FS KKR Capital Corp (FSK)

FORM 10-Q | Quarterly Report
Nov. 7, 2019 4:21 PM
|
About: FS KKR Capital Corp (FSK)View as PDF
FS KKR Capital Corp (Form: 10-Q, Received: 11/07/2019 16:22:44)
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

 

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

 

    

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2019

 

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

COMMISSION FILE NUMBER: 814-00757

 

 

FS KKR Capital Corp.

(Exact name of registrant as specified in its charter)

 

 

 

Maryland   26-1630040
(State of Incorporation)   (I.R.S. Employer Identification Number)

201 Rouse Boulevard

Philadelphia, Pennsylvania

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

Registrant’s telephone number, including area code: (215) 495-1150

 

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☐    No  ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer  ☒      Accelerated filer  ☐
Non-accelerated filer  ☐      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 509,072,685 shares of the registrant’s common stock outstanding as of November 6, 2019.

 

 

 


Table of Contents

TABLE OF CONTENTS

 

         

Page

PART I—FINANCIAL INFORMATION

  
ITEM 1.   

FINANCIAL STATEMENTS

   1
  

Consolidated Balance Sheets as of September 30, 2019 (Unaudited) and December 31, 2018

   1
  

Unaudited Consolidated Statements of Operations for the three and nine months ended September  30, 2019 and 2018

   2
  

Unaudited Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2019 and 2018

   3
  

Unaudited Consolidated Statements of Cash Flows for the nine months ended September 30, 2019 and 2018

   4
  

Consolidated Schedules of Investments as of September 30, 2019 (Unaudited) and December 31, 2018

   5
  

Notes to Unaudited Consolidated Financial Statements

   35
ITEM 2.   

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

   70
ITEM 3.   

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   84
ITEM 4.   

CONTROLS AND PROCEDURES

   85

PART II—OTHER INFORMATION

  
ITEM 1.   

LEGAL PROCEEDINGS

   86
ITEM 1A.   

RISK FACTORS

   86
ITEM 2.   

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

   86
ITEM 3.   

DEFAULTS UPON SENIOR SECURITIES

   86
ITEM 4.   

MINE SAFETY DISCLOSURES

   86
ITEM 5.   

OTHER INFORMATION

   86
ITEM 6.   

EXHIBITS

   87
  

SIGNATURES

   89

 


Table of Contents

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

FS KKR Capital Corp.

Consolidated Balance Sheets

(in millions, except share and per share amounts)

 

 

 

     September 30, 2019
(Unaudited)
    December 31, 2018  

Assets

    

Investments, at fair value

    

Non-controlled/unaffiliated investments (amortized cost—$6,009 and $6,457, respectively)

   $ 5,715     $ 6,217  

Non-controlled/affiliated investments (amortized cost—$598 and $382, respectively)

     636       358  

Controlled/affiliated investments (amortized cost—$979 and $917, respectively)

     867       812  
  

 

 

   

 

 

 

Total investments, at fair value (amortized cost—$7,586 and $7,756, respectively)

   $ 7,218     $ 7,387  

Cash

     115       101  

Foreign currency, at fair value (cost—$11 and $3, respectively)

     11       3  

Receivable for investments sold and repaid

     328       144  

Income receivable

     84       60  

Unrealized appreciation on foreign currency forward contracts

     9       3  

Deferred financing costs

     6       6  

Prepaid expenses and other assets

     3       1  
  

 

 

   

 

 

 

Total assets

   $ 7,774     $ 7,705  
  

 

 

   

 

 

 

Liabilities

    

Payable for investments purchased

   $ 71     $ 6  

Debt (net of deferred financing costs of $9 and $3, respectively)(1)

     3,508       3,391  

Unrealized depreciation on swap contracts

     1       16  

Unrealized depreciation on foreign currency forward contracts

     0       0  

Stockholder distributions payable

     98       45  

Management fees payable

     28       20  

Subordinated income incentive fees payable(2)

     8       14  

Administrative services expense payable

     4       1  

Interest payable

     29       28  

Directors’ fees payable

     0       0  

Other accrued expenses and liabilities

     3       18  
  

 

 

   

 

 

 

Total liabilities

     3,750       3,539  
  

 

 

   

 

 

 

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, 512,262,372 and 531,478,739 shares issued and outstanding, respectively

     1       1  

Capital in excess of par value

     4,117       4,235  

Retained earnings (accumulated deficit)(4)

     (94     (70
  

 

 

   

 

 

 

Total stockholders’ equity

     4,024       4,166  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 7,774     $ 7,705  
  

 

 

   

 

 

 

Net asset value per share of common stock at period end

   $ 7.86     $ 7.84  

 

(1)

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

 

(2)

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

 

(3)

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

 

(4)

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

See notes to unaudited consolidated financial statements.

 

1


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Statements of Operations

(in millions, except share and per share amounts)

 

 

 

    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2019     2018     2019     2018  

Investment income

       

Interest income

  $ 153     $ 73     $ 451     $ 226  

Paid-in-kind interest income

    7       10       23       27  

Fee income

    7       4       26       10  

Dividend income

    5       1       9       8  

From non-controlled/affiliated investments:

       

Interest income

    7       1       18       5  

Paid-in-kind interest income

    4       2       12       6  

From controlled/affiliated investments:

       

Interest income

    3       1       8       3  

Paid-in-kind interest income

    —         3       4       7  

Dividend income

    13       —         42       —    
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    199       95       593       292  
 

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

       

Management fees(1)

    28       14       85       47  

Subordinated income incentive fees(2)

    8       —         57       23  

Administrative services expenses

    4       1       7       3  

Accounting and administrative fees

    0       1       1       1  

Interest expense(3)

    42       21       126       62  

Directors’ fees

    1       0       1       1  

Other general and administrative expenses

    1       2       5       5  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    84       39       282       142  

Management fee waiver(1)

    —         (0     —         (3
 

 

 

   

 

 

   

 

 

   

 

 

 

Net expenses

    84       39       282       139  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    115       56       311       153  
 

 

 

   

 

 

   

 

 

   

 

 

 

Realized and unrealized gain/loss

       

Net realized gain (loss) on investments:

       

Non-controlled/unaffiliated investments

    (17     23       (83     60  

Non-controlled/affiliated investments

    29       —         21       (10

Controlled/affiliated investments

    5       0       2       0  

Net realized gain (loss) on swap contracts

    —         —         (10     —    

Net realized gain (loss) on foreign currency forward contracts

    2       —         6       —    

Net realized gain (loss) on foreign currency

    2       6       3       6  

Net change in unrealized appreciation (depreciation) on investments:

       

Non-controlled/unaffiliated investments

    (73     (104     (54     (203

Non-controlled/affiliated investments

    (15     8       62       (19

Controlled/affiliated investments

    12       6       (7     (12

Net change in unrealized appreciation (depreciation) on swap contracts

    1       —         15       —    

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

    7       —         6       —    

Net change in unrealized gain (loss) on foreign currency

    3       (7     1       (5
 

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized and unrealized gain (loss)

  $ (44   $ (68   $ (38   $ (183
 

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

  $ 71     $ (12   $ 273     $ (30
 

 

 

   

 

 

   

 

 

   

 

 

 

Per share information—basic and diluted

       

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

  $ 0.14     $ (0.05   $ 0.52     $ (0.12
 

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

    517,543,295       239,495,341       522,380,207       242,647,216  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

See Note 4 for a discussion of the waiver by FB Income Advisor, LLC, the Company’s former investment adviser, of certain management fees to which it was otherwise entitled during the applicable period.

