Q1 2026 FS KKR Capital Corp Earnings Call Transcript
Key Points
- FS KKR Capital Corp (FSK) announced a $150 million fixed price tender for its stock at a premium, indicating confidence in the company's undervaluation.
- A $300 million share repurchase program has been authorized, reflecting strong conviction in the efficiency of buybacks.
- KKR is making a $150 million investment into FSK through a convertible preferred security, providing additional liquidity.
- FSK's Board declared a second quarter distribution of $0.42 per share, consistent with its dividend policy.
- FSK's portfolio remains focused on senior secured investments, with 60% in first lien loans and 64% in senior secured debt.
- FS KKR Capital Corp (FSK) experienced a 9.9% decline in net asset value per share during the quarter.
- Nonaccrual investments increased to 8.1% of the portfolio on a cost basis, up from 5.5% in the previous quarter.
- The weighted average yield on accruing debt investments decreased by 30 basis points to 9.7%.
- FSK's total investment income decreased by $44 million compared to the previous quarter.
- The company is facing challenges with specific legacy investments, contributing to the NAV decline.
Good morning, ladies and gentlemen. Welcome to FS KKR Capital Corp's first-quarter 2026 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
At this time, Caitlin Welch from FS KKR Capital Corp, Investor Relations will proceed with introduction. Ms. Welch, you may begin.
Thank you. Good morning, and welcome to FS KKR Capital Corp's first-quarter 2026 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 this morning. 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 March 31, 2026.
The link to todayâs webcast and the presentation is available on For Investors
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