v3.25.1
Financing Arrangements
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Financing Arrangements Financing Arrangements
Prior to June 14, 2019, in accordance with the 1940 Act, the Company was allowed to borrow amounts such that its asset coverage, calculated pursuant to the 1940 Act, was at least 200% after such borrowing. Effective June 15, 2019, the Company’s asset coverage requirement applicable to senior securities was reduced from 200% to 150%. As of March 31, 2025, the aggregate amount outstanding of the senior securities issued by the Company was $8,009. As of March 31, 2025, the Company’s asset coverage was 182%.
The following tables present summary information with respect to the Company’s outstanding financing arrangements as of March 31, 2025 and December 31, 2024. For additional information regarding these financing arrangements, see the notes to the Company’s audited consolidated financial statements contained in its annual report on Form 10-K for the year ended December 31, 2024. Any significant changes to the Company’s financing arrangements during the three months ended March 31, 2025 are discussed below.
As of March 31, 2025
(Unaudited)
ArrangementType of ArrangementRateAmount
Outstanding		Amount
Available		Maturity Date
Ambler Credit Facility(2)
Revolving Credit Facility
SOFR+2.25%(1)
$174 $26 November 13, 2029
CCT Tokyo Funding Credit Facility(2)
Revolving Credit Facility
SOFR+1.90% - 2.05%(1)(3)
127 — June 2, 2026
Darby Creek Credit Facility(2)
Revolving Credit Facility
SOFR+2.90%(1)
525 — February 26, 2027
Meadowbrook Run Credit Facility(2)
Revolving Credit Facility
SOFR+1.95%(1)
260 40 November 22, 2028
Senior Secured Revolving Credit Facility(2)
Revolving Credit Facility
SOFR+1.75% - 1.88%(1)(4)
1,997(5)
2,569(6)
October 31, 2028
3.400% Notes due 2026(7)
Unsecured Notes3.40%1,000 — January 15, 2026
2.625% Notes due 2027(7)
Unsecured Notes2.63%400 — January 15, 2027
3.250% Notes due 2027(7)
Unsecured Notes3.25%500 — July 15, 2027
3.125% Notes due 2028(7)
Unsecured Notes3.13%750 — October 12, 2028
7.875% Notes due 2029(7)
Unsecured Notes7.88%400 — January 15, 2029
6.875% Notes due 2029(7)(8)
Unsecured Notes6.88%600 — August 15, 2029
6.125% Notes due 2030(7)(8)
Unsecured Notes6.13%700 — January 15, 2030
CLO-1 Notes(2)(9)
Collateralized Loan Obligation
3.01% - SOFR+1.85%(1)
196 — January 15, 2031
CLO-2 Notes(2)(10)
Collateralized Loan Obligation
SOFR+1.48% - 2.15%
380 — April 15, 2037
Total$8,009 $2,635 
___________
(1)The benchmark rate is subject to a 0% floor.
(2)The carrying amount outstanding under the facility approximates its fair value.
(3)As of March 31, 2025, there was $85 term loan outstanding at SOFR+1.90% and $42 revolving commitment outstanding at SOFR+2.05%.
(4)The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. In addition to the spread over the benchmark rate, a credit spread adjustment of 0.10% and 0.0326% is applicable to borrowings in U.S. dollars and pounds sterling, respectively.
(5)Amount includes borrowing in Euros, pounds sterling and Australian dollars. Euro balance outstanding of €485 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.08 as of March 31, 2025 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £416 has been converted to U.S dollars at an exchange rate of £1.00 to $1.29 as of March 31, 2025 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD60 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.62 as of March 31, 2025 to reflect total amount outstanding in U.S. dollars.
(6)The amount available for borrowing under the Senior Secured Revolving Credit Facility is reduced by any standby letters of credit issued under the Senior Secured Revolving Credit Facility. As of March 31, 2025, $29 of such letters of credit have been issued.
(7)As of March 31, 2025, the fair value of the 3.400% Notes, the 2.625% Notes, the 3.250% Notes, the 3.125% Notes, the 7.875% Notes, the 6.875% Notes and the 6.125% Notes was approximately $987, $382, $479, $683, $424, $609 and $720, respectively. These valuations are considered Level 2 valuations within the fair value hierarchy.