 

(2)

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

 

(3)

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
September 30,
    Nine Months Ended
September 30,
 
         2019             2018             2019             2018      

Operations

        

Net investment income (loss)

   $ 115     $ 56     $ 311     $ 153  

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

     21       29       (61     56  

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

     (68     (90     22       (234

Net change in unrealized gain (loss) on foreign currency

     3       (7     1       (5
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

     71       (12     273       (30
  

 

 

   

 

 

   

 

 

   

 

 

 

Stockholder distributions(2)

        

Distributions to stockholders

     (98     (45     (297     (138
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in net assets resulting from stockholder distributions

     (98     (45     (297     (138
  

 

 

   

 

 

   

 

 

   

 

 

 

Capital share transactions(3)

        

Repurchases of common stock

     (47     (11     (118     (50
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     (47     (11     (118     (50
  

 

 

   

 

 

   

 

 

   

 

 

 

Total increase (decrease) in net assets

     (74     (68     (142     (218

Net assets at beginning of period

     4,098       2,135       4,166       2,285  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net assets at end of period

   $ 4,024     $ 2,067     $ 4,024     $ 2,067  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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)

 

 

 

    Nine Months Ended
September 30,
 
        2019             2018      

Cash flows from operating activities

   

Net increase (decrease) in net assets resulting from operations

  $ 273     $ (29

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

   

Purchases of investments

    (1,760     (541

Paid-in-kind interest

    (39     (39

Proceeds from sales and repayments of investments

    1,925       789  

Net realized (gain) loss on investments

    60       (50

Net change in unrealized (appreciation) depreciation on investments

    (1     234  

Net change in unrealized (appreciation) depreciation on swap contracts

    (15     —    

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

    (6     —    

Accretion of discount

    (16     (5

Amortization of deferred financing costs and discount

    5       5  

Unrealized (gain)/loss on borrowings in foreign currency

    (4     (2

(Increase) decrease in receivable for investments sold and repaid

    (184     (24

(Increase) decrease in income receivable

    (24     7  

(Increase) decrease in deferred merger costs

    —         (3

(Increase) decrease in prepaid expenses and other assets

    (2     1  

Increase (decrease) in payable for investments purchased

    65       (1

Increase (decrease) in management fees payable

    8       (1

Increase (decrease) in subordinated income incentive fees payable

    (6     (13

Increase (decrease) in administrative services expense

    3       1  

Increase (decrease) in interest payable

    1       (5

Increase (decrease) in other accrued expenses and liabilities

    (15     (6
 

 

 

   

 

 

 

Net cash provided by (used in) operating activities

    268       318  
 

 

 

   

 

 

 

Cash flows from financing activities

   

Repurchases of common stock

    (118     (50

Stockholder distributions

    (244     (139

Borrowings under financing arrangements(1)

    2,904       347  

Repayments of financing arrangements(1)

    (2,775     (510

Deferred financing costs paid

    (13     (5
 

 

 

   

 

 

 

Net cash provided by (used in) financing activities

    (246     (357
 

 

 

   

 

 

 

Total increase (decrease) in cash

    22       (39

Cash, and foreign currency at beginning of period

    104       139  
 

 

 

   

 

 

 

Cash, and foreign currency at end of period

  $ 126     $ 100  
 

 

 

   

 

 

 

Supplemental disclosure

   

Non-cash purchases of investments

  $ (112   $ —    
 

 

 

   

 

 

 

Non-cash sales of investments

  $ 112     $ —    
 

 

 

   

 

 

 

Local and excise taxes paid

  $ 9     $ 6  
 

 

 

   

 

 

 

 

(1)

See Note 9 for a discussion of the Company’s financing arrangements. During the nine months ended September 30, 2019 and 2018, the Company paid $122 and $62, 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 September 30, 2019

(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—91.0%

               

5 Arch Income Fund 2, LLC

  (l)(q)   Diversified Financials   10.5%     11/18/23   $ 42.3     $ 42.3     $ 42.2  

5 Arch Income Fund 2, LLC

  (l)(q)(v)   Diversified Financials   10.5%     11/18/23     35.3       35.3       35.3  

A10 Capital LLC

  (g)(h)   Diversified Financials   L+650   1.0%   5/1/23     30.3       30.0       29.9  

A10 Capital LLC

  (v)   Diversified Financials   L+650   1.0%   5/1/23     14.1       14.0       14.0  

Abaco Systems, Inc

  (e)(g)(h)(i)   Capital Goods   L+600   1.0%   12/7/21     61.4       60.1       61.3  

ABB CONCISE Optical Group LLC

  (g)(h)(x)   Retailing   L+500   1.0%   6/15/23     13.0       13.0       12.4  

Accuride Corp

  (g)(h)(i)(x)   Capital Goods   L+525   1.0%   11/17/23     18.0       17.7       15.2  

Acosta Holdco Inc

  (g)(n)(w)(x)   Commercial & Professional Services   L+325   1.0%   9/26/21     19.0       17.3       6.0  

Advanced Lighting Technologies Inc

  (g)(z)   Materials   L+750   1.0%   10/4/22     20.0       17.8       18.0  

Advantage Sales & Marketing Inc

  (g)(h)(x)   Commercial & Professional Services   L+325   1.0%   7/23/21     17.6       16.9       16.5  

Alion Science & Technology Corp

  (h)(x)   Capital Goods   L+450   1.0%   8/19/21     2.7       2.7       2.7  

All Systems Holding LLC

  (e)(f)(g)(h)   Commercial & Professional Services   L+625   1.0%   10/31/23     86.6       86.6       87.5  

All Systems Holding LLC

  (v)   Commercial & Professional Services   L+625   1.0%   10/31/23     35.4       35.4       35.7  

AltEn, LLC

  (g)(n)(w)(y)   Energy   L+400 PIK (L+400 Max PIK)     9/12/21     35.3       2.7       1.5  

Altus Power America Inc

  (g)   Energy   L+750   1.5%   9/30/21     3.7       3.7       3.6  

AM General LLC

  (e)(g)(h)(i)   Capital Goods   L+725   1.0%   12/28/21     151.8       151.3       153.1  

American Tire Distributors Inc

  (g)(k)(x)   Automobiles & Components   L+750   1.0%   9/2/24     23.3       22.0       20.6  

Ammeraal Beltech Holding BV

  (g)(l)(x)   Capital Goods   E+375     7/30/25   2.0       2.3       2.1  

Amtek Global Technology Pte Ltd

  (j)(l)(z)   Automobiles & Components   E+500     4/4/24     49.2       60.5       53.7  

