FS Energy & Power Fund - FORM 10-Q - August 14, 2018

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EX-31.1 - EXHIBIT 31.1 - FS Energy & Power Fundtv500530_ex31-1.htm
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
​
FORM 10-Q
​
☒
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
​
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2018
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
​
COMMISSION FILE NUMBER: 814-00841
​
FS Energy and Power Fund
(Exact name of registrant as specified in its charter)
​
​
Delaware
​ ​
27-6822130
​
​
(State or other jurisdiction of
incorporation or organization)
​ ​
(I.R.S. Employer
Identification No.)
​
​
201 Rouse Boulevard
Philadelphia, Pennsylvania
​ ​
19112
​
​
(Address of principal executive office)
​ ​
(Zip Code)
 ​
Registrant’s telephone number, including area code: (215) 495-1150
​
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
​
Large accelerated filer ☐
 ​ ​
Accelerated filer ☐
 ​ ​
Non-accelerated filer ☒
 ​ ​
Smaller reporting company ☐
 ​
​ ​ ​ ​ ​ ​ ​
(Do not check if a
smaller reporting company)
​ ​
Emerging growth company ☐
 ​
If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
The issuer had 437,784,332 common shares of beneficial interest outstanding as of August 14, 2018.
​
​
TABLE OF CONTENTS
​ ​ ​
Page
​
PART I—FINANCIAL INFORMATION ​ ​ ​ ​ ​ ​ ​
ITEM 1.
FINANCIAL STATEMENTS
​
 ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ 1 ​ ​
​ ​ ​ ​ 2 ​ ​
​ ​ ​ ​ 3 ​ ​
​ ​ ​ ​ 4 ​ ​
​ ​ ​ ​ 5 ​ ​
​ ​ ​ ​ 19 ​ ​
​
​ ​ ​ ​ 42 ​ ​
​
​ ​ ​ ​ 57 ​ ​
​
​ ​ ​ ​ 58 ​ ​
PART II—OTHER INFORMATION ​ ​ ​ ​ ​ ​ ​
​
​ ​ ​ ​ 59 ​ ​
​
​ ​ ​ ​ 59 ​ ​
​
​ ​ ​ ​ 59 ​ ​
​
​ ​ ​ ​ 59 ​ ​
​
​ ​ ​ ​ 59 ​ ​
​
​ ​ ​ ​ 59 ​ ​
​
​ ​ ​ ​ 60 ​ ​
​ ​ ​ ​ 66 ​ ​
PART I—FINANCIAL INFORMATION
Item 1.
Financial Statements.
​
FS Energy and Power Fund
Consolidated Balance Sheets
(in thousands, except share and per share amounts)
​
​ ​ ​
June 30, 2018
(Unaudited)
​ ​
December 31,
2017
​
Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Investments, at fair value ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Non-controlled/unaffiliated investments (amortized cost—$2,903,746 and $3,490,683,
respectively)
​ ​ ​ $ 2,773,333 ​ ​ ​ ​ $ 3,281,536 ​ ​
Non-controlled/affiliated investments (amortized cost—$849,003 and $839,619, respectively)
​ ​ ​ ​ 673,652 ​ ​ ​ ​ ​ 715,169 ​ ​
Controlled/affiliated investments (amortized cost—$27,464 and $27,464, respectively)
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Total investments, at fair value (amortized cost—$3,780,213 and $4,357,766, respectively)
​ ​ ​ ​ 3,446,985 ​ ​ ​ ​ ​ 3,996,705 ​ ​
Cash
​ ​ ​ ​ 281,741 ​ ​ ​ ​ ​ 195,376 ​ ​
Receivable for investments sold and repaid
​ ​ ​ ​ 47,814 ​ ​ ​ ​ ​ 66,337 ​ ​
Interest receivable
​ ​ ​ ​ 40,498 ​ ​ ​ ​ ​ 51,293 ​ ​
Deferred financing costs
​ ​ ​ ​ 132 ​ ​ ​ ​ ​ 720 ​ ​
Reimbursement due from sponsor(1)
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 5,945 ​ ​
Prepaid expenses and other assets
​ ​ ​ ​ — ​ ​ ​ ​ ​ 55 ​ ​
Total assets
 ​ ​ ​ $ 3,817,170 ​ ​ ​ ​ $ 4,316,431 ​ ​
Liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Payable for investments purchased
​ ​ ​ $ 38,701 ​ ​ ​ ​ $ 88,033 ​ ​
Credit facilities payable (net of deferred financing costs of  $1,439 and $1,883, respectively)(2)
 ​ ​ ​ ​ 868,561 ​ ​ ​ ​ ​ 1,218,117 ​ ​
Shareholder distributions payable
​ ​ ​ ​ 8,361 ​ ​ ​ ​ ​ 10,938 ​ ​
Management fees payable
​ ​ ​ ​ 17,118 ​ ​ ​ ​ ​ 21,834 ​ ​
Administrative services expense payable
​ ​ ​ ​ 720 ​ ​ ​ ​ ​ 361 ​ ​
Interest payable
​ ​ ​ ​ 5,927 ​ ​ ​ ​ ​ 6,033 ​ ​
Trustees’ fees payable
​ ​ ​ ​ 184 ​ ​ ​ ​ ​ 252 ​ ​
Other accrued expenses and liabilities
​ ​ ​ ​ 3,819 ​ ​ ​ ​ ​ 4,821 ​ ​
Total liabilities
 ​ ​ ​ ​ 943,391 ​ ​ ​ ​ ​ 1,350,389 ​ ​
Commitments and contingencies ($28,104 and $28,104, respectively)(3) ​ ​ ​
Shareholders’ equity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Preferred shares, $0.001 par value, 50,000,000 shares authorized, none issued and outstanding
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Common shares, $0.001 par value, 700,000,000 shares authorized, 441,532,187 and 446,045,135 shares
issued and outstanding, respectively
​ ​ ​ ​ 442 ​ ​ ​ ​ ​ 446 ​ ​
Capital in excess of par value(4)
 ​ ​ ​ ​ 3,783,964 ​ ​ ​ ​ ​ 3,814,303 ​ ​
Accumulated undistributed net realized gains (losses) on investments and gain/loss on foreign currency(4)
 ​ ​ ​ ​ (565,823) ​ ​ ​ ​ ​ (487,379) ​ ​
Accumulated undistributed (distributions in excess of) net investment income(4)
 ​ ​ ​ ​ (11,576) ​ ​ ​ ​ ​ (247) ​ ​
Net unrealized appreciation (depreciation) on investments and unrealized gain/loss on foreign
currency
​ ​ ​ ​ (333,228) ​ ​ ​ ​ ​ (361,081) ​ ​
Total shareholders’ equity
 ​ ​ ​ ​ 2,873,779 ​ ​ ​ ​ ​ 2,966,042 ​ ​
Total liabilities and shareholders’ equity
 ​ ​ ​ $ 3,817,170 ​ ​ ​ ​ $ 4,316,431 ​ ​
Net asset value per common share at period end
​ ​ ​ $ 6.51 ​ ​ ​ ​ $ 6.65 ​ ​
​
(1)
See Note 4 for a discussion of expense reimbursements paid to the Company by its former investment adviser and affiliates.
