10-Q 1 d245484d10q.htm FORM 10-Q Form 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 SEPTEMBER 30, 2021

 

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)

Registrant’s 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. (Check one):

 

Large accelerated filer  ☒      Accelerated filer   ☐
Non-accelerated filer  ☐   (Do not check if a smaller reporting company)    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 issuer’s classes of common stock, as of the latest practicable date.

There were 284,965,668 shares of the registrant’s common stock outstanding as of November 5, 2021.

 

 

 


Table of Contents

TABLE OF CONTENTS

 

         Page  

PART I—FINANCIAL INFORMATION

 

ITEM 1.  

FINANCIAL STATEMENTS

     3  
 

Consolidated Balance Sheets as of September  30, 2021 (Unaudited) and December 31, 2020

     3  
 

Unaudited Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020

     4  
 

Unaudited Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 and 2020

     5  
 

Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020

     6  
 

Consolidated Schedules of Investments as of September  30, 2021 (Unaudited) and December 31, 2020

     8  
 

Notes to Unaudited Consolidated Financial Statements

     39  
ITEM 2.  

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF OPERATIONS

     85  
ITEM 3.  

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     100  
ITEM 4.  

CONTROLS AND PROCEDURES

     102  

PART II—OTHER INFORMATION

  
ITEM 1.  

LEGAL PROCEEDINGS

     103  
ITEM 1A.  

RISK FACTORS

     103  
ITEM 2.  

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

     103  
ITEM 3.  

DEFAULTS UPON SENIOR SECURITIES

     104  
ITEM 4.  

MINE SAFETY DISCLOSURES

     104  
ITEM 5.  

OTHER INFORMATION

     104  
ITEM 6.  

EXHIBITS

     104  
 

SIGNATURES

     114  


Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FS KKR Capital Corp.

Consolidated Balance Sheets

(in millions, except share and per share amounts)

 

 

 

     September 30, 2021
(Unaudited)
     December 31, 2020  

Assets

     

Investments, at fair value

     

Non-controlled/unaffiliated investments (amortized cost—$12,092 and $5,314, respectively)

   $ 12,279      $ 4,986

Non-controlled/affiliated investments (amortized cost—$901 and $629, respectively)

     871        534

Controlled/affiliated investments (amortized cost—$2,731 and $1,510, respectively)

     2,674        1,260
  

 

 

    

 

 

 

Total investments, at fair value (amortized cost—$15,724 and $7,453, respectively)

     15,824      6,780

Cash

     229      182

Foreign currency, at fair value (cost—$12 and $8, respectively)

     12      9

Receivable for investments sold and repaid

     365      173

Income receivable

     163      72

Unrealized appreciation on foreign currency forward contracts

     6      1

Deferred financing costs

     15      15

Deferred merger costs

     —          1

Prepaid expenses and other assets

     6      4
  

 

 

    

 

 

 

Total assets

   $ 16,620    $ 7,237
  

 

 

    

 

 

 

Liabilities

     

Payable for investments purchased

   $ 57    $ —    

Debt (net of deferred financing costs of $24 and $23, respectively)(1)

     8,492      3,997

Unrealized depreciation on foreign currency forward contracts

     1      3

Stockholder distributions payable

     186      74

Management fees payable

     58      25

Subordinated income incentive fees payable(2)

     20      —    

Administrative services expense payable

     6      2

Interest payable

     55      25

Other accrued expenses and liabilities

     9      15
  

 

 

    

 

 

 

Total liabilities

     8,884      4,141
  

 

 

    

 

 

 

Commitments and contingencies(3)

     

Stockholders’ equity

     

Preferred stock, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding

     —          —    

Common stock, $0.001 par value, 750,000,000 shares authorized, 285,076,619 and 123,755,965 shares issued and outstanding, respectively

     0      0

Capital in excess of par value

     7,507      3,866

Retained earnings (accumulated deficit)(4)

     229      (770
  

 

 

    

 

 

 

Total stockholders’ equity

     7,736      3,096
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 16,620    $ 7,237
  

 

 

    

 

 

 

Net asset value per share of common stock at period end

   $ 27.14    $ 25.02

 

(1)

See Note 9 for a discussion of the Company’s financing arrangements.

 

(2)

See Note 2 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.

 

(3)

See Note 10 for a discussion of the Company’s commitments and contingencies.

 

(4)

See Note 5 for a discussion of the sources of distributions paid by the Company.

See notes to unaudited consolidated financial statements.

 

3


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Operations

(in millions, except share and per share amounts)

 

 

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
         2021             2020             2021             2020      

Investment income

        

Interest income

   $ 219   $ 93   $ 414   $ 327

Paid-in-kind interest income

     16     11     35     31

Fee income

     29     3     62     21

Dividend and other income

     8       7     20       10

From non-controlled/affiliated investments:

        

Interest income

     8     3     12     8

Paid-in-kind interest income

     4     5     12     14

Fee income

     2     —         2     0

Dividend income

     0     0     0     0

From controlled/affiliated investments:

        

Interest income

     12     2     16     6

Paid-in-kind interest income

     15     1     23     3

Fee income

     0       —         1     —    

Dividend and other income

     47       22     120       56
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     360     147     717     476
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

        

Management fees

     58     24     113     80

Subordinated income incentive fees(1)

     35     —         43     —    

Administrative services expenses

     5     1     9     6

Accounting and administrative fees

     1     0     2     1

Interest expense(2)

     70     40     158     128

Other general and administrative expenses

     5     4     12     8
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     174     69     337     223

Incentive fee waiver(1)

     (15     —         (15     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net expenses

     159     69     322     223
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     201     78     395     253
  

 

 

   

 

 

   

 

 

   

 

 

 

Realized and unrealized gain/loss

        

Net realized gain (loss) on investments:

        

Non-controlled/unaffiliated investments

     60     (99     (22     (239

Non-controlled/affiliated investments

     139     (90     203     (129

Controlled/affiliated investments

     (2     (18     (58     (35

Net realized gain (loss) on foreign currency forward contracts

     0     0     0     0

Net realized gain (loss) on foreign currency

     (1     (2     (4     (5

Net change in unrealized appreciation (depreciation) on investments:

        

Non-controlled/unaffiliated investments

     (49     261     526       (114

Non-controlled/affiliated investments

     (104     27     65       (138

Controlled/affiliated investments

     11       68     193       (144

Net change in unrealized appreciation (depreciation) on foreign currency forward contracts

     5     (1     8     1

Net change in unrealized gain (loss) on foreign currency

     10     (14     28     2
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized and unrealized gain (loss)

   $ 69   $ 132   $ 939   $ (801
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ 270   $ 210   $ 1,334   $ (548
  

 

 

   

 

 

   

 

 

   

 

 

 

Per share information—basic and diluted

        

Net increase (decrease) in net assets resulting from operations (Earnings (Losses) per Share)

   $ 0.95   $ 1.70   $ 7.13   $ (4.40
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     285,124,920     123,755,965     187,003,417     124,470,122
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

See Note 2 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fee.

 

(2)

See Note 9 for a discussion of the Company’s financing arrangements.

See notes to unaudited consolidated financial statements.

 

4


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Changes in Net Assets

(in millions)

 

 

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
         2021             2020             2021             2020      

Operations

        

Net investment income (loss)

   $ 201   $ 78   $ 395   $ 253

Net realized gain (loss) on investments, foreign currency forward contracts and foreign currency

     196     (209     119     (408

Net change in unrealized appreciation (depreciation) on investments and foreign currency forward contracts(1)

     (137     355     792     (395

Net change in unrealized gain (loss) on foreign currency

     10     (14     28     2
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     270     210     1,334     (548
  

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder distributions(2)

        

Distributions to stockholders

     (186     (74     (335     (244
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in net assets resulting from stockholder distributions

     (186     (74     (335     (244
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital share transactions(3)

        

Issuance of common stock

     —         —         3,642     —    

Repurchases of common stock

     (1     —         (1     (47
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from capital share transactions

     (1     —         3,641     (47
  

 

 

   

 

 

   

 

 

   

 

 

 

Total increase (decrease) in net assets

     83     136     4,640     (839

Net assets at beginning of period

     7,653     2,891     3,096     3,866
  

 

 

   

 

 

   

 

 

   

 

 

 

Net assets at end of period

   $ 7,736   $ 3,027   $ 7,736   $ 3,027
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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 Company’s capital share transactions.

See notes to unaudited consolidated financial statements.

