10-Q 1 d235201d10q.htm 10-Q 10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

COMMISSION FILE NUMBER: 814-00757

 

 

FS KKR Capital Corp.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   26-1630040

(State of

Incorporation)

 

(I.R.S. Employer

Identification Number)

201 Rouse Boulevard

Philadelphia, Pennsylvania

  19112
(Address of principal executive offices)   (Zip Code)

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.

 

Large accelerated filer      Accelerated filer  
Non-accelerated filer      Smaller reporting company  
     Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒.

Securities registered pursuant to Section 12(b) of the Act.

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common stock, par value $0.001   FSK   New York Stock Exchange

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

There were 284,017,020 shares of the registrant’s common stock outstanding as of April 30, 2022.

 

 

 


Table of Contents

TABLE OF CONTENTS

 

         Page  

PART I—FINANCIAL INFORMATION

 

ITEM 1.

 

FINANCIAL STATEMENTS

     1  
 

Consolidated Balance Sheets as of March  31, 2022 (Unaudited) and December 31, 2021

     1  
 

Unaudited Consolidated Statements of Operations for the three months ended March 31, 2022 and 2021

     2  
 

Unaudited Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2022 and 2021

     3  
 

Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2022 and 2021

     4  
 

Consolidated Schedules of Investments as of March  31, 2022 (Unaudited) and December 31, 2021

     5  
 

Notes to Unaudited Consolidated Financial Statements

     67  

ITEM 2.

 

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

     118  

ITEM 3.

 

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     135  

ITEM 4.

 

CONTROLS AND PROCEDURES

     137  

PART II—OTHER INFORMATION

  

ITEM 1.

 

LEGAL PROCEEDINGS

     139  

ITEM 1A.    

 

RISK FACTORS

     139  

ITEM 2.

 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

     139  

ITEM 3.

 

DEFAULTS UPON SENIOR SECURITIES

     140  

ITEM 4.

 

MINE SAFETY DISCLOSURES

     140  

ITEM 5.

 

OTHER INFORMATION

     140  

ITEM 6.

 

EXHIBITS

     141  
  SIGNATURES      149  


Table of Contents

PART I—FINANCIAL INFORMATION

 

Item 1.

Financial Statements.

FS KKR Capital Corp.

Consolidated Balance Sheets

(in millions, except share and per share amounts)

 

 

 

     March 31,
2022
(Unaudited)
    December 31,
2021
 

Assets

    

Investments, at fair value

    

Non-controlled/unaffiliated investments (amortized cost—$12,374 and $12,419, respectively)

   $ 12,473     $ 12,558  

Non-controlled/affiliated investments (amortized cost—$1,048 and $860, respectively)

     1,077       859  

Controlled/affiliated investments (amortized cost—$3,061 and $2,778, respectively)

     3,004       2,684  
  

 

 

   

 

 

 

Total investments, at fair value (amortized cost—$16,483 and $16,057, respectively)

     16,554       16,101  

Cash

     362       258  

Foreign currency, at fair value (cost—$7 and $119, respectively)

     7       119  

Receivable for investments sold and repaid

     856       567  

Income receivable

     176       153  

Unrealized appreciation on foreign currency forward contracts

     10       9  

Deferred financing costs

     15       16  

Prepaid expenses and other assets

     5       5  
  

 

 

   

 

 

 

Total assets

   $ 17,985     $ 17,228  
  

 

 

   

 

 

 

Liabilities

    

Payable for investments purchased

   $ 33     $ 2  

Debt (net of deferred financing costs of $42 and $38, respectively)(1)

     9,835       9,142  

Unrealized depreciation on foreign currency forward contracts

     1       1  

Stockholder distributions payable

     179       176  

Management fees payable

     62       60  

Subordinated income incentive fees payable(2)

     25       19  

Administrative services expense payable

     7       5  

Interest payable

     66       70  

Other accrued expenses and liabilities

     10       23  
  

 

 

   

 

 

 

Total liabilities

     10,218       9,498  
  

 

 

   

 

 

 

Commitments and contingencies(3)

    

Stockholders’ equity

    

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

     —         —    

Common stock, $0.001 par value, 750,000,000 shares authorized, 284,138,163 and 284,543,091 shares issued and outstanding, respectively

     0       0  

Capital in excess of par value

     9,649       9,658  

Retained earnings (accumulated deficit)(4)

     (1,882     (1,928
  

 

 

   

 

 

 

Total stockholders’ equity

     7,767       7,730  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 17,985     $ 17,228  
  

 

 

   

 

 

 

Net asset value per share of common stock at period end

   $ 27.33     $ 27.17  

 

(1)

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

(2)

See Note 2 and 4 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.

(3)

See Note 10 for a discussion of the 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.

 

1


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Operations

(in millions, except share and per share amounts)

 

 

 

     Three Months Ended
March 31,
 
     2022     2021  

Investment income

    

Interest income

   $ 241     $ 87  

Paid-in-kind interest income

     18       10  

Fee income

     27       11  

Dividend and other income

     8       4  

From non-controlled/affiliated investments:

    

Interest income

     10       3  

Paid-in-kind interest income

     11       6  

Fee income

     2       —    

Dividend and other income

     5       0  

From controlled/affiliated investments:

    

Interest income

     10       2  

Paid-in-kind interest income

     14       1  

Fee income

     0       —    

Dividend and other income

     50       27  
  

 

 

   

 

 

 

Total investment income

     396       151  
  

 

 

   

 

 

 

Operating expenses

    

Management fees

     62       25  

Subordinated income incentive fees(1)

     40       —    

Administrative services expenses

     4       2  

Accounting and administrative fees

     1       1  

Interest expense(2)

     77       42  

Other general and administrative expenses

     7       3  
  

 

 

   

 

 

 

Total operating expenses

     191       73  

Incentive fee waiver(1)

     (15     —    
  

 

 

   

 

 

 

Net expenses

     176       73  
  

 

 

   

 

 

 

Net investment income

     220       78  
  

 

 

   

 

 

 

Realized and unrealized gain/loss

    

Net realized gain (loss) on investments:

    

Non-controlled/unaffiliated investments

     (26     (83

Non-controlled/affiliated investments

     (6     —    

Controlled/affiliated investments

     —         (43

Net realized gain (loss) on foreign currency forward contracts

     5       —    

Net realized gain (loss) on foreign currency

     1       (2

Net change in unrealized appreciation (depreciation) on investments:

    

Non-controlled/unaffiliated investments

     (40     109  

Non-controlled/affiliated investments

     30       27  

Controlled/affiliated investments

     37       106  

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

     1       1  

Net change in unrealized gain (loss) on foreign currency

     3       6  
  

 

 

   

 

 

 

Total net realized and unrealized gain (loss)

   $ 5     $ 121  
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ 225     $ 199  
  

 

 

   

 

 

 

Per share information—basic and diluted

    

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

   $ 0.79     $ 1.61  
  

 

 

   

 

 

 

Weighted average shares outstanding

     284,323,542       123,755,965  
  

 

 

   

 

 

 

 

(1)

See Note 2 and 4 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.

(2)

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

See notes to unaudited consolidated financial statements.

 

2


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Changes in Net Assets

(in millions)

 

 

 

     Three Months Ended
March 31,
 
         2022             2021      

Operations

    

Net investment income (loss)

   $ 220     $ 78  

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

     (26     (128

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

     28       243  

Net change in unrealized gain (loss) on foreign currency

     3       6  
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     225       199  
  

 

 

   

 

 

 

Stockholder distributions(2)

    

Distributions to stockholders

     (179     (74
  

 

 

   

 

 

 

Net decrease in net assets resulting from stockholder distributions

     (179     (74
  

 

 

   

 

 

 

Capital share transactions(3)

    

Repurchases of common stock

     (9     —    
  

 

 

   

 

 

 

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

     (9     —    
  

 

 

   

 

 

 

Total increase (decrease) in net assets

     37       125  

Net assets at beginning of period

     7,730       3,096  
  

 

 

   

 

 

 

Net assets at end of period

   $ 7,767     $ 3,221  
  

 

 

   

 

 

 

 

(1)

See Note 7 for a discussion of these financial instruments.

(2)

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

(3)

See Note 3 for a discussion of the Company’s capital share transactions.

See notes to unaudited consolidated financial statements.

 

3


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Cash Flows

(in millions)

 

 

 

     Three Months Ended
March 31,
 
         2022             2021      

Cash flows from operating activities

    

Net increase (decrease) in net assets resulting from operations

   $ 225     $ 199  

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

    

Purchases of investments

     (2,068     (417

Paid-in-kind interest

     (34     (15

Proceeds from sales and repayments of investments

     1,673       877  

Net realized (gain) loss on investments

     32       126  

Net change in unrealized (appreciation) depreciation on investments

     (27     (242

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

     (1     (1

Accretion of discount

     (29     (6

Amortization of deferred financing costs and discount

     3       3  

Unrealized (gain)/loss on borrowings in foreign currency

     (6     (6

(Increase) decrease in receivable for investments sold and repaid

     (289     (90

(Increase) decrease in income receivable

     (23     —    

(Increase) decrease in deferred merger costs

     —         (1

(Increase) decrease in prepaid expenses and other assets

     —         (2

Increase (decrease) in payable for investments purchased

     31       —    

Increase (decrease) in management fees payable

     2       —    

Increase (decrease) in subordinated income incentive fees payable

     6       —    

Increase (decrease) in administrative services expense payable

     2       1  

Increase (decrease) in interest payable

     (4     16  

Increase (decrease) in other accrued expenses and liabilities

     (13     (7
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (520     435  

Cash flows from financing activities

    

Repurchases of common stock

     (9     —    

Stockholder distributions

     (176     (74

Borrowings under financing arrangements(1)

     1,613       245  

Repayments of financing arrangements(1)

     (907     (648

Deferred financing costs paid

     (9     —    
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     512       (477
  

 

 

   

 

 

 

Total increase (decrease) in cash

     (8     (42

Cash, and foreign currency at beginning of period

     377       191  
  

 

 

   

 

 

 

Cash, and foreign currency at end of period

   $ 369     $ 149  
  

 

 

   

 

 

 

Supplemental disclosure

    

Non-cash purchases of investments

   $ (242   $ (32
  

 

 

   

 

 

 

Non-cash sales of investments

   $ 242     $ 32  
  

 

 

   

 

 

 

Local and excise taxes paid

   $ 11     $ 10  
  

 

 

   

 

 

 

 

(1)

See Note 9 for a discussion of the Company’s financing arrangements. During the three months ended March 31, 2022 and 2021, the Company paid $78 and $23, respectively, in interest expense on the financing arrangements.

See notes to unaudited consolidated financial statements.

