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 JUNE 30, 2020 |
| ☐ | 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 123,755,965 shares of the registrant’s common stock outstanding as of August 7, 2020.
Table of Contents
| Page | ||||
| PART I—FINANCIAL INFORMATION |
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| ITEM 1. | 1 | |||
| Consolidated Balance Sheets as of June 30, 2020 (Unaudited) and December 31, 2019 |
1 | |||
| 2 | ||||
| 3 | ||||
| Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 |
4 | |||
| Consolidated Schedules of Investments as of June 30, 2020 (Unaudited) and December 31, 2019 |
5 | |||
| 34 | ||||
| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
73 | ||
| ITEM 3. | 87 | |||
| ITEM 4. | 89 | |||
| PART II—OTHER INFORMATION |
||||
| ITEM 1. | 90 | |||
| ITEM 1A. | 90 | |||
| ITEM 2. | 90 | |||
| ITEM 3. | 91 | |||
| ITEM 4. | 91 | |||
| ITEM 5. | 91 | |||
| ITEM 6. | 92 | |||
| 94 | ||||
Table of Contents
PART I—FINANCIAL INFORMATION
FS KKR Capital Corp.
(in millions, except share and per share amounts)
| June 30, 2020 (Unaudited) |
December 31, 2019 | |||||||
| Assets |
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| Investments, at fair value |
||||||||
| Non-controlled/unaffiliated investments (amortized cost—$5,785 and $6,006, respectively) |
$ | 5,065 | $ | 5,661 | ||||
| Non-controlled/affiliated investments (amortized cost—$618 and $686, respectively) |
484 | 717 | ||||||
| Controlled/affiliated investments (amortized cost—$1,425 and $1,117, respectively) |
1,075 | 979 | ||||||
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| Total investments, at fair value (amortized cost—$7,828 and $7,809, respectively) |
6,624 | 7,357 | ||||||
| Cash |
87 | 93 | ||||||
| Foreign currency, at fair value (cost—$8 and $13, respectively) |
8 | 13 | ||||||
| Receivable for investments sold and repaid |
137 | 657 | ||||||
| Income receivable |
78 | 82 | ||||||
| Unrealized appreciation on foreign currency forward contracts |
3 | 1 | ||||||
| Deferred financing costs |
13 | 10 | ||||||
| Prepaid expenses and other assets |
6 | 3 | ||||||
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| Total assets |
$ | 6,956 | $ | 8,216 | ||||
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| Liabilities |
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| Payable for investments purchased |
$ | 21 | $ | 15 | ||||
| Debt (net of deferred financing costs of $14 and $9, respectively)(1) |
3,903 | 4,173 | ||||||
| Unrealized depreciation on foreign currency forward contracts |
— | 0 | ||||||
| Stockholder distributions payable |
75 | 96 | ||||||
| Management fees payable |
26 | 30 | ||||||
| Subordinated income incentive fees payable(2) |
— | — | ||||||
| Administrative services expense payable |
3 | 3 | ||||||
| Interest payable |
34 | 23 | ||||||
| Other accrued expenses and liabilities |
3 | 10 | ||||||
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| Total liabilities |
4,065 | 4,350 | ||||||
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| Commitments and contingencies(3) |
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| 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, 123,755,965 and 126,581,766 shares issued and outstanding, respectively(4) |
— | 1 | ||||||
| Capital in excess of par value |
3,995 | 4,041 | ||||||
| Retained earnings (accumulated deficit)(5) |
(1,104 | ) | (176 | ) | ||||
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| Total stockholders’ equity |
2,891 | 3,866 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 6,956 | $ | 8,216 | ||||
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| Net asset value per share of common stock at period end(4) |
$ | 23.37 | $ | 30.54 | ||||
| (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) | As discussed in Note 3, the Company completed a Reverse Stock Split, effective as of June 15, 2020. The outstanding shares and net asset value per common share reflect the Reverse Stock Split on a retroactive basis. |
| (5) | 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 June 30, |
Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Investment income |
||||||||||||||||
| Interest income |
$ | 109 | $ | 145 | $ | 234 | $ | 298 | ||||||||
| Paid-in-kind interest income |
9 | 8 | 20 | 16 | ||||||||||||
| Fee income |
6 | 8 | 18 | 19 | ||||||||||||
| Dividend and other income |
1 | 3 | 3 | 4 | ||||||||||||
| From non-controlled/affiliated investments: |
||||||||||||||||
| Interest income |
2 | 9 | 5 | 11 | ||||||||||||
| Paid-in-kind interest income |
4 | 4 | 9 | 8 | ||||||||||||
| Fee income |
— | — | 0 | — | ||||||||||||
| From controlled/affiliated investments: |
||||||||||||||||
| Interest income |
1 | 2 | 4 | 5 | ||||||||||||
| Paid-in-kind interest income |
2 | — | 2 | 4 | ||||||||||||
| Dividend and other income |
16 | 20 | 34 | 29 | ||||||||||||
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| Total investment income |
150 | 199 | 329 | 394 | ||||||||||||
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| Operating expenses |
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| Management fees |
26 | 28 | 56 | 57 | ||||||||||||
| Subordinated income incentive fees(1) |
— | 25 | — | 49 | ||||||||||||
| Administrative services expenses |
3 | 2 | 5 | 3 | ||||||||||||
| Accounting and administrative fees |
0 | 1 | 1 | 1 | ||||||||||||
| Interest expense(2) |
42 | 41 | 88 | 84 | ||||||||||||
| Other general and administrative expenses |
2 | 1 | 4 | 4 | ||||||||||||
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| Total operating expenses |
73 | 98 | 154 | 198 | ||||||||||||
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| Net investment income |
77 | 101 | 175 | 196 | ||||||||||||
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| Realized and unrealized gain/loss |
||||||||||||||||
| Net realized gain (loss) on investments: |
||||||||||||||||
| Non-controlled/unaffiliated investments |
(48 | ) | (51 | ) | (140 | ) | (66 | ) | ||||||||
| Non-controlled/affiliated investments |
(5 | ) | (8 | ) | (39 | ) | (8 | ) | ||||||||
| Controlled/affiliated investments |
(17 | ) | — | (17 | ) | (3 | ) | |||||||||
| Net realized gain (loss) on swap contracts |
— | (11 | ) | — | (10 | ) | ||||||||||
| Net realized gain (loss) on foreign currency forward contracts |
— | — | — | 4 | ||||||||||||
| Net realized gain (loss) on foreign currency |
1 | 3 | (3 | ) | 1 | |||||||||||
| Net change in unrealized appreciation (depreciation) on investments: |
||||||||||||||||
| Non-controlled/unaffiliated investments |
(8 | ) | 49 | (375 | ) | 19 | ||||||||||
| Non-controlled/affiliated investments |
(28 | ) | 24 | (165 | ) | 77 | ||||||||||
| Controlled/affiliated investments |
(21 | ) | (12 | ) | (212 | ) | (19 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on swap contracts |
— | 10 | — | 14 | ||||||||||||
| Net change in unrealized appreciation (depreciation) on foreign currency forward contracts |
— | (2 | ) | 2 | (1 | ) | ||||||||||
| Net change in unrealized gain (loss) on foreign currency |
(6 | ) | (2 | ) | 16 | (2 | ) | |||||||||
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| Total net realized and unrealized gain (loss) |
$ | (132 | ) | $ | — | $ | (933 | ) | $ | 6 | ||||||
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| Net increase (decrease) in net assets resulting from operations |
$ | (55 | ) | $ | 101 | $ | (758 | ) | $ | 202 | ||||||
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| Per share information—basic and diluted |
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| Net increase (decrease) in net assets resulting from operations (Earnings per Share) |
$ | (0.44 | ) | $ | 0.77 | $ | (6.07 | ) | $ | 1.54 | ||||||
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| Weighted average shares outstanding(3) |
123,806,337 | 130,549,922 | 124,831,125 | 131,209,687 | ||||||||||||
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| (1) | See Note 2 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fee. |
| (2) | See Note 9 for a discussion of the Company’s financing arrangements. |
| (3) | As discussed in Note 3, the Company completed a reverse stock split, effective as of June 15, 2020. The weighted average shares used in the per share computation of the net increase (decrease) in net assets resulting from operations reflect the reverse stock split on a retroactive basis. |
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 June 30, |
Six Months Ended June 30, |
|||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Operations |
||||||||||||||||
| Net investment income (loss) |
$ | 77 | $ | 101 | $ | 175 | $ | 196 | ||||||||
| Net realized gain (loss) on investments, swap contracts and foreign currency |
(69 | ) | (67 | ) | (199 | ) | (82 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on investments, swap contracts and foreign currency forward contracts(1) |
(57 | ) | 69 | (750 | ) | 90 | ||||||||||
| Net change in unrealized gain (loss) on foreign currency |
(6 | ) | (2 | ) | 16 | (2 | ) | |||||||||
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| Net increase (decrease) in net assets resulting from operations |
(55 | ) | 101 | (758 | ) | 202 | ||||||||||
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| Stockholder distributions(2) |
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| Distributions to stockholders |
(75 | ) | (99 | ) | (170 | ) | (199 | ) | ||||||||
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| Net decrease in net assets resulting from stockholder distributions |
(75 | ) | (99 | ) | (170 | ) | (199 | ) | ||||||||
