours Ltd (e)(j) Consumer Services L+850 PIK (L+850 Max PIK) 1.0% 3/15/24 16.4 16.4 10.3 Big Bus Tours Ltd (e)(j) Consumer Services E+850 PIK (E+850 Max PIK) 1.0% 3/15/24 € 11.5 12.9 8.3 Bugaboo International BV (e)(h)(i)(n) Consumer Durables & Apparel E+700, 0.0% PIK (7.8% Max PIK) 0.0% 3/20/25 35.0 40.8 39.8 Caprock Midstream LLC (i) Energy L+475 0.0% 11/3/25 $ 13.3 13.0 13.2 CSafe Global (e)(h)(i)(k) Capital Goods L+625 0.8% 12/23/27 60.0 59.9 60.0 CSafe Global (e)(h) Capital Goods L+625 0.8% 8/13/28 17.5 17.5 17.5 Cubic Corp (i) Software & Services L+425 0.8% 5/25/28 9.2 9.2 9.2 Eagleclaw Midstream Ventures LLC (k) Energy L+425 1.0% 6/24/24 11.1 10.6 11.1 EIF Van Hook Holdings LLC (i)(k) Energy L+525 0.0% 9/5/24 8.1 7.8 7.8 Entertainment Benefits Group LLC (e)(k) Media & Entertainment L+575, 2.5% PIK (2.5% Max PIK) 1.0% 9/30/25 2.6 2.6 2.5 Follett Software Co (e)(h)(i) Software & Services L+575 0.8% 8/31/28 37.9 37.5 37.7 Frontline Technologies Group LLC (e)(i) Software & Services L+525 1.0% 9/18/23 19.7 19.8 19.7 Galway Partners Holdings LLC (e)(k) Insurance L+525, 0.0% PIK (1.3% Max PIK) 0.8% 9/29/28 20.3 20.0 20.0 General Datatech LP (e)(j) Software & Services L+625 1.0% 6/18/27 10.2 10.0 10.0 Greystone Equity Member Corp (e) Diversified Financials L+725 3.8% 4/1/26 30.2 30.0 29.9 130 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) HealthChannels LLC (j) Health Care Equipment & Services L+450 0.0% 4/3/25 $ 15.6 $ 15.5 $ 14.3 Hermes UK Ltd (e) Transportation SA+650 0.0% 11/30/27 £ 14.7 19.5 19.3 Higginbotham Insurance Agency Inc (e)(h)(i) Insurance L+550 0.8% 11/25/26 $ 38.0 38.4 38.8 Industria Chimica Emiliana Srl (e)(j)(k)(n) Pharmaceuticals, Biotechnology & Life Sciences E+725 0.0% 9/27/26 € 113.9 125.0 133.3 Insight Global LLC (e)(h)(i) Commercial & Professional Services L+600 0.8% 9/22/28 $ 37.9 37.5 37.4 KBP Investments LLC (e)(h)(i) Food & Staples Retailing L+500 0.8% 5/26/27 23.7 23.6 23.5 Kellermeyer Bergensons Services LLC (e)(i)(j) Commercial & Professional Services L+575 1.0% 11/7/26 29.5 28.1 29.6 Kettle Cuisine LLC (j) Food, Beverage & Tobacco L+375 1.0% 8/25/25 16.4 16.4 15.6 Lakeview Farms Inc (e)(j) Food, Beverage & Tobacco L+625 1.0% 6/10/27 15.7 15.6 15.6 Lexitas Inc (e)(h) Commercial & Professional Services L+600 1.0% 11/14/25 8.0 7.9 8.1 Lexitas Inc (e)(h) Commercial & Professional Services L+600 1.0% 11/14/25 10.7 10.7 10.8 Lionbridge Technologies Inc (e)(i)(j) Consumer Services L+700 1.0% 12/29/25 28.3 27.7 28.9 Lipari Foods LLC (e)(k) Food & Staples Retailing L+575 1.0% 1/6/25 65.3 65.2 65.4 Lloyd’s Register Quality Assurance Ltd (e)(i)(k) Consumer Services E+600, 0.0% PIK (6.3% Max PIK) 0.0% 12/2/28 € 44.3 48.6 48.9 Monitronics International Inc (h)(i)(k) Commercial & Professional Services L+500 1.5% 7/3/24 $ 35.5 32.9 35.6 Motion Recruitment Partners LLC (e)(h)(j) Commercial & Professional Services L+650 1.0% 12/22/25 25.0 24.7 24.7 New Era Technology Inc (e)(j) Software & Services L+625 1.0% 10/31/26 10.0 10.0 10.0 One Call Care Management Inc (h) Health Care Equipment & Services L+550 0.8% 4/22/27 5.0 5.0 5.0 Ontic Engineering & Manufacturing Inc (h) Capital Goods L+400 0.0% 10/30/26 2.1 1.9 2.1 Parata Systems (e)(h)(i) Health Care Equipment & Services L+575 1.0% 6/30/27 57.9 57.7 58.0 131 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Precision Global Corp (e)(j) Materials L+475 1.0% 8/3/24 $ 9.0 $ 8.7 $ 8.7 Premium Credit Ltd (e)(h)(i) Diversified Financials L+650 0.0% 1/16/26 £ 49.4 63.9 67.0 Pretium Packaging LLC (j) Household & Personal Products L+400 0.5% 10/2/28 $ 1.6 1.6 1.6 Project Marron (e)(h)(j) Consumer Services B+625 0.0% 7/2/25 A$ 63.6 43.9 43.6 Project Marron (e)(i)(j) Consumer Services C+625 0.0% 7/2/25 C$ 52.5 39.9 39.1 Project Marron (e)(h) Consumer Services B+575 0.0% 7/2/25 A$ 3.2 2.3 2.2 Pure Fishing Inc (i) Consumer Durables & Apparel L+450 0.0% 12/22/25 $ 9.9 9.8 9.6 Qdoba Restaurant Corp (h)(k) Consumer Services L+700 1.0% 3/21/25 3.5 3.3 3.4 Reliant Rehab Hospital Cincinnati LLC (e)(j) Health Care Equipment & Services L+625 0.0% 2/28/26 15.6 15.2 15.3 Revere Superior Holdings Inc (e)(k) Software & Services L+575 1.0% 9/30/26 19.8 19.8 19.9 Rise Baking Company (e)(k) Food, Beverage & Tobacco L+625 1.0% 8/13/27 1.0 1.0 1.0 Rise Baking Company (e)(j)(k) Food, Beverage & Tobacco L+625 1.0% 8/13/27 30.7 30.0 30.1 Rise Baking Company (e)(f) Food, Beverage & Tobacco L+625 1.0% 8/13/27 0.9 0.9 0.9 RSC Insurance Brokerage Inc (e)(k) Insurance L+550 0.8% 10/30/26 19.0 19.0 19.2 Safe-Guard Products International LLC (e)(i)(j)(k) Diversified Financials L+500 0.5% 1/27/27 75.5 76.0 75.5 SAMBA Safety Inc (e)(h)(j) Software & Services L+575 1.0% 9/1/27 27.4 27.1 27.2 SavATree LLC (e)(j)(k) Consumer Services L+550 0.8% 10/12/28 40.0 39.7 39.7 Sequa Corp (h)(j)(k) Capital Goods L+675, 0.0% PIK (1.0% Max PIK) 1.0% 11/28/23 45.4 43.9 45.8 SIRVA Worldwide Inc (i) Commercial & Professional Services L+550 0.0% 8/4/25 7.1 6.7 6.4 Staples Canada (e)(h)(i)(j)(k)(n) Retailing C+700 1.0% 9/12/24 C$ 87.0 67.1 70.8 Summit Interconnect Inc (e)(j) Capital Goods L+600 1.0% 9/22/28 $ 10.1 10.0 10.0 132 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Time Manufacturing Co (e)(h)(i) Capital Goods E+650 0.8% 12/1/27 € 29.5 $ 32.7 $ 32.9 Total Safety US Inc (h)(i) Capital Goods L+600 1.0% 8/18/25 $ 11.8 10.4 11.7 Transaction Services Group Ltd (e)(j)(k)(n) Software & Services B+650 0.0% 10/15/26 A$ 162.0 110.9 115.2 West Corp (i) Software & Services L+400 1.0% 10/10/24 $ 12.4 12.2 11.8 West Corp (i) Software & Services L+350 1.0% 10/10/24 2.6 2.5 2.4 Woolpert Inc (e)(h)(i)(j) Capital Goods L+600 1.0% 4/5/28 53.5 53.0 54.3 Yak Access LLC (n) Capital Goods L+500 0.0% 7/11/25 0.8 0.6 0.7 Total Senior Secured Loans—First Lien 2,136.4 2,159.4 Unfunded Loan Commitments (1.9 ) (1.9 ) Net Senior Secured Loans—First Lien 2,134.5 2,157.5 Senior Secured Loans—Second Lien—31.5% Access CIG LLC (h)(i) Commercial & Professional Services L+775 0.0% 2/27/26 2.5 2.2 2.5 Ammeraal Beltech Holding BV (e)(k)(n) Capital Goods L+775 0.0% 9/12/26 81.5 79.8 80.3 Apex Group Limited (e)(h)(i) Diversified Financials L+675 0.5% 7/27/29 32.0 31.7 32.0 EaglePicher Technologies LLC (h) Capital Goods L+725 0.0% 3/8/26 0.4 0.4 0.4 Excelitas Technologies Corp (h)(i)(j) Technology