10-Q
1
d235201d10q.htm
10-Q
10-Q
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 814-00757
FS KKR Capital Corp.
(Exact name of registrant as specified in its charter)
Maryland
26-1630040
(State of
Incorporation)
(I.R.S. Employer
Identification Number)
201 Rouse Boulevard
Philadelphia, Pennsylvania
19112
(Address of principal executive offices)
(Zip Code)
Registrants telephone number, including area code:
(215) 495-1150
Indicate by
check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to
Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such
files). Yes ☒ No ☐.
Indicate by check mark whether the
registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of large accelerated filer,
accelerated filer, smaller reporting company and emerging growth company in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes ☐ No ☒.
Securities registered
pursuant to Section 12(b) of the Act.
Title of each class
Trading
Symbol(s)
Name of each exchange
on which registered
Common stock, par value $0.001
FSK
New York Stock Exchange
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the
latest practicable date.
There were 284,017,020 shares of the registrants common stock outstanding as of April 30, 2022.
Table of Contents
TABLE OF CONTENTS
Page
PART IFINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
1
Consolidated Balance Sheets as of March
31, 2022 (Unaudited) and December 31, 2021
1
Unaudited Consolidated Statements of Operations for the three months ended
March 31, 2022 and 2021
2
Unaudited Consolidated Statements of Changes in Net Assets for the three months
ended March 31, 2022 and 2021
3
Unaudited Consolidated Statements of Cash Flows for the three months ended
March 31, 2022 and 2021
4
Consolidated Schedules of Investments as of March
31, 2022 (Unaudited) and December 31, 2021
5
Notes to Unaudited Consolidated Financial Statements
67
ITEM 2.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
118
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
135
ITEM 4.
CONTROLS AND PROCEDURES
137
PART IIOTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
139
ITEM 1A.
RISK FACTORS
139
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
139
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES
140
ITEM 4.
MINE SAFETY DISCLOSURES
140
ITEM 5.
OTHER INFORMATION
140
ITEM 6.
EXHIBITS
141
SIGNATURES
149
Table of Contents
PART IFINANCIAL INFORMATION
Item 1.
Financial Statements.
FS KKR Capital Corp.
Consolidated Balance Sheets
(in millions, except share and per share amounts)
March 31,
2022
(Unaudited)
December 31,
2021
Assets
Investments, at fair value
Non-controlled/unaffiliated investments (amortized
cost$12,374 and $12,419, respectively)
$
12,473
$
12,558
Non-controlled/affiliated investments (amortized
cost$1,048 and $860, respectively)
1,077
859
Controlled/affiliated investments (amortized cost$3,061 and $2,778, respectively)
3,004
2,684
Total investments, at fair value (amortized cost$16,483 and $16,057, respectively)
16,554
16,101
Cash
362
258
Foreign currency, at fair value (cost$7 and $119, respectively)
7
119
Receivable for investments sold and repaid
856
567
Income receivable
176
153
Unrealized appreciation on foreign currency forward contracts
10
9
Deferred financing costs
15
16
Prepaid expenses and other assets
5
5
Total assets
$
17,985
$
17,228
Liabilities
Payable for investments purchased
$
33
$
2
Debt (net of deferred financing costs of $42 and $38, respectively) (1)
9,835
9,142
Unrealized depreciation on foreign currency forward contracts
1
1
Stockholder distributions payable
179
176
Management fees payable
62
60
Subordinated income incentive fees
payable (2)
25
19
Administrative services expense payable
7
5
Interest payable
66
70
Other accrued expenses and liabilities
10
23
Total liabilities
10,218
9,498
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, 284,138,163 and 284,543,091 shares
issued and outstanding, respectively
0
0
Capital in excess of par value
9,649
9,658
Retained earnings (accumulated
deficit) (4)
(1,882
)
(1,928
)
Total stockholders equity
7,767
7,730
Total liabilities and stockholders equity
$
17,985
$
17,228
Net asset value per share of common stock at period end
$
27.33
$
27.17
(1)
See Note 9 for a discussion of the Companys financing arrangements.
(2)
See Note 2 and 4 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 Companys commitments and contingencies.
(4)
See Note 5 for a discussion of the sources of distributions paid by the Company.
See notes to unaudited consolidated financial statements.
1
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Statements of Operations
(in millions, except share and per share amounts)
Three Months Ended
March 31,
2022
2021
Investment income
Interest income
$
241
$
87
Paid-in-kind
interest income
18
10
Fee income
27
11
Dividend and other income
8
4
From non-controlled/affiliated investments:
Interest income
10
3
Paid-in-kind
interest income
11
6
Fee income
2
Dividend and other income
5
0
From controlled/affiliated investments:
Interest income
10
2
Paid-in-kind
interest income
14
1
Fee income
0
Dividend and other income
50
27
Total investment income
396
151
Operating expenses
Management fees
62
25
Subordinated income incentive fees (1)
40
Administrative services expenses
4
2
Accounting and administrative fees
1
1
Interest expense (2)
77
42
Other general and administrative expenses
7
3
Total operating expenses
191
73
Incentive fee waiver (1)
(15
)
Net expenses
176
73
Net investment income
220
78
Realized and unrealized gain/loss
Net realized gain (loss) on investments:
Non-controlled/unaffiliated investments
(26
)
(83
)
Non-controlled/affiliated investments
(6
)
Controlled/affiliated investments
(43
)
Net realized gain (loss) on foreign currency forward contracts
5
Net realized gain (loss) on foreign currency
1
(2
)
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/unaffiliated investments
(40
)
109
Non-controlled/affiliated investments
30
27
Controlled/affiliated investments
37
106
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts
1
1
Net change in unrealized gain (loss) on foreign currency
3
6
Total net realized and unrealized gain (loss)
$
5
$
121
Net increase (decrease) in net assets resulting from operations
$
225
$
199
Per share informationbasic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings (Losses) per
Share)
$
0.79
$
1.61
Weighted average shares outstanding
284,323,542
123,755,965
(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 Companys financing arrangements.
See notes to unaudited consolidated financial statements.
2
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Statements of Changes in Net Assets
(in millions)
Three Months Ended
March 31,
2022
2021
Operations
Net investment income (loss)
$
220
$
78
Net realized gain (loss) on investments, foreign currency forward contracts and foreign
currency
(26
)
(128
)
Net change in unrealized appreciation (depreciation) on investments and foreign currency forward
contracts (1)
28
243
Net change in unrealized gain (loss) on foreign currency
3
6
Net increase (decrease) in net assets resulting from operations
225
199
Stockholder distributions (2)
Distributions to stockholders
(179
)
(74
)
Net decrease in net assets resulting from stockholder distributions
(179
)
(74
)
Capital share transactions (3)
Repurchases of common stock
(9
)
Net increase (decrease) in net assets resulting from capital share transactions
(9
)
Total increase (decrease) in net assets
37
125
Net assets at beginning of period
7,730
3,096
Net assets at end of period
$
7,767
$
3,221
(1)
See Note 7 for a discussion of these 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 Companys capital share transactions.
See notes to unaudited consolidated financial statements.
3
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Statements of Cash Flows
(in millions)
Three Months Ended
March 31,
2022
2021
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations
$
225
$
199
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net
cash provided by (used in) operating activities:
Purchases of investments
(2,068
)
(417
)
Paid-in-kind
interest
(34
)
(15
)
Proceeds from sales and repayments of investments
1,673
877
Net realized (gain) loss on investments
32
126
Net change in unrealized (appreciation) depreciation on investments
(27
)
(242
)
Net change in unrealized (appreciation) depreciation on foreign currency forward contracts
(1
)
(1
)
Accretion of discount
(29
)
(6
)
Amortization of deferred financing costs and discount
3
3
Unrealized (gain)/loss on borrowings in foreign currency
(6
)
(6
)
(Increase) decrease in receivable for investments sold and repaid
(289
)
(90
)
(Increase) decrease in income receivable
(23
)
(Increase) decrease in deferred merger costs
(1
)
(Increase) decrease in prepaid expenses and other assets
(2
)
Increase (decrease) in payable for investments purchased
31
Increase (decrease) in management fees payable
2
Increase (decrease) in subordinated income incentive fees payable
6
Increase (decrease) in administrative services expense payable
2
1
Increase (decrease) in interest payable
(4
)
16
Increase (decrease) in other accrued expenses and liabilities
(13
)
(7
)
Net cash provided by (used in) operating activities
(520
)
435
Cash flows from financing activities
Repurchases of common stock
(9
)
Stockholder distributions
(176
)
(74
)
Borrowings under financing
arrangements (1)
1,613
245
Repayments of financing
arrangements (1)
(907
)
(648
)
Deferred financing costs paid
(9
)
Net cash provided by (used in) financing activities
512
(477
)
Total increase (decrease) in cash
(8
)
(42
)
Cash, and foreign currency at beginning of period
377
191
Cash, and foreign currency at end of period
$
369
$
149
Supplemental disclosure
Non-cash purchases of investments
$
(242
)
$
(32
)
Non-cash sales of investments
$
242
$
32
Local and excise taxes paid
$
11
$
10
(1)
See Note 9 for a discussion of the Companys financing arrangements. During the three months ended
March 31, 2022 and 2021, the Company paid $78 and $23, respectively, in interest expense on the financing arrangements.
See notes to unaudited consolidated financial statements.
4
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
Senior Secured LoansFirst Lien127.8%
3Pillar Global Inc
(i)(k)(l)
Software & Services
L+575
0.8
%
11/23/27
$
96.0
$
95.1
$
94.9
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
48Forty Solutions LLC
(v)
Commercial & Professional Services
SF+575
1.0
%
11/30/26
4.2
4.2
4.2
48Forty Solutions LLC
(f)(k)(l)(t)(v)
Commercial & Professional Services
SF+575
1.0
%
11/30/26
183.6
181.8
181.8
48Forty Solutions LLC
(x)
Commercial & Professional Services
SF+575
1.0
%
11/30/26
6.4
6.4
6.3
5 Arch Income Fund 2 LLC
(q)(r)(w)(y)(z)
Diversified Financials
9.0%
11/18/23
108.1
79.2
75.6
Accuride Corp
(aa)(l)
Capital Goods
L+525
1.0
%
11/17/23
9.0
8.2
8.5
Advanced Dermatology & Cosmetic Surgery
(m)(t)(v)
Health Care Equipment & Services
L+625
1.0
%
5/7/27
46.4
44.6
46.5
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
2.5
2.5
2.5
Advania Sverige AB
(v)(w)
Software & Services
SR+610, 0.0% PIK (3.3% Max PIK)
0.0
%
4/28/28
SEK
629.4
68.0
66.3
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
10.4
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
37.1
Affordable Care Inc
(ac)(m)(v)
Health Care Equipment & Services
L+550, 0.0% PIK (1.3% Max PIK)
0.8
%
8/2/28
$
39.3
38.9
39.0
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
0.7
0.5
0.7
Alacrity Solutions Group LLC
(v)
Insurance
L+525
0.8
%
12/22/28
48.5
47.8
47.6
Alacrity Solutions Group LLC
(x)
Insurance
L+525
0.8
%
12/22/27
10.1
10.1
9.9
Alera Group Intermediate Holdings Inc
(v)
Insurance
L+550
0.8
%
10/2/28
8.9
8.9
8.8
Alera Group Intermediate Holdings Inc
(x)
Insurance
L+550
0.8
%
10/2/28
22.9
22.9
22.6
American Vision Partners
(i)(v)
Health Care Equipment & Services
L+575
0.8
%
9/30/27
74.8
74.1
74.1
See notes to unaudited consolidated financial statements.
5
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
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
38.6
Amerivet Partners Management Inc
(v)
Health Care Equipment & Services
SF+550
0.8
%
2/25/28
96.1
95.2
94.2
Amerivet Partners Management Inc
(x)
Health Care Equipment & Services
SF+550
0.8
%
2/25/28
8.4
8.4
8.2
Amerivet Partners Management Inc
(x)
Health Care Equipment & Services
SF+550
0.8
%
2/25/28
67.3
67.3
66.0
Amtek Global Technology Pte Ltd
(ad)(v)(w)(y)(z)
Automobiles & Components
E+500 PIK (E+500 Max PIK)
0.0
%
4/4/24
57.9
68.7
30.0
Arcfield Acquisition Corp
(i)(v)
Capital Goods
L+575
0.8%
3/10/28
$
40.6
40.2
40.2
Arcfield Acquisition Corp
(x)
Capital Goods
L+575
0.8%
3/10/27
7.1
7.1
7.1
Arcos LLC/VA
(m)
Software & Services
L+575
1.0%
3/31/28
12.4
12.2
12.2
Arcos LLC/VA
(x)
Software & Services
L+575
1.0%
4/20/27
4.5
4.5
4.4
Ardonagh Group Ltd
(v)(w)
Insurance
SA+700
0.8%
7/14/26
£
0.8
1.0
1.0
Ardonagh Group Ltd
(w)(x)
Insurance
L+575
1.0%
7/14/26
16.7
22.8
22.0
Arrotex Australia Group Pty Ltd
(v)(w)
Pharmaceuticals, Biotechnology & Life Sciences
B+525
1.0%
7/10/24
A$
42.60
30.6
31.9
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
athenahealth Inc
(ac)(aa)(v)
Health Care Equipment & Services
SF+350
0.5%
2/15/29
6.9
6.8
6.8
athenahealth Inc
(ac)(aa)(x)
Health Care Equipment & Services
SF+350
0.5%
2/15/29
1.2
1.2
1.2
ATX Networks Corp
(ad)(s)(v)(w)
Capital Goods
L+750 PIK (L+750 Max PIK)
1.0%
9/1/26
46.6
46.6
46.6
AxiomSL Ltd
(f)(m)(t)(v)
Software & Services
L+600
1.0%
12/3/27
35.0
34.3
34.3
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
92.1
88.0
91.7
Barbri Inc
(k)(l)
Consumer Services
L+575
0.8%
4/30/28
35.0
34.7
34.9
Barbri Inc
(x)
Consumer Services
L+575
0.8%
4/30/28
14.8
14.8
14.7
Belk Inc
(aa)(ac)(v)
Retailing
L+750
1.0%
7/31/25
21.9
21.8
21.8
Belk Inc
(aa)(ac)(v)
Retailing
5.0%, 8.0% PIK (8.0% Max PIK)
7/31/25
67.8
41.2
44.3
BGB Group LLC
(f)(i)(k)(l)(m)(t)
Media & Entertainment
L+575
1.0%
8/16/27
111.9
110.9
110.5
BGB Group LLC
(x)
Media & Entertainment
L+575
1.0%
8/16/27
19.9
19.9
19.7
See notes to unaudited consolidated financial statements.