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| Capital share transactions(3) |
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| Repurchases of common stock |
(7 | ) | (24 | ) | (47 | ) | (71 | ) | ||||||||
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| Net increase (decrease) in net assets resulting from capital share transactions |
(7 | ) | (24 | ) | (47 | ) | (71 | ) | ||||||||
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| Total increase (decrease) in net assets |
(137 | ) | (22 | ) | (975 | ) | (68 | ) | ||||||||
| Net assets at beginning of period |
3,028 | 4,120 | 3,866 | 4,166 | ||||||||||||
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| Net assets at end of period |
$ | 2,891 | $ | 4,098 | $ | 2,891 | $ | 4,098 | ||||||||
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| (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)
| Six Months Ended June 30, |
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| 2020 | 2019 | |||||||
| Cash flows from operating activities |
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| Net increase (decrease) in net assets resulting from operations |
$ | (758 | ) | $ | 202 | |||
| Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |
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| Purchases of investments |
(1,549 | ) | (1,062 | ) | ||||
| Paid-in-kind interest |
(43 | ) | (28 | ) | ||||
| Proceeds from sales and repayments of investments |
1,384 | 1,202 | ||||||
| Net realized (gain) loss on investments |
196 | 77 | ||||||
| Net change in unrealized (appreciation) depreciation on investments |
752 | (77 | ) | |||||
| Net change in unrealized (appreciation) depreciation on swap contracts |
— | (14 | ) | |||||
| Net change in unrealized (appreciation) depreciation on foreign currency forward contracts |
(2 | ) | 1 | |||||
| Accretion of discount |
(7 | ) | (8 | ) | ||||
| Amortization of deferred financing costs and discount |
3 | 3 | ||||||
| Unrealized (gain)/loss on borrowings in foreign currency |
(26 | ) | 0 | |||||
| (Increase) decrease in receivable for investments sold and repaid |
520 | 58 | ||||||
| (Increase) decrease in income receivable |
4 | (17 | ) | |||||
| (Increase) decrease in prepaid expenses and other assets |
(3 | ) | (1 | ) | ||||
| Increase (decrease) in payable for investments purchased |
6 | 11 | ||||||
| Increase (decrease) in management fees payable |
(4 | ) | 8 | |||||
| Increase (decrease) in subordinated income incentive fees payable |
— | 11 | ||||||
| Increase (decrease) in administrative services expense |
0 | 0 | ||||||
| Increase (decrease) in interest payable |
11 | (2 | ) | |||||
| Increase (decrease) in other accrued expenses and liabilities |
(7 | ) | (13 | ) | ||||
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| Net cash provided by (used in) operating activities |
477 | 351 | ||||||
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| Cash flows from financing activities |
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| Repurchases of common stock |
(47 | ) | (71 | ) | ||||
| Stockholder distributions |
(191 | ) | (144 | ) | ||||
| Borrowings under financing arrangements(1) |
1,155 | 1,372 | ||||||
| Repayments of financing arrangements(1) |
(1,396 | ) | (1,318 | ) | ||||
| Deferred financing costs paid |
(9 | ) | (6 | ) | ||||
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| Net cash provided by (used in) financing activities |
(488 | ) | (167 | ) | ||||
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| Total increase (decrease) in cash |
(11 | ) | 184 | |||||
| Cash, and foreign currency at beginning of period |
106 | 104 | ||||||
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| Cash, and foreign currency at end of period |
$ | 95 | $ | 288 | ||||
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| Supplemental disclosure |
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| Non-cash purchases of investments |
$ | (81 | ) | $ | 77 | |||
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| Non-cash sales of investments |
$ | 81 | $ | (77 | ) | |||
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| Local and excise taxes paid |
$ | 7 | $ | 8 | ||||
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| (1) | See Note 9 for a discussion of the Company’s financing arrangements. During the six months ended June 30, 2020 and 2019, the Company paid $74 and $83, 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 June 30, 2020
(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—119.9% |
||||||||||||||||||||||
| 5 Arch Income Fund 2, LLC |
(l)(n)(q)(w) | Diversified Financials | 9.0% | 11/18/23 | $ | 29.9 | $ | 29.9 | $ | 26.1 | ||||||||||||
| 5 Arch Income Fund 2, LLC |
(l)(n)(q)(v)(w) | Diversified Financials | 9.0% | 11/18/23 | 3.4 | 3.4 | 2.9 | |||||||||||||||
| A10 Capital LLC |
(g)(h) | Diversified Financials | L+650 | 1.0% | 5/1/23 | 30.3 | 30.1 | 29.3 | ||||||||||||||
| A10 Capital LLC |
(v) | Diversified Financials | L+650 | 1.0% | 5/1/23 | 14.1 | 14.0 | 13.7 | ||||||||||||||
| Abaco Systems, Inc |
(e)(g)(h)(i) | Capital Goods | L+600 | 1.0% | 12/7/21 | 60.9 | 60.1 | 60.6 | ||||||||||||||
| ABB CONCISE Optical Group LLC |
(h)(x) | Retailing | L+500 | 1.0% | 6/15/23 | 0.7 | 0.7 | 0.6 | ||||||||||||||
| Accuride Corp |
(g)(h)(i)(x) | Capital Goods | L+525 | 1.0% | 11/17/23 | 17.8 | 17.6 | 11.4 | ||||||||||||||
| Acproducts Inc |
(g)(h) | Consumer Durables & Apparel | L+650 | 1.0% | 8/18/25 | 42.4 | 40.1 | 40.9 | ||||||||||||||
| Advanced Lighting Technologies Inc |
(g)(n)(w)(z) | Materials | L+750 | 1.0% | 10/4/22 | 19.9 | 17.3 | 15.8 | ||||||||||||||
| Advantage Sales & Marketing Inc |
(g)(h)(x) | Commercial & Professional Services | L+325 | 1.0% | 7/23/21 | 11.1 | 10.8 | 10.2 | ||||||||||||||
| Alion Science & Technology Corp |
(h)(x) | Capital Goods | L+450 | 1.0% | 8/19/21 | 2.5 | 2.5 | 2.5 | ||||||||||||||
| All Systems Holding LLC |
(e)(f)(g)(h) | Commercial & Professional Services | L+625 | 1.0% | 10/31/23 | 85.0 | 84.9 | 82.8 | ||||||||||||||
| All Systems Holding LLC |
(g) | Commercial & Professional Services | L+625 | 1.0% | 10/31/23 | 27.8 | 27.8 | 27.1 | ||||||||||||||
| All Systems Holding LLC |
(v) | Commercial & Professional Services | L+625 | 1.0% | 10/31/23 | 7.2 | 7.2 | 7.0 | ||||||||||||||
| AM General LLC |
(g)(h)(i) | Capital Goods | L+725 | 1.0% | 12/28/21 | 111.8 | 111.6 | 111.8 | ||||||||||||||
| American Tire Distributors Inc |
(g)(k)(x) | Automobiles & Components | L+650, 1.5% PIK (1.5% Max PIK) | 1.0% | 9/2/24 | 23.1 | 21.8 | 15.4 | ||||||||||||||
| Amtek Global Technology Pte Ltd |
(j)(l)(z) | Automobiles & Components | E+500 | 4/4/24 | € | 49.2 | 60.5 | 43.1 | ||||||||||||||
| Apex Group Limited |
(g)(l) | Diversified Financials | L+700 | 1.3% | 6/15/23 | $ | 0.9 | 0.9 | 0.9 | |||||||||||||
| Apex Group Limited |
(l)(v) | Diversified Financials | L+700 | 1.3% | 6/15/23 | 0.9 | 0.9 | 0.9 | ||||||||||||||
| Apex Group Limited |
(g)(h)(l) | Diversified Financials | L+700 | 1.3% | 6/15/25 | 18.6 | 18.3 | 18.6 | ||||||||||||||
| Apex Group Limited |
(g)(l) | Diversified Financials | L+700 | 1.5% | 6/15/25 | £ | 31.5 | 39.9 | 39.0 | |||||||||||||
| Aspect Software Inc |
(g) | Software & Services | 8.0% PIK (8.0% Max PIK) | 6/30/20 | $ | 0.0 | — | 0.0 | ||||||||||||||
| 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 | ||||||||||||||
| Berner Food & Beverage LLC |
(g)(i) | Food & Staples Retailing | L+875 | 1.0% | 3/16/22 | 79.5 | 79.2 | 81.7 | ||||||||||||||
| Borden Dairy Co |
(g)(n)(w) | Food, Beverage & Tobacco | L+825 | 1.0% | 7/6/23 | 70.0 | 67.4 | 10.9 | ||||||||||||||
| Brand Energy & Infrastructure Services Inc |
(h)(x) | Capital Goods | L+425 | 1.0% | 6/21/24 | 3.0 | 2.9 | 2.7 | ||||||||||||||
| Charles Taylor PLC |
(g)(l) | Diversified Financials | L+575 | 1/24/27 | £ | 33.6 | 42.8 | 37.4 | ||||||||||||||
| CSafe Global |
(g) | Capital Goods | L+650 | 11/1/21 | $ | 5.9 | 5.9 | 5.8 | ||||||||||||||
| CSafe Global |
(g)(h) | Capital Goods | L+650 | 1.0% | 10/31/23 | 42.4 | 42.4 | 41.8 | ||||||||||||||
| CSafe Global |
(v) | Capital Goods | L+650 | 1.0% | 10/31/23 | 3.9 | 3.9 | 3.9 | ||||||||||||||
| CSM Bakery Products |
(g)(x) | Food, Beverage & Tobacco | L+625 | 1.0% | 1/4/22 | 1.1 | 1.1 | 1.1 | ||||||||||||||
| CTI Foods Holding Co LLC |
(g) | Food, Beverage & Tobacco | L+577, 3.0% PIK (3.0% Max PIK) | 1.0% | 5/3/24 | 3.0 | 3.0 | 2.4 | ||||||||||||||
| Distribution International Inc |
(g)(h)(x) | Retailing | L+575 | 1.0% | 12/15/23 | 27.7 | 25.0 | 22.7 | ||||||||||||||
| Eagle Family Foods Inc |
(g) | Food, Beverage & Tobacco | L+675 | 1.0% | 6/14/23 | 2.5 | 2.5 | 2.4 | ||||||||||||||
| Eagle Family Foods Inc |
(v) | Food, Beverage & Tobacco | L+675 | 1.0% | 6/14/23 | 4.6 | 4.6 | 4.4 | ||||||||||||||
| Eagle Family Foods Inc |
(g)(h)(i) | Food, Beverage & Tobacco | L+675 | 1.0% | 6/14/24 | 46.7 | 46.3 | 44.3 | ||||||||||||||
| Electronics For Imaging Inc |
(g)(x) | Technology Hardware & Equipment | L+500 | 7/23/26 | 24.6 | 23.4 | 19.3 | |||||||||||||||
| Empire Today LLC |
(e)(g)(h) | Retailing | L+650 | 1.0% | 11/17/22 | 75.6 | 75.6 | 73.3 | ||||||||||||||
| Entertainment Benefits Group LLC |
(g) | Media & Entertainment | L+575 | 1.0% | 9/30/24 | 4.3 | 4.3 | 3.9 | ||||||||||||||
| Entertainment Benefits Group LLC |
(v) | Media & Entertainment | L+575 | 1.0% | 9/30/24 | 0.8 | 0.8 | 0.7 | ||||||||||||||
| Entertainment Benefits Group LLC |
(g)(h) | Media & Entertainment | L+575 | 1.0% | 9/30/25 | 29.7 | 29.4 | 27.1 | ||||||||||||||
| Frontline Technologies Group LLC |
(g)(h)(i) | Software & Services | L+575 | 1.0% | 9/18/23 | 94.6 | 94.0 | 92.0 | ||||||||||||||
See notes to unaudited consolidated financial statements.