Hardware & Equipment L+750 1.0% 12/1/25 22.6 19.7 22.7 Misys Ltd (h)(i)(k) Software & Services L+725 1.0% 6/13/25 41.2 38.8 41.2 NEP Broadcasting LLC (i) Media & Entertainment L+700 0.0% 10/19/26 6.8 6.7 6.7 OEConnection LLC (e)(h)(i)(j) Software & Services L+825 0.0% 9/25/27 50.0 50.0 49.1 Paradigm Acquisition Corp (h)(k) Health Care Equipment & Services L+750 0.0% 10/26/26 2.5 2.5 2.5 Pretium Packaging LLC (e)(h)(i)(j) Household & Personal Products L+675 0.5% 10/1/29 39.9 39.7 39.5 133 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Pure Fishing Inc (e)(k) Consumer Durables & Apparel L+838 1.0% 12/21/26 $ 46.8 $ 42.0 $ 44.5 Sequa Corp (i)(k) Capital Goods L+1,075, 0.0% PIK (6.8% Max PIK) 1.0% 4/28/24 39.1 33.9 39.1 SIRVA Worldwide Inc (j) Commercial & Professional Services L+950 0.0% 8/3/26 3.8 3.1 3.3 Watchfire Enterprises Inc (e)(j) Technology Hardware & Equipment L+825 1.0% 10/2/24 9.3 9.3 9.3 Wittur Holding GmbH (e)(j)(k)(n) Capital Goods E+850, 0.5% PIK (0.5% Max PIK) 0.0% 9/23/27 € 120.5 131.5 129.3 Total Senior Secured Loans—Second Lien 491.3 502.4 Other Senior Secured Debt—1.5% One Call Care Management Inc (e) Health Care Equipment & Services 8.5% PIK (8.5% Max PIK) 11/1/28 $ 23.5 22.9 23.5 Total Other Senior Secured Debt 22.9 23.5 Asset Based Finance—31.0% Abacus JV, Private Equity (e) Insurance 31,916,927 32.7 34.2 Altavair AirFinance, Private Equity (e) Capital Goods 36,500,000 43.0 44.1 GA Capital Specialty Lending Fund, Limited Partnership Interest (e)(n) Diversified Financials 1 — 4.5 Global Lending Services LLC, Private Equity (e)(n) Diversified Financials 3,653,142 3.7 4.6 Home Partners JV, Common Stock (e)(o) Real Estate 15,249,687 22.9 37.6 Home Partners JV, Structured Mezzanine (e) Real Estate 11.0% PIK (11.0% Max PIK) 3/25/29 $ 38.4 38.4 38.4 134 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest (e)(n)(o) Capital Goods $ 19,642,734 $ 24.4 $ 15.9 Lenovo Group Ltd, Structured Mezzanine (e)(n) Technology Hardware & Equipment 7.8% 9/22/24 € 6.9 8.1 7.9 Lenovo Group Ltd, Structured Mezzanine (e)(n) Technology Hardware & Equipment 7.8% 9/22/24 $ 10.7 10.7 10.7 Lenovo Group Ltd, Structured Mezzanine (e)(n) Technology Hardware & Equipment 11.8% 9/22/24 € 4.8 5.6 5.4 Lenovo Group Ltd, Structured Mezzanine (e)(n) Technology Hardware & Equipment 11.8% 9/22/24 £ 1.3 1.8 1.7 Lenovo Group Ltd, Structured Mezzanine (e)(n) Technology Hardware & Equipment 7.8% 9/22/24 £ 1.9 2.6 2.5 Lenovo Group Ltd, Structured Mezzanine (e)(n) Technology Hardware & Equipment 11.8% 9/22/24 $ 7.4 7.4 7.4 Luxembourg Life Fund - Absolute Return Fund I, 1L Term Loan (e)(h)(n) Insurance L+750 1.5% 2/27/25 $ 26.8 26.9 27.1 Luxembourg Life Fund - Absolute Return Fund III, Term Loan (e)(h)(k)(n) Insurance L+925 0.0% 5/27/26 $ 57.5 57.0 57.0 Luxembourg Life Fund - Long Term Growth Fund, Term Loan (e)(h)(i)(k)(n) Insurance L+925 0.0% 4/1/23 $ 94.6 94.1 94.5 NewStar Clarendon 2014-1A Class D (e)(k)(n) Diversified Financials 18.3% 1/25/27 $ 30.0 9.3 15.3 Pretium Partners LLC P1, Structured Mezzanine (e)(h)(i) Real Estate 2.8%, 5.3% PIK (5.3% Max PIK) 10/22/26 $ 18.9 18.6 19.1 Sealane Trade Finance (e)(m) Banks L+375 0.0% 5/8/23 $ 5.0 5.0 5.0 135 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Sealane Trade Finance (e)(m) Banks L+963 0.0% 5/8/23 $ 11.2 $ 11.2 $ 11.2 Toorak Capital Partners LLC, Private Equity (e) Real Estate 40,000,000 50.2 50.4 Total Asset Based Finance 473.6 494.5 Equity/Other—5.1% Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock (e)(l)(o) Energy 13,556 3.6 3.1 Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim (e)(l)(o) Energy 115,178,571 30.5 26.4 Belk Inc, Common Stock (e)(o) Retailing 381 — — One Call Care Management Inc, Common Stock (e)(o) Health Care Equipment & Services 34,873 2.2 2.4 One Call Care Management Inc, Preferred Stock A (e)(o) Health Care Equipment & Services 371,993 23.7 26.1 One Call Care Management Inc, Preferred Stock B (e) Health Care Equipment & Services 9.0% PIK (9.0% Max PIK) 10/25/29 7,672,346 8.8 9.2 Zeta Interactive Holdings Corp, Common Stock (k)(o) Software & Services 1,766,696 15.1 14.9 Total Equity/Other 83.9 82.1 TOTAL INVESTMENTS—204.3% $ 3,206.2 $ 3,260.0 Derivative Instruments— (0.4)% Foreign currency forward contracts $ (6.7 ) (a) Security may be an obligation of one or more entities affiliated with the named company. (b) Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of December 31, 2021, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.21%, the Euro Interbank Offered Rate, or EURIBOR, was (0.57)%, Canadian Dollar Offer Rate, or CDOR was 0.52%, the Bank Bill Swap Bid Rate, or BBSY was 136 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) 0.12%, the Reykjavik Interbank Offered Rate, or REIBOR, was 2.65%, the Stockholm Interbank Offered Rate, or STIBOR, was (0.05)%, the Sterling Overnight Index Average, or SONIA, was 0.19%, and the U.S. Prime Lending Rate, or Prime, was 3.25%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. (c) Denominated in U.S. dollars unless otherwise noted. (d) Fair value determined by the Company’s board of directors (see Note 8). (e) Investments classified as Level 3. (f) Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding. (g) Not used. (h) Security or portion thereof held within Big Cedar Creek LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with BNP Paribas. (i) Security or portion thereof held within Boxwood Drive Funding and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with BNP Paribas (j) Security or portion thereof held within Chestnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Citibank, N.A. (k) Security or portion thereof held within Green Creek LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Goldman Sachs Bank. (l) Security or portion thereof held within IC II American Energy Investment, Inc., a wholly-owned subsidiary of the company. (m) Security or portion thereof held within JCF Cayman Ltd and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Goldman Sachs. (n) Security or portion thereof held within Jersey City Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Goldman Sachs. (o) Security is non-income producing. Credit Opportunities Partners JV, LLC Portfolio As of December 31, 2020 (in millions) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Senior