6
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
Bowery Farming Inc
(v)
Food, Beverage & Tobacco
L+1,000
1.0%
4/30/26
$
75.0
$
74.3
$
69.7
Caldic BV
(aa)(ab)(v)(w)
Retailing
SF+400
0.5%
2/4/29
1.4
1.4
1.4
Caldic BV
(aa)(v)(w)
Retailing
E+400
0.0%
2/4/29
0.8
0.9
0.9
Cimarron Energy Inc
(v)(y)(z)
Energy
L+900
1.0%
12/31/24
$
7.5
5.4
4.3
Clarience Technologies LLC
(v)
Capital Goods
L+625
1.0%
12/13/24
2.2
2.0
2.2
Clarience Technologies LLC
(f)(i)(k)(m)(s)(v)
Capital Goods
L+625
1.0%
12/14/26
267.3
257.0
269.9
Clarience Technologies LLC
(v)
Capital Goods
L+625
1.0%
12/31/26
18.1
17.6
18.2
Clarience Technologies LLC
(x)
Capital Goods
L+625
1.0%
12/13/24
23.3
23.3
23.3
Clarience Technologies LLC
(x)
Capital Goods
L+625
1.0%
12/31/26
10.8
10.8
10.9
Community Brands Inc
(v)
Software & Services
SF+575
0.8%
2/23/28
33.0
32.3
32.3
Community Brands Inc
(x)
Software & Services
SF+575
0.8%
2/23/28
3.9
3.8
3.8
Community Brands Inc
(x)
Software & Services
SF+575
0.8%
2/23/28
1.9
1.9
1.9
Constellis Holdings LLC
(ac)(v)
Capital Goods
L+750
1.0%
3/27/24
15.0
14.1
15.0
Corsearch Intermediate Inc
(m)(v)
Software & Services
L+550
1.0%
4/19/28
30.1
28.4
30.0
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
188.3
182.3
188.5
CSafe Global
(v)
Capital Goods
L+625
0.8%
12/23/27
£
27.4
36.2
36.0
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
34.7
Dental Care Alliance Inc
(f)(k)(m)(t)(v)
Health Care Equipment & Services
SF+600
0.8%
4/3/28
125.9
121.8
125.2
Dental Care Alliance Inc
(x)
Health Care Equipment & Services
SF+600
0.8%
4/3/28
12.3
12.3
12.2
Element Materials Technology Group US Holdings Inc
(aa)(v)(w)
Commercial & Professional Services
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
65.1
63.8
63.6
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
1.0%
9/30/24
0.4
0.4
0.4
Entertainment Benefits Group LLC
(f)(k)(l)(m)(v)
Media & Entertainment
L+575
1.0%
9/30/25
64.1
59.3
64.1
Entertainment Benefits Group LLC
(x)
Media & Entertainment
L+575
1.0%
9/30/24
10.2
9.6
10.2
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
Fairway Group Holdings Corp
(ac)(v)(y)(z)
Food & Staples Retailing
10.0% PIK (10.0% Max PIK)
11/28/23
7.6
See notes to unaudited consolidated financial statements.
7
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
Follett Software Co
(f)(k)(l)(t)
Software & Services
L+575
0.8%
8/31/28
$
74.2
$
73.5
$
73.6
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+550
1.0%
2/12/27
97.1
93.2
98.0
Foundation Consumer Brands LLC
(x)
Pharmaceuticals, Biotechnology & Life Sciences
L+550
1.0%
2/12/27
6.6
6.6
6.6
Foundation Risk Partners Corp
(v)
Insurance
L+575
0.8%
10/29/28
77.9
76.8
76.8
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
2.6
2.6
2.5
Frontline Technologies Group LLC
(i)(m)(v)
Software & Services
L+525
1.0%
9/18/23
23.1
23.0
23.1
Frontline Technologies Group LLC
(s)(v)
Software & Services
L+525
1.0%
9/18/23
38.0
36.1
38.1
Galaxy Universal LLC
(v)
Consumer Durables & Apparel
S+575
1.0%
11/12/26
88.7
88.7
89.6
Galaxy Universal LLC
(v)
Consumer Durables & Apparel
L+500
1.0%
11/12/26
26.0
25.7
26.0
Galway Partners Holdings LLC
(k)(l)(t)(v)
Insurance
L+525, 0.0% PIK (1.3% Max PIK)
0.8%
9/29/28
112.9
110.7
110.3
Galway Partners Holdings LLC
(x)
Insurance
L+525, 0.0% PIK (1.3% Max PIK)
0.8%
9/30/27
12.0
11.7
11.7
Galway Partners Holdings LLC
(x)
Insurance
L+525, 0.0% PIK (1.3% Max PIK)
0.8%
9/29/28
20.4
20.4
19.9
General Datatech LP
(f)(k)(l)(m)(t)(v)
Software & Services
L+625
1.0%
6/18/27
168.0
166.5
163.0
Gigamon Inc
(v)
Software & Services
SF+575
0.8%
3/12/29
175.5
173.7
173.7
Gigamon Inc
(x)
Software & Services
SF+575
0.8%
3/13/28
9.3
9.3
9.3
Greystone Equity Member Corp
(v)(w)
Diversified Financials
L+725
3.8%
4/1/26
194.8
183.2
187.5
Heniff Transportation Systems LLC
(v)
Transportation
L+575
1.0%
12/3/24
6.2
6.0
5.9
Heniff Transportation Systems LLC
(f)(i)(k)(l)(m)(v)
Transportation
L+575
1.0%
12/3/26
137.3
130.4
129.0
Heniff Transportation Systems LLC
(v)
Transportation
L+625
1.0%
12/3/26
19.3
18.6
18.5
Heniff Transportation Systems LLC
(x)
Transportation
L+575
1.0%
12/3/24
11.6
11.6
10.9
Hibu Inc
(f)(k)(l)(m)(t)(v)
Commercial & Professional Services
L+625
1.0%
5/4/27
100.9
96.1
102.9
Higginbotham Insurance Agency Inc
(v)
Insurance
L+550
0.8%
11/25/26
8.3
7.8
8.5
Higginbotham Insurance Agency Inc
(x)
Insurance
L+550
0.8%
11/25/26
9.1
9.1
9.3
HM Dunn Co Inc
(ad)(v)
Capital Goods
L+600 PIK (L+600 Max PIK)
1.0%
6/30/26
34.0
34.0
34.0
See notes to unaudited consolidated financial statements.
8
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
HM Dunn Co Inc
(ad)(x)
Capital Goods
L+600 PIK (L+600 Max PIK)
1.0%
6/30/26
$
2.0
$
2.0
$
2.0
Individual FoodService
(v)
Capital Goods
L+625
1.0%
11/22/24
0.8
0.8
0.8
Individual FoodService
(m)(s)(v)
Capital Goods
L+625
1.0%
11/22/25
98.4
94.3
99.0
Individual FoodService
(x)
Capital Goods
L+625
1.0%
11/22/24
3.9
3.9
3.9
Individual FoodService
(x)
Capital Goods
L+625
1.0%
11/22/25
4.7
4.7
4.8
Industria Chimica Emiliana Srl
(v)(w)
Pharmaceuticals, Biotechnology & Life Sciences
E+725
0.0%
9/27/26
88.8
101.5
97.8
Industry City TI Lessor LP
(s)(v)
Consumer Services
10.8%, 1.0% PIK (1.0% Max PIK)
6/30/26
$
28.9
28.9
30.9
Insight Global LLC
(v)
Commercial & Professional Services
L+600
0.8%
9/22/27
4.2
4.2
4.1
Insight Global LLC
(i)(v)
Commercial & Professional Services
L+600
0.8%
9/22/28
204.8
202.9
201.1
Insight Global LLC
(x)
Commercial & Professional Services
L+600
0.8%
9/22/27
16.8
16.8
16.5
Insight Global LLC
(x)
Commercial & Professional Services
L+600
0.8%
9/22/28
26.8
26.8
26.4
Integrity Marketing Group LLC
(x)
Insurance
L+550
0.8%
8/27/25
145.3
145.3
144.0
J S Held LLC
(f)(i)(m)(s)(v)
Insurance
L+550
1.0%
7/1/25
103.8
101.2
103.8
J S Held LLC
(v)
Insurance
L+550
1.0%
7/1/25
1.1
0.9
1.1
J S Held LLC
(v)
Insurance
L+550
1.0%
7/1/25
22.4
22.4
22.6
J S Held LLC
(f)(v)
Insurance
SF+550
1.0%
7/1/25
20.1
20.1
20.1
J S Held LLC
(x)
Insurance
L+550
1.0%
7/1/25
13.0
13.0
13.0
J S Held LLC
(x)
Insurance
SF+550
1.0%
7/1/25
24.2
24.2
24.2
Jarrow Formulas Inc
(f)(i)(k)(l)(m)(s)(t)(v)
Household & Personal Products
L+625
1.0%
11/30/26
185.4
176.4
189.1
Karman Space Inc
(m)(v)
Capital Goods
L+700
1.0%
12/21/25
91.8
88.4
93.6
Karman Space Inc
(v)
Capital Goods
L+700
1.0%
12/21/25
4.4
4.2
4.4
Karman Space Inc
(x)
Capital Goods
L+700
1.0%
12/21/25
1.1
1.1
1.1
Kellermeyer Bergensons Services LLC
(f)(i)(k)(l)(m)(s)(t)(v)
Commercial & Professional Services
L+600
1.0%
11/7/26
371.8
360.2
369.1
Lakefield Veterinary Group
(f)(i)(v)
Health Care Equipment & Services
L+550
0.8%
11/23/28
99.4
98.6
97.4
Lakefield Veterinary Group
(x)
Health Care Equipment & Services
L+550
0.8%
11/23/28
44.9
44.9
44.0
Lakeview Farms Inc
(l)(m)(v)
Food, Beverage & Tobacco
L+625
1.0%
6/10/27
76.9
75.1
75.8
Lakeview Farms Inc
(v)
Food, Beverage & Tobacco
L+625
1.0%
6/10/27
4.2
4.2
4.1
Lakeview Farms Inc
(x)
Food, Beverage & Tobacco
L+625
1.0%
6/10/27
10.8
10.8
10.7
Lakeview Farms Inc
(x)
Food, Beverage & Tobacco
L+625
1.0%
6/10/27
2.6
2.6
2.5
Lexitas Inc
(i)(k)(l)(m)(v)
Commercial & Professional Services
L+600
1.0%
11/14/25
111.5
108.2
112.6
See notes to unaudited consolidated financial statements.
9
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
Lexitas Inc
(x)
Commercial & Professional Services
L+600
1.0%
11/14/25
$
5.4
$
5.4
$
5.4
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
68.0
63.4
69.1
Lipari Foods LLC
(f)(m)(s)(v)
Food & Staples Retailing
L+575
1.0%
1/6/25
272.0
261.9
272.0
Lloyds 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
19.4
Matchesfashion Ltd
(v)(w)
Consumer Durables & Apparel
L+463, 3.0% PIK (3.0% Max PIK)
0.0%
10/11/24
$
12.9
12.5
8.1
MB2 Dental Solutions LLC
(k)(l)(m)(t)(v)
Health Care Equipment & Services
L+600
1.0%
1/29/27
246.1
235.9
246.3
MB2 Dental Solutions LLC
(x)
Health Care Equipment & Services
L+600
1.0%
1/29/27
41.0
41.0
41.1
Medallia Inc
(v)
Software & Services
L+675 PIK (L+675 Max PIK)
0.8%
10/29/28
168.5
166.9
166.8
Med-Metrix
(v)
Software & Services
L+600
1.0%
9/15/27
56.5
56.1
56.4
Med-Metrix
(x)
Software & Services
L+600
1.0%
9/15/27
25.0
25.0
25.0
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
180.1
171.3
173.1
Monitronics International Inc
(aa)(f)(v)
Commercial & Professional Services
L+750
1.3%
3/29/24
18.8
17.3
15.5
Monitronics International Inc
(v)
Commercial & Professional Services
L+600
1.5%
7/3/24
60.8
58.5
58.0
Monitronics International Inc
(x)
Commercial & Professional Services
L+600
1.5%
7/3/24
9.2
9.2
8.7
Motion Recruitment Partners LLC
(v)
Commercial & Professional Services
L+650
1.0%
12/19/25
4.8
4.5
4.8
Motion Recruitment Partners LLC
(m)(t)(v)
Commercial & Professional Services
L+650
1.0%
12/22/25
55.1
51.0
55.2
Motion Recruitment Partners LLC
(f)(i)(v)
Commercial & Professional Services
SF+650
1.0%
12/22/25
64.5
64.5
64.7
Motion Recruitment Partners LLC
(x)
Commercial & Professional Services
L+650
1.0%
12/19/25
59.6
59.6
59.7
NBG Home
(v)
Consumer Durables & Apparel
L+550
1.0%
4/26/24
67.4
67.2
50.8
NCI Inc
(v)
Software & Services
L+750, 0.0% PIK (2.5% Max PIK)
1.0%
8/15/24
78.3
77.3
72.5
Net Documents
(v)
Software & Services
L+650
1.0%
6/30/27
24.6
24.4
24.1
Net Documents
(v)
Software & Services
L+675
1.0%
6/30/27
0.7
0.7
0.7
Net Documents
(x)
Software & Services
L+675
1.0%
6/30/27
2.3
2.3
2.2
Net Documents
(x)
Software & Services
L+675
1.0%
6/30/27
7.4
7.3
7.2
New Era Technology Inc
(i)(l)(m)(t)(v)
Software & Services
L+625
1.0%
10/31/26
86.7
83.0
86.8
New Era Technology Inc
(v)
Software & Services
L+625
1.0%
10/31/26
2.7
2.7
2.7
New Era Technology Inc
(x)
Software & Services
L+625
1.0%
10/31/26
9.3
9.3
9.4
See notes to unaudited consolidated financial statements.
10
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
New Era Technology Inc
(x)
Software & Services
L+625
1.0%
10/31/26
$
1.9
$
1.9
$
1.9
Novotech Pty Ltd
(w)(x)
Health Care Equipment & Services
SF+575
0.5%
1/13/28
5.7
5.6
5.6
Omnimax International Inc
(f)(i)(k)(l)(m)(v)
Capital Goods
L+725
1.0%
10/8/26
197.9
189.4
195.0
One Call Care Management Inc
(aa)(ad)(v)
Health Care Equipment & Services
L+550
0.8%
4/22/27
5.0
4.7
4.7
Oxford Global Resources LLC
(f)(k)(l)(m)(t)
Commercial & Professional Services
L+600
1.0%
8/17/27
88.2
87.4
89.1
Oxford Global Resources LLC
(v)
Commercial & Professional Services
L+600
1.0%
8/17/27
5.8
5.8
5.8
Oxford Global Resources LLC
(x)
Commercial & Professional Services
L+600
1.0%
8/17/27
15.3
15.3
15.4
Oxford Global Resources LLC
(x)
Commercial & Professional Services
L+600
1.0%
8/17/27
1.8
1.8
1.8
P2 Energy Solutions Inc.
(v)
Software & Services
L+675
1.0%
1/31/25
3.7
3.5
3.5
P2 Energy Solutions Inc.
(i)(k)(m)(s)(t)(v)
Software & Services
L+675
1.0%
2/2/26
248.4
232.8
231.3
P2 Energy Solutions Inc.
(x)
Software & Services
L+675
1.0%
1/31/25
11.4
11.4
10.6
Parata Systems
(f)(m)(v)
Health Care Equipment & Services
L+575
1.0%
6/30/27
73.7
73.2
73.7
Parata Systems
(x)
Health Care Equipment & Services
L+575
1.0%
6/30/27
22.0
22.0
22.0
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
131.1
129.7
129.8
PartsSource Inc
(v)
Health Care Equipment & Services
L+575
0.8%
8/23/28
65.6
64.9
64.2
PartsSource Inc
(x)
Health Care Equipment & Services
L+575
0.8%
8/21/26
4.3
4.2
4.2
PartsSource Inc
(x)
Health Care Equipment & Services
L+575
0.8%
8/23/28
22.9
22.6
22.4
Peraton Corp
(aa)(v)
Capital Goods
L+375
0.8%
2/1/28
8.8
8.5
8.8
Performance Health Holdings Inc
(f)(i)(v)
Health Care Equipment & Services
L+600
1.0%
7/12/27
108.3
107.3
107.3
Petroplex Acidizing Inc
(ac)(v)(y)(z)
Energy
L+825, 1.8% PIK (1.8% Max PIK)
1.0%
6/30/23
27.3
21.9
12.2
Polyconcept North America Inc
(aa)(v)
Household & Personal Products
L+450 PIK (L+450 Max PIK)
1.0%
8/16/23
23.1
22.9
23.0
Premium Credit Ltd
(v)(w)
Diversified Financials
SA+650
0.0%
1/16/26
£
55.9
72.8
73.5
Production Resource Group LLC
(ad)(v)
Media & Entertainment
L+300, 5.5% PIK (5.5% Max PIK)
0.3%
8/21/24
$
136.8
129.0
136.8
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+500, 3.1% PIK (3.1% Max PIK)
1.0%
8/21/24
91.2
87.2
91.2
Production Resource Group LLC
(ad)(x)
Media & Entertainment
L+500, 3.1% PIK (3.1% Max PIK)
1.0%
8/21/24
4.0
4.0
4.0
See notes to unaudited consolidated financial statements.