​
(2)
See Note 8 for a discussion of the Company’s financing arrangements.
​
(3)
See Note 9 for a discussion of the Company’s commitments and contingencies.
​
(4)
See Note 5 for a discussion of the sources of distributions paid by the Company.
​
​
See notes to unaudited consolidated financial statements.
1
FS Energy and Power Fund
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share amounts)
​
​ ​ ​
Three Months Ended
June 30,
​ ​
Six Months Ended
June 30,
​
​ ​ ​
2018
​ ​
2017
​ ​
2018
​ ​
2017
​
Investment income ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
From non-controlled/unaffiliated investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Interest income
​ ​ ​ $ 62,957 ​ ​ ​ ​ $ 76,745 ​ ​ ​ ​ $ 129,337 ​ ​ ​ ​ $ 145,923 ​ ​
Paid-in-kind interest income
​ ​ ​ ​ 1,344 ​ ​ ​ ​ ​ 5,394 ​ ​ ​ ​ ​ 3,734 ​ ​ ​ ​ ​ 10,757 ​ ​
Fee income
​ ​ ​ ​ 910 ​ ​ ​ ​ ​ 6,541 ​ ​ ​ ​ ​ 7,875 ​ ​ ​ ​ ​ 30,363 ​ ​
From non-controlled/affiliated investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Interest income
​ ​ ​ ​ 12,279 ​ ​ ​ ​ ​ 9,842 ​ ​ ​ ​ ​ 23,797 ​ ​ ​ ​ ​ 24,865 ​ ​
Paid-in-kind interest income
​ ​ ​ ​ 582 ​ ​ ​ ​ ​ 3,462 ​ ​ ​ ​ ​ 1,211 ​ ​ ​ ​ ​ 6,322 ​ ​
Fee income
​ ​ ​ ​ — ​ ​ ​ ​ ​ 656 ​ ​ ​ ​ ​ 2,091 ​ ​ ​ ​ ​ 656 ​ ​
Total investment income
​ ​ ​ ​ 78,072 ​ ​ ​ ​ ​ 102,640 ​ ​ ​ ​ ​ 168,045 ​ ​ ​ ​ ​ 218,886 ​ ​
Operating expenses ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Management fees
​ ​ ​ ​ 17,118 ​ ​ ​ ​ ​ 22,688 ​ ​ ​ ​ ​ 35,416 ​ ​ ​ ​ ​ 45,073 ​ ​
Subordinated income incentive fees(1)
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 10,499 ​ ​
Administrative services expenses
​ ​ ​ ​ 802 ​ ​ ​ ​ ​ 799 ​ ​ ​ ​ ​ 1,595 ​ ​ ​ ​ ​ 1,607 ​ ​
Share transfer agent fees
​ ​ ​ ​ 650 ​ ​ ​ ​ ​ 674 ​ ​ ​ ​ ​ 1,293 ​ ​ ​ ​ ​ 1,408 ​ ​
Accounting and administrative fees
​ ​ ​ ​ 339 ​ ​ ​ ​ ​ 410 ​ ​ ​ ​ ​ 700 ​ ​ ​ ​ ​ 832 ​ ​
Interest expense(2)
 ​ ​ ​ ​ 14,162 ​ ​ ​ ​ ​ 11,571 ​ ​ ​ ​ ​ 28,269 ​ ​ ​ ​ ​ 21,806 ​ ​
Trustees’ fees
​ ​ ​ ​ 184 ​ ​ ​ ​ ​ 250 ​ ​ ​ ​ ​ 634 ​ ​ ​ ​ ​ 500 ​ ​
Other general and administrative expenses
​ ​ ​ ​ 900 ​ ​ ​ ​ ​ 984 ​ ​ ​ ​ ​ 1,833 ​ ​ ​ ​ ​ 2,109 ​ ​
Total operating expenses
​ ​ ​ ​ 34,155 ​ ​ ​ ​ ​ 37,376 ​ ​ ​ ​ ​ 69,740 ​ ​ ​ ​ ​ 83,834 ​ ​
Less: Expense reimbursement from sponsor(3)
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (18,220) ​ ​
Less: Expense reimbursement due to sponsor(3)
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 2,858 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 2,858 ​ ​
Net expenses
​ ​ ​ ​ 34,155 ​ ​ ​ ​ ​ 40,234 ​ ​ ​ ​ ​ 69,740 ​ ​ ​ ​ ​ 68,472 ​ ​
Net investment income
​ ​ ​ ​ 43,917 ​ ​ ​ ​ ​ 62,406 ​ ​ ​ ​ ​ 98,305 ​ ​ ​ ​ ​ 150,414 ​ ​
Realized and unrealized gain/loss ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net realized gain (loss) on investments: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Non-controlled/unaffiliated
​ ​ ​ ​ (10,564) ​ ​ ​ ​ ​ (46,654) ​ ​ ​ ​ ​ (78,444) ​ ​ ​ ​ ​ (77,515) ​ ​
Non-controlled/affiliated
​ ​ ​ ​ — ​ ​ ​ ​ ​ 852 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1,060 ​ ​
Net realized gain (loss) on foreign currency
​ ​ ​ ​ — ​ ​ ​ ​ ​ (2) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 1 ​ ​
Net change in unrealized appreciation (depreciation) on investments:
