Business Context and Reporting Period
FS KKR Capital Corp. filed a Form 8-K on January 15, 2019, reporting preliminary estimates for the year ended December 31, 2018. The Company is a Maryland corporation with principal executive offices in Philadelphia, Pennsylvania. These figures are unaudited and subject to final financial closing procedures.
Key Financial Metrics
| Metric | Value (as of Dec 31, 2018) |
|---|---|
| Net Asset Value (NAV) per Share | $7.82 - $7.86 |
| Net Investment Income per Share | $0.80 - $0.83 |
| Aggregate Debt Outstanding | Approx. $3.4 billion |
| Cash and Cash Equivalents | Approx. $105 million |
| Receivables (Net of Payables) | Approx. $138 million |
| Common Shares Outstanding | 531,478,739 |
The net investment income includes amounts attributable to the acquired portfolio of Corporate Capital Trust, Inc. ("CCT") for the 12-day period following the acquisition on December 19, 2018. The investment adviser did not earn subordinated income incentive fees for the portion of the quarter prior to the CCT acquisition.
Material Changes
The filing highlights the acquisition of Corporate Capital Trust, Inc. on December 19, 2018, which contributed to the reported net investment income for the year. The filing does not provide specific comparative financial data for the prior year to quantify percentage changes in revenue or profit.
Guidance, Outlook, and Risks
The report contains forward-looking statements regarding future performance, which are subject to inherent uncertainties. Management noted that actual results may differ materially due to economic changes, operational disruptions, terrorism, natural disasters, regulatory changes, and stock price volatility. The Company explicitly stated it undertakes no obligation to update these forward-looking statements. The preliminary data has not been audited or reviewed by the independent registered public accounting firm.
Investor Verification Checklist
- Verify the final audited financial results for the year ended December 31, 2018, once the closing procedures are complete.
- Confirm the final Net Asset Value per share and Net Investment Income per share against the preliminary estimates provided.
- Review the detailed impact of the Corporate Capital Trust, Inc. acquisition on the full-year financial statements.
- Monitor the Company's debt levels relative to the reported $3.4 billion aggregate outstanding.