Apex Group Limited

  (l)(v)   Diversified Financials   L+650   1.3%   6/15/23   $ 1.9       1.8       1.9  

Apex Group Limited

  (g)(l)   Diversified Financials   L+650   1.3%   6/15/25     6.1       6.0       6.1  

Apex Group Limited

  (g)(l)   Diversified Financials   L+700   1.0%   6/15/25     41.7       41.6       41.7  

Apex Group Limited

  (g)(h)(l)   Diversified Financials   L+700   1.3%   6/15/25     12.7       12.4       12.7  

Apex Group Limited

  (g)(l)   Diversified Financials   L+700   1.5%   6/15/25   £ 31.7       40.3       39.2  

Aspect Software Inc

  (v)   Software & Services   L+500   1.0%   7/15/23   $ 0.7       0.7       0.7  

Aspect Software Inc

  (g)   Software & Services   L+500   1.0%   1/15/24     3.0       2.7       2.7  

athenahealth Inc

  (g)(x)   Health Care Equipment & Services   L+450     2/11/26     24.9       25.1       24.9  

AVF Parent LLC

  (g)(n)(w)   Retailing   L+725   1.3%   3/1/24     54.3       54.3       30.9  

Berner Food & Beverage LLC

  (g)(i)   Food & Staples Retailing   L+875   1.0%   2/2/23     62.0       61.5       62.2  

Borden Dairy Co

  (g)(h)   Food, Beverage & Tobacco   L+750   1.0%   7/6/23     70.0       70.0       61.0  

Brand Energy & Infrastructure Services Inc

  (h)(x)   Capital Goods   L+425   1.0%   6/21/24     3.0       3.0       2.9  

Bugaboo International BV

  (g)(l)   Consumer Durables & Apparel   E+700, 7.8% PIK (7.8% Max PIK)     3/20/25   0.1       0.2       0.2  

CEPSA Holdco (Matador Bidco)

  (g)(k)(l)(x)   Energy   L+475     6/19/26   $ 2.0       2.0       2.0  

CHS/Community Health Systems, Inc.

  (g)(l)(x)   Health Care Equipment & Services   8.0%     3/15/26     2.6       2.6       2.6  

Commercial Barge Line Co

  (g)(x)   Transportation   L+875   1.0%   11/12/20     4.4       4.1       2.4  

CSafe Global

  (g)(h)   Capital Goods   L+650   1.0%   10/31/23     55.7       55.7       55.5  

CSafe Global

  (v)   Capital Goods   L+650   1.0%   10/31/23     11.7       11.7       11.7  

CSafe Global

  (g)   Capital Goods   L+650   1.0%   11/1/21     2.3       2.3       2.3  

CSafe Global

  (v)   Capital Goods   L+650   1.0%   11/1/21     3.5       3.5       3.5  

CSM Bakery Products

  (h)(x)   Food, Beverage & Tobacco   L+400   1.0%   7/3/20     1.1       1.1       1.0  

CTI Foods Holding Co LLC

  (g)   Food, Beverage & Tobacco   L+700   1.0%   5/3/24     3.0       3.0       2.9  

Diamond Resorts International Inc

  (h)(x)   Consumer Services   L+375   1.0%   9/2/23     6.8       6.5       6.6  

Distribution International Inc

  (g)(h)(x)   Retailing   L+575   1.0%   12/15/23     27.9       24.8       26.3  

Eagle Family Foods Inc

  (g)   Food, Beverage & Tobacco   L+650   1.0%   6/14/23     3.0       3.0       2.9  

 

See notes to unaudited consolidated financial statements.

 

5


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

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

Eagle Family Foods Inc

  (v)   Food, Beverage & Tobacco   L+650   1.0%   6/14/23   $ 4.1     $ 4.1     $ 4.0  

Eagle Family Foods Inc

  (g)(h)(i)   Food, Beverage & Tobacco   L+675   1.0%   6/14/24     47.0       46.6       45.2  

Electronics For Imaging Inc

  (g)(x)   Technology Hardware & Equipment   L+500     7/23/26     24.7       23.5       23.1  

Empire Today LLC

  (e)(g)(h)   Retailing   L+650   1.0%   11/17/22     79.7       79.7       79.8  

Entertainment Benefits Group LLC

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

Entertainment Benefits Group LLC

  (v)   Media & Entertainment   L+575   1.0%   9/30/24     4.1       4.1       4.1  

Entertainment Benefits Group LLC

  (g)   Media & Entertainment   L+575   1.0%   9/30/25     30.4       30.0       30.0  

Frontline Technologies Group LLC

  (g)(h)(i)   Software & Services   L+650   1.0%   9/18/23     78.7       78.0       78.2  

Frontline Technologies Group LLC

  (g)   Software & Services   L+650   1.0%   9/18/23     12.1       12.0       12.0  

Greystone & Co Inc

  (e)(g)(h)   Diversified Financials   L+800   1.0%   4/17/24     37.3       37.0       37.9  

Greystone Equity Member Corp

  (g)(l)   Diversified Financials   L+725   3.8%   4/1/26     55.9       55.9       55.4  

Greystone Equity Member Corp

  (l)(v)   Diversified Financials   L+725   3.8%   4/1/26     4.9       4.9       4.8  

HM Dunn Co Inc

  (g)(n)(w)(y)   Capital Goods   L+875 PIK (L+875 Max PIK)   1.0%   6/30/21     0.8       0.6       0.3  

HM Dunn Co Inc

  (g)(y)   Capital Goods   15.0% PIK (15.0% Max PIK)     6/30/21     —         —         —    

HM Dunn Co Inc

  (v)(y)   Capital Goods   15.0% PIK (15.0% Max PIK)     6/30/21     —         —         —    

Hudson Technologies Co

  (g)(l)   Commercial & Professional Services   L+1,025   1.0%   10/10/23     38.8       38.5       21.7  

Hunt Mortgage

  (e)(g)(h)   Diversified Financials   L+600   1.0%   2/14/23     79.2       78.6       79.0  

Icynene Group Ltd

  (e)(g)(h)   Materials   L+700   1.0%   11/30/24     29.5       29.4       29.6  

ID Verde

  (l)(v)   Commercial & Professional Services   E+210     3/29/24   4.8       5.5       5.3  

Imagine Communications Corp

  (g)(h)   Media & Entertainment   L+750   1.0%   4/29/20   $ 14.0       14.0       14.0  

Imagine Communications Corp

  (g)(l)   Media & Entertainment   L+750   1.0%   4/29/20     2.1       2.1       2.1  

Industria Chimica Emiliana Srl

  (g)(l)   Pharmaceuticals, Biotechnology & Life Sciences   L+650     6/30/26   81.8       87.2       86.6  

Industria Chimica Emiliana Srl

  (l)(v)   Pharmaceuticals, Biotechnology & Life Sciences   L+650     6/30/26     11.6       12.7       12.3  

Industry City TI Lessor LP

  (g)   Consumer Services   10.8%, 1.0% PIK (1.0% Max PIK)     6/30/26   $ 27.2       27.2       29.9  