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Non-controlled/unaffiliated
​ ​ ​ ​ 37,667 ​ ​ ​ ​ ​ (87,590) ​ ​ ​ ​ ​ 78,734 ​ ​ ​ ​ ​ (60,355) ​ ​
Non-controlled/affiliated
​ ​ ​ ​ 15,882 ​ ​ ​ ​ ​ (77,870) ​ ​ ​ ​ ​ (50,901) ​ ​ ​ ​ ​ (99,465) ​ ​
Controlled/affiliated
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,531) ​ ​
Net change in unrealized gain (loss) on foreign
currency
​ ​ ​ ​ 19 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 20 ​ ​ ​ ​ ​ 52 ​ ​
Total net realized and unrealized gain (loss)
​ ​ ​ ​ 43,004 ​ ​ ​ ​ ​ (211,264) ​ ​ ​ ​ ​ (50,591) ​ ​ ​ ​ ​ (237,753) ​ ​
Net increase (decrease) in net assets resulting from operations
 ​ ​ ​ $ 86,921 ​ ​ ​ ​ $ (148,858) ​ ​ ​ ​ $ 47,714 ​ ​ ​ ​ $ (87,339) ​ ​
Per share information—basic and diluted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net increase (decrease) in net assets resulting from operations (Earnings per Share)
​ ​ ​ $ 0.20 ​ ​ ​ ​ $ (0.34) ​ ​ ​ ​ $ 0.11 ​ ​ ​ ​ $ (0.20) ​ ​
Weighted average shares outstanding
​ ​ ​ ​ 439,286,145 ​ ​ ​ ​ ​ 443,232,133 ​ ​ ​ ​ ​ 439,603,556 ​ ​ ​ ​ ​ 442,101,188 ​ ​
​
(1)
See Note 2 and Note 4 for a discussion of the methodology employed by the Company in calculating the subordinated income incentive fees.
​
(2)
See Note 8 for a discussion of the Company’s financing arrangements.
​
(3)
See Note 4 for a discussion of expense reimbursements payable to the Company by its former investment adviser and affiliates.
​
​
See notes to unaudited consolidated financial statements.
2
FS Energy and Power Fund
Unaudited Consolidated Statements of Changes in Net Assets
(in thousands)
​
​ ​ ​
Six Months Ended
June 30,
​
​ ​ ​
2018
​ ​
2017
​
Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net investment income
​ ​ ​ $ 98,305 ​ ​ ​ ​ $ 150,414 ​ ​
Net realized gain (loss) on investments and foreign currency
​ ​ ​ ​ (78,444) ​ ​ ​ ​ ​ (76,454) ​ ​
Net change in unrealized appreciation (depreciation) on investments
​ ​ ​ ​ 27,833 ​ ​ ​ ​ ​ (161,351) ​ ​
Net change in unrealized gain (loss) on foreign currency
​ ​ ​ ​ 20 ​ ​ ​ ​ ​ 52 ​ ​
Net increase (decrease) in net assets resulting from operations
​ ​ ​ ​ 47,714 ​ ​ ​ ​ ​ (87,339) ​ ​
Shareholder distributions(1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Distributions from net investment income
​ ​ ​ ​ (109,634) ​ ​ ​ ​ ​ (156,358) ​ ​
Net decrease in net assets resulting from shareholder distributions
​ ​ ​ ​ (109,634) ​ ​ ​ ​ ​ (156,358) ​ ​
Capital share transactions(2) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Reinvestment of shareholder distributions
​ ​ ​ ​ 61,430 ​ ​ ​ ​ ​ 93,968 ​ ​
Repurchases of common shares
​ ​ ​ ​ (91,773) ​ ​ ​ ​ ​ (52,796) ​ ​
Net increase (decrease) in net assets resulting from capital share transactions
​ ​ ​ ​ (30,343) ​ ​ ​ ​ ​ 41,172 ​ ​
Total increase (decrease) in net assets
​ ​ ​ ​ (92,263) ​ ​ ​ ​ ​ (202,525) ​ ​
Net assets at beginning of period
​ ​ ​ ​ 2,966,042 ​ ​ ​ ​ ​ 3,348,894 ​ ​
Net assets at end of period
​ ​ ​ $ 2,873,779 ​ ​ ​ ​ $ 3,146,369 ​ ​
Accumulated undistributed (distributions in excess of) net investment income(1)
 ​ ​ ​ $ (11,576) ​ ​ ​ ​ $ (19,682) ​ ​
​
​
(1)
See Note 5 for a discussion of the sources of distributions paid by the Company.
​
(2)
See Note 3 for a discussion of the Company’s common share transactions.
​
​
See notes to unaudited consolidated financial statements.
