UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________________________________________________

FORM 10-Q

_________________________________________________

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

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 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  x    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  x    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	x	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  x.

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 283,228,981 shares of the registrant’s common stock outstanding as of July 31, 2022.

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	1
	Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021	1
	Unaudited Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021	2
	Unaudited Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2022 and 2021	4
	Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021	5
	Consolidated Schedules of Investments as of June 30, 2022 (Unaudited) and December 31, 2021	7
	Notes to Unaudited Consolidated Financial Statements	48
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	84
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	98
ITEM 4.	CONTROLS AND PROCEDURES	101
PART II—OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	102
ITEM 1A.	RISK FACTORS	102
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	102
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	103
ITEM 4.	MINE SAFETY DISCLOSURES	103
ITEM 5.	OTHER INFORMATION	103
ITEM 6.	EXHIBITS	104
	SIGNATURES	110

PART I—FINANCIAL INFORMATION

Item 1.    Financial Statements.

FS KKR Capital Corp.

Consolidated Balance Sheets

(in millions, except share and per share amounts)

	June 30, 2022		December 31, 2021
	(Unaudited)
Assets
Investments, at fair value
Non-controlled/unaffiliated investments (amortized cost—$12,620 and $12,419, respectively)	$	12,468	$	12,558
Non-controlled/affiliated investments (amortized cost—$879 and $860, respectively)	837		859
Controlled/affiliated investments (amortized cost—$3,114 and $2,778, respectively)	2,873		2,684
Total investments, at fair value (amortized cost—$16,613 and $16,057, respectively)	16,178		16,101
Cash	232		258
Foreign currency, at fair value (cost—$37 and $119, respectively)	37		119
Receivable for investments sold and repaid	498		567
Income receivable	190		153
Unrealized appreciation on foreign currency forward contracts	24		9
Deferred financing costs	24		16
Prepaid expenses and other assets	6		5
Total assets	$	17,189	$	17,228
Liabilities
Payable for investments purchased	$	27	$	2
Debt (net of deferred financing costs of $39 and $38, respectively)(1)	9,306		9,142
Unrealized depreciation on foreign currency forward contracts	0		1
Stockholder distributions payable	193		176
Management fees payable	63		60
Subordinated income incentive fees payable(2)	22		19
Administrative services expense payable	5		5
Interest payable	77		70
Other accrued expenses and liabilities	9		23
Total liabilities	9,702		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, 283,470,828 and 284,543,091 shares issued and outstanding, respectively	0		0
Capital in excess of par value	9,635		9,658
Retained earnings (accumulated deficit)(4)	(2,148)		(1,928)
Total stockholders' equity	7,487		7,730
Total liabilities and stockholders' equity	$	17,189	$	17,228
Net asset value per share of common stock at period end	$	26.41	$	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

FS KKR Capital Corp.

Unaudited Consolidated Statements of Operations

(in millions, except share and per share amounts)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Investment income
From non-controlled/unaffiliated investments:
Interest income	$	229	$	108	$	470	$	195
Paid-in-kind interest income	15		9		33		19
Fee income	13		22		40		33
Dividend and other income	17		8		25		12
From non-controlled/affiliated investments:
Interest income	7		1		17		4
Paid-in-kind interest income	14		2		25		8
Fee income	0		—		2		—
Dividend and other income	2		0		7		0
From controlled/affiliated investments:
Interest income	11		2		21		4
Paid-in-kind interest income	11		7		25		8
Fee income	0		1		0		1
Dividend and other income	60		46		110		73
Total investment income	379		206		775		357
Operating expenses
Management fees	63		30		125		55
Subordinated income incentive fees(1)	37		8		77		8
Administrative services expenses	4		2		8		4
Accounting and administrative fees	1		0		2		1
Interest expense(2)	83		46		160		88
Other general and administrative expenses	3		4		10		7
Total operating expenses	191		90		382		163
Incentive fee waiver(1)	(15)		—		(30)		—
Net expenses	176		90		352		163
Net investment income	203		116		423		194
Realized and unrealized gain/loss
Net realized gain (loss) on investments:
Non-controlled/unaffiliated investments	177		1		151		(82)
Non-controlled/affiliated investments	45		64		39		64
Controlled/affiliated investments	(39)		(13)		(39)		(56)
Net realized gain (loss) on foreign currency forward contracts	2		0		7		—
Net realized gain (loss) on foreign currency	6		(1)		7		(3)
Net change in unrealized appreciation (depreciation) on investments:
Non-controlled/unaffiliated investments	(251)		466		(291)		575
Non-controlled/affiliated investments	(71)		142		(41)		169
Controlled/affiliated investments	(184)		76		(147)		182
Net change in unrealized appreciation (depreciation) on foreign currency forward contracts	15		2		16		3

See notes to unaudited consolidated financial statements.