 

4


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

 

Footnotes

 

Industry

 

Rate(b)

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

Senior Secured Loans—First Lien—127.8%

                 

3Pillar Global Inc

  (i)(k)(l)   Software & Services   L+575     0.8   11/23/27   $     96.0     $ 95.1     $ 94.9  

3Pillar Global Inc

  (x)   Software & Services   L+600     0.8   11/23/26       9.2       9.2       9.1  

3Pillar Global Inc

  (x)   Software & Services   L+600     0.8   11/23/27       30.6       30.6       30.2  

48Forty Solutions LLC

  (v)   Commercial & Professional Services   SF+575     1.0   11/30/26       4.2       4.2       4.2  

48Forty Solutions LLC

  (f)(k)(l)(t)(v)   Commercial & Professional Services   SF+575     1.0   11/30/26       183.6       181.8       181.8  

48Forty Solutions LLC

  (x)   Commercial & Professional Services   SF+575     1.0   11/30/26       6.4       6.4       6.3  

5 Arch Income Fund 2 LLC

  (q)(r)(w)(y)(z)   Diversified Financials   9.0%     11/18/23       108.1       79.2       75.6  

Accuride Corp

  (aa)(l)   Capital Goods   L+525     1.0   11/17/23       9.0       8.2       8.5  

Advanced Dermatology & Cosmetic Surgery

  (m)(t)(v)   Health Care Equipment & Services   L+625     1.0   5/7/27       46.4       44.6       46.5  

Advanced Dermatology & Cosmetic Surgery

  (x)   Health Care Equipment & Services   L+625     1.0   5/7/26       3.6       3.6       3.6  

Advanced Dermatology & Cosmetic Surgery

  (x)   Health Care Equipment & Services   L+625     1.0   5/7/27       2.5       2.5       2.5  

Advania Sverige AB

  (v)(w)   Software & Services   SR+610, 0.0% PIK (3.3% Max PIK)     0.0   4/28/28   SEK     629.4       68.0       66.3  

Advania Sverige AB

  (v)(w)   Software & Services   R+610, 0.0% PIK (3.3% Max PIK)     0.0   4/28/28   ISK     1,345.8       10.0       10.4  

Advania Sverige AB

  (w)(x)   Software & Services   SR+610, 0.0% PIK (3.3% Max PIK)     0.0   4/28/28   SEK     304.1       37.5       37.1  

Affordable Care Inc

  (ac)(m)(v)   Health Care Equipment & Services   L+550, 0.0% PIK (1.3% Max PIK)     0.8   8/2/28   $     39.3       38.9       39.0  

Affordable Care Inc

  (ac)(x)   Health Care Equipment & Services   L+550, 0.0% PIK (1.3% Max PIK)     0.8   8/2/27       12.8       12.8       12.8  

Affordable Care Inc

  (ac)(x)   Health Care Equipment & Services   L+550, 0.0% PIK (1.3% Max PIK)     0.8   8/2/28       43.1       43.1       42.9  

Alacrity Solutions Group LLC

  (v)   Insurance   L+525     0.8   12/22/27       0.7       0.5       0.7  

Alacrity Solutions Group LLC

  (v)   Insurance   L+525     0.8   12/22/28       48.5       47.8       47.6  

Alacrity Solutions Group LLC

  (x)   Insurance   L+525     0.8   12/22/27       10.1       10.1       9.9  

Alera Group Intermediate Holdings Inc

  (v)   Insurance   L+550     0.8   10/2/28       8.9       8.9       8.8  

Alera Group Intermediate Holdings Inc

  (x)   Insurance   L+550     0.8   10/2/28       22.9       22.9       22.6  

American Vision Partners

  (i)(v)   Health Care Equipment & Services   L+575     0.8   9/30/27       74.8       74.1       74.1  

 

See notes to unaudited consolidated financial statements.

 

5


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

 

Footnotes

 

Industry

 

Rate(b)

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

American Vision Partners

  (x)   Health Care Equipment & Services   L+575     0.8   9/30/26     $       7.8     $ 7.8     $ 7.7  

American Vision Partners

  (x)   Health Care Equipment & Services   L+575     0.8   9/30/27       38.9       38.9       38.6  

Amerivet Partners Management Inc

  (v)   Health Care Equipment & Services   SF+550     0.8   2/25/28       96.1       95.2       94.2  

Amerivet Partners Management Inc

  (x)   Health Care Equipment & Services   SF+550     0.8   2/25/28       8.4       8.4       8.2  

Amerivet Partners Management Inc

  (x)   Health Care Equipment & Services   SF+550     0.8   2/25/28       67.3       67.3       66.0  

Amtek Global Technology Pte Ltd

  (ad)(v)(w)(y)(z)   Automobiles & Components   E+500 PIK (E+500 Max PIK)     0.0   4/4/24           57.9       68.7       30.0  

Arcfield Acquisition Corp

  (i)(v)   Capital Goods   L+575     0.8%     3/10/28     $       40.6       40.2       40.2  

Arcfield Acquisition Corp

  (x)   Capital Goods   L+575     0.8%     3/10/27       7.1       7.1       7.1  

Arcos LLC/VA

  (m)   Software & Services   L+575     1.0%     3/31/28       12.4       12.2       12.2  

Arcos LLC/VA

  (x)   Software & Services   L+575     1.0%     4/20/27       4.5       4.5       4.4  

Ardonagh Group Ltd

  (v)(w)   Insurance   SA+700     0.8%     7/14/26     £       0.8       1.0       1.0  

Ardonagh Group Ltd

  (w)(x)   Insurance   L+575     1.0%     7/14/26       16.7       22.8       22.0  

Arrotex Australia Group Pty Ltd

  (v)(w)   Pharmaceuticals, Biotechnology & Life Sciences   B+525     1.0%     7/10/24     A$       42.60       30.6       31.9  

Arrotex Australia Group Pty Ltd

  (v)(w)   Pharmaceuticals, Biotechnology & Life Sciences   B+525     1.0%     7/10/24       3.1       2.2       2.3  

Aspect Software Inc

  (v)   Software & Services   8.0% PIK (8.0% Max PIK)     7/14/22     $       0.3       0.2       0.3  

athenahealth Inc

  (ac)(aa)(v)   Health Care Equipment & Services   SF+350     0.5%     2/15/29       6.9       6.8       6.8  

athenahealth Inc

  (ac)(aa)(x)   Health Care Equipment & Services   SF+350     0.5%     2/15/29       1.2       1.2       1.2  

ATX Networks Corp

  (ad)(s)(v)(w)   Capital Goods   L+750 PIK (L+750 Max PIK)     1.0%     9/1/26       46.6       46.6       46.6  

AxiomSL Ltd

  (f)(m)(t)(v)   Software & Services   L+600     1.0%     12/3/27       35.0       34.3       34.3  

AxiomSL Ltd

  (x)   Software & Services   L+600     1.0%     12/3/25       2.5       2.4       2.4  

AxiomSL Ltd

  (x)   Software & Services   L+600     1.0%     12/3/27       2.3       2.3       2.2  

Barbri Inc

  (f)(k)(l)(m)(t)(v)   Consumer Services   L+575     0.8%     4/28/28       92.1       88.0       91.7  

Barbri Inc

  (k)(l)   Consumer Services   L+575     0.8%     4/30/28       35.0       34.7       34.9  

Barbri Inc

  (x)   Consumer Services   L+575     0.8%     4/30/28       14.8       14.8       14.7  

Belk Inc

  (aa)(ac)(v)   Retailing   L+750     1.0%     7/31/25       21.9       21.8       21.8  

Belk Inc

  (aa)(ac)(v)   Retailing   5.0%, 8.0% PIK (8.0% Max PIK)     7/31/25       67.8       41.2       44.3  

BGB Group LLC

  (f)(i)(k)(l)(m)(t)   Media & Entertainment   L+575     1.0%     8/16/27       111.9       110.9       110.5  

BGB Group LLC

  (x)   Media & Entertainment   L+575     1.0%     8/16/27       19.9       19.9       19.7  

 

See notes to unaudited consolidated financial statements.

 

6


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Bowery Farming Inc

  (v)   Food, Beverage & Tobacco   L+1,000   1.0%   4/30/26     $       75.0     $ 74.3     $ 69.7  

Caldic BV

  (aa)(ab)(v)(w)   Retailing   SF+400   0.5%   2/4/29       1.4       1.4       1.4  

Caldic BV

  (aa)(v)(w)   Retailing   E+400   0.0%   2/4/29           0.8       0.9       0.9  

Cimarron Energy Inc

  (v)(y)(z)   Energy   L+900   1.0%   12/31/24     $       7.5       5.4       4.3  

Clarience Technologies LLC

  (v)   Capital Goods   L+625   1.0%   12/13/24       2.2       2.0       2.2  

Clarience Technologies LLC

  (f)(i)(k)(m)(s)(v)   Capital Goods   L+625   1.0%   12/14/26       267.3       257.0       269.9  

Clarience Technologies LLC

  (v)   Capital Goods   L+625   1.0%   12/31/26       18.1       17.6       18.2  

Clarience Technologies LLC

  (x)   Capital Goods   L+625   1.0%   12/13/24       23.3       23.3       23.3  

Clarience Technologies LLC

  (x)   Capital Goods   L+625   1.0%   12/31/26       10.8       10.8       10.9  

Community Brands Inc

  (v)   Software & Services   SF+575   0.8%   2/23/28       33.0       32.3       32.3  

Community Brands Inc

  (x)   Software & Services   SF+575   0.8%   2/23/28       3.9       3.8       3.8  

Community Brands Inc

  (x)   Software & Services   SF+575   0.8%   2/23/28       1.9       1.9       1.9  

Constellis Holdings LLC

  (ac)(v)   Capital Goods   L+750   1.0%   3/27/24       15.0       14.1       15.0  

Corsearch Intermediate Inc

  (m)(v)   Software & Services   L+550   1.0%   4/19/28       30.1       28.4       30.0  

Corsearch Intermediate Inc

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

CSafe Global

  (f)(i)(k)(l)(m)(t)(v)   Capital Goods   L+625   0.8%   12/23/27       188.3       182.3       188.5  

CSafe Global

  (v)   Capital Goods   L+625   0.8%   12/23/27     £       27.4       36.2       36.0  

CSafe Global

  (v)   Capital Goods   L+625   0.8%   8/13/28     $       11.9       11.9       11.9  

CSafe Global

  (x)   Capital Goods   L+625   0.8%   12/23/26       34.9       34.9       34.7  

Dental Care Alliance Inc

  (f)(k)(m)(t)(v)   Health Care Equipment & Services   SF+600   0.8%   4/3/28       125.9       121.8       125.2  

Dental Care Alliance Inc

  (x)   Health Care Equipment & Services   SF+600   0.8%   4/3/28       12.3       12.3       12.2  

Element Materials Technology Group US Holdings Inc

  (aa)(v)(w)   Commercial & Professional Services   L+350   1.0%   6/28/24       1.9       1.9       1.9  

Encora Digital Inc

  (v)   Software & Services   L+550, 0.0% PIK (2.4% Max PIK)   0.5%   12/13/28       65.1       63.8       63.6  

Encora Digital Inc

  (x)   Software & Services   L+550   0.5%   12/13/28       19.6       19.4       19.2  

Entertainment Benefits Group LLC

  (v)   Media & Entertainment   L+575   1.0%   9/30/24       0.4       0.4       0.4  

Entertainment Benefits Group LLC

  (f)(k)(l)(m)(v)   Media & Entertainment   L+575   1.0%   9/30/25       64.1       59.3       64.1  

Entertainment Benefits Group LLC

  (x)   Media & Entertainment   L+575   1.0%   9/30/24       10.2       9.6       10.2  

Fairway Group Holdings Corp

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

Fairway Group Holdings Corp

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

 

See notes to unaudited consolidated financial statements.

