Companies / FS KKR Capital
FS KKR Capital FSK
Moody's Ba1 (stable)Fitch BB+ (negative)
Capital Structure
| Cap Structure | Amt Out. | Mkt Price | Yield | Lev. Through | View |
|---|---|---|---|---|---|
| Unrestricted Cash | $172.0 | ||||
| Senior Secured Revolving Credit Facility | 607.0 | 100.0% | N/a | NA | Neutral |
| Callowhill Credit Facility | 337.0 | 100.0% | N/a | NA | Neutral |
| CLO-2 Notes (KKR-FSK CLO 2) | 380.0 | 100.0% | N/a | NA | Neutral |
| CLO-3 Notes (KKR-FSK CLO 3) | 363.0 | 100.0% | N/a | NA | Neutral |
| 3.250% Notes due 2027 | 500.0 | 97.1%* | 6.29% | NA | Neutral |
| 2.625% Notes due 2027 | 400.0 | 98.2%* | 6.26% | NA | Neutral |
| 3.125% Notes due 2028 | 750.0 | 94.6%* | 6.05% | NA | Neutral |
| 6.875% Notes due 2029 | 600.0 | 100.8%* | 6.56% | NA | Bearish |
| 7.875% Notes due 2029 | 400.0 | 102.8%* | 6.34% | NA | Bearish |
| 6.125% Notes due 2030 | 700.0 | 98.0%* | 6.78% | NA | Neutral |
| 7.500% Notes due 2031 | 900.0 | 101.8%* | 7.03% | NA | Bearish |
| 6.125% Notes due 2031 | 400.0 | 97.2%* | 6.87% | NA | Neutral |
| Cumulative Convertible Perpetual Preferred Stock, Series A | 150.0 | 100.0% | 5.00% | NA | Neutral |
| Total Debt | $6,231.0 | NA | |||
| Net Debt | $6,059.0 | NA |
Last Twelve Months
| Revenue | -- |
| Implied Costs | -- |
| Adj. EBITDA | -- |
| (-) Interest Expense | (408) |
| (-) Capex | -- |
| Memo: FCF | $1,620 |
| Total Liquidity | $3,306.0 |
FS KKR Capital
| 9/30/26 | Face Value / Adj. EBITDA | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cap Structure | Coupon | Maturity | Amt Out. | Mkt Price | YTM | Next Call | Yield to Call | View | 2021A | 2022A | 2023A | 2024A | 2025A | LTM |
| Unrestricted Cash | $172.0 | |||||||||||||
| Undrawn Revolver ($4,052mm facility) | 3,134.0 | |||||||||||||
| Total Liquidity | $3,306.0 | |||||||||||||
| Senior Secured Revolving Credit Facility | S + 177.5 | 7/16/2030 | 607.0 | 100.0% | N/a | N/a | N/a | Neutral | ||||||
| Callowhill Credit Facility | S + 175 | 6/2/2030 | 337.0 | 100.0% | N/a | N/a | N/a | Neutral | ||||||
| CLO-2 Notes (KKR-FSK CLO 2) | S + 148 | 4/15/2037 | 380.0 | 100.0% | N/a | N/a | N/a | Neutral | ||||||
| CLO-3 Notes (KKR-FSK CLO 3) | S + 147 | 1/15/2038 | 363.0 | 100.0% | N/a | N/a | N/a | Neutral | ||||||
| Total Secured Debt | $1,687.0 | NA | NA | NA | NA | NA | NA | |||||||
| Net Secured Debt | $1,515.0 | NA | NA | NA | NA | NA | NA | |||||||
| 3.250% Notes due 2027 | 3.25% | 7/15/2027 | 500.0 | 97.1%* | 6.29% | 6/15/2027 @ 100 | 9.32% | Neutral | ||||||
| 2.625% Notes due 2027 | 2.625% | 1/15/2027 | 400.0 | 98.2%* | 6.26% | 12/15/2026 @ 100 | 6.26% | Neutral | ||||||
| 3.125% Notes due 2028 | 3.125% | 10/12/2028 | 750.0 | 94.6%* | 6.05% | 8/12/2028 @ 100 | 6.05% | Neutral | ||||||
| 6.875% Notes due 2029 | 6.875% | 8/15/2029 | 600.0 | 100.8%* | 6.56% | 7/15/2029 @ 100 | 6.56% | Bearish | ||||||
| 7.875% Notes due 2029 | 7.875% | 1/15/2029 | 400.0 | 102.8%* | 6.62% | 12/15/2028 @ 100 | 6.34% | Bearish | ||||||
| 6.125% Notes due 2030 | 6.125% | 1/15/2030 | 700.0 | 98.0%* | 6.78% | 12/15/2029 @ 100 | 6.88% | Neutral | ||||||
| 7.500% Notes due 2031 | 7.50% | 8/1/2031 | 900.0 | 101.8%* | 7.07% | 5/1/2031 @ 100 | 7.03% | Bearish | ||||||
| 6.125% Notes due 2031 | 6.125% | 1/15/2031 | 400.0 | 97.2%* | 6.87% | 12/15/2030 @ 100 | 6.95% | Neutral | ||||||