(8)The carrying value of the 6.875% Notes and 6.125% Notes as of March 31, 2025 includes a $9 and $20 increase, respectively, as a result of an effective hedge accounting relationship. See Note 7 for additional information.
(9)As of March 31, 2025, there were $125.7 of Class A-1R notes outstanding at SOFR+1.85%, $20.5 of Class A-2R notes outstanding at SOFR+2.25%, $32.4 of Class B-1R notes outstanding at SOFR+2.60% and $17.4 of Class B-2R notes outstanding at 3.011%. In addition to the spread over the benchmark rate, a credit spread adjustment of 0.26161% is applicable to Class A-1R, Class A-2R and Class B-1R notes outstanding.
(10)As of March 31, 2025, there were $160.0 of Class A-1 notes outstanding at SOFR+1.48%, $100.0 of Class A-1L notes outstanding at SOFR+1.48%, $30.0 of Class A-1W notes outstanding at SOFR+1.48%, $20.0 of Class A-2L notes outstanding at SOFR+1.60%, $30.0 of Class B notes outstanding at SOFR+1.75% and $40.0 of Class C notes outstanding at SOFR+2.15%.
As of December 31, 2024
ArrangementType of ArrangementRateAmount
Outstanding		Amount
Available		Maturity Date
Ambler Credit Facility(2)
Revolving Credit Facility
SOFR+2.25%(1)
$133 $67 November 13, 2029
CCT Tokyo Funding Credit Facility(2)
Revolving Credit Facility
SOFR+1.90% - 2.05%(1)(3)
147 — June 2, 2026
Darby Creek Credit Facility(2)
Revolving Credit Facility
SOFR+2.65%(1)
500 250 February 26, 2027
Meadowbrook Run Credit Facility(2)
Revolving Credit Facility
SOFR+2.70%(1)
200 100 November 22, 2026
Senior Secured Revolving Credit Facility(2)
Revolving Credit Facility
SOFR+1.75% - 1.88%(1)(4)
628(5)
3,946(6)
October 31, 2028
4.125% Notes due 2025(7)
Unsecured Notes4.13%470 — February 1, 2025
4.250% Notes due 2025(7)
Unsecured Notes4.25%475 — February 14, 2025
8.625% Notes due 2025(7)
Unsecured Notes8.63%250 — May 15, 2025
3.400% Notes due 2026(7)
Unsecured Notes3.40%1,000 — January 15, 2026
2.625% Notes due 2027(7)
Unsecured Notes2.63%400 — January 15, 2027
3.250% Notes due 2027(7)
Unsecured Notes3.25%500 — July 15, 2027
3.125% Notes due 2028(7)
Unsecured Notes3.13%750 — October 12, 2028
7.875% Notes due 2029(7)
Unsecured Notes7.88%400 — January 15, 2029
6.875% Notes due 2029(7)(8)
Unsecured Notes6.88%600 — August 15, 2029
6.125% Notes due 2030(7)(8)
Unsecured Notes6.13%700 — January 15, 2030
CLO-1 Notes(2)(9)
Collateralized Loan Obligation
3.01% - SOFR+1.85%(1)
232 — January 15, 2031
Total$7,385 $4,363 
___________
(1)The benchmark rate is subject to a 0% floor.
(2)The carrying amount outstanding under the facility approximates its fair value.
(3)As of December 31, 2024, there was $98 term loan outstanding at SOFR+1.90% and $49 revolving commitment outstanding at SOFR+2.05%.
(4)The spread over the benchmark rate is determined by reference to the ratio of the value of the borrowing base to the aggregate amount of certain outstanding indebtedness of the Company. In addition to the spread over the benchmark rate, a credit spread adjustment of 0.10% and 0.0326% is applicable to borrowings in U.S. dollars and pounds sterling, respectively.
