The following is a summary of the FS KKR Capital Corp (FSK) Q3 2024 Earnings Call Transcript:

Financial Performance:

• FSK reported net investment income of $0.77 per share and adjusted net investment income of $0.74 per share, exceeding guidance.

• Announced fourth-quarter distribution of $0.70 per share, reflecting robust yield management and a successful distribution strategy.

• Generated a total investment income of $441 million with $356 million as interest income,

• showing a stable financial capacity to cover distributions and operational expenses.

• Net asset value per share stood at $23.82, indicating sustained value per shareholder equity.

Business Progress:

• Originated approximately $1.1 billion in new investments during the quarter, emphasizing aggressive portfolio growth.

• Continued to focus on high credit quality and disciplined underwriting to maintain portfolio health.

• Engaged in strategic asset rotation and preparing for an active M&A environment in 2025.

Opportunities:

• Anticipates improved credit metrics due to recent reductions in interest rates, benefiting portfolio companies.

• Sees potential for increased M&A activities and investment opportunities due to favorable market conditions.

Risks:

• Competitively tight credit spreads and borrower-friendly terms challenge sustainable returns.

• Portfolio re-pricings and trade-offs in yield-to-risk ratio due to market pressure and deal competitivity.

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