| Cumulative Convertible Perpetual Preferred Stock, Series A | 5.00% | N/a | 150.0 | 100.0% | N/a | 6/29/2026 @ 100 | 5.00% | Neutral | ||||||
| Other debt, discounts and issuance costs | N/a | N/a | (256.0) | |||||||||||
| Total Debt | $6,231.0 | NA | NA | NA | NA | NA | NA | |||||||
| Net Debt | $6,059.0 | NA | NA | NA | NA | NA | NA | |||||||
| Adj. EBITDA | -- | -- | -- | -- | -- | -- | ||||||||
Key Financials
| 2021A | 2022A | 2023A | 2024A | 2025A | LTM | |
|---|---|---|---|---|---|---|
| Revenue | -- | -- | -- | -- | -- | -- |
| Y/Y Growth | ||||||
| Implied Costs | -- | -- | -- | -- | -- | -- |
| Adj. EBITDA | -- | -- | -- | -- | -- | -- |
| Margin | ||||||
| (-) Restructuring and other cash add-backs | -- | -- | -- | -- | -- | -- |
| Cash EBITDA | -- | -- | -- | -- | -- | -- |
| (-) Interest Expense (Cash Only) | (194) | (331) | (443) | (437) | (471) | (408) |
| (-) Capex | -- | -- | -- | -- | -- | -- |
| (+/-) Working Capital and Other | -- | -- | -- | -- | -- | -- |
| Memo: FCF | ($639) | $1,107 | $1,384 | $1,901 | $592 | $1,620 |
| % of Debt | (10.3%) | 17.8% | 22.2% | 30.5% | 9.5% | 26.0% |
Liquidity
| Unrestricted Cash | $172.0 |
| Undrawn Revolver | 3,134.0 |
| Total Liquidity | $3,306.0 |
| (-) Debt due through 2028 | (1,650.0) |
| (+/-) Free cash flow, last twelve months | 1,620.0 |
| Liquidity after maturities and a year of cash flow | $3,276.0 |
The basket review for this company has not finished yet. When it does, this tab shows the dollar capacity to move value or prime lenders, the playbook moves that fit, and what they would do to each tranche. Meanwhile, see the liability management playbook.
Key Financials
| 2021A | 2022A | 2023A | 2024A | 2025A | LTM | |
|---|---|---|---|---|---|---|
| Revenue | -- | -- | -- | -- | -- | -- |
| Y/Y Growth | ||||||
| Implied Costs | -- | -- | -- | -- | -- | -- |
| Adj. EBITDA | -- | -- | -- | -- | -- | -- |
| Margin | ||||||
| (-) Restructuring and other cash add-backs | -- | -- | -- | -- | -- | -- |
| Cash EBITDA | -- | -- | -- | -- | -- | -- |
| (-) Interest Expense (Cash Only) | (194) | (331) | (443) | (437) | (471) | (408) |
| (-) Capex | -- | -- | -- | -- | -- | -- |
| (+/-) Working Capital and Other | -- | -- | -- | -- | -- | -- |
| Memo: FCF | ($639) | $1,107 | $1,384 | $1,901 | $592 | $1,620 |
| % of Debt | (10.3%) | 17.8% | 22.2% | 30.5% | 9.5% | 26.0% |
Earnings call: Q3 2026 · Nov 5, 2026
NII rose to $0.46 a share and covered the $0.44 dividend, NAV held flat at $18.28, and non-accruals eased, but the portfolio kept shrinking as FSK bought back stock.
Takeaways
- Income stabilised at a lower level. Total investment income was $294 million, up from $290 million in Q2 but down from $373 million a year ago. NII was $127 million, or $0.46 a share, helped by a $12 million incentive fee waiver from the adviser.
- Credit losses slowed. Net realized and unrealized losses were $0.19 a share versus $0.56 in Q2 and $2.00 in Q1. Non-accruals fell to 3.4% of fair value and 6.4% of cost, from 3.8% and 7.1%.
- Leverage was steady. Debt to equity stayed at 1.27x and net debt to equity rose to 1.25x from 1.22x as the equity base shrank with buybacks. Total principal debt fell to $6.34 billion from $6.49 billion.
- Liquidity is ample at $3.4 billion, mostly $3.2 billion of undrawn facilities. About 73% of drawn debt is unsecured, at a 5.57% average cost and 3.9 year average maturity.