Secured Loans—First Lien—124.6% A10 Capital LLC (e)(h)(i) Diversified Financials L+650 1.0% 5/1/23 $ 17.5 $ 17.3 $ 17.3 ABB CONCISE Optical Group LLC (i) Retailing L+500 1.0% 6/15/23 12.1 10.0 11.0 Apex Group Limited (e)(h) Diversified Financials L+700 1.3% 6/15/23 0.7 0.6 0.7 Apex Group Limited (e)(f) Diversified Financials L+700 1.3% 6/15/23 1.4 1.3 1.4 Apex Group Limited (e)(h)(i) Diversified Financials L+700 1.3% 6/16/25 67.4 67.2 68.1 Ardonagh Group Ltd (e)(k) Insurance E+750, 0.0% PIK (2.3% Max PIK) 1.0% 7/14/26 € 0.5 0.5 0.6 137 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Ardonagh Group Ltd (e)(k) Insurance L+750, 0.0% PIK (2.3% Max PIK) 0.8% 7/14/26 £ 3.7 $ 4.6 $ 5.2 Arrotex Australia Group Pty Ltd (e)(h)(i) Pharmaceuticals, Biotechnology & Life Sciences B+525 1.0% 7/10/24 A$ 68.9 46.0 53.6 Arrotex Australia Group Pty Ltd (e)(f) Pharmaceuticals, Biotechnology & Life Sciences B+525 1.0% 7/10/24 4.9 3.8 3.8 BearCom Acquisition Corp (e)(f) Technology Hardware & Equipment C+550 1.0% 1/5/24 C$ 1.3 1.0 1.0 BearCom Acquisition Corp (e)(i) Technology Hardware & Equipment L+550 1.0% 7/5/24 $ 2.2 2.2 2.2 BearCom Acquisition Corp (e)(i) Technology Hardware & Equipment C+550 1.0% 7/5/24 C$ 14.5 10.5 11.1 Belk Inc (g)(l) Retailing L+675 1.0% 7/31/25 $ 3.8 3.4 1.4 Big Bus Tours Ltd (e)(i) Consumer Services E+850 PIK (E+850 Max PIK) 1.0% 3/18/24 € 10.5 11.7 8.7 Big Bus Tours Ltd (e)(i) Consumer Services L+850 PIK (L+850 Max PIK) 1.0% 3/18/24 $ 14.9 14.9 10.1 Bugaboo International BV (e)(h) Consumer Durables & Apparel E+775 PIK (E+775 Max PIK) 0.0% 3/20/25 € 35.0 40.6 42.7 Cambium Learning Group Inc (i)(k) Consumer Services L+450 0.0% 12/18/25 $ 45.1 43.4 44.9 Catapult Learning LLC (e)(i) Consumer Services L+475 1.0% 4/24/23 2.1 2.1 2.1 Catapult Learning LLC (e)(f) Consumer Services L+475 1.0% 4/24/23 2.3 2.4 2.3 Catapult Learning LLC (e)(i)(k) Consumer Services L+635 1.0% 4/24/23 39.1 38.7 38.7 Catapult Learning LLC (e)(f) Consumer Services L+635 1.0% 4/24/23 1.2 1.2 1.1 Catapult Learning LLC (e)(h)(i) Consumer Services L+635 1.0% 4/24/23 14.9 14.7 14.7 Catapult Learning LLC (e)(f) Consumer Services L+635 1.0% 4/24/23 0.4 0.4 0.4 Child Development Schools Inc (e)(i) Consumer Services L+425 1.0% 5/21/23 9.3 9.3 9.2 Child Development Schools Inc (e)(f) Consumer Services L+425 5/21/23 2.5 2.5 2.5 CSM Bakery Products (h) Food, Beverage & Tobacco L+625 1.0% 1/4/22 1.3 1.2 1.3 138 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Diamond Resorts International Inc (h) Consumer Services L+375 1.0% 9/2/23 $ 5.7 $ 5.6 $ 5.5 Eacom Timber Corp (e)(h)(i)(k) Materials L+650 1.0% 11/20/23 59.2 59.2 59.2 Frontline Technologies Group LLC (e) Software & Services L+575 1.0% 9/18/23 19.9 20.0 20.0 HealthChannels LLC (i) Health Care Equipment & Services L+450 0.0% 4/3/25 24.3 24.1 23.3 Huws Gray Ltd (e)(h) Materials L+525 0.5% 4/11/25 £ 21.7 28.7 29.3 Huws Gray Ltd (e)(f) Materials L+525 0.5% 4/11/25 6.7 8.9 8.9 ID Verde (e)(h) Commercial & Professional Services E+500, 2.3% PIK (2.3% Max PIK) 0.0% 3/29/24 € 3.1 3.7 3.8 ID Verde (e)(h) Commercial & Professional Services L+525, 2.3% PIK (2.3% Max PIK) 0.0% 3/29/24 £ 1.3 1.7 1.8 ID Verde (e)(h) Commercial & Professional Services E+500, 2.3% PIK (2.3% Max PIK) 0.0% 3/29/25 € 16.3 19.1 19.9 ID Verde (e)(h) Commercial & Professional Services L+525, 2.3% PIK (2.3% Max PIK) 0.0% 3/29/25 £ 6.0 7.9 8.1 Industria Chimica Emiliana Srl (e)(h)(i) Pharmaceuticals, Biotechnology & Life Sciences E+725 0.0% 6/30/26 € 62.5 68.6 77.3 Kellermeyer Bergensons Services LLC (e)(i)(k) Commercial & Professional Services L+650 1.0% 11/7/26 $ 29.8 28.2 30.1 Kettle Cuisine LLC (i) Food, Beverage & Tobacco L+375 1.0% 8/25/25 16.6 16.5 14.2 Koosharem LLC (k) Commercial & Professional Services L+450 1.0% 4/18/25 17.1 17.0 16.8 Lionbridge Technologies Inc (e)(i)(k) Consumer Services L+625 1.0% 12/29/25 29.8 29.0 29.8 MedAssets Inc (h) Health Care Equipment & Services L+450 1.0% 10/20/22 6.8 6.8 6.8 Parts Town LLC (e)(h) Retailing L+550 1.0% 10/15/25 24.8 24.6 23.8 Precision Global Corp (e)(i) Materials L+475 1.0% 8/3/24 9.1 8.7 8.3 Premium Credit Ltd (e)(k) Diversified Financials L+650 0.0% 1/16/26 £ 10.6 13.0 14.3 Project Marron (e)(i) Consumer Services C+575 0.0% 7/2/25 C$ 23.8 18.0 17.5 Project Marron (e)(i) Consumer Services B+575 0.0% 7/3/25 A$ 28.8 19.5 20.5 139 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Qdoba Restaurant Corp (h) Consumer Services L+700 1.0% 3/21/25 $ 1.6 $ 1.4 $ 1.5 Reliant Rehab Hospital Cincinnati LLC (e) Health Care Equipment & Services L+675 0.0% 9/2/24 19.9 19.2 19.2 Roadrunner Intermediate Acquisition Co LLC (e)(i)(k) Health Care Equipment & Services L+675 1.0% 3/15/23 19.9 19.7 19.9 Safe-Guard Products International LLC (e)(i) Diversified Financials L+575 0.0% 1/27/27 20.5 20.4 20.4 Sequa Corp (i) Capital Goods L+675, 0.0% PIK (1.0% Max PIK) 1.0% 11/28/23 12.2 11.6 12.3 Smart & Final Stores LLC (k) Food & Staples Retailing L+675 0.0% 6/20/25 18.5 17.1 18.7 Staples Canada (e)(h) Retailing C+700 1.0% 9/12/24 C$ 43.6 32.9 34.6 Technimark LLC (i) Materials L+375 0.0% 8/8/25 $ 18.4 18.3 18.2 Total Safety US Inc (k) Capital Goods L+600 1.0% 8/16/25 3.9 3.2 3.7 Transaction Services Group Ltd (e)(h)(i) Software & Services B+600 0.0% 10/15/26 A$ 99.5 68.6 71.2 Virgin Pulse Inc (e) Software & Services L+650 1.0% 5/22/25 $ 19.9 19.9 19.9 Yak Access LLC (h) Capital Goods L+500 0.0% 7/11/25 0.8 0.6 0.7 Total Senior Secured Loans—First Lien 1,013.2 1,035.6 Unfunded Loan Commitments (21.6 ) (21.6 ) Net Senior Secured Loans—First Lien 991.6 1,014.0 Senior Secured Loans—Second Lien—28.9% Access CIG LLC (k) Commercial & Professional Services L+775 0.0% 2/27/26 0.6 0.5 0.6 Ammeraal Beltech Holding BV (e)(h) Capital Goods L+800 1.0% 9/12/26 40.7 40.0 39.2 BCA Marketplace PLC (e)(h) Retailing L+825 0.0% 11/22/27 £ 47.7 62.4 64.0 Excelitas Technologies Corp (k) Technology Hardware & Equipment L+750 1.0% 12/1/25 $ 8.4 6.6 8.5 140 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Misys Ltd (k) Software & Services L+725 1.0% 6/13/25 $ 6.2 $ 4.9 $ 6.2 Resource Label Group LLC (e)(i) Materials L+850 1.0% 11/26/23 15.0 13.4 14.9 Sequa Corp (h) Capital Goods L+1,075, 0.0% PIK (6.8% Max PIK) 1.0% 4/28/24 19.4 15.3 16.9 SIRVA Worldwide Inc (i) Commercial & Professional Services L+950 0.0% 8/3/26 3.8 3.0 3.2 Watchfire Enterprises Inc (e)(i) Technology Hardware & Equipment L+800 1.0% 10/2/21 9.3 7.6 9.1 WireCo WorldGroup Inc (h) Capital Goods L+900 1.0% 9/30/24 10.3 8.4 8.4 Wittur Holding GmbH (e)(h)(i) Capital Goods E+850, 0.5% PIK (0.5% Max PIK) 0.0% 9/23/27 € 55.3 60.3 64.6 Total Senior Secured Loans—Second Lien 222.4 235.6 Other Senior Secured Debt—1.0% Cleaver-Brooks Inc (h) Capital Goods 7.9% 3/1/23 $ 8.4 7.1 8.3 Total Other Senior Secured Debt 7.1 8.3 Subordinated Debt—5.3% Home Partners of America Inc (e)(h) Real Estate L+625 1.0% 10/8/22 42.9 42.6 42.8 Total Subordinated Debt 42.6 42.8 Asset Based Finance—23.8% Comet Aircraft S.a.r.l., Common Stock (e)(g)(h)(l) Capital Goods 12.4% 2/28/22 $ 21.5 21.5 4.8 141 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) GA Capital Specialty Lending Fund, Limited Partnership Interest (e)(h) Diversified Financials N/A $ — $ 8.9 Global Lending Services LLC, Private Equity (e)(h)(l) Diversified Financials 6,981,478 7.0 7.8 KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest (e)(h) Capital Goods 19,642,734 24.4 21.8 Lenovo Group Ltd, Structured Mezzanine (e)(h) Technology Hardware & Equipment 8.0% 6/22/22 $ 15.5 15.5 15.5 Lenovo Group Ltd, Structured Mezzanine (e)(h) Technology Hardware & Equipment 12.0% 6/22/22 $ 9.8 9.8 9.8 Luxembourg Life Fund - Absolute Return Fund I, 1L Term Loan (e)(h) Insurance L+750 1.5% 2/27/25 $ 30.6 30.7 30.7 Luxembourg Life Fund - Long Term Growth Fund, 1L Term Loan (e)(h) Insurance 9.0% 7/23/21 $ 32.5 32.0 32.5 MP4 2013-2A Class Subord. B (e)(h)(l) Diversified Financials 7/25/29 $ 21.0 4.2 3.1 NewStar Clarendon 2014-1A Class D (e)(h)(l) Diversified Financials 1/25/27 $ 17.9 6.5 5.6 Pretium Partners LLC P1, Structured Mezzanine (e)(k) Real Estate 2.8%, 5.3% PIK (5.3% Max PIK) 10/22/26 $ 12.0 11.7 12.0 Pretium Partners LLC P2, Structured Mezzanine (e)(k) Real Estate 2.0%, 7.5% PIK (7.5% Max PIK) 5/29/25 $ 25.3 23.8 25.5 Sealane Trade Finance (e)(j) Banks L+375 0.0% 5/8/23 $ 5.0 5.0 5.0 142 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Company (a) Footnotes Industry Interest Rate (b) Base Rate Floor Maturity Date No. Shares/ Principal Amount (c) Cost Fair Value (d) Sealane Trade Finance (e)(j) Banks L+963 0.0% 5/8/23 $ 12.0 $ 12.0 $ 11.1 Total Asset Based Finance 204.1 194.1 Equity/Other—6.1% ASG Technologies, Common Stock (e)(i)(l) Software & Services 540,346 30.0 20.1 Home Partners of America Inc, Common Stock (e)(i)(l) Real Estate 18,419 30.0 29.4 Total Equity/Other 60.0 49.5 TOTAL INVESTMENTS—189.7% $ 1,527.8 $ 1,544.3 Derivative Instruments—(1.4)% Foreign currency forward contracts $ (11.4 ) (a) Security may be an obligation of one or more entities affiliated with the named company. (b) Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of December 31, 2020, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.24% and the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Canadian Dollar Offer Rate, or CDOR, was 0.48% and the Australian Interbank Rate, or BBSY or “B”, was 0.06%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. (c) Denominated in U.S. dollars unless otherwise noted. (d) Fair value determined by the Company’s board of directors. (e) Investments classified as Level 3. (f) Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding. (g) Asset is on non-accrual status. (h) Security or portion thereof held within Jersey City Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Goldman Sachs. (i) Security or portion thereof held within Chestnut Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Citibank, N.A. (j) Security or portion thereof held within JCF Cayman Ltd and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Goldman Sachs. (k) Security or portion thereof held within Boxwood Drive Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with BNP Paribas. (l) Security is non-income producing. 143 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 6. Investment Portfolio (continued) Below is selected balance sheet information for COPJV as of December 31, 2021 and 2020: As of December 31, 2021 December 31, 2020 Selected Balance Sheet Information Total investments, at fair value $ 3,260.0 $ 1,544.3 Cash and other assets 414.3 188.6 Total assets 3,674.3 1,732.9 Debt 1,442.0 722.0 Other liabilities 636.7 196.8 Total liabilities 2,078.7 918.8 Member’s equity $ 1,595.6 $ 814.1 Below is selected statement of operations information for COPJV for the years ended December 31, 2021 and 2020: As of December 31, 2021 December 31, 2020 Selected Statement of Operation Information Total investment income $ 189.9 $ 115.7 Expenses Interest expense 40.3 21.6 Custodian and accounting fees 1.1 1.0 Administrative services 6.7 4.2 Professional services 0.7 0.6 Other 0.5 0.1 Total expenses 49.3 27.5 Net investment income 140.6 88.2 Net realized and unrealized losses 56.3 (106.4 ) Net increase in net assets resulting from operations $ 196.9 $ (18.2 ) Note 7. Financial Instruments The following is a summary of the fair value and location of the Company’s derivative instruments in the consolidated balance sheets held as of December 31, 2021 and 2020: Fair Value Derivative Instrument Statement Location December 31, 2021 December 31, 2020 Foreign currency forward contracts Unrealized appreciation on foreign currency forward contracts $ 9 $ 1 Foreign currency forward contracts Unrealized depreciation on foreign currency forward contracts (1 ) (3 ) Total $ 8 $ (2 ) 144 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 7. Financial Instruments (continued) Net realized and unrealized gains and losses on derivative instruments recorded by the Company for the years ended December 31, 2021 and 2020 are in the following locations in the consolidated statements of operations: Net Realized Gains (Losses) Derivative Instrument Statement Location December 31, 2021 December 31, 2020 Foreign currency forward contracts Net realized gain (loss) on foreign currency forward contracts 0 0 Total $ 0 $ 0 Net Unrealized Gains (Losses) Derivative Instrument Statement Location December 31, 2021 December 31, 2020 Foreign currency forward contracts Net change in unrealized appreciation (depreciation) on foreign currency forward contracts 12 (3 ) Total $ 12 $ (3 ) Offsetting of Derivative Instruments The Company has derivative instruments that are subject to master netting agreements. These agreements include provisions to offset positions with the same counterparty in the event of default by one of the parties. The Company’s unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the condensed consolidated statements of assets and liabilities. The following tables present the Company’s assets and liabilities related to derivatives by counterparty, net of amounts available for offset under a master netting arrangement and net of any collateral received or pledged by the Company for such assets and liabilities as of December 31, 2021 and 2020: December 31, 2021 Counterparty Derivative Assets Subject to Master Netting Agreement Derivatives Available for Offset Non-cash Collateral Received (1) Cash Collateral Received (1) Net Amount of Derivative Assets (2) JP Morgan Chase Bank $ 9 $ (1 ) $ — $ — $ 8 Total $ 9 $ (1 ) $ — $ — $ 8 Counterparty Derivative Liabilities Subject to Master Netting Agreement Derivatives Available for Offset Non-cash Collateral Received (1) Cash Collateral Received (1) Net Amount of Derivative Liabilities (3) JP Morgan Chase Bank $ (1 ) $ 1 $ — $ — $ — Total $ (1 ) $ 1 $ — $ — $ — 145 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 7. Financial Instruments (continued) December 31, 2020 Counterparty Derivative Assets Subject to Master Netting Agreement Derivatives Available for Offset Non-cash Collateral Received (1) Cash Collateral Received (1) Net Amount of Derivative Assets (2) JP Morgan Chase Bank $ 1 $ (1 ) $ — $ — $ — Total $ 1 $ (1 ) $ — $ — $ — Counterparty Derivative Liabilities Subject to Master Netting Agreement Derivatives Available for Offset Non-cash Collateral Received (1) Cash Collateral Received (1) Net Amount of Derivative Liabilities (3) JP Morgan Chase Bank $ (3 ) $ 1 $ — $ — $ (2 ) Total $ (3 ) $ 1 $ — $ — $ (2 ) (1) In some instances, the actual amount of the collateral received and/or pledged may be more than the amount shown due to overcollateralization. (2) Net amount of derivative assets represents the net amount due from the counterparty to the Company. (3) Net amount of derivative liabilities represents the net amount due from the Company to the counterparty. Foreign Currency Forward Contracts and Cross Currency Swaps: The Company may enter into foreign currency forward contracts and cross currency swaps from time to time to facilitate settlement of purchases and sales of investments denominated in foreign currencies and to economically hedge the impact that an adverse change in foreign exchange rates would have on the value of the Company’s investments denominated in foreign currencies. A foreign currency forward contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. These contracts are marked-to-market by recognizing the difference between the contract forward exchange rate and the forward market exchange rate on the last day of the period presented as unrealized appreciation or depreciation. Realized gains or losses are recognized when forward contracts are settled. Risks arise as a result of the potential inability of the counterparties to meet the terms of their contracts. The Company attempts to limit counterparty risk by only dealing with well-known counterparties. Cross currency swaps are interest rate swaps in which interest cash flows are exchanged between two parties based on the notional amounts of two different currencies. These swaps are marked-to-market by recognizing the difference between the present value of cash flows of each leg of the swaps as unrealized appreciation or depreciation. Realized gain or loss is recognized when periodic payments are received or paid and the swaps are terminated. The entire notional value of a cross currency swap is subject to the risk that the counterparty to the swap will default on its contractual delivery obligations. The Company attempts to limit counterparty risk by only dealing with well-known counterparties. The Company utilizes cross currency swaps from time to time in order to hedge a portion of its investments in foreign currency. The average notional balance for foreign currency forward contracts during the year ended December 31, 2021 and 2020 was $157.6 and $41.2, respectively. See consolidated schedule of investments for the Company’s open foreign currency forward contracts. Note 8. Fair Value of Financial Instruments Under existing accounting guidance, fair value is defined as the price that the Company would receive upon selling an investment or pay to transfer a liability in an orderly transaction to a market participant in the principal or most advantageous 146 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 8. Fair Value of Financial Instruments (continued) market for the investment. This accounting guidance emphasizes valuation techniques that maximize the use of observable market inputs and minimize the use of unobservable inputs. Inputs refer broadly to the assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the assumptions market participants would use in pricing an asset or liability developed based on the best information available in the circumstances. The Company classifies the inputs used to measure these fair values into the following hierarchy as defined by current accounting guidance: Level 1 : Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 : Inputs that are quoted prices for similar assets or liabilities in active markets. Level 3 : Inputs that are unobservable for an asset or liability. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. As of December 31, 2021 and 2020, the Company’s investments were categorized as follows in the fair value hierarchy: Valuation Inputs December 31, 2021 December 31, 2020 Level 1—Price quotations in active markets $ 30 $ — Level 2—Significant other observable inputs 703 260 Level 3—Significant unobservable inputs 13,972 5,807 Investments measured at net asset value (1) 1,396 713 $ 16,101 $ 6,780 (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet. In addition, the Company had foreign currency forward contracts, as described in Note 7, which were categorized as Level 2 in the fair value hierarchy as of December 31, 2021 and 2020. The Company’s investments consist primarily of debt investments that were acquired directly from the issuer. Debt investments, for which broker quotes are not available, are valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, the borrower’s ability to adequately service its debt, prevailing interest rates for like investments, expected cash flows, call features, anticipated repayments and other relevant terms of the investments. Except as described below, all of the Company’s equity/other investments are also valued by independent valuation firms, which determine the fair value of such investments by considering, among other factors, contractual rights ascribed to such investments, as well as various income scenarios and multiples of earnings before interest, taxes, depreciation and amortization, or EBITDA, cash flows, net income, revenues or, in limited instances, book value or liquidation value. An investment that is newly issued and purchased near the date of the financial statements is valued at cost if the Company’s board of directors determines that the cost of such investment is the best indication of its fair value. Such investments described above are typically classified as Level 3 within the fair value hierarchy. Investments that are traded on an active public market are valued at their closing price as of the date of the financial statements and are classified as Level 1 within the fair value hierarchy. Except as described above, the Company typically values its other investments by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which are provided by independent third-party pricing services and screened for validity by such services and are typically classified as Level 2 within the fair value hierarchy. The Company periodically benchmarks the bid and ask prices it receives from the third-party pricing services and/or dealers and independent valuation firms, as applicable, against the actual prices at which the Company purchases and sells its 147 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 8. Fair Value of Financial Instruments (continued) investments. Based on the results of the benchmark analysis and the experience of the Company’s management in purchasing and selling these investments, the Company believes that these prices are reliable indicators of fair value. The valuation committee and the board of directors reviewed and approved the valuation determinations made with respect to these investments in a manner consistent with the Company’s valuation policy. The following is a reconciliation for the years ended December 31, 2021 and 2020 of investments for which significant unobservable inputs (Level 3) were used in determining fair value: For the Year Ended December 31, 2021 Senior Secured Loans—First Lien Senior Secured Loans—Second Lien Other Senior Secured Debt Subordinated Debt Asset Based Finance Equity/ Other Total Fair value at beginning of period $ 3,276 $ 862 $ 36 $ 152 $ 951 $ 530 $ 5,807 Accretion of discount (amortization of premium) 46 11 — — 3 — 60 Net realized gain (loss) 88 (88 ) (21 ) (7 ) (24 ) 205 153 Net change in unrealized appreciation (depreciation) 204 122 9 (7 ) 186 59 573 Purchases 9,561 1,105 52 29 2,039 503 13,289 Paid-in-kind interest 22 6 1 — 49 31 109 Sales and repayments (3,655 ) (813 ) (48 ) (93 ) (959 ) (454 ) (6,022 ) Transfers into Level 3 — — — — — 3 3 Transfers out of Level 3 — — — — — — — Fair value at end of period $ 9,542 $ 1,205 $ 29 $ 74 $ 2,245 $ 877 $ 13,972 The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date $ 207 $ 42 $ (17) $ (14) $ 166 $ 96 $ 480 For the Year Ended December 31, 2020 Senior Secured Loans—First Lien Senior Secured Loans—Second Lien Other Senior Secured Debt Subordinated Debt Asset Based Finance Equity/ Other Total Fair value at beginning of period $ 3,358 $ 1,015 $ 152 $ 313 $ 737 $ 572 $ 6,147 Accretion of discount (amortization of premium) 7 4 — 1 — 1 13 Net realized gain (loss) (131 ) (33 ) (94 ) (85 ) (7 ) (85 ) (435 ) Net change in unrealized appreciation (depreciation) (24 ) (79 ) 17 (1 ) (50 ) (21 ) (158 ) Purchases 1,397 100 — 48 426 65 2,036 Paid-in-kind interest 18 6 3 13 26 16 82 Sales and repayments (1,407 ) (151 ) (42 ) (137 ) (181 ) (18 ) (1,936 ) Transfers into Level 3 58 — — — — — 58 Transfers out of Level 3 — — — — — — — Fair value at end of period $ 3,276 $ 862 $ 36 $ 152 $ 951 $ 530 $ 5,807 The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to investments still held at the reporting date $ (49 ) $ (85 ) $ (6 ) $ (11 ) $ (3 ) $ (92 ) $ (246 ) 148 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 8. Fair Value of Financial Instruments (continued) The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements as of December 31, 2021 and 2020 were as follows: Type of Investment Fair Value at December 31, 2021 Valuation Technique (1) Unobservable Input Range Impact to Valuation from an Increase in Input (2) Senior Debt $ 8,746 Discounted Cash Flow Discount Rate 5.3% - 30.3% (8.5%) Decrease 1,242 Cost 737 Waterfall EBITDA Multiple 0.1x - 11.0x (7.0x) Increase 51 Other (3) Subordinated Debt 53 Waterfall EBITDA Multiple 7.0x - 7.8x (7.8x) Increase 21 Cost Asset Based Finance 1,021 Waterfall EBITDA Multiple 1.0x - 23.1x (4.1x) Increase 744 Discounted Cash Flow Discount Rate 4.2% - 16.2% (10.1%) Decrease 359 Cost 117 Other (3) 4 Indicative Dealer Quotes 50.8% - 50.8% (50.8%) Increase Equity/Other 737 Waterfall EBITDA Multiple 0.1x - 16.0x (6.1x) Increase 111 Discounted Cash Flow Discount Rate 7.3% - 25.0% (9.8%) Decrease 5 Option Pricing Model Equity Illiquidity Discount 65.0% - 65.0% (65.0%) Decrease 22 Other (3) 2 Cost Total $ 13,972 Type of Investment Fair Value at December 31, 2020 Valuation Technique (1) Unobservable Input Range Impact to Valuation from an Increase in Input (2) Senior Debt $ 3,519 Discounted Cash Flow Discount Rate 5.7% - 18.6% (9.0%) Decrease 418 Waterfall EBITDA Multiple 0.1x - 12.7x (7.2x) Increase 237 Cost Subordinated Debt 71 Discounted Cash Flow Discount Rate 12.3% - 12.3% (12.3%) Decrease 63 Waterfall EBITDA Multiple 7.8x - 11.5x (7.8x) Increase 18 Cost Asset Based Finance 535 Waterfall EBITDA Multiple 1.0x - 12.0x (3.6x) Increase 287 Discounted Cash Flow Discount Rate 4.2% - 15.2% (9.9%) Decrease 59 Other (3) 70 Cost Equity/Other 346 