FS KKR Capital Corp. reported its financial results for the second quarter of 2025, revealing a net investment income of $173 million, or $0.62 per share, compared to $215 million, or $0.77 per share, for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net investment income of $360 million, or $1.29 per share, down from $427 million, or $1.53 per share, in the prior year. The decline in income is attributed to lower investment income, particularly from interest and paid-in-kind income, as certain assets were placed on non-accrual status during the quarter.

Total investment income for the second quarter was $398 million, a decrease from $439 million in the same quarter of 2024. The company’s operating expenses increased slightly to $225 million from $224 million year-over-year, with interest expenses rising to $125 million compared to $115 million in the previous year. The total net assets at the end of the quarter stood at $6.141 billion, down from $6.707 billion at the end of 2024, reflecting a decrease in net asset value per share from $23.64 to $21.93.

In terms of strategic developments, FS KKR Capital Corp. has maintained its focus on senior secured loans, which constituted 59% of its investment portfolio as of June 30, 2025. The company’s total investments at fair value reached $13.648 billion, up from $13.490 billion at the end of 2024. The portfolio included a mix of senior secured loans, subordinated debt, and asset-based finance, with a notable increase in the fair value of investments in the Credit Opportunities Partners JV, LLC, which rose to $1.632 billion.

The company also reported significant changes in its financing arrangements, with total senior securities outstanding amounting to $8.022 billion as of June 30, 2025. The asset coverage ratio was reported at 177%, indicating compliance with regulatory requirements. Additionally, FS KKR Capital Corp. entered into a third amended and restated senior secured revolving credit agreement in July 2025, allowing for borrowings of up to $4.7 billion, with an option for additional commitments.

Looking ahead, FS KKR Capital Corp. plans to continue its strategy of generating current income and long-term capital appreciation through investments in middle-market U.S. companies. The company has declared a regular quarterly distribution of $0.70 per share, which will be paid on or about October 2, 2025. The timing and amount of future distributions will depend on various factors, including market conditions and the company’s financial performance.

About FS KKR Capital Corp

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