Q4 2025 FS KKR Capital Corp Earnings Call Transcript
Key Points
- FS KKR Capital Corp (FSK) originated $5.6 billion of predominantly first lien and asset-based finance investments in 2025, leveraging deep sponsor relationships.
- The company provided shareholders with $2.80 per share of total distributions, achieving this through a combination of quarterly base and supplemental distributions.
- FS KKR Capital Corp (FSK) optimized its capital structure by issuing $400 million of new unsecured notes and closing on a new $400 million bilateral lending facility.
- The company diversified its funding sources through two new middle market CLOs and enhanced its liquidity profile by amending its senior secured revolving credit facility.
- FS KKR Capital Corp (FSK) ended the quarter with approximately $3.8 billion of available liquidity, maintaining strong liquidity and balance sheet flexibility.
- FS KKR Capital Corp (FSK) experienced downward pressure on a few specific investments, resulting in a decline in net asset value.
- The company acknowledged higher nonaccrual assets than desired, impacting near to intermediate-term net investment income.
- FS KKR Capital Corp (FSK) faced challenges in certain legacy investments, including Production Resource Group, Medallia, Cuba Corp, and KBS.
- The company's net asset value per share declined by 5% to $20.89, primarily due to a $0.70 per share distribution and downward pressure on certain investments.
- FS KKR Capital Corp (FSK) added five investments to nonaccrual status during the fourth quarter, totaling $255 million of cost and $214 million of fair value.
Welcome to FS KKR Capital Corp's fourth quarter and full year 2025, earnings conference call. (Operator Instructions). Please note that the conference is being recorded. At this time, Anna Kleinhenn, Head of Investor Relations, will proceed with the introduction Mr. Kleinhenn, you may begin.
Thank you. Good morning, and welcome to FS KKR Capital Corp.'s fourth quarter and full year 2025 earnings conference call. Please note that FS KKR Capital Corp. may be referred to as FSK, the fund or the company throughout the call.
Today's conference call is being recorded, and an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued yesterday.
In addition, FSK has posted on its website a presentation containing supplemental financial information with respect to its portfolio and financial performance for the quarter ended December 31, 2025.
A link to today's webcast and the presentation is available on the
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