 

7


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Follett Software Co

  (f)(k)(l)(t)   Software & Services   L+575   0.8%   8/31/28     $       74.2     $ 73.5     $ 73.6  

Follett Software Co

  (x)   Software & Services   L+575   0.8%   8/31/27       9.9       9.9       9.8  

Foundation Consumer Brands LLC

  (m)(v)   Pharmaceuticals, Biotechnology & Life Sciences   L+550   1.0%   2/12/27       97.1       93.2       98.0  

Foundation Consumer Brands LLC

  (x)   Pharmaceuticals, Biotechnology & Life Sciences   L+550   1.0%   2/12/27       6.6       6.6       6.6  

Foundation Risk Partners Corp

  (v)   Insurance   L+575   0.8%   10/29/28       77.9       76.8       76.8  

Foundation Risk Partners Corp

  (x)   Insurance   L+575   0.8%   10/29/27       7.0       6.9       6.9  

Foundation Risk Partners Corp

  (x)   Insurance   L+575   0.8%   10/29/28       2.6       2.6       2.5  

Frontline Technologies Group LLC

  (i)(m)(v)   Software & Services   L+525   1.0%   9/18/23       23.1       23.0       23.1  

Frontline Technologies Group LLC

  (s)(v)   Software & Services   L+525   1.0%   9/18/23       38.0       36.1       38.1  

Galaxy Universal LLC

  (v)   Consumer Durables & Apparel   S+575   1.0%   11/12/26       88.7       88.7       89.6  

Galaxy Universal LLC

  (v)   Consumer Durables & Apparel   L+500   1.0%   11/12/26       26.0       25.7       26.0  

Galway Partners Holdings LLC

  (k)(l)(t)(v)   Insurance   L+525, 0.0% PIK (1.3% Max PIK)   0.8%   9/29/28       112.9       110.7       110.3  

Galway Partners Holdings LLC

  (x)   Insurance   L+525, 0.0% PIK (1.3% Max PIK)   0.8%   9/30/27       12.0       11.7       11.7  

Galway Partners Holdings LLC

  (x)   Insurance   L+525, 0.0% PIK (1.3% Max PIK)   0.8%   9/29/28       20.4       20.4       19.9  

General Datatech LP

  (f)(k)(l)(m)(t)(v)   Software & Services   L+625   1.0%   6/18/27       168.0       166.5       163.0  

Gigamon Inc

  (v)   Software & Services   SF+575   0.8%   3/12/29       175.5       173.7       173.7  

Gigamon Inc

  (x)   Software & Services   SF+575   0.8%   3/13/28       9.3       9.3       9.3  

Greystone Equity Member Corp

  (v)(w)   Diversified Financials   L+725   3.8%   4/1/26       194.8       183.2       187.5  

Heniff Transportation Systems LLC

  (v)   Transportation   L+575   1.0%   12/3/24       6.2       6.0       5.9  

Heniff Transportation Systems LLC

  (f)(i)(k)(l)(m)(v)   Transportation   L+575   1.0%   12/3/26       137.3       130.4       129.0  

Heniff Transportation Systems LLC

  (v)   Transportation   L+625   1.0%   12/3/26       19.3       18.6       18.5  

Heniff Transportation Systems LLC

  (x)   Transportation   L+575   1.0%   12/3/24       11.6       11.6       10.9  

Hibu Inc

  (f)(k)(l)(m)(t)(v)   Commercial & Professional Services   L+625   1.0%   5/4/27       100.9       96.1       102.9  

Higginbotham Insurance Agency Inc

  (v)   Insurance   L+550   0.8%   11/25/26       8.3       7.8       8.5  

Higginbotham Insurance Agency Inc

  (x)   Insurance   L+550   0.8%   11/25/26       9.1       9.1       9.3  

HM Dunn Co Inc

  (ad)(v)   Capital Goods   L+600 PIK (L+600 Max PIK)   1.0%   6/30/26       34.0       34.0       34.0  

 

See notes to unaudited consolidated financial statements.

 

8


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

HM Dunn Co Inc

  (ad)(x)   Capital Goods   L+600 PIK (L+600 Max PIK)   1.0%   6/30/26   $       2.0     $ 2.0     $ 2.0  

Individual FoodService

  (v)   Capital Goods   L+625   1.0%   11/22/24       0.8       0.8       0.8  

Individual FoodService

  (m)(s)(v)   Capital Goods   L+625   1.0%   11/22/25       98.4       94.3       99.0  

Individual FoodService

  (x)   Capital Goods   L+625   1.0%   11/22/24       3.9       3.9       3.9  

Individual FoodService

  (x)   Capital Goods   L+625   1.0%   11/22/25       4.7       4.7       4.8  

Industria Chimica Emiliana Srl

  (v)(w)   Pharmaceuticals, Biotechnology & Life Sciences   E+725   0.0%   9/27/26         88.8       101.5       97.8  

Industry City TI Lessor LP

  (s)(v)   Consumer Services   10.8%, 1.0% PIK (1.0% Max PIK)     6/30/26   $         28.9       28.9       30.9  

Insight Global LLC

  (v)   Commercial & Professional Services   L+600   0.8%   9/22/27       4.2       4.2       4.1  

Insight Global LLC

  (i)(v)   Commercial & Professional Services   L+600   0.8%   9/22/28       204.8       202.9       201.1  

Insight Global LLC

  (x)   Commercial & Professional Services   L+600   0.8%   9/22/27       16.8       16.8       16.5  

Insight Global LLC

  (x)   Commercial & Professional Services   L+600   0.8%   9/22/28       26.8       26.8       26.4  

Integrity Marketing Group LLC

  (x)   Insurance   L+550   0.8%   8/27/25       145.3       145.3       144.0  

J S Held LLC

  (f)(i)(m)(s)(v)   Insurance   L+550   1.0%   7/1/25       103.8       101.2       103.8  

J S Held LLC

  (v)   Insurance   L+550   1.0%   7/1/25       1.1       0.9       1.1  

J S Held LLC

  (v)   Insurance   L+550   1.0%   7/1/25       22.4       22.4       22.6  

J S Held LLC

  (f)(v)   Insurance   SF+550   1.0%   7/1/25       20.1       20.1       20.1  

J S Held LLC

  (x)   Insurance   L+550   1.0%   7/1/25       13.0       13.0       13.0  

J S Held LLC

  (x)   Insurance   SF+550   1.0%   7/1/25       24.2       24.2       24.2  

Jarrow Formulas Inc

  (f)(i)(k)(l)(m)(s)(t)(v)   Household & Personal Products   L+625   1.0%   11/30/26       185.4       176.4       189.1  

Karman Space Inc

  (m)(v)   Capital Goods   L+700   1.0%   12/21/25       91.8       88.4       93.6  

Karman Space Inc

  (v)   Capital Goods   L+700   1.0%   12/21/25       4.4       4.2       4.4  

Karman Space Inc

  (x)   Capital Goods   L+700   1.0%   12/21/25       1.1       1.1       1.1  

Kellermeyer Bergensons Services LLC

  (f)(i)(k)(l)(m)(s)(t)(v)   Commercial & Professional Services   L+600   1.0%   11/7/26       371.8       360.2       369.1  

Lakefield Veterinary Group

  (f)(i)(v)   Health Care Equipment & Services   L+550   0.8%   11/23/28       99.4       98.6       97.4  

Lakefield Veterinary Group

  (x)   Health Care Equipment & Services   L+550   0.8%   11/23/28       44.9       44.9       44.0  

Lakeview Farms Inc

  (l)(m)(v)   Food, Beverage & Tobacco   L+625   1.0%   6/10/27       76.9       75.1       75.8  

Lakeview Farms Inc

  (v)   Food, Beverage & Tobacco   L+625   1.0%   6/10/27       4.2       4.2       4.1  

Lakeview Farms Inc

  (x)   Food, Beverage & Tobacco   L+625   1.0%   6/10/27       10.8       10.8       10.7  

Lakeview Farms Inc

  (x)   Food, Beverage & Tobacco   L+625   1.0%   6/10/27       2.6       2.6       2.5  

Lexitas Inc

  (i)(k)(l)(m)(v)   Commercial & Professional Services   L+600   1.0%   11/14/25       111.5       108.2       112.6  

 

See notes to unaudited consolidated financial statements.

 

9


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Lexitas Inc

  (x)   Commercial & Professional Services   L+600   1.0%   11/14/25     $       5.4     $ 5.4     $ 5.4  

Lexitas Inc

  (x)   Commercial & Professional Services   L+600   1.0%   11/14/25       5.4       5.4       5.4  

Lionbridge Technologies Inc

  (f)(k)(s)(t)   Consumer Services   L+700   1.0%   12/29/25       68.0       63.4       69.1  

Lipari Foods LLC

  (f)(m)(s)(v)   Food & Staples Retailing   L+575   1.0%   1/6/25       272.0       261.9       272.0  

Lloyd’s Register Quality Assurance Ltd

  (w)(x)   Consumer Services   SA+600, 0.0% PIK (6.3% Max PIK)   0.0%   12/2/28     £       15.0       20.0       19.4  

Matchesfashion Ltd

  (v)(w)   Consumer Durables & Apparel   L+463, 3.0% PIK (3.0% Max PIK)   0.0%   10/11/24     $       12.9       12.5       8.1  

MB2 Dental Solutions LLC

  (k)(l)(m)(t)(v)   Health Care Equipment & Services   L+600   1.0%   1/29/27       246.1       235.9       246.3  

MB2 Dental Solutions LLC

  (x)   Health Care Equipment & Services   L+600   1.0%   1/29/27       41.0       41.0       41.1  

Medallia Inc

  (v)   Software & Services   L+675 PIK (L+675 Max PIK)   0.8%   10/29/28       168.5       166.9       166.8  

Med-Metrix

  (v)   Software & Services   L+600   1.0%   9/15/27       56.5       56.1       56.4  

Med-Metrix

  (x)   Software & Services   L+600   1.0%   9/15/27       25.0       25.0       25.0  

Med-Metrix

  (x)   Software & Services   L+600   1.0%   9/15/27       7.8       7.8       7.8  

Miami Beach Medical Group LLC

  (k)(l)(m)(t)(v)   Health Care Equipment & Services   L+650   1.0%   12/14/26       180.1       171.3       173.1  

