FS KKR Q3 Net Investment Income Rises to $0.46 a Share

FS KKR Capital Corp. reported net investment income of $0.46 per share for the quarter ended Sept. 30, up from $0.44 in the prior quarter, according to results the business development company furnished to the Securities and Exchange Commission on Thursday.

• Net investment income: $0.46 per share ($127 million), vs. $0.44 in the second quarter
• Adjusted net investment income: $0.46 per share, vs. $0.43
• Earnings per share: $0.26, vs. a $0.13 loss in the prior quarter
• Net asset value: $18.28 per share as of Sept. 30, vs. $18.30 on June 30
• Investment activity: $335 million of purchases vs. $442 million of sales and repayments
• Debt-to-equity: 127%, unchanged from June 30

The Philadelphia- and New York-based company, which trades on the New York Stock Exchange under the ticker FSK, said total investments at fair value were $11.3 billion at quarter-end, with 63.2% in senior secured securities.

Distributions and buybacks

FSK’s board previously declared a fourth-quarter distribution of $0.44 per share, payable on or about Dec. 24 to holders of record Dec. 16, and a special distribution of $0.20 per share, payable on or about Dec. 15 to holders of record Dec. 1. The special payout represents a portion of estimated accumulated spillback income, the company said. It paid a third-quarter distribution of $0.44 per share.

During the third quarter the company repurchased about six million common shares at a weighted average price of $11.24, totaling about $69 million, Chief Executive Officer and Chairman Michael C. Forman said in the release. From Oct. 1 through Oct. 30 it bought another 1,546,162 shares at an average of $10.88, about $17 million, under the board-authorized repurchase program.

Portfolio and liquidity

New investment fundings were $335 million in the quarter, with sales and repayments of $442 million, for net investment activity of about minus $107 million. Non-accrual investments were 3.4% of the portfolio at fair value, down from 3.8% on June 30.

FSK reported cash, cash equivalents and foreign currency of $111 million and said about $3.2 billion was available under financing arrangements, subject to borrowing-base and other limits. About 73% of its $6.3 billion in total debt was unsecured.

Sources: FS KKR Exhibit 99.1 (SEC), FS KKR Form 8-K (SEC), PR Newswire