Integro Ltd/United States

  (e)(h)(i)   Insurance   L+575   1.0%   10/31/22     25.4       25.3       25.4  

J S Held LLC

  (g)   Insurance   L+600   1.0%   7/1/25     0.4       0.4       0.4  

J S Held LLC

  (v)   Insurance   L+600   1.0%   7/1/25     5.8       5.7       5.7  

J S Held LLC

  (e)(g)   Insurance   L+600   1.0%   7/1/25     54.4       53.9       53.8  

J S Held LLC

  (v)   Insurance   L+600   1.0%   7/1/25     13.3       13.3       13.2  

JHT Holdings Inc

  (e)(g)(h)(i)   Capital Goods   L+850   1.0%   5/4/22     18.9       18.7       19.5  

Jo-Ann Stores Inc

  (h)(x)   Retailing   L+500   1.0%   10/20/23     8.8       8.7       6.1  

JSS Holdings Ltd

  (e)(g)(h)   Capital Goods   L+800, 0.0% PIK (2.5% Max PIK)   1.0%   3/31/23     110.9       110.2       114.3  

Kodiak BP LLC

  (g)(h)   Capital Goods   L+725   1.0%   12/1/24     57.2       57.0       56.6  

Kodiak BP LLC

  (v)   Capital Goods   L+725   1.0%   12/1/24     28.4       28.3       28.1  

Lipari Foods LLC

  (e)(g)(i)   Food & Staples Retailing   L+588   1.0%   1/6/25     105.2       104.4       105.1  

Lipari Foods LLC

  (v)   Food & Staples Retailing   L+588   1.0%   1/6/25     21.8       21.8       21.8  

Matchesfashion Ltd

  (e)(h)(l)   Consumer Durables & Apparel   L+463     10/16/24     12.7       11.9       11.6  

MB Precision Holdings LLC

  (g)(y)   Capital Goods   L+725, 2.3% PIK (2.3% Max PIK)   1.3%   1/23/21     4.6       4.5       4.6  

Micronics Filtration Holdings Inc

  (e)(g)   Capital Goods   L+800, 0.5% PIK (0.5% Max PIK)   1.3%   12/11/20     61.7       61.6       48.4  

Multi-Color Corp

  (g)(l)(x)   Commercial & Professional Services   6.8%     7/15/26     4.3       4.3       4.4  

Murray Energy Corp

  (g)   Energy   L+900   1.0%   2/12/21     18.9       18.8       18.9  

NBG Home

  (g)(h)(i)(x)   Consumer Durables & Apparel   L+550   1.0%   4/26/24     59.0       58.7       53.0  

NCI Inc

  (g)(h)(i)   Software & Services   L+750   1.0%   8/15/24     81.9       81.1       79.8  

North Haven Cadence Buyer Inc

  (v)   Consumer Services   L+500   1.0%   9/2/21     0.9       0.9       0.9  

North Haven Cadence Buyer Inc

  (g)   Consumer Services   L+650   1.0%   9/2/22     8.9       8.9       8.8  

 

See notes to unaudited consolidated financial statements.

 

6


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

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

North Haven Cadence Buyer Inc

  (v)   Consumer Services   L+650   1.0%   9/2/22   $ 6.4     $ 6.4     $ 6.3  

North Haven Cadence Buyer Inc

  (e)(g)(h)   Consumer Services   L+794   1.0%   9/2/22     18.3       18.3       18.2  

One Call Care Management Inc

  (g)(x)   Insurance   L+400   1.0%   11/27/20     0.6       0.5       0.5  

One Call Care Management Inc

  (g)(x)   Insurance   L+525   1.0%   11/27/22     13.9       11.9       11.0  

Onvoy LLC

  (g)(x)   Telecommunication Services   L+450   1.0%   2/10/24     1.1       1.1       0.9  

PAE Holding Corp

  (g)(x)   Capital Goods   L+550   1.0%   10/20/22     0.8       0.8       0.8  

Peak 10 Holding Corp

  (g)(x)   Telecommunication Services   L+350     8/1/24     4.6       4.3       4.0  

Petroplex Acidizing Inc

  (g)   Energy   L+725, 1.8% PIK (1.8% Max PIK)   1.0%   12/5/19     22.8       22.8       22.6  

Petroplex Acidizing Inc

  (g)(n)(w)   Energy   15.0% PIK (15.0% Max PIK)     12/5/19     26.8       13.8       6.2  

PHRC License LLC

  (f)(g)(h)   Consumer Services   L+850, 0.3% PIK (4.3% Max PIK)   1.5%   4/28/22     49.8       49.8       50.1  

Power Distribution Inc

  (g)(h)   Capital Goods   L+725   1.3%   1/25/23     28.0       28.0       25.1  

Project Marron

  (g)(l)   Consumer Services   L+625     7/3/25   A$ 1.5       1.0       1.0  

PSKW LLC

  (e)(g)(h)   Health Care Equipment & Services   L+769   1.0%   11/25/21   $ 43.2       43.2       43.2  

PSKW LLC

  (e)   Health Care Equipment & Services   L+769   1.0%   11/25/21     6.2       6.2       6.2  

Qdoba Restaurant Corp

  (g)(h)(x)   Consumer Services   L+700   1.0%   3/21/25     12.8       12.6       13.0  

Reliant Rehab Hospital Cincinnati LLC

  (e)(g)(h)(i)   Health Care Equipment & Services   L+675   1.0%   9/2/24     103.4       102.5       101.6  

Revere Superior Holdings, Inc

  (e)(g)(h)(i)   Software & Services   L+675   1.0%   11/21/22     92.5       91.8       93.5  

Revere Superior Holdings, Inc

  (v)   Software & Services   L+675   1.0%   11/21/22     5.0       5.0       5.1  

Roadrunner Intermediate Acquisition Co LLC

  (e)(g)(h)   Health Care Equipment & Services   L+675   1.0%   3/15/23     31.8       31.8       30.9  

Safariland LLC

  (g)(y)   Capital Goods   L+725   1.1%   11/18/23     11.5       11.5       11.0  

Safariland LLC

  (g)(h)(y)   Capital Goods   L+775   1.1%   11/18/23     114.6       114.6       110.1  

Savers Inc

  (g)(h)   Retailing   L+650, 0.8% PIK (0.8% Max PIK)   1.5%   3/28/24     43.7       43.2       43.3  

Savers Inc

  (g)   Retailing   L+700, 0.8% PIK (0.8% Max PIK)   1.0%   3/28/24   C$ 60.7       44.7       46.2  

Sequa Corp

  (g)(h)(x)   Materials   L+500   1.0%   11/28/21   $ 22.4       22.4       22.2  

Sequel Youth & Family Services LLC

  (g)   Health Care Equipment & Services   L+700   1.0%   9/1/23     13.9       13.9       14.0  

Sequel Youth & Family Services LLC

  (e)(g)(h)   Health Care Equipment & Services   L+800     9/1/23     80.0       80.0       80.8  

Sequential Brands Group Inc.

