FS KKR Capital Corp.

Good morning, ladies and gentlemen. Welcome to SSKKR Capital Corp's third quarter 2021 earnings conference call. Your lines will be in a listen-only mode during the 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 how to enter the queue. Please note this conference is being recorded. At this time, Robert Ponhead, Investor Relations, will proceed with the instructions and the introductions. Mr. Pon, you may begin.

Thank you. Good morning and welcome to FSKKR Capital Corp's third quarter 2021 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 November 8th, 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 September 30th, 2021. 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 are subject to risks and uncertainties that could affect FSK or the economy generally. 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 third quarter earnings release that was filed with the SEC on November 8th, 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 Foreman, 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'll now turn the call over to Michael.

Thank you, Robert, and good morning, everyone. Welcome to FSKKR Capital Corp's Third Quarter 2021 Earnings Conference Call. The third quarter represented the first full quarter of operational results for the newly combined FSK, and I am pleased to announce there was a positive quarter across multiple metrics. As demonstrated by our results, we continue to see strength and stability in the business from both an investing and earnings perspective. During the quarter, our investment team originated approximately $2.8 billion of new investments. We out-earned our target 9% annualized dividend yield on our net asset value, and we experienced a 1% increase in our net asset value. Since the establishment of our current dividend policy, The third quarter of 2021 was the seventh consecutive quarter that we have over-earned our target annualized yield. During the third quarter, our GAAP net investment income was 71 cents per share. Our adjusted net income was 64 cents per share, which was three cents per share above our public guidance of 61 cents per share at the end of the second quarter. Our net investment income during the quarter was driven by continued strong originations and positive portfolio company performance. From a liquidity perspective, we ended the quarter with approximately $2.5 billion of available liquidity with no meaningful near-term debt maturities. Additionally, in October, we accessed the public debt markets, issuing $1.25 billion of unsecured bonds at a weighted average coupon of 2.54 percent, further enhancing our liquidity and funding profile. As previously announced, our board authorized a $100 million stock buyback program, which went into effect at the end of the third quarter. Through October 29th, 2021, we have repurchased approximately $3.3 million of shares under this program. Based on our third quarter financial results, which exceeded our public guidance, our board has declared a distribution of 62 cents per share for the fourth quarter, as compared to our original expectation of a $0.60 per share dividend. This distribution is consistent with our variable dividend policy, which seeks to provide shareholders with a 9 percent annualized dividend yield on our net asset value over time. Looking forward to the fourth quarter, we expect our adjusted net investment income to be $0.61 per share. While Stephen will cover the details associated with our forward guidance later in the call, from a summary standpoint, as we begin to focus both on the fourth quarter as well as 2022, I believe FSK is well positioned to continue building on the themes highlighted in our recent Investor Day presentation, including moving closer to our target leverage range, optimizing our capital structure, and transitioning a portion of our non-yielding assets into yielding assets. And with that, I'll turn the call over to Dan and the team to provide additional color on the market and the quarter.