Waterfall EBITDA Multiple 0.1x - 12.5x (7.4x) Increase 135 Option Pricing Model Equity Illiquidity Discount 11.0% - 50.0% (11.9%) Decrease 49 Other (3) Total $ 5,807 (1) Investments using a market quotes valuation technique were primarily valued by using the midpoint of the prevailing bid and ask prices from dealers on the date of the relevant period end, which were provided by independent third-party pricing services and screened for validity by such services. Investments valued using an EBITDA multiple or a revenue multiple pursuant to the market comparables valuation technique may be conducted using an enterprise valuation waterfall analysis. (2) Represents the directional change in the fair value of the Level 3 investments that would result from an increase to the corresponding unobservable input. A decrease to the input would have the opposite effect. Significant changes in these inputs in isolation could result in significantly higher or lower fair value measurements. (3) Fair value based on expected outcome of proposed corporate transactions and/or other factors. Note 9. Financing Arrangements Prior to June 14, 2019, in accordance with the 1940 Act, the Company was allowed to borrow amounts such that its asset coverage, calculated pursuant to the 1940 Act, was at least 200% after such borrowing. Effective June 15, 2019, the Company’s 149 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 9. Financing Arrangements (continued) asset coverage requirement applicable to senior securities was reduced from 200% to 150%. As of December 31, 2021, the aggregate amount outstanding of senior securities issued by the Company was $9,179. As of December 31, 2021, the Company’s asset coverage was 184%. The following tables present summary information with respect to the Company’s outstanding financing arrangements as of December 31, 2021 and 2020: As of December 31, 2021 Arrangement Type of Arrangement Rate Amount Outstanding Amount Available Maturity Date Ambler Credit Facility (2)(9) Revolving Credit Facility SOFR+2.15% (1) $ 150 $ 50 November 22, 2025 Burholme Prime Brokerage Facility (2)(9) Prime Brokerage Facility L+1.25% (1) — — June 28, 2022 CCT Tokyo Funding Credit Facility (2) Revolving Credit Facility L+1.75% - 2.00% (1)(3) 300 — January 2, 2025 Darby Creek Credit Facility (2)(9) Revolving Credit Facility L+1.85% (1) 250 — February 26, 2025 Dunlap Credit Facility (2)(9) Revolving Credit Facility L+1.85% (1) 485 15 February 26, 2025 Meadowbrook Run Credit Facility (2)(9) Revolving Credit Facility SOFR+2.05% (1) 300 — November 22, 2024 Senior Secured Revolving Credit Facility (2) Revolving Credit Facility L+1.75% - 2.00% (1)(4) SONIA + 0.0326% (1)(4) 2,647 (5) 1,544 (6) December 23, 2025 4.750% Notes due 2022 (7) Unsecured Notes 4.75% 450 — May 15, 2022 4.625% Notes due 2024 (7) Unsecured Notes 4.63% 400 — July 15, 2024 1.650% Notes due 2024 (7) Unsecured Notes 1.65% 500 — October 12, 2024 4.125% Notes due 2025 (7) Unsecured Notes 4.13% 470 — February 1, 2025 4.250% Notes due 2025 (7)(9) Unsecured Notes 4.25% 475 — February 14, 2025 8.625% Notes due 2025 (7) Unsecured Notes 8.63% 250 — May 15, 2025 3.400% Notes due 2026 (7) Unsecured Notes 3.40% 1,000 — January 15, 2026 2.625% Notes due 2027 (7) Unsecured Notes 2.63% 400 — January 15, 2027 3.125% Notes due 2028 (7) Unsecured Notes 3.13% 750 — October 12, 2028 CLO-1 Notes (2)(8) Collateralized Loan Obligation L+1.85% - 3.01% (1) 352 — January 15, 2031 Total $ 9,179 $ 1,609 (1) The benchmark rate is subject to a 0% floor. (2) The carrying amount outstanding under the facility approximates its fair value. (3) The spread over the benchmark rate is determined by reference to the amount outstanding under the facility. (4) The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. (5) Amount includes borrowing in Euros, Canadian dollars, pounds sterling and Australian dollars. Euro balance outstanding of €260 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.14 as of December 31, 2021 to reflect total amount outstanding in U.S. dollars. Canadian dollar balance outstanding of CAD40 has been converted to U.S dollars at an exchange rate of CAD$1.00 to $0.79 as of December 31, 2021 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £130 has been converted to U.S dollars at an exchange rate of £1.00 to $1.35 as of December 31, 2021 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD116 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.73 as of December 31, 2021 to reflect total amount outstanding in U.S. dollars. (6) The amount available for borrowing under the Senior Secured Revolving Credit Facility is reduced by any standby letters of credit issued under the Senior Secured Revolving Credit Facility. As of December 31, 2021, $9 of such letters of credit have been issued. (7) As of December 31, 2021, the fair value of the 4.750% notes, the 4.625% notes, the 1.650% notes, the 4.125% notes, the 4.250% notes, the 8.625% notes, the 3.400% notes, the 2.625% notes and the 3.125% notes was approximately $455, $421, $491, $492, $497, $276, $1,016, $395 and $747, respectively. These valuations are considered Level 2 valuations within the fair value hierarchy. (8) As of December 31, 2021, there were $281.4 of Class A-1R notes outstanding at L+1.85%, $20.5 of Class A-2R notes outstanding at L+2.25%, $32.4 of Class B-1R notes outstanding at L+2.60% and $17.4 of Class B-2R notes outstanding at 3.011%. 