  (g)(h)   Consumer Durables & Apparel   L+875     2/7/24     59.4       58.5       58.9  

Smart Foodservice

  (g)(l)(x)   Food & Staples Retailing   L+475     6/20/26     2.7       2.7       2.7  

SMART Global Holdings Inc

  (g)(h)(l)   Semiconductors & Semiconductor Equipment   L+625   1.0%   8/9/22     19.7       19.7       19.8  

Sorenson Communications LLC

  (g)(h)(x)   Telecommunication Services   L+650     4/29/24     14.9       14.4       14.9  

Staples Canada

  (g)(l)   Retailing   L+700   1.0%   9/12/24   C$ 10.0       7.7       7.6  

Sungard Availability Services Capital Inc

  (g)   Software & Services   L+750   1.0%   2/3/22   $ 0.5       0.5       0.5  

Sungard Availability Services Capital Inc

  (v)   Software & Services   L+750   1.0%   2/3/22     0.5       0.5       0.5  

Sutherland Global Services Inc

  (h)(l)(x)   Software & Services   L+538   1.0%   4/23/21     4.6       4.5       4.5  

Sweet Harvest Foods Management Co

  (g)(i)   Food & Staples Retailing   L+775, 1.0% PIK (1.0% Max PIK)   1.0%   5/30/23     26.6       26.5       23.3  

Tangoe LLC

  (e)(g)(h)   Software & Services   L+650   1.0%   11/28/25     89.0       88.2       89.1  

Team Health Inc

  (g)(h)(x)   Health Care Equipment & Services   L+275   1.0%   2/6/24     12.5       12.2       10.4  

ThermaSys Corp

  (g)(y)   Capital Goods   L+600   1.0%   12/28/23     6.7       7.2       6.5  

ThreeSixty Group

  (e)(g)(h)(i)   Retailing   L+700   1.0%   3/1/23     100.4       99.4       86.4  

Torrid Inc

  (g)   Retailing   L+675   1.0%   12/14/24     32.0       31.6       31.6  

Total Safety US Inc

  (g)(x)   Capital Goods   L+600   1.0%   8/16/25     4.1       3.7       3.9  

Trace3 Inc

  (e)(g)(h)   Software & Services   L+675   1.0%   8/3/24     93.1       93.1       91.4  

Utility One Source LP

  (h)(x)   Capital Goods   L+550   1.0%   4/18/23     —         —         —    

Versatile Processing Group Inc

  (e)(g)   Materials   L+1,050   1.0%   12/30/20     41.0       41.0       41.1  

Vertiv Group Corp

  (g)(h)(x)   Technology Hardware & Equipment   L+400   1.0%   11/30/23     11.7       11.2       11.1  

 

See notes to unaudited consolidated financial statements.

 

7


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

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

Virgin Pulse Inc

  (e)(g)(h)(i)   Software & Services   L+650   1.0%   5/22/25   $ 137.2     $ 136.3     $ 136.3  

Vivint Inc

  (g)(h)(x)   Commercial & Professional Services   L+500     4/1/24     23.6       23.4       23.2  

Warren Resources Inc

  (h)   Energy   L+1,000, 1.0% PIK (1.0% Max PIK)   1.0%   5/22/20     0.7       0.7       0.7  

Wheels Up Partners LLC

  (g)   Transportation   L+855   1.0%   1/26/21     11.2       11.2       11.2  

Wheels Up Partners LLC

  (g)   Transportation   L+855   1.0%   8/26/21     6.0       6.0       6.0  

Wheels Up Partners LLC

  (g)   Transportation   L+710   1.0%   6/30/24     20.1       20.1       20.2  

Wheels Up Partners LLC

  (g)   Transportation   L+710   1.0%   11/1/24     8.3       8.3       8.3  

Wheels Up Partners LLC

  (g)   Transportation   L+710   1.0%   12/21/24     13.6       13.5       13.6  

Wheels Up Partners LLC

  (g)   Transportation   L+710   1.0%   12/21/24     4.3       4.2       4.3  

Wheels Up Partners LLC

  (g)   Transportation   L+710   1.0%   12/21/24     13.2       13.2       13.3  

Zeta Interactive Holdings Corp

  (e)(g)(h)   Software & Services   L+750   1.0%   7/29/22     14.6       14.6       14.8  

Zeta Interactive Holdings Corp

  (v)   Software & Services   L+750   1.0%   7/29/22     1.7       1.7       1.7  
             

 

 

   

 

 

 

Total Senior Secured Loans—First Lien

                4,000.4       3,880.4  

Unfunded Loan Commitments

                (217.3     (217.3
             

 

 

   

 

 

 

Net Senior Secured Loans—First Lien

                3,783.1       3,663.1  
             

 

 

   

 

 

 

Senior Secured Loans—Second Lien—30.5%

               

Abaco Systems, Inc

  (e)(g)   Capital Goods   L+1,050   1.0%   6/7/22     63.4       62.7       63.4  

Access CIG LLC

  (g)(x)   Software & Services   L+775     2/27/26     0.6       0.6       0.6  

Advantage Sales & Marketing Inc

  (g)(x)   Commercial & Professional Services   L+650   1.0%   7/25/22     3.9       3.5       3.4  

Agro Merchants Global LP

  (g)   Transportation   L+800   1.0%   11/30/25     13.4       13.1       13.3  

Albany Molecular Research Inc

  (g)(x)   Pharmaceuticals, Biotechnology & Life Sciences   L+700   1.0%   8/30/25     8.3       8.3       8.2  

Amtek Global Technology Pte Ltd

  (j)(l)(z)   Automobiles & Components   E+500     4/4/24   32.8       40.3       35.8  

Arena Energy LP

  (g)   Energy   L+900, 4.0% PIK (4.0% Max PIK)   1.0%   1/24/21   $ 8.9       8.9       8.8  

athenahealth Inc

  (g)   Health Care Equipment & Services   L+850     2/11/27     112.9       111.8       113.9  

BCA Marketplace PLC

  (g)(k)(l)   Retailing   L+825     9/4/27   £ 48.0       58.4       58.4  

Belk Inc

  (g)   Retailing   10.5%     6/12/23   $ 19.5       15.3       15.4  

Belk Inc

  (g)   Retailing   10.5%     6/12/25     99.6       98.4       72.2  

Bellatrix Exploration Ltd

  (g)(l)   Energy   8.5%     9/11/23     1.9       1.9       1.9  

Bellatrix Exploration Ltd

  (g)(l)(n)(w)   Energy   8.5%     9/11/23     4.5       4.1       1.5  

Byrider Finance LLC

  (f)(g)   Automobiles & Components   L+1,000, 0.5% PIK (4.0% Max PIK)   1.3%   6/7/22     17.9       17.9       17.8  

Chisholm Oil & Gas Operating LLC

  (g)   Energy   L+800   1.0%   3/21/24     16.1       16.1       16.2  

CommerceHub Inc

  (g)(h)   Software & Services   L+775     5/21/26     69.3       67.4       68.1  

Culligan International Co

  (g)(h)   Household & Personal Products   L+850   1.0%   12/13/24     85.0       84.3       84.7  