5
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Principal Amount(c) |
Amortized Cost |
Fair Value(d) |
||||||||||||||
| Greystone & Co Inc |
(e)(g)(h) | Diversified Financials | L+800 | 1.0% | 4/17/24 | $ | 37.0 | $ | 36.8 | $ | 37.4 | |||||||||||
| Greystone Equity Member Corp |
(g)(l) | Diversified Financials | L+725 | 3.8% | 4/1/26 | 60.8 | 60.8 | 59.3 | ||||||||||||||
| Heniff Transportation Systems LLC |
(g) | Transportation | L+575 | 1.0% | 12/3/24 | 3.4 | 3.4 | 3.3 | ||||||||||||||
| Heniff Transportation Systems LLC |
(v) | Transportation | L+575 | 1.0% | 12/3/24 | 4.8 | 4.8 | 4.7 | ||||||||||||||
| Heniff Transportation Systems LLC |
(g)(h)(i) | Transportation | L+575 | 1.0% | 12/3/26 | 64.7 | 64.4 | 63.0 | ||||||||||||||
| Hilton Worldwide Finance LLC |
(h)(l)(x) | Consumer Services | L+175 | 6/22/26 | 5.0 | 4.8 | 4.7 | |||||||||||||||
| HM Dunn Co Inc |
(g)(n)(w)(y) | Capital Goods | L+875 PIK (L+875 Max PIK) | 1.0% | 6/30/21 | 0.9 | 0.6 | 0.2 | ||||||||||||||
| HM Dunn Co Inc |
(g)(y) | Capital Goods | 15.0% PIK (15.0% Max PIK) | 6/30/21 | 0.1 | 0.1 | 0.1 | |||||||||||||||
| HM Dunn Co Inc |
(v)(y) | Capital Goods | 15.0% PIK (15.0% Max PIK) | 6/30/21 | 0.0 | 0.0 | 0.0 | |||||||||||||||
| Hudson Technologies Co |
(g)(l) | Commercial & Professional Services | L+1,025 | 1.0% | 10/10/23 | 33.1 | 32.9 | 17.3 | ||||||||||||||
| ID Verde |
(g)(l) | Commercial & Professional Services | E+700 | 3/29/24 | € | 30.0 | 32.9 | 33.1 | ||||||||||||||
| ID Verde |
(g)(l) | Commercial & Professional Services | L+725 | 3/29/24 | £ | 4.2 | 5.0 | 5.2 | ||||||||||||||
| Industria Chimica Emiliana Srl |
(g)(l) | Pharmaceuticals, Biotechnology & Life Sciences | E+650 | 6/30/26 | € | 19.3 | 20.7 | 20.9 | ||||||||||||||
| Industria Chimica Emiliana Srl |
(l)(v) | Pharmaceuticals, Biotechnology & Life Sciences | E+650 | 6/30/26 | 11.6 | 12.7 | 12.5 | |||||||||||||||
| Industry City TI Lessor LP |
(g) | Consumer Services | 10.8%, 1.0% PIK (1.0% Max PIK) | 6/30/26 | $ | 25.4 | 25.4 | 27.6 | ||||||||||||||
| J S Held LLC |
(g) | Insurance | L+600 | 1.0% | 7/1/25 | 1.1 | 1.1 | 1.1 | ||||||||||||||
| J S Held LLC |
(v) | Insurance | L+600 | 1.0% | 7/1/25 | 5.1 | 5.1 | 5.0 | ||||||||||||||
| J S Held LLC |
(e)(g)(h) | Insurance | L+600 | 1.0% | 7/1/25 | 60.5 | 60.0 | 59.6 | ||||||||||||||
| J S Held LLC |
(v) | Insurance | L+600 | 1.0% | 7/1/25 | 6.8 | 6.8 | 6.7 | ||||||||||||||
| JHT Holdings Inc |
(e)(h)(i) | Capital Goods | L+850 | 1.0% | 5/4/22 | 18.9 | 18.8 | 19.1 | ||||||||||||||
| Jo-Ann Stores Inc |
(h)(x) | Retailing | L+500 | 1.0% | 10/20/23 | 8.7 | 8.7 | 5.5 | ||||||||||||||
| Kellermeyer Bergensons Services LLC |
(e)(g)(h)(i) | Commercial & Professional Services | L+650 | 1.0% | 11/7/26 | 111.7 | 110.9 | 108.4 | ||||||||||||||
| Kellermeyer Bergensons Services LLC |
(v) | Commercial & Professional Services | L+650 | 1.0% | 11/7/26 | 35.0 | 35.0 | 34.0 | ||||||||||||||
| Kodiak BP LLC |
(g)(h) | Capital Goods | L+725 | 1.0% | 12/1/24 | 71.4 | 71.3 | 71.4 | ||||||||||||||
| Kodiak BP LLC |
(v) | Capital Goods | L+725 | 1.0% | 12/1/24 | 64.0 | 63.9 | 64.0 | ||||||||||||||
| Koosharem LLC |
(g)(x) | Commercial & Professional Services | L+450 | 1.0% | 4/18/25 | 0.0 | 0.0 | 0.0 | ||||||||||||||
| Laird PLC |
(h)(l)(x) | Technology Hardware & Equipment | L+450 | 7/9/25 | 1.9 | 1.8 | 1.8 | |||||||||||||||
| Lexitas Inc |
(g)(h)(i) | Commercial & Professional Services | L+575 | 1.0% | 11/14/25 | 23.2 | 22.9 | 22.4 | ||||||||||||||
| Lexitas Inc |
(v) | Commercial & Professional Services | L+575 | 1.0% | 11/14/25 | 3.7 | 3.7 | 3.6 | ||||||||||||||
| Lexitas Inc |
(v) | Commercial & Professional Services | L+575 | 1.0% | 11/14/25 | 2.5 | 2.5 | 2.4 | ||||||||||||||
| Lionbridge Technologies Inc |
(g)(h)(i) | Consumer Services | L+625 | 1.0% | 12/29/25 | 69.0 | 68.7 | 68.4 | ||||||||||||||
| Lipari Foods LLC |
(e)(i) | Food & Staples Retailing | L+588 | 1.0% | 1/6/25 | 85.1 | 84.4 | 82.6 | ||||||||||||||
| Lipari Foods LLC |
(g) | Food & Staples Retailing | L+588 | 1.0% | 1/6/25 | 19.3 | 19.3 | 18.8 | ||||||||||||||
| Matchesfashion Ltd |
(h)(l) | Consumer Durables & Apparel | L+463, 1.0%PIK (1.0% Max PIK) | 10/11/24 | 12.7 | 12.0 | 10.8 | |||||||||||||||
| MB Precision Holdings LLC |
(g)(y) | Capital Goods | L+725, 2.3% PIK (2.3% Max PIK) | 1.3% | 7/23/22 | 4.7 | 4.7 | 4.1 | ||||||||||||||
| Micronics Filtration Holdings Inc |
(g)(n)(w)(y) | Capital Goods | L+800, 0.5% PIK (0.5% Max PIK) | 1.3% | 12/11/20 | 45.6 | 45.0 | 32.6 | ||||||||||||||
| Motion Recruitment Partners LLC |
(g)(h) | Commercial & Professional Services | L+600 | 1.0% | 12/20/25 | 37.7 | 37.4 | 33.5 | ||||||||||||||
| Motion Recruitment Partners LLC |
(v) | Commercial & Professional Services | L+600 | 1.0% | 12/20/25 | 29.8 | 29.8 | 26.5 | ||||||||||||||
| NBG Home |
(g)(h)(i)(x) | Consumer Durables & Apparel | L+550 | 1.0% | 4/26/24 | 70.1 | 69.8 | 32.3 | ||||||||||||||
| NCI Inc |
(g)(h)(i) | Software & Services | L+500, 2.5% PIK (2.5% Max PIK) | 1.0% | 8/15/24 | 82.4 | 81.8 | 74.3 | ||||||||||||||
| One Call Care Management Inc |
(g)(x)(y) | Insurance | L+525 | 1.0% | 11/27/22 | 4.9 | 4.2 | 4.3 | ||||||||||||||
| P2 Energy Solutions Inc |
(g) | Software & Services | L+675 | 1.0% | 1/31/25 | 2.3 | 2.3 | 2.3 | ||||||||||||||
| P2 Energy Solutions Inc |
(v) | Software & Services | L+675 | 1.0% | 1/31/25 | 4.7 | 4.7 | 4.5 | ||||||||||||||
| P2 Energy Solutions Inc |
(g)(h)(i) | Software & Services | L+675 | 1.0% | 1/31/26 | 117.1 | 115.7 | 112.9 | ||||||||||||||
| Petroplex Acidizing Inc |
(g)(n)(w)(y) | Energy | L+725, 1.8% PIK (1.8% Max PIK) | 1.0% | 12/30/21 | 23.4 | 22.8 | 7.9 | ||||||||||||||
See notes to unaudited consolidated financial statements.