3
FS Energy and Power Fund
Unaudited Consolidated Statements of Cash Flows
(in thousands)
​
​ ​ ​
Six Months Ended
June 30,
​
​ ​ ​
2018
​ ​
2017
​
Cash flows from operating activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net increase (decrease) in net assets resulting from operations
​ ​ ​ $ 47,714 ​ ​ ​ ​ $ (87,339) ​ ​
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Purchases of investments
​ ​ ​ ​ (706,117) ​ ​ ​ ​ ​ (1,235,075) ​ ​
Paid-in-kind interest
​ ​ ​ ​ (4,945) ​ ​ ​ ​ ​ (17,079) ​ ​
Proceeds from sales and repayments of investments
​ ​ ​ ​ 1,216,246 ​ ​ ​ ​ ​ 754,124 ​ ​
Net realized (gain) loss on investments
​ ​ ​ ​ 78,444 ​ ​ ​ ​ ​ 76,455 ​ ​
Net change in unrealized (appreciation) depreciation on investments
​ ​ ​ ​ (27,833) ​ ​ ​ ​ ​ 161,351 ​ ​
Accretion of discount
​ ​ ​ ​ (6,075) ​ ​ ​ ​ ​ (12,391) ​ ​
Amortization of deferred financing costs
​ ​ ​ ​ 1,032 ​ ​ ​ ​ ​ 1,670 ​ ​
(Increase) decrease in receivable for investments sold and repaid
​ ​ ​ ​ 18,523 ​ ​ ​ ​ ​ (2,309) ​ ​
(Increase) decrease in interest receivable
​ ​ ​ ​ 10,795 ​ ​ ​ ​ ​ (4,365) ​ ​
(Increase) decrease in expense reimbursement due from sponsor(1)
 ​ ​ ​ ​ 5,945 ​ ​ ​ ​ ​ — ​ ​
(Increase) decrease in prepaid expenses and other assets
​ ​ ​ ​ 55 ​ ​ ​ ​ ​ (150) ​ ​
Increase (decrease) in payable for investments purchased
​ ​ ​ ​ (49,332) ​ ​ ​ ​ ​ 116,123 ​ ​
Increase (decrease) in management fees payable
​ ​ ​ ​ (4,716) ​ ​ ​ ​ ​ 1,833 ​ ​
Increase (decrease) in expense recoupment payable to sponsor(1)
 ​ ​ ​ ​ — ​ ​ ​ ​ ​ 2,858 ​ ​
Increase (decrease) in administrative services expense payable
​ ​ ​ ​ 359 ​ ​ ​ ​ ​ 14 ​ ​
Increase (decrease) in interest payable(2)
 ​ ​ ​ ​ (106) ​ ​ ​ ​ ​ 165 ​ ​
Increase (decrease) in trustees’ fees payable
​ ​ ​ ​ (68) ​ ​ ​ ​ ​ — ​ ​
Increase (decrease) in other accrued expenses and liabilities
​ ​ ​ ​ (1,002) ​ ​ ​ ​ ​ 40 ​ ​
Net cash provided by (used in) operating activities
​ ​ ​ ​ 578,919 ​ ​ ​ ​ ​ (244,075) ​ ​
Cash flows from financing activities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Reinvestment of shareholder distributions
​ ​ ​ ​ 61,430 ​ ​ ​ ​ ​ 93,968 ​ ​
Repurchases of common shares
​ ​ ​ ​ (91,773) ​ ​ ​ ​ ​ (52,796) ​ ​
Shareholder distributions
​ ​ ​ ​ (112,211) ​ ​ ​ ​ ​ (154,905) ​ ​
Borrowings under credit facilities(2)
 ​ ​ ​ ​ 115,000 ​ ​ ​ ​ ​ 672,000 ​ ​
Repayments of credit facilities(2)
 ​ ​ ​ ​ (465,000) ​ ​ ​ ​ ​ (144,704) ​ ​
Repayments under repurchase facility
​ ​ ​ ​ — ​ ​ ​ ​ ​ (325,000) ​ ​
Deferred financing costs paid
​ ​ ​ ​ — ​ ​ ​ ​ ​ (2,603) ​ ​
Net cash provided by (used in) financing activities
​ ​ ​ ​ (492,554) ​ ​ ​ ​ ​ 85,960 ​ ​
Total increase (decrease) in cash
​ ​ ​ ​ 86,365 ​ ​ ​ ​ ​ (158,115) ​ ​
Cash at beginning of period
​ ​ ​ ​ 195,376 ​ ​ ​ ​ ​ 317,520 ​ ​
Cash at end of period
​ ​ ​ $ 281,741 ​ ​ ​ ​ $ 159,405 ​ ​
Supplemental disclosure ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Non-cash purchases of investments
​ ​ ​ $ (82,320) ​ ​ ​ ​ $ (16,957) ​ ​
Non-cash sales of investments
​ ​ ​ $ 82,320 ​ ​ ​ ​ $ 16,957 ​ ​
​
​
(1)
See Note 4 for a discussion of expense reimbursements payable to the Company by its former investment adviser and affiliates.
​
(2)
See Note 8 for a discussion of the Company’s credit facilities. During the six months ended June 30, 2018 and 2017, the Company paid $27,343 and $15,017, respectively, in interest expense on the credit facilities and $0 and $4,954, respectively, in interest expense pursuant to the repurchase agreement.
​
​
See notes to unaudited consolidated financial statements.
4
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments
As of June 30, 2018
(in thousands, except share amounts)
​
Portfolio Company(a)
 ​ ​
Footnotes
​ ​
Industry
​ ​
Rate(b)
 ​ ​
Floor
​ ​
Maturity
​ ​
Principal
Amount(c)
 ​ ​
Amortized
Cost
​ ​
Fair
Value(d)
 ​
Senior Secured Loans—First Lien—31.3% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Abaco Energy Technologies LLC
​ ​
(j)
​ ​
Service & Equipment
​ ​
L+950
​ ​ ​ ​ 1.0% ​ ​ ​
11/20/20
​ ​ ​ $   75,013 ​ ​ ​ ​ $   72,316 ​ ​ ​ ​ $   74,637 ​ ​
Allied Wireline Services, LLC
​ ​
(k)(l)(z)
​ ​
Service & Equipment
​ ​
L+950
​ ​ ​ ​ 1.5% ​ ​ ​
6/30/20
​ ​ ​ ​ 115,104 ​ ​ ​ ​ ​ 114,808 ​ ​ ​ ​ ​ 113,665 ​ ​
Altus Power America, Inc.
​ ​
(j)(z)(aa)
​ ​ Power ​ ​
L+750
​ ​ ​ ​ 1.5% ​ ​ ​
9/30/21
​ ​ ​ ​ 80,671 ​ ​ ​ ​ ​ 80,671 ​ ​ ​ ​ ​ 78,553 ​ ​
Altus Power America, Inc.