2

FS KKR Capital Corp.

Unaudited Consolidated Statements of Operations (continued)

(in millions, except share and per share amounts)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net change in unrealized gain (loss) on foreign currency	$	27	$	12	$	30	$	18
Total net realized and unrealized gain (loss)	(273)		749		(268)		870
Provision for taxes on realized gains on investments	(3)		—		(3)		—
Net increase (decrease) in net assets resulting from operations	$	(73)	$	865	$	152	$	1,064
Per share information—basic and diluted
Net increase (decrease) in net assets resulting from operations (Earnings (Losses) per Share)	$	(0.26)	$	5.75	$	0.53	$	7.76
Weighted average shares outstanding	283,876,365		150,356,079		284,098,718		137,129,503

_______________

(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.

3

FS KKR Capital Corp.

Unaudited Consolidated Statements of Changes in Net Assets

(in millions)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Operations
Net investment income (loss)	$	203	$	116	$	423	$	194
Net realized gain (loss) on investments, foreign currency forward contracts, foreign currency and provision for taxes on realized gains on investments	188		51		162		(77)
Net change in unrealized appreciation (depreciation) on investments and foreign currency forward contracts(1)	(491)		686		(463)		929
Net change in unrealized gain (loss) on foreign currency	27		12		30		18
Net increase (decrease) in net assets resulting from operations	(73)		865		152		1,064
Stockholder distributions(2)
Distributions to stockholders	(193)		(75)		(372)		(149)
Net decrease in net assets resulting from stockholder distributions	(193)		(75)		(372)		(149)
Capital share transactions(3)
Issuance of common stock	—		3,642		—		3,642
Repurchases of common stock	(14)		—		(23)		—
Net increase (decrease) in net assets resulting from capital share transactions	(14)		3,642		(23)		3,642
Total increase (decrease) in net assets	(280)		4,432		(243)		4,557
Net assets at beginning of period	7,767		3,221		7,730		3,096
Net assets at end of period	$	7,487	$	7,653	$	7,487	$	7,653

_______________

(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.

4

FS KKR Capital Corp.

Unaudited Consolidated Statements of Cash Flows

(in millions)

		Six Months Ended
		June 30,
		2022		2021
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations		$	152	$	1,064
	Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
	Purchases of investments(1)	(2,872)		(1,747)
	Paid-in-kind interest	(62)		(34)
	Proceeds from sales and repayments of investments	2,579		1,914
	Net realized (gain) loss on investments	(151)		74
	Net change in unrealized (appreciation) depreciation on investments(2)	479		(915)
	Net change in unrealized (appreciation) depreciation on foreign currency forward contracts	(16)		(2)
	Accretion of discount	(50)		(19)
	Amortization of deferred financing costs and discount	7		5
	Unrealized (gain)/loss on borrowings in foreign currency	(36)		(13)
	(Increase) decrease in receivable for investments sold and repaid	69		(152)
	(Increase) decrease in income receivable	(37)		(68)
	(Increase) decrease in deferred merger costs	—		1
	(Increase) decrease in prepaid expenses and other assets	(1)		(5)
	Increase (decrease) in payable for investments purchased	25		—
	Increase (decrease) in management fees payable	3		29
	Increase (decrease) in subordinated income incentive fees payable	3		29
	Increase (decrease) in administrative services expense payable	—		3
	Increase (decrease) in interest payable	7		40
	Increase (decrease) in other accrued expenses and liabilities	(14)		12
	Cash acquired in merger	—		293
	Other assets acquired from merger net of other assets	—		17
	Merger costs capitalized into purchase price	—		(8)
	Mark-to-market of merged debt	—		26
Net cash provided by (used in) operating activities		85		544
Cash flows from financing activities
	Repurchases of common stock	(23)		—
	Stockholder distributions	(355)		(148)
	Borrowings under financing arrangements(3)	2,181		1,042
	Repayments of financing arrangements(3)	(1,977)		(1,125)
	Deferred financing costs paid	(19)		(5)
Net cash provided by (used in) financing activities		(193)		(236)
Total increase (decrease) in cash		(108)		308
Cash, and foreign currency at beginning of period		377		191
Cash, and foreign currency at end of period		$	269	$	499
Supplemental disclosure
	Non-cash purchases of investments	$	(518)	$	(71)
	Non-cash sales of investments	$	518	$	71
	Local and excise taxes paid	$	11	$	9

______________

(1)For the six months ended June 30, 2021, amount excludes $7,227 of cost of investments acquired from the 2021 Merger.