6
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Principal Amount(c) |
Amortized Cost |
Fair Value(d) |
||||||||||||||
| Premium Credit Ltd |
(g)(l) | Diversified Financials | L+650 | 1/16/26 | £ | 50.6 | $ | 64.6 | $ | 60.1 | ||||||||||||
| Pretium Packaging LLC |
(g)(h)(i) | Household & Personal Products | L+625 | 1.0% | 1/15/27 | $ | 20.4 | 20.2 | 19.9 | |||||||||||||
| Pretium Packaging LLC |
(v) | Household & Personal Products | L+625 | 1.0% | 1/15/27 | 19.5 | 19.4 | 19.1 | ||||||||||||||
| Project Marron |
(g)(l) | Consumer Services | B+625 | 7/3/25 | A$ | 1.5 | 1.0 | 0.9 | ||||||||||||||
| PSKW LLC |
(e)(g) | Health Care Equipment & Services | L+625 | 1.0% | 3/9/26 | $ | 138.0 | 136.3 | 134.4 | |||||||||||||
| Qdoba Restaurant Corp |
(h)(x) | Consumer Services | L+700 | 1.0% | 3/21/25 | 11.1 | 10.9 | 9.9 | ||||||||||||||
| Reliant Rehab Hospital Cincinnati LLC |
(e)(g)(h)(i) | Health Care Equipment & Services | L+675 | 9/2/24 | 102.7 | 101.9 | 96.6 | |||||||||||||||
| Roadrunner Intermediate Acquisition Co LLC |
(h) | Health Care Equipment & Services | L+675 | 1.0% | 3/15/23 | 10.9 | 10.9 | 10.8 | ||||||||||||||
| RSC Insurance Brokerage Inc |
(e)(g)(h)(i) | Insurance | L+550 | 1.0% | 11/1/26 | 81.2 | 80.5 | 79.8 | ||||||||||||||
| RSC Insurance Brokerage Inc |
(v) | Insurance | L+550 | 1.0% | 11/1/26 | 15.7 | 15.5 | 15.4 | ||||||||||||||
| RSC Insurance Brokerage Inc |
(v) | Insurance | L+550 | 1.0% | 11/1/26 | 3.2 | 3.1 | 3.1 | ||||||||||||||
| Safe-Guard Products International LLC |
(e)(i) | Diversified Financials | L+575 | 1/27/27 | 65.5 | 64.9 | 61.7 | |||||||||||||||
| Savers Inc |
(e)(h) | Retailing | L+650, 2.8% PIK (2.8% Max PIK) | 1.5% | 3/28/24 | 44.8 | 44.3 | 42.4 | ||||||||||||||
| Savers Inc |
(g) | Retailing | L+700, 2.8% PIK (2.8% Max PIK) | 1.5% | 3/28/24 | C$ | 62.2 | 45.8 | 44.2 | |||||||||||||
| Sequa Corp |
(h)(x) | Capital Goods | L+500 | 1.0% | 11/28/21 | $ | 11.6 | 11.6 | 10.6 | |||||||||||||
| Sequel Youth & Family Services LLC |
(g) | Health Care Equipment & Services | L+700 | 1.0% | 9/1/23 | 13.8 | 13.8 | 13.0 | ||||||||||||||
| Sequel Youth & Family Services LLC |
(e)(g)(h) | Health Care Equipment & Services | L+800 | 1.0% | 9/1/23 | 80.0 | 80.0 | 75.5 | ||||||||||||||
| Sequential Brands Group Inc. |
(g)(h) | Consumer Durables & Apparel | L+875 | 2/7/24 | 59.4 | 58.6 | 53.6 | |||||||||||||||
| Sorenson Communications LLC |
(g)(h)(x) | Telecommunication Services | L+650 | 4/29/24 | 12.6 | 12.2 | 12.5 | |||||||||||||||
| Staples Canada |
(g)(l) | Retailing | C+700 | 1.0% | 9/12/24 | C$ | 9.3 | 7.2 | 6.9 | |||||||||||||
| Sungard Availability Services Capital Inc |
(g) | Software & Services | L+750 | 1.0% | 2/3/22 | $ | 0.7 | 0.6 | 0.7 | |||||||||||||
| Sungard Availability Services Capital Inc |
(v) | Software & Services | L+750 | 1.0% | 2/3/22 | 0.4 | 0.3 | 0.4 | ||||||||||||||
| Sutherland Global Services Inc |
(h)(l)(x) | Software & Services | L+538 | 1.0% | 4/23/21 | 4.5 | 4.5 | 3.9 | ||||||||||||||
| Sweet Harvest Foods Management Co |
(g)(i) | Food & Staples Retailing | L+775, 1.0% PIK (1.0% Max PIK) | 1.0% | 6/23/23 | 24.3 | 24.2 | 25.0 | ||||||||||||||
| Sweet Harvest Foods Management Co |
(g) | Food & Staples Retailing | L+775, 1.0% PIK (1.0% Max PIK) | 1.0% | 6/23/23 | 0.8 | 0.8 | 0.8 | ||||||||||||||
| Tangoe LLC |
(e)(g)(h)(i) | Software & Services | L+650 | 1.0% | 11/28/25 | 89.4 | 88.7 | 83.9 | ||||||||||||||
| ThermaSys Corp |
(g)(y) | Capital Goods | L+600, 11.0% PIK (11.0% Max PIK) | 12/28/23 | 7.1 | 7.5 | 5.0 | |||||||||||||||
| ThreeSixty Group |
(g)(h)(i) | Retailing | L+375, 3.8% PIK (3.8% Max PIK) | 1.5% | 3/1/23 | 50.6 | 50.2 | 43.4 | ||||||||||||||
| ThreeSixty Group |
(g)(h)(i) | Retailing | L+375, 3.8% PIK (3.8% Max PIK) | 1.5% | 3/1/23 | 50.9 | 50.5 | 43.7 | ||||||||||||||
| Torrid Inc |
(g)(h) | Retailing | L+650 | 1.0% | 12/14/24 | 31.2 | 30.9 | 29.8 | ||||||||||||||
| Trace3 Inc |
(e)(g)(h) | Software & Services | L+675 | 1.0% | 8/3/24 | 89.0 | 89.0 | 87.4 | ||||||||||||||
| Transaction Services Group Ltd |
(g)(l) | Consumer Services | B+600 | 10/15/26 | A$ | 7.6 | 5.0 | 4.8 | ||||||||||||||
| Transaction Services Group Ltd |
(g)(l) | Consumer Services | L+600 | 10/15/26 | $ | 15.9 | 15.9 | 14.6 | ||||||||||||||
| Transaction Services Group Ltd |
(g)(l) | Consumer Services | L+600 | 10/15/26 | £ | 6.1 | 7.8 | 7.0 | ||||||||||||||
| Truck-Lite Co LLC |
(g) | Capital Goods | L+625 | 1.0% | 12/13/24 | $ | 4.2 | 4.2 | 4.1 | |||||||||||||
| Truck-Lite Co LLC |
(v) | Capital Goods | L+625 | 1.0% | 12/13/24 | 7.6 | 7.5 | 7.3 | ||||||||||||||
| Truck-Lite Co LLC |
(g)(h)(i) | Capital Goods | L+625 | 1.0% | 12/13/26 | 109.8 | 108.5 | 105.9 | ||||||||||||||
| Truck-Lite Co LLC |
(v) | Capital Goods | L+625 | 1.0% | 12/13/26 | 16.2 | 16.1 | 15.6 | ||||||||||||||
| United Rentals North America Inc |
(h)(k)(l)(x) | Capital Goods | L+175 | 10/31/25 | 5.0 | 4.9 | 4.9 | |||||||||||||||
| Utility One Source LP |
(h)(x) | Capital Goods | L+425 | 4/18/25 | 0.0 | 0.0 | 0.0 | |||||||||||||||
| Virgin Pulse Inc |
(e)(g)(h)(i) | Software & Services | L+650 | 1.0% | 5/22/25 | 136.2 | 135.4 | 135.3 | ||||||||||||||
| Warren Resources Inc |
(h) | Energy | L+1,000, 1.0% PIK (1.0% Max PIK) | 1.0% | 5/21/21 | 0.7 | 0.7 | 0.7 | ||||||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+855 | 1.0% | 10/15/21 | 9.2 | 9.2 | 9.2 | ||||||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+855 | 1.0% | 7/15/22 | 5.2 | 5.2 | 5.2 | ||||||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+710 | 1.0% | 6/30/24 | 18.2 | 18.2 | 18.2 | ||||||||||||||
See notes to unaudited consolidated financial statements.
