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Franklin Square’s Energy and Power Fund Announces the Close of its Public Offering

FS Energy and Power Fund, a non-traded business development company sponsored by Franklin Square Capital Partners, announced its operating results for the quarter and year ended December 31, 2015.

“While the energy market presents unique challenges relative to the broader market, we are taking advantage of the recent credit market selloff to improve FSEP’s overall credit profile by moving up the capital structure,” commented Michael C. Forman, chief executive officer of FSEP. “Given our experience and expertise, along with our sub-adviser, GSO/Blackstone, we remain confident that FSEP is well-positioned to capitalize on the current market environment.”

On March 9, 2016, company’s board of trustees approved the closing of FSEP’s public offering to new investors, which is anticipated to occur near the end of the second quarter or the beginning of the third quarter of 2016.

Financial Highlights for the Quarter Ended December 31, 2015:

• Net investment income of $0.17 per share, compared to $0.20 per share for the quarter ended December 31, 2014.

• Net decrease in net assets resulting from operations of $0.96 per share, compared to a net decrease in net assets resulting from operations of $0.98 per share for the quarter ended December 31, 2014.

• Paid regular cash distributions to shareholders totaling approximately $0.18 per share.

Financial Highlights for the Year Ended December 31, 2015:

• Net investment income of $0.67 per share, compared to $0.74 per share for the year ended December 31, 2014.

• Net decrease in net assets resulting from operations of $1.51 per share, compared to a net decrease in net assets resulting from operations of $0.72 per share for the year ended December 31, 2014.

• Paid regular cash distributions to shareholders totaling approximately $0.71 per share.

Portfolio Highlights:

• As of December 31, 2015, the fair value of FSEP’s investments was approximately $3.1 billion.

• Purchases totaled approximately $1.2 billion during the year ended December 31, 2015, of which 75 percent were in senior secured debt (first lien, second lien and senior secured bonds).

• FSEP’s portfolio consisted of investments in 90 portfolio companies as of December 31, 2015.

• Core investment strategies represented 83 percent of the portfolio by fair value as of December 31, 2015, including 64 percent in direct originations and 19 percent in opportunistic investments. Broadly syndicated/other investments represented 17 percent of the portfolio by fair value as of December 31, 2015.

• FSEP’s estimated gross annual portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets) was 9.8 percent as of December 31, 2015, compared to 9.1 percent as of December 31, 2014.

• Non-accruals represented 0.1 percent of the investment portfolio based on fair value as of December 31, 2015.

As previously reported by The DI Wire, FS Energy and Power Fund will hold a conference call to discuss these results at 1:30 p.m. Eastern Time on Monday, March 14, 2016.

In order to participate, interested parties should dial (877) 443-2408 at least 10 minutes prior to the beginning of the conference call and provide the confirmation code 51801821 when prompted. An audio archive of the call will be available for replay. The link to the audio archive can be found under FSEP’s “Literature” page at www.franklinsquare.com, and will be available for a period of 30 days following the call.

FS Energy and Power Fund focuses primarily on investing in the debt and income-oriented equity securities of privately held U.S. companies in the energy and power industry. The company is advised by FS Investment Advisor LLC, an affiliate of Franklin Square, and is sub-advised by GSO. GSO, with approximately $79.1 billion in assets under management as of December 31, 2015, is the credit platform of Blackstone.

Franklin Square is a manager of alternative investment funds and introduced the industry’s first non-traded business development company. As of September 30, 2015, the firm managed approximately $17 billion in total assets, including $15.7 billion in BDC assets, making it the largest manager of BDCs.

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