EaglePicher Technologies LLC

  (g)(x)   Capital Goods   L+725     3/8/26     3.0       3.0       2.9  

Electronics For Imaging Inc

  (g)(x)   Technology Hardware & Equipment   L+900     7/23/27     6.2       5.9       5.7  

Emerald Performance Materials LLC

  (g)(x)   Materials   L+775   1.0%   8/1/22     2.3       2.3       2.2  

Excelitas Technologies Corp

  (g)(x)   Technology Hardware & Equipment   L+750   1.0%   12/1/25     8.4       8.6       8.5  

Gruden Acquisition Inc

  (g)(x)   Transportation   L+850   1.0%   8/18/23     10.0       9.7       9.9  

Integro Ltd/United States

  (g)   Insurance   L+925   1.0%   10/30/23     4.8       4.7       4.8  

Invictus

  (g)(x)   Materials   L+675     3/30/26     1.1       1.1       1.0  

LBM Borrower LLC

  (g)(x)   Capital Goods   L+925   1.0%   8/20/23     21.3       21.2       20.9  

MedAssets Inc

  (e)(g)   Health Care Equipment & Services   L+975   1.0%   4/20/23     63.0       61.9       62.5  

 

See notes to unaudited consolidated financial statements.

 

8


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

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

Misys Ltd

  (g)(k)(l)(x)   Software & Services   L+725     1.0%     6/13/25   $ 6.2     $ 6.2     $ 6.0  

NBG Home

  (g)   Consumer Durables & Apparel   L+975     1.0%     9/30/24     34.2       33.8       31.4  

NEP Broadcasting LLC

  (g)(x)   Media & Entertainment   L+700     10/19/26     0.3       0.3       0.3  

OEConnection LLC

  (g)   Software & Services   L+825     9/25/27     34.1       33.7       33.7  

One Call Care Management Inc

  (e)(g)   Insurance   L+375, 6.0% PIK (6.0% Max PIK)     1.0%     4/11/24     31.2       31.0       25.5  

P2 Energy Solutions, Inc.

  (g)(x)   Software & Services   L+800     1.0%     4/30/21     71.3       70.7       69.4  

Paradigm Acquisition Corp

  (g)(x)   Health Care Equipment & Services   L+750     10/26/26     2.4       2.4       2.4  

Peak 10 Holding Corp

  (g)(x)   Telecommunication Services   L+725     1.0%     8/1/25     0.2       0.2       0.1  

Petrochoice Holdings Inc

  (e)(g)   Capital Goods   L+875     1.0%     8/21/23     65.0       63.8       64.1  

Polyconcept North America Inc

  (g)   Consumer Durables & Apparel   L+1,000     1.0%     2/16/24     29.4       28.9       29.7  

Pure Fishing Inc

  (g)   Consumer Durables & Apparel   L+838     1.0%     12/31/26     81.1       80.3       70.7  

Rise Baking Company

  (g)(h)   Food, Beverage & Tobacco   L+800     1.0%     8/9/26     31.1       30.9       30.6  

Sequa Corp

  (g)(h)(x)   Materials   L+900     1.0%     4/28/22     22.0       21.9       21.7  

SIRVA Worldwide Inc

  (g)(x)   Commercial & Professional Services   L+950     8/3/26     3.8       3.5       3.3  

SMG/PA

  (g)(x)   Consumer Services   L+700     1/23/26     1.3       1.3       1.3  

Sorenson Communications LLC

  (f)   Telecommunication Services   11.5% PIK (11.5% Max PIK)     4/30/25     15.1       14.7       15.1  

Sparta Systems Inc

  (g)   Software & Services   L+825     1.0%     7/27/25     35.1       34.6       31.4  

Vestcom International Inc

  (g)(h)   Consumer Services   L+825     1.0%     12/19/24     70.5       70.0       70.3  

WireCo WorldGroup Inc

  (g)(h)(x)   Capital Goods   L+900     1.0%     9/30/24     13.7       13.7       13.6  

Z Gallerie LLC

  (g)(y)   Retailing   12.0%     6/20/21     2.9       2.9       2.8  
             

 

 

   

 

 

 

Total Senior Secured Loans—Second Lien

                1,276.2       1,225.4  
             

 

 

   

 

 

 

Other Senior Secured Debt—6.8%

               

Advanced Lighting Technologies Inc

  (g)(n)(w)(z)   Materials   L+1,700 PIK (L+1,700 Max PIK)     1.0%     10/4/23     30.5       23.6       —    

Angelica Corp

  (t)   Health Care Equipment & Services   10.0% PIK (10.0% Max PIK)     12/30/22     41.7       41.2       30.1  

Artesyn Embedded Technologies Inc

  (g)(x)   Technology Hardware & Equipment   9.8%     10/15/20     21.0       20.8       21.1  

Black Swan Energy Ltd

  (e)(l)   Energy   9.0%     1/20/24     6.0       6.0       6.0  

Cleaver-Brooks Inc

  (g)(x)   Capital Goods   7.9%     3/1/23     9.4       9.5       8.9  

Enterprise Development Authority

  (g)(x)   Consumer Services   12.0%     7/15/24     3.6       3.7       3.9  

FourPoint Energy LLC

  (e)(f)(g)   Energy   9.0%     12/31/21     74.8       73.6       73.7  

Frontier Communications Corp

  (g)(l)(x)   Telecommunication Services   8.5%     4/1/26     6.3       6.1       6.3  

JW Aluminum Co

  (e)(g)(x)(y)   Materials   10.3%     6/1/26     36.5       36.5       38.6  

Lycra

  (g)(l)(x)   Consumer Durables & Apparel   7.5%     5/1/25     5.4       5.4       4.9  

Mood Media Corp

  (f)(g)(y)   Media & Entertainment   L+1,400 PIK (L+1,400 Max PIK)     12/31/23     37.9       36.8       37.2  

MultiPlan Inc

  (g)(x)   Health Care Equipment & Services   7.1%     6/1/24     1.7       1.8       1.6  

PAREXEL International Corp

  (g)(x)   Pharmaceuticals, Biotechnology & Life Sciences   6.4%     9/1/25     0.1       0.1       0.1  

Pattonair Holdings Ltd

  (g)(l)(x)   Capital Goods   9.0%     11/1/22     8.3       8.4       8.7  

Ply Gem Holdings Inc

  (g)(x)   Capital Goods   8.0%     4/15/26     7.7       7.6       7.6  

Rockport (Relay)

  (g)(n)(w)   Consumer Durables & Apparel   15.0% PIK (15.0% Max PIK)     7/31/22     25.8       22.0       0.1  

Sungard Availability Services Capital Inc

  (g)   Software & Services   L+400, 2.5% PIK (2.5% Max PIK)     1.0%     11/3/22     2.0       2.0       2.0  

Velvet Energy Ltd

  (g)(l)   Energy   9.0%     10/5/23     7.5       7.5       7.7  

Vivint Inc

  (g)(x)   Commercial & Professional Services   7.9%     12/1/22     4.2       4.0       4.2  

Vivint Inc

  (g)(x)   Commercial & Professional Services   7.6%     9/1/23     12.6       12.9       11.3  
             

 

 

   

 

 

 

Total Other Senior Secured Debt

                329.5       274.0  
             

 

 

   

 

 

 

 

See notes to unaudited consolidated financial statements.