Monitronics International Inc

  (aa)(f)(v)   Commercial & Professional Services   L+750   1.3%   3/29/24       18.8       17.3       15.5  

Monitronics International Inc

  (v)   Commercial & Professional Services   L+600   1.5%   7/3/24       60.8       58.5       58.0  

Monitronics International Inc

  (x)   Commercial & Professional Services   L+600   1.5%   7/3/24       9.2       9.2       8.7  

Motion Recruitment Partners LLC

  (v)   Commercial & Professional Services   L+650   1.0%   12/19/25       4.8       4.5       4.8  

Motion Recruitment Partners LLC

  (m)(t)(v)   Commercial & Professional Services   L+650   1.0%   12/22/25       55.1       51.0       55.2  

Motion Recruitment Partners LLC

  (f)(i)(v)   Commercial & Professional Services   SF+650   1.0%   12/22/25       64.5       64.5       64.7  

Motion Recruitment Partners LLC

  (x)   Commercial & Professional Services   L+650   1.0%   12/19/25       59.6       59.6       59.7  

NBG Home

  (v)   Consumer Durables & Apparel   L+550   1.0%   4/26/24       67.4       67.2       50.8  

NCI Inc

  (v)   Software & Services   L+750, 0.0% PIK (2.5% Max PIK)   1.0%   8/15/24       78.3       77.3       72.5  

Net Documents

  (v)   Software & Services   L+650   1.0%   6/30/27       24.6       24.4       24.1  

Net Documents

  (v)   Software & Services   L+675   1.0%   6/30/27       0.7       0.7       0.7  

Net Documents

  (x)   Software & Services   L+675   1.0%   6/30/27       2.3       2.3       2.2  

Net Documents

  (x)   Software & Services   L+675   1.0%   6/30/27       7.4       7.3       7.2  

New Era Technology Inc

  (i)(l)(m)(t)(v)   Software & Services   L+625   1.0%   10/31/26       86.7       83.0       86.8  

New Era Technology Inc

  (v)   Software & Services   L+625   1.0%   10/31/26       2.7       2.7       2.7  

New Era Technology Inc

  (x)   Software & Services   L+625   1.0%   10/31/26       9.3       9.3       9.4  

 

See notes to unaudited consolidated financial statements.

 

10


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

New Era Technology Inc

  (x)   Software & Services   L+625   1.0%   10/31/26     $       1.9     $ 1.9     $ 1.9  

Novotech Pty Ltd

  (w)(x)   Health Care Equipment & Services   SF+575   0.5%   1/13/28       5.7       5.6       5.6  

Omnimax International Inc

  (f)(i)(k)(l)(m)(v)   Capital Goods   L+725   1.0%   10/8/26       197.9       189.4       195.0  

One Call Care Management Inc

  (aa)(ad)(v)   Health Care Equipment & Services   L+550   0.8%   4/22/27       5.0       4.7       4.7  

Oxford Global Resources LLC

  (f)(k)(l)(m)(t)   Commercial & Professional Services   L+600   1.0%   8/17/27       88.2       87.4       89.1  

Oxford Global Resources LLC

  (v)   Commercial & Professional Services   L+600   1.0%   8/17/27       5.8       5.8       5.8  

Oxford Global Resources LLC

  (x)   Commercial & Professional Services   L+600   1.0%   8/17/27       15.3       15.3       15.4  

Oxford Global Resources LLC

  (x)   Commercial & Professional Services   L+600   1.0%   8/17/27       1.8       1.8       1.8  

P2 Energy Solutions Inc.

  (v)   Software & Services   L+675   1.0%   1/31/25       3.7       3.5       3.5  

P2 Energy Solutions Inc.

  (i)(k)(m)(s)(t)(v)   Software & Services   L+675   1.0%   2/2/26       248.4       232.8       231.3  

P2 Energy Solutions Inc.

  (x)   Software & Services   L+675   1.0%   1/31/25       11.4       11.4       10.6  

Parata Systems

  (f)(m)(v)   Health Care Equipment & Services   L+575   1.0%   6/30/27       73.7       73.2       73.7  

Parata Systems

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

Parata Systems

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

Parts Town LLC

  (v)   Retailing   L+550   0.8%   11/1/28       131.1       129.7       129.8  

PartsSource Inc

  (v)   Health Care Equipment & Services   L+575   0.8%   8/23/28       65.6       64.9       64.2  

PartsSource Inc

  (x)   Health Care Equipment & Services   L+575   0.8%   8/21/26       4.3       4.2       4.2  

PartsSource Inc

  (x)   Health Care Equipment & Services   L+575   0.8%   8/23/28       22.9       22.6       22.4  

Peraton Corp

  (aa)(v)   Capital Goods   L+375   0.8%   2/1/28       8.8       8.5       8.8  

Performance Health Holdings Inc

  (f)(i)(v)   Health Care Equipment & Services   L+600   1.0%   7/12/27       108.3       107.3       107.3  

Petroplex Acidizing Inc

  (ac)(v)(y)(z)   Energy   L+825, 1.8% PIK (1.8% Max PIK)   1.0%   6/30/23       27.3       21.9       12.2  

Polyconcept North America Inc

  (aa)(v)   Household & Personal Products   L+450 PIK (L+450 Max PIK)   1.0%   8/16/23       23.1       22.9       23.0  

Premium Credit Ltd

  (v)(w)   Diversified Financials   SA+650   0.0%   1/16/26     £       55.9       72.8       73.5  

Production Resource Group LLC

  (ad)(v)   Media & Entertainment   L+300, 5.5% PIK (5.5% Max PIK)   0.3%   8/21/24     $       136.8       129.0       136.8  

Production Resource Group LLC

  (ad)(v)   Media & Entertainment   L+550 PIK (L+550 Max PIK)   1.0%   8/21/24       0.1       0.1       0.1  

Production Resource Group LLC

  (ad)(v)   Media & Entertainment   L+500, 3.1% PIK (3.1% Max PIK)   1.0%   8/21/24       91.2       87.2       91.2  

Production Resource Group LLC

  (ad)(x)   Media & Entertainment   L+500, 3.1% PIK (3.1% Max PIK)   1.0%   8/21/24       4.0       4.0       4.0  

 

See notes to unaudited consolidated financial statements.

 

11


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Propulsion Acquisition LLC

  (f)(l)(s)(t)(v)   Capital Goods   L+700   1.0%   7/13/24     $       60.4     $ 57.0     $ 61.0  

PSKW LLC

  (i)(l)(s)(t)(v)   Health Care Equipment & Services   L+625   1.0%   3/9/26       294.0       283.4       294.0  

Pure Fishing Inc

  (aa)(v)   Consumer Durables & Apparel   L+450   0.0%   12/22/25       34.0       33.3       32.4  

Qdoba Restaurant Corp

  (aa)(m)(v)   Consumer Services   L+700   1.0%   3/21/25       10.9       10.8       10.6  

Reliant Rehab Hospital Cincinnati LLC

  (f)(i)(l)(m)(s)(v)   Health Care Equipment & Services   L+625   0.0%   2/28/26       107.8       101.9       104.3  

Revere Superior Holdings Inc

  (m)(v)   Software & Services   L+575   1.0%   9/30/26       29.9       29.3       30.2  

Revere Superior Holdings Inc

  (x)   Software & Services   L+575   1.0%   9/30/26       3.8       3.8       3.8  

Revere Superior Holdings Inc

  (x)   Software & Services   L+575   1.0%   9/30/26       3.2       3.2       3.2  

Rise Baking Company

  (v)   Food, Beverage & Tobacco   L+625   1.0%   8/13/27       3.3       3.2       3.1  

Rise Baking Company

  (l)(m)   Food, Beverage & Tobacco   L+625   1.0%   8/13/27       28.8       28.1       27.2  

Rise Baking Company

  (x)   Food, Beverage & Tobacco   L+625   1.0%   8/13/27       2.0       2.0       1.9  

RSC Insurance Brokerage Inc

  (f)(i)(k)(l)(m)(s)(v)   Insurance   L+550   0.8%   10/30/26       229.4       222.9       231.7  

RSC Insurance Brokerage Inc

  (x)   Insurance   L+550   0.8%   10/30/26       12.5       12.4       12.6  

RSC Insurance Brokerage Inc

  (x)   Insurance   L+550   0.8%   10/30/26       7.7       7.6       7.7  

Safe-Guard Products International LLC

  (f)   Diversified Financials   L+500   0.5%   1/27/27       0.1       0.1       0.1  

SAMBA Safety Inc

  (v)   Software & Services   L+575   1.0%   9/1/27       0.6       0.6       0.6  

SAMBA Safety Inc

  (x)   Software & Services   L+575   1.0%   9/1/27       1.8       1.8       1.8  

SAMBA Safety Inc

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

SavATree LLC

  (v)   Consumer Services   L+550   0.8%   10/12/28       1.9       1.9       1.9  

SavATree LLC

  (x)   Consumer Services   L+550   0.8%   10/12/28       7.6       7.6       7.6  

SavATree LLC

  (x)   Consumer Services   L+550   0.8%   10/12/28       6.3       6.3       6.3  

Sequa Corp

  (aa)(m)(v)   Capital Goods   L+675, 0.0% PIK (1.0% Max PIK)   1.0%   11/28/23       16.0       15.4       16.1  

Sequa Corp

  (v)   Capital Goods   L+900, 0.0% PIK (9.5% Max PIK)   1.0%   7/31/25       16.4       16.0       17.0  

Sequel Youth & Family Services LLC

  (v)(y)(z)   Health Care Equipment & Services   3.0%     2/28/25       50.0       50.0       50.0  

Sequel Youth & Family Services LLC

  (v)(y)(z)   Health Care Equipment & Services   3.0%     2/28/25       70.0       10.5       10.5  

Sequel Youth & Family Services LLC

  (v)   Health Care Equipment & Services   SF+550   1.0%   2/28/27       26.0       26.0       26.0  

Sequel Youth & Family Services LLC

  (v)   Health Care Equipment & Services   12.0% PIK (12.0% Max PIK)     2/28/27       21.0       20.8       20.8  

SitusAMC Holdings Corp

  (k)(l)(v)   Real Estate   L+575   0.8%   12/22/27       76.6       75.9       75.5  

Sorenson Communications LLC

  (aa)(ac)(f)(k)(t)(v)   Telecommunication Services   L+550   0.8%   3/17/26       58.5       55.7       58.5  

Source Code LLC

  (k)(l)(t)   Software & Services   L+650   1.0%   6/30/27       53.2       52.2       52.4  

 

See notes to unaudited consolidated financial statements.