 

5


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Cash Flows

(in millions)

 

 

 

     Nine Months Ended
September 30,
 
         2021             2020      

Cash flows from operating activities

    

Net increase (decrease) in net assets resulting from operations

   $ 1,334   $ (548

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:

    

Purchases of investments(1)

     (4,528     (1,723

Paid-in-kind interest

     (67     (64

Proceeds from sales and repayments of investments

     3,720     1,706

Net realized (gain) loss on investments

     (123     403

Net change in unrealized (appreciation) depreciation on investments(2)

     (773     396

Net change in unrealized (appreciation) depreciation on foreign currency forward contracts

     (7     (1

Accretion of discount

     (46     (10

Amortization of deferred financing costs and discount

     7     8

Unrealized (gain)/loss on borrowings in foreign currency

     (5     (10

(Increase) decrease in receivable for investments sold and repaid

     (192     426

(Increase) decrease in income receivable

     (91     (11

(Increase) decrease in deferred merger costs

     1     —    

(Increase) decrease in prepaid expenses and other assets

     (2     —    

Increase (decrease) in payable for investments purchased

     57     (10

Increase (decrease) in management fees payable

     33     (6

Increase (decrease) in subordinated income incentive fees payable

     20     —    

Increase (decrease) in administrative services expense

     4     0

Increase (decrease) in interest payable

     30     10

Increase (decrease) in other accrued expenses and liabilities

     (6     (7

Cash acquired in merger

     293     —    

Other assets acquired from merger net of other assets, net of unrealized depreciation on derivatives

     17     —    

Merger costs capitalized into purchase price

     (8     —    

Mark-to-market of merged debt

     26     —    
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (306     559
  

 

 

   

 

 

 

Cash flows from financing activities

    

Repurchases of common stock

     (1     (47

Stockholder distributions

     (316     (266

Borrowings under financing arrangements(3)

     2,689     1,512

Repayments of financing arrangements(3)

     (2,009     (1,717

Deferred financing costs paid

     (7     (11
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     356       (529
  

 

 

   

 

 

 

Total increase (decrease) in cash

     50     30

Cash, and foreign currency at beginning of period

     191     106
  

 

 

   

 

 

 

Cash, and foreign currency at end of period

   $ 241   $ 136
  

 

 

   

 

 

 

Supplemental disclosure

    

Non-cash purchases of investments

   $ (198   $ (212
  

 

 

   

 

 

 

Non-cash sales of investments

   $ 198   $ 212
  

 

 

   

 

 

 

Local and excise taxes paid

   $ 9   $ 7
  

 

 

   

 

 

 

 

(1)

Excludes $7,227 of cost of investments acquired from the 2021 Merger.

 

(2)

Excludes $11 of unrealized depreciation on unfunded commitments acquired from the 2021 Merger.

 

(3)

Excludes $3,794 of debt assumed from the 2021 Merger. See Note 9 for a discussion of the Company’s financing arrangements. During the nine months ended September 30, 2021 and 2020, the Company paid $138 and $110, respectively, in interest expense on the financing arrangements.

See notes to unaudited consolidated financial statements.

 

6


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Cash Flows

(in millions)

Supplemental disclosure of non-cash operating and financing activities:

In connection with the 2021 Merger, the Company issued common stock of $3,650 and acquired investments at cost of $7,227 and other assets of $221 and assumed debt of $3,794 and other liabilities of $297.

See notes to unaudited consolidated financial statements.

 

7


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments

As of September 30, 2021

(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 Loans—First Lien—125.2%

                

5 Arch Income Fund 2 LLC

   (w)(y)(z)(q)(r)   Diversified Financials   9.0%     11/18/23   $ 111.1   $ 81.3   $ 78.1

ABB CONCISE Optical Group LLC

   (aa)(v)   Retailing   L+500   1.0%   6/15/23     0.7     0.7     0.7

Accuride Corp

   (aa)(l)(v)   Capital Goods   L+525   1.0%   11/17/23     30.0     28.6     29.1

Advanced Dermatology & Cosmetic Surgery

   (v)(m)(t)   Health Care Equipment & Services   L+625   1.0%   5/7/27     40.5     38.5     40.6

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     8.7     8.7     8.7

Advania Sverige AB

   (w)(v)   Software & Services   R+610, 0.0% PIK (2.0% Max PIK)   0.0%   3/30/28   ISK 1,345.8     9.9     10.3

Advania Sverige AB

   (w)(v)   Software & Services   SR+610   0.0%   4/1/28   SEK 629.4     67.7     72.0

Advania Sverige AB

   (w)(x)   Software & Services   SR+610   0.0%   4/1/28     304.1     37.5     37.6

Affordable Care Inc

   (v)(ac)   Health Care Equipment & Services   L+550, 0.0% PIK (1.3% Max PIK)   0.8%   8/2/28   $ 116.3     115.2     115.7

Affordable Care Inc

   (x)(ac)   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

   (x)(ac)   Health Care Equipment & Services   L+550, 0.0% PIK (1.3% Max PIK)   0.8%   8/2/28     43.5     43.5     43.2

Alera Group Intermediate Holdings Inc

   (v)   Insurance   L+550   0.8%   10/2/28     32.7     32.3     32.3

Alera Group Intermediate Holdings Inc

   (x)   Insurance   L+550   0.8%   10/2/28     9.3     9.2     9.2

American Tire Distributors Inc

   (aa)(v)   Automobiles & Components   L+600, 0.0% PIK (1.0% Max PIK)   1.0%   9/1/23     2.6     2.4     2.6

American Tire Distributors Inc

   (aa)(v)   Automobiles & Components   L+750, 0.0% PIK (1.5% Max PIK)   1.0%   9/2/24     43.2     40.3     43.3

American Vision Partners

   (i)(v)   Health Care Equipment & Services   L+575   0.8%   9/30/27     95.0     94.0     94.0

American Vision Partners

   (x)   Health Care Equipment & Services   L+575   0.8%   9/30/26     7.8     7.8     7.8

American Vision Partners

   (x)   Health Care Equipment & Services   L+575   0.8%   9/30/27     38.9     38.9     38.5

Amtek Global Technology Pte Ltd

   (ad)(w)(g)   Automobiles & Components   E+500 PIK (E+500 Max PIK)   0.0%   4/4/24   56.5     68.7     55.4

Apex Group Limited

   (aa)(w)(v)   Diversified Financials   L+375   0.5%   7/27/28   $ 4.2     4.2     4.2

Apex Group Limited

   (aa)(w)(v)   Diversified Financials   E+400   0.0%   7/27/28   1.6     1.9     1.9

Arcos LLC/VA

   (v)(m)   Software & Services   L+575   1.0%   3/31/28   $ 35.0     33.0     34.7

Arcos LLC/VA

   (x)   Software & Services   L+575   1.0%   4/20/27     4.5     4.5     4.5

Ardonagh Group Ltd

   (w)(v)   Insurance   L+725   0.8%   7/14/26   £ 0.8     1.0     1.1

Ardonagh Group Ltd

   (w)(x)   Insurance   L+600   1.0%   7/14/26     16.7     22.8     22.4

Ardonagh Group Ltd

   (w)(x)   Insurance   L+600   0.8%   7/14/26   $ 54.8     54.8     53.8

Arrotex Australia Group Pty Ltd

   (w)(v)   Pharmaceuticals, Biotechnology & Life Sciences   B+525   1.0%   7/10/24   A$ 42.6     30.3     30.8

Arrotex Australia Group Pty Ltd

   (w)(x)   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)     10/15/21   $ 0.3     0.2     0.3

ATX Networks Corp

   (w)(v)(s)(ad)   Capital Goods   L+750   1.0%   8/9/26     45.8     45.8     45.8

AxiomSL Ltd

   (f)(v)(m)(t)   Software & Services   L+600   1.0%   12/3/27     35.2     34.5     34.5

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)(v)(m)(t)   Consumer Services   L+575   0.8%   4/28/28     110.1     104.5     110.1

Barbri Inc

   (x)   Consumer Services   L+575   0.8%   4/28/28     30.2     30.2     30.3

Belk Inc

   (ac)(aa)(v)   Retailing   L+750   1.0%   7/31/25     21.9     21.7     22.1

Belk Inc

   (ac)(aa)(y)(z)(v)   Retailing   10.0%, 0.0% PIK (8.0% Max PIK)     7/31/25     65.6     38.1     50.9

BGB Group LLC

   (f)(i)(k)(l)(v)(t)   Media & Entertainment   L+575   1.0%   8/16/27     167.6     165.9     166.2

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     40.1     42.0

Borden (New Dairy Opco)

   (ac)(v)   Food, Beverage & Tobacco   L+250   1.0%   7/20/25     19.0     18.1     19.0

Borden Dairy Co

   (ac)(y)(z)(v)   Food, Beverage & Tobacco   L+825   1.0%   7/6/23     65.0     25.4     —  

 

See notes to unaudited consolidated financial statements.

 

8


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(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   $ 74.3

Cimarron Energy Inc

   (v)   Energy   L+900   1.0%   12/31/22     7.5     5.7     3.7

Constellis Holdings LLC

   (ac)(v)   Capital Goods   L+750   1.0%   3/27/24     15.0     13.9     15.0

Corsearch Intermediate Inc

   (v)(m)   Software & Services   L+550   1.0%   4/19/28     30.1     28.3     30.0

Corsearch Intermediate Inc

   (x)   Software & Services   L+550   1.0%   4/19/28     4.4     4.4     4.4

CSafe Global

   (f)(k)(l)(v)(m)(s)(t)   Capital Goods   L+625   1.0%   12/23/27     139.7     131.2     140.7

CSafe Global

   (v)   Capital Goods   L+625   1.0%   8/13/28     29.5     29.5     29.7

CSafe Global

   (x)   Capital Goods   L+625   1.0%   12/23/26     30.7     30.7     30.7

Dental Care Alliance Inc

   (f)(k)(v)(m)(t)   Health Care Equipment & Services   L+625   0.8%   3/12/27     94.9     90.5     94.2

Dental Care Alliance Inc

   (x)   Health Care Equipment & Services   L+625   0.8%   3/12/27     18.0     18.0     17.9

Distribution International Inc

   (aa)(v)   Retailing   L+575   1.0%   12/15/23     27.4     25.5     27.4

Entertainment Benefits Group LLC

   (v)   Media & Entertainment   L+575, 2.5% PIK (2.5% Max PIK)   1.0%   9/30/24     9.1     8.3     8.6