​ ​
(e)(z)(aa)
​ ​ Power ​ ​
L+750
​ ​ ​ ​ 1.5% ​ ​ ​
9/30/21
​ ​ ​ ​ 9,055 ​ ​ ​ ​ ​ 9,055 ​ ​ ​ ​ ​ 8,817 ​ ​
ARB Midstream Operating Company, LLC
​ ​
(j)(z)
​ ​ Midstream ​ ​
L+725
​ ​ ​ ​ 1.0% ​ ​ ​
11/6/21
​ ​ ​ ​ 3,182 ​ ​ ​ ​ ​ 3,152 ​ ​ ​ ​ ​ 3,147 ​ ​
ARB Midstream Operating Company, LLC
​ ​
(e)(z)
​ ​ Midstream ​ ​
L+725
​ ​ ​ ​ 1.0% ​ ​ ​
11/6/21
​ ​ ​ ​ 1,819 ​ ​ ​ ​ ​ 1,819 ​ ​ ​ ​ ​ 1,798 ​ ​
Bioenergy Infrastructure Holdings Limited
​ ​
(m)(z)
​ ​ Power ​ ​
L+725
​ ​ ​ ​ 1.0% ​ ​ ​
12/14/22
​ ​ ​ ​ 843 ​ ​ ​ ​ ​ 835 ​ ​ ​ ​ ​ 859 ​ ​
Bioenergy Infrastructure Holdings Limited
​ ​
(e)(m)(z)
​ ​ Power ​ ​
L+725
​ ​ ​ ​ 1.0% ​ ​ ​
12/14/22
​ ​ ​ ​ 657 ​ ​ ​ ​ ​ 657 ​ ​ ​ ​ ​ 671 ​ ​
BL Sand Hills Unit, L.P.
​ ​
(l)(z)(aa)
​ ​ Upstream ​ ​
Prime+650
​ ​ ​ ​ 3.5% ​ ​ ​
12/17/21
​ ​ ​ ​ 20,000 ​ ​ ​ ​ ​ 17,369 ​ ​ ​ ​ ​ 20,000 ​ ​
Cimarron Energy Inc.
​ ​
(p)(z)
​ ​
Service & Equipment
​ ​
L+1150 PIK (L+1150 Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
12/15/19
​ ​ ​ ​ 25,866 ​ ​ ​ ​ ​ 25,216 ​ ​ ​ ​ ​ 12,771 ​ ​
Compass Power Generation LLC
​ ​
(g)
​ ​ Power ​ ​
L+375
​ ​ ​ ​ 1.0% ​ ​ ​
12/20/24
​ ​ ​ ​ 2,977 ​ ​ ​ ​ ​ 3,032 ​ ​ ​ ​ ​ 2,998 ​ ​
Eagle Midstream Canada Finance Inc.
​ ​
(j)(l)(m)(z)
​ ​ Midstream ​ ​
8.5%
​ ​ ​ ​ ​ ​ ​ ​
9/27/20
​ ​ ​ ​ 175,000 ​ ​ ​ ​ ​ 175,000 ​ ​ ​ ​ ​ 173,250 ​ ​
Felix Investments Holdings II, LLC
​ ​
(z)
​ ​ Upstream ​ ​
L+650
​ ​ ​ ​ 1.0% ​ ​ ​
8/9/22
​ ​ ​ ​ 3,933 ​ ​ ​ ​ ​ 3,905 ​ ​ ​ ​ ​ 3,914 ​ ​
Felix Investments Holdings II, LLC
​ ​
(e)(z)
​ ​ Upstream ​ ​
L+650
​ ​ ​ ​ 1.0% ​ ​ ​
8/9/22
​ ​ ​ ​ 1,967 ​ ​ ​ ​ ​ 1,967 ​ ​ ​ ​ ​ 1,957 ​ ​
Fortis Minerals Intermediate Holdings, LLC
​ ​
(j)(z)
​ ​ Upstream ​ ​
L+625
​ ​ ​ ​ 1.0% ​ ​ ​
2/16/25
​ ​ ​ ​ 11,725 ​ ​ ​ ​ ​ 11,613 ​ ​ ​ ​ ​ 11,650 ​ ​
Fortis Minerals Intermediate Holdings, LLC
​ ​
(e)(z)
​ ​ Upstream ​ ​
L+625
​ ​ ​ ​ 1.0% ​ ​ ​
2/16/25
​ ​ ​ ​ 35,175 ​ ​ ​ ​ ​ 35,175 ​ ​ ​ ​ ​ 34,950 ​ ​
Industrial Group Intermediate Holdings, LLC
​ ​
(z)
​ ​ Industrials ​ ​
L+800
​ ​ ​ ​ 1.3% ​ ​ ​
5/31/20
​ ​ ​ ​ 23,003 ​ ​ ​ ​ ​ 23,003 ​ ​ ​ ​ ​ 23,003 ​ ​
JSS Holdings, Inc.
​ ​
(l)(z)
​ ​ Industrials ​ ​
L+800, 0.0% PIK (2.5% Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
3/31/23
​ ​ ​ ​ 14,921 ​ ​ ​ ​ ​ 14,800 ​ ​ ​ ​ ​ 15,657 ​ ​
JSS Holdings, Inc.
