Recent market events have impacted the financial markets and significantly disrupted U.S. and global economies, including energy markets.
Given current market conditions, the Board of Trustees for FS Energy & Power Fund, in consultation with FS/EIG Advisor, has determined to make the changes noted below in order to retain capital, enhance the fund’s liquidity and support its portfolio companies.
The board has determined to make the following changes:
- Suspend the payment of distributions following the payment of the regular monthly distribution for March, payable on or around March 31. FS/EIG and the board expect the suspension to remain in place until market conditions and the fund’s operations are supportive.
- Terminate the previously announced tender offer for the quarter ended March 31, 2020 and suspend the fund’s share repurchase program. As a result, no shares will be repurchased in the current tender offer. FS/EIG and the board will assess the ability to recommence the quarterly tender in the future based on market conditions and the fund’s operations.
FS/EIG Advisor currently expects to defer the payment of 75% of the management fees to which it is entitled from the Fund commencing with the fee due for the quarter ended March 31, 2020. FS/EIG Advisor will assess market conditions and the Fund’s financial operations, among other considerations, when determining if and when to terminate the deferral and/or to collect all or part of the deferred fees in the future.
- Fund commentary
- On-demand video
- Distribution notice
- Tender suspension notice
- March 2020 DRP 8-K filing
- FSEP fund page
CONFIDENTIAL. FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR INVESTOR USE. An investment in FS Energy and Power Fund involves a high degree of risk and may be considered speculative. Investors are advised to consider the investment objectives, risks, charges and expenses of FSEP carefully. Investors should read and carefully consider all information found in FSEP’s reports filed with the U.S. Securities and Exchange Commission. FSEP closed to new investors in November 2016.