 

12


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

  Floor(b)   Maturity   Principal

Amount(c)

    Amortized
Cost
    Fair
Value(d)
 

Source Code LLC

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

Spins LLC

  (m)(s)(t)(v)   Software & Services   L+550   1.0%   1/20/27       68.7       65.5       69.4  

Spins LLC

  (x)   Software & Services   L+550   1.0%   1/20/27       16.5       16.5       16.6  

Spins LLC

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

Staples Canada

  (v)(w)   Retailing   C+700   1.0%   9/12/24   C$         34.5       26.9       28.4  

Summit Interconnect Inc

  (f)(k)(l)(t)(v)   Capital Goods   L+600   1.0%   9/22/28   $         98.0       97.1       96.2  

Summit Interconnect Inc

  (x)   Capital Goods   L+600   1.0%   9/22/28       48.7       48.7       47.8  

Sungard Availability Services Capital Inc

  (ac)(v)   Software & Services   SF+375, 3.8% PIK (3.8% Max PIK)   1.0%   7/1/24       5.8       5.8       5.3  

Sweeping Corp of America Inc

  (m)(v)   Commercial & Professional Services   L+575   1.0%   11/30/26       69.7       67.4       70.4  

Sweeping Corp of America Inc

  (x)   Commercial & Professional Services   L+575   1.0%   11/30/26       3.1       3.1       3.1  

Sweeping Corp of America Inc

  (x)   Commercial & Professional Services   L+575   1.0%   11/30/26       5.7       5.6       5.7  

Tangoe LLC

  (m)(s)(v)   Software & Services   L+650   1.0%   11/28/25       189.9       172.2       147.2  

ThermaSys Corp

  (ac)(v)(y)(z)   Capital Goods   L+1,100 PIK (L+1,100 Max PIK)   1.0%   1/1/24       8.8       8.3       3.7  

ThreeSixty Group

  (m)(v)   Retailing   L+500, 2.5% PIK (2.5% Max PIK)   1.5%   3/1/23       48.5       48.4       48.0  

ThreeSixty Group

  (m)(v)   Retailing   L+500, 2.5% PIK (2.5% Max PIK)   1.5%   3/1/23       48.3       48.1       47.8  

Time Manufacturing Co

  (v)   Capital Goods   L+650   0.8%   12/1/27       45.7       44.7       44.4  

Time Manufacturing Co

  (v)   Capital Goods   L+650   0.8%   12/1/27       7.4       7.4       7.2  

Time Manufacturing Co

  (x)   Capital Goods   L+650   0.8%   12/1/27       13.7       13.7       13.4  

Time Manufacturing Co

  (x)   Capital Goods   L+650   0.8%   12/1/27       14.7       14.7       14.3  

Transaction Services Group Ltd

  (v)(w)   Software & Services   B+650   0.0%   10/15/26   A$         80.3       55.9       58.6  

Transaction Services Group Ltd

  (v)(w)   Software & Services   L+650   0.0%   10/15/26   $         126.2       122.4       122.9  

Transaction Services Group Ltd

  (v)(w)   Software & Services   L+650   0.0%   10/15/26   £       13.9       17.7       17.8  

Ultra Electronics Holdings PLC

  (aa)(ab)(v)(w)   Capital Goods   L+375   0.5%   11/17/28   $         1.8       1.8       1.8  

Ultra Electronics Holdings PLC

  (aa)(ab)(v)(w)   Capital Goods   E+375   0.0%   11/17/28         1.4       1.6       1.5  

Warren Resources Inc

  (ad)(v)   Energy   L+900, 1.0% PIK (1.0% Max PIK)   1.0%   5/22/24   $         18.5       17.3       18.5  

Wealth Enhancement Group LLC

  (v)(w)   Diversified Financials   L+625   1.0%   10/4/27       17.6       17.5       17.6  

Wealth Enhancement Group LLC

  (v)(w)   Diversified Financials   L+625   1.0%   10/4/27       0.4       0.4       0.4  

Wealth Enhancement Group LLC

  (w)(x)   Diversified Financials   L+625   1.0%   10/4/27       10.8       10.8       10.8  

 

See notes to unaudited consolidated financial statements.

 

13


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

  Floor(b)   Maturity   Principal

Amount(c)

    Amortized
Cost
    Fair
Value(d)
 

Wealth Enhancement Group LLC

  (w)(x)   Diversified Financials   L+625   1.0%   10/4/27     $       1.3     $ 1.3     $ 1.3  

Woolpert Inc

  (f)(k)(l)(m)(t)(v)   Capital Goods   L+600   1.0%   4/5/28       160.7       154.2       162.4  

Woolpert Inc

  (x)   Capital Goods   L+600   1.0%   4/5/28       3.7       3.7       3.7  

Worldwise Inc

  (v)   Household & Personal Products   SF+625   1.0%   3/29/28       85.3       84.5       84.5  

Worldwise Inc

  (x)   Household & Personal Products   SF+625   1.0%   3/29/28       42.7       42.2       42.2  

Worldwise Inc

  (x)   Household & Personal Products   SF+625   1.0%   3/29/28       14.2       14.2       14.2  
               

 

 

   

 

 

 

Total Senior Secured Loans—First Lien

                  11,280.2       11,341.7  

Unfunded Loan Commitments

                  (1,418.6     (1,418.6
               

 

 

   

 

 

 
Net Senior Secured Loans—First Lien                   9,861.6       9,923.1  
               

 

 

   

 

 

 

Senior Secured Loans—Second Lien—18.2%

                 

Advanced Lighting Technologies Inc

  (v)(y)(z)   Materials   L+600   1.0%   3/16/27       11.7       10.5       5.6  

Ammeraal Beltech Holding BV

  (f)(s)(v)(w)   Capital Goods   L+775   0.0%   9/12/26       44.9       41.0       43.8  

Amtek Global Technology Pte Ltd

  (ad)(v)(w)(y)(z)   Automobiles & Components   E+500 PIK (E+500 Max PIK)   0.0%   4/4/24         35.2       39.0       —    

Belk Inc

  (ac)(v)(y)(z)   Retailing   10.0% PIK (10.0% Max PIK)     7/31/25   $         26.2       4.2       5.3  

Byrider Finance LLC

  (u)(v)   Automobiles & Components   L+1,000, 0.5% PIK (0.5% Max PIK)   1.3%   6/21/22       54.3       53.6       54.5  

Caldic BV

  (v)(w)   Retailing   SF+725   0.5%   12/30/29       40.0       38.9       38.9  

Constellis Holdings LLC

  (ac)(v)   Capital Goods   L+1,100, 0.0% PIK (5.0% Max PIK)   1.0%   3/27/25       13.5       12.6       9.5  

Cubic Corp

  (v)   Software & Services   L+763   0.8%   5/25/29       54.8       51.9       55.4  

Ellucian Inc

  (v)   Software & Services   L+800   1.0%   10/9/28       179.2       170.2       183.2  

Fairway Group Holdings Corp

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

Misys Ltd

  (aa)(v)(w)   Software & Services   L+725   1.0%   6/13/25       16.3       15.4       16.1  

NBG Home

  (v)(y)(z)   Consumer Durables & Apparel   L+1,275 PIK (L+1,275 Max PIK)   1.0%   9/30/24       32.4       28.2       2.2  

OEConnection LLC

  (f)(v)   Software & Services   L+700   0.5%   9/25/27       76.1       75.7       74.3  

Peraton Corp

  (s)(v)   Capital Goods   L+800   1.0%   2/1/29       175.0       165.4       178.4  

 

See notes to unaudited consolidated financial statements.

 

14


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes    

Industry

 

Rate(b)

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

Peraton Corp

    (v)     Capital Goods   L+775     0.8%       2/1/29     $       151.9     $ 145.6     $ 152.9  

Petrochoice Holdings Inc

    (v)     Capital Goods   L+875     1.0%       8/21/23         65.0       64.5       48.1  

Polyconcept North America Inc

    (v)     Household & Personal Products   11.0% PIK (11.0% Max PIK)       2/16/24         10.3       10.2       10.3  

Pure Fishing Inc

    (f)(m)(v)     Consumer Durables & Apparel   L+838     1.0%       12/21/26         100.0       94.7       94.8  

Sequa Corp

    (aa)(m)(v)     Capital Goods   L+1,075, 0.0% PIK (6.8% Max PIK)     1.0%       4/28/24         5.9       5.7       5.9  

SIRVA Worldwide Inc

    (aa)(v)     Commercial & Professional Services   L+950     0.0%       8/3/26         6.5       5.4       5.5  

Solera LLC

    (aa)(v)     Software & Services   L+800     1.0%       6/4/29         312.4       296.2       314.9  

Sungard Availability Services Capital Inc

    (ac)(v)(y)(z)     Software & Services   SF+400, 2.8% PIK (2.8% Max PIK)     1.0%       8/1/24         14.7       13.5       2.5  

Valeo Foods Group Ltd

    (w)(x)     Food, Beverage & Tobacco   E+750     0.0%       10/1/29           6.2       7.2       6.9  

Vantage Specialty Chemicals Inc

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

Wittur Holding GmbH

    (v)(w)     Capital Goods   E+850, 0.5% PIK (0.5% Max PIK)     0.0%       9/23/27           112.8       121.1       113.5  
               

 

 

   

 

 

 

Total Senior Secured Loans—Second Lien

                  1,471.4       1,423.2  
               

 

 

   

 

 

 

Unfunded Loan Commitments

                  (7.1     (7.1
               

 

 

   

 

 

 

Net Senior Secured Loans—Second Lien

                  1,464.3       1,416.1  
               

 

 

   

 

 

 
Other Senior Secured Debt—1.5%                  

Angelica Corp

    (h)(y)(z)     Health Care Equipment & Services   10.0% PIK (10.0% Max PIK)       12/30/22     $         53.4       42.2       5.9  

JW Aluminum Co

    (aa)(ad)(s)(v)     Materials   10.3%       6/1/26         76.5       75.6       80.1  

One Call Care Management Inc

    (ad)(v)     Health Care Equipment & Services   8.5% PIK (8.5% Max PIK)       11/1/28         23.5       21.7       21.2  

TruckPro LLC

    (aa)(v)     Capital Goods   11.0%       10/15/24         9.2       9.2       9.7  
               

 

 

   

 

 

 

Total Other Senior Secured Debt

                  148.7       116.9  
               

 

 

   

 

 

 
Subordinated Debt—1.0%                  

Ardonagh Group Ltd

    (aa)(v)(w)     Insurance   12.8% PIK (12.8% Max PIK)       1/15/27         0.9       1.0       1.0  

athenahealth Inc

    (ac)(aa)(v)     Health Care Equipment & Services   6.5%       2/15/30         5.5       5.5       5.4  

 

See notes to unaudited consolidated financial statements.