Entertainment Benefits Group LLC

   (v)   Media & Entertainment   L+575, 2.5% PIK (2.5% Max PIK)   1.0%   9/30/24     0.3     0.3     0.3

Entertainment Benefits Group LLC

   (f)(k)(l)(v)(m)   Media & Entertainment   L+575, 2.5% PIK (2.5% Max PIK)   1.0%   9/30/25     63.6     58.4     60.4

Entertainment Benefits Group LLC

   (x)   Media & Entertainment   L+575, 2.5% PIK (2.5% Max PIK)   1.0%   9/30/24     1.2     1.2     1.1

Fairway Group Holdings Corp

   (ac)(y)(z)(v)   Food & Staples Retailing   12.0% PIK (12.0% Max PIK)     11/27/23     11.7     1.0     0.6

Fairway Group Holdings Corp

   (ac)(y)(z)(v)   Food & Staples Retailing   10.0% PIK (10.0% Max PIK)     11/28/23     7.6     —       —  

FloWorks International LLC

   (i)(v)(m)   Capital Goods   L+700   1.0%   10/14/26     53.4     50.3     52.6

FloWorks International LLC

   (x)   Capital Goods   L+700   1.0%   10/14/26     21.5     21.5     21.2

Follett Software Co

   (v)   Software & Services   L+575   0.8%   8/31/27     4.2     4.2     4.2

Follett Software Co

   (f)(k)(l)(v)(t)   Software & Services   L+575   0.8%   8/31/28     112.6     111.5     111.5

Follett Software Co

   (x)   Software & Services   L+575   0.8%   8/31/27     5.6     5.6     5.6

Foundation Consumer Brands LLC

   (v)(m)   Pharmaceuticals, Biotechnology & Life Sciences   L+638   1.0%   2/12/27     102.3     98.2     104.3

Foundation Consumer Brands LLC

   (x)   Pharmaceuticals, Biotechnology & Life Sciences   L+638   1.0%   2/12/27     6.6     6.6     6.6

Frontline Technologies Group LLC

   (i)(v)(m)   Software & Services   L+575   1.0%   9/18/23     78.9     78.3     78.9

Frontline Technologies Group LLC

   (s)   Software & Services   L+575   1.0%   9/18/23     53.7     50.4     54.2

Frontline Technologies Group LLC

   (v)   Software & Services   L+575   1.0%   9/18/23     22.0     20.9     22.2

Galway Partners Holdings LLC

   (k)(l)(v)(t)   Insurance   L+525, 0.0% PIK (1.3% Max PIK)   0.8%   9/29/28     139.2     136.4     136.4

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     32.0     31.7     31.4

General Datatech LP

   (f)(k)(l)(v)(m)(t)   Software & Services   L+625   1.0%   6/18/27     180.4     178.6     179.2

Greystone Equity Member Corp

   (w)(v)   Diversified Financials   L+725   3.8%   4/1/26     194.8     182.3     193.8

Heniff Transportation Systems LLC

   (v)   Transportation   L+575   1.0%   12/3/24     6.5     6.2     6.1

Heniff Transportation Systems LLC

   (f)(i)(k)(l)(v)(m)   Transportation   L+575   1.0%   12/3/26     138.0     130.5     128.0

Heniff Transportation Systems LLC

   (v)   Transportation   L+625   1.0%   12/3/26     19.4     18.6     18.4

Heniff Transportation Systems LLC

   (x)   Transportation   L+575   1.0%   12/3/24     11.3     11.3     10.5

Hermes UK Ltd

   (w)(v)   Transportation   SA+650   0.0%   11/30/27   £ 14.7     19.7     19.2

hibu Inc

   (f)(k)(l)(v)(m)(t)   Commercial & Professional Services   L+625   1.0%   5/4/27   $ 102.2     97.0     102.6

Higginbotham Insurance Agency Inc

   (v)   Insurance   L+550   0.8%   11/25/26     60.8     57.3     61.4

Higginbotham Insurance Agency Inc

   (x)   Insurance   L+550   0.8%   11/25/26     2.6     2.6     2.6

HM Dunn Co Inc

   (ad)(v)   Capital Goods   L+600   1.0%   6/30/26     33.0     33.0     33.0

HM Dunn Co Inc

   (ad)(v)   Capital Goods   L+600   1.0%   6/30/26     2.0     2.0     2.0

Hudson Technologies Co

   (w)(v)   Commercial & Professional Services   L+1,025   1.0%   10/10/23     81.2     72.9     81.5

 

See notes to unaudited consolidated financial statements.

 

9


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes  

Industry

  Rate(b)   Floor(b)   Maturity   Principal
Amount(c)
    Amortized
Cost
    Fair
Value(d) 
 

Individual FoodService

   (v)   Capital Goods   L+625   1.0%   11/22/24   $ 0.2   $ 0.2   $ 0.2

Individual FoodService

   (v)(m)(s)   Capital Goods   L+625   1.0%   11/22/25     72.3     67.7     72.6

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   1.0%   11/22/25     3.3     3.3     3.3

Industria Chimica Emiliana Srl

   (w)(v)   Pharmaceuticals, Biotechnology & Life Sciences   E+725   0.0%   9/27/26   88.8     101.1     107.4

Industry City TI Lessor LP

   (v)(s)   Consumer Services   10.8%, 1.0% PIK (1.0% Max PIK)     6/30/26   $ 30.9     31.0     33.6

Insight Global LLC

   (i)(v)   Commercial & Professional Services   L+600   0.8%   9/22/28     268.6     265.9     265.9

Insight Global LLC

   (x)   Commercial & Professional Services   L+600   0.8%   9/22/27     21.1     21.1     21.1

J S Held LLC

   (f)(i)(v)(m)(s)   Insurance   L+550   1.0%   7/1/25     150.2     144.3     151.7

J S Held LLC

   (v)   Insurance   L+550   1.0%   7/1/25     8.2     8.2     8.4

J S Held LLC

   (x)   Insurance   L+550   1.0%   7/1/25     14.1     13.9     14.1

J S Held LLC

   (x)   Insurance   L+550   1.0%   7/1/25     24.1     24.1     24.6

Jarrow Formulas Inc

   (f)(i)(k)(l)(v)(m)(s)(t)   Household & Personal Products   L+625   1.0%   11/30/26     187.8     177.9     191.6

Karman Space Inc

   (v)(m)   Capital Goods   L+675   1.0%   12/21/25     92.9     89.2     94.0

Karman Space Inc

   (v)   Capital Goods   L+675   1.0%   12/21/25     1.9     1.7     1.9

Karman Space Inc

   (x)   Capital Goods   L+675   1.0%   12/21/25     3.6     3.6     3.6

KBP Investments LLC

   (x)   Food & Staples Retailing   L+500   0.8%   5/26/27     27.4     26.7     27.2

Kellermeyer Bergensons Services LLC

   (f)(i)(k)(l)(v)(m)(s)(t)   Commercial & Professional Services   L+575   1.0%   11/7/26     326.2     313.6     327.6

Kellermeyer Bergensons Services LLC

   (x)   Commercial & Professional Services   L+575   1.0%   11/7/26     47.4     47.4     47.6

Lakeview Farms Inc

   (l)(v)(m)   Food, Beverage & Tobacco   L+625   1.0%   6/10/27     92.9     90.9     92.4

Lakeview Farms Inc

   (v)   Food, Beverage & Tobacco   L+625   1.0%   6/10/27     0.8     0.8     0.8

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     6.0     6.0     5.9

Lexitas Inc

   (i)(k)(l)(v)(m)   Commercial & Professional Services   L+600   1.0%   11/14/25     102.4     98.8     104.4

Lexitas Inc

   (x)   Commercial & Professional Services   L+600   1.0%   11/14/25     15.0     15.0     15.3

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     69.9     64.6     70.8

Lipari Foods LLC

   (f)(v)(m)(s)   Food & Staples Retailing   L+575   1.0%   1/6/25     273.4     261.9     276.2

Matchesfashion Ltd

   (w)(v)   Consumer Durables & Apparel   L+463, 3.0% PIK (3.0% Max PIK)   0.0%   10/11/24     12.7     12.2     8.4

MB2 Dental Solutions LLC

   (k)(l)(v)(m)(t)   Health Care Equipment & Services   L+600   1.0%   1/29/27     198.3     187.2     198.9

MB2 Dental Solutions LLC

   (x)   Health Care Equipment & Services   L+600   1.0%   1/29/27     90.0     90.0     90.3

Med-Metrix

   (v)   Software & Services   L+600   1.0%   9/15/27     62.6     61.9     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)(v)(m)(t)   Health Care Equipment & Services   L+650   1.0%   12/14/26     181.0     171.4     179.6

Micronics Filtration Holdings Inc

   (ac)(y)(z)(v)   Capital Goods   7.5% PIK (7.5% Max PIK)     3/29/24     50.4     45.0     40.0

Monitronics International Inc

   (aa)(f)(v)   Commercial & Professional Services   L+650   1.3%   3/29/24     18.9     17.1     18.5

Monitronics International Inc

   (v)   Commercial & Professional Services   L+500   1.5%   7/3/24     36.2     33.5     34.5

Monitronics International Inc

   (x)   Commercial & Professional Services   L+500   1.5%   7/3/24     33.8     33.8     32.2

Motion Recruitment Partners LLC

   (v)(m)(t)   Commercial & Professional Services   L+650   1.0%   12/19/25     85.2     80.2     83.8

Motion Recruitment Partners LLC

   (x)   Commercial & Professional Services   L+650   1.0%   12/19/25     59.6     59.6     58.6

NBG Home

   (v)   Consumer Durables & Apparel   L+550   1.0%   4/26/24     68.1     67.9     57.8

 

See notes to unaudited consolidated financial statements.