(5)Amount includes borrowing in Euros, Canadian dollars, pounds sterling and Australian dollars. Euro balance outstanding of €455 has been converted to U.S. dollars at an exchange rate of €1.00 to $1.04 as of December 31, 2024 to reflect total amount outstanding in U.S. dollars. Canadian dollar balance outstanding of CAD3 has been converted to U.S dollars at an exchange rate of CAD1.00 to $0.69 as of December 31, 2024 to reflect total amount outstanding in U.S. dollars. Pounds sterling balance outstanding of £165 has been converted to U.S dollars at an exchange rate of £1.00 to $1.25 as of December 31, 2024 to reflect total amount outstanding in U.S. dollars. Australian dollar balance outstanding of AUD4 has been converted to U.S dollars at an exchange rate of AUD1.00 to $0.62 as of December 31, 2024 to reflect total amount outstanding in U.S. dollars.
(6)The amount available for borrowing under the Senior Secured Revolving Credit Facility is reduced by any standby letters of credit issued under the Senior Secured Revolving Credit Facility. As of December 31, 2024, $21 of such letters of credit have been issued.
(7)As of December 31, 2024, the fair value of the 4.125% Notes, the 4.250% Notes, the 8.625% Notes, the 3.400% Notes, the 2.625% Notes, the 3.250% Notes, 3.125% Notes, the 7.875% Notes, the 6.875% Notes and the 6.125% Notes was approximately $469, $474, $251, $981, $379, $474, $680, $426, $615 and $700, respectively. These valuations are considered Level 2 valuations within the fair value hierarchy.
(8)As of December 31, 2024, the carrying values of the 6.875% Notes and 6.125% Notes include a $15 and $0 increase, respectively, as a result of an effective hedge accounting relationship. See Note 7 for additional information.
(9)As of December 31, 2024, there were $161.8 of Class A-1R notes outstanding at SOFR+1.85%, $20.5 of Class A-2R notes outstanding at SOFR+2.25%, $32.4 of Class B-1R notes outstanding at SOFR+2.60% and $17.4 of Class B-2R notes outstanding at 3.011%.
For the three months ended March 31, 2025 and 2024, the components of total interest expense for the Company’s financing arrangements were as follows:
Three Months Ended March 31,
20252024
Arrangement(1)
Direct Interest ExpenseAmortization of Deferred Financing Costs and Discount / PremiumTotal Interest ExpenseDirect Interest ExpenseAmortization of Deferred Financing Costs and Discount / PremiumTotal Interest Expense
Ambler Credit Facility(2)
$3 $0 $3 $3 $0 $3 
CCT Tokyo Funding Credit Facility(2)
2 0 2 5 0 5 
Darby Creek Credit Facility(2)
9 1 10 14 1 15 
Meadowbrook Run Credit Facility(2)
4 0 4 5 0 5 
Senior Secured Revolving Credit Facility(2)
27 1 28 28 1 29 
4.625% Notes due 2024
— — — 5 0 5 
1.650% Notes due 2024
— — — 2 1 3 
4.125% Notes due 2025
2 0 2 5 1 6 
4.250% Notes due 2025
2 (1)1 5 (2)3 
8.625% Notes due 2025
4 0 4 5 0 5 
3.400% Notes due 2026
8 2 10 9 2 11 
2.625% Notes due 2027
3 0 3 2 0 2 
3.250% Notes due 2027
4 0 4 4 0 4 
3.125% Notes due 2028
6 1 7 6 0 6 
7.875% Notes due 2029
9 0 9 8 — 8 
6.875% Notes due 2029(3)
11 1 12 — — — 
6.125% Notes due 2030(3)
11 0 11 — — — 
CLO-1 Notes3 0 3 6 0 6 
CLO-2 Notes0 0 0 — — — 
Total$108 $5 $113 $112 $4 $116 
______________________
(1)Borrowings of each of the Company’s wholly-owned, special-purpose financing subsidiaries are considered borrowings of the Company for purposes of complying with the asset coverage requirements applicable to BDCs under the 1940 Act.
(2)Direct interest expense includes the effect of non-usage fees.
(3)Direct interest expense includes the impact of interest rate swaps.

The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the three months ended March 31, 2025 were $7,829 and 5.50%, respectively. As of March 31, 2025, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 5.48%.
The Company’s average borrowings and weighted average interest rate, including the effect of non-usage fees, for the three months ended March 31, 2024 were $8,214 and 5.43%, respectively. As of March 31, 2024, the Company’s weighted average effective interest rate on borrowings, including the effect of non-usage fees, was 5.35%.