11
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
Propulsion Acquisition LLC
(f)(l)(s)(t)(v)
Capital Goods
L+700
1.0%
7/13/24
$
60.4
$
57.0
$
61.0
PSKW LLC
(i)(l)(s)(t)(v)
Health Care Equipment & Services
L+625
1.0%
3/9/26
294.0
283.4
294.0
Pure Fishing Inc
(aa)(v)
Consumer Durables & Apparel
L+450
0.0%
12/22/25
34.0
33.3
32.4
Qdoba Restaurant Corp
(aa)(m)(v)
Consumer Services
L+700
1.0%
3/21/25
10.9
10.8
10.6
Reliant Rehab Hospital Cincinnati LLC
(f)(i)(l)(m)(s)(v)
Health Care Equipment & Services
L+625
0.0%
2/28/26
107.8
101.9
104.3
Revere Superior Holdings Inc
(m)(v)
Software & Services
L+575
1.0%
9/30/26
29.9
29.3
30.2
Revere Superior Holdings Inc
(x)
Software & Services
L+575
1.0%
9/30/26
3.8
3.8
3.8
Revere Superior Holdings Inc
(x)
Software & Services
L+575
1.0%
9/30/26
3.2
3.2
3.2
Rise Baking Company
(v)
Food, Beverage & Tobacco
L+625
1.0%
8/13/27
3.3
3.2
3.1
Rise Baking Company
(l)(m)
Food, Beverage & Tobacco
L+625
1.0%
8/13/27
28.8
28.1
27.2
Rise Baking Company
(x)
Food, Beverage & Tobacco
L+625
1.0%
8/13/27
2.0
2.0
1.9
RSC Insurance Brokerage Inc
(f)(i)(k)(l)(m)(s)(v)
Insurance
L+550
0.8%
10/30/26
229.4
222.9
231.7
RSC Insurance Brokerage Inc
(x)
Insurance
L+550
0.8%
10/30/26
12.5
12.4
12.6
RSC Insurance Brokerage Inc
(x)
Insurance
L+550
0.8%
10/30/26
7.7
7.6
7.7
Safe-Guard Products International LLC
(f)
Diversified Financials
L+500
0.5%
1/27/27
0.1
0.1
0.1
SAMBA Safety Inc
(v)
Software & Services
L+575
1.0%
9/1/27
0.6
0.6
0.6
SAMBA Safety Inc
(x)
Software & Services
L+575
1.0%
9/1/27
1.8
1.8
1.8
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
1.9
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
16.1
Sequa Corp
(v)
Capital Goods
L+900, 0.0% PIK (9.5% Max PIK)
1.0%
7/31/25
16.4
16.0
17.0
Sequel Youth & Family Services LLC
(v)(y)(z)
Health Care Equipment & Services
3.0%
2/28/25
50.0
50.0
50.0
Sequel Youth & Family Services LLC
(v)(y)(z)
Health Care Equipment & Services
3.0%
2/28/25
70.0
10.5
10.5
Sequel Youth & Family Services LLC
(v)
Health Care Equipment & Services
SF+550
1.0%
2/28/27
26.0
26.0
26.0
Sequel Youth & Family Services LLC
(v)
Health Care Equipment & Services
12.0% PIK (12.0% Max PIK)
2/28/27
21.0
20.8
20.8
SitusAMC Holdings Corp
(k)(l)(v)
Real Estate
L+575
0.8%
12/22/27
76.6
75.9
75.5
Sorenson Communications LLC
(aa)(ac)(f)(k)(t)(v)
Telecommunication Services
L+550
0.8%
3/17/26
58.5
55.7
58.5
Source Code LLC
(k)(l)(t)
Software & Services
L+650
1.0%
6/30/27
53.2
52.2
52.4
See notes to unaudited consolidated financial statements.
12
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal Amount (c)
Amortized
Cost
Fair
Value (d)
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
68.7
65.5
69.4
Spins LLC
(x)
Software & Services
L+550
1.0%
1/20/27
16.5
16.5
16.6
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$
34.5
26.9
28.4
Summit Interconnect Inc
(f)(k)(l)(t)(v)
Capital Goods
L+600
1.0%
9/22/28
$
98.0
97.1
96.2
Summit Interconnect Inc
(x)
Capital Goods
L+600
1.0%
9/22/28
48.7
48.7
47.8
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
5.8
5.3
Sweeping Corp of America Inc
(m)(v)
Commercial & Professional Services
L+575
1.0%
11/30/26
69.7
67.4
70.4
Sweeping Corp of America Inc
(x)
Commercial & Professional Services
L+575
1.0%
11/30/26
3.1
3.1
3.1
Sweeping Corp of America Inc
(x)
Commercial & Professional Services
L+575
1.0%
11/30/26
5.7
5.6
5.7
Tangoe LLC
(m)(s)(v)
Software & Services
L+650
1.0%
11/28/25
189.9
172.2
147.2
ThermaSys Corp
(ac)(v)(y)(z)
Capital Goods
L+1,100 PIK (L+1,100 Max PIK)
1.0%
1/1/24
8.8
8.3
3.7
ThreeSixty Group
(m)(v)
Retailing
L+500, 2.5% PIK (2.5% Max PIK)
1.5%
3/1/23
48.5
48.4
48.0
ThreeSixty Group
(m)(v)
Retailing
L+500, 2.5% PIK (2.5% Max PIK)
1.5%
3/1/23
48.3
48.1
47.8
Time Manufacturing Co
(v)
Capital Goods
L+650
0.8%
12/1/27
45.7
44.7
44.4
Time Manufacturing Co
(v)
Capital Goods
L+650
0.8%
12/1/27
7.4
7.4
7.2
Time Manufacturing Co
(x)
Capital Goods
L+650
0.8%
12/1/27
13.7
13.7
13.4
Time Manufacturing Co
(x)
Capital Goods
L+650
0.8%
12/1/27
14.7
14.7
14.3
Transaction Services Group Ltd
(v)(w)
Software & Services
B+650
0.0%
10/15/26
A$
80.3
55.9
58.6
Transaction Services Group Ltd
(v)(w)
Software & Services
L+650
0.0%
10/15/26
$
126.2
122.4
122.9
Transaction Services Group Ltd
(v)(w)
Software & Services
L+650
0.0%
10/15/26
£
13.9
17.7
17.8
Ultra Electronics Holdings PLC
(aa)(ab)(v)(w)
Capital Goods
L+375
0.5%
11/17/28
$
1.8
1.8
1.8
Ultra Electronics Holdings PLC
(aa)(ab)(v)(w)
Capital Goods
E+375
0.0%
11/17/28
1.4
1.6
1.5
Warren Resources Inc
(ad)(v)
Energy
L+900, 1.0% PIK (1.0% Max PIK)
1.0%
5/22/24
$
18.5
17.3
18.5
Wealth Enhancement Group LLC
(v)(w)
Diversified Financials
L+625
1.0%
10/4/27
17.6
17.5
17.6
Wealth Enhancement Group LLC
(v)(w)
Diversified Financials
L+625
1.0%
10/4/27
0.4
0.4
0.4
Wealth Enhancement Group LLC
(w)(x)
Diversified Financials
L+625
1.0%
10/4/27
10.8
10.8
10.8
See notes to unaudited consolidated financial statements.
13
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal Amount (c)
Amortized
Cost
Fair
Value (d)
Wealth Enhancement Group LLC
(w)(x)
Diversified Financials
L+625
1.0%
10/4/27
$
1.3
$
1.3
$
1.3
Woolpert Inc
(f)(k)(l)(m)(t)(v)
Capital Goods
L+600
1.0%
4/5/28
160.7
154.2
162.4
Woolpert Inc
(x)
Capital Goods
L+600
1.0%
4/5/28
3.7
3.7
3.7
Worldwise Inc
(v)
Household & Personal Products
SF+625
1.0%
3/29/28
85.3
84.5
84.5
Worldwise Inc
(x)
Household & Personal Products
SF+625
1.0%
3/29/28
42.7
42.2
42.2
Worldwise Inc
(x)
Household & Personal Products
SF+625
1.0%
3/29/28
14.2
14.2
14.2
Total Senior Secured LoansFirst Lien
11,280.2
11,341.7
Unfunded Loan Commitments
(1,418.6
)
(1,418.6
)
Net Senior Secured LoansFirst Lien
9,861.6
9,923.1
Senior Secured LoansSecond Lien18.2%
Advanced Lighting Technologies Inc
(v)(y)(z)
Materials
L+600
1.0%
3/16/27
11.7
10.5
5.6
Ammeraal Beltech Holding BV
(f)(s)(v)(w)
Capital Goods
L+775
0.0%
9/12/26
44.9
41.0
43.8
Amtek Global Technology Pte Ltd
(ad)(v)(w)(y)(z)
Automobiles & Components
E+500 PIK (E+500 Max PIK)
0.0%
4/4/24
35.2
39.0
Belk Inc
(ac)(v)(y)(z)
Retailing
10.0% PIK (10.0% Max PIK)
7/31/25
$
26.2
4.2
5.3
Byrider Finance LLC
(u)(v)
Automobiles & Components
L+1,000, 0.5% PIK (0.5% Max PIK)
1.3%
6/21/22
54.3
53.6
54.5
Caldic BV
(v)(w)
Retailing
SF+725
0.5%
12/30/29
40.0
38.9
38.9
Constellis Holdings LLC
(ac)(v)
Capital Goods
L+1,100, 0.0% PIK (5.0% Max PIK)
1.0%
3/27/25
13.5
12.6
9.5
Cubic Corp
(v)
Software & Services
L+763
0.8%
5/25/29
54.8
51.9
55.4
Ellucian Inc
(v)
Software & Services
L+800
1.0%
10/9/28
179.2
170.2
183.2
Fairway Group Holdings Corp
(ac)(v)(y)(z)
Food & Staples Retailing
11.0% PIK (11.0% Max PIK)
2/24/24
6.9
Misys Ltd
(aa)(v)(w)
Software & Services
L+725
1.0%
6/13/25
16.3
15.4
16.1
NBG Home
(v)(y)(z)
Consumer Durables & Apparel
L+1,275 PIK (L+1,275 Max PIK)
1.0%
9/30/24
32.4
28.2
2.2
OEConnection LLC
(f)(v)
Software & Services
L+700
0.5%
9/25/27
76.1
75.7
74.3
Peraton Corp
(s)(v)
Capital Goods
L+800
1.0%
2/1/29
175.0
165.4
178.4
See notes to unaudited consolidated financial statements.
14
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c)
Amortized
Cost
Fair
Value (d)
Peraton Corp
(v)
Capital Goods
L+775
0.8%
2/1/29
$
151.9
$
145.6
$
152.9
Petrochoice Holdings Inc
(v)
Capital Goods
L+875
1.0%
8/21/23
65.0
64.5
48.1
Polyconcept North America Inc
(v)
Household & Personal Products
11.0% PIK (11.0% Max PIK)
2/16/24
10.3
10.2
10.3
Pure Fishing Inc
(f)(m)(v)
Consumer Durables & Apparel
L+838
1.0%
12/21/26
100.0
94.7
94.8
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
5.5
Solera LLC
(aa)(v)
Software & Services
L+800
1.0%
6/4/29
312.4
296.2
314.9
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
14.7
13.5
2.5
Valeo Foods Group Ltd
(w)(x)
Food, Beverage & Tobacco
E+750
0.0%
10/1/29
6.2
7.2
6.9
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
121.1
113.5
Total Senior Secured LoansSecond Lien
1,471.4
1,423.2
Unfunded Loan Commitments
(7.1
)
(7.1
)
Net Senior Secured LoansSecond Lien
1,464.3
1,416.1
Other Senior Secured Debt1.5%
Angelica Corp
(h)(y)(z)
Health Care Equipment & Services
10.0% PIK (10.0% Max PIK)
12/30/22
$
53.4
42.2
5.9
JW Aluminum Co
(aa)(ad)(s)(v)
Materials
10.3%
6/1/26
76.5
75.6
80.1
One Call Care Management Inc
(ad)(v)
Health Care Equipment & Services
8.5% PIK (8.5% Max PIK)
11/1/28
23.5
21.7
21.2
TruckPro LLC
(aa)(v)
Capital Goods
11.0%
10/15/24
9.2
9.2
9.7
Total Other Senior Secured Debt
148.7
116.9
Subordinated Debt1.0%
Ardonagh Group Ltd
(aa)(v)(w)
Insurance
12.8% PIK (12.8% Max PIK)
1/15/27
0.9
1.0
1.0
athenahealth Inc
(ac)(aa)(v)
Health Care Equipment & Services
6.5%
2/15/30
5.5
5.5
5.4
See notes to unaudited consolidated financial statements.
15
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal Amount (c)
Amortized
Cost
Fair
Value (d)
ATX Networks Corp
(ad)(s)(v)(w)(y)(z)
Capital Goods
10.0% PIK (10.0% Max PIK)
9/1/28
$
19.3
$
4.8
$
12.8
ClubCorp Club Operations Inc
(aa)(v)
Consumer Services
8.5%
9/15/25
37.3
35.5
35.1
Encora Digital Inc
(v)
Software & Services
9.8% PIK (9.8% Max PIK)
12/13/29
21.6
21.0
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
Total Subordinated Debt
194.1
75.2
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c) /
Shares
Amortized
Cost
Fair
Value (d)
Asset Based Finance28.0%
801 5th Ave, Seattle, Private Equity
(ad)(v)(w)(y)
Real Estate
8,554,983
$
14.1
$
26.1
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
55.2
57.2
Abacus JV, Private Equity
(v)(w)
Insurance
50,032,107
49.0
56.6
Accelerator Investments Aggregator LP, Private Equity
(v)(w)(y)
Diversified Financials
5,397,365
6.3
5.1
Altavair AirFinance, Private Equity
(v)(w)
Capital Goods
106,337,301
107.2
130.5
Australis Maritime, Common Stock
(v)(w)
Transportation
47,142,727
45.4
47.2
Avenue One PropCo, Private Equity
(ad)(v)(w)(y)
Real Estate
12,639,630
12.6
12.6
Avida Holding AB, Common Stock
(ad)(v)(w)(y)
Diversified Financials
405,023,756
44.6
48.4
Byrider Finance LLC, Structured Mezzanine
(v)
Automobiles & Components
L+1,050
0.3%
6/3/28
$
9.4
9.4
9.4
Byrider Finance LLC, Structured Mezzanine
(x)
Automobiles & Components
L+1,050
0.3%
6/3/28
$
13.6
13.6
13.6
Callodine Commercial Finance LLC, 2L Term Loan A
(v)
Diversified Financials
L+900
1.0%
11/3/25
$
125.0
118.3
125.7
See notes to unaudited consolidated financial statements.