 

10


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes  

Industry

  Rate(b)   Floor(b)   Maturity   Principal
Amount(c)
    Amortized
Cost
    Fair
Value(d) 
 

NCI Inc

   (v)   Software & Services   L+750, 0.0% PIK (2.5% Max PIK)   1.0%   8/15/24   $ 78.8   $ 77.6   $ 69.7

Net Documents

   (v)   Software & Services   L+675   1.0%   6/30/27     24.6     24.4     24.2

Net Documents

   (x)   Software & Services   L+675   1.0%   6/30/27     7.4     7.3     7.3

Net Documents

   (x)   Software & Services   L+675   1.0%   6/30/27     3.0     2.9     2.9

New Era Technology Inc

   (i)(l)(v)(m)(t)   Software & Services   L+625   1.0%   10/31/26     88.0     83.7     87.3

New Era Technology Inc

   (x)   Software & Services   L+625   1.0%   10/31/26     18.5     18.5     18.4

New Era Technology Inc

   (x)   Software & Services   L+625   1.0%   10/31/26     4.7     4.6     4.6

Omnimax International Inc

   (f)(i)(k)(l)(v)(m)   Capital Goods   L+725   1.0%   10/8/26     219.9     210.3     221.2

One Call Care Management Inc

   (ad)(aa)(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)(v)(t)   Commercial & Professional Services   L+600   0.0%   8/17/27     88.6     87.8     87.9

Oxford Global Resources LLC

   (v)   Commercial & Professional Services   L+600   0.0%   8/17/27     1.2     1.2     1.2

Oxford Global Resources LLC

   (x)   Commercial & Professional Services   L+600   0.0%   8/17/27     15.3     15.3     15.2

Oxford Global Resources LLC

   (x)   Commercial & Professional Services   L+600   0.0%   8/17/27     6.4     6.4     6.4

P2 Energy Solutions Inc.

   (v)   Software & Services   L+675   1.0%   1/31/25     4.6     4.2     4.2

P2 Energy Solutions Inc.

   (f)(i)(k)(v)(m)(s)(t)   Software & Services   L+675   1.0%   2/2/26     249.7     232.5     232.5

P2 Energy Solutions Inc.

   (x)   Software & Services   L+675   1.0%   1/31/25     10.6     10.6     9.9

Parata Systems

   (f)(v)(m)   Health Care Equipment & Services   L+575   1.0%   6/30/27     132.1     131.1     131.7

Parata Systems

   (x)   Health Care Equipment & Services   L+575   1.0%   6/30/27     22.0     22.0     21.9

Parata Systems

   (x)   Health Care Equipment & Services   L+575   1.0%   6/30/27     5.5     5.5     5.5

Peak 10 Holding Corp

   (aa)(v)   Telecommunication Services   L+350   0.0%   8/1/24     20.1     17.3     18.7

Peraton Corp

   (aa)(v)   Capital Goods   L+375   0.8%   2/1/28     9.0     8.7     9.1

Performance Health Holdings Inc

   (f)(i)(v)   Health Care Equipment & Services   L+600   1.0%   7/12/27     121.0     119.8     120.3

Petroplex Acidizing Inc

   (ac)(y)(z)(v)   Energy   L+900 PIK (L+900 Max PIK)   1.0%   12/30/21     26.5     22.9     6.9

Polyconcept North America Inc

   (aa)(v)   Household & Personal Products   L+450 PIK (L+450 Max PIK)   1.0%   8/16/23     22.5     22.2     22.4

Premium Credit Ltd

   (w)(v)   Diversified Financials   L+650   0.0%   1/16/26   £ 58.0     75.1     78.2

Pretium Packaging LLC

   (aa)(v)   Household & Personal Products   L+400   0.5%   9/22/28   $ 1.6     1.6     1.6

Production Resource Group LLC

   (ad)(v)   Media & Entertainment   L+750, 0.0% PIK (3.1% Max PIK)   1.0%   8/21/24     60.6     56.0     60.6

Production Resource Group LLC

   (ad)(v)   Media & Entertainment   L+300, 5.5% PIK (5.5% Max PIK)   0.3%   8/21/24     130.1     121.0     130.1

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   1.0%   8/21/24     3.4     3.3     3.4

Production Resource Group LLC

   (ad)(v)   Media & Entertainment   L+750, 0.0% PIK (3.1% Max PIK)   1.0%   8/21/24     10.1     10.0     10.1

Production Resource Group LLC

   (ad)(x)   Media & Entertainment   L+750, 0.0% PIK (3.1% Max PIK)   1.0%   8/21/24     20.2     20.2     20.2

Propulsion Acquisition LLC

   (f)(l)(v)(s)(t)   Capital Goods   L+700   1.0%   7/13/24     60.7     56.7     61.3

PSKW LLC

   (i)(l)(v)(s)(t)   Health Care Equipment & Services   L+625   1.0%   3/9/26     295.5     283.7     298.5

Qdoba Restaurant Corp

   (aa)(v)(m)   Consumer Services   L+700   1.0%   3/21/25     11.0     10.8     10.8

Reliant Rehab Hospital Cincinnati LLC

   (f)(i)(l)(v)(m)(s)   Health Care Equipment & Services   L+675   0.0%   9/2/24     160.5     152.2     155.3

Revere Superior Holdings Inc

   (v)(m)   Software & Services   L+575   1.0%   9/30/26     23.1     22.4     23.3

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     0.9     0.7     0.8

Rise Baking Company

   (l)(v)(m)   Food, Beverage & Tobacco   L+625   1.0%   8/13/27     43.5     42.4     42.6

Rise Baking Company

   (x)   Food, Beverage & Tobacco   L+625   1.0%   8/13/27     4.4     4.4     4.3

RSC Insurance Brokerage Inc

   (f)(i)(k)(l)(v)(m)(s)   Insurance   L+550   1.0%   10/30/26     240.3     230.5     242.7

RSC Insurance Brokerage Inc

   (x)   Insurance   L+550   1.0%   9/30/26     7.7     7.6     7.7

RSC Insurance Brokerage Inc

   (x)   Insurance   L+550   1.0%   10/30/26     23.2     23.2     23.5

 

See notes to unaudited consolidated financial statements.

 

11


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes  

Industry

  Rate(b)   Floor(b)   Maturity   Principal
Amount(c)
    Amortized
Cost
    Fair
Value(d) 
 

Safe-Guard Products International LLC

   (f)(m)(t)   Diversified Financials   L+500   0.5%   1/27/27   $ 45.1   $ 42.4   $ 45.1

SAMBA Safety Inc

   (v)   Software & Services   L+575   1.0%   9/1/27     27.4     27.1     27.1

SAMBA Safety Inc

   (x)   Software & Services   L+575   1.0%   9/1/27     6.1     6.1     6.0

SAMBA Safety Inc

   (x)   Software & Services   L+575   1.0%   9/1/27     2.4     2.4     2.4

Sequa Corp

   (aa)(v)(m)   Capital Goods   L+675, 0.0% PIK (1.0% Max PIK)   1.0%   11/28/23     16.0     15.3     16.3

Sequa Corp

   (v)   Capital Goods   L+900, 0.0% PIK (9.5% Max PIK)   1.0%   7/31/25     16.4     15.9     17.1

Sequel Youth & Family Services LLC

   (y)(z)(v)   Health Care Equipment & Services   L+800   1.0%   9/1/23     170.0     112.4     53.3

Sequel Youth & Family Services LLC

   (y)(z)(v)   Health Care Equipment & Services   L+700   1.0%   9/1/23     29.2     19.3     9.2

Sequel Youth & Family Services LLC

   (v)   Health Care Equipment & Services   L+700   1.0%   9/1/23     27.5     27.5     27.5

Sequel Youth & Family Services LLC

   (x)   Health Care Equipment & Services   L+700   1.0%   9/1/23     14.5     14.5     14.5

Sequential Brands Group Inc.

   (v)   Consumer Durables & Apparel   5.0%     11/24/21     126.4     125.8     126.4

Sequential Brands Group Inc.

   (y)(z)(k)(l)(v)   Consumer Durables & Apparel   L+875   0.0%   2/7/24     266.8     216.8     230.5

Sequential Brands Group Inc.