(2)For the six months ended June 30, 2021, amount excludes $11 of unrealized depreciation on unfunded commitments acquired from the 2021 Merger.

(3)For the six months ended June 30, 2021, amount excludes $3,794 of debt assumed from the 2021 Merger. See Note 9 for a discussion of the Company’s financing arrangements. During the six months ended June 30, 2022 and 2021, the Company paid $146 and $60, respectively, in interest expense on the financing arrangements.

See notes to unaudited consolidated financial statements.

5

FS KKR Capital Corp.

Unaudited Consolidated Statements of Cash Flows

(in millions)

Supplemental disclosure of non-cash operating and financing activities:

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

See notes to unaudited consolidated financial statements.

6

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments

As of June 30, 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—133.9%
3Pillar Global Inc	(i)(k)(l)	Software & Services	L+575	0.8%	11/23/27	$	95.8	$	94.9	$	93.0
3Pillar Global Inc	(x)	Software & Services	L+600	0.8%	11/23/26	9.2		9.2		8.9
3Pillar Global Inc	(x)	Software & Services	L+600	0.8%	11/23/27	30.6		30.6		29.7
48Forty Solutions LLC	(f)(k)(l)(t)(v)	Commercial & Professional Services	SF+600	1.0%	11/30/26	183.6		181.9		182.3
48Forty Solutions LLC	(x)	Commercial & Professional Services	SF+600	1.0%	11/30/26	10.6		10.6		10.5
5 Arch Income Fund 2 LLC	(q)(r)(w)(y)(z)	Diversified Financials	9.0%		11/18/23	108.1		79.2		76.4
Accuride Corp	(aa)(l)	Capital Goods	L+525	1.0%	11/17/23	8.9		8.3		7.9
Advanced Dermatology & Cosmetic Surgery	(m)(t)(v)	Health Care Equipment & Services	L+625	1.0%	5/7/27	38.7		36.9		38.4
Advanced Dermatology & Cosmetic Surgery	(v)	Health Care Equipment & Services	L+625	1.0%	5/7/27	7.9		7.9		7.9
Advanced Dermatology & Cosmetic Surgery	(x)	Health Care Equipment & Services	L+625	1.0%	5/7/26	3.6		3.6		3.5
Advanced Dermatology & Cosmetic Surgery	(x)	Health Care Equipment & Services	L+625	1.0%	5/7/27	2.2		2.2		2.2
Advania Sverige AB	(v)(w)	Software & Services	SR+610, 0.0% PIK (3.3% Max PIK)	0.0%	4/28/28	SEK	933.6	105.8		89.3
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		10.0
Affordable Care Inc	(ac)(m)(v)	Health Care Equipment & Services	L+550, 0.0% PIK (1.3% Max PIK)	0.8%	8/2/28	$	44.0	43.6		43.5
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		12.7
Affordable Care Inc	(ac)(x)	Health Care Equipment & Services	L+550, 0.0% PIK (1.3% Max PIK)	0.8%	8/2/28	38.3		38.3		37.9
Alacrity Solutions Group LLC	(v)	Insurance	L+525	0.8%	12/22/27	1.5		1.3		1.4
Alacrity Solutions Group LLC	(v)	Insurance	L+525	0.8%	12/22/28	48.5		47.8		47.5
Alacrity Solutions Group LLC	(x)	Insurance	L+525	0.8%	12/22/27	9.3		9.3		9.1
Alera Group Intermediate Holdings Inc	(v)	Insurance	L+550	0.8%	10/2/28	8.9		8.9		8.7
Alera Group Intermediate Holdings Inc	(v)	Insurance	L+550	0.8%	10/2/28	6.2		6.2		6.1
Alera Group Intermediate Holdings Inc	(x)	Insurance	L+550	0.8%	10/2/28	0.3		0.3		0.3
Alera Group Intermediate Holdings Inc	(x)	Insurance	L+550	0.8%	10/2/28	16.4		16.4		16.1
American Vision Partners	(i)(v)	Health Care Equipment & Services	L+575	0.8%	9/30/27	80.5		79.9		79.2
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	33.0		33.0		32.4
Amerivet Partners Management Inc	(v)	Health Care Equipment & Services	SF+550	0.8%	2/25/28	95.9		95.0		93.9
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	€	58.6	68.7		28.6
Apex Group Limited	(aa)(v)(w)	Diversified Financials	E+400	0.0%	7/27/28	2.0		2.3		2.0
Apex Group Limited	(aa)(v)(w)	Diversified Financials	L+375	0.5%	7/27/28	$	2.5	2.5		2.4

See notes to unaudited consolidated financial statements.