7
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Principal Amount(c) |
Amortized Cost |
Fair Value(d) |
||||||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+710 | 1.0% | 11/1/24 | $ | 7.5 | $ | 7.5 | $ | 7.5 | |||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+710 | 1.0% | 12/21/24 | 3.9 | 3.9 | 3.9 | ||||||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+710 | 1.0% | 12/21/24 | 12.5 | 12.4 | 12.4 | ||||||||||||||
| Wheels Up Partners LLC |
(g) | Transportation | L+710 | 1.0% | 12/21/24 | 12.1 | 12.1 | 12.1 | ||||||||||||||
| Z Gallerie LLC |
(g)(n)(w)(y) | Retailing | L+650 | 1.0% | 12/31/21 | 1.1 | 0.8 | 1.0 | ||||||||||||||
| Zeta Interactive Holdings Corp |
(e)(g)(h) | Software & Services | L+750 | 1.0% | 7/29/22 | 15.8 | 15.8 | 15.8 | ||||||||||||||
| Zeta Interactive Holdings Corp |
(v) | Software & Services | L+750 | 1.0% | 7/29/22 | 0.6 | 0.6 | 0.6 | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total Senior Secured Loans—First Lien |
4,020.2 | 3,732.4 | ||||||||||||||||||||
| Unfunded Loan Commitments |
(267.0 | ) | (267.0 | ) | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Net Senior Secured Loans—First Lien |
3,753.2 | 3,465.4 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Senior Secured Loans—Second Lien—29.3% |
||||||||||||||||||||||
| Abaco Systems, Inc |
(e)(g) | Capital Goods | L+1,050 | 1.0% | 6/7/22 | 63.4 | 62.8 | 63.3 | ||||||||||||||
| Agro Merchants Global LP |
(g) | Transportation | L+800 | 1.0% | 11/30/25 | 13.4 | 13.2 | 13.0 | ||||||||||||||
| Amtek Global Technology Pte Ltd |
(g)(j)(l)(n)(w)(z) | Automobiles & Components | E+500 | 4/4/24 | € | 43.8 | 51.3 | — | ||||||||||||||
| Arena Energy LP |
(g)(n)(w) | Energy | L+1,200, 4.0% PIK (4.0% Max PIK) | 1.0% | 1/24/21 | $ | 9.2 | 8.9 | 1.2 | |||||||||||||
| athenahealth Inc |
(g) | Health Care Equipment & Services | L+850 | 2/11/27 | 112.9 | 111.9 | 114.0 | |||||||||||||||
| Belk Inc |
(g)(n)(w) | Retailing | 10.5% | 6/12/23 | 19.5 | 15.0 | 5.0 | |||||||||||||||
| Belk Inc |
(g)(n)(w) | Retailing | 10.5% | 10/29/25 | 99.6 | 95.9 | 25.7 | |||||||||||||||
| Byrider Finance LLC |
(f)(g) | Automobiles & Components | L+1,000, 0.5% PIK (0.5% Max PIK) | 1.3% | 6/7/22 | 18.0 | 18.0 | 17.7 | ||||||||||||||
| Chisholm Oil & Gas Operating LLC |
(g)(n)(w) | Energy | L+550, 3.0% PIK (3.0% Max PIK) | 1.3% | 3/21/24 | 16.4 | 16.0 | 0.8 | ||||||||||||||
| CommerceHub Inc |
(g)(h) | Software & Services | L+775 | 5/21/26 | 69.3 | 67.6 | 68.1 | |||||||||||||||
| Culligan International Co |
(g)(h) | Household & Personal Products | L+850 | 1.0% | 12/13/24 | 85.0 | 84.4 | 82.5 | ||||||||||||||
| Emerald Performance Materials LLC |
(g)(x) | Materials | L+775 | 1.0% | 8/1/22 | 2.2 | 2.2 | 2.1 | ||||||||||||||
| Gruden Acquisition Inc |
(g)(x) | Transportation | L+850 | 1.0% | 8/18/23 | 10.0 | 9.7 | 8.9 | ||||||||||||||
| MedAssets Inc |
(e)(g) | Health Care Equipment & Services | L+975 | 1.0% | 4/20/23 | 63.0 | 62.0 | 45.9 | ||||||||||||||
| NBG Home |
(g)(n)(w) | Consumer Durables & Apparel | 11.8% PIK (11.8% Max PIK) | 1.0% | 9/30/24 | 25.9 | 24.7 | 4.9 | ||||||||||||||
| NEP Broadcasting LLC |
(g)(x) | Media & Entertainment | L+700 | 10/19/26 | 1.0 | 1.0 | 0.8 | |||||||||||||||
| OEConnection LLC |
(g) | Software & Services | L+825 | 9/25/27 | 34.1 | 33.7 | 32.6 | |||||||||||||||
| Paradigm Acquisition Corp |
(g)(x) | Health Care Equipment & Services | L+750 | 10/26/26 | 2.4 | 2.4 | 2.1 | |||||||||||||||
| Peak 10 Holding Corp |
(g)(n)(w)(x) | Telecommunication Services | L+725 | 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 | 64.0 | 60.5 | ||||||||||||||
| Polyconcept North America Inc |
(g) | Household & Personal Products | L+1,000 | 1.0% | 2/16/24 | 29.4 | 28.9 | 25.5 | ||||||||||||||
| Pure Fishing Inc |
(g) | Consumer Durables & Apparel | L+838 | 1.0% | 12/31/26 | 81.1 | 80.3 | 59.8 | ||||||||||||||
| Rise Baking Company |
(g)(h) | Food, Beverage & Tobacco | L+800 | 1.0% | 8/9/26 | 31.1 | 30.9 | 30.2 | ||||||||||||||
| Sequa Corp |
(h)(x) | Capital Goods | L+900 | 1.0% | 4/28/22 | 3.4 | 3.4 | 2.5 | ||||||||||||||
| Sorenson Communications LLC |
(f) | Telecommunication Services | 11.5% PIK (11.5% Max PIK) | 4/30/25 | 17.3 | 16.9 | 17.3 | |||||||||||||||
| Sparta Systems Inc |
(g) | Software & Services | L+825 | 1.0% | 8/21/25 | 35.1 | 34.7 | 30.2 | ||||||||||||||
| 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 | ||||||||||||||
| Vestcom International Inc |
(g)(h) | Consumer Services | L+800 | 1.0% | 12/19/24 | 70.5 | 70.1 | 69.6 | ||||||||||||||
| WireCo WorldGroup Inc |
(h)(x) | Capital Goods | L+900 | 1.0% | 9/30/24 | 3.4 | 3.4 | 2.6 | ||||||||||||||
| Wittur Holding GmbH |
(g)(l) | Capital Goods | E+850, 0.5% PIK (0.5% Max PIK) | 9/23/27 | € | 56.5 | 60.3 | 57.4 | ||||||||||||||
| Z Gallerie LLC |
(g)(n)(w)(y) | Retailing | 12.0% | 6/20/21 | $ | 2.9 | 2.9 | 1.0 | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total Senior Secured Loans—Second Lien |
1,078.7 | 847.3 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
See notes to unaudited consolidated financial statements.
8
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Principal Amount(c) |
Amortized Cost |
Fair Value(d) |
||||||||||||||
| Other Senior Secured Debt—4.6% |
||||||||||||||||||||||
| Advanced Lighting Technologies Inc |
(g)(n)(w)(z) | Materials | L+1,700 PIK (L+1,700 Max PIK) | 1.0% | 10/4/23 | $ | 35.0 | $ | 23.6 | $ | — | |||||||||||
| Angelica Corp |
(n)(t)(w) | Health Care Equipment & Services | 10.0% PIK (10.0% Max PIK) | 12/30/22 | 46.0 | 42.2 | 29.2 | |||||||||||||||
| Black Swan Energy Ltd |
(e)(l) | Energy | 9.0% | 1/20/24 | 6.0 | 6.0 | 5.8 | |||||||||||||||
| Enterprise Development Authority |
(g)(x) | Consumer Services | 12.0% | 7/15/24 | 3.6 | 3.7 | 3.6 | |||||||||||||||
| FourPoint Energy LLC |
(e)(f)(g)(n)(w) | Energy | 9.0% | 12/31/21 | 74.8 | 73.9 | 41.0 | |||||||||||||||
| JW Aluminum Co |
(e)(g)(x)(y) | Materials | 10.3% | 6/1/26 | 36.5 | 36.5 | 38.1 | |||||||||||||||
| Lycra |
(g)(l)(x) | Consumer Durables & Apparel | 7.5% | 5/1/25 | 5.4 | 5.4 | 3.8 | |||||||||||||||
| Mood Media Corp |
(f)(g)(n)(w)(y) | Media & Entertainment | 14.0% PIK (14.0% Max PIK) | 12/31/23 | 41.5 | 40.4 | 1.0 | |||||||||||||||
| TruckPro LLC |
(g)(x) | Capital Goods | 11.0% | 10/15/24 | 2.9 | 2.8 | 2.8 | |||||||||||||||
| Velvet Energy Ltd |
(g)(l) | Energy | 9.0% | 10/5/23 | 7.5 | 7.5 | 6.7 | |||||||||||||||
| Z Gallerie LLC |
(g)(n)(w)(y) | Retailing | L+650 | 1.0% | 12/31/21 | 0.4 | — | — | ||||||||||||||
| Z Gallerie LLC |
(g)(n)(w)(y) | Retailing | L+650 | 1.0% | 6/20/22 | 1.8 | 1.5 | — | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total Other Senior Secured Debt |
243.5 | 132.0 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Subordinated Debt—8.8% |
||||||||||||||||||||||
| Alion Science & Technology Corp |
(e)(g) | Capital Goods | 11.0% | 8/1/22 | 68.6 | 68.2 | 68.6 | |||||||||||||||
| Alion Science & Technology Corp |
(g) | Capital Goods | 11.0% | 8/31/22 | 22.2 | 21.9 | 22.2 | |||||||||||||||
| 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 | 67.3 | 67.3 | 66.8 | |||||||||||||||
| Byrider Finance LLC |
(g) | Automobiles & Components | 20.0% PIK (20.0% Max PIK) | 3/31/22 | 1.3 | 1.3 | 1.3 | |||||||||||||||
| ClubCorp Club Operations Inc |
(g)(x) | Consumer Services | 8.5% | 9/15/25 | 23.4 | 23.1 | 18.8 | |||||||||||||||
| Craftworks Rest & Breweries Group Inc |
