FS KKR Capital Corp.

Good morning, ladies and gentlemen. Welcome to the FSKKR Capital Corp's second quarter 2024 earnings conference call. Your lines will be in a listen-only 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, Anna Kleinhen, Head of Investor Relations, will proceed with the introductions. Ms. Kleinhen, you may begin.

Thank you. Good morning, and welcome to FSKTR Capital Corp's second quarter 2024 earnings conference call. Please note that FSKTR Capital Corp may be referred to as FSK, the funds, 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 yesterday. 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 June 30th, 2024. 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 second quarter earnings release that was filed with the SEC on August 6, 2024. 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, Chief Executive Officer and Chairman, Dan Pietrzak, Chief Investment Officer and Co-President, Brian Gerson, Co-President, and Stephen Lilly, Chief Financial Officer. Also joining us on the call today are Co-Chief Operating Officers Drew O'Toole and Ryan Wilson. I'll now turn the call over to Michael.

Thank you, Anna, and good morning, everyone. Thank you all for joining us today for FSK's second quarter 2024 earnings call. During the second quarter, FSK generated net investment income totaling 77 cents per share, and adjusted net investment income totaling $0.75 per share, as compared to our public guidance of approximately $0.74 and $0.71 per share, respectively. As we look at our borrowers' operating performance for the quarter, we continue to see strong results as most companies have adjusted to the higher base rate environment. We did, however, see some stress on investments placed on our accrual in the prior quarters. Our workout investment teams have continued working toward resolutions for these portfolio companies. And the team will go into more detail on this later in the call. From a liquidity perspective, we ended the quarter with approximately $4.7 billion of available liquidity. Our board has declared a total third quarter distribution of 70 cents per share consisting of our base distribution of 64 cents per share and a supplemental distribution of 6 cents per share. We continue to believe investors will be able to receive a minimum of $2.90 per share of total distributions in 2024, which equates to a 12.1% yield on our June 30, 2024 net asset value of $23.95 per share and a yield of approximately 15% based upon our recent share price. As Dan will discuss in more detail during his comments, the market remains competitive as all lenders have experienced some amount of spread compression. During the first half of 2024, the investment team originated $2.7 billion of investments, of which $1.3 billion more originated during the second quarter. From a forward-looking perspective, despite the expectations the Fed may begin reducing interest rates as early as September, we believe the elevated rate environment, coupled with our still significant level of spillover income, will continue to drive FSK's earnings and provide support for the attractive base and supplemental distributions we are paying our shareholders. And with that, I'll turn the call over to Dan and the team to provide additional color on the market and the quarter.