FS Investments Energy BDC Reports Third Quarter 2016 Financials
FS Energy and Power Fund, a non-traded business development company sponsored by FS Investments – formerly Franklin Square, announced its operating results for the quarter ended September 30, 2016. The company will hold a conference call to discuss the results at 3:30 p.m. EST on Monday, November 14, 2016.
“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 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.”
As previously reported by The DI Wire, FSEP expects to close its public offering to new investors in mid-to-late November 2016, due to the pace of capital raising, subject to market conditions.
Financial Highlights for the Quarter Ended September 30, 2016:
• 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
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 strategies represented 80 percent of the portfolio by fair value, including 58 percent in direct originations and 22 percent in opportunistic investments. Broadly syndicated/other investments represented 20 percent 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 percent, compared to 9.6 percent as of September 30, 2015.
• Non-accruals represented 4.5 percent of the investment portfolio based on fair value
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. 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.
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. 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.
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