150 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 9. Financing Arrangements (continued) (9) As of June 16, 2021, the Company assumed all of FSKR’s obligations under its notes and credit facilities, and FSKR’s wholly-owned special purpose financing subsidiaries became wholly-owned special purpose financing subsidiaries of the Company, in each case, as a result of the consummation of the 2021 Merger. As of December 31, 2020 Arrangement Type of Arrangement Rate Amount Outstanding Amount Available Maturity Date CCT Tokyo Funding Credit Facility (2) Revolving Credit Facility L+1.75% - 2.00% (1)(3) $ 260 $ 40 December 2, 2023 Senior Secured Revolving Credit Facility (2) Revolving Credit Facility L+1.75% - 2.00% (1)(4) 615 (5) 1,000 December 23, 2025 4.750% Notes due 2022 (6) Unsecured Notes 4.75% 450 — May 15, 2022 5.000% Notes due 2022 (6) Unsecured Notes 5.00% 245 — June 28, 2022 4.625% Notes due 2024 (6) Unsecured Notes 4.63% 400 — July 15, 2024 4.125% Notes due 2025 (6) Unsecured Notes 4.13% 470 — February 1, 2025 8.625% Notes due 2025 (6) Unsecured Notes 8.63% 250 — May 15, 2025 3.400% Notes due 2026 (6) Unsecured Notes 3.40% 1,000 — January 15, 2026 CLO-1 Notes (2)(7) Collateralized Loan Obligation L+1.85% - 3.01% (1) 352 — January 15, 2031 Total $ 4,042 $ 1,040 (1) The benchmark rate is subject to a 0% floor. (2) The carrying amount outstanding under the facility approximates its fair value. (3) The spread over the benchmark rate is determined by reference to the amount outstanding under the facility. (4) The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. (5) Amount includes borrowing in Euros, Canadian dollars, pounds sterling and Australian dollars. Euro balance outstanding of €164 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.22 as of December 31, 2020 to reflect total amount outstanding in U.S. dollars. Canadian dollar balance outstanding of CAD63 has been converted to U.S dollars at an exchange rate of CAD1.00 to $0.78 as of December 31, 2020 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £111 has been converted to U.S dollars at an exchange rate of £1.00 to $1.37 as of December 31, 2020 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD6 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.77 as of December 31, 2020 to reflect total amount outstanding in U.S. dollars. (6) As of December 31, 2020, the fair value of the 4.750% notes, the 5.000% notes, the 4.625% notes, the 4.125% notes, the 8.625% notes and the 3.400% notes was approximately $468, $245, $422, $490, $285 and $994, respectively. These valuations are considered Level 2 valuations within the fair value hierarchy. (7) As of December 31, 2020, there were $281.4 of Class A-1R notes outstanding at L+1.85%, $20.5 of Class A-2R notes outstanding at L+2.25%, $32.4 of Class B-1R notes outstanding at L+2.60% and $17.4 of Class B-2R notes outstanding at 3.011%. For the years ended December 31, 2021, 2020 and 2019, the components of total interest expense for the Company’s financing arrangements were as follows: Year Ended December 31, 2021 2020 2019 Arrangement (1) Direct Interest Expense Amortization of Deferred Financing Costs and Discount / Premium Total Interest Expense Direct Interest Expense Amortization of Deferred Financing Costs and Discount Total Interest Expense Direct Interest Expense Amortization of Deferred Financing Costs and Discount Total Interest Expense Ambler Credit Facility (2) $ 2 $ 0 $ 2 $ — $ — $ — $ — $ — $ — Burholme Prime Brokerage Facility (2) — — — — — — — — — CCT New York Funding Credit Facility (2) — — — — — — 2 — 2 CCT Tokyo Funding Credit Facility (2) 4 1 5 6 1 7 8 — 8 Darby Creek Credit Facility (2) 3 0 3 — — — — — — 151 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 9. Financing Arrangements (continued) Year Ended December 31, 2021 2020 2019 Arrangement (1) Direct Interest Expense Amortization of Deferred Financing Costs and Discount / Premium Total Interest Expense Direct Interest Expense Amortization of Deferred Financing Costs and Discount Total Interest Expense Direct Interest Expense Amortization of Deferred Financing Costs and Discount Total Interest Expense Dunlap Credit Facility (2) $ 6 $ 0 $ 6 $ — $ — $ — $ — $ — $ — Juniata River Credit Facility (2) 6 — 6 — — — — — — Locust Street Funding Credit Facility (2) — — — 13 3 16 26 2 28 Meadowbrook Run Credit Facility (2) 4 0 4 — — — — — — Senior Secured Revolving Credit Facility (2) 38 3 41 41 3 44 57 1 58 4.000% Notes due 2019 — — — — — — 8 1 9 4.250% Notes due 2020 — — — — — — 16 1 17 4.750% Notes due 2022 21 1 22 21 0 21 17 0 17 5.000% Notes due 2022 11 — 11 12 — 12 12 — 12 4.625% Notes due 2024 19 1 20 19 1 20 8 1 9 1.650% Notes due 2024 2 0 2 — — — — — — 4.125% Notes due 2025 19 2 21 19 3 22 2 0 2 4.250% Notes due 2025 11 (4 ) 7 — — — — — — 8.625% Notes due 2025 22 1 23 15 1 16 — — — 3.400% Notes due 2026 35 4 39 2 0 2 — — — 2.625% Notes due 2027 6 0 6 — — — — — — 3.125% Notes due 2028 5 0 5 — — — — — — CLO-1 Notes 8 0 8 10 0 10 8 0 8 Total $ 222 $ 9 $ 231 $ 158 $ 12 $ 170 $ 164 $ 6 $ 170 (1) Borrowings of each of the Company’s wholly-owned, special-purpose financing subsidiaries are considered borrowings of the Company for purposes of complying with the asset coverage requirements applicable to BDCs under the 1940 Act. (2) Direct interest expense includes the effect of non-usage fees. The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the year ended December 31, 2021 were $6,380 and 3.45%, respectively. As of December 31, 2021, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 3.04%. The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the year ended December 31, 2020 were $4,240 and 3.71%, respectively. As of December 31, 2020, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 3.88%. Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangements as of December 31, 2021 and December 31, 2020. Ambler Credit Facility On November 22, 2019, Ambler Funding LLC, or Ambler Funding, a wholly-owned special-purpose financing subsidiary of the Company, entered into a revolving credit facility, or the Ambler Credit Facility, with Ally Bank, as administrative agent and arranger, Wells Fargo, as collateral administrator and collateral custodian, and the lenders from time to time party thereto. The Ambler Credit Facility provides for borrowings in U.S. dollars in an initial aggregate principal amount of up to $200 on a committed basis. 152 Table of Contents FS KKR Capital Corp. Notes to Consolidated Financial Statements (continued) (in millions, except share and per share amounts) Note 9. Financing Arrangements (continued) Ambler Funding may elect at one or more times, subject to certain conditions, including the consent of Ally Bank, to increase the maximum committed amount up to $250. The end of the reinvestment period and the maturity date for the Ambler Credit Facility are November 22, 2023 and November 22, 2025, respectively. Borrowings under the Ambler Credit Facility are subject to compliance with a borrowing base test. Under the Ambler Credit Facility, borrowings bear interest at the rate of Term SOFR or Daily Simple SOFR,