   (x)   Consumer Durables & Apparel   5.0%     11/24/21     7.7     7.7     7.7

Sorenson Communications LLC

   (ac)(aa)(f)(k)(v)(t)   Telecommunication Services   L+550   0.8%   3/17/26     61.8     58.5     62.3

Source Code LLC

   (k)(l)(t)   Software & Services   L+650   1.0%   6/30/27     53.4     52.4     52.5

Source Code LLC

   (x)   Software & Services   L+650   1.0%   6/30/27     15.3     15.0     15.0

Spins LLC

   (v)(m)(s)(t)   Software & Services   L+550   1.0%   1/20/27     60.8     57.3     61.7

Spins LLC

   (x)   Software & Services   L+550   1.0%   1/20/27     7.9     7.9     7.9

Summit Interconnect Inc

   (f)(k)(l)(v)(t)   Capital Goods   L+600   1.0%   9/22/28     118.3     117.1     117.1

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   L+375, 3.8% PIK (3.8% Max PIK)   1.0%   7/1/24     5.7     5.6     6.0

Sweeping Corp of America Inc

   (v)(m)   Commercial & Professional Services   L+575   1.0%   11/30/26     54.6     52.0     55.1

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     1.3     1.3     1.4

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)(v)(m)(s)   Software & Services   L+650   1.0%   11/28/25     190.5     170.9     155.0

ThermaSys Corp

   (ac)(y)(z)(v)   Capital Goods   L+1,100 PIK (L+1,100 Max PIK)   1.0%   1/1/24     8.2     8.3     3.2

ThreeSixty Group

   (v)(m)   Retailing   L+500, 2.5% PIK (2.5% Max PIK)   1.5%   3/1/23     48.4     48.2     47.8

ThreeSixty Group

   (v)(m)   Retailing   L+500, 2.5% PIK (2.5% Max PIK)   1.5%   3/1/23     48.1     47.8     47.5

Total Safety US Inc

   (aa)(f)   Capital Goods   L+600   1.0%   8/16/25     0.9     0.9     0.9

Trace3 Inc

   (f)(i)(k)(l)(v)(m)(s)   Software & Services   L+675   1.0%   8/3/24     249.3     237.7     249.3

Transaction Services Group Ltd

   (w)(v)   Software & Services   B+650   0.0%   10/15/26   A$ 80.3     55.5     56.9

Transaction Services Group Ltd

   (w)(v)   Software & Services   L+650   0.0%   10/15/26   $ 126.2     122.1     123.5

Transaction Services Group Ltd

   (w)(v)   Software & Services   L+650   0.0%   10/15/26   £ 13.9     17.6     18.3

Truck-Lite Co LLC

   (f)(i)(k)(v)(m)(s)   Capital Goods   L+625   1.0%   12/14/26   $ 268.7     257.5     268.7

Truck-Lite Co LLC

   (x)   Capital Goods   L+625   1.0%   12/13/24     25.4     25.2     25.4

Warren Resources Inc

   (ad)(v)   Energy   L+900, 1.0% PIK (1.0% Max PIK)   1.0%   5/22/24     18.6     17.3     18.6

Wealth Enhancement Group LLC

   (w)(v)   Diversified Financials   L+625   1.0%   10/31/25     1.3     1.3     1.3

Wealth Enhancement Group LLC

   (w)(x)   Diversified Financials   L+625   1.0%   10/31/25     28.3     28.2     28.3

Wealth Enhancement Group LLC

   (w)(x)   Diversified Financials   L+625   1.0%   10/31/25     0.4     0.4     0.4

Woolpert Inc

   (f)(k)(l)(v)(m)(t)   Capital Goods   L+600   1.0%   4/5/28     139.6     132.6     140.2

Woolpert Inc

   (x)   Capital Goods   L+600   1.0%   4/5/28     25.6     25.6     25.7
              

 

 

   

 

 

 

Total Senior Secured Loans—First Lien

                 10,722.8     10,880.8

Unfunded Loan Commitments

                 (1,192.1     (1,192.1
              

 

 

   

 

 

 

Net Senior Secured Loans—First Lien

                 9,530.7     9,688.7
              

 

 

   

 

 

 

 

See notes to unaudited consolidated financial statements.

 

12


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(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 Loans—Second Lien—21.6%

                

Advanced Lighting Technologies Inc

   (v)   Materials   L+600   1.0%   3/16/27   $ 10.8   $ 10.5   $ 10.6

Ammeraal Beltech Holding BV

   (w)(f)(v)(s)   Capital Goods   L+775   0.0%   9/12/26     51.3     46.4     50.8

Amtek Global Technology Pte Ltd

   (ad)(w)(z)(g)(v)   Automobiles & Components   E+500 PIK (E+500 Max PIK)   0.0%   4/4/24   34.3     38.8     —  

Apex Group Limited

   (w)(v)   Diversified Financials   L+675   0.5%   7/12/29   $ 40.0     39.6     39.6

Belk Inc

   (ac)(y)(z)(v)   Retailing   10.0% PIK (10.0% Max PIK)     7/31/25     24.9     4.2     4.6

Byrider Finance LLC

   (v)(u)   Automobiles & Components   L+1,000, 0.5% PIK (0.5% Max PIK)   1.3%   6/7/22     54.2     51.9     54.3

Constellis Holdings LLC

   (ac)(f)(v)   Capital Goods   L+100, 10.0% PIK (10.0% Max PIK)   1.0%   3/27/25     13.5     12.5     13.5

Cubic Corp

   (v)   Software & Services   L+763   0.8%   5/25/29     54.8     51.7     54.7

Datatel Inc

   (v)   Software & Services   L+800   1.0%   10/9/28     179.2     169.9     180.2

Excelitas Technologies Corp

   (aa)(l)   Technology Hardware & Equipment   L+750   1.0%   12/1/25     6.6     6.1     6.7

Fairway Group Holdings Corp

   (ac)(y)(z)(v)   Food & Staples Retailing   11.0% PIK (11.0% Max PIK)     2/24/24     6.9     —       —  

Misys Ltd

   (aa)(w)(v)   Software & Services   L+725   1.0%   6/13/25     21.8     20.4     22.0

NBG Home

   (v)   Consumer Durables & Apparel   L+1,275 PIK (L+1,275 Max PIK)   1.0%   9/30/24     30.4     27.2     18.7

NEP Broadcasting LLC

   (aa)(v)   Media & Entertainment   L+700   0.0%   10/19/26     6.8     6.1     6.6

OEConnection LLC

   (f)(v)(s)   Software & Services   L+825   0.0%   9/25/27     77.0     73.4     77.0

Paradigm Acquisition Corp

   (aa)(l)(v)   Health Care Equipment & Services   L+750   0.0%   10/26/26     2.3     2.2     2.3

Peraton Corp

   (v)(s)   Capital Goods   L+800   1.0%   2/1/29     175.0     165.1     179.3

Peraton Corp

   (v)   Capital Goods   L+775   0.8%   2/1/29     156.4     149.8     157.4

Petrochoice Holdings Inc

   (v)   Capital Goods   L+875   1.0%   8/21/23     65.0     64.3     57.8

Polyconcept North America Inc

   (v)   Household & Personal Products   11.0% PIK (11.0% Max PIK)     2/16/24     9.8     9.6     9.4

Pretium Packaging LLC

   (v)(m)(s)   Household & Personal Products   L+825   0.8%   11/6/28     15.1     14.4     15.4

Pretium Packaging LLC

   (v)   Household & Personal Products   L+675   0.5%   9/22/29     39.9     39.5     39.5

Pure Fishing Inc

   (f)(v)(m)   Consumer Durables & Apparel   L+838   1.0%   12/31/26     177.0     170.4     177.0

Sequa Corp

   (aa)(v)(m)   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     5.3     5.8

Solera LLC

   (aa)(v)   Software & Services   L+800   1.0%   6/4/29     312.4     295.4     319.4

Sorenson Communications LLC

   (ac)(v)(m)(s)(u)   Telecommunication Services   L+1,150 PIK (L+1,150 Max PIK)     3/17/26     6.9     6.6     6.9

Sungard Availability Services Capital Inc

   (ac)(v)   Software & Services   L+400, 2.8% PIK (2.8% Max PIK)   1.0%   8/1/24     14.5     13.5     14.5

Vantage Specialty Chemicals Inc

   (aa)(v)   Materials   L+825   1.0%   10/27/25     0.8     0.7     0.7

WireCo WorldGroup Inc

   (aa)(v)(m)   Capital Goods   L+900   1.0%   9/30/24     14.9     13.6     14.8

Wittur Holding GmbH

   (w)(v)   Capital Goods   E+850, 0.5% PIK (0.5% Max PIK)   0.0%   9/23/27   112.50     120.3     123.5
              

 

 

   

 

 

 

Total Senior Secured Loans—Second Lien

                 1,635.1     1,668.9
              

 

 

   

 

 

 

Other Senior Secured Debt—1.8%

                

Angelica Corp

   (y)(z)(h)   Health Care Equipment & Services   10.0% PIK (10.0% Max PIK)     12/30/22   $ 50.8     42.3     21.2

JW Aluminum Co

   (ad)(aa)(v)(s)   Materials   10.3%     6/1/26     76.5     75.4     82.2

One Call Care Management Inc

   (ad)(v)   Health Care Equipment & Services   8.5% PIK (8.5% Max PIK)     11/1/28     22.5     20.6     22.3

TruckPro LLC

   (aa)(v)   Capital Goods   11.0%     10/15/24     9.2     9.2     10.0
              

 

 

   

 

 

 

Total Other Senior Secured Debt

                 147.5     135.7
              

 

 

   

 

 

 

Subordinated Debt—1.2%

                

Ardonagh Group Ltd

   (aa)(w)(v)   Insurance   12.8% PIK (12.8% Max PIK)     1/15/27     0.9     0.9     0.9

ATX Networks Corp

   (w)(y)(z)(v)(s)(ad)   Capital Goods   10.0% PIK (10.0% Max PIK)     8/9/28     18.3     4.8     4.8

ClubCorp Club Operations Inc

   (aa)(v)   Consumer Services   8.5%     9/15/25     37.3     35.3     36.3

Hilding Anders

   (ad)(w)(y)(v)   Consumer Durables & Apparel         24.8     26.9     —  

Hilding Anders

   (ad)(w)(y)(v)   Consumer Durables & Apparel           110.5     —       —  

Hilding Anders

   (ad)(w)(y)(z)(v)   Consumer Durables & Apparel   13.0% PIK (13.0% Max PIK)     11/30/25     126.0     99.4     51.1
              

 

 

   

 

 

 

Total Subordinated Debt

                 167.3     93.1
              

 

 

   

 

 

 

 

See notes to unaudited consolidated financial statements.