16
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c) /
Shares
Amortized
Cost
Fair
Value (d)
Callodine Commercial Finance LLC, 2L Term Loan B
(x)
Diversified Financials
L+900
1.0%
11/3/25
$
40.3
$
40.3
$
40.6
Capital Automotive LP, Private Equity
(v)(w)
Real Estate
21,640,936
23.7
28.9
Capital Automotive LP, Structured Mezzanine
(v)(w)
Real Estate
11.0%
12/22/28
$
42.7
41.8
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
4.5% PIK (9.0% Max PIK)
10/1/28
$
423.4
309.4
259.8
Global Jet Capital LLC, Structured Mezzanine
(j)(u)(v)(w)
Commercial & Professional Services
15.0% PIK (15.0% Max PIK)
12/4/25
$
43.2
30.8
43.2
Global Jet Capital LLC, Structured Mezzanine
(j)(u)(v)(w)
Commercial & Professional Services
15.0% PIK (15.0% Max PIK)
12/9/25
$
31.6
21.8
31.6
Global Jet Capital LLC, Structured Mezzanine
(j)(u)(v)(w)
Commercial & Professional Services
15.0% PIK (15.0% Max PIK)
1/29/26
$
3.7
2.5
3.7
Global Lending Services LLC, Private Equity
(v)(w)
Diversified Financials
11,860,951
13.7
14.5
Global Lending Services LLC, Private Equity
(v)(w)(y)
Diversified Financials
7,242,670
7.2
9.5
Home Partners JV 2, Private Equity
(ac)(v)(w)(y)
Real Estate
2,398,355
2.3
2.6
Home Partners JV 2, Private Equity
(ac)(v)(w)(y)
Real Estate
90,490
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
$
5.3
5.2
5.3
Home Partners JV 2, Structured Mezzanine
(ac)(w)(x)
Real Estate
11.0% PIK (11.0% Max PIK)
3/20/30
$
11.9
11.9
11.9
Home Partners JV, Common Stock
(ac)(v)(w)
Real Estate
30,500,647
45.5
86.5
Home Partners JV, Private Equity
(ac)(v)(w)
Real Estate
3,793,000
5.0
10.2
Home Partners JV, Structured Mezzanine
(ac)(v)(w)
Real Estate
11.0% PIK (11.0% Max PIK)
3/25/29
$
90.3
85.6
90.3
Jet Edge International LLC, Preferred Stock
(ac)(p)
Transportation
8.0%, 0.0% PIK (8.0% Max PIK)
$
20.9
20.9
30.3
See notes to unaudited consolidated financial statements.
17
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c) /
Shares
Amortized
Cost
Fair
Value (d)
Jet Edge International LLC, Term Loan
(ac)(v)
Transportation
10.0%, 2.0% PIK (2.0% Max PIK)
4/2/26
$
148.6
$
147.9
$
153.0
Jet Edge International LLC, Term Loan
(ac)(x)
Transportation
10.0%, 2.0% PIK (2.0% Max PIK)
4/2/26
$
0.7
0.7
0.7
Jet Edge International LLC, Warrant
(ac)(h)(y)
Transportation
3,963
16.5
Kilter Finance, Preferred Stock
(ad)(v)(w)
Insurance
6.0%, 6.0% PIK (6.0% Max PIK)
$
68.6
67.2
68.6
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
19.6
KKR Rocket Loans Aggregator LLC, Partnership Interest
(ad)(v)(w)
Diversified Financials
1,824,177
1.8
1.9
KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest
(v)(w)(y)
Capital Goods
23,664,954
23.0
20.0
Lenovo Group Ltd, Structured Mezzanine
(v)(w)
Technology Hardware & Equipment
7.8%
9/22/24
7.8
9.2
8.7
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
6.5
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
2.8
Lenovo Group Ltd, Structured Mezzanine
(v)(w)
Technology Hardware & Equipment
11.8%
9/22/24
$
9.1
9.1
9.1
Luxembourg Life FundAbsolute Return Fund II, Structured Mezzanine
(v)(w)
Insurance
SF+750
0.5%
2/10/27
$
26.7
26.7
26.4
Music IP, Private Equity
(v)(w)
Media & Entertainment
60,928,593
60.9
71.2
My Community Homes SFR PropCo 2, Private Equity
(ad)(v)(w)(y)
Real Estate
105,000,000
105.0
105.0
See notes to unaudited consolidated financial statements.
18
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Principal
Amount (c) /
Shares
Amortized
Cost
Fair
Value (d)
NewStar Clarendon 2014-1A Class D
(v)(w)
Diversified Financials
27.0%
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
69.8
Opendoor Labs Inc, Structured Mezzanine
(w)(x)
Real Estate
10.0%
4/1/26
$
88.9
88.9
87.4
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
11.8
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
Roemanu LLC (FKA Toorak Capital Partners LLC), Private Equity
(ad)(v)
Real Estate
204,437,874
215.9
255.3
Roemanu LLC (FKA Toorak Capital Partners LLC), Structured Mezzanine
(ad)(v)
Real Estate
L+650 PIK (L+650 Max PIK)
5/11/22
$
24.0
24.0
24.0
Roemanu LLC (FKA Toorak Capital Partners LLC), Structured Mezzanine
(ad)(x)
Real Estate
L+650 PIK (L+650 Max PIK)
5/11/22
$
6.0
6.0
6.0
Star Mountain Diversified Credit Income Fund III, LP, Private Equity
(o)(w)
Diversified Financials
23,500,000
23.5
24.8
Toorak Capital Funding LLC, Membership Interest
(ad)(v)(w)(y)
Real Estate
1,723,140
1.9
1.7
Total Asset Based Finance
2,252.8
2,339.1
Unfunded commitments
(161.4
)
(161.4
)
Net Asset Based Finance
2,091.4
2,177.7
Credit Opportunities Partners JV, LLC 19.0%
Credit Opportunities Partners JV, LLC
(ad)(v)(w)
Diversified Financials
$
1,549.8
1,484.2
1,479.6
Credit Opportunities Partners JV, LLC
1,484.2
1,479.6
See notes to unaudited consolidated financial statements.
19
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Number of
Shares
Amortized
Cost
Fair
Value (d)
Equity/Other17.6% (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
1.8
Affordable Care Inc, Preferred Stock
(ac)(v)
Health Care Equipment & Services
11.8% PIK (11.8% Max PIK)
49,073,000
48.1
50.3
American Vision Partners, Private Equity
(v)(y)
Health Care Equipment & Services
2,450,230
2.5
2.4
Amerivet Partners Management Inc, Preferred Stock
(v)
Health Care Equipment & Services
11.5% PIK (11.5% Max PIK)
12,702,290
12.3
12.3
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
14.1
Ardonagh Ltd, Ordinary Shares
(v)(w)(y)
Insurance
16,450
2.7
Ardonagh Ltd, Ordinary Shares
(v)(w)(y)
Insurance
116,814
0.2
0.4
Ardonagh Ltd, Preferred Stock
(v)(w)(y)
Insurance
6,113,719
9.1
21.4
Arena Energy LP, Warrants
(v)(y)
Energy
68,186,525
0.4
0.8
Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock
(p)(y)
Energy
10,193
9.7
3.6
Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim
(p)(y)
Energy
86,607,143
19.4
30.4
Aspect Software Inc, Common Stock
(l)(s)(v)(y)
Software & Services
1,309,955
2.3
2.0
See notes to unaudited consolidated financial statements.
20
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Number of
Shares
Amortized
Cost
Fair
Value (d)
Aspect Software Inc, Warrant
(l)(s)(v)(y)
Software & Services
1/15/24
181,730
$
0.3
$
0.3
athenahealth Inc, Preferred Stock
(ac)(v)
Health Care Equipment & Services
L+1,075 PIK (L+1,075 Max PIK)
317,493,473
311.2
313.8
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
9.3
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
(aa)(v)(w)(y)
Media & Entertainment
2,023,714
5.9
Cengage Learning, Inc, Common Stock
(v)(y)
Media & Entertainment
227,802
7.5
4.4
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
CTI Foods Holding Co LLC, Common Stock
(v)(y)
Food, Beverage & Tobacco
5,892
0.7
Cubic Corp, Preferred Stock
(v)
Software & Services
11.0% PIK (11.0% Max PIK)
42,141,600
39.6
41.8
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
See notes to unaudited consolidated financial statements.
21
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Number of
Shares
Amortized
Cost
Fair
Value (d)
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
11.4
Fronton BV, Common Stock
(ac)(o)(y)
Consumer Services
14,943
1.2
Galaxy Universal LLC, Common Stock
(v)(y)
Consumer Durables & Apparel
228,806
35.5
37.8
Galaxy Universal LLC, Trade Claim
(v)(y)
Consumer Durables & Apparel
7,701,195
4.6
1.6
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
4.3
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
10.1
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
See notes to unaudited consolidated financial statements.
22
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Number of
Shares
Amortized
Cost
Fair
Value (d)
JW Aluminum Co, Preferred Stock
(ad)(j)(u)(v)
Materials
6.25% PIK (12.5% Max PIK)
2/15/28
15,279
$
186.6
$
125.1
Maverick Natural Resources LLC, Common Stock
(n)(o)(y)
Energy
259,211
84.5
189.3
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
1.9
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
3.4
Misys Ltd, Preferred Stock
(v)(w)
Software & Services
L+1,025 PIK (L+1,025 Max PIK)
58,757,865
54.7
58.3
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
2.3
One Call Care Management Inc, Preferred Stock A
(ad)(v)(y)
Health Care Equipment & Services
371,992
22.8
25.0
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
7.7
Petroplex Acidizing Inc, Preferred Stock A
(ac)(v)(y)
Energy
25,265,357
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
14.8
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
33.5
1.0
Proserv Acquisition LLC, Class A Preferred Units
(ac)(v)(w)(y)
Energy
837,780
5.4
9.5
See notes to unaudited consolidated financial statements.
23
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio
Company (a)
Footnotes
Industry
Rate (b)
Floor (b)
Maturity
Number of
Shares
Amortized
Cost
Fair
Value (d)
Quorum Health Corp, Trade Claim
(v)(y)
Health Care Equipment & Services
8,301,000
$
0.7
$
0.8
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
11.8
Sequel Youth & Family Services LLC, Class R Common Stock
(v)(y)
Health Care Equipment & Services
900,000
Sequel Youth & Family Services LLC, NP-1 Common
Stock
(v)(y)
Health Care Equipment & Services
1,000,000
4.0
0.7
Sorenson Communications LLC, Common Stock
(ac)(j)(u)(v)(y)
Telecommunication Services
89,959
42.5
68.4
Sound United LLC, Common Stock
(ad)(v)
Consumer Durables & Apparel
12,857,143
17.3
167.8
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
0.9
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
29.6
Worldwise Inc, Class A Private Equity
(v)(y)
Household & Personal Products
30,000
1.5
1.5
Worldwise Inc, Class B Private Equity
(v)(y)
Household & Personal Products
30,000
1.5
1.5
Zeta Interactive Holdings Corp, Common Stock
(aa)(v)(y)
Software & Services
3,610,212
30.8
46.0
Total Equity/Other
1,238.9
1,365.4
TOTAL INVESTMENTS213.1%
$
16,483.2
16,554.0
LIABILITIES IN EXCESS OF OTHER ASSETS(113.1%)
$
(8,787.0
)
NET ASSETS100%
$
7,767.0
See notes to unaudited consolidated
financial statements.
24
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(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
March 31, 2022
Unrealized Appreciation
(Depreciation)
AUD
10/17/2022
JP Morgan Chase Bank
A$
3.0 Sold
$
2.1
$
2.3
$
(0.2
)
AUD
2/14/2023
JP Morgan Chase Bank
A$
2.2 Sold
1.6
1.6
0.0
CAD
6/7/2022
JP Morgan Chase Bank
C$
1.4 Sold
1.1
1.1
0.0
CAD
6/7/2022
JP Morgan Chase Bank
C$
1.9 Sold
1.5
1.5
0.0
CAD
11/10/2022
JP Morgan Chase Bank
C$
1.5 Sold
1.2
1.2
0.0
CAD
11/15/2024
JP Morgan Chase Bank
C$
4.0 Sold
3.2
3.2
0.0
EUR
5/6/2022
JP Morgan Chase Bank
6.1 Sold
7.5
6.8
0.7
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
2.4
0.3
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
11.2
0.5
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
48.8
0.3
EUR
8/8/2025
JP Morgan Chase Bank
4.8 Sold
5.7
5.6
0.1
EUR
8/8/2025
JP Morgan Chase Bank
1.9 Sold
2.3
2.3
0.0
GBP
1/11/2023
JP Morgan Chase Bank
£
1.9 Sold
2.9
2.5
0.4
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
4.5
0.3
GBP
1/11/2023
JP Morgan Chase Bank
£
5.0 Sold
6.6
6.4
0.2
GBP
1/11/2023
JP Morgan Chase Bank
£
1.4 Sold
1.9
1.8
0.1
GBP
10/13/2023
JP Morgan Chase Bank
£
6.2 Sold
8.5
8.2
0.3
NOK
8/8/2025
JP Morgan Chase Bank
NOK
49.1 Sold
5.2
5.6
(0.4
)
NOK
8/8/2025
JP Morgan Chase Bank
NOK
11.4 Sold
1.2
1.3
(0.1
)
SEK
5/10/2024
JP Morgan Chase Bank
SEK
503.0 Sold
60.1
55.2
4.9
SEK
5/10/2024
JP Morgan Chase Bank
SEK
34.5 Sold
4.1
3.8
0.3
SEK
5/10/2024
JP Morgan Chase Bank
SEK
68.0 Sold
8.1
7.5
0.6
SEK
8/8/2025
JP Morgan Chase Bank
SEK
119.3 Sold
13.3
13.1
0.2
SEK
8/8/2025
JP Morgan Chase Bank
SEK
27.8 Sold
3.1
3.1
0.0
Total
$
217.9
$
208.5
$
9.4
(a)
Security may be an obligation of one or more entities affiliated with the named company.
See notes to unaudited consolidated financial statements.
25
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
(b)
Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a
publicly disclosed base rate plus a basis point spread. As of March 31, 2022, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.96%, the Euro Interbank Offered Rate, or EURIBOR, was (0.46)%, Canadian Dollar Offer
Rate, or CDOR was 1.26%, the Australian Bank Bill Swap Bid Rate, or BBSY, or B, was 0.28%, the Reykjavik Interbank Offered Rate, or REIBOR, was 3.61%, the Stockholm Interbank Offered Rate, or STIBOR or SR, was 0.06%, the
Sterling Interbank Offered Rate, or SONIA or SA, was 0.69%, the Secured Overnight Financing Rate, or SOFR, was 0.29% and the U.S. Prime Lending Rate, or Prime, was 3.50%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. Variable rate securities with no floor rate use the respective benchmark rate in all cases.
(c)
Denominated in U.S dollars unless otherwise noted.
(d)
Fair value determined by the Companys 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 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 held within CCT Tokyo Funding LLC and 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 held within FS KKR MM CLO 1 LLC (see Note 9).
(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 to support
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, or portion of 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 companys total assets. As of March 31, 2022,
77.7% of the Companys total assets represented qualifying assets.
See notes to unaudited consolidated financial statements.
26
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
(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.
(z)
Asset is on non-accrual status.
(aa)
Security is classified as Level 1 or Level 2 in the Companys fair value hierarchy (see Note 8).
(ab)
Position or portion thereof unsettled as of March 31, 2022.
(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 companys voting securities and generally is deemed to control a portfolio company if it owns more than 25% of the portfolio companys voting securities
or it has the power to exercise control over the management or policies of such portfolio company. As of March 31, 2022, 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 March 31, 2022:
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31, 2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
Senior Secured LoansFirst Lien
Affordable Care Inc
$
$
$
$
$
$
$
$
$
$
Affordable Care Inc
59.9
(21.0
)
(0.1
)
38.8
1.0
athenahealth Inc
6.8
6.8
0.2
Belk Inc
49.2
1.5
(0.3
)
(0.2
)
(5.9
)
44.3
2.2
1.3
Belk Inc
21.9
0.1
(0.2
)
21.8
0.5
Borden (New Dairy Opco)
9.0
(9.0
)
0.6
(0.6
)
0.1
0.3
Borden (New Dairy Opco)
42.0
0.1
(42.0
)
1.7
(1.8
)
0.9
1.3
Borden Dairy Co
(25.4
)
25.4
Constellis Holdings LLC
15.0
0.1
(0.1
)
15.0
0.4
Fairway Group Holdings Corp
0.7
(0.7
)
Fairway Group Holdings Corp
Micronics Filtration Holdings LLC
51.0
5.7
(51.7
)
(5.0
)
0.2
0.3
Petroplex Acidizing Inc
9.7
(0.1
)
2.6
12.2
Sorenson Communications LLC
60.1
0.2
(1.5
)
0.1
(0.4
)
58.5
1.1
Sungard Availability Services Capital Inc
6.0
0.1
(0.8
)
5.3
0.1
ThermaSys Corp
3.5
0.2
3.7
See notes to unaudited consolidated financial statements.