​ ​
(e)(z)
​ ​ Industrials ​ ​
L+800, 0.0% PIK (2.5% Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
3/31/23
​ ​ ​ ​ 2,727 ​ ​ ​ ​ ​ 2,727 ​ ​ ​ ​ ​ 2,862 ​ ​
Kraken Oil & Gas LLC
​ ​
(j)(z)
​ ​ Upstream ​ ​
L+750
​ ​ ​ ​ 1.0% ​ ​ ​
5/7/21
​ ​ ​ ​ 46,000 ​ ​ ​ ​ ​ 45,597 ​ ​ ​ ​ ​ 45,600 ​ ​
Kraken Oil & Gas LLC
​ ​
(e)(z)
​ ​ Upstream ​ ​
L+750
​ ​ ​ ​ 1.0% ​ ​ ​
5/7/21
​ ​ ​ ​ 14,000 ​ ​ ​ ​ ​ 14,000 ​ ​ ​ ​ ​ 13,878 ​ ​
Lusk Operating LLC
​ ​
(p)(r)(z)(bb)
​ ​ Upstream ​ ​
Prime+500 PIK (8.8% Max PIK)
​ ​ ​ ​ 3.3% ​ ​ ​
7/31/18
​ ​ ​ ​ 29,297 ​ ​ ​ ​ ​ 27,464 ​ ​ ​ ​ ​ — ​ ​
MB Precision Holdings LLC
​ ​
(z)
​ ​ Industrials ​ ​
L+725, 2.3% PIK (2.3% Max PIK)
​ ​ ​ ​ 1.3% ​ ​ ​
1/23/21
​ ​ ​ ​ 13,226 ​ ​ ​ ​ ​ 13,302 ​ ​ ​ ​ ​ 10,077 ​ ​
New Age (African Global Energy) Limited
​ ​
(m)(z)
​ ​ Upstream ​ ​
15.0%
​ ​ ​ ​ ​ ​ ​ ​
6/28/20
​ ​ ​ ​ 1,658 ​ ​ ​ ​ ​ 1,643 ​ ​ ​ ​ ​ 1,692 ​ ​
NNE Holding LLC
​ ​
(j)(z)
​ ​ Upstream ​ ​
L+800
​ ​ ​ ​ ​ ​ ​ ​
3/2/22
​ ​ ​ ​ 30,917 ​ ​ ​ ​ ​ 30,891 ​ ​ ​ ​ ​ 30,778 ​ ​
NNE Holding LLC
​ ​
(e)(z)
​ ​ Upstream ​ ​
L+800
​ ​ ​ ​ ​ ​ ​ ​
3/2/22
​ ​ ​ ​ 4,083 ​ ​ ​ ​ ​ 4,083 ​ ​ ​ ​ ​ 4,065 ​ ​
ORYX Southern Delaware Holdings LLC
​ ​
(f)
​ ​ Midstream ​ ​
L+325
​ ​ ​ ​ 1.0% ​ ​ ​
2/28/25
​ ​ ​ ​ 19,950 ​ ​ ​ ​ ​ 20,047 ​ ​ ​ ​ ​ 19,751 ​ ​
Permian Production Partners LLC
​ ​
(j)(z)
​ ​ Upstream ​ ​
L+600
​ ​ ​ ​ 1.0% ​ ​ ​
5/18/24
​ ​ ​ ​ 40,000 ​ ​ ​ ​ ​ 39,212 ​ ​ ​ ​ ​ 40,152 ​ ​
Power Distribution, Inc.
​ ​
(k)(z)
​ ​ Power ​ ​
L+725
​ ​ ​ ​ 1.3% ​ ​ ​
1/25/23
​ ​ ​ ​ 29,498 ​ ​ ​ ​ ​ 29,498 ​ ​ ​ ​ ​ 30,199 ​ ​
Strike, LLC
​ ​
(j)
​ ​ Midstream ​ ​
L+800
​ ​ ​ ​ 1.0% ​ ​ ​
11/30/22
​ ​ ​ ​ 23,125 ​ ​ ​ ​ ​ 22,578 ​ ​ ​ ​ ​ 23,501 ​ ​
Strike, LLC
​ ​ ​ ​ ​ Midstream ​ ​
L+800
​ ​ ​ ​ 1.0% ​ ​ ​
5/30/19
​ ​ ​ ​ 3,207 ​ ​ ​ ​ ​ 3,184 ​ ​ ​ ​ ​ 3,223 ​ ​
Swift Worldwide Resources US Holdings Corp.
​ ​
(j)(z)
​ ​
Service & Equipment
​ ​
L+1000, 1.0% PIK (1.0% Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
7/20/21
​ ​ ​ ​ 58,469 ​ ​ ​ ​ ​ 58,469 ​ ​ ​ ​ ​ 59,565 ​ ​
Traverse Midstream Partners LLC
​ ​
(f)(g)(j)
​ ​ Midstream ​ ​
L+400
​ ​ ​ ​ 1.0% ​ ​ ​
9/27/24
​ ​ ​ ​ 74,672 ​ ​ ​ ​ ​ 75,342 ​ ​ ​ ​ ​ 74,758 ​ ​
Warren Resources, Inc.
​ ​
(j)(l)(z)(aa)
​ ​ Upstream ​ ​
L+900, 1.0% PIK (1.0% Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
5/22/20
​ ​ ​ ​ 27,161 ​ ​ ​ ​ ​ 27,161 ​ ​ ​ ​ ​ 27,229 ​ ​
Total Senior Secured Loans—First Lien
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,009,591 ​ ​ ​ ​ ​ 969,627 ​ ​
Unfunded Loan Commitments
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (69,483) ​ ​ ​ ​ ​ (69,483) ​ ​
Net Senior Secured Loans—First Lien
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 940,108 ​ ​ ​ ​ ​ 900,144 ​ ​
​
See notes to unaudited consolidated financial statements.
5
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of June 30, 2018
(in thousands, except share amounts)
​
 
Portfolio Company(a)
 ​ ​
Footnotes
​ ​
Industry
​ ​
Rate(b)
 ​ ​
Floor
​ ​
Maturity
​ ​
Principal
Amount(c)
 ​ ​
Amortized
Cost
​ ​
Fair
Value(d)
 ​
Senior Secured Loans—Second Lien—20.5% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Aethon United BR LP
​ ​
(j)(z)
​ ​ Upstream ​ ​
L+675
​ ​ ​ ​ 1.0% ​ ​ ​
9/8/23
​ ​ ​ $ 87,931 ​ ​ ​ ​ $ 86,789 ​ ​ ​ ​ $ 87,096 ​ ​
Aethon United BR LP
​ ​
(e)(z)
​ ​ Upstream ​ ​
L+675
​ ​ ​ ​ 1.0% ​ ​ ​
9/8/23
​ ​ ​ ​ 39,969 ​ ​ ​ ​ ​ 39,969 ​ ​ ​ ​ ​ 39,589 ​ ​
Arena Energy, LP
​ ​
(j)(k)(z)
​ ​ Upstream ​ ​
L+900, 4.0% PIK (4.0% Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
1/24/21
​ ​ ​ ​ 109,844 ​ ​ ​ ​ ​ 109,844 ​ ​ ​ ​ ​ 109,844 ​ ​
Chisholm Oil and Gas Operating, LLC
​ ​
(j)(k)(l)(z)
​ ​ Upstream ​ ​
L+800
​ ​ ​ ​ 1.0% ​ ​ ​
3/21/24
​ ​ ​ ​ 196,000 ​ ​ ​ ​ ​ 196,000 ​ ​ ​ ​ ​ 194,679 ​ ​
Granite Acquisition, Inc.