 

13


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes  

Industry

  Rate(b)   Floor(b)   Maturity   Principal
Amount(c)/
Shares
    Amortized
Cost
    Fair
Value(d)
 

Asset Based Finance—25.8%

                

801 5th Ave, Seattle, Private Equity

   (ad)(w)(y)(v)   Real Estate           8,554,983   $ 14.1   $ 22.5

801 5th Ave, Seattle, Structure Mezzanine

   (ad)(w)(v)   Real Estate   8.0%, 3.0% PIK (3.0% Max PIK)     12/19/29   $ 55.5     53.4     55.5

Abacus JV, Private Equity

   (w)(v)   Insurance           40,241,018     39.2     42.9

Accelerator Investments Aggregator LP, Private Equity

   (w)(y)(v)   Diversified Financials           5,397,365     6.3     4.7

Altavair AirFinance, Private Equity

   (w)(v)   Capital Goods           121,889,043     122.9     143.5

Australis Maritime, Common Stock

   (w)(v)   Transportation           43,889,942     42.2     43.4

Avida Holding AB, Common Stock

   (ad)(w)(y)(v)   Diversified Financials           405,023,756     43.9     52.4

Bank of Ireland, Class B Credit Linked Floating Rate Note

   (w)(g)   Banks   L+1,185     12/4/27   $ 14.7     14.7     14.2

Byrider Finance LLC, Structured Mezzanine

   (v)   Automobiles & Components   L+1,050   0.3%   6/3/28   $ 12.0     12.0     12.0

Byrider Finance LLC, Structured Mezzanine

   (x)   Automobiles & Components   L+1,050   0.3%   6/3/28   $ 11.0     11.0     11.0

Callodine Commercial Finance LLC, 2L Term Loan A

   (v)   Diversified Financials   L+900   1.0%   11/3/25   $ 125.0     117.7     125.3

Callodine Commercial Finance LLC, 2L Term Loan B

   (x)   Diversified Financials   L+900   1.0%   11/3/25   $ 40.3     40.3     40.4

Capital Automotive LP, Private Equity

   (w)(v)   Real Estate           21,640,936     23.7     27.5

Capital Automotive LP, Structured Mezzanine

   (w)(v)   Real Estate   11.0%     12/22/28   $ 42.7     40.9     42.7

Global Jet Capital LLC, Preferred Stock

   (y)(j)(v)(u)   Commercial & Professional Services           149,494,590     69.4    

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     1/30/25   $ 4.5     3.5     3.6

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     4/30/25   $ 28.3     22.3     22.7

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     9/3/25   $ 5.9     4.6     4.7

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     9/29/25   $ 5.5     4.3     4.4

Global Jet Capital LLC, Structured Mezzanine

   (j)(v)(u)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     12/4/25   $ 271.3     218.2     217.8

Global Jet Capital LLC, Structured Mezzanine

   (j)(v)(u)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     12/9/25   $ 44.4     35.7     35.6

Global Jet Capital LLC, Structured Mezzanine

   (j)(v)(u)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     1/29/26   $ 23.2     18.7     18.6

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     2/17/26   $ 25.6     19.3     20.5

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     4/14/26   $ 39.6     32.2     31.8

Global Jet Capital LLC, Structured Mezzanine

   (v)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     12/2/26   $ 50.2     40.2     40.3

Global Lending Services LLC, Private Equity

   (w)(v)   Diversified Financials           13,725,159     15.7     18.1

Global Lending Services LLC, Private Equity

   (w)(v)   Diversified Financials           18,291,830     20.2     22.1

Home Partners JV 2, Private Equity

   (ac)(w)(y)(v)   Real Estate           1,016,252     1.0     1.0

Home Partners JV 2, Private Equity

   (ac)(w)(y)(v)   Real Estate           38,343     0.0       0.0  

Home Partners JV 2, Structured Mezzanine

   (ac)(w)(v)   Real Estate   11.0% PIK (11.0% Max PIK)     3/20/30   $ 2.2     2.1     2.2

Home Partners JV 2, Structured Mezzanine

   (ac)(w)(x)   Real Estate   11.0% PIK (11.0% Max PIK)     3/20/30   $ 14.8     14.8     14.8

Home Partners JV, Common Stock

   (ac)(w)(y)(v)   Real Estate           32,659,547     47.6     73.6

Home Partners JV, Private Equity

   (ac)(w)(y)(v)   Real Estate           4,127,355     5.4     8.5

Home Partners JV, Structured Mezzanine

   (ac)(w)(v)   Real Estate   11.0% PIK (11.0% Max PIK)     3/25/29   $ 88.0     83.0     88.0

Jet Edge International LLC, Preferred Stock

   (v)(ac)   Transportation   8.0%, 0.0% PIK (8.0% Max PIK)         20,878,236     20.9     16.6

Jet Edge International LLC, Term Loan

   (v)(ac)   Transportation   10.0%, 2.0% PIK (2.0% Max PIK)     4/2/26   $ 39.5     38.7     39.3

Jet Edge International LLC, Term Loan

   (x)(ac)   Transportation   10.0%, 2.0% PIK (2.0% Max PIK)     4/2/26   $ 38.3     38.3     38.0

Jet Edge International LLC, Warrant

   (y)(h)(ac)   Transportation           3,963     —       4.3

Kilter Finance, Preferred Stock

   (ad)(w)(v)   Insurance   6.0%, 6.0% PIK (6.0% Max PIK)         34,060,490     32.6     34.1

Kilter Finance, Private Equity

   (ad)(w)(y)(v)   Insurance           536,709     0.5     0.5

 

See notes to unaudited consolidated financial statements.

 

14


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes    

Industry

  Rate(b)     Floor(b)     Maturity     Principal
Amount(c)/
Shares
    Amortized
Cost
    Fair
Value(d)
 

KKR Central Park Leasing Aggregator L.P., Partnership Interest

     (w)(y)(z)(v)     Capital Goods         5/31/23     $ 39.1   $ 39.1   $ 27.6

KKR Chord IP Aggregator LP, Partnership Interest

     (w)(v)     Media & Entertainment           61,994,246     60.5     66.4

KKR Rocket Loans Aggregator LLC, Partnership Interest

     (w)(v)(ad)     Diversified Financials           764,880     0.8     0.8

KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest

     (w)(y)(v)     Capital Goods           23,664,954     23.0     22.5

Lenovo Group Ltd, Structured Mezzanine

     (w)(v)     Technology Hardware & Equipment     7.8%         9/22/24     7.8     9.2     9.1

Lenovo Group Ltd, Structured Mezzanine

     (w)(v)     Technology Hardware & Equipment     7.8%         9/22/24     $ 12.1     12.1     12.1

Lenovo Group Ltd, Structured Mezzanine

     (w)(v)     Technology Hardware & Equipment     11.8%         9/22/24     5.9     6.9     6.8

Lenovo Group Ltd, Structured Mezzanine

     (w)(v)     Technology Hardware & Equipment     11.8%         9/22/24     £ 1.6     2.2     2.1

Lenovo Group Ltd, Structured Mezzanine

     (w)(v)     Technology Hardware & Equipment     7.8%         9/22/24     £ 2.1     2.9     2.9

Lenovo Group Ltd, Structured Mezzanine

     (w)(v)     Technology Hardware & Equipment     11.8%         9/22/24     $ 9.1     9.1     9.1

NewStar Clarendon 2014-1A Class D

     (w)(v)     Diversified Financials     18.1%         1/25/27     $ 8.3     2.5     3.5

Opendoor Labs Inc, 2L Term Loan

     (w)(v)     Real Estate     10.0%         1/23/26     $ 151.0     148.9     151.0

Orchard Marine Limited, Class B Common Stock

     (ac)(w)(y)(v)     Transportation           1,964     3.1     —  

Orchard Marine Limited, Series A Preferred Stock

     (ac)(w)(y)(v)     Transportation           62,976     62.0     51.7

Pretium Partners LLC P1, Structured Mezzanine

     (w)(v)     Real Estate     2.8%, 5.3% PIK (5.3% Max PIK)         10/22/26     $ 6.7     6.2     6.7

Prime ST LLC, Private Equity

     (ad)(w)(y)(v)     Real Estate           6,634,509     8.3     10.8

Prime ST LLC, Structured Mezzanine

     (ad)(w)(v)     Real Estate     5.0%, 6.0% PIK (6.0% Max PIK)         3/12/30     $ 49.4     47.3     49.4

Star Mountain Diversified Credit Income Fund III, LP, Private Equity

     (w)(o)     Diversified Financials           21,000,000     21.0     21.1

Toorak Capital Funding LLC, Membership Interest

     (ad)(w)(y)(v)     Real Estate           1,723,140     1.9     1.7

Toorak Capital Partners LLC, Private Equity

     (ad)(v)     Real Estate           198,139,270     198.1     248.4

Toorak Capital Partners LLC, Structured Mezzanine

     (ad)(x)     Real Estate     L+650 PIK (L+650 Max PIK)         11/11/21     $ 20.0     20.0     20.0

Wind River CLO Ltd. 2012 1A Class Subord. B

     (w)(y)(v)     Diversified Financials         1/15/26     $ 42.5     13.5     1.2
              

 

 

   

 

 

 

Total Asset Based Finance

                 2,070.1     2,124.0

Unfunded commitments

                 (124.4     (124.4
              

 

 

   

 