27
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31, 2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
Senior Secured LoansSecond Lien
Belk Inc
$
6.7
$
$
$
$
(1.4
)
$
5.3
$
$
$
$
Constellis Holdings LLC
12.0
0.1
(2.6
)
9.5
0.5
Fairway Group Holdings Corp
Sungard Availability Services Capital Inc
8.3
(0.2
)
(5.6
)
2.5
Subordinated Debt
athenahealth Inc
5.5
(0.1
)
5.4
Asset Based Finance
Home Partners JV, Structured Mezzanine
90.4
2.5
(2.5
)
(0.1
)
90.3
2.5
Home Partners JV, Private Equity
9.4
(0.3
)
(0.1
)
1.2
10.2
0.7
Home Partners JV, Common Stock
80.6
0.1
(2.2
)
8.0
86.5
4.3
Home Partners JV 2, Structured Mezzanine
3.5
1.8
5.3
0.1
Home Partners JV 2, Private Equity
0.1
0.1
Home Partners JV 2, Private Equity
1.6
0.8
0.2
2.6
Jet Edge International LLC, Preferred Stock
16.8
13.5
30.3
0.4
Jet Edge International LLC, Warrant
4.5
12.0
16.5
Jet Edge International LLC, Term Loan
75.6
74.9
(2.9
)
5.4
153.0
2.7
0.5
0.1
Orchard Marine Limited, Class B Common Stock
(3.1
)
3.1
Orchard Marine Limited, Series A Preferred Stock
64.6
(65.4
)
3.4
(2.6
)
See notes to unaudited consolidated financial statements.
28
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31, 2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
Equity/Other
Affordable Care Inc, Preferred Stock
$
52.1
$
$
$
$
(1.8
)
$
50.3
$
$
1.4
$
$
athenahealth Inc, Preferred Stock
311.2
2.6
313.8
4.3
Belk Inc, Common Stock
Borden (New Dairy Opco), Common Stock
7.7
1.6
9.3
Constellis Holdings LLC, Private Equity
0.2
(0.2
)
Fairway Group Holdings Corp, Common Stock
Fronton BV, Common Stock
1.4
(0.2
)
1.2
Micronics Filtration Holdings Inc, Common Stock
(0.1
)
(0.5
)
0.6
Micronics Filtration Holdings Inc, Preferred Stock, Series A
0.1
(0.6
)
0.5
Micronics Filtration Holdings Inc, Preferred Stock, Series B
0.4
(0.4
)
0.2
(0.2
)
Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK
11.9
(11.9
)
11.9
(11.9
)
Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK
6.2
(6.2
)
6.2
(6.2
)
Petroplex Acidizing Inc, Preferred Stock A
Petroplex Acidizing Inc, Warrant
Proserv Acquisition LLC, Class A Common Units
0.1
0.1
0.8
1.0
See notes to unaudited consolidated financial statements.
29
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31, 2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
Proserv Acquisition LLC, Class A Preferred Units
$
9.3
$
$
$
$
0.2
$
9.5
$
$
$
$
Sorenson Communications LLC, Common Stock
67.5
0.9
68.4
Sungard Availability Services Capital Inc, Common Stock
ThermaSys Corp, Common Stock
ThermaSys Corp, Preferred Stock
Total
$
859.0
$
411.6
$
(217.7
)
$
(5.8
)
$
30.3
$
1,077.4
$
10.0
$
10.5
$
1.9
$
5.0
(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, fee and dividend income presented for the full three months ended March 31, 2022.
See notes to unaudited consolidated financial
statements.
30
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
(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 companys voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of March 31, 2022, the Company held investments
in portfolio companies of which it is deemed to be an affiliated person and deemed to control. During the three months ended March 31, 2022, the Company disposed of investments in portfolio companies 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 March 31, 2022:
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31,
2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
Senior Secured LoansFirst Lien
Amtek Global Technology Pte Ltd
$
34.8
$
$
$
$
(4.8
)
$
30.0
$
$
$
$
ATX Networks Corp
46.8
0.4
(0.6
)
46.6
1.0
HM Dunn Co Inc
33.6
0.7
(0.3
)
34.0
0.6
HM Dunn Co Inc
2.0
(2.0
)
One Call Care Management Inc
5.0
(0.3
)
4.7
0.1
Production Resource Group LLC
133.3
4.1
(0.6
)
136.8
1.6
2.2
Production Resource Group LLC
0.1
0.1
Production Resource Group LLC
64.4
27.2
(0.2
)
(0.2
)
91.2
1.6
0.7
0.3
Production Resource Group LLC
20.2
(20.1
)
(0.1
)
Warren Resources Inc
18.7
0.1
(0.2
)
(0.1
)
18.5
0.6
Senior Secured LoansSecond Lien
Amtek Global Technology Pte Ltd
(0.1
)
0.1
Other Senior Secured Debt
JW Aluminum Co
81.0
0.1
(1.0
)
80.1
2.0
One Call Care Management Inc
23.5
0.1
(2.4
)
21.2
0.1
0.5
Subordinated Debt
ATX Networks Corp
7.1
5.7
12.8
Hilding Anders
46.6
(46.6
)
Hilding Anders
Hilding Anders
Asset Based Finance
801 5th Ave, Seattle, Structure Mezzanine
57.2
0.1
(0.1
)
57.2
1.2
0.4
801 5th Ave, Seattle, Private Equity
23.1
3.0
26.1
Avenue One PropCo, Private Equity
12.6
12.6
See notes to unaudited consolidated financial statements.
31
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31,
2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
Avida Holding AB, Common Stock
$
52.3
$
$
$
$
(3.9
)
$
48.4
$
$
$
$
Kilter Finance, Preferred Stock
36.1
32.6
(0.1
)
68.6
1.4
0.9
Kilter Finance, Private Equity
0.5
0.5
KKR Rocket Loans Aggregator LLC, Partnership Interest
1.4
0.4
0.1
1.9
0.2
My Community Homes SFR PropCo 2, Private Equity
33.0
157.0
(85.0
)
105.0
Prime St LLC, Private Equity
9.1
2.7
11.8
Prime St LLC, Structured Mezzanine
52.4
52.4
0.7
0.8
Toorak Capital Funding LLC, Membership Interest
1.7
1.7
Roemanu LLC (FKA Toorak Capital Partners LLC), Private Equity
199.3
57.8
(1.8
)
255.3
3.9
Roemanu LLC (FKA Toorak Capital Partners LLC), Structured Mezzanine
22.0
22.0
(20.0
)
24.0
0.4
Credit Opportunities Partners JV, LLC
Credit Opportunities Partners JV, LLC
1,396.2
87.5
(4.1
)
1,479.6
46.2
Equity/Other
Amtek Global Technology Pte Ltd, Common Stock
Amtek Global Technology Pte Ltd, Ordinary Shares
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
7.1
3.0
10.1
HM Dunn Co Inc, Preferred Stock, Series B
JW Aluminum Co, Common Stock
JW Aluminum Co, Preferred Stock
122.6
8.8
(0.1
)
(6.2
)
125.1
0.3
6.5
One Call Care Management Inc, Common Stock
2.4
(0.1
)
2.3
One Call Care Management Inc, Preferred Stock A
26.1
(1.1
)
25.0
See notes to unaudited consolidated financial statements.
32
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of March 31, 2022
(in millions, except share amounts)
Portfolio Company
Fair Value at
December 31,
2021
Gross
Additions (1)
Gross
Reductions (2)
Net Realized
Gain (Loss)
Net Change in
Unrealized
Appreciation
(Depreciation)
Fair Value at
March 31,
2022
Interest
Income (3)
PIK
Income (3)
Fee
Income (3)
Dividend
Income (3)
One Call Care Management Inc, Preferred Stock B
$
9.2
$
$
$
$
(1.5
)
$
7.7
$
$
0.2
$
$
PRG III LLC, Preferred Stock, Series A PIK
17.4
(2.6
)
14.8
PRG III LLC, Preferred Stock, Series B PIK
Sound United LLC, Common Stock
77.5
90.3
167.8
Warren Resources Inc, Common Stock
20.4
9.2
29.6
Total
$
2,684.1
$
411.5
$
(128.6
)
$
$
36.5
$
3,003.5
$
9.6
$
14.2
$
0.3
$
50.3
(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 three months ended March 31, 2022.
See notes to unaudited consolidated financial
statements.
33
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 LoansFirst Lien126.3%
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
See notes to unaudited consolidated financial statements.
34
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)
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
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
See notes to unaudited consolidated financial statements.
35
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)
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
See notes to unaudited consolidated financial statements.
36
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)
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
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
See notes to unaudited consolidated financial statements.
37
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)
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
See notes to unaudited consolidated financial statements.
38
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)
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
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
Lloyds 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
See notes to unaudited consolidated financial statements.
39
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)
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
See notes to unaudited consolidated financial statements.
40
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)
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
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
See notes to unaudited consolidated financial statements.
41
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)
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
See notes to unaudited consolidated financial statements.
42
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)
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
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
See notes to unaudited consolidated financial statements.
43
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)
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
See notes to unaudited consolidated financial statements.
44
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)
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 LoansFirst Lien
11,165.5
11,236.1
Unfunded Loan Commitments
(1,470.4
)
(1,470.4
)
Net Senior Secured LoansFirst Lien
9,695.1
9,765.7
Senior Secured LoansSecond Lien20.1%
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
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
See notes to unaudited consolidated financial statements.
45
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)
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 LoansSecond Lien
1,571.6
1,563.7
Unfunded Loan Commitments
(7.2
)
(7.2
)
Net Senior Secured LoansSecond Lien
1,564.4
1,556.5
See notes to unaudited consolidated financial statements.
46
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)
Other Senior Secured Debt1.6%
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 Debt1.4%
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
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 Finance29.1%
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
See notes to unaudited consolidated financial statements.
47
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)
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
See notes to unaudited consolidated financial statements.
48
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)
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
Jet Edge International LLC, Preferred Stock
(ac)(p)
Transportation
8.0%, 0.0% PIK
(8.0% Max PIK)
$
20,878,236.0
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
See notes to unaudited consolidated financial statements.
49
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)
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
See notes to unaudited consolidated financial statements.
50
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)
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
Credit Opportunities Partners JV, LLC18.1%
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
See notes to unaudited consolidated financial statements.
51
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)
Equity/Other11.7%(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
See notes to unaudited consolidated financial statements.
52
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)
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
Cubic Corp, Preferred Stock
(v)
Software & Services
11.0% PIK
(11.0% Max PIK)
42,141,600
39.6
42.3
See notes to unaudited consolidated financial statements.
53
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)
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
See notes to unaudited consolidated financial statements.
54
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)
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
See notes to unaudited consolidated financial statements.
55
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)
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
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
See notes to unaudited consolidated financial statements.
56
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)
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 INVESTMENTS208.3%
$
16,056.7
16,101.5
LIABILITIES IN EXCESS OF OTHER ASSETS(108.3%)
(8,371.5
)
NET ASSETS100%
$
7,730.0
See notes to unaudited consolidated
financial statements.
57
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.
See notes to unaudited consolidated financial statements.
58
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2021
(in millions, except share amounts)
(b)
Certain variable rate securities in the Companys 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.
(c)
Denominated in U.S. dollars unless otherwise noted.
(d)
Fair value determined by the Companys 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 companys total assets. As of December 31, 2021, 75.1% of the
Companys 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.
See notes to
unaudited consolidated financial statements.
59
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2021
(in millions, except share amounts)
(y)
Security is non-income producing.
(z)
Asset is on non-accrual status.
(aa)
Security is classified as Level 1 or 2 in the Companys 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 companys voting securities and generally is deemed to control a portfolio company if it owns more than 25% of the portfolio companys 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 LoansFirst 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
See notes to unaudited consolidated financial statements.
60
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 LoansSecond 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
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
See notes to unaudited consolidated financial statements.
61
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)
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
See notes to unaudited consolidated financial statements.
62
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)
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
Sorenson Communications LLC, Common
Stock (4)
42.5
25.0
67.5
Sungard Availability 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.
See notes to unaudited consolidated financial statements.
63
Table of Contents
FS KKR Capital Corp.
Consolidated Schedule of Investments (continued)
As of December 31, 2021
(in millions, except share amounts)
(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 companys 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 LoansFirst 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
Senior Secured LoansSecond 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
See notes to unaudited consolidated financial statements.
64
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)
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 LLC, Membership Interest
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
See notes to unaudited consolidated financial statements.
65
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)
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)
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 unaudited consolidated financial statements.
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FS KKR Capital Corp.
Notes to Unaudited 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. The Company has various wholly-owned subsidiaries, including
special-purpose financing subsidiaries and subsidiaries through which it holds interests in portfolio companies. The unaudited consolidated financial statements include both the Companys accounts and the accounts of its wholly-owned
subsidiaries as of March 31, 2022. All intercompany transactions have been eliminated in consolidation. Certain of the Companys consolidated subsidiaries are subject to U.S. federal and state income taxes.
The Companys investment objectives are to generate current income and, to a lesser extent, long-term capital appreciation. The
Companys 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 Companys 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 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 12 for a discussion of the 2021 Merger.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with
accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. For a more complete discussion of significant accounting policies and certain other information, the Companys interim unaudited consolidated financial statements should be read
in conjunction with its audited consolidated financial statements as of and for the year ended December 31, 2021 included in the Companys annual report on Form 10-K for the year ended
December 31, 2021. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The December 31, 2021 consolidated balance
sheet and consolidated schedule of investments are derived from the Companys audited consolidated
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 2. Summary of Significant Accounting
Policies (continued)
financial statements as of and for the year ended December 31, 2021. 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 ServicesInvestment Companies .
Use of Estimates: The preparation of the unaudited 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.
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 Companys
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 Companys 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.
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 Companys 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 Companys 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 Companys pre-incentive fee net investment income for such quarter exceeds the hurdle rate of 1.75%. Once the Companys 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 Companys 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.
Reclassifications: Certain amounts in the unaudited consolidated financial statements as of and for the three months ended
March 31, 2021 and the audited consolidated financial statements as of and for the year ended December 31, 2021 may have been reclassified to conform to the classifications used to prepare the unaudited consolidated financial statements as
of and for the three months ended March 31, 2022.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 2. Summary of Significant Accounting
Policies (continued)
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 Companys 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 Companys 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. For the three months ended March 31, 2022 and 2021, the Company recognized $14 and $2, respectively, in structuring fee revenue. The
Company records prepayment premiums on loans and securities as fee income when it receives such amounts.
Derivative
Instruments: The Companys 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 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.