- The portfolio is shrinking and rotating. Fair value fell to $11.3 billion from $13.4 billion a year ago. Q3 fundings of $335 million trailed $442 million of repayments, and 87% of new buys were first lien loans.
- PIK income is a watch item at $46 million of $294 million in total income. Asset based finance fell to 11.6% of the book while preferred equity rose to 7.3%.
Debt and capital
- Rated BBB- by KBRA, Ba1 by Moody's and BB+ by Fitch.
- $900 million of 2027 notes ($400 million 2.625% due January and $500 million 3.25% due July) are fully covered by the June 2026 issue of $900 million 7.5% notes due 2031, swapped to SOFR plus 3.49%. About 90% of long-term debt matures in 2028 or later.
- Senior secured revolver of $3.79 billion has $607 million drawn and matures July 2030. Two CLOs total $743 million.
- FSK issued $150 million of convertible perpetual preferred in June 2026, paying 5% cash or 7% PIK, with a step-up after 5.5 years and a holder put after six years. It counts as leverage for regulatory purposes.
- A $300 million buyback started June 29, 2026. Through October 30 FSK bought about $90 million at an average $11.14 a share, well below NAV. The program runs to June 1, 2027.
- In Q2 management said net leverage was back within its target range after a Q1 peak of 1.31x.
Guidance
- No formal earnings guidance. The board held the regular Q4 2026 distribution at $0.44 a share, the same as Q2 and Q3, and down from $0.70 a year ago ($0.64 base plus $0.06 supplemental).
- A one-time special distribution of $0.20 a share, paid in December, to pay out part of accumulated spillover taxable income.
- The adviser's 50% subordinated incentive fee waiver runs through the quarter ending March 31, 2027, which supports NII for two more quarters.
- Management expects the portfolio to shift toward more first lien exposure as it rotates out of other assets.
Tone: Steady and defensive, with management stressing stabilisation, buybacks and portfolio rotation rather than growth.
Last quarter: Third quarter 2026
Investment income fell 21% year over year as the portfolio shrank; non-accruals eased and net debt to equity rose to 125%.
Results
- Total investment income was $294mm, down from $373mm a year earlier and up slightly from $290mm in the second quarter.
- Net investment income was $127mm, or $0.46 per share, versus $159mm a year earlier; adjusted net investment income was also $0.46 per share, up from $0.43 in the second quarter.
- Net realized and unrealized losses were $54mm, and net assets from operations rose $73mm, or $0.26 per share.
- Net asset value per share was $18.28, down from $18.30 at June 30 and $20.89 at the end of 2025.
- Investments on non-accrual were 3.4% of the portfolio at fair value and 6.4% at cost, down from 3.8% and 7.1% at June 30.
Why
- The portfolio is smaller: fair value was $11.3bn versus $13.4bn a year earlier, and sales and repayments of $442mm beat purchases of $335mm in the quarter, so interest income from unaffiliated holdings fell to $152mm from $217mm.
- A waiver of half the income incentive fee, which began in the second quarter for four quarters, cut fees by $12mm and supported net investment income.
- Net realized losses on unaffiliated holdings were $133mm, largely offset by $160mm of unrealized gains there, while controlled affiliates took a $77mm unrealized loss.
- The company bought back about 6 million shares for about $69mm at an average of $11.24, well below net asset value, which shrinks equity but adds to per share value.
Balance sheet and guidance
- Debt principal was $6,337mm and $150mm of convertible preferred stock is outstanding; debt to equity was 127% and net debt to equity 125%, up from 122% at June 30.
- Cash, cash equivalents and foreign currency were $111mm, with $3.2bn of undrawn availability under financing arrangements, subject to borrowing base limits.
- 73% of debt is unsecured and the weighted average stated rate on borrowings was 5.57%.
What to watch
- Whether non-accruals keep falling from 6.4% of cost, since the second and first quarter levels of 7.1% and 8.1% drove large NAV losses this year.
- Net debt to equity of 125% while the portfolio shrinks and buybacks continue; the company bought another $17mm of stock in October.
- Coverage of the $0.44 base distribution and the $0.20 special distribution once the incentive fee waiver, which runs for four quarters from the second quarter of 2026, comes up for board review.