 

 

Net Asset Based Finance

                 1,945.7     1,999.6
              

 

 

   

 

 

 

Credit Opportunities Partners JV, LLC—18.1%

                

Credit Opportunities Partners JV, LLC

     (v)(w)(ad)     Diversified Financials         $ 1,462.3     1,396.7     1,398.8
              

 

 

   

 

 

 

Credit Opportunities Partners JV, LLC

                 1,396.7     1,398.8
              

 

 

   

 

 

 

Portfolio Company(a)

   Footnotes    

Industry

  Rate(b)     Floor(b)     Maturity     Number of
Shares
    Amortized
Cost
    Fair
Value(d)
 

Equity/Other—10.9%(e)

                

Abaco Energy Technologies LLC, Common Stock

     (y)(v)     Energy           3,055,556   $ 0.2   $ 0.3

Abaco Energy Technologies LLC, Preferred Stock

     (y)(v)     Energy           12,734,481     1.5     1.8

Affordable Care Inc, Preferred Stock

     (v)(ac)     Health Care Equipment & Services     11.8% PIK (11.8% Max PIK)           49,073,000     48.1     49.3

American Vision Partners, Private Equity

     (y)(v)     Health Care Equipment & Services           2,450,230     2.5     2.5

Amtek Global Technology Pte Ltd, Common Stock

     (ad)(w)(y)(g)(v)     Automobiles & Components           7,046,126     —       —  

Amtek Global Technology Pte Ltd, Ordinary Shares

     (ad)(w)(y)(g)     Automobiles & Components           5,735,804,056     30.7     —  

 

See notes to unaudited consolidated financial statements.

 

15


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes  

Industry

  Rate(b)   Floor(b)   Maturity   Number of
Shares
    Amortized
Cost
    Fair
Value(d)
 

Amtek Global Technology Pte Ltd, Private Equity

   (ad)(w)(y)(g)   Automobiles & Components           4,097   $ —     $ —  

Angelica Corp, Limited Partnership Interest

   (y)(h)   Health Care Equipment & Services           877,044     47.7     —  

Ap Plasman Inc, Warrant

   (w)(y)(v)   Capital Goods       5/25/26     6,985     2.5     —  

Arcos LLC/VA, Preferred Stock

   (v)   Software & Services   L+950 PIK (L+950 Max PIK)   1.0%   4/30/31     15,000,000     13.9     15.2

Ardonagh Ltd, Ordinary Shares

   (w)(y)(v)   Insurance           16,450     —       —  

Ardonagh Ltd, Ordinary Shares

   (w)(y)(v)   Insurance           116,814     0.2     0.3

Ardonagh Ltd, Preferred Stock

   (w)(y)(v)   Insurance           6,113,719     9.1     13.3

Arena Energy LP, Warrants

   (y)(v)   Energy           68,186,525     0.4     0.5

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock

   (y)(p)   Energy           10,193     9.7     2.5

Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim

   (y)(p)   Energy           86,607,143     19.4     21.3

Aspect Software Inc, Common Stock

   (y)(l)(v)(s)   Software & Services           1,309,955     2.3     2.7

Aspect Software Inc, Warrant

   (y)(l)(v)(s)   Software & Services       1/15/24     181,730     0.3     0.3

ATX Networks Corp, Common Stock

   (w)(y)(v)(s)(ad)   Capital Goods           3,483     —       —  

AVF Parent LLC, Trade Claim

   (y)(v)   Retailing           44,507     —       —  

Belk Inc, Common Stock

   (ac)(y)(v)   Retailing           94,950     —       —  

Borden (New Dairy Opco), Common Stock

   (ac)(y)(h)(n)   Food, Beverage & Tobacco           11,167,000     9.1     10.1

Bowery Farming Inc, Warrants

   (y)(v)   Food, Beverage & Tobacco       4/30/26     161,828     0.0       0.0  

Catalina Marketing Corp, Common Stock

   (y)(v)   Media & Entertainment           6,522     —       —  

CDS US Intermediate Holdings Inc, Warrant

   (w)(y)(v)   Media & Entertainment           2,023,714     —       —  

Cengage Learning, Inc, Common Stock

   (y)(v)   Media & Entertainment           227,802     7.5     4.6

Charlotte Russe Inc, Common Stock

   (ac)(y)(v)   Retailing           22,575     12.5     —  

Chisholm Oil & Gas Operating LLC, Series A Units

   (y)(v)(n)(o)   Energy           300,000     0.1     —  

Cimarron Energy Inc, Common Stock

   (y)(v)   Energy           4,302,293     —       —  

Cimarron Energy Inc, Participation Option

   (y)(v)   Energy           25,000,000     —       —  

Constellis Holdings LLC, Private Equity

   (ac)(y)(f)(v)   Capital Goods           849,702     10.3     9.4

CTI Foods Holding Co LLC, Common Stock

   (y)(v)   Food, Beverage & Tobacco           5,892     0.7     0.0  

Cubic Corp, Preferred Stock

   (v)   Software & Services   11.0% PIK (11.0% Max PIK)         42,141,600     39.7     42.2

Empire Today LLC, Common Stock

   (v)   Retailing           1,005     5.7     10.0

Envigo Laboratories Inc, Series A Warrant

   (y)(s)   Health Care Equipment & Services       4/29/24     10,924     —       —  

Envigo Laboratories Inc, Series B Warrant

   (y)(s)   Health Care Equipment & Services       4/29/24     17,515     —       —  

Fairway Group Holdings Corp, Common Stock

   (ac)(y)(v)   Food & Staples Retailing           103,091     —       —  

Fox Head Inc, Common Stock

   (y)(j)(v)   Consumer Durables & Apparel           10,000,000     8.0     10.4

Fronton BV, Common Stock

   (ac)(y)(o)   Consumer Services           14,943     —       1.5

Genesys Telecommunications Laboratories Inc, Class A Shares

   (y)(v)   Technology Hardware & Equipment           40,529     —       —  

Genesys Telecommunications Laboratories Inc, Ordinary Shares

   (y)(v)   Technology Hardware & Equipment           41,339     —       —  

Genesys Telecommunications Laboratories Inc, Preferred Stock

   (y)(v)   Technology Hardware & Equipment           1,050,465     —       —  

Harvey Industries Inc, Common Stock

   (y)(v)   Capital Goods           5,000,000     2.2     4.2

Hilding Anders, Class A Common Stock

   (ad)(w)(y)(v)   Consumer Durables & Apparel           4,503,411     0.1     —  

 

See notes to unaudited consolidated financial statements.

 

16


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes  

Industry

  Rate(b)   Floor(b)   Maturity   Number of
Shares
    Amortized
Cost
    Fair
Value(d)
 

Hilding Anders, Class B Common Stock

   (ad)(w)(y)(v)   Consumer Durables & Apparel           574,791   $ 0.0     $ —  

Hilding Anders, Class C Common Stock

   (ad)(w)(y)(v)   Consumer Durables & Apparel           213,201     —       —  

Hilding Anders, Equity Options

   (ad)(w)(y)(v)   Consumer Durables & Apparel     11/30/25       236,160,807     15.0     —  

HM Dunn Co Inc, Preferred Stock, Series A

   (ad)(y)(v)(s)   Capital Goods           85,385     7.1     8.6

HM Dunn Co Inc, Preferred Stock, Series B

   (ad)(y)(v)(s)   Capital Goods           15,000     —       —  

Imagine Communications Corp, Common Stock

   (y)(v)   Media & Entertainment           33,034     3.8     2.5

Jones Apparel Holdings, Inc., Common Stock

   (y)(v)   Consumer Durables & Apparel           5,451     0.9     —  

JW Aluminum Co, Common Stock

   (ad)(y)(j)(v)(u)   Materials           2,105     0.0       —  

JW Aluminum Co, Preferred Stock

   (ad)(j)(v)(u)   Materials   12.5% PIK (12.5% Max PIK)   2/15/28       15,279       171.1     119.0

Maverick Natural Resources LLC, Common Stock

   (y)(n)(o)   Energy           259,211     84.5     133.9

MB Precision Holdings LLC, Class A—2 Units

   (y)(n)(o)   Capital Goods           8,081,288     0.5     —  

Med-Metrix, Common Stock

   (y)(h)   Software & Services           29,403     2.9     2.9

Miami Beach Medical Group LLC, Common Stock

   (y)(v)   Health Care Equipment & Services           5,000,000     4.8     4.1

Micronics Filtration Holdings Inc, Common Stock

   (ac)(y)(v)   Capital Goods           53,073     0.6     —  

Micronics Filtration Holdings Inc, Preferred Stock, Series A

   (ac)(y)(v)   Capital Goods           55     0.6     —  

Micronics Filtration Holdings Inc, Preferred Stock, Series B

   (ac)(y)(v)   Capital Goods           23     0.2     —  

Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK

   (ac)(y)(v)   Capital Goods           112,780     —       —  

Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK

   (ac)(y)(v)   Capital Goods           54,000     —       —  

Misys Ltd, Preferred Stock

   (w)(v)   Software & Services   L+1,025 PIK (L+1,025 Max PIK)         77,447,484     71.3     76.9

NBG Home, Common Stock

   (y)(v)   Consumer Durables & Apparel           1,903     2.6     0.1

Nine West Holdings Inc, Common Stock

   (y)(v)   Consumer Durables & Apparel           5,451     6.5    

One Call Care Management Inc, Common Stock

   (ad)(y)(v)   Health Care Equipment & Services           34,872     2.1     2.4

One Call Care Management Inc, Preferred Stock A

   (ad)(y)(v)   Health Care Equipment & Services           371,992     22.8     25.4