7

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2022

(in millions, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor(b)	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Arcfield Acquisition Corp	(i)(v)	Capital Goods	L+575	0.8%	3/10/28	$	40.5	$	40.1	$	39.7
Arcfield Acquisition Corp	(x)	Capital Goods	L+575	0.8%	3/10/27	7.1		7.1		6.9
Arcos LLC/VA	(m)	Software & Services	L+575	1.0%	3/31/28	12.4		12.2		12.1
Arcos LLC/VA	(x)	Software & Services	L+575	1.0%	4/20/27	4.50		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	30.8		29.4
Arrotex Australia Group Pty Ltd	(v)(w)	Pharmaceuticals, Biotechnology & Life Sciences	B+525	1.0%	7/10/24	3.1		2.2		2.2
Aspect Software Inc	(v)	Software & Services	8.0% PIK (8.0% Max PIK)		7/14/23	$	0.3	0.2		0.3
athenahealth Inc	(aa)(ac)(v)	Health Care Equipment & Services	SF+350	0.5%	2/15/29	6.9		6.8		6.3
athenahealth Inc	(aa)(ac)(x)	Health Care Equipment & Services	SF+350	0.5%	2/15/29	1.2		1.2		1.1
ATX Networks Corp	(ad)(s)(v)(w)	Capital Goods	L+750	1.0%	9/1/26	41.6		41.6		41.6
AxiomSL Ltd	(f)(m)(t)(v)	Software & Services	L+600	1.0%	12/3/27	34.9		34.3		34.4
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)	Consumer Services	L+575	0.8%	4/28/28	61.8		57.8		61.8
Barbri Inc	(v)	Consumer Services	L+575	0.8%	4/28/28	30.1		30.1		30.1
Barbri Inc	(k)(l)	Consumer Services	L+575	0.8%	4/30/28	34.9		34.6		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		20.1
Belk Inc	(aa)(ac)(v)	Retailing	5.0%, 8.0% PIK (8.0% Max PIK)		7/31/25	68.8		43.3		29.1
BGB Group LLC	(f)(i)(k)(l)(m)(t)	Media & Entertainment	L+575	1.0%	8/16/27	111.7		110.7		110.5
BGB Group LLC	(x)	Media & Entertainment	L+575	1.0%	8/16/27	19.9		19.9		19.7
Bowery Farming Inc	(v)	Food, Beverage & Tobacco	L+1,000	1.0%	4/30/26	75.0		74.4		69.5
Caldic BV	(aa)(v)(w)	Retailing	E+400	0.0%	2/4/29	€	0.8	0.9		0.8
Caldic BV	(aa)(v)(w)	Retailing	SF+400	0.5%	2/26/29	$	1.4	1.4		1.4
CFC Underwriting Ltd	(v)(w)	Insurance	SF+550, 0.0% PIK (3.0% Max PIK)	0.5%	5/16/29	39.5		38.5		38.4
CFC Underwriting Ltd	(w)(x)	Insurance	SF+550, 0.0% PIK (3.0% Max PIK)	0.5%	5/16/29	5.9		5.8		5.8
Cimarron Energy Inc	(v)(y)(z)	Energy	L+900	1.0%	12/31/24	7.5		5.2		5.5
Clarience Technologies LLC	(f)(i)(k)(m)(s)(v)	Capital Goods	SF+625	1.0%	12/14/26	277.5		267.4		277.5
Clarience Technologies LLC	(v)	Capital Goods	L+625	1.0%	12/31/26	18.0		17.8		18.0
Clarience Technologies LLC	(x)	Capital Goods	L+625	1.0%	12/13/24	25.4		25.3		25.4
ClubCorp Club Operations Inc	(aa)(ab)(v)	Consumer Services	L+275	0.0%	9/18/24	23.2		21.4		21.5
Community Brands Inc	(v)	Software & Services	SF+575	0.8%	2/24/28	32.9		32.3		32.2

See notes to unaudited consolidated financial statements.