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 relationships, and other transactions that reference London Interbank Offered Rate (LIBOR) or another reference rate expected to be discontinued because of reference rate reform. In January
2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) , which expanded the scope of Topic 848 to include derivative instruments impacted by discounting transition. ASU 2020-04 and ASU 2021-01 are effective for all entities 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 the adoption of ASU 2020-04 and 2021-01 on its consolidated financial
statements.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 3. Share Transactions
Below is a summary of transactions with respect to shares of the Companys common stock during the three months ended March 31, 2022
and 2021:
Three Months Ended March 31,
2022
2021
Shares
Amount
Shares
Amount
Share Repurchase Program
(404,928
)
$
(9
)
$
Net Proceeds from Share Transactions
(404,928
)
$
(9
)
$
During the three months ended March 31, 2022, the administrator for the Companys distribution
reinvestment plan, or 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. During the three months ended
March 31, 2021, the administrator for the DRP purchased 275,642 shares of common stock in the open market at an average price per share of $17.21 (totaling $5) pursuant to the DRP, and distributed such shares to participants in the
DRP. During the period from April 1, 2022 to April 30, 2022, the administrator for the DRP purchased 551,483 shares of common stock in the open market at an average price per share of $22.97 (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.
September 2021 Share
Repurchase Program
In November 2020, the Companys 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 Companys 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 Companys 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.
During the three months ended March 31, 2022, the Company repurchased 404,928 shares
of common stock pursuant to the share repurchase program at an average price per share (inclusive of commissions paid) of $21.98 (totaling $9).
During the period from April 1, 2022 to April 30, 2022, the Company repurchased 121,143 shares of common stock pursuant to the share
repurchase program at an average price per share (inclusive of commissions paid) of $22.19 (totaling $3).
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 3. Share
Transactions (continued)
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 Companys common stock. As a result, the Company issued an aggregate of approximately 161,374,028 shares of its common stock to former FSKR
stockholders.
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 Companys gross assets excluding cash and cash equivalents (gross assets equal the total assets of the Company as set forth on the Companys consolidated balance sheets) and an incentive fee based on the
Companys 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 Companys 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 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 Companys 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 CombinationsRelated Issues as a result of the 2021 Merger.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 4. Related Party
Transactions (continued)
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 Companys 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 Companys
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 Companys stockholders and reports filed with the U.S.
Securities and Exchange Commission, or 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 Companys
stockholders, and generally overseeing the payment of the Companys 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 Advisors 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
Companys 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
Companys 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 Companys 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 Companys board of directors compares the total amount paid to the Advisor for such services as a percentage of the Companys net assets to the same ratio as reported by other comparable BDCs.
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 three months ended March 31, 2022 and 2021:
Three Months Ended
March 31,
Related Party
Source Agreement
Description
2022
2021
The Advisor
Investment advisory agreement and prior investment advisory agreement
Base Management Fee (1)
$
62
$
25
The Advisor
Investment advisory agreement and prior investment advisory agreement
Subordinated Incentive Fee on Income (2)
$
25
$
The Advisor
Administration agreement
Administrative Services Expenses (3)
$
4
$
2
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 4. Related Party
Transactions (continued)
(1)
During the three months ended March 31, 2022 and 2021, $60 and $25, respectively, in base management fees
were paid to the Advisor. As of March 31, 2022, $62 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 three months ended March 31, 2022, the amount shown is net of waivers of $15. During the three months ended March 31, 2022 and 2021, $19 and $0,
respectively, of subordinated incentive fees on income were paid to the Advisor. As of March 31, 2022, subordinated incentive fees on income of $25 were payable to the Advisor.
(3)
During the three months ended March 31, 2022 and 2021, $4 and $1, 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 $0.2 for the three months ended
March 31, 2022. The Company paid $2 and $1, respectively, in administrative services expenses to the Advisor during the three months ended March 31, 2022 and 2021.
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 Companys best interests or in the best interest of the Companys stockholders. The
Companys investment objectives may overlap with the investment objectives of such investment funds, accounts or other investment vehicles. For additional information regarding potential conflicts of interest, see the Companys annual
report on Form 10-K for the year ended December 31, 2021.
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 Companys 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
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 4. Related Party
Transactions (continued)
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 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 Companys common stock. 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 Companys 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 three months ended
March 31, 2022 and 2021:
Distribution
For the Three Months Ended
Per Share
Amount
Fiscal 2021
March 31, 2021
$
0.60
$
74
Total
$
0.60
$
74
Fiscal 2022
March 31, 2022
$
0.63
$
179
Total
$
0.63
$
179
On May 5, 2022, the Companys board of directors declared a regular quarterly cash distribution of
$0.68 per share, which will be paid on or about July 5, 2022 to stockholders of record as of the close of business on June 15, 2022. The timing and amount of any future distributions to stockholders are subject to applicable legal
restrictions and the sole discretion of the Companys board of directors.
Pursuant to the DRP, the Company will reinvest all cash
dividends or distributions declared by the Companys board of directors on behalf of stockholders who do not elect to receive their distributions in cash. As a result, if the Companys 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 Companys 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 Companys common stock on the payment date for the
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 5. Distributions (continued)
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 Companys 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 Companys common stock is trading above 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 the fair market
value of the Companys common stock. The stockholders 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 stockholders 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 Companys 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 Companys 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
stockholders investment rather than a return of earnings or gains derived from the Companys 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 Companys stockholders. There can be no assurance that
the Company will be able to pay distributions at a specific rate or at all.
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 5. Distributions (continued)
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 three months ended March 31, 2022 and 2021:
Three Months Ended March 31,
2022
2021
Source of Distribution
Distribution
Amount
Percentage
Distribution
Amount
Percentage
Return of capital
$
$
Net investment income (1)
179
100
%
74
100
%
Short-term capital gains proceeds from the sale of assets
Long-term capital gains proceeds from the sale of assets
Total
$
179
100
%
$
74
100
%
(1)
During the three months ended March 31, 2022 and 2021, 83.8% and 86.7%, respectively, of the
Companys gross investment income was attributable to cash income earned, 5.3% and 2.0%, respectively, was attributable to non-cash accretion of discount and 10.9% and 11.3%, respectively, was
attributable to PIK interest.
The determination of the tax attributes of the Companys distributions is made
annually as of the end of the Companys fiscal year based upon the Companys taxable income for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the
actual tax attributes of the Companys distributions for a full year. The actual tax characteristics of distributions to stockholders are reported to stockholders annually on Form 1099-DIV.
Net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term losses. As of
March 31, 2022, the Company had capital loss carryforwards available to offset future realized capital gains of approximately $2,021. $85 of such losses were carried over from CCT due to the Companys acquisition of CCT, or 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.
As of March 31, 2022 and December 31, 2021, the Companys gross unrealized appreciation on a tax basis was $1,778 and $1,665,
respectively. As of March 31, 2022 and December 31, 2021, the Companys gross unrealized depreciation on a tax basis was $1,932 and $1,995, respectively.
The aggregate cost of the Companys investments for U.S. federal income tax purposes totaled $17,449 and $17,167 as of March 31,
2022 and December 31, 2021, respectively. The aggregate net unrealized appreciation (depreciation) on investments on a tax basis was $(895) and $(1,066) as of March 31, 2022 and December 31, 2021, respectively. The aggregate net
unrealized appreciation (depreciation) on investments on a tax basis excludes net unrealized appreciation (depreciation) from merger accounting, foreign currency forward contracts and foreign currency transactions.
76
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 5. Distributions (continued)
As of March 31, 2022, the Company had a deferred tax liability of $18 resulting from
unrealized appreciation on investments held by the Companys wholly-owned taxable subsidiaries and a deferred tax asset of $74 resulting from net operating losses, capital losses, and interest expense limitation carryforwards of the
Companys wholly-owned taxable subsidiaries and unrealized depreciation on investments held by the Companys wholly-owned taxable subsidiaries. As of March 31, 2022, certain wholly-owned taxable subsidiaries anticipated that they
would be unable to fully utilize their generated net operating losses and capital losses, therefore the deferred tax asset was offset by a valuation allowance of $56. For the three months ended March 31, 2022, 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 Companys investment portfolio at cost and fair value as of March 31, 2022 and
December 31, 2021:
March 31, 2022
(Unaudited)
December 31, 2021
Amortized
Cost (1)
Fair
Value
Percentage
of Portfolio
Amortized
Cost (1)
Fair
Value
Percentage
of Portfolio
Senior Secured LoansFirst Lien
$
9,862
$
9,923
59.9
%
$
9,695
$
9,765
60.7
%
Senior Secured LoansSecond Lien
1,464
1,416
8.6
%
1,564
1,557
9.7
%
Other Senior Secured Debt
149
117
0.7
%
149
120
0.7
%
Subordinated Debt
194
75
0.5
%
188
111
0.7
%
Asset Based Finance
2,091
2,178
13.2
%
2,132
2,245
13.9
%
Credit Opportunities Partners JV, LLC
1,484
1,480
8.9
%
1,397
1,396
8.7
%
Equity/Other
1,239
1,365
8.2
%
932
907
5.6
%
Total
$
16,483
$
16,554
100.0
%
$
16,057
$
16,101
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 March 31, 2022, the Company held investments in eighteen
portfolio companies of which it is deemed to control. As of March 31, 2022, the Company held investments in fifteen 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 unaudited consolidated schedule of investments as of March 31, 2022 in this quarterly report on Form 10-Q.
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 in this quarterly report on Form 10-Q.
77
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
The Companys 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 March 31, 2022, the Company had unfunded debt investments with aggregate unfunded commitments of $1,584.1, unfunded equity/other commitments of $497.8 and unfunded commitments of $262.7 to Credit Opportunities
Partners JV, LLC. As of December 31, 2021, the Company had unfunded debt investments with aggregate unfunded commitments of $1,724.1, unfunded equity commitments of $576.9 and unfunded commitments of $350.2 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 Companys unfunded debt investments, see the Companys unaudited
consolidated schedule of investments as of March 31, 2022 and the Companys audited consolidated schedule of investments as of December 31, 2021.
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 March 31, 2022 and December 31, 2021:
March 31, 2022
(Unaudited)
December 31, 2021
Industry Classification
Fair
Value
Percentage of
Portfolio
Fair
Value
Percentage of
Portfolio
Automobiles & Components
$
94
0.5
%
$
89
0.5
%
Banks
15
0.1
%
Capital Goods
2,240
13.5
%
2,281
14.2
%
Commercial & Professional Services
1,684
10.2
%
1,615
10.0
%
Consumer Durables & Apparel
523
3.2
%
551
3.4
%
Consumer Services
275
1.7
%
393
2.4
%
Credit Opportunities Partners JV, LLC
1,480
8.9
%
1,396
8.7
%
Diversified Financials
589
3.6
%
672
4.2
%
Energy
314
1.9
%
241
1.5
%
Food & Staples Retailing
272
1.6
%
296
1.8
%
Food, Beverage & Tobacco
194
1.2
%
256
1.6
%
Health Care Equipment & Services
2,106
12.7
%
1,613
10.0
%
Household & Personal Products
314
1.9
%
227
1.4
%
Insurance
807
4.9
%
898
5.6
%
Materials
212
1.3
%
211
1.3
%
Media & Entertainment
501
3.0
%
720
4.5
%
Pharmaceuticals, Biotechnology & Life Sciences
230
1.4
%
235
1.5
%
Real Estate
989
6.0
%
876
5.4
%
Retailing
367
2.2
%
288
1.8
%
Software & Services
2,795
16.9
%
2,698
16.8
%
Technology Hardware & Equipment
41
0.2
%
42
0.3
%
Telecommunication Services
127
0.8
%
128
0.8
%
Transportation
400
2.4
%
360
2.2
%
Total
$
16,554
100.0
%
$
16,101
100.0
%
78
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
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 COPs obligations under its credit facilities, and COPs 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. COPJVs 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 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 COPJVs assets under administration, calculated and payable quarterly in
arrears. As of March 31, 2022, the Company and SCRS have funded approximately $1,699.8 to COPJV, of which $1,487.3 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 March 31, 2022. 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 March 31, 2022, total outstanding borrowings under the Big Cedar Creek Funding Credit Facility were $267.3. 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 March 31, 2022. 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 a 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 March 31, 2022, total outstanding borrowings under the Boxwood Drive Funding Credit Facility were $277.4. Borrowings
under the Boxwood Drive Funding Credit Facility are secured by substantially all of the assets of Boxwood Drive Funding.
79
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
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 March 31, 2022. 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 March 31, 2022, total outstanding borrowings
under the Chestnut Street Funding Credit Facility were $243.8. 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 March 31, 2022. 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 March 31, 2022, total outstanding borrowings under the Green Creek Funding Credit Facility
were $360.2. Borrowings under the Green Creek Funding Credit Facility are secured by substantially all of the assets of Green Creek Funding.
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 2021 COPJV Notes, to qualified institutional buyers in reliance on Section 4(a)(2) of the Securities Act. Interest of the April 2021 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 2021 COPJV Notes cease to be rated investment
grade, and the April 2021 COPJV Notes will be subject to an additional 2.0% of default interest during the continuance of an event of default. The April 2021 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 2021 COPJV Notes and together with the April 2021 COPJV Notes, the 2021 COPJV Notes, to qualified institutional buyers in reliance on Section 4(a)(2) of the Securities Act. Interest of
the 2021 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 2021 COPJV
Notes cease to be rated investment grade, and the August 2021 COPJV Notes will be subject to an additional 2.0% of default interest during the continuance of an event of default. The August 2021COPJV Notes mature on August 17, 2026, unless
redeemed, purchased or prepaid prior to such date by COPJV in accordance with their terms.
80
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
The 2021 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 2021 COPJV Notes for general corporate purposes, including to make investments, repay existing debt and make permitted
distributions.
COPJV was in compliance with all covenants required by its financing arrangements as of March 31, 2022 and
December 31, 2021.
During the three months ended March 31, 2022, the Company sold investments with a cost of $546.7 for
proceeds of $554.0 to COPJV and recognized a net realized gain (loss) of $7.3 in connection with the transactions. As of March 31, 2022, $533.6 of these sales to COPJV are included in receivable for investments sold in the consolidated
statements of assets and liabilities.
As of March 31, 2022 and December 31, 2021, COPJV had total investments with a fair value
of $3,772.5 and $3,260.0, respectively. As of March 31, 2022 and December 31, 2021, COPJV had zero investments on non-accrual status.
Below is a summary of COPJVs portfolio, followed by a listing of the individual loans in COPJVs portfolio as of March 31,
2022 and December 31, 2021:
As of
March 31, 2022
(Unaudited)
December 31, 2021
Total debt investments (1)
$
3,332.1
$
2,954.2
Weighted average annual yield on accruing debt investments (2)
8.1
%
8.1
%
Number of portfolio companies in COPJV
110
95
Largest investment in a single portfolio
company (1)
$
131.6
$
131.5
Unfunded commitments (1)
$
0.7
$
1.9
(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.
81
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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 March 31, 2022 (in millions)
(Unaudited)
Company (a)
Footnotes
Industry
Interest
Rate (b)
Base
Rate
Floor
Maturity
Date
No.