​ ​
(f)(g)
​ ​ Power ​ ​
L+725
​ ​ ​ ​ 1.0% ​ ​ ​
12/19/22
​ ​ ​ ​ 22,331 ​ ​ ​ ​ ​ 22,046 ​ ​ ​ ​ ​ 22,442 ​ ​
Horn Intermediate Holdings, Inc.
​ ​
(z)
​ ​
Service & Equipment
​ ​
L+775
​ ​ ​ ​ 1.3% ​ ​ ​
10/2/18
​ ​ ​ ​ 50,250 ​ ​ ​ ​ ​ 50,250 ​ ​ ​ ​ ​ 50,250 ​ ​
P2 Upstream Acquisition Co.
​ ​ ​ ​ ​
Service & Equipment
​ ​
L+800
​ ​ ​ ​ 1.0% ​ ​ ​
4/30/21
​ ​ ​ ​ 15,399 ​ ​ ​ ​ ​ 14,911 ​ ​ ​ ​ ​ 14,331 ​ ​
Penn Virginia Holdings Corp.
​ ​
(j)(m)(z)
​ ​ Upstream ​ ​
L+700
​ ​ ​ ​ 1.0% ​ ​ ​
9/29/22
​ ​ ​ ​ 30,000 ​ ​ ​ ​ ​ 30,000 ​ ​ ​ ​ ​ 30,264 ​ ​
Rosehill Operating Company, LLC
​ ​
(z)
​ ​ Upstream ​ ​
10.0%
​ ​ ​ ​ ​ ​ ​ ​
1/31/23
​ ​ ​ ​ 1,667 ​ ​ ​ ​ ​ 1,651 ​ ​ ​ ​ ​ 1,698 ​ ​
SilverBow Resources, Inc.
​ ​
(j)(m)(z)
 ​ ​ Upstream ​ ​
L+750
​ ​ ​ ​ 1.0% ​ ​ ​
12/15/24
​ ​ ​ ​ 19,000 ​ ​ ​ ​ ​ 18,822 ​ ​ ​ ​ ​ 19,042 ​ ​
Titan Energy Operating, LLC
​ ​
(k)(p)(z)(aa)
​ ​ Upstream ​ ​
L+1300 PIK (L+1300 Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
2/23/20
​ ​ ​ ​ 125,126 ​ ​ ​ ​ ​ 100,902 ​ ​ ​ ​ ​ 21,881 ​ ​
UTEX Industries, Inc.
​ ​ ​ ​ ​
Service & Equipment
​ ​
L+725
​ ​ ​ ​ 1.0% ​ ​ ​
5/20/22
​ ​ ​ ​ 37,692 ​ ​ ​ ​ ​ 35,058 ​ ​ ​ ​ ​ 37,095 ​ ​
Total Senior Secured Loans—Second Lien
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 706,242 ​ ​ ​ ​ ​ 628,211 ​ ​
Unfunded Loan Commitment
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (39,969) ​ ​ ​ ​ ​ (39,969) ​ ​
Net Senior Secured Loans—Second Lien
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 666,273 ​ ​ ​ ​ ​ 588,242 ​ ​
Senior Secured Bonds—18.4% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Black Swan Energy Ltd.
​ ​
(j)(m)(z)
​ ​ Upstream ​ ​
9.0%
​ ​ ​ ​ ​ ​ ​ ​
1/20/24
​ ​ ​ ​ 90,000 ​ ​ ​ ​ ​ 90,000 ​ ​ ​ ​ ​ 89,100 ​ ​
FourPoint Energy, LLC
​ ​
(j)(k)(l)(z)(aa)
​ ​ Upstream ​ ​
9.0%
​ ​ ​ ​ ​ ​ ​ ​
12/31/21
​ ​ ​ ​ 235,125 ​ ​ ​ ​ ​ 227,886 ​ ​ ​ ​ ​ 239,828 ​ ​
Ridgeback Resources Inc.
​ ​
(k)(m)(z)(aa)
​ ​ Upstream ​ ​
12.0%
​ ​ ​ ​ ​ ​ ​ ​
12/29/20
​ ​ ​ ​ 3,887 ​ ​ ​ ​ ​ 3,830 ​ ​ ​ ​ ​ 3,887 ​ ​
Sunnova Energy Corp.
​ ​
(j)(z)(aa)
​ ​ Power ​ ​
6.0%, 6.0% PIK (6.0% Max PIK)
​ ​ ​ ​ ​ ​ ​ ​
1/24/19
​ ​ ​ ​ 26,016 ​ ​ ​ ​ ​ 26,016 ​ ​ ​ ​ ​ 25,984 ​ ​
Talos Production LLC
​ ​
(k)(l)
​ ​ Upstream ​ ​
11.0%
​ ​ ​ ​ ​ ​ ​ ​
4/3/22
​ ​ ​ ​ 43,250 ​ ​ ​ ​ ​ 45,394 ​ ​ ​ ​ ​ 45,521 ​ ​
Velvet Energy Ltd.
​ ​
(j)(l)(m)(z)
​ ​ Upstream ​ ​
9.0%
​ ​ ​ ​ ​ ​ ​ ​
10/5/23
​ ​ ​ ​ 120,000 ​ ​ ​ ​ ​ 120,000 ​ ​ ​ ​ ​ 125,400 ​ ​
Total Senior Secured Bonds
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 513,126 ​ ​ ​ ​ ​ 529,720 ​ ​
​
See notes to unaudited consolidated financial statements.