 

15


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes    

Industry

 

Rate(b)

  Floor(b)     Maturity     Principal

Amount(c)

    Amortized
Cost
    Fair
Value(d)
 

ATX Networks Corp

    (ad)(s)(v)(w)(y)(z)     Capital Goods   10.0% PIK (10.0% Max PIK)       9/1/28     $       19.3     $ 4.8     $ 12.8  

ClubCorp Club Operations Inc

    (aa)(v)     Consumer Services   8.5%       9/15/25         37.3       35.5       35.1  

Encora Digital Inc

    (v)     Software & Services   9.8% PIK (9.8% Max PIK)       12/13/29         21.6       21.0       20.9  

Hilding Anders

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

Hilding Anders

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

Hilding Anders

    (ad)(v)(w)(y)(z)     Consumer Durables & Apparel   13.0% PIK (13.0% Max PIK)       11/30/25         134.4       99.4       —    
               

 

 

   

 

 

 

Total Subordinated Debt

                  194.1       75.2  
               

 

 

   

 

 

 

Portfolio Company(a)

  Footnotes    

Industry

 

Rate(b)

  Floor(b)     Maturity     Principal
Amount(c)/
Shares
    Amortized
Cost
    Fair
Value(d)
 
Asset Based Finance—28.0%                  

801 5th Ave, Seattle, Private Equity

    (ad)(v)(w)(y)     Real Estate             8,554,983     $ 14.1     $ 26.1  

801 5th Ave, Seattle, Structure Mezzanine

    (ad)(v)(w)     Real Estate   8.0%, 3.0% PIK (3.0% Max PIK)       12/19/29     $         57.2       55.2       57.2  

Abacus JV, Private Equity

    (v)(w)     Insurance             50,032,107       49.0       56.6  

Accelerator Investments Aggregator LP, Private Equity

    (v)(w)(y)     Diversified Financials             5,397,365       6.3       5.1  

Altavair AirFinance, Private Equity

    (v)(w)     Capital Goods             106,337,301       107.2       130.5  

Australis Maritime, Common Stock

    (v)(w)     Transportation             47,142,727       45.4       47.2  

Avenue One PropCo, Private Equity

    (ad)(v)(w)(y)     Real Estate             12,639,630       12.6       12.6  

Avida Holding AB, Common Stock

    (ad)(v)(w)(y)     Diversified Financials             405,023,756       44.6       48.4  

Byrider Finance LLC, Structured Mezzanine

    (v)     Automobiles & Components   L+1,050     0.3%       6/3/28     $         9.4       9.4       9.4  

Byrider Finance LLC, Structured Mezzanine

    (x)     Automobiles & Components   L+1,050     0.3%       6/3/28     $         13.6       13.6       13.6  

Callodine Commercial Finance LLC, 2L Term Loan A

    (v)     Diversified Financials   L+900     1.0%       11/3/25     $         125.0       118.3       125.7  

 

See notes to unaudited consolidated financial statements.

 

16


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Callodine Commercial Finance LLC, 2L Term Loan B

  (x)   Diversified Financials   L+900   1.0%   11/3/25   $         40.3     $ 40.3     $ 40.6  

Capital Automotive LP, Private Equity

  (v)(w)   Real Estate             21,640,936       23.7       28.9  

Capital Automotive LP, Structured Mezzanine

  (v)(w)   Real Estate   11.0%     12/22/28   $         42.7       41.8       42.7  

Global Jet Capital LLC, Preferred Stock

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

Global Jet Capital LLC, Preferred Stock

  (j)(u)(v)   Commercial & Professional Services   4.5% PIK (9.0% Max PIK)     10/1/28   $         423.4       309.4       259.8  

Global Jet Capital LLC, Structured Mezzanine

  (j)(u)(v)(w)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     12/4/25   $         43.2       30.8       43.2  

Global Jet Capital LLC, Structured Mezzanine

  (j)(u)(v)(w)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     12/9/25   $         31.6       21.8       31.6  

Global Jet Capital LLC, Structured Mezzanine

  (j)(u)(v)(w)   Commercial & Professional Services   15.0% PIK (15.0% Max PIK)     1/29/26   $         3.7       2.5       3.7  

Global Lending Services LLC, Private Equity

  (v)(w)   Diversified Financials             11,860,951       13.7       14.5  

Global Lending Services LLC, Private Equity

  (v)(w)(y)   Diversified Financials             7,242,670       7.2       9.5  

Home Partners JV 2, Private Equity

  (ac)(v)(w)(y)   Real Estate             2,398,355       2.3       2.6  

Home Partners JV 2, Private Equity

  (ac)(v)(w)(y)   Real Estate             90,490       0.1       0.1  

Home Partners JV 2, Structured Mezzanine

  (ac)(v)(w)   Real Estate   11.0% PIK (11.0% Max PIK)     3/20/30   $         5.3       5.2       5.3  

Home Partners JV 2, Structured Mezzanine

  (ac)(w)(x)   Real Estate   11.0% PIK (11.0% Max PIK)     3/20/30   $         11.9       11.9       11.9  

Home Partners JV, Common Stock

  (ac)(v)(w)   Real Estate             30,500,647       45.5       86.5  

Home Partners JV, Private Equity

  (ac)(v)(w)   Real Estate             3,793,000       5.0       10.2  

Home Partners JV, Structured Mezzanine

  (ac)(v)(w)   Real Estate   11.0% PIK (11.0% Max PIK)     3/25/29   $         90.3       85.6       90.3  

Jet Edge International LLC, Preferred Stock

  (ac)(p)   Transportation   8.0%, 0.0% PIK (8.0% Max PIK)       $         20.9       20.9       30.3  

 

See notes to unaudited consolidated financial statements.

 

17


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Jet Edge International LLC, Term Loan

  (ac)(v)   Transportation   10.0%, 2.0% PIK (2.0% Max PIK)     4/2/26   $         148.6     $ 147.9     $ 153.0  

Jet Edge International LLC, Term Loan

  (ac)(x)   Transportation   10.0%, 2.0% PIK (2.0% Max PIK)     4/2/26   $         0.7       0.7       0.7  

Jet Edge International LLC, Warrant

  (ac)(h)(y)   Transportation             3,963       —         16.5  

Kilter Finance, Preferred Stock

  (ad)(v)(w)   Insurance   6.0%, 6.0% PIK (6.0% Max PIK)       $         68.6       67.2       68.6  

Kilter Finance, Private Equity

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

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

  (v)(w)(y)(z)   Capital Goods   14.3%     5/31/23   $         39.1       39.1       19.6  

KKR Rocket Loans Aggregator LLC, Partnership Interest

  (ad)(v)(w)   Diversified Financials             1,824,177       1.8       1.9  

KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest

  (v)(w)(y)   Capital Goods             23,664,954       23.0       20.0  

Lenovo Group Ltd, Structured Mezzanine

  (v)(w)   Technology Hardware & Equipment   7.8%     9/22/24         7.8       9.2       8.7  

Lenovo Group Ltd, Structured Mezzanine

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

Lenovo Group Ltd, Structured Mezzanine

  (v)(w)   Technology Hardware & Equipment   11.8%     9/22/24         5.9       6.9       6.5  

Lenovo Group Ltd, Structured Mezzanine

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

Lenovo Group Ltd, Structured Mezzanine

  (v)(w)   Technology Hardware & Equipment   7.8%     9/22/24   £       2.1       2.9       2.8  

Lenovo Group Ltd, Structured Mezzanine

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

Luxembourg Life Fund—Absolute Return Fund II, Structured Mezzanine

  (v)(w)   Insurance   SF+750   0.5%   2/10/27   $         26.7       26.7       26.4  

Music IP, Private Equity

  (v)(w)   Media & Entertainment             60,928,593       60.9       71.2  

My Community Homes SFR PropCo 2, Private Equity

  (ad)(v)(w)(y)   Real Estate             105,000,000       105.0       105.0  

 

See notes to unaudited consolidated financial statements.

 

18


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

NewStar Clarendon 2014-1A Class D

  (v)(w)   Diversified Financials   27.0%       1/25/27     $         8.3     $ 2.5     $ 4.2  

Opendoor Labs Inc, Structured Mezzanine

  (v)(w)   Real Estate   10.0%       4/1/26     $         71.1       71.1       69.8  

Opendoor Labs Inc, Structured Mezzanine

  (w)(x)   Real Estate   10.0%       4/1/26     $         88.9       88.9       87.4  

Pretium Partners LLC P2, Term Loan

  (v)(w)   Real Estate   11.0%       12/16/29     $         33.5       32.9       32.9  

Prime ST LLC, Private Equity

  (ad)(v)(w)(y)   Real Estate             5,983,135       7.7       11.8  

Prime ST LLC, Structured Mezzanine

  (ad)(v)(w)   Real Estate   5.0%, 6.0% PIK (6.0% Max PIK)       3/12/30     $         52.4       50.4       52.4  

Roemanu LLC (FKA Toorak Capital Partners LLC), Private Equity

  (ad)(v)   Real Estate             204,437,874       215.9       255.3  

Roemanu LLC (FKA Toorak Capital Partners LLC), Structured Mezzanine

  (ad)(v)   Real Estate   L+650 PIK (L+650 Max PIK)       5/11/22     $         24.0       24.0       24.0  

Roemanu LLC (FKA Toorak Capital Partners LLC), Structured Mezzanine

  (ad)(x)   Real Estate   L+650 PIK (L+650 Max PIK)       5/11/22     $         6.0       6.0       6.0  

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

  (o)(w)   Diversified Financials             23,500,000       23.5       24.8  

Toorak Capital Funding LLC, Membership Interest

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

 

 

   

 

 

 
Total Asset Based Finance                   2,252.8       2,339.1  

Unfunded commitments

                  (161.4     (161.4
               

 

 

   

 

 

 
Net Asset Based Finance                   2,091.4       2,177.7  
               

 

 

   

 

 

 

Credit Opportunities Partners JV, LLC —19.0%

                 

Credit Opportunities Partners JV, LLC

  (ad)(v)(w)   Diversified Financials         $         1,549.8       1,484.2       1,479.6  
               

 

 

   

 

 

 

Credit Opportunities Partners JV, LLC

                  1,484.2       1,479.6  
               

 

 

   

 

 

 

 

See notes to unaudited consolidated financial statements.

 

19


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

  Floor(b)   Maturity   Number of
Shares
    Amortized
Cost
    Fair
Value(d)
 
Equity/Other—17.6%(e)                  

Abaco Energy Technologies LLC, Common Stock

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

Abaco Energy Technologies LLC, Preferred Stock

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

Affordable Care Inc, Preferred Stock

  (ac)(v)   Health Care Equipment & Services   11.8% PIK (11.8% Max PIK)           49,073,000       48.1       50.3  

American Vision Partners, Private Equity

  (v)(y)   Health Care Equipment & Services             2,450,230       2.5       2.4  

Amerivet Partners Management Inc, Preferred Stock

  (v)   Health Care Equipment & Services   11.5% PIK (11.5% Max PIK)           12,702,290       12.3       12.3  

Amtek Global Technology Pte Ltd, Common Stock

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

Amtek Global Technology Pte Ltd, Ordinary Shares

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

Amtek Global Technology Pte Ltd, Private Equity

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

Angelica Corp, Limited Partnership Interest

  (h)(y)   Health Care Equipment & Services             877,044       47.6       —    

Arcos LLC/VA, Preferred Stock

  (v)   Software & Services   L+950 PIK (L+950 Max PIK)   1.0%   4/30/31       15,000,000       14.0       14.1  

Ardonagh Ltd, Ordinary Shares

  (v)(w)(y)   Insurance             16,450       —         2.7  

Ardonagh Ltd, Ordinary Shares

  (v)(w)(y)   Insurance             116,814       0.2       0.4  

Ardonagh Ltd, Preferred Stock

  (v)(w)(y)   Insurance             6,113,719       9.1       21.4  

Arena Energy LP, Warrants

  (v)(y)   Energy             68,186,525       0.4       0.8  

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

  (p)(y)   Energy             10,193       9.7       3.6  

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

  (p)(y)   Energy             86,607,143       19.4       30.4  

Aspect Software Inc, Common Stock

  (l)(s)(v)(y)   Software & Services             1,309,955       2.3       2.0  

 

See notes to unaudited consolidated financial statements.