Filings
Earnings releases 8
- Nov 5, 20268-K for Nov 5, 2026: Results; Regulation FD · Press release
- Aug 6, 20268-K for Aug 6, 2026: Results; Regulation FD · Press release
- May 11, 20268-K for May 10, 2026: Material agreement; Results; Regulation FD · Press release
- Apr 9, 20268-K for Apr 9, 2026: Results
- Feb 25, 20268-K for Feb 25, 2026: Results; Regulation FD · Press release
- Jan 21, 20268-K for Jan 21, 2026: Results · Press release
- Nov 5, 20258-K for Nov 5, 2025: Results; Regulation FD · Press release
- Oct 8, 20258-K for Oct 8, 2025: Results; Regulation FD · Press release
Annual reports (10-K) 5
- Feb 25, 202610-K for Dec 31, 2025
- Feb 26, 202510-K for Dec 31, 2024
- Feb 26, 202410-K for Dec 31, 2023
- Feb 27, 202310-K for Dec 31, 2022
- Feb 28, 202210-K for Dec 31, 2021
Quarterly reports (10-Q) 12
- Nov 5, 202610-Q for Sep 30, 2026
- Aug 6, 202610-Q for Jun 30, 2026
- May 11, 202610-Q for Mar 31, 2026
- Nov 5, 202510-Q for Sep 30, 2025
- Aug 6, 202510-Q for Jun 30, 2025
- May 7, 202510-Q for Mar 31, 2025
- Nov 6, 202410-Q for Sep 30, 2024
- Aug 6, 202410-Q for Jun 30, 2024
- May 8, 202410-Q for Mar 31, 2024
- Nov 6, 202310-Q for Sep 30, 2023
- Aug 7, 202310-Q for Jun 30, 2023
- May 5, 202310-Q for Mar 31, 2023
Current reports (8-K) 20
- Oct 8, 20268-K for Oct 7, 2026: Regulation FD
- Aug 20, 20268-K for Aug 20, 2026: Shareholder vote
- Aug 13, 20268-K for Aug 13, 2026: Regulation FD
- Jul 9, 20268-K for Jul 9, 2026: Regulation FD
- Jun 29, 20268-K for Jun 29, 2026: Material agreement; Bylaw change; Regulation FD; Other event
- Jun 18, 20268-K for Jun 18, 2026: Shareholder vote
- Jun 8, 20268-K for Jun 8, 2026: Material agreement; New debt; Regulation FD
- Jun 3, 20268-K for Jun 1, 2026: Material agreement
- Jun 2, 20268-K for Jun 1, 2026: Material agreement
- Jun 2, 20268-K for Jun 2, 2026: Regulation FD
- May 18, 20268-K for May 18, 2026: Regulation FD
- May 12, 20268-K for May 10, 2026: Equity sold
- Apr 28, 20268-K for Apr 28, 2026: Regulation FD
- Apr 10, 20268-K for Apr 10, 2026: Regulation FD
- Mar 24, 20268-K for Mar 24, 2026: Regulation FD
- Mar 5, 20268-K for Mar 5, 2026: Regulation FD
- Dec 23, 20258-K for Dec 18, 2025: Material agreement
- Nov 13, 20258-K for Nov 13, 2025: Regulation FD
- Sep 25, 20258-K for Sep 25, 2025: Material agreement; New debt; Regulation FD
- Sep 22, 20258-K for Sep 18, 2025: Material agreement
Proxy statements 3
- Apr 30, 2026DEF 14A for Jun 18, 2026
- Apr 25, 2025DEF 14A for Jun 18, 2025
- Apr 26, 2024DEF 14A for Jun 21, 2024
Rating actions
- Invalid DateMoody's: Downgraded to Ba1 from Baa3, outlook stable (was negative). Term sheets show the senior unsecured notes fell below investment grade at Moody's; exact action date not confirmed from public sources. · source
- Invalid DateFitch: Downgraded to BB+ from BBB-, outlook negative. Term sheets show Fitch cut the notes below investment grade and kept a negative outlook; exact action date not confirmed from public sources. · source
- Invalid DateKBRA: Downgraded to BBB- from BBB, outlook stable. Term sheets show KBRA lowered the notes by one notch while staying investment grade; exact action date not confirmed. · source
- Invalid DateFitch: Outlook revised to negative from stable, BBB- affirmed. Term sheets show Fitch moved the outlook to negative at BBB-; exact action date not confirmed. · source
Coming up
- Jan 15, 2027Maturity. 2.625% Notes due 2027: $400mm outstanding comes due.
- Feb 24, 2027Results. Full-year results for the period ending 2026-12-31. The date is an estimate: last year's filing date moved forward a year.
- Jul 15, 2027Maturity. 3.250% Notes due 2027: $500mm outstanding comes due.
- Oct 12, 2028Maturity. 3.125% Notes due 2028: $750mm outstanding comes due.
Recent 8-K filings
- Nov 5, 2026Reported results; Regulation FD disclosure
- Oct 8, 2026Regulation FD disclosure
- Aug 20, 2026Shareholder vote
- Aug 13, 2026Regulation FD disclosure
- Aug 6, 2026Reported results; Regulation FD disclosure
- Jul 9, 2026Regulation FD disclosure
- Jun 29, 2026Entered into a material agreement; Regulation FD disclosure; Other event
- Jun 18, 2026Shareholder vote