As the global pandemic impacted the financial markets and significantly disrupted U.S. and global economies, including the energy markets, FS Energy and Power Fund (FSEP or the Fund) announced the suspension of regular distributions following the payment of the March 31, 2020 distribution. In addition, FSEP’s quarterly share repurchase program was suspended in March in order to retain capital, enhance the Fund’s liquidity and support its portfolio companies.
The Fund’s regular cash distributions to shareholders remain suspended. However, beginning in the second quarter of 2020, the Fund’s board of trustees and FS/EIG Advisor have evaluated the Fund’s ability to pay distributions on a quarterly basis based on market conditions and the Fund’s financial operations.
The Fund’s board declared a distribution of $0.03 per share each on June 29, paid to shareholders on July 10, and September 29, payable to shareholders on October 12, 2020. FSEP’s board and the Advisor will continue to evaluate the Fund’s ability to pay any distributions on a quarterly basis through the balance of 2020.
There can be no assurance that the Fund will be able to pay distributions in the future. The timing and amount of any future distributions to shareholders are subject to applicable legal restrictions and the sole discretion of the Fund’s board.
Quarterly share repurchase program
FS/EIG Advisor and the Fund’s board also expect the share repurchase program will be suspended until such time that the Fund’s board and FS/EIG Advisor believe that, among other things, market conditions and the financial condition of the Fund support the resumption of repurchase offers and under what terms.
There can be no assurance that the Fund will recommence its share repurchase program in the future.
- Portfolio and performance update: webinar replay
- Fund commentary
- On-demand video
- Distribution notice
- Tender suspension notice
- 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.