 

9


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes    

Industry

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

Subordinated Debt—9.7%

               

Alion Science & Technology Corp

    (e)(g)     Capital Goods     11.0%         8/1/22     $ 68.6     $ 68.1     $ 68.5  

Alion Science & Technology Corp

    (g)     Capital Goods     11.0%         8/31/22       22.2       21.9       22.1  

All Systems Holding LLC

    (g)     Commercial & Professional Services     10.0% PIK (10.0% Max PIK)         10/31/22       0.1       0.1       0.1  

athenahealth Inc

    (g)     Health Care Equipment & Services     L+1,125 PIK (L+1,125 Max PIK)         2/11/27       56.5       56.4       56.8  

Byrider Finance LLC

    (g)     Automobiles & Components     20.0% PIK (20.0% Max PIK)         3/31/22       1.1       1.1       1.1  

ClubCorp Club Operations Inc

    (g)(x)     Consumer Services     8.5%         9/15/25       23.4       23.1       19.7  

Craftworks Rest & Breweries Group Inc

    (g)     Consumer Services         11/1/24       7.3       7.2       6.5  

DEI Sales Inc

    (e)(g)     Consumer Durables & Apparel     13.0% PIK (13.0% Max PIK)         2/28/23       74.1       73.6       67.3  

Diamond Resorts International Inc

    (g)(x)     Consumer Services     10.8%         9/1/24       1.2       1.1       1.2  

GFL Environmental Inc

    (g)(l)(x)     Commercial & Professional Services     8.5%         5/1/27       6.1       6.2       6.8  

Hilding Anders

    (g)(l)(n)(w)(z)     Consumer Durables & Apparel     13.0% PIK (13.0% Max PIK)         6/30/21     120.7       129.3       72.8  

Hilding Anders

    (g)(l)(n)(w)(z)     Consumer Durables & Apparel     12.0% PIK (12.0% Max PIK)         12/31/22       3.4       0.5       0.3  

Hilding Anders

    (g)(l)(n)(w)(z)     Consumer Durables & Apparel     12.0% PIK (12.0% Max PIK)         12/31/23       28.0       0.9       —    

Hilding Anders

    (g)(l)(n)(w)(z)     Consumer Durables & Apparel     18.0% PIK (18.0% Max PIK)         12/31/24       48.6       12.9       4.3  

Hub International Ltd

    (g)(x)     Insurance     7.0%         5/1/26     $ 3.7       3.7       3.8  

Imagine Communications Corp

    (g)     Media & Entertainment     12.5% PIK (12.5% Max PIK)         10/29/20       0.8       0.8       0.8  

Kenan Advantage Group Inc

    (g)(x)     Transportation     7.9%         7/31/23       5.1       5.1       4.6  

LifePoint Hospitals Inc

    (g)(x)     Health Care Equipment & Services     9.8%         12/1/26       8.4       8.4       9.0  

Nouryon (fka Akzo Nobel Specialty Chemicals)

    (g)(l)(x)     Materials     8.0%         10/1/26       1.5       1.5       1.5  

Plastipak Holdings Inc

    (g)(x)     Materials     6.3%         10/15/25       1.0       1.0       0.9  

Quorum Health Corp

    (g)(x)     Health Care Equipment & Services     11.6%         4/15/23       4.0       4.0       3.6  

SRS Distribution Inc

    (g)(x)     Capital Goods     8.3%         7/1/26       7.0       6.9       7.2  

Team Health Inc

    (g)(x)     Health Care Equipment & Services     6.4%         2/1/25       2.8       2.6       2.0  

Versatile Processing Group Inc

    (g)     Materials     13.0% PIK (13.0% Max PIK)         12/30/20       2.8       2.8       2.5  

Vertiv Group Corp

    (g)(x)     Technology Hardware & Equipment     9.3%         10/15/24       22.8       22.9       22.0  

Vivint Inc

    (g)(x)     Commercial & Professional Services     8.8%         12/1/20       4.9       4.9       4.9  

Z Gallerie LLC

    (g)(y)     Retailing     L+650       1.0%       6/20/22       1.8       1.5       1.4  
             

 

 

   

 

 

 

Total Subordinated Debt

                468.5       391.7  
             

 

 

   

 

 

 

 

Portfolio Company(a)

  Footnotes    

Industry

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

Asset Based Finance—17.5%

               

Abacus JV, Private Equity

    (g)(l)     Insurance           20,312,960     $ 20.3     $ 20.3  

Accelerator Investments Aggregator LP, Private Equity

    (g)(l)(n)     Diversified Financials           3,303,010       3.8       3.6  

Altavair NewCo, Private Equity

    (g)(l)     Capital Goods           9,162,480       9.2       10.2  

Altus Power America Inc, Preferred Stock

    (r)     Energy   9.0%, 5.0% PIK (5.0% Max PIK)       10/3/23       1,107,723       1.1       1.1  

AMPLIT JV LP, Limited Partnership Interest

    (g)(l)(n)     Diversified Financials           N/A       4.8       0.8  

Australis Maritime, Common Stock

    (g)(l)(n)     Transportation           9,430,576       9.4       9.4  

Bank of Ireland, Class B Credit Linked Floating Rate Note

    (j)(l)     Banks   L+1,185       12/4/27     $ 15.1       15.1       15.4  

Global Jet Capital LLC, Structured Mezzanine

    (g)     Commercial & Professional Services   15.0% PIK (15.0% Max PIK)       1/30/25     $ 1.1       1.0       1.1  

Global Jet Capital LLC, Structured Mezzanine

    (g)     Commercial & Professional Services   15.0% PIK (15.0% Max PIK)       4/30/25     $ 7.0       6.6       6.9  

Global Jet Capital LLC, Structured Mezzanine

    (g)     Commercial & Professional Services   15.0% PIK (15.0% Max PIK)       9/3/25     $ 1.4       1.4       1.4  

 

See notes to unaudited consolidated financial statements.