8

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2022

(in millions, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor(b)	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Community Brands Inc	(x)	Software & Services	SF+575	0.8%	2/24/28	$	3.9	$	3.8	$	3.8
Community Brands Inc	(x)	Software & Services	SF+575	0.8%	2/24/28	1.9		1.9		1.9
Constellis Holdings LLC	(ac)(v)	Capital Goods	L+750	1.0%	3/27/24	15.0		14.2		15.0
Corsearch Intermediate Inc	(m)(v)	Software & Services	L+550	1.0%	4/19/28	27.1		25.5		27.2
Corsearch Intermediate Inc	(v)	Software & Services	L+550	1.0%	4/19/28	2.9		2.9		3.0
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	187.8		182.0		187.8
CSafe Global	(v)	Capital Goods	L+625	0.8%	12/23/27	£	27.3	36.1		33.2
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	126.7		122.6		125.6
Dental Care Alliance Inc	(x)	Health Care Equipment & Services	SF+600	0.8%	4/3/28	11.1		11.1		11.0
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
Element Materials Technology Group US Holdings Inc	(aa)(ab)(v)(w)	Commercial & Professional Services	SF+425	0.5%	4/12/29	1.0		1.0		0.9
Element Materials Technology Group US Holdings Inc	(aa)(ab)(v)(w)	Commercial & Professional Services	E+425	0.0%	4/12/29	€	0.3	0.4		0.3
Element Materials Technology Group US Holdings Inc	(aa)(w)(x)	Commercial & Professional Services	SF+425	0.5%	4/12/29	$	0.4	0.4		0.4
Encora Digital Inc	(v)	Software & Services	L+550, 0.0% PIK (2.4% Max PIK)	0.7%	12/13/28	65.1		63.9		62.9
Encora Digital Inc	(x)	Software & Services	L+550	0.7%	12/13/28	19.6		19.4		18.9
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		—		—
Follett Software Co	(f)(k)(l)(t)	Software & Services	L+575	0.8%	8/31/28	74.1		73.4		73.3
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	92.3		88.6		93.2
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	65.9		65.0		64.4
Foundation Risk Partners Corp	(v)	Insurance	L+550	0.8%	10/29/28	14.3		14.2		14.0
Foundation Risk Partners Corp	(x)	Insurance	L+575	0.8%	10/29/27	7.0		6.9		6.8
Frontline Technologies Group LLC	(i)(m)(s)(v)	Software & Services	L+525	1.0%	9/18/23	60.5		58.8		60.5
Galaxy Universal LLC	(v)	Consumer Durables & Apparel	SF+575	0.0%	6/24/23	7.5		7.5		7.5
Galaxy Universal LLC	(v)	Consumer Durables & Apparel	SF+575	1.0%	11/12/26	88.5		88.5		88.5
Galaxy Universal LLC	(v)	Consumer Durables & Apparel	L+500	1.0%	11/12/26	24.4		24.2		24.3
Galway Partners Holdings LLC	(k)(l)(t)(v)	Insurance	L+525, 0.0% PIK (1.3% Max PIK)	0.8%	9/29/28	99.6		97.9		97.0
Galway Partners Holdings LLC	(x)	Insurance	L+525, 0.0% PIK (1.3% Max PIK)	0.8%	9/30/27	12.0		11.7		11.6

See notes to unaudited consolidated financial statements.