 

20


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Aspect Software Inc, Warrant

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

athenahealth Inc, Preferred Stock

  (ac)(v)   Health Care Equipment & Services   L+1,075 PIK (L+1,075 Max PIK)           317,493,473       311.2       313.8  

ATX Networks Corp, Common Stock

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

AVF Parent LLC, Trade Claim

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

Belk Inc, Common Stock

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

Borden (New Dairy Opco), Common Stock

  (ac)(h)(n)(y)   Food, Beverage & Tobacco             11,167,000       9.1       9.3  

Bowery Farming Inc, Warrants

  (v)(y)   Food, Beverage & Tobacco       4/30/26       161,828       0.0       5.2  

Catalina Marketing Corp, Common Stock

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

CDS US Intermediate Holdings Inc, Warrant

  (aa)(v)(w)(y)   Media & Entertainment             2,023,714       —         5.9  

Cengage Learning, Inc, Common Stock

  (v)(y)   Media & Entertainment             227,802       7.5       4.4  

Cimarron Energy Inc, Common Stock

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

Cimarron Energy Inc, Participation Option

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

Constellis Holdings LLC, Private Equity

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

CTI Foods Holding Co LLC, Common Stock

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

Cubic Corp, Preferred Stock

  (v)   Software & Services   11.0% PIK (11.0% Max PIK)           42,141,600       39.6       41.8  

Envigo Laboratories Inc, Series A Warrant

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

Envigo Laboratories Inc, Series B Warrant

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

 

See notes to unaudited consolidated financial statements.

 

21


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Fairway Group Holdings Corp, Common Stock

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

Fox Head Inc, Common Stock

  (j)(v)(y)   Consumer Durables & Apparel             10,000,000       8.0       11.4  

Fronton BV, Common Stock

  (ac)(o)(y)   Consumer Services             14,943       —         1.2  

Galaxy Universal LLC, Common Stock

  (v)(y)   Consumer Durables & Apparel             228,806       35.5       37.8  

Galaxy Universal LLC, Trade Claim

  (v)(y)   Consumer Durables & Apparel             7,701,195       4.6       1.6  

Genesys Telecommunications Laboratories Inc, Class A Shares

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

Genesys Telecommunications Laboratories Inc, Ordinary Shares

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

Genesys Telecommunications Laboratories Inc, Preferred Stock

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

Harvey Industries Inc, Common Stock

  (v)   Capital Goods             5,000,000       2.2       4.3  

Hilding Anders, Class A Common Stock

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

Hilding Anders, Class B Common Stock

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

Hilding Anders, Class C Common Stock

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

Hilding Anders, Equity Options

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

HM Dunn Co Inc, Preferred Stock, Series A

  (ad)(s)(v)(y)   Capital Goods             85,385       7.1       10.1  

HM Dunn Co Inc, Preferred Stock, Series B

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

Imagine Communications Corp, Common Stock

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

Jones Apparel Holdings, Inc., Common Stock

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

JW Aluminum Co, Common Stock

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

 

See notes to unaudited consolidated financial statements.

 

22


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

JW Aluminum Co, Preferred Stock

  (ad)(j)(u)(v)   Materials   6.25% PIK (12.5% Max PIK)     2/15/28       15,279     $ 186.6     $ 125.1  

Maverick Natural Resources LLC, Common Stock

  (n)(o)(y)   Energy             259,211       84.5       189.3  

MB Precision Holdings LLC, Class A - 2 Units

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

Med-Metrix, Common Stock

  (h)(y)   Software & Services             29,403       1.5       1.9  

Med-Metrix, Preferred Stock

  (h)   Software & Services   8.0% PIK (8.0% Max PIK)           29,403       1.5       1.5  

Miami Beach Medical Group LLC, Common Stock

  (v)(y)   Health Care Equipment & Services             5,000,000       4.8       3.4  

Misys Ltd, Preferred Stock

  (v)(w)   Software & Services   L+1,025 PIK (L+1,025 Max PIK)           58,757,865       54.7       58.3  

NBG Home, Common Stock

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

Nine West Holdings Inc, Common Stock

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

One Call Care Management Inc, Common Stock

  (ad)(v)(y)   Health Care Equipment & Services             34,872       2.1       2.3  

One Call Care Management Inc, Preferred Stock A

  (ad)(v)(y)   Health Care Equipment & Services             371,992       22.8       25.0  

One Call Care Management Inc, Preferred Stock B

  (ad)(v)   Health Care Equipment & Services   9.0% PIK (9.0% Max PIK)     10/25/29       7,672,347       8.0       7.7  

Petroplex Acidizing Inc, Preferred Stock A

  (ac)(v)(y)   Energy             25,265,357       4.9       —    

Petroplex Acidizing Inc, Warrant

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

Polyconcept North America Inc, Class A - 1 Units

  (v)(y)   Household & Personal Products             30,000       3.0       4.3  

PRG III LLC, Preferred Stock, Series A PIK

  (ad)(v)(y)   Media & Entertainment       8/21/24       434,250       18.1       14.8  

PRG III LLC, Preferred Stock, Series B PIK

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

Proserv Acquisition LLC, Class A Common Units

  (ac)(v)(w)(y)   Energy             2,635,005       33.5       1.0  

Proserv Acquisition LLC, Class A Preferred Units

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

 

See notes to unaudited consolidated financial statements.

 

23


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

 

Rate(b)

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

Quorum Health Corp, Trade Claim

  (v)(y)   Health Care Equipment & Services             8,301,000     $ 0.7     $ 0.8  

Quorum Health Corp, Trust Initial Funding Units

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

Ridgeback Resources Inc, Common Stock

  (j)(u)(v)(w)(y)   Energy             1,969,418       9.1       11.8  

Sequel Youth & Family Services LLC, Class R Common Stock

  (v)(y)   Health Care Equipment & Services             900,000       —         —    

Sequel Youth & Family Services LLC, NP-1 Common Stock

  (v)(y)   Health Care Equipment & Services             1,000,000       4.0       0.7  

Sorenson Communications LLC, Common Stock

  (ac)(j)(u)(v)(y)   Telecommunication Services             89,959       42.5       68.4  

Sound United LLC, Common Stock

  (ad)(v)   Consumer Durables & Apparel             12,857,143       17.3       167.8  

Stuart Weitzman Inc, Common Stock

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

Sungard Availability Services Capital Inc, Common Stock

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

Swift Worldwide Resources Holdco Ltd, Common Stock

  (v)(y)   Energy             1,250,000       1.2       0.9  

ThermaSys Corp, Common Stock

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

ThermaSys Corp, Preferred Stock

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

Versatile Processing Group Inc,
Class A - 2 Units

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

Warren Resources Inc, Common Stock

  (ad)(v)(y)   Energy             3,483,788       12.8       29.6  

Worldwise Inc, Class A Private Equity

  (v)(y)   Household & Personal Products             30,000       1.5       1.5  

Worldwise Inc, Class B Private Equity

  (v)(y)   Household & Personal Products             30,000       1.5       1.5  

Zeta Interactive Holdings Corp, Common Stock

  (aa)(v)(y)   Software & Services             3,610,212       30.8       46.0  
               

 

 

   

 

 

 
Total Equity/Other                   1,238.9       1,365.4  
               

 

 

   

 

 

 
TOTAL INVESTMENTS—213.1%                 $ 16,483.2       16,554.0  
               

 

 

   

LIABILITIES IN EXCESS OF OTHER ASSETS—(113.1%)

                  $ (8,787.0
               

 

 

 

NET ASSETS—100%

                  $ 7,767.0  
                 

 

 

 

 

See notes to unaudited consolidated financial statements.

 

24


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Foreign currency forward contracts

 

Foreign

Currency

   Settlement
Date
    

Counterparty

   Amount and
Transaction
     US$ Value at
Settlement Date
     US$ Value at
March 31, 2022
     Unrealized Appreciation
(Depreciation)
 

AUD

     10/17/2022      JP Morgan Chase Bank    A$         3.0 Sold      $ 2.1      $ 2.3      $ (0.2

AUD

     2/14/2023      JP Morgan Chase Bank    A$         2.2 Sold        1.6        1.6        0.0  

CAD

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

CAD

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

CAD

     11/10/2022      JP Morgan Chase Bank    C$         1.5 Sold        1.2        1.2        0.0  

CAD

     11/15/2024      JP Morgan Chase Bank    C$         4.0 Sold        3.2        3.2        0.0  

EUR

     5/6/2022      JP Morgan Chase Bank          6.1 Sold        7.5        6.8        0.7  

EUR

     5/6/2022      JP Morgan Chase Bank          1.6 Sold        2.0        1.8        0.2  

EUR

     5/6/2022      JP Morgan Chase Bank          0.7 Sold        0.9        0.8        0.1  

EUR

     5/6/2022      JP Morgan Chase Bank          2.2 Sold        2.7        2.4        0.3  

EUR

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

EUR

     9/12/2022      JP Morgan Chase Bank          10.0 Sold        11.7        11.2        0.5  

EUR

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

EUR

     2/23/2024      JP Morgan Chase Bank          42.3 Sold        49.1        48.8        0.3  

EUR

     8/8/2025      JP Morgan Chase Bank          4.8 Sold        5.7        5.6        0.1  

EUR

     8/8/2025      JP Morgan Chase Bank          1.9 Sold        2.3        2.3        0.0  

GBP

     1/11/2023      JP Morgan Chase Bank    £       1.9 Sold        2.9        2.5        0.4  

GBP

     1/11/2023      JP Morgan Chase Bank    £       1.7 Sold        2.6        2.3        0.3  

GBP

     1/11/2023      JP Morgan Chase Bank    £       3.4 Sold        4.8        4.5        0.3  

GBP

     1/11/2023      JP Morgan Chase Bank    £       5.0 Sold        6.6        6.4        0.2  

GBP

     1/11/2023      JP Morgan Chase Bank    £       1.4 Sold        1.9        1.8        0.1  

GBP

     10/13/2023      JP Morgan Chase Bank    £       6.2 Sold        8.5        8.2        0.3  

NOK

     8/8/2025      JP Morgan Chase Bank    NOK       49.1 Sold        5.2        5.6        (0.4

NOK

     8/8/2025      JP Morgan Chase Bank    NOK       11.4 Sold        1.2        1.3        (0.1

SEK

     5/10/2024      JP Morgan Chase Bank    SEK       503.0 Sold        60.1        55.2        4.9  

SEK

     5/10/2024      JP Morgan Chase Bank    SEK       34.5 Sold        4.1        3.8        0.3  

SEK

     5/10/2024      JP Morgan Chase Bank    SEK       68.0 Sold        8.1        7.5        0.6  

SEK

     8/8/2025      JP Morgan Chase Bank    SEK       119.3 Sold        13.3        13.1        0.2  

SEK

     8/8/2025      JP Morgan Chase Bank    SEK       27.8 Sold        3.1        3.1        0.0  
             

 

 

    

 

 

    

 

 

 

Total

              $ 217.9      $ 208.5      $ 9.4  
             

 

 

    

 

 

    

 

 

 

 

(a)

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

 

See notes to unaudited consolidated financial statements.

