FS Investment’s Energy BDC Reports Fourth Quarter and Full Year 2016 Financial Results

FS Energy & Power Fund, a publicly registered non-traded business development company sponsored by FS Investments (formerly Franklin Square Capital Partners), announced its operating results for the quarter and year ended December 31, 2016.

Financial Highlights for the Fourth Quarter 2016

● Net investment income of $0.13 per share, compared to $0.17 per share for the fourth quarter of 2015

● Net increase (decrease) in net assets resulting from operations of $0.43 per share, compared to ($0.96) per share for the fourth quarter of 2015.

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

Financial Highlights for 2016

● Net investment income of $0.57 per share, compared to $0.67 per share for 2015

● Net increase (decrease) in net assets resulting from operations of $1.84 per share, compared to ($1.51) per share for 2015.

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

Portfolio Highlights

● As of December 31, 2016, the fair value of FSEP’s investment portfolio was approximately $3.9 billion.

● Committed approximately $334 million and $892 million to direct originations during the quarter and year ended December 31, 2016, respectively, of which 60 percent and 53 percent were in senior secured debt (first and second lien senior secured loans and senior secured bonds), respectively.

● FSEP’s portfolio consisted of investments in 84 portfolio companies as of December 31, 2016.

● Core investment strategies represented 79 percent of the portfolio by fair value as of December 31, 2016, including 57 percent in direct originations and 22 percent in opportunistic investments. Broadly syndicated/other investments represented 21 percent of the portfolio by fair value as of December 31, 2016.

● Gross portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets) was 10.2 percent as of December 31, 2016, compared to 9.8 percent as of December 31, 2015.

● Two investments were on non-accrual as of December 31, 2016, representing less than 0.1 percent of the investment portfolio based on fair value.

FSEP closed its offering to new investors in November 2016.

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. The company closed its continuous public offering in November 2016 after raising approximately $4.3 billion in investor equity.

FSEP is advised by FS Investment Advisor LLC, an affiliate of FS Investments, and is sub-advised by GSO / Blackstone Debt Funds Management LLC, an affiliate of GSO Capital Partners LP. GSO, with approximately $93.3 billion in assets under management, is the credit platform of Blackstone, one of the world’s leading managers of alternative investments.

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