9

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2022

(in millions, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor(b)	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Galway Partners Holdings LLC	(x)	Insurance	L+525, 0.0% PIK (1.3% Max PIK)	0.8%	9/29/28	$	13.4	$	13.3	$	13.0
General Datatech LP	(f)(k)(l)(m)(t)(v)	Software & Services	L+625	1.0%	6/18/27	166.9		165.5		161.6
Gigamon Inc	(v)	Software & Services	SF+575	0.8%	3/12/29	171.3		169.6		166.3
Gigamon Inc	(x)	Software & Services	SF+575	0.8%	3/13/28	9.3		9.3		9.1
Greystone Equity Member Corp	(v)(w)	Diversified Financials	L+725	3.8%	4/1/26	194.8		183.8		188.7
Heniff Transportation Systems LLC	(v)	Transportation	L+575	1.0%	12/3/24	7.1		6.9		6.8
Heniff Transportation Systems LLC	(f)(i)(k)(l)(m)(v)	Transportation	L+575	1.0%	12/3/26	137.0		130.4		130.9
Heniff Transportation Systems LLC	(v)	Transportation	L+625	1.0%	12/3/26	19.3		18.5		18.8
Heniff Transportation Systems LLC	(x)	Transportation	L+575	1.0%	12/3/24	10.7		10.7		10.2
Hibu Inc	(f)(k)(l)(m)(t)(v)	Commercial & Professional Services	SF+625	1.0%	5/4/27	100.3		95.7		101.8
Higginbotham Insurance Agency Inc	(v)	Insurance	L+550	0.8%	11/25/26	1.4		1.4		1.5
Higginbotham Insurance Agency Inc	(v)	Insurance	L+550	0.8%	11/25/26	7.0		6.6		7.0
Higginbotham Insurance Agency Inc	(x)	Insurance	L+550	0.8%	11/25/26	8.9		8.9		9.0
HM Dunn Co Inc	(ad)(v)	Capital Goods	L+600 PIK (L+600 Max PIK)	1.0%	6/30/26	34.8		34.8		34.8
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	(m)(s)(v)	Capital Goods	L+625	1.0%	11/22/25	100.9		97.0		101.0
Individual FoodService	(x)	Capital Goods	L+625	1.0%	11/22/24	4.8		4.7		4.8
Individual FoodService	(x)	Capital Goods	L+625	1.0%	11/22/25	4.9		4.9		4.9
Industria Chimica Emiliana Srl	(v)(w)	Pharmaceuticals, Biotechnology & Life Sciences	E+725	0.0%	9/27/26	€	88.8	101.7		91.7
Industry City TI Lessor LP	(s)(v)	Consumer Services	10.8%, 1.0% PIK (1.0% Max PIK)		6/30/26	$	27.8	27.9		29.3
Insight Global LLC	(v)	Commercial & Professional Services	L+600	0.8%	9/22/27	5.8		5.8		5.7
Insight Global LLC	(i)(v)	Commercial & Professional Services	L+600	0.8%	9/22/28	204.3		202.4		200.2
Insight Global LLC	(x)	Commercial & Professional Services	L+600	0.8%	9/22/27	15.3		15.3		15.0
Insight Global LLC	(x)	Commercial & Professional Services	L+600	0.8%	9/22/28	26.8		26.8		26.3
Integrity Marketing Group LLC	(v)	Insurance	L+550	0.8%	8/27/25	114.2		114.2		112.4
Integrity Marketing Group LLC	(x)	Insurance	L+550	0.8%	8/27/25	10.8		10.8		10.6
J S Held LLC	(f)(i)(m)(s)(v)	Insurance	L+550	1.0%	7/1/25	125.8		123.5		125.8
J S Held LLC	(v)	Insurance	L+550	1.0%	7/1/25	1.2		1.0		1.2
J S Held LLC	(f)(v)	Insurance	SF+550	1.0%	7/1/25	21.7		21.7		21.7
J S Held LLC	(x)	Insurance	L+550	1.0%	7/1/25	12.9		12.9		12.9
J S Held LLC	(x)	Insurance	SF+550	1.0%	7/1/25	22.4		22.4		22.4
Jarrow Formulas Inc	(f)(i)(k)(l)(m)(s)(t)(v)	Household & Personal Products	L+625	1.0%	11/30/26	184.2		175.6		187.9
Karman Space Inc	(m)(v)	Capital Goods	L+700	1.0%	12/21/25	52.8		50.3		53.1
Karman Space Inc	(v)	Capital Goods	L+700	1.0%	12/21/25	3.3		3.1		3.3

See notes to unaudited consolidated financial statements.