Shares/
Principal
Amount (c)
Cost
Fair
Value (d)
Senior Secured LoansFirst Lien146.7%
48Forty Solutions LLC
(e)(o)
Commercial &
Professional
Services
SF+575
1.0
%
11/30/2026
$
19.5
$
19.3
$
19.3
Accuride Corp
(i)(j)
Capital Goods
L+525
1.0
%
11/17/2023
20.9
20.3
19.9
Advania Sverige AB
(e)(o)
Software &
Services
SR+610,
0.0% PIK
(3.3% Max
PIK)
0.0
%
4/28/2028
SEK
588.0
66.5
61.6
Advania Sverige AB
(e)(o)
Software &
Services
R+610,
0.0% PIK
(3.3% Max
PIK)
0.0
%
4/28/2028
ISK
1,644.9
12.8
12.7
Affordable Care Inc
(e)(h)(i)(o)
Health Care
Equipment &
Services
L+550,
0.0% PIK
(1.3% Max
PIK)
0.8
%
8/2/2028
$
76.7
76.3
76.2
Alacrity Solutions Group LLC
(e)(o)
Insurance
L+525
0.8
%
12/22/2028
20.8
20.4
20.4
Alera Group Intermediate Holdings Inc
(e)(k)(o)
Insurance
L+550
0.8
%
10/2/2028
32.5
32.1
32.0
Alstom SA
(k)
Transportation
L+550,
2.5% PIK
(2.5% Max
PIK)
1.0
%
8/29/2023
6.2
5.4
5.0
American Vision Partners
(e)(o)
Health Care
Equipment &
Services
L+575
0.8
%
9/30/2027
19.7
19.5
19.5
Ammeraal Beltech Holding BV
(h)(k)
Capital Goods
E+350
0.0
%
7/30/2025
4.8
4.7
5.2
Apex Group Limited
(h)
Diversified
Financials
L+375
0.5
%
7/27/2028
$
4.2
4.2
4.2
Apex Group Limited
(h)
Diversified
Financials
E+400
0.0
%
7/27/2028
1.6
1.9
1.8
Arcfield Acquisition Corp
(e)(o)
Capital Goods
L+575
0.8
%
3/10/2028
$
8.1
8.0
8.0
Arcos LLC/VA
(e)(h)(j)
Software &
Services
L+575
1.0
%
3/31/2028
22.4
22.2
22.0
Ardonagh Group Ltd
(e)(i)
Insurance
SA+700
0.8
%
7/14/2026
£
3.8
4.7
5.0
Ardonagh Group Ltd
(e)(i)
Insurance
E+700
1.0
%
7/14/2026
0.5
0.5
0.5
Ardonagh Group Ltd
(e)(j)(k)(o)
Insurance
L+575
0.8
%
7/14/2026
$
54.8
54.2
53.8
82
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Arrotex Australia Group Pty Ltd
(e)(j)(k)(o)
Pharmaceuticals,
Biotechnology &
Life Sciences
B+525
1.0
%
7/10/2024
A$
109.4
$
73.8
$
81.9
Arrotex Australia Group Pty Ltd
(e)(j)(k)(o)
Pharmaceuticals,
Biotechnology &
Life Sciences
B+525
1.0
%
7/10/2024
8.0
5.7
6.0
Barbri Inc
(e)(h)(i)
Consumer
Services
L+575
0.8
%
4/28/2028
$
47.6
47.6
47.4
BearCom Acquisition Corp
(e)(j)
Technology
Hardware &
Equipment
C+550
1.0
%
1/5/2024
C$
1.3
1.0
1.0
BearCom Acquisition Corp
(e)(j)
Technology
Hardware &
Equipment
L+600
1.0
%
7/5/2024
$
2.2
2.2
2.1
BearCom Acquisition Corp
(e)(j)
Technology
Hardware &
Equipment
C+550
1.0
%
7/5/2024
C$
14.4
10.5
10.9
BearCom Acquisition Corp
(e)(f)
Technology
Hardware &
Equipment
C+550
1.0
%
1/5/2024
Belk Inc
Retailing
L+750
1.0
%
7/31/2025
$
0.6
0.6
0.6
Belk Inc
Retailing
5.0%, 8.0%
PIK (8.0%
Max PIK)
7/31/2025
2.9
1.6
1.9
BGB Group LLC
(e)(h)(i)(o)
Media &
Entertainment
L+575
1.0
%
8/16/2027
54.8
54.3
54.0
Big Bus Tours Ltd
(e)(j)
Consumer
Services
L+850 PIK
(L+850 Max
PIK)
1.0
%
3/15/2024
16.8
16.8
11.1
Big Bus Tours Ltd
(e)(j)
Consumer
Services
E+850 PIK
(E+850 Max
PIK)
1.0
%
3/15/2024
11.8
13.2
8.6
Bugaboo International BV
(e)(h)(i)
Consumer
Durables &
Apparel
E+700, 0.0%
PIK (7.8%
Max PIK)
0.0
%
3/20/2025
35.0
40.9
38.8
Caprock Midstream LLC
(i)
Energy
L+475
0.0
%
11/3/2025
$
13.2
13.0
13.2
CSafe Global
(e)(h)(i)(k)
Capital Goods
L+625
0.8
%
12/23/2027
59.8
59.7
60.0
CSafe Global
(e)(h)
Capital Goods
L+625
0.8
%
8/13/2028
17.4
17.4
17.4
Cubic Corp
(i)
Software &
Services
L+425
0.8
%
5/25/2028
9.1
9.2
9.1
Eagleclaw Midstream Ventures LLC
(k)
Energy
L+425
1.0
%
6/24/2024
11.1
10.6
11.1
EIF Van Hook Holdings LLC
(i)(k)
Energy
L+525
0.0
%
9/5/2024
8.0
7.7
7.8
Encora Digital Inc
(e)(o)
Software &
Services
L+550, 0.0%
PIK (2.4%
Max PIK)
0.5
%
12/13/2028
16.3
15.9
15.9
Entertainment Benefits Group LLC
(e)(k)
Media &
Entertainment
L+575
1.0
%
9/30/2025
2.6
2.6
2.6
83
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Follett Software Co
(e)(h)(i)
Software &
Services
L+575
0.8
%
8/31/2028
37.8
$
37.4
$
37.5
Frontline Technologies Group LLC
(e)(i)(o)
Software &
Services
L+525
1.0
%
9/18/2023
36.2
36.2
36.2
Galaxy Universal LLC
(e)(h)
Consumer
Durables &
Apparel
L+500
1.0
%
11/12/2026
10.2
10.2
10.2
Galway Partners Holdings LLC
(e)(k)(o)
Insurance
L+525, 0.0%
PIK (1.3%
Max PIK)
0.8
%
9/29/2028
37.2
36.4
36.3
General Datatech LP
(e)(j)
Software &
Services
L+625
1.0
%
6/18/2027
10.1
10.0
9.8
Greystone Equity Member Corp
(e)
Diversified
Financials
L+725
3.8
%
4/1/2026
30.2
30.0
29.1
HealthChannels LLC
(j)
Health Care
Equipment &
Services
L+450
0.0
%
4/3/2025
$
15.5
15.4
14.2
Hermes UK Ltd
(e)(k)
Transportation
SA+650
0.0
%
11/30/2027
£
14.7
19.5
18.6
Higginbotham Insurance Agency Inc
(e)(h)(i)
Insurance
L+550
0.8
%
11/25/2026
$
37.9
38.3
38.6
Industria Chimica Emiliana Srl
(e)(j)(k)(o)
Pharmaceuticals,
Biotechnology &
Life Sciences
E+725
0.0
%
9/27/2026
113.9
125.2
125.2
Insight Global LLC
(e)(h)(i)(o)
Commercial &
Professional
Services
L+600
0.8
%
9/22/2028
$
64.2
63.3
63.0
KBP Investments LLC
(e)(h)(i)
Food & Staples
Retailing
L+500
0.8
%
5/26/2027
23.7
23.5
23.3
Kellermeyer Bergensons Services LLC
(e)(i)(j)
Commercial &
Professional
Services
L+600
1.0
%
11/7/2026
29.4
28.1
29.2
Kettle Cuisine LLC
(j)
Food,
Beverage &
Tobacco
L+375
1.0
%
8/25/2025
16.4
16.4
15.6
Lakefield Veterinary Group
(e)(o)
Health Care
Equipment &
Services
L+550
0.8
%
11/23/2028
27.3
26.9
26.7
Lakeview Farms Inc
(e)(j)
Food,
Beverage &
Tobacco
L+625
1.0
%
6/10/2027
15.7
15.6
15.5
Lexitas Inc
(e)(h)
Commercial &
Professional
Services
L+600
1.0
%
11/14/2025
18.6
18.6
18.8
Lionbridge Technologies Inc
(e)(i)(j)
Consumer
Services
L+700
1.0
%
12/29/2025
27.9
27.3
28.3
Lipari Foods LLC
(e)(k)
Food & Staples
Retailing
L+575
1.0
%
1/6/2025
65.3
65.3
65.3
Lloyds Register Quality Assurance Ltd
(e)(i)(o)
Consumer
Services
E+600, 0.0%
PIK (6.3%
Max PIK)
0.0
%
12/2/2028
44.3
48.7
47.5
84
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Med-Metrix
(e)(o)
Software &
Services
L+600
1.0
%
9/15/2027
$
12.0
$
11.9
$
12.0
Monitronics International Inc
(h)(i)(k)
Commercial &
Professional
Services
L+600
1.5
%
7/3/2024
35.5
33.1
35.6
Motion Recruitment Partners LLC
(e)(h)(j)
Commercial &
Professional
Services
L+650
1.0
%
12/22/2025
25.0
24.7
25.0
New Era Technology Inc
(e)(j)
Software &
Services
L+625
1.0
%
10/31/2026
10.0
10.0
10.0
Novotech Pty Ltd
(e)(k)(o)
Health Care
Equipment &
Services
SF+575
0.5
%
1/13/2028
24.4
23.9
23.9
Novotech Pty Ltd
(e)(k)(o)
Health Care
Equipment &
Services
B+575
0.5
%
1/13/2028
A$
33.7
24.8
24.7
One Call Care Management Inc
(h)
Health Care
Equipment &
Services
L+550
0.8
%
4/22/2027
$
5.0
5.0
4.7
Ontic Engineering & Manufacturing Inc
(h)
Capital Goods
L+400
0.0
%
10/30/2026
2.1
1.9
2.1
Parata Systems
(e)(h)(i)
Health Care
Equipment &
Services
L+575
1.0
%
6/30/2027
57.7
57.6
57.7
Parts Town LLC
(e)(o)
Retailing
L+550
0.8
%
11/1/2028
19.8
19.4
19.6
Precision Global Corp
(e)(j)
Materials
L+475
1.0
%
8/3/2024
9.0
8.7
8.6
Premium Credit Ltd
(e)(h)(i)(k)
Diversified
Financials
SA+650
0.0
%
1/16/2026
£
49.4
64.0
64.9
Pretium Packaging LLC
(j)
Household &
Personal
Products
L+400
0.5
%
10/2/2028
$
1.6
1.6
1.6
Project Marron
(e)(h)(j)
Consumer
Services
B+625
0.5
%
7/2/2025
A$
66.8
46.2
47.2
Project Marron
(e)(i)(j)
Consumer
Services
C+625
0.5
%
7/2/2025
C$
52.5
39.9
39.6
Pure Fishing Inc
(i)
Consumer
Durables &
Apparel
L+450
0.0
%
12/22/2025
$
9.9
9.8
9.4
Qdoba Restaurant Corp
(h)(k)
Consumer
Services
L+700
1.0
%
3/21/2025
3.5
3.3
3.4
Reliant Rehab Hospital Cincinnati LLC
(e)(j)(o)
Health Care
Equipment &
Services
L+625
0.0
%
2/28/2026
34.1
33.1
33.0
Revere Superior Holdings Inc
(e)(k)
Software &
Services
L+575
1.0
%
9/30/2026
19.7
19.7
19.9
Rise Baking Company
(e)(k)
Food,
Beverage &
Tobacco
L+625
1.0
%
8/13/2027
1.2
1.2
1.2
85
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Rise Baking Company
(e)(j)(k)
Food,
Beverage &
Tobacco
L+625
1.0
%
8/13/2027
30.6
$
30.0
$
29.0
Rise Baking Company
(e)(f)
Food,
Beverage &
Tobacco
L+625
1.0
%
8/13/2027
0.7
0.7
0.7
RSC Insurance Brokerage Inc
(e)(k)
Insurance
L+550
0.8
%
10/30/2026
19.0
18.9
19.1
Safe-Guard Products International LLC
(e)(i)(j)(k)
Diversified
Financials
L+500
0.5
%
1/27/2027
75.5
76.0
75.6
SAMBA Safety Inc
(e)(h)(j)
Software &
Services
L+575
1.0
%
9/1/2027
27.3
27.0
27.1
SavATree LLC
(e)(j)(k)
Consumer
Services
L+550
0.8
%
10/12/2028
39.9
39.6
39.6
Sequa Corp
(h)(j)(k)
Capital Goods
L+675, 0.0%
PIK (1.0%
Max PIK)
1.0
%
11/28/2023
$
45.4
44.0
45.6
SIRVA Worldwide Inc
(i)
Commercial &
Professional
Services
L+550
0.0
%
8/4/2025
7.0
6.7
6.5
SitusAMC Holdings Corp
(e)(o)
Real Estate
L+575
0.8
%
12/22/2027
18.8
18.5
18.5
Staples Canada
(e)(h)(i)(j)(k)
Retailing
C+700
1.0
%
9/12/2024
C$
83.8
64.5
69.1
Summit Interconnect Inc
(e)(o)
Capital Goods
L+600
1.0
%
9/22/2028
$
19.7
19.4
19.3
Time Manufacturing Co
(e)(h)(i)
Capital Goods
E+650
0.8
%
12/1/2027
29.5
32.6
31.8
Total Safety US Inc
(h)(i)
Capital Goods
L+600
1.0
%
8/18/2025
$
11.7
10.3
11.4
Transaction Services Group Ltd
(e)(j)(k)(n)(o)
Software &
Services
B+650
0.0
%
10/15/2026
A$
162.0
111.0
117.9
West Corp
(i)
Software &
Services
L+400
1.0
%
10/10/2024
$
12.1
11.9
11.1
West Corp
(i)
Software &
Services
L+350
1.0
%
10/10/2024
2.5
2.5
2.3
Woolpert Inc
(e)(h)(i)(j)
Capital Goods
L+600
1.0
%
4/5/2028
53.4
52.9
53.9
Yak Access LLC
(n)
Capital Goods
L+500
0.0
%
7/11/2025
0.8
0.6
0.7
Total Senior Secured LoansFirst Lien
2,476.5
2,480.7
Unfunded Loan Commitments
(0.7
)
(0.7
)
Net Senior Secured LoansFirst Lien
2,475.8
2,480.0
Senior Secured LoansSecond Lien29.4%
Access CIG LLC
(h)(i)
Commercial &
Professional
Services
L+775
0.0
%
2/27/2026
2.5
2.2
2.5
Ammeraal Beltech Holding BV
(e)(k)(o)
Capital Goods
L+775
0.0
%
9/12/2026
81.5
79.9
79.6
Apex Group Limited
(e)(h)(i)(o)
Diversified
Financials
L+675
0.5
%
7/27/2029
40.0
39.6
39.7
EaglePicher Technologies LLC
(h)
Capital Goods
L+725
0.0
%
3/8/2026
0.4
0.4
0.4
86
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Excelitas Technologies Corp
(h)(i)(j)
Technology
Hardware &
Equipment
L+750
1.0
%
12/1/2025
22.6
$
19.9
$
22.5
Misys Ltd
(h)(i)(k)(o)
Software &
Services
L+725
1.0
%
6/13/2025
46.6
44.3
46.0
NEP Broadcasting LLC
(i)
Media &
Entertainment
L+700
0.0
%
10/19/2026
6.8
6.7
6.6
OEConnection LLC
(e)(h)(i)(j)
Software &
Services
L+700
0.5
%
9/25/2027
50.0
50.0
48.8
Paradigm Acquisition Corp
(h)(k)
Health Care
Equipment &
Services
L+750
0.0
%
10/26/2026
2.5
2.5
2.5
Pretium Packaging LLC
(e)(h)(i)(j)
Household &
Personal
Products
L+675
0.5
%
10/1/2029
39.9
39.7
39.4
Pure Fishing Inc
(e)(k)
Consumer
Durables &
Apparel
L+838
1.0
%
12/21/2026
26.5
23.9
25.1
Sequa Corp
(i)(k)
Capital Goods
L+1,075,
0.0% PIK
(6.8% Max
PIK)
1.0
%
4/28/2024
39.1
34.3
38.9
SIRVA Worldwide Inc
(j)
Commercial &
Professional
Services
L+950
0.0
%
8/3/2026
3.8
3.1
3.2
Valeo Foods Group Ltd
(e)(h)
Food,
Beverage &
Tobacco
SA+800
0.0
%
10/1/2029
£
9.3
11.8
11.8
Watchfire Enterprises Inc
(e)(j)
Technology
Hardware &
Equipment
L+800
1.0
%
10/2/2024
$
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
%
9/23/2027
120.5
131.6
121.1
Total Senior Secured LoansSecond Lien
499.2
497.4
Other Senior Secured Debt1.3%
One Call Care Management Inc
(e)
Health Care
Equipment &
Services
8.5% PIK
(8.5% Max
PIK)
11/1/2028
$
23.5
22.9
21.2
Total Other Senior Secured Debt
22.9
21.2
Asset Based Finance35.9%
Abacus JV, Private Equity
(e)
Insurance
31,916,927
32.7
36.1
Altavair AirFinance, Private Equity
(e)
Capital Goods
36,500,000
43.0
44.8
GA Capital Specialty Lending Fund, Limited Partnership Interest
(e)(n)
Diversified
Financials
$
1.0
4.6
87
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Global Lending Services LLC, Private Equity
(e)(n)
Diversified
Financials
3,545,098
$
3.5
$
4.3
Global Lending Services LLC, Private Equity
(e)(p)
Diversified
Financials
20,650,000
27.1
27.1
Home Partners JV, Common Stock
(e)
Real Estate
14,241,634
21.4
40.4
Home Partners JV, Structured Mezzanine
(e)
Real Estate
11.0%
PIK (11.0%
Max PIK)
3/25/2029
$
38.4
38.4
38.4
KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest
(e)(n)(p)
Capital
Goods
19,642,734
24.4
16.6
Lenovo Group Ltd, Structured Mezzanine
(e)(n)
Technology
Hardware &
Equipment
7.8%
9/22/2024
6.9
8.1
7.7
Lenovo Group Ltd, Structured Mezzanine
(e)(n)
Technology
Hardware &
Equipment
7.8%
9/22/2024
$
10.7
10.7
10.7
Lenovo Group Ltd, Structured Mezzanine
(e)(n)
Technology
Hardware &
Equipment
11.8%
9/22/2024
4.8
5.6
5.3
Lenovo Group Ltd, Structured Mezzanine
(e)(n)
Technology
Hardware &
Equipment
11.8%
9/22/2024
£
1.3
1.8
1.7
Lenovo Group Ltd, Structured Mezzanine
(e)(n)
Technology
Hardware &
Equipment
7.8%
9/22/2024
£
1.9
2.6
2.5
Lenovo Group Ltd, Structured Mezzanine
(e)(n)
Technology
Hardware &
Equipment
11.8%
9/22/2024
$
7.4
7.4
7.4
Luxembourg Life FundAbsolute Return Fund I, 1L Term Loan
(e)(h)(n)
Insurance
L+750
1.5
%
2/27/2025
$
25.3
25.4
25.5
Luxembourg Life FundAbsolute Return Fund III, Term Loan
(e)(h)(k)(n)
Insurance
L+925
0.0
%
5/27/2026
$
57.4
56.9
58.8
Luxembourg Life FundLong Term Growth Fund, Term Loan
(e)(h)(i)(k)(n)
Insurance
L+925
0.0
%
4/1/2023
$
94.6
94.2
95.5
Music IP, Private Equity
(e)
Media &
Entertainment
19,625,000
22.9
22.9
My Community Homes SFR PropCo 2, Private Equity
(e)(p)
Real Estate
35,000,000
35.0
35.0
NewStar Clarendon 2014-1A Class D
(e)(k)(n)
Diversified
Financials
25.2%
1/25/2027
$
30.0
9.3
15.0
Pretium Partners LLC P1, Structured Mezzanine
(e)(h)(i)
Real Estate
2.8%, 5.3%
PIK (5.3%
Max PIK)
10/22/2026
$
26.3
25.9
26.3
Pretium Partners LLC P2, Private Equity
(e)(p)
Real Estate
16,772,368
16.2
15.1
88
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Roemanu LLC (FKA Toorak Capital Partners LLC), Private Equity