Under its financing arrangements, the Company has made certain representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar financing arrangements. The Company was in compliance with all covenants required by its financing arrangements as of March 31, 2025 and December 31, 2024.
Meadowbrook Run Credit Facility
On January 22, 2025, the Company and Meadowbrook Run LLC, or Meadowbrook Run, a wholly-owned special purpose financing subsidiary of the Company, entered into the Seventh Amendment to Loan and Servicing Agreement, or the Seventh Amendment, amending that certain Loan and Servicing Agreement originally dated as of November 22, 2019, or the LSA, with Morgan Stanley Senior Funding, Inc., as administrative agent, Wells Fargo Bank, National Association, as collateral agent, account
bank and collateral custodian, and the lenders from time to time party thereto. The Seventh Amendment provides for an extension of the revolving period to February 22, 2025.
On March 27, 2025, Meadowbrook Run entered into the Eighth Amendment to Loan and Servicing Agreement, or the Eighth Amendment, amending the LSA with Morgan Stanley Senior Funding, Inc., as administrative agent, Wells Fargo Bank, National Association as collateral agent, account bank and collateral custodian, and the lenders from time to time party thereto. The Eighth Amendment, among other things, (i) extends the revolving period to November 22, 2026, (ii) extends the final maturity date to November 22, 2028, (iii) decreases the applicable margin (a) during the revolving period to 1.95% per annum and (b) during the amortization period to 2.45% per annum, (iv) reduces the interest rate on the interest only loan to 0.00% per annum, (v) adjusts the unused commitment fee to 0.65% and (vi) extends the call protection period for one year after the closing date of the Eighth Amendment.
KKR - FSK CLO 2 LLC
On March 28, 2025, KKR – FSK CLO 2 LLC, or the Issuer, a Delaware limited liability company and a wholly owned and consolidated special purpose financing subsidiary of the Company, completed a $380 term debt securitization, or the CLO Transaction or the CLO-2 Notes. The debt offered by the Issuer in the CLO Transaction, or the Debt, is secured by a diversified portfolio of the Issuer consisting primarily of middle market loans and participation interests in middle market loans and may also include some broadly syndicated loans and permitted non-loan assets. The CLO Transaction was executed through a private placement of: (i) $160 of Class A-1 Senior Secured Floating Rate Notes, or the Class A-1 Notes, which bear interest at Term SOFR for a tenor of three months plus 1.48%; (ii) $100 of Class A-1L Senior Secured Floating Rate Loans, which bear interest at Term SOFR plus 1.48% and which are convertible to Class A-1 Notes; (iii) $30 of Class A-1W Senior Secured Floating Rate Loans, which bear interest at Term SOFR plus 1.48% and which are convertible to Class A-1 Notes; (iv) $0 of Class A-2 Senior Secured Floating Rate Notes, or the Class A-2 Notes, which bear interest at Term SOFR plus 1.60%; (v) $20 of Class A-2L Senior Secured Floating Rate Loans, which bear interest at Term SOFR plus 1.60% and which are convertible to Class A-2 Notes; (vi) $30 of Class B Senior Secured Floating Rate Notes, which bear interest at Term SOFR plus 1.75%; and (vii) $40 of Class C Secured Deferrable Floating Rate Notes, which bear interest at Term SOFR plus 2.15%. The Company has held 100% of the membership interests, or the Membership Interests, in the Issuer since the Issuer’s formation on January 15, 2025. The Membership Interests do not bear interest and had a nominal value of approximately $121.2 at closing of the CLO Transaction. The Debt is scheduled to mature on April 15, 2037. The Class-A1 Notes, the Class A-2 Notes and the Class B Senior Secured Floating Rate Notes were issued pursuant to an indenture, and the Class A-1L Senior Floating Rate Loans and Class A-2L Senior Secured Floating Rate Loans were issued pursuant to credit agreements.
8.625% Notes due 2024
On February 28, 2025, the Company issued a notice of redemption providing for the redemption of its 8.625% Notes due 2025, or the 8.625% Notes, in full on March 16, 2025, for 100% of the aggregate principal amount of the 8.625% Notes, plus the accrued and unpaid interest through, but excluding, March 16, 2025. All of the 8.625% Notes were redeemed in connection with the redemption.