10

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2022

(in millions, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor(b)	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Karman Space Inc	(v)	Capital Goods	L+700	1.0%	12/21/25	$	38.3	$	37.7	$	38.6
Karman Space Inc	(x)	Capital Goods	L+700	1.0%	12/21/25	2.2		2.2		2.2
Kellermeyer Bergensons Services LLC	(f)(i)(k)(l)(m)(s)(v)	Commercial & Professional Services	L+600	1.0%	11/7/26	216.2		207.7		210.5
Kellermeyer Bergensons Services LLC	(v)	Commercial & Professional Services	L+600	1.0%	11/7/26	85.1		84.4		82.8
Kellermeyer Bergensons Services LLC	(t)(v)	Commercial & Professional Services	L+600	1.0%	11/7/26	54.0		52.3		52.6
Kellermeyer Bergensons Services LLC	(v)	Commercial & Professional Services	L+600	1.0%	11/7/26	15.5		15.4		15.1
Lakefield Veterinary Group	(f)(i)(v)	Health Care Equipment & Services	L+550	0.8%	11/23/28	102.3		101.5		100.2
Lakefield Veterinary Group	(x)	Health Care Equipment & Services	L+550	0.8%	11/23/28	41.8		41.8		40.9
Lakeview Farms Inc	(l)(m)(v)	Food, Beverage & Tobacco	L+625	1.0%	6/10/27	76.8		75.0		73.2
Lakeview Farms Inc	(v)	Food, Beverage & Tobacco	L+625	1.0%	6/10/27	5.0		5.0		4.8
Lakeview Farms Inc	(x)	Food, Beverage & Tobacco	L+625	1.0%	6/10/27	10.8		10.8		10.3
Lakeview Farms Inc	(x)	Food, Beverage & Tobacco	L+625	1.0%	6/10/27	1.8		1.8		1.7
Lexitas Inc	(i)(k)(l)(m)(v)	Commercial & Professional Services	SF+625	1.0%	5/18/29	121.5		118.4		120.3
Lexitas Inc	(x)	Commercial & Professional Services	SF+625	1.0%	5/18/29	8.4		8.4		8.3
Lexitas Inc	(x)	Commercial & Professional Services	SF+625	1.0%	5/18/29	12.3		12.3		12.2
Lionbridge Technologies Inc	(f)(k)(m)(s)(t)(v)	Consumer Services	SF+700	1.0%	12/29/25	126.0		121.7		127.5
Lipari Foods LLC	(f)(m)(s)(v)	Food & Staples Retailing	SF+575	1.0%	1/6/25	270.3		261.0		270.3
Lloyd's Register Quality Assurance Ltd	(v)(w)	Consumer Services	SA+600, 0.0% PIK (6.3% Max PIK)	0.0%	12/2/28	£	5.7	7.4		6.7
Lloyd's Register Quality Assurance Ltd	(w)(x)	Consumer Services	SA+600, 0.0% PIK (6.3% Max PIK)	0.0%	12/2/28	9.3		12.6		12.3
Matchesfashion Ltd	(v)(w)(y)(z)	Consumer Durables & Apparel	L+463, 3.0% PIK (3.0% Max PIK)	0.0%	10/11/24	$	13.1	12.7		6.9
MB2 Dental Solutions LLC	(v)	Health Care Equipment & Services	L+600	1.0%	1/29/27	116.8		116.0		115.6
MB2 Dental Solutions LLC	(k)(l)(m)(t)(v)	Health Care Equipment & Services	L+600	1.0%	1/29/27	157.7		148.7		156.1
MB2 Dental Solutions LLC	(x)	Health Care Equipment & Services	L+600	1.0%	1/29/27	11.9		11.9		11.8
Medallia Inc	(v)	Software & Services	L+675 PIK (L+675 Max PIK)	0.8%	10/29/28	171.8		170.2		170.0
Med-Metrix	(v)	Software & Services	L+600	1.0%	9/15/27	50.1		49.7		50.2
Med-Metrix	(v)	Software & Services	L+600	1.0%	9/15/27	6.2		6.2		6.2
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	179.7		171.2		166.0
Monitronics International Inc	(aa)(f)(v)	Commercial & Professional Services	L+750	1.3%	3/29/24	18.7		17.4		12.4
Monitronics International Inc	(v)	Commercial & Professional Services	L+600	1.5%	7/3/24	59.6		57.5		55.8
Monitronics International Inc	(x)	Commercial & Professional Services	L+600	1.5%	7/3/24	10.4		10.4		9.7
Motion Recruitment Partners LLC	(v)	Commercial & Professional Services	SF+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	54.9		51.1		54.9
Motion Recruitment Partners LLC	(f)(i)(v)	Commercial & Professional Services	SF+650	1.0%	12/22/25	64.3		64.3		64.3

See notes to unaudited consolidated financial statements.

