Franklin Square’s Energy Fund Announces 2Q16 Earnings and Plans to Terminate Offering

FS Energy and Power Fund, a business development company sponsored by Franklin Square, announced its operating results for the quarter ended June 30, 2016.

FSEP will hold a conference call to discuss these results at 11:30 a.m. Eastern Time on Thursday, August 11, 2016. Information for those interested in participating on the call can be found below.

“We are pleased with our second quarter performance and our ability to invest during periods of market volatility,” commented Michael Forman, chairman and chief executive officer of FSEP. “We believe FSEP’s focus on investing in a diverse set of energy assets and senior secured debt should help the fund preserve capital and generate long-term returns for our investors.”

The company is planning to close its public offering to new investors near the end of the third quarter of 2016, due to “market conditions and the pace of capital raising.” Since its continuous public offering went effective in 2011, the company has sold $4.2 billion in common shares.

Financial Highlights for the Second Quarter Include:

· Net investment income of $0.14 per share, compared to $0.17 per share for the quarter ended June 30, 2015

· Net increase in net assets resulting from operations of $1.14 per share, compared to $0.20 per share for the quarter ended June 30, 2015

· Net change in unrealized appreciation (depreciation) of $1.04 per share, compared to $0.15 per share for the quarter ended June 30, 2015

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

Portfolio Highlights:

· The fair value of FSEP’s investments was approximately $3.5 billion

· FSEP’s portfolio consisted of investments in 87 portfolio companies

· Committed approximately $177.5 million to direct originations

· Core investment strategies represented 82 percent of the portfolio by fair value, including 62 percent in direct originations and 20 percent in opportunistic investments. Broadly syndicated/other investments represented 18 percent of the portfolio by fair value.

· Gross portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets) was 9.7 percent, compared to 9.4 percent as of June 30, 2015

· Non-accruals represented 4.0 percent of the investment portfolio based on fair value

Quarterly Shareholder Conference Call:

FSEP will host a conference call at 11:30 a.m. (Eastern Time) on Thursday, August 11, 2016, to discuss its second 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 52257312 approximately 10 minutes prior to the call.

A replay of the call will be available beginning shortly after the end of the call for a period of 30 days following the call by visiting FSEP’s “Literature” page at www.franklinsquare.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. The company is advised by FS Investment Advisor, LLC, an affiliate of Franklin Square, and is sub-advised by GSO, the credit platform of Blackstone.

For more Franklin Square-related news, visit their directory listing here.