(g)(n)(w) | Consumer Services | 12.0% PIK (12.0% Max PIK) | 11/1/24 | 7.3 | 7.2 | — | |||||||||||||||
| DEI Sales Inc |
(e)(g)(n)(w) | Consumer Durables & Apparel | 16.0% PIK (16.0% Max PIK) | 2/28/23 | 84.8 | 82.1 | 21.0 | |||||||||||||||
| Hilding Anders |
(g)(l)(n)(w)(z) | Consumer Durables & Apparel | 13.0% PIK (13.0% Max PIK) | 6/30/21 | € | 110.9 | 99.4 | 26.3 | ||||||||||||||
| Hilding Anders |
(g)(l)(z) | Consumer Durables & Apparel | 110.5 | — | — | |||||||||||||||||
| Hilding Anders |
(g)(l)(z) | Consumer Durables & Apparel | 24.8 | 26.9 | 27.8 | |||||||||||||||||
| Ply Gem Holdings Inc |
(g)(x) | Capital Goods | 8.0% | 4/15/26 | $ | 0.2 | 0.2 | 0.2 | ||||||||||||||
| Quorum Health Corp |
(g)(n)(w)(x) | Health Care Equipment & Services | 11.6% | 4/15/23 | 3.3 | 3.3 | 0.5 | |||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Total Subordinated Debt |
401.0 | 253.6 | ||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Principal Amount(c)/ Shares |
Amortized Cost |
Fair Value(d) |
||||||||||||||
| Asset Based Finance—30.6% |
||||||||||||||||||||||
| 801 5th Ave, Seattle, Private Equity |
(g)(l)(n)(z) | Real Estate | 8,799,177 | $ | 8.8 | $ | 15.1 | |||||||||||||||
| 801 5th Ave, Seattle, Structure Mezzanine |
(g)(l)(z) | Real Estate | 8.0%, 3.0% PIK (3.0% Max PIK) | 12/19/29 | $ | 53.0 | 53.0 | 53.0 | ||||||||||||||
| Abacus JV, Private Equity |
(g)(l) | Insurance | 27,083,946 | 27.1 | 30.3 | |||||||||||||||||
| Accelerator Investments Aggregator LP, Private Equity |
(g)(l)(n) | Diversified Financials | 3,303,010 | 3.8 | 3.0 | |||||||||||||||||
| Altavair AirFinance, Private Equity |
(g)(l) | Capital Goods | 43,028,663 | 43.0 | 44.6 | |||||||||||||||||
| AMPLIT JV LP, Limited Partnership Interest |
(g)(l)(n) | Diversified Financials | N/A | 4.0 | 0.4 | |||||||||||||||||
| Australis Maritime, Common Stock |
(g)(l)(n) | Transportation | 17,332,793 | 17.3 | 17.7 | |||||||||||||||||
| Avida Holding AB, Common Stock |
(g)(l)(n)(z) | Diversified Financials | 2,223,731 | 0.2 | 0.2 | |||||||||||||||||
| Bank of Ireland, Class B Credit Linked Floating Rate Note |
(j)(l) | Banks | L+1,185 | 12/4/27 | $ | 15.1 | 15.1 | 14.5 | ||||||||||||||
See notes to unaudited consolidated financial statements.
9
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Principal Amount(c)/ Shares |
Amortized Cost |
Fair Value(d) |
||||||||||||||||||||||
| Byrider Finance LLC, Sub Note |
(g)(k) | Automobiles & Components | 8.7% | 2/17/25 | $ | 2.1 | $ | 2.0 | $ | 2.0 | ||||||||||||||||||||
| Global Jet Capital LLC, Preferred Stock |
(f)(g)(n) | Commercial & Professional Services | 69,429,554 | 69.4 | — | |||||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 1/30/25 | $ | 1.2 | 1.1 | 1.1 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 4/30/25 | $ | 7.8 | 7.1 | 7.2 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 9/3/25 | $ | 1.6 | 1.5 | 1.5 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 9/29/25 | $ | 1.5 | 1.4 | 1.4 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(f)(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 12/4/25 | $ | 92.1 | 83.6 | 84.9 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(f)(g)(l) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 12/4/25 | $ | 20.5 | 18.6 | 18.9 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(f)(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 12/9/25 | $ | 2.1 | 1.9 | 2.0 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(f)(g)(l) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 12/9/25 | $ | 16.3 | 14.8 | 15.0 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(f) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 1/29/26 | $ | 7.9 | 7.2 | 7.3 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(f)(l) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 1/29/26 | $ | 1.8 | 1.6 | 1.6 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 4/14/26 | $ | 19.7 | 17.9 | 18.2 | ||||||||||||||||||||||
| Global Jet Capital LLC, Structured Mezzanine |
(g) | Commercial & Professional Services | 15.0% PIK (15.0% Max PIK) | 12/2/26 | $ | 19.3 | 17.6 | 17.9 | ||||||||||||||||||||||
| Global Lending Services LLC, Private Equity |
(g)(l)(n) | Diversified Financials | 5,919,982 | 5.9 | 6.2 | |||||||||||||||||||||||||
| Home Partners JV, Common Stock |
(g)(l)(n)(y) | Real Estate | 13,628,604 | 13.6 | 15.7 | |||||||||||||||||||||||||
| Home Partners JV, Private Equity |
(g)(l)(n)(x)(y) | Real Estate | 585,960 | 0.6 | 0.0 | |||||||||||||||||||||||||
| Home Partners JV, Structured Mezzanine |
(g)(l)(y) | Real Estate | 11.0% PIK (11.0% Max PIK) | 3/25/29 | $ | 30.5 | 30.5 | 30.5 | ||||||||||||||||||||||
| Home Partners JV, Structured Mezzanine |
(l)(v)(y) | Real Estate | 11.0% PIK (11.0% Max PIK) | 3/25/29 | $ | 16.2 | 16.2 | 16.2 | ||||||||||||||||||||||
| Kilter Finance, Private Equity |
(g)(l)(n)(z) | Insurance | 247,441 | 0.2 | 0.2 | |||||||||||||||||||||||||
| KKR Central Park Leasing Aggregator L.P., Partnership Interest |
(g)(l) | Capital Goods | 12.0% | 5/31/23 | N/A | 42.9 | 42.6 | |||||||||||||||||||||||
| KKR Zeno Aggregator LP (K2 Aviation), Partnership Interest |
(g)(l) | Capital Goods | 18,232,157 | 18.2 | 21.0 | |||||||||||||||||||||||||
| Lenovo Group Ltd, Structured Mezzanine |
(g)(l) | Technology Hardware & Equipment | 8.0% | 6/22/22 | € | 7.4 | 8.4 | 8.3 | ||||||||||||||||||||||
| Lenovo Group Ltd, Structured Mezzanine |
(g)(l) | Technology Hardware & Equipment | 12.0% | 6/22/22 | € | 4.7 | 5.3 | 5.3 | ||||||||||||||||||||||
| Luxembourg Life Fund—Absolute Return Fund I, 1L Term Loan |
(g)(l) | Insurance | L+750 | 1.5% | 2/27/25 | $ | 34.2 | 34.1 | 33.8 | |||||||||||||||||||||
| Opendoor Labs Inc, 2L Term Loan |
(g)(l) | Real Estate | 10.0% | 1/23/26 | $ | 23.6 | 23.6 | 23.6 | ||||||||||||||||||||||
| Opendoor Labs Inc, 2L Term Loan |
(l)(v) | Real Estate | 10.0% | 1/23/26 | $ | 47.1 | 47.1 | 47.1 | ||||||||||||||||||||||
| 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 | 62,976 | 62.0 | 20.3 | |||||||||||||||||||||||||
| Prime ST LLC, Private Equity |
(g)(l)(n)(z) | Real Estate | 5,676,244 | 5.7 | 2.1 | |||||||||||||||||||||||||
| Prime ST LLC, Structured Mezzanine |
(g)(l)(z) | Real Estate | 5.0%, 6.0% PIK (6.0% Max PIK) | 3/12/30 | $ | 40.3 | 40.3 | 40.3 | ||||||||||||||||||||||
| Rampart CLO 2007 1A Class Subord. |
(g)(l)(n) | Diversified Financials | 10/25/21 | $ | 10.0 | — | — | |||||||||||||||||||||||
| Sofi Lending Corp, Purchase Facility |
(g)(l) | Diversified Financials | 32,231,687 | 32.2 | 32.6 | |||||||||||||||||||||||||
| Star Mountain Diversified Credit Income Fund III, LP, Private Equity |
(l)(p) | Diversified Financials | 5,000,000 | 5.0 | 4.6 | |||||||||||||||||||||||||
| Toorak Capital Funding LLC, Membership Interest |
(g)(l)(z) | Real Estate | N/A | 7.9 | 9.5 | |||||||||||||||||||||||||
| Toorak Capital Partners LLC, Private Equity |
(g)(z) | Real Estate | N/A | 191.3 | 229.6 | |||||||||||||||||||||||||
| Wind River CLO Ltd. 2012 1A Class Subord. B |
(g)(l)(n) | Diversified Financials | 1/15/26 | $ | 42.5 | 17.5 | 1.3 | |||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
| Total Asset Based Finance |
1,029.6 | 948.6 | ||||||||||||||||||||||||||||
| Unfunded commitments |
(63.3 | ) | (63.3 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
| Net Asset Based Finance |
966.3 | 885.3 | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
See notes to unaudited consolidated financial statements.