 

25


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

(b)

Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of March 31, 2022, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.96%, the Euro Interbank Offered Rate, or EURIBOR, was (0.46)%, Canadian Dollar Offer Rate, or CDOR was 1.26%, the Australian Bank Bill Swap Bid Rate, or BBSY, or “B”, was 0.28%, the Reykjavik Interbank Offered Rate, or REIBOR, was 3.61%, the Stockholm Interbank Offered Rate, or STIBOR or “SR”, was 0.06%, the Sterling Interbank Offered Rate, or SONIA or “SA”, was 0.69%, the Secured Overnight Financing Rate, or SOFR, was 0.29% and the U.S. Prime Lending Rate, or Prime, was 3.50%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. Variable rate securities with no floor rate use the respective benchmark rate in all cases.

(c)

Denominated in U.S dollars unless otherwise noted.

(d)

Fair value determined by the 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).

(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 March 31, 2022, 77.7% of the Company’s total assets represented qualifying assets.

 

See notes to unaudited consolidated financial statements.

 

26


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

(x)

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

(y)

Security is non-income producing.

(z)

Asset is on non-accrual status.

(aa)

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

(ab)

Position or portion thereof unsettled as of March 31, 2022.

(ac)

Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio 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 March 31, 2022, the Company held investments in portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person as of March 31, 2022:

 

Portfolio Company

   Fair Value at
December 31,
2021
     Gross
Additions(1)
     Gross
Reductions(2)
    Net Realized
Gain (Loss)
    Net Change in
Unrealized
Appreciation
(Depreciation)
    Fair Value at
March 31, 2022
     Interest
Income(3)
     PIK
Income(3)
     Fee
Income(3)
     Dividend
Income(3)
 

Senior Secured Loans—First Lien

 

                    

Affordable Care Inc

   $ —        $ —        $ —       $ —       $ —       $ —        $ —        $ —        $ —        $ —    

Affordable Care Inc

     59.9        —          (21.0     —         (0.1     38.8        1.0        —          —          —    

athenahealth Inc

     —          6.8        —         —         —         6.8        —          —          0.2        —    

Belk Inc

     49.2        1.5        (0.3     (0.2     (5.9     44.3        2.2        1.3        —          —    

Belk Inc

     21.9        0.1        —         —         (0.2     21.8        0.5        —          —          —    

Borden (New Dairy Opco)

     9.0        —          (9.0     0.6       (0.6     —          0.1        —          0.3        —    

Borden (New Dairy Opco)

     42.0        0.1        (42.0     1.7       (1.8     —          0.9        —          1.3        —    

Borden Dairy Co

     —          —          —         (25.4     25.4       —          —          —          —          —    

Constellis Holdings LLC

     15.0        0.1        —         —         (0.1     15.0        0.4        —          —          —    

Fairway Group Holdings Corp

     0.7        —          —         —         (0.7     —          —          —          —          —    

Fairway Group Holdings Corp

     —          —          —         —         —         —          —          —          —          —    

Micronics Filtration Holdings LLC

     51.0        5.7        (51.7     —         (5.0     —          0.2        0.3        —          —    

Petroplex Acidizing Inc

     9.7        —          (0.1     —         2.6       12.2        —          —          —          —    

Sorenson Communications LLC

     60.1        0.2        (1.5     0.1       (0.4     58.5        1.1        —          —          —    

Sungard Availability Services Capital Inc

     6.0        0.1        —         —         (0.8     5.3        —          0.1        —          —    

ThermaSys Corp

     3.5        —          —         —         0.2       3.7        —          —          —          —    

 

See notes to unaudited consolidated financial statements.

 

27


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company

   Fair Value at
December 31,
2021
     Gross
Additions(1)
     Gross
Reductions(2)
    Net Realized
Gain (Loss)
    Net Change in
Unrealized
Appreciation
(Depreciation)
    Fair Value at
March 31, 2022
     Interest
Income(3)
     PIK
Income(3)
     Fee
Income(3)
     Dividend
Income(3)
 

Senior Secured Loans—Second Lien

 

                    

Belk Inc

   $ 6.7      $ —        $ —       $ —       $ (1.4   $ 5.3      $ —        $ —        $ —        $ —    

Constellis Holdings LLC

     12.0        0.1        —         —         (2.6     9.5        0.5        —          —          —    

Fairway Group Holdings Corp

     —          —          —         —         —         —          —          —          —          —    

Sungard Availability Services Capital Inc

     8.3        —          (0.2     —         (5.6     2.5        —          —          —          —    

Subordinated Debt

                          

athenahealth Inc

     —          5.5        —         —         (0.1     5.4        —          —          —          —    

Asset Based Finance

                          

Home Partners JV, Structured Mezzanine

     90.4        2.5        (2.5     —         (0.1     90.3        —          2.5        —          —    

Home Partners JV, Private Equity

     9.4        —          (0.3     (0.1     1.2       10.2        —          —          —          0.7  

Home Partners JV, Common Stock

     80.6        0.1        (2.2     —         8.0       86.5        —          —          —          4.3  

Home Partners JV 2, Structured Mezzanine

     3.5        1.8        —         —         —         5.3        —          0.1        —          —    

Home Partners JV 2, Private Equity

     0.1        —          —         —         —         0.1        —          —          —          —    

Home Partners JV 2, Private Equity

     1.6        0.8        —         —         0.2       2.6        —          —          —          —    

Jet Edge International LLC, Preferred Stock

     16.8        —          —         —         13.5       30.3        0.4        —          —          —    

Jet Edge International LLC, Warrant

     4.5        —          —         —         12.0       16.5        —          —          —          —    

Jet Edge International LLC, Term Loan

     75.6        74.9        (2.9     —         5.4       153.0        2.7        0.5        0.1        —    

Orchard Marine Limited, Class B Common Stock

     —          —          —         (3.1     3.1       —          —          —          —          —    

Orchard Marine Limited, Series A Preferred Stock

     64.6        —          (65.4     3.4       (2.6     —          —          —          —          —    

 

See notes to unaudited consolidated financial statements.

 

28


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company

   Fair Value at
December 31,
2021
     Gross
Additions(1)
     Gross
Reductions(2)
    Net Realized
Gain (Loss)
    Net Change in
Unrealized
Appreciation
(Depreciation)
    Fair Value at
March 31, 2022
     Interest
Income(3)
     PIK
Income(3)
     Fee
Income(3)
     Dividend
Income(3)
 

Equity/Other

                          

Affordable Care Inc, Preferred Stock

   $ 52.1      $ —        $ —       $ —       $ (1.8   $ 50.3      $ —        $ 1.4      $ —        $ —    

athenahealth Inc, Preferred Stock

     —          311.2        —         —         2.6       313.8        —          4.3        —          —    

Belk Inc, Common Stock

     —          —          —         —         —         —          —          —          —          —    

Borden (New Dairy Opco), Common Stock

     7.7        —          —         —         1.6       9.3        —          —          —          —    

Constellis Holdings LLC, Private Equity

     0.2        —          —         —         (0.2     —          —          —          —          —    

Fairway Group Holdings Corp, Common Stock

     —          —          —         —         —         —          —          —          —          —    

Fronton BV, Common Stock

     1.4        —          —         —         (0.2     1.2        —          —          —          —    

Micronics Filtration Holdings Inc, Common Stock

     —          —          (0.1     (0.5     0.6       —          —          —          —          —    

Micronics Filtration Holdings Inc, Preferred Stock, Series A

     0.1        —          —         (0.6     0.5       —          —          —          —          —    

Micronics Filtration Holdings Inc, Preferred Stock, Series B

     0.4        —          (0.4     0.2       (0.2     —          —          —          —          —    

Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK

     11.9        —          (11.9     11.9       (11.9     —          —          —          —          —    

Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK

     6.2        —          (6.2     6.2       (6.2     —          —          —          —          —    

Petroplex Acidizing Inc, Preferred Stock A

     —          —          —         —         —         —          —          —          —          —    

Petroplex Acidizing Inc, Warrant

     —          —          —         —         —         —          —          —          —          —    

Proserv Acquisition LLC, Class A Common Units

     0.1        0.1        —         —         0.8       1.0        —          —          —          —    

 

See notes to unaudited consolidated financial statements.

 

29


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

Portfolio Company

   Fair Value at
December 31,
2021
     Gross
Additions(1)
     Gross
Reductions(2)
    Net Realized
Gain (Loss)
    Net Change in
Unrealized
Appreciation
(Depreciation)
     Fair Value at
March 31, 2022
     Interest
Income(3)
     PIK
Income(3)
     Fee
Income(3)
     Dividend
Income(3)
 

Proserv Acquisition LLC, Class A Preferred Units

   $ 9.3      $ —        $ —       $ —       $ 0.2      $ 9.5      $ —        $ —        $ —        $ —    

Sorenson Communications LLC, Common Stock

     67.5        —          —         —         0.9        68.4        —          —          —          —    

Sungard Availability Services Capital Inc, Common Stock

     —          —          —         —         —          —          —          —          —          —    

ThermaSys Corp, Common Stock

     —          —          —         —         —          —          —          —          —          —    

ThermaSys Corp, Preferred Stock

     —          —          —         —         —          —          —          —          —          —    
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 859.0      $ 411.6      $ (217.7   $ (5.8   $ 30.3      $ 1,077.4      $ 10.0      $ 10.5      $ 1.9      $ 5.0  

 

(1)

Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.

(2)

Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company out of this category into a different category.

(3)

Interest, PIK, fee and dividend income presented for the full three months ended March 31, 2022.

 

See notes to unaudited consolidated financial statements.

 

30


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of March 31, 2022

(in millions, except share amounts)

 

 

 

(ad)

Under the Investment Company Act of 1940, as amended, the Company generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of March 31, 2022, the Company held investments in portfolio companies of which it is deemed to be an “affiliated person” and deemed to “control”. Durin