•
Mar 31, 2020

FS KKR Q1 2020 Earnings Report

FS KKR announced its financial results for the first quarter of 2020, along with a $250 million unsecured notes issuance and an amendment to its senior secured revolving credit facility. A distribution for the second quarter was also declared.

Key Takeaways

FS KKR Capital Corp. reported its financial results for the quarter ended March 31, 2020, noting the impacts of COVID-19. Despite the challenges, the company focused on supporting portfolio companies, maintaining liquidity, and enhancing operational flexibility. An unsecured notes offering of $250 million was completed, and the board declared a second-quarter distribution of $0.15 per share.

FS KKR team worked closely with portfolio companies amid COVID-19 impacts.

Accessed capital to maintain a strong liquidity position.

Amended financing agreements to enhance operating cushion.

Declared a second quarter 2020 distribution of $0.15 per share.

Total Revenue
$179M
Previous year: $195M
-8.2%
EPS
$0.76
Previous year: $0.72
+5.6%
Available Liquidity
$1.2B

FS KKR

FS KKR

Forward Guidance

FS KKR is navigating the challenges posed by COVID-19 by supporting its portfolio companies and maintaining a strong liquidity position. The company has taken steps to enhance its operational flexibility through financing agreement amendments.

Positive Outlook

  • The FS KKR team has responded by working closely with our portfolio companies
  • Accessing capital to maintain our strong liquidity position
  • Amending our financing agreements to enhance our operating cushion
  • After giving effect to our recently completed unsecured notes offering, we have approximately $1.2 billion of available liquidity to support our existing portfolio companies
  • Taking advantage of new investment opportunities

Challenges Ahead

  • The first quarter of 2020 was an extraordinary time in the operating and financial world as companies of all sizes experienced the far-reaching impacts of COVID-19
  • This is a difficult time for everyone
  • Risks associated with possible disruption in FSK’s operations or the economy generally due to terrorism, natural disasters or pandemics such as COVID-19
  • Changes in the economy
  • Future changes in laws or regulations and conditions in FSK’s operating area