10
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor | Maturity | Principal Amount(c) |
Amortized Cost |
Fair Value(d) |
||||||||||||||||||
| Strategic Credit Opportunities, LLC—21.1% |
||||||||||||||||||||||||||
| Strategic Credit Opportunities Partners, LLC |
(g)(l)(x)(z) | Diversified Financials | $ | 757.8 | $ | 757.8 | $ | 611.7 | ||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||
| Total Strategic Credit Opportunities Partners |
757.8 | 611.7 | ||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Number of Shares |
Amortized Cost |
Fair Value(d) |
||||||||||||||||||
| Equity/Other—14.8%(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 | 7,350,267 | 7.4 | 11.9 | |||||||||||||||||||||
| All Systems Holding LLC, Common Stock |
(g)(n) | Commercial & Professional Services | 586,763 | 0.6 | 0.7 | |||||||||||||||||||||
| Amtek Global Technology Pte Ltd, Ordinary Shares |
(j)(l)(n)(z) | Automobiles & Components | 5,735,804,056 | 30.7 | — | |||||||||||||||||||||
| Amtek Global Technology Pte Ltd, Private Equity |
(j)(l)(n)(z) | Automobiles & Components | 4,097 | — | — | |||||||||||||||||||||
| Amtek Global Technology Pte Ltd, Trade Claim |
(j)(l)(n)(z) | Automobiles & Components | 1,190,759 | 1.0 | — | |||||||||||||||||||||
| 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 | — | ||||||||||||||||||||
| Ascent Resources Utica Holdings LLC / ARU Finance Corp, Common Stock |
(n)(o) | Energy | 10,193 | 9.7 | 2.4 | |||||||||||||||||||||
| Ascent Resources Utica Holdings LLC / ARU Finance Corp, Trade Claim |
(o) | Energy | 86,607,143 | 19.4 | 20.4 | |||||||||||||||||||||
| ASG Technologies, Common Stock |
(g)(n)(y) | Software & Services | 1,149,421 | 23.4 | 40.8 | |||||||||||||||||||||
| ASG Technologies, Warrant |
(g)(n)(y) | Software & Services | 6/27/22 | 229,541 | 6.5 | 3.2 | ||||||||||||||||||||
| Aspect Software Inc, Common Stock |
(g)(n) | Software & Services | 161,261 | 0.3 | 0.3 | |||||||||||||||||||||
| Aspect Software Inc, Warrant |
(g)(n) | Software & Services | 1/15/24 | 161,008 | — | — | ||||||||||||||||||||
| AVF Parent LLC, Trade Claim |
(g)(n) | Retailing | 56,969 | — | 0.8 | |||||||||||||||||||||
| Belk Inc, Units |
(g)(n) | Retailing | 1,642 | 7.8 | — | |||||||||||||||||||||
| Byrider Finance LLC, Common Stock |
(g)(n) | Automobiles & Components | 833 | — | — | |||||||||||||||||||||
| Cengage Learning, Inc, Common Stock |
(g)(n) | Media & Entertainment | 227,802 | 7.5 | 2.4 | |||||||||||||||||||||
| 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 | — | |||||||||||||||||||||
| CSafe Global, Common Stock |
(g)(n) | Capital Goods | 391,300 | 0.4 | 0.6 | |||||||||||||||||||||
| CTI Foods Holding Co LLC, Common Stock |
(g)(n) | Food, Beverage & Tobacco | 5,836 | 0.7 | 0.1 | |||||||||||||||||||||
| DEI Sales Inc, Class A Units |
(g)(n) | Consumer Durables & Apparel | 649,538 | 1.1 | — | |||||||||||||||||||||
| DEI Sales Inc, Series I Units |
(g)(n) | Consumer Durables & Apparel | 308,948 | 0.5 | — | |||||||||||||||||||||
| DEI Sales Inc, Series II Units |
(n)(p) | Consumer Durables & Apparel | 316,770 | 0.5 | — | |||||||||||||||||||||
| Directed LLC, Warrant |
(g)(n) | Consumer Durables & Apparel | 12/31/25 | 649,538 | — | — | ||||||||||||||||||||
| Empire Today LLC, Common Stock |
(g)(n) | Retailing | 375 | 1.1 | 1.5 | |||||||||||||||||||||
| FourPoint Energy LLC, Common Stock, Class C—II—A Units |
(n)(p) | Energy | 21,000 | 21.0 | 0.1 | |||||||||||||||||||||
| FourPoint Energy LLC, Common Stock, Class D Units |
(n)(p) | Energy | 3,937 | 2.6 | 0.0 | |||||||||||||||||||||
| FourPoint Energy LLC, Common Stock, Class E—II Units |
(n)(p) | Energy | 48,025 | 12.0 | 0.2 | |||||||||||||||||||||
| FourPoint Energy LLC, Common Stock, Class E—III Units |
(n)(p) | Energy | 70,875 | 17.7 | 0.3 | |||||||||||||||||||||
| Fronton BV, Common Stock |
(n)(p)(y) | Consumer Services | 14,943 | — | 0.9 | |||||||||||||||||||||
| Genesys Telecommunications Laboratories Inc, Class A Shares |
(g)(n) | Technology Hardware & Equipment | 40,529 | — | — | |||||||||||||||||||||
| Genesys Telecommunications Laboratories Inc, Ordinary Shares |
(g)(n) | Technology Hardware & Equipment | 41,339 | — | — | |||||||||||||||||||||
See notes to unaudited consolidated financial statements.
11
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Number of Shares |
Amortized Cost |
Fair Value(d) |
||||||||||||||||||
| Genesys Telecommunications Laboratories Inc, Preferred Stock |
(g)(n) | Technology Hardware & Equipment | 1,050,465 | $ | — | $ | — | |||||||||||||||||||
| Harvey Industries Inc, Common Stock |
(g)(n) | Capital Goods | 2,333,333 | — | 2.0 | |||||||||||||||||||||
| Hilding Anders, Class A Common Stock |
(g)(l)(n)(z) | Consumer Durables & Apparel | 4,503,411 | 0.1 | — | |||||||||||||||||||||
| Hilding Anders, Class B Common Stock |
(g)(l)(n)(z) | Consumer Durables & Apparel | 574,791 | 0.0 | — | |||||||||||||||||||||
| Hilding Anders, Class C Common Stock |
(g)(l)(n)(z) | Consumer Durables & Apparel | 213,201 | — | — | |||||||||||||||||||||
| Hilding Anders, Equity Options |
(g)(l)(n)(z) | Consumer Durables & Apparel | 12/31/20 | 236,160,807 | 15.0 | — | ||||||||||||||||||||
| HM Dunn Co Inc, Preferred Stock, Series A |
(g)(n)(y) | Capital Goods | 214 | — | — | |||||||||||||||||||||
| HM Dunn Co Inc, Preferred Stock, Series B |
(g)(n)(y) | Capital Goods | 214 | — | — | |||||||||||||||||||||
| Home Partners of America Inc, Common Stock |
(g)(n)(y) | Real Estate | 81,625 | 83.6 | 129.3 | |||||||||||||||||||||
| Home Partners of America Inc, Warrant |
(g)(n)(y) | Real Estate | 8/7/24 | 2,675 | 0.3 | 1.9 | ||||||||||||||||||||
| Imagine Communications Corp, Common Stock |
(g)(n) | Media & Entertainment | 33,034 | 3.8 | 2.9 | |||||||||||||||||||||
| JHC Acquisition LLC, Common Stock |
(g)(n) | Capital Goods | 483 | 0.5 | 0.3 | |||||||||||||||||||||
| Jones Apparel Holdings, Inc., Common Stock |
(g)(n) | Consumer Durables & Apparel | 5,451 | 0.9 | — | |||||||||||||||||||||
| JSS Holdings Ltd, Net Profits Interest |
(g)(n) | Capital Goods | 40 | — | 0.4 | |||||||||||||||||||||
| JW Aluminum Co, Common Stock |
(f)(g)(n)(y) | Materials | 1,474 | 0.0 | — | |||||||||||||||||||||
| JW Aluminum Co, Preferred Stock |
(f)(g)(y) | Materials | 12.5% PIK (12.5% Max PIK) | 2/15/28 | 8,404 | 98.6 | 92.8 | |||||||||||||||||||
| KKR BPT Holdings Aggregator LLC, Membership Interest |
(g)(l)(n)(z) | Diversified Financials | N/A | 17.6 | — | |||||||||||||||||||||
| MB Precision Holdings LLC, Class A—2 Units |
(n)(p)(y) | Capital Goods | 1,426,110 | 0.5 | — | |||||||||||||||||||||
| MB Precision Holdings LLC, Preferred Stock |
(n)(p)(y) | Capital Goods | 8,952,623 | 1.9 | — | |||||||||||||||||||||
| Micronics Filtration Holdings Inc, Common Stock |
(g)(n)(y) | Capital Goods | 53,073 | 0.6 | — | |||||||||||||||||||||
| Micronics Filtration Holdings Inc, Preferred Stock, Series A |
(g)(n)(y) | Capital Goods | 55 | 0.6 | — | |||||||||||||||||||||
| Micronics Filtration Holdings Inc, Preferred Stock, Series B |
(g)(n)(y) | Capital Goods | 23 | 0.2 | — | |||||||||||||||||||||
| Micronics Filtration Holdings Inc, Preferred Stock, Series B PIK |
(e)(g)(y) | Capital Goods | 3.0% PIK (3.0% Max PIK) | 3/31/24 | 112,780 | — | — | |||||||||||||||||||
| Micronics Filtration Holdings Inc, Preferred Stock, Series C PIK |
(e)(g)(y) | Capital Goods | 7.5% PIK (7.5% Max PIK) | 3/31/24 | 54,000 | — | — | |||||||||||||||||||
| Mood Media Corp, Common Stock |
(g)(n)(y) | Media & Entertainment | 16,243,967 | 11.8 | — | |||||||||||||||||||||
| NBG Home, Common Stock |
(g)(n) | Consumer Durables & Apparel | 1,903 | 2.6 | — | |||||||||||||||||||||
| Nine West Holdings Inc, Common Stock |
(g)(n) | Consumer Durables & Apparel | 5,451 | 6.5 | — | |||||||||||||||||||||
| One Call Care Management Inc, Common Stock |
(g)(n)(y) | Insurance | 4,370,566,806 | 3.0 | 2.0 | |||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock A |
(g)(n)(y) | Insurance | 466,194 | 32.3 | 22.8 | |||||||||||||||||||||
| One Call Care Management Inc, Preferred Stock B |
(g)(y) | Insurance | 9.0% PIK (9.0% Max PIK) | 10/25/29 | 9,615,247 | 9.8 | 10.2 | |||||||||||||||||||
| Petroplex Acidizing Inc, Preferred Stock A |
(g)(y) | Energy | 2.0%, 0.0% PIK (2.0% Max PIK) | 24,398,755 | 4.3 | — | ||||||||||||||||||||
| Petroplex Acidizing Inc, Warrant |
(g)(n)(y) | Energy | 12/15/26 | 8 | — | — | ||||||||||||||||||||
| Polyconcept North America Inc, Class A—1 Units |
(g)(n) | Household & Personal Products | 29,376 | 2.9 | 2.1 | |||||||||||||||||||||
| Proserv Acquisition LLC, Class A Common Units |
(g)(l)(n)(y) | Energy | 2,635,005 | 33.5 | 8.8 | |||||||||||||||||||||
| Proserv Acquisition LLC, Class A Preferred Units |
(g)(l)(n)(y) | Energy | 837,780 | 5.4 | 9.5 | |||||||||||||||||||||
| Ridgeback Resources Inc, Common Stock |
(f)(l)(n) | Energy | 324,954 | 2.0 | 1.1 | |||||||||||||||||||||
| Sequential Brands Group Inc., Common Stock |
(g)(x) | Consumer Durables & Apparel | 206,664 | 2.8 | 0.0 | |||||||||||||||||||||
| Sorenson Communications LLC, Common Stock |
(f)(n) | Telecommunication Services | 46,163 | — | 34.0 | |||||||||||||||||||||
| SSC (Lux) Limited S.a r.l., Common Stock |
(g)(l)(n) | Health Care Equipment & Services | 113,636 | 2.3 | 3.5 | |||||||||||||||||||||
| Stuart Weitzman Inc, Common Stock |
(g)(n) | Consumer Durables & Apparel | 5,451 | — | — | |||||||||||||||||||||
| Sungard Availability Services Capital Inc, Common Stock |
(f)(g)(n) | Software & Services | 44,857 | 3.1 | 1.6 | |||||||||||||||||||||
| Sweet Harvest Foods Management Co, Warrant |
(g)(i)(n) | Food & Staples Retailing | 2,883,007 | — | 0.7 | |||||||||||||||||||||
| ThermaSys Corp, Common Stock |
(e)(f)(g)(n)(y) | Capital Goods | 17,383,026 | 10.2 | — | |||||||||||||||||||||
| ThermaSys Corp, Preferred Stock |
(g)(n)(y) | Capital Goods | 1,529 | 1.7 | — | |||||||||||||||||||||
See notes to unaudited consolidated financial statements.