 

10


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(in millions, except share amounts)

 

 

 

Portfolio Company(a)

  Footnotes    

Industry

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

Global Jet Capital LLC, Structured Mezzanine

    (g)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         9/29/25     $ 1.4     $ 1.3     $ 1.3  

Global Jet Capital LLC, Structured Mezzanine

    (f)(g)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         12/4/25     $ 82.3       77.7       81.1  

Global Jet Capital LLC, Structured Mezzanine

    (f)(g)(l)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         12/4/25     $ 18.3       17.3       18.0  

Global Jet Capital LLC, Structured Mezzanine

    (f)(g)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         12/9/25     $ 1.9       1.8       1.9  

Global Jet Capital LLC, Structured Mezzanine

    (f)(g)(l)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         12/9/25     $ 14.6       13.8       14.3  

Global Jet Capital LLC, Structured Mezzanine

    (f)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         1/29/26     $ 7.0       6.7       6.9  

Global Jet Capital LLC, Structured Mezzanine

    (f)(l)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         1/29/26     $ 1.6       1.5       1.5  

Global Jet Capital LLC, Structured Mezzanine

    (g)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         4/14/26     $ 17.6       16.6       17.4  

Global Jet Capital LLC, Structured Mezzanine

    (g)     Commercial & Professional Services     15.0% PIK (15.0% Max PIK)         12/2/26     $ 17.3       16.3       17.0  

Global Jet Capital LLC, Preferred Stock

    (f)(g)(n)     Commercial & Professional Services           52,722,941       52.7       4.0  

Home Partners JV, Structured Mezzanine

    (g)(l)(y)     Real Estate     11.0% PIK (11.0% Max PIK)         3/25/29     $ 21.7       21.7       21.7  

Home Partners JV, Structured Mezzanine

    (l)(v)(y)     Real Estate     11.0% PIK (11.0% Max PIK)         3/25/29     $ 21.7       21.7       21.7  

Home Partners JV, Common Stock

    (g)(l)(n)(y)     Real Estate           10,859,445       10.9       11.2  

Home Partners JV, Private Equity

    (g)(l)(n)(x)(y)     Real Estate           585,960       0.6       —    

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

    (g)(l)     Capital Goods     29.9%         5/31/23       N/A       42.9       56.6  

KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest

    (g)(l)     Capital Goods           18,328,729       18.3       22.8  

Lenovo Group Ltd, Structured Mezzanine

    (g)(l)     Technology Hardware & Equipment     8.0%         6/22/22     7.4       8.4       8.0  

Lenovo Group Ltd, Structured Mezzanine

    (g)(l)     Technology Hardware & Equipment     8.0%         6/22/22     $ 15.5       15.5       15.5  

Lenovo Group Ltd, Structured Mezzanine

    (g)(l)     Technology Hardware & Equipment     12.0%         6/22/22     4.7       5.3       5.1  

Lenovo Group Ltd, Structured Mezzanine

    (g)(l)     Technology Hardware & Equipment     12.0%         6/22/22     $ 9.8       9.8       9.8  

Orchard Marine Limited, Class B Common Stock

    (g)(l)(n)(y)     Transportation           1,964       3.1       —    

Orchard Marine Limited, Series A Preferred Stock

    (g)(l)(n)(y)     Transportation           58,920       58.0       22.5  

Pretium Partners LLC P2, Structured Mezzanine

    (g)(l)     Real Estate     9.5%         5/29/25     $ 23.5       23.5       23.8  

Rampart CLO 2007 1A Class Subord.

    (g)(l)     Diversified Financials         10/25/21     $ 10.0       0.1       0.5  

Sofi Lending Corp, 2019-C R1

    (g)(l)     Diversified Financials         11/16/48     $ 21.2       12.0       12.0  

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

    (l)(p)     Diversified Financials           5,000,000       5.0       8.2  

Toorak Capital Funding LLC, Membership Interest

    (g)(l)(z)     Diversified Financials           288,831       0.3       0.3  

Toorak Capital LLC, Membership Interest

    (g)(z)     Diversified Financials           N/A       184.5       237.6  

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

    (g)(l)     Diversified Financials         1/15/26     $ 42.5       18.6       13.9  
             

 

 

   

 

 

 

Total Asset Based Finance

                738.6       724.8  

Unfunded commitments

                (21.7     (21.7
             

 

 

   

 

 

 

Net Asset Based Finance

                716.9       703.1  
             

 

 

   

 

 

 

 

Portfolio Company(a)

  Footnotes  

Industry

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

Strategic Credit Opportunities, LLC—10.6%

               

Strategic Credit Opportunities Partners, LLC

  (g)(l)(z)   Diversified Financials         $ 425.3     $ 425.3     $ 425.7  
             

 

 

   

 

 

 

Total Strategic Credit Opportunities Partners

                425.3       425.7  
             

 

 

   

 

 

 

 

See notes to unaudited consolidated financial statements.

 

11


Table of Contents

FS KKR Capital Corp.

Unaudited Consolidated Schedule of Investments (continued)

As of September 30, 2019

(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—13.3%(m)

               

Advanced Lighting Technologies Inc, Common Stock

  (g)(n)(z)   Materials           587,637     $ 16.5     $ —    

Advanced Lighting Technologies Inc, Warrant

  (g)(n)(z)   Materials         10/4/27       9,262       0.1       —    

Alion Science & Technology Corp, Class A Membership Interest

  (g)(n)   Capital Goods           N/A       7.4       11.2  

All Systems Holding LLC, Common Stock

  (g)(n)   Commercial & Professional Services           586,763       0.6       0.7  

AltEn, LLC, Membership Units

  (n)(s)(y)   Energy           2,384       3.0       —    

Amtek Global Technology Pte Ltd, Ordinary Shares

  (j)(l)(n)(z)   Automobiles & Components           5,735,799,959       30.7       15.3  

Amtek Global Technology Pte Ltd, Trade Claim

  (j)(l)(n)(z)   Automobiles & Components           3,590,032       3.0       2.0  

Angelica Corp, Limited Partnership Interest

  (n)(t)   Health Care Equipment & Services           877,044       47.6       —    

Ap Plasman Inc, Warrant

  (g)(l)(n)   Capital Goods         5/25/26       6,985       2.5       1.1  

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

  (n)(o)   Energy           10,193       9.7       2.3  

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

  (o)   Energy           86,607,143       19.4       19.8  

ASG Technologies, Common Stock

  (g)(n)(y)   Software & Services           1,149,421       23.4       63.8  

ASG Technologies, Warrant

  (g)(n)(y)   Software & Services         6/27/22       229,541       6.5       7.8  

Aspect Software Inc, Common Stock

  (g)(n)   Software & Services           161,261       0.3       0.2  

Aspect Software Inc, Warrant

  (g)(n)   Software & Services         1/15/24       161,008       —         —    

Belk Inc, Units

  (g)(n)   Retailing           1,642       7.8       2.8  

Bellatrix Exploration Ltd, Warrant

  (g)(l)(n)   Energy         9/11/23       127,489       —         —    

Byrider Finance LLC, Common Stock

  (g)(n)   Automobiles & Components           833       —         —    

Cengage Learning, Inc, Common Stock

  (g)(n)   Media & Entertainment           227,802       7.5       4.0  

Charlotte Russe Inc, Common Stock

  (g)(n)(y)   Retailing           22,575       12.5       —    

Chisholm Oil & Gas Operating LLC, Series A Units

  (n)(p)   Energy           75,000       0.1       0.1  

CSafe Global, Common Stock

  (g)(n)   Capital Goods           391,300       0.4       0.7  

CTI Foods Holding Co LLC, Common Stock

  (g)(n)   Food, Beverage & Tobacco