(e)
Real Estate
40,000,000
$
50.2
$
50.0
Sealane Trade Finance
(e)(m)
Banks
L+375
0.0
%
5/8/2023
$
5.0
5.0
5.0
Sealane Trade Finance
(e)(m)
Banks
L+963
0.0
%
5/8/2023
$
11.2
11.2
11.2
Total Asset Based Finance
578.9
607.9
Equity/Other9.8%
Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock
(e)(l)(p)
Energy
13,556
3.6
4.8
Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim
(e)(l)(p)
Energy
115,178,571
30.5
40.4
Belk Inc, Common Stock
(e)(p)
Retailing
381
Misys Ltd, Preferred Stock
(e)
Software &
Services
L+1,025
PIK
(L+1,025
Max PIK)
23,400,000
22.9
22.9
One Call Care Management Inc, Common Stock
(e)(p)
Health Care
Equipment &
Services
34,873
2.2
2.3
One Call Care Management Inc, Preferred Stock A
(e)(p)
Health Care
Equipment &
Services
371,993
23.7
25.0
One Call Care Management Inc, Preferred Stock B
(e)
Health Care
Equipment &
Services
9.0% PIK
(9.0% Max
PIK)
10/25/2029
7,672,346
8.8
7.7
Pure Gym Ltd, Private Equity
(e)(p)
Consumer
Services
30,218,000
39.4
40.4
Zeta Interactive Holdings Corp, Common Stock
(k)(p)
Software &
Services
1,766,696
15.1
22.5
Total Equity/Other
146.2
166.0
TOTAL INVESTMENTS223.1%
$
3,723.0
$
3,772.5
Derivative Instruments(0.3)%
Foreign currency forward contracts
$
(4.4
)
(a)
Security may be an obligation of one or more entities affiliated with the named company.
(b)
Certain variable rate securities in the Companys portfolio bear interest at a rate determined by a
publicly disclosed base rate plus a basis point spread. As of March 31, 2022, the three-month London Interbank Offered Rate, or LIBOR or L, was 0.96%, the Euro Interbank Offered Rate, or EURIBOR, was (0.46)%, Canadian Dollar Offer
Rate, or CDOR was 1.26%, the Australian Bank Bill Swap Bid Rate, or BBSY, or B, was 0.28%, the Reykjavik Interbank Offered Rate, or REIBOR, was 3.61%, the Stockholm Interbank
89
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
Offered Rate, or STIBOR or SR, was 0.06%, the Sterling Overnight Index Average, or SONIA, was 0.69%, the Secured Overnight Financing Rate, or SOFR, was 0.29% and the U.S. Prime
Lending Rate, or Prime, was 3.50%. 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 Companys 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)
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.
(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 Bank.
(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 Bank.
(o)
Security or portion thereof held within Magnolia Funding LLC.
(p)
Security is non-income producing.
90
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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 LoansFirst Lien135.2%
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
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
91
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
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
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
92
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
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
Lloyds 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
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
93
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
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
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
94
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Yak Access LLC
(n)
Capital Goods
L+500
0.0
%
7/11/25
0.8
$
0.6
$
0.7
Total Senior Secured LoansFirst Lien
2,136.4
2,159.4
Unfunded Loan Commitments
(1.9
)
(1.9
)
Net Senior Secured LoansFirst Lien
2,134.5
2,157.5
Senior Secured LoansSecond Lien31.5%
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
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
95
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
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 LoansSecond Lien
491.3
502.4
Other Senior Secured Debt1.5%
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 Finance31.0%
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
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
96
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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)
Luxembourg Life FundAbsolute 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 FundAbsolute 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 FundLong 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
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/Other5.1%
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 INVESTMENTS204.3%
$
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.
97
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
(b)
Certain variable rate securities in the Companys 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 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 Companys 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.
Below is selected balance sheet information for COPJV as of March 31, 2022 and December 31, 2021:
As of
March 31, 2022
(Unaudited)
December 31, 2021
Selected Balance Sheet Information
Total investments, at fair value
$
3,772.5
$
3,260.0
Cash and other assets
302.5
414.3
Total assets
4,075.0
3,674.3
Debt
1,669.0
1,442.0
Other liabilities
715.0
636.7
Total liabilities
2,384.0
2,078.7
Members equity
$
1,691.0
$
1,595.6
98
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 6. Investment
Portfolio (continued)
Below is selected statement of operations information for COPJV for the three months ended
March 31, 2022 and 2021:
Three Months Ended
March 31,
2022
2021
Selected Statement of Operations Information
Total investment income
$
60.9
$
36.1
Expenses
Interest expense
13.6
6.0
Custodian and accounting fees
0.4
0.1
Administrative services
2.4
1.0
Professional services
0.2
0.1
Other
0.1
0.1
Total expenses
16.7
7.3
Net investment income
44.2
28.8
Net realized and unrealized gain (loss)
1.2
18.6
Net increase in net assets resulting from operations
$
45.4
$
47.4
Note 7. Financial Instruments
The following is a summary of the fair value and location of the Companys derivative instruments in the consolidated balance sheets held
as of March 31, 2022 and December 31, 2021:
Fair Value
Derivative Instrument
Statement Location
March 31, 2022
(Unaudited)
December 31, 2021
Foreign currency forward contracts
Unrealized appreciation on foreign currency forward contracts
$
10
$9
Foreign currency forward contracts
Unrealized depreciation on foreign currency forward contracts
(1)
(1)
Total
$
9
$
8
99
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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 three months ended March 31, 2022 and 2021 are in the following locations in the consolidated statements of operations:
Net Realized Gains (Losses)
Three Months Ended March 31,
Derivative Instrument
Statement Location
2022
2021
Foreign currency forward contracts
Net realized gain (loss) on foreign currency forward contracts
$
5
$
Total
$
5
$
Net Unrealized Gains (Losses)
Three Months Ended March 31,
Derivative Instrument
Statement Location
2022
2021
Foreign currency forward contracts
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts
$1
$1
Total
$1
$1
100
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 7. Financial
Instruments (continued)
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 Companys unrealized appreciation and depreciation on derivative instruments are reported as gross assets and liabilities, respectively, in the consolidated balance
sheets. The following tables present the Companys 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 March 31, 2022 and December 31, 2021:
As of March 31, 2022 (Unaudited)
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
$
10
$
(1
)
$
$
$
9
Total
$
10
$
(1
)
$
$
$
9
Counterparty
Derivative
Liabilities
Subject to
Master Netting
Agreement
Derivatives
Available for
Offset
Non-cash
Collateral
Pledged (1)
Cash Collateral
Pledged (1)
Net Amount of
Derivative
Liabilities (3)
JP Morgan Chase Bank
$
(1
)
$
1
$
$
$
Total
$
(1
)
$
1
$
$
$
As of 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
Pledged (1)
Cash Collateral
Pledged (1)
Net Amount of
Derivative
Liabilities (3)
JP Morgan Chase Bank
$
(1
)
$
1
$
$
$
Total
$
(1
)
$
1
$
$
$
(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.
101
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FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 7. Financial
Instruments (continued)
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 Companys 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 three months ended
March 31, 2022 and 2021 was $232.2 and $65.0, respectively.
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 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 instruments categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the
fair value measurement.
102
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 8. Fair Value of Financial
Instruments (continued)
As of March 31, 2022 and December 31, 2021, the Companys investments were
categorized as follows in the fair value hierarchy:
Valuation Inputs
March 31, 2022
(Unaudited)
December 31, 2021
Level 1Price quotations in active markets
$
46
$
30
Level 2Significant other observable inputs
738
703
Level 3Significant unobservable inputs
14,290
13,972
Investments measured at net asset
value (1)
1,480
1,396
$
16,554
$
16,101
(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 March 31, 2022 and December 31, 2021.
The Companys 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 borrowers 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 Companys 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 Companys 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 investments. Based on the results of the benchmark analysis and the experience of the Companys management in purchasing and selling these
investments, the Company believes that these prices are reliable indicators of fair value. The valuation committee of the Companys board of directors, or 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 Companys valuation policy.
103
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 8. Fair Value of Financial
Instruments (continued)
The following is a reconciliation for the three months ended March 31, 2022 and 2021 of
investments for which significant unobservable inputs (Level 3) were used in determining fair value:
For the Three Months Ended March 31, 2022
Senior Secured
LoansFirst
Lien
Senior Secured
LoansSecond
Lien
Other
Senior
Secured
Debt
Subordinated
Debt
Asset
Based
Finance
Equity/
Other
Total
Fair value at beginning of period
$
9,542
$
1,205
$
29
$
74
$
2,245
$
877
$
13,972
Accretion of discount (amortization of premium)
22
2
3
27
Net realized gain (loss)
(71
)
(4
)
16
27
(32
)
Net change in unrealized appreciation (depreciation)
2
(37
)
(2
)
(40
)
(26
)
129
26
Purchases
1,166
4
556
330
2,056
Paid-in-kind
interest
10
11
11
32
Sales and repayments
(1,006
)
(97
)
(627
)
(61
)
(1,791
)
Transfers into Level 3
Transfers out of Level 3
Fair value at end of period
$
9,665
$
1,073
$
27
$
34
$
2,178
$
1,313
$
14,290
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
$
(71)
$
(37)
$
(2)
$
(40)
$
(17)
$
161
$
(6
)
For the Three Months Ended March 31, 2021
Senior Secured
LoansFirst
Lien
Senior Secured
LoansSecond
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)
1
3
4
Net realized gain (loss)
3
(87
)
(23
)
1
(20
)
(126
)
Net change in unrealized appreciation (depreciation)
(1
)
94
24
(4
)
5
92
210
Purchases
270
77
4
40
391
Paid-in-kind
interest
3
2
6
4
15
Sales and repayments
(467
)
(256
)
(1
)
(90
)
(55
)
(8
)
(877
)
Transfers into Level 3
3
3
Transfers out of Level 3
Fair value at end of period
$
3,085
$
695
$
36
$
62
$
948
$
601
$
5,427
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
$
(7
)
$
10
$
$
(4
)
$
8
$
72
$
79
104
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited 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 March 31, 2022 and December 31, 2021 were as follows:
Type of Investment
Fair Value at
March 31, 2022
(Unaudited)
Valuation
Technique (1)
Unobservable
Input
Range
(Weighted Average)
Impact to
Valuation from
an
Increase in
Input (2)
Senior Debt
$
9,404
Discounted Cash Flow
Discount Rate
4.4% - 40.6%
(9.0%)
Decrease
693
Cost
613
Waterfall
EBITDA Multiple
1.0x - 11.3x
(6.9x)
Increase
55
Other (3)
Subordinated Debt
21
Discounted Cash Flow
Discount Rate
10.5% - 10.5%
(10.5%)
Decrease
13
Waterfall
EBITDA Multiple
6.8x - 6.8x
(6.8x)
Increase
Asset Based Finance
920
Waterfall
EBITDA Multiple
1.0x - 22.5x
(3.0x)
Increase
913
Discounted Cash Flow
Discount Rate
4.2% - 16.6%
(9.8%)
Decrease
270
Cost
71
Other (3)
4
Indicative Dealer Quotes
50.1% - 50.1%
(50.1%)
Increase
Equity/Other
670
Waterfall
EBITDA Multiple
0.1x - 16.5x
(8.0x)
Increase
329
Cost
193
Other (3)
116
Discounted Cash Flow
Discount Rate
10.0% - 25.0%
(12.8%)
Decrease
5
Option Pricing Model
Equity Illiquidity Discount
65.0% - 65.0%
(65.0%)
Decrease
Total
$
14,290
105
Table of Contents
FS KKR Capital Corp.
Notes to Unaudited Consolidated Financial Statements (continued)
(in millions, except share and per share amounts)
Note 8. Fair Value of Financial
Instruments (continued)
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
(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 f
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.