FS KKR Capital Corp.

Good morning, ladies and gentlemen. Welcome to FSKKR Capital Corp's fourth quarter 2020 earnings conference call. Your lines will be in a listening mode during remarks by FSK's management. At the conclusion of the company's remarks, we will begin the question and answer session, at which time I will give you instructions on entering the queue. Please note that this conference is being recorded. At this time, Robert Pond, Head of Investor Relations, will proceed with the introduction. Mr. Pond, you may begin.

Thank you. Good morning and welcome to FSKKR Capital Corp's fourth quarter 2020 earnings conference call. Please note that FSKKR Capital Corp may be referred to as FSK, the fund, or the company throughout the call. Today's conference call is being recorded and an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued on March 1st, 2021. In addition, FSK has posted on its website a presentation containing supplemental financial information with respect to its portfolio and financial performance for the quarter ended December 31st, 2020. A link to today's webcast and the presentation is available on the investor relations section of the company's website under events and presentations. Please note that this call is the property of FSK. Any unauthorized rebroadcast of this call in any form is strictly prohibited. Today's conference call includes forward-looking statements, and we ask that you refer to FSK's most recent filings with the SEC for important factors and risks that could cause actual results or outcomes to differ materially from these statements. FSK does not undertake to update its forward-looking statements unless required to do so by law. In addition, this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures can be found in FSK's fourth quarter earnings release that was filed with the SEC on March 1st, 2021. Non-GAAP information should be considered supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly named measures reported by other companies. To obtain copies of the company's latest SEC filings, please visit FSK's website. Speaking on today's call will be Michael Forman, Chairman and Chief Executive Officer, Dan Pietrzak, Chief Investment Officer and Co-President, Brian Gerson, Co-President, and Stephen Lilly, Chief Financial Officer. Also joining us on the phone are Co-Chief Operating Officers Drew O'Toole and Ryan Wilson. I will now turn the call over to Michael.

Thank you, Robert, and welcome everyone to FSKKR Capital Corp's Fourth Quarter 2020 Earnings Conference Call. Given the enormity of the events which occurred during 2020, we continue to feel humble as we gather to discuss our financial and operating results. We also acknowledge that while there are compelling reasons for many in the world to have hope for a return to normalcy, the world never will be the same for those whose lives have been directly impacted by the effects of COVID-19. The fourth quarter of 2020 was, without question, a positive quarter for FSK. During the quarter, our investment teams originated approximately $613 million of new investments, we experienced an increase in our net asset value, and we again out-earned our target 9 percent annualized dividend yield on our net asset value. In addition to these successes, we announced the proposed merger of FSK and FSKR. We amended our senior credit facility to extend its maturity by one year, and we accessed the public markets, becoming only the third BDC in the history of the industry to raise $1 billion or more and a single unsecured debt offering. We accessed this debt capital on extremely attractive terms, thereby not only fortifying our balance sheet, but also locking in an attractive long-term cost of capital. From an operating perspective, our adjusted net investment income was 72 cents per share for the fourth quarter, which was 12 cents per share above our quarterly dividend of 60 cents per share, and also 8 cents per share above our public guidance at the end of the third quarter. From a liquidity perspective, we ended the quarter with approximately $1.4 billion of available liquidity with no meaningful near-term debt maturities. Looking forward, we expect our first quarter net investment income to approximate 61 cents a share. As such, our board has declared a distribution of 60 cents per share for the first quarter, which equates to an annualized yield of 9.6 percent on our net asset value of 25.2 cents as of December 31st, 2020. While we continue to believe a 9 percent annualized dividend yield is achievable, we acknowledge that should competitive pressures and spread compression occur to the point that such a yield is not achievable, then our investing focus will continue to be protection of principle first with yield second. From a merger perspective, We anticipate the proxy solicitation period will begin this month and will conclude at each of FSK's and FSKR's shareholder meetings scheduled for May 21st, 2021. We would expect the proposed merger to close shortly after receiving approval by FSK and FSKR shareholders and other customary closing conditions. Assuming the timeline remains as scheduled, we expect the proposed merger to close during the month of June. As we turn to 2021, we do so not only with gratitude for the many accomplishments of our team over the last year, but with enthusiasm for what is to come as we plan to combine FSK and FSKR. This combination will create a single BDC with a size, scale, market reach, balance sheet strength, and investing discipline to become a premier provider of capital to companies operating in the upper middle market. And with that, I'll turn the call over to Dan and the team to provide additional color on the market and the quarter.