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     9.0

Petroplex Acidizing Inc, Preferred Stock A

   (ac)(v)(ac)(y)(v)   Energy           25,012,540     4.9     —  

Petroplex Acidizing Inc, Warrant

   (ac)(y)(v)   Energy     12/15/26       8     —       —  

Polyconcept North America Inc, Class A—1 Units

   (y)(v)   Household & Personal Products           30,000     3.0     3.3

Production Resource Group LLC, Preferred Stock, Series A PIK

   (ad)(y)(v)   Media & Entertainment     8/21/24       434,250     18.1     13.9

Production Resource Group LLC, Preferred Stock, Series B PIK

   (ad)(y)(v)   Media & Entertainment     8/21/24       140        

Professional Plumbing Group Inc, Common Stock

   (y)(j)   Materials           3,000,000     2.6     2.7

Proserv Acquisition LLC, Class A Common Units

   (ac)(w)(y)(v)   Energy           2,635,005     33.5     3.4

Proserv Acquisition LLC, Class A Preferred Units

   (ac)(w)(y)(v)   Energy           837,780     5.4     9.5

Quorum Health Corp, Trade Claim

   (y)(v)   Health Care Equipment & Services           8,301,000     0.7     0.9

Quorum Health Corp, Trust Initial Funding Units

   (y)(v)   Health Care Equipment & Services           143,400     0.2     0.2

Ridgeback Resources Inc, Common Stock

   (w)(y)(j)(v)(u)   Energy           1,969,418     9.1     10.0

Sequential Brands Group Inc., Common Stock

   (y)(j)(v)   Consumer Durables & Apparel           18,519     2.8    

Sorenson Communications LLC, Common Stock

   (ac)(y)(j)(v)(u)   Telecommunication Services           89,959     42.5     74.5

 

See notes to unaudited consolidated financial statements.

 

17


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

   Footnotes    

Industry

  Rate(b)     Floor(b)     Maturity     Number of
Shares
    Amortized
Cost
    Fair
Value(d)
 

Sound United LLC, Common Stock

     (ad)(v)     Consumer Durables & Apparel           12,857,143   $ 17.3   $ 75.2

Stuart Weitzman Inc, Common Stock

     (y)(v)     Consumer Durables & Apparel           5,451     —       —  

Sungard Availability Services Capital Inc, Common Stock

     (ac)(y)(v)(s)(u)     Software & Services           262,516     6.9     5.1

Swift Worldwide Resources Holdco Ltd, Common Stock

     (y)(v)     Energy           1,250,000     1.2     1.0

ThermaSys Corp, Common Stock

     (ac)(y)(v)(u)     Capital Goods           17,383,026     10.2     —  

ThermaSys Corp, Preferred Stock

     (ac)(y)(v)     Capital Goods           1,529     1.7     —  

Trace3 Inc, Common Stock

     (y)(v)     Software & Services           61,798     3.9     10.2

Versatile Processing Group Inc, Class A—2 Units

     (y)(u)     Materials           3,637,500     3.6     —  

Warren Resources Inc, Common Stock

     (ad)(y)(v)     Energy           3,483,788     12.8     21.1

Zeta Interactive Holdings Corp, Common Stock

     (aa)(y)(v)     Software & Services           3,610,212     30.8     21.2
              

 

 

   

 

 

 

Total Equity/Other

                 900.9     839.4
              

 

 

   

 

 

 

TOTAL INVESTMENTS—204.6%

               $ 15,723.9     15,824.2
              

 

 

   

LIABILITIES IN EXCESS OF OTHER ASSETS—(104.6%)

                   (8,088.2
             

 

 

 

NET ASSETS—100%

                 $ 7,736.0
                

 

 

 

 

See notes to unaudited consolidated financial statements.

 

18


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 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
September 30,
2021
    Unrealized Appreciation
(Depreciation)
 

AUD

    10/17/2022     JP Morgan Chase Bank   A$   3.0 Sold   $ 2.1   $ 2.2   $ (0.1

CAD

    6/7/2022     JP Morgan Chase Bank   $   1.4 Sold     1.1     1.1     0.0

CAD

    6/7/2022     JP Morgan Chase Bank   $   1.9 Sold     1.5     1.5     0.0

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     7.1     0.4

EUR

    5/6/2022     JP Morgan Chase Bank     1.6 Sold     2.0     1.9     0.1

EUR

    5/6/2022     JP Morgan Chase Bank     0.7 Sold     0.9     0.9     0.0

EUR

    5/6/2022     JP Morgan Chase Bank     2.2 Sold     2.7     2.6     0.1

EUR

    5/6/2022     JP Morgan Chase Bank     0.9 Sold     1.2     1.1     0.1

EUR

    7/17/2023     JP Morgan Chase Bank     1.3 Sold     1.7     1.5     0.2

EUR

    8/8/2025     JP Morgan Chase Bank     4.8 Sold     5.7     5.8     (0.1

EUR

    8/8/2025     JP Morgan Chase Bank     1.9 Sold     2.3     2.4     (0.1

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     6.6     6.7     (0.1

GBP

    1/11/2023     JP Morgan Chase Bank   £   1.4 Sold     1.9     1.9     0.0

GBP

    10/13/2023     JP Morgan Chase Bank   £   6.2 Sold     8.5     8.3     0.2

NOK

    8/8/2025     JP Morgan Chase Bank   NOK   49.1 Sold     5.2     5.4     (0.2

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     8.4     0.1

SEK

    5/10/2024     JP Morgan Chase Bank   SEK   430.3 Sold     51.4     49.7     1.7

SEK

    5/10/2024     JP Morgan Chase Bank   SEK   503 Sold     60.1     58.1     2.0

SEK

    5/10/2024     JP Morgan Chase Bank   SEK   34.5 Sold     4.1     4.0     0.1

SEK

    8/8/2025     JP Morgan Chase Bank   SEK   119.3 Sold     13.3     13.9     (0.6

SEK

    8/8/2025     JP Morgan Chase Bank   SEK   27.8 Sold     3.1     3.2     (0.1
         

 

 

   

 

 

   

 

 

 

Total

          $ 207.3   $ 202.7   $ 4.6
         

 

 

   

 

 

   

 

 

 

 

(a)

Security may be an obligation of one or more entities affiliated with the named company.

 

(b)

Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of September 30, 2021, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.13%, the Euro Interbank Offered Rate, or EURIBOR, was (0.55)%, Candian Dollar Offer Rate, or CDOR was 0.45%, the Australian Bank Bill Swap Bid Rate, or BBSY, or “B”, was 0.07%, the Reykjavik Interbank Offered Rate, or REIBOR, was 1.89%, the Stockholm Interbank Offered Rate, or STIBOR or “SR”, was (0.08)%, the Sterling Interbank Offered Rate, or SONIA or “SA”, was 0.05%, 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. 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 Company’s board of directors (see Note 8).

 

(e)

Listed investments may be treated as debt for GAAP or tax purposes.

 

(f)

Security or portion thereof held within Ambler Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Ally Bank (see Note 9).

 

See notes to unaudited consolidated financial statements.

 

19


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

(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 company’s total assets. As of September 30, 2021, 75.8% of the Company’s total assets represented qualifying assets.

 

(x)

Security is an unfunded commitment. Reflects the stated spread at the time of commitment, but may not be the actual rate received upon funding.

 

(y)

Security is non-income producing.

 

(z)

Asset is on non-accrual status.

(aa) Security is classified as Level 1 or Level 2 in the Company’s fair value hierarchy (see Note 8).

(ab) Not used.

 

See notes to unaudited consolidated financial statements.

 

20


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2021

(in millions, except share amounts)

 

 

 

(ac)

Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of September 30, 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 as of September 30, 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
September 30,

2021
     Interest
Income(3)
     PIK
Income(3)
     Fee
Income(3)
     Dividend
Income(3)
 

Senior Secured Loans—First Lien

 

Affordable Care Inc

   $ —        $ —        $ —       $ —       $ —       $ —        $ —        $ —        $ 0.3    $ —    

Affordable Care Inc

     —          115.1      —         —         0.3     115.4        1.4      —          1.6      —    

Belk Inc

     —          39.3      (1.3     0.1     12.8     50.9      0.9      —          —          —    

Belk Inc

     —          21.7      —         —         0.4     22.1      1.1      —          —          —    

Borden (New Dairy Opco)

     7.6      10.5      —         —         0.9     19.0      0.4      —          —          —    

Borden (New Dairy Opco)

     16.8      23.3      —         —         1.9     42.0      1.7      —          —          —    

Borden Dairy Co

     —          —          —         1.3     (1.3     —          —          —          —          —    

Constellis Holdings LLC

     —          13.9      —         —         1.1     15.0      0.5      —          —          —    

Fairway Group Holdings Corp

     —          1.7      (0.7     —         (0.4     0.6      0.4      —          —          —    

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 LLC

     35.5      —          —         —         4.5     40.0      —          —          —          —    

One Call Care Management Inc(5)

     4.7      0.1      (4.9     0.5     (0.4     —          0.2      —          —          —    

Petroplex Acidizing Inc

     4.5      0.7      —         —         1.7     6.9      —          —          —          —    

Sorenson Communications LLC(4)

     —          61.7      (3.3     0.1     3.8     62.3      1.6      —          —          —    

Sungard Availability Services Capital Inc(4)

     —          5.6      —         —         0.4     6.0     <