11

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2022

(in millions, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor(b)	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
Motion Recruitment Partners LLC	(x)	Commercial & Professional Services	SF+650	1.0%	12/19/25	$	59.6	$	59.6	$	59.6
NBG Home	(v)	Consumer Durables & Apparel	L+550	1.0%	4/26/24	76.9		73.5		48.5
NCI Inc	(v)	Software & Services	L+750, 0.0% PIK (2.5% Max PIK)	1.0%	8/15/24	77.8		76.9		72.4
Net Documents	(v)	Software & Services	L+625	1.0%	6/30/27	24.6		24.4		24.2
Net Documents	(v)	Software & Services	L+625	1.0%	6/30/27	1.6		1.6		1.6
Net Documents	(x)	Software & Services	L+625	1.0%	6/30/27	7.4		7.3		7.3
Net Documents	(x)	Software & Services	L+625	1.0%	6/30/27	1.4		1.4		1.4
New Era Technology Inc	(i)(l)(m)(t)(v)	Software & Services	L+625	1.0%	10/31/26	75.9		74.0		74.9
New Era Technology Inc	(v)	Software & Services	L+625	1.0%	10/31/26	2.1		2.1		2.1
New Era Technology Inc	(x)	Software & Services	L+625	1.0%	10/31/26	2.6		2.6		2.5
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	(i)(k)(l)(m)(v)	Capital Goods	SF+800	1.0%	10/8/26	129.8		123.5		127.7
Omnimax International Inc	(f)(v)	Capital Goods	SF+800	1.0%	10/8/26	65.4		63.6		64.3
One Call Care Management Inc	(aa)(ad)(v)	Health Care Equipment & Services	L+550	0.8%	4/22/27	5.0		4.7		4.0
Oxford Global Resources LLC	(f)(k)(l)(m)(t)	Commercial & Professional Services	SF+600	1.0%	8/17/27	88.0		87.2		88.0
Oxford Global Resources LLC	(v)	Commercial & Professional Services	SF+600	1.0%	8/17/27	5.0		5.0		5.0
Oxford Global Resources LLC	(x)	Commercial & Professional Services	SF+600	1.0%	8/17/27	15.3		15.3		15.3
Oxford Global Resources LLC	(x)	Commercial & Professional Services	SF+600	1.0%	8/17/27	2.7		2.7		2.7
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	247.8		233.0		230.9
P2 Energy Solutions Inc.	(x)	Software & Services	L+675	1.0%	1/31/25	11.4		11.4		10.7
Parata Systems	(f)(m)(v)	Health Care Equipment & Services	L+575	1.0%	6/30/27	73.5		73.0		74.2
Parata Systems	(v)	Health Care Equipment & Services	L+575	1.0%	6/30/27	3.7		3.7		3.7
Parata Systems	(x)	Health Care Equipment & Services	L+575	1.0%	6/30/27	18.3		18.3		18.5
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	100.9		99.9		97.8
PartsSource Inc	(v)	Health Care Equipment & Services	L+575	0.8%	8/23/28	65.4		64.7		64.5
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		22.5
Peraton Corp	(aa)(v)	Capital Goods	L+375	0.8%	2/1/28	8.8		8.5		8.3
Performance Health Holdings Inc	(f)(i)(m)(v)	Health Care Equipment & Services	L+600	1.0%	7/12/27	108.3		107.3		108.3
Petroplex Acidizing Inc	(ac)(v)(y)(z)	Energy	L+825, 1.8% PIK (1.8% Max PIK)	1.0%	6/30/23	27.7		21.4		13.2
Premium Credit Ltd	(v)(w)	Diversified Financials	SA+650	0.0%	1/16/26	£	55.9	73.0		68.0
Production Resource Group LLC	(ad)(v)	Media & Entertainment	L+500, 3.1% PIK (3.1% Max PIK)	1.0%	8/21/24	$	91.6	88.1		93.8
Production Resource Group LLC	(ad)(v)	Media & Entertainment	L+300, 5.5% PIK (5.5% Max PIK)	0.3%	8/21/24	140.1		133.1		142.9

See notes to unaudited consolidated financial statements.

12

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of June 30, 2022

(in millions, except share amounts)

Portfolio Company(a)	Footnotes	Industry	Rate(b)	Floor(b)	Maturity	Principal Amount(c)		Amortized Cost		Fair Value(d)
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)(x)	Media & Entertainment	L+500, 3.1% PIK (3.1% Max PIK)	1.0%	8/21/24	4.0		4.0		4.1
Propulsion Acquisition LLC	(f)(l)(s)(t)(v)	Capital Goods	L+700	1.0%	7/13/24	60.2		57.1		60.8
PSKW LLC	(i)(l)(s)(t)(v)	Health Care Equipment & Services	L+625	1.0%	3/9/26	293.3		283.2		293.3
Pure Fishing Inc	(aa)(v)	Consumer Durables & Apparel	L+450	0.0%	12/22/25	33.9		33.3		29.1
Qdoba Restaurant Corp	(aa)(m)(v)	Consumer Services	L+700	1.0%	3/21/25	10.9		10.8		9.6
Reliant Rehab Hospital Cincinnati LLC	(f)(i)(l)(m)(s)(v)	Health Care Equipment & Services	L+625	0.0%	2/28/26	107.4		101.8		99.3