EX-99.1 2 ex99-1.htm PRESS RELEASE

 

FS Energy and Power Fund 8-K

 

Exhibit 99.1

 

 

FOR IMMEDIATE RELEASE

 

FSEP Reports Third Quarter 2016 Financial Results

 

PHILADELPHIA, PA, November 10, 2016 – FS Energy and Power Fund (FSEP), a business development company (BDC) focused primarily on investing in the debt and income-oriented equity securities of privately-held U.S. companies in the energy and power industry, announced its operating results for the quarter ended September 30, 2016. FSEP will hold a conference call to discuss these results at 3:30 p.m. Eastern Time on Monday, November 14, 2016. Information for those interested in participating on the call can be found below.

“Energy credit markets benefitted from generally stable commodity prices and rising inflows to high yield and bank loan mutual funds during the third quarter of 2016,” said Michael C. Forman, Chairman and Chief Executive Officer of FSEP.  “We are pleased with FSEP’s third quarter performance and remain optimistic about our ability to capitalize on new investment opportunities that will generate long-term returns for our investors.”

Anticipated Close of the Public Offering

Based on and subject to market conditions and the pace of capital raising, FSEP expects to close its public offering to new investors in mid-to-late November 2016.

Financial Highlights for the Quarter Ended September 30, 20161

•Net investment income of $0.13 per share, compared to $0.17 per share for the quarter ended September 30, 2015
•Net increase (decrease) in net assets resulting from operations of $0.35 per share, compared to $(0.81) per share for the quarter ended September 30, 2015
•Net change in unrealized appreciation (depreciation) of $0.50 per share, compared to $(0.69) per share for the quarter ended September 30, 2015
•Paid regular cash distributions to shareholders totaling approximately $0.18 per share
•Committed approximately $220.6 million to direct originations during the quarter ended September 30, 2016

Portfolio Highlights as of September 30, 2016

•The fair value of FSEP’s investments was approximately $3.7 billion
•FSEP’s portfolio consisted of investments in 86 portfolio companies
•Core investment strategies2 represented 80% of the portfolio by fair value, including 58% in direct originations and 22% in opportunistic investments. Broadly syndicated/other investments represented 20% of the portfolio by fair value
•Gross portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets) was 9.9%, compared to 9.6% as of September 30, 20153
•Non-accruals represented 4.5% of the investment portfolio based on fair value4

 
 

 

Quarterly Shareholder Conference Call

FSEP will host a conference call at 3:30 p.m. (Eastern Time) on Monday, November 14, 2016, to discuss its third quarter 2016 results. All interested parties are welcome to participate. You can access the conference call by dialing (877) 443-2408 and using conference ID 5573373 approximately 10 minutes prior to the call. 

A replay of the call will be available for a period of 30 days following the call by visiting FSEP’s website at www.fsinvestments.com. 

About FSEP

FSEP is a publicly registered, non-traded BDC sponsored by FS Investments. FSEP focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. FSEP’s investment objectives are to generate current income and long-term capital appreciation. FSEP is advised by FS Investment Advisor, LLC, an affiliate of FS Investments, and is sub-advised by GSO. GSO, with approximately $89.3 billion in assets under management as of September 30, 2016, is the credit platform of Blackstone. For more information, please visit www.fsinvestments.com.

About FS Investments

FS Investments is a leading asset manager that designs alternative investments to help institutional, advisory and individual investors build better portfolios. Its solutions provide access to alternative asset classes and top managers through a spectrum of structures, including business development companies, closed-end credit funds and operating companies. The firm is dedicated to setting industry standards for investor-centric service, education and transparency.

FS Investments was founded in 2007 as Franklin Square Capital Partners. It is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages six funds with over $18 billion in assets under management as of June 30, 2016, and co-manages an operating company. Its affiliated broker-dealer, FS Investment Solutions, LLC (member FINRA/SIPC), distributes its offerings.

Visit www.fsinvestments.com to learn more.

Other Information

The information in this announcement is summary information only and should be read in conjunction with FSEP’s quarterly report on Form 10-Q for the quarter ended September 30, 2016, which FSEP filed with the Securities and Exchange Commission (SEC) on November 9, 2016 as well as FSEP’s other reports filed with the SEC. A copy of FSEP’s quarterly report on Form 10-Q for the quarter ended September 30, 2016 and FSEP’s other reports filed with the SEC can be found under FSEP’s “Investments” page at www.fsinvestments.com and on the SEC’s website at www.sec.gov.

Please note that certain financial figures may have been rounded.

Certain Information About Distributions

The determination of the tax attributes of FSEP’s distributions is made annually as of the end of its fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of FSEP’s distributions for a full year. FSEP intends to update shareholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to shareholders will be reported to shareholders annually on Form 1099-DIV.

The payment of future distributions on FSEP’s common shares is subject to the discretion of its board of trustees and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. 

 
 

 

FSEP may fund its cash distributions to shareholders from any sources of funds legally available to it, including expense reimbursements from FS Investments, as well as offering proceeds, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets and dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies. FSEP has not established limits on the amount of funds it may use from available sources to make distributions. There can be no assurance that FSEP will be able to pay distributions at a specific rate or at all.

Forward-Looking Statements

This announcement may contain certain forward-looking statements, including statements with regard to future events or the future performance or operations of FSEP. Words such as “believes,” “expects,” “projects” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings FSEP makes with the SEC.

This announcement contains summaries of certain financial and statistical information about FSEP. The information contained in this announcement is summary information that is intended to be considered in the context of FSEP’s SEC filings and other public announcements that FSEP may make, by press release or otherwise, from time to time. FSEP undertakes no duty or obligation to update or revise the information contained in this announcement. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. Investors should not view the past performance of FSEP, or information about the market, as indicative of FSEP’s future results.

 

 

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1 The per share data was derived by using the weighted average shares of FSEP’s common shares outstanding during the applicable period. Per share numbers may not sum due to rounding.

 

2 See FSEP’s quarterly report on Form 10-Q for the quarter ended September 30, 2016 for a description of FSEP’s investment strategies.

 

3 Gross portfolio yield, prior to leverage, represents the expected annualized yield to be generated on the income-producing assets in FSEP’s investment portfolio based on the composition of the portfolio as of the applicable date. Gross portfolio yield, prior to leverage, does not represent an actual investment return to shareholders.

 

4 Interest income is recorded on an accrual basis. See FSEP’s quarterly report on Form 10-Q for the quarter ended September 30, 2016 for a description of FSEP’s revenue recognition policy.