FS KKR Capital Corp. (NYSE:FSK) Q1 2023 Earnings Call Transcript

Dan Pietrzak: Good morning, Melissa. I would note a couple of things; I mean I think we are happy that we completed the $100 million. I think we’ve been pretty consistent to the market that we intend to complete these when they get sort of put in place. I think we have done more than most. We probably repurchased almost $500 million of shares over the last five years, amongst the various BDCs that were public at one time or another. So clearly, this will be something that we have on the top of our mind or are considering on a go-forward basis, in line with what we’ve done in the past. I think we’re happy to also provide the special dividend, right, which is kind of capital for the benefit of shareholders. I think we’ve talked on the prior call about the $0.70 between the 64 and the six supplemental, I think we continue to feel good about that.

That was $2.80 per share. And then with this additional 15, you’re up to $2.95, that’s 11.7% on sort of NAV. So we think the income potential is good. But I think that special was something we were very happy we were able to do this quarter.

Melissa Wedel: Yes, certainly. A follow-up question on funding, you’ve got a few unsecured maturities in 2024 given the current funding split between revolvers and fixed rate debt and sort of your outlook for interest rates remaining higher than perhaps implied by the forward curve. How are you thinking about your funding profile? And how are you — how should we expect you guys to manage that going forward? Thanks.

Dan Pietrzak: Yes. And Ryan or Steve might want to add to this as well, but I think we’re very happy with all the unsecureds we did in advance of the beginning of ’22. We even did a deal, and it was January, February ’22 and sort of decent size. So I think we’re quite happy about no near-term maturities. Obviously, we have plenty of un-drawn capital on the revolver just to take those out if we needed to, right? That said, I think we intend to continue to access those markets. We’ll continue to talk to investors. We want to be a frequent issuer. But at the same time, I think we’re going to be prudent, and we’re going to look at other markets we’ve accessed in the past as well, whether they be sort of bi-laterals or CLOs, so et cetera. So I think we got a bunch of tools at our disposal. We’ve got a lot of comfort for where we sit on the un-drawn piece of the revolver, but our intention is to be active in that market.

Melissa Wedel: Thank you.

Operator: Thank you. And I would now like to turn the conference back over to Dan Pietrzak for any further remarks.

Dan Pietrzak: Well, thank you, everyone, for your time today. As always, we’re available for any follow-up questions. Have a good weekend. Let’s speak next quarter.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.