SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* MAHER JAMES R (Last) (First) (Middle) C/O BLACKROCK KELSO CAPITAL 40 EAST 52ND STREET (Street) NEW YORK NY 10022 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol BlackRock Kelso Capital CORP [ [N/A] ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X Director 10% Owner X Officer (give title below) X Other (specify below) Chief Executive Officer / C.E.O. of investment adviser
	3. Date of Earliest Transaction (Month/Day/Year) 01/02/2007
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) X Form filed by One Reporting Person Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock, par value $0.001 per share	01/02/2007		A		8,333.333(1)	A	$0(1)	8,333.333	D
Common Stock, par value $0.001 per share								463,211.784	I	By BlackRock Kelso Capital Super Holdings LLC(2)
Common Stock, par value $0.001 per share								7,450.405	I	By BlackRock Kelso Capital Advisors LLC(3)
Common Stock, par value $0.001 per share								109,745.561	I	By James R. Maher Trust, U/T/A dated 1/17/1997(4)
Common Stock, par value $0.001 per share								28,576.604	I	By Elizabeth A. Maher(5)
Common Stock, par value $0.001 per share								27,842.623	I	By Caroline C. Maher(6)
Common Stock, par value $0.001 per share								27,842.623	I	By Elizabeth H. Maher(6)
Common Stock, par value $0.001 per share								20,716.288	I	By James R. Maher, Jr.(6)
Common Stock, par value $0.001 per share								27,842.623	I	By Emily L. Maher(6)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. Restricted Shares granted by BlackRock Kelso Capital Advisors LLC ("Advisor") pursuant to a Restricted Stock Agreement, dated January 2, 2007, based on an estimated net asset value per share of Common Stock of the Issuer at December 31, 2006 of $15.00, subject to adjustment based on actual net asset value per share at such date when approved by the board of directors of the Issuer. Restricted Shares vest as to approximately one third of the Restricted Shares on each of the first, second and third anniversaries of January 2, 2007.

2. Owned indirectly through the Reporting Person's direct ownership of interests in BlackRock Kelso Capital Super Holdings LLC ("Super"), which owns Common Stock of the Issuer through its indirect ownership of interests in BlackRock Kelso Capital Holding LLC ("Holding").

3. Owned indirectly through the Reporting Person's direct ownership of interests in Advisor, which owns Common Stock of the Issuer through its indirect ownership of interests in Holding.

4. The Reporting has a pecuniary interest in James R. Maher Family Trust, U/T/A dated 1/17/1997, which has a direct ownership interest in Super. See Footnote 2.

5. The Reporting Person is the spouse of Elizabeth A. Maher, who has a direct ownership interest in Super. See Footnote 2. The Reporting Person disclaims beneficial ownership of the shares beneficially owned by such person.

6. The Reporting Person is the father of Caroline C. Maher, Elizabeth H. Maher, James R. Maher, Jr. and Emily L. Maher, each of whom has a direct ownership interest in Super and Advisor. See Footnotes 2 and 3. The Reporting Person disclaims beneficial ownership of the shares beneficially owned by such persons.

	James R. Maher, by Farzad Samimi, Attorney-in-Fact	01/04/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
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