12
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| Portfolio Company(a) |
Footnotes | Industry |
Rate(b) | Floor(b) | Maturity | Number of Shares |
Amortized Cost |
Fair Value(d) |
||||||||||||||||||||||
| Towergate, Ordinary Shares |
(g)(l)(n) | Insurance | 16,450 | $ | — | $ | — | |||||||||||||||||||||||
| Towergate, Ordinary Shares |
(g)(l)(n) | Insurance | 116,814 | 0.2 | 0.2 | |||||||||||||||||||||||||
| Towergate, Preferred Stock |
(g)(l)(n) | Insurance | 6,113,719 | 9.1 | 9.3 | |||||||||||||||||||||||||
| Trace3 Inc, Common Stock |
(g)(n) | Software & Services | 19,312 | 0.2 | 0.7 | |||||||||||||||||||||||||
| Versatile Processing Group Inc, Class A—2 Units |
(f)(n) | Materials | 3,637,500 | 3.6 | 0.1 | |||||||||||||||||||||||||
| Warren Resources Inc, Common Stock |
(g)(n) | Energy | 113,515 | 0.5 | 0.2 | |||||||||||||||||||||||||
| Z Gallerie LLC, Common Stock |
(g)(n)(y) | Retailing | 1,862,460 | 0.7 | — | |||||||||||||||||||||||||
| Zeta Interactive Holdings Corp, Preferred Stock, Series E—1 |
(g)(n) | Software & Services | 215,662 | 1.7 | 2.2 | |||||||||||||||||||||||||
| Zeta Interactive Holdings Corp, Preferred Stock, Series F |
(g)(n) | Software & Services | 196,151 | 1.7 | 3.2 | |||||||||||||||||||||||||
| Zeta Interactive Holdings Corp, Warrant |
(g)(n) | Software & Services | 4/20/27 | 29,422 | — | 0.0 | ||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
| Total Equity/Other |
627.3 | 428.4 | ||||||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||||||||
| TOTAL INVESTMENTS—229.1% |
$ | 7,827.8 | 6,623.7 | |||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| LIABILITIES IN EXCESS OF OTHER ASSETS—(129.1%) |
(3,732.7 | ) | ||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
| NET ASSETS—100% |
$ | 2,891.0 | ||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||
Foreign currency forward contracts
| Foreign Currency |
Settlement Date |
Counterparty |
Amount
and |
US$ Value at Settlement Date |
US$ Value at June 30, 2020 |
Unrealized Appreciation (Depreciation) |
||||||||||||||||
| GBP |
10/13/2021 | JP Morgan Chase Bank | £ | 3.4 Sold | $ | 4.6 | $ | 4.2 | $ | 0.4 | ||||||||||||
| AUD |
10/17/2022 | JP Morgan Chase Bank | A$ | 3.0 Sold | 2.1 | 2.1 | 0.0 | |||||||||||||||
| GBP |
1/11/2023 | JP Morgan Chase Bank | £ | 7.0 Sold | 9.4 | 8.7 | 0.7 | |||||||||||||||
| GBP |
1/11/2023 | JP Morgan Chase Bank | £ | 1.9 Sold | 2.9 | 2.4 | 0.5 | |||||||||||||||
| GBP |
1/11/2023 | JP Morgan Chase Bank | £ | 1.7 Sold | 2.6 | 2.1 | 0.5 | |||||||||||||||
| GBP |
1/11/2023 | JP Morgan Chase Bank | £ | 3.4 Sold | 4.8 | 4.2 | 0.6 | |||||||||||||||
| GBP |
1/11/2023 | JP Morgan Chase Bank | £ | 1.4 Sold | 1.9 | 1.7 | 0.2 | |||||||||||||||
| EUR |
7/17/2023 | JP Morgan Chase Bank | € | 1.3 Sold | 1.7 | 1.5 | 0.2 | |||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
$ | 30.0 | $ | 26.9 | $ | 3.1 | ||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | Security may be an obligation of one or more entities affiliated with the named company. |
| (b) | Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of June 30, 2020, the three-month London Interbank Offered Rate, or LIBOR or “L”, was 0.30%, the Euro Interbank Offered Rate, or EURIBOR, was (0.42)%, Canadian Dollar Offer Rate, or CDOR, was 0.56% and the U.S. Prime Lending Rate, or Prime, was 3.25%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment. Variable rate securities with no floor rate use the respective benchmark rate in all cases. |
| (c) | Denominated in U.S. dollars unless otherwise noted. |
| (d) | Fair value determined by the Company’s board of directors (see Note 8). |
See notes to unaudited consolidated financial statements.
13
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| (e) | Security or portion thereof held within Locust Street Funding LLC and is pledged as collateral supporting the amounts outstanding under the term loan facility with JPMorgan Chase Bank, N.A. (see Note 9). |
| (f) | Security or portion thereof held within Race Street Funding LLC. Security is available as collateral to support the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9). |
| (g) | Security or portion thereof is pledged as collateral supporting the amounts outstanding under the Senior Secured Revolving Credit Facility (see Note 9). |
| (h) | Security or portion thereof held within FS KKR MM CLO 1 LLC (see Note 9). |
| (i) | Security or portion thereof held within CCT Tokyo Funding LLC and pledged as collateral supporting the amounts outstanding under the revolving credit facility with Sumitomo Mitsui Banking Corporation (see Note 9). |
| (j) | Security or portion thereof held within CCT Dublin Funding Limited. |
| (k) | Position or portion thereof unsettled as of June 30, 2020. |
| (l) | The investment is not a qualifying asset under the Investment Company Act of 1940, as amended. A business development company may not acquire any asset other than qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of June 30, 2020, 75.4% of the Company’s total assets represented qualifying assets. |
| (m) | Listed investments may be treated as debt for GAAP or tax purposes. |
| (n) | Security is non-income producing. |
| (o) | Security held within IC American Energy Investments, Inc., a wholly-owned subsidiary of the Company. |
| (p) | Security held within FSIC Investments, Inc., a wholly-owned subsidiary of the Company. |
| (q) | Security held within IC Arches Investments, LLC, a wholly-owned subsidiary of the Company. |
| (r) | Not used. |
| (s) | Security held within CCT Holdings, LLC, a wholly-owned subsidiary of the Company. |
| (t) | Security held within CCT Holdings II, LLC, a wholly-owned subsidiary of the Company. |
| (u) | Not used. |
| (v) | Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding. |
| (w) | Asset is on non-accrual status. |
| (x) | Security is classified as Level 1 or Level 2 in the Company’s fair value hierarchy (see Note 8). |
See notes to unaudited consolidated financial statements.
14
Table of Contents
FS KKR Capital Corp.
Unaudited Consolidated Schedule of Investments (continued)
As of June 30, 2020
(in millions, except share amounts)
| (y) | Under the Investment Company Act of 1940, as amended, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2020, the Company held investments in portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an affiliated person for the six months ended June 30, 2020: |
| Portfolio Company |
Fair Value at December 31, 2019 |
|||||||||||||||||||||||||||||||||||||||