6
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of June 30, 2018
(in thousands, except share amounts)
​
 
Portfolio Company(a)
 ​ ​
Footnotes
​ ​
Industry
​ ​
Rate(b)
 ​ ​
Floor
​ ​
Maturity
​ ​
Principal
Amount(c)
 ​ ​
Amortized
Cost
​ ​
Fair
Value(d)
 ​
Subordinated Debt—25.0% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Ascent Resources Utica Holdings, LLC
​ ​
(f)(h)(j)(o)
​ ​ Upstream ​ ​
10.0%
​ ​ ​ ​ ​ ​ ​ ​
4/1/22
​ ​ ​ $ 185,000 ​ ​ ​ ​ $ 185,000 ​ ​ ​ ​ $ 203,731 ​ ​
Bellatrix Exploration Ltd.
​ ​
(f)(h)(m)(o)
​ ​ Upstream ​ ​
8.5%
​ ​ ​ ​ ​ ​ ​ ​
5/15/20
​ ​ ​ ​ 60,120 ​ ​ ​ ​ ​ 59,407 ​ ​ ​ ​ ​ 40,028 ​ ​
Canbriam Energy Inc.
​ ​
(f)(h)(j)(m)(o)
​ ​ Upstream ​ ​
9.8%
​ ​ ​ ​ ​ ​ ​ ​
11/15/19
​ ​ ​ ​ 109,790 ​ ​ ​ ​ ​ 108,399 ​ ​ ​ ​ ​ 110,927 ​ ​
Compressco Partners, LP
​ ​
(f)(h)(o)
​ ​ Midstream ​ ​
7.3%
​ ​ ​ ​ ​ ​ ​ ​
8/15/22
​ ​ ​ ​ 19,050 ​ ​ ​ ​ ​ 18,948 ​ ​ ​ ​ ​ 17,455 ​ ​
Covey Park Energy LLC
​ ​
(h)(o)
​ ​ Upstream ​ ​
7.5%
​ ​ ​ ​ ​ ​ ​ ​
5/15/25
​ ​ ​ ​ 41,582 ​ ​ ​ ​ ​ 41,653 ​ ​ ​ ​ ​ 42,466 ​ ​
Eclipse Resources Corp.
​ ​
(h)(m)(o)
​ ​ Upstream ​ ​
8.9%
​ ​ ​ ​ ​ ​ ​ ​
7/15/23
​ ​ ​ ​ 27,245 ​ ​ ​ ​ ​ 23,907 ​ ​ ​ ​ ​ 25,920 ​ ​
Global Jet Capital Holdings, LP
​ ​
(z)
​ ​ Industrials ​ ​
15.0% PIK (15.0% Max PIK)
​ ​ ​ ​ ​ ​ ​ ​
1/30/25
​ ​ ​ ​ 915 ​ ​ ​ ​ ​ 915 ​ ​ ​ ​ ​ 908 ​ ​
Global Jet Capital Holdings, LP
​ ​
(z)
​ ​ Industrials ​ ​
15.0% PIK (15.0% Max PIK)
​ ​ ​ ​ ​ ​ ​ ​
4/30/25
​ ​ ​ ​ 5,813 ​ ​ ​ ​ ​ 5,813 ​ ​ ​ ​ ​ 5,762 ​ ​
Global Jet Capital Holdings, LP
​ ​
(z)
​ ​ Industrials ​ ​
15.0% PIK (15.0% Max PIK)
​ ​ ​ ​ ​ ​ ​ ​
9/3/25
​ ​ ​ ​ 1,201 ​ ​ ​ ​ ​ 1,201 ​ ​ ​ ​ ​ 1,189 ​ ​
Global Jet Capital Holdings, LP
​ ​
(z)
​ ​ Industrials ​ ​
15.0% PIK (15.0% Max PIK)
​ ​ ​ ​ ​ ​ ​ ​
9/29/25
​ ​ ​ ​ 1,131 ​ ​ ​ ​ ​ 1,131 ​ ​ ​ ​ ​ 1,119 ​ ​
Global Jet Capital Holdings, LP
​ ​
(z)
​ ​ Industrials ​ ​
15.0% PIK (15.0% Max PIK)
​ ​ ​ ​ ​ ​ ​ ​
12/2/26
​ ​ ​ ​ 994 ​ ​ ​ ​ ​ 994 ​ ​ ​ ​ ​ 982 ​ ​
Global Partners L.P.
​ ​
(f)(m)
​ ​ Midstream ​ ​
6.3%
​ ​ ​ ​ ​ ​ ​ ​
7/15/22
​ ​ ​ ​ 8,560 ​ ​ ​ ​ ​ 8,560 ​ ​ ​ ​ ​ 8,359 ​ ​
Great Western Petroleum, LLC
​ ​
(m)(z)
​ ​ Upstream ​ ​
8.5%
​ ​ ​ ​ ​ ​ ​ ​
4/15/25
​ ​ ​ ​ 13,636 ​ ​ ​ ​ ​ 12,959 ​ ​ ​ ​ ​ 13,221 ​ ​
Great Western Petroleum, LLC
​ ​
(f)(h)(o)
​ ​ Upstream ​ ​
9.0%
​ ​ ​ ​ ​ ​ ​ ​
9/30/21
​ ​ ​ ​ 35,830 ​ ​ ​ ​ ​ 35,721 ​ ​ ​ ​ ​ 36,824 ​ ​
Hammerhead Resources Inc.
​ ​
(j)(m)
​ ​ Upstream ​ ​
9.0%
​ ​ ​ ​ ​ ​ ​ ​
7/10/22
​ ​ ​ ​ 100,000 ​ ​ ​ ​ ​ 97,476 ​ ​ ​ ​ ​ 96,750 ​ ​
Lonestar Resources America Inc.
​ ​
(h)(o)
​ ​ Upstream ​ ​
11.3%
​ ​ ​ ​ ​ ​ ​ ​
1/1/23
​ ​ ​ ​ 25,000 ​ ​ ​ ​ ​ 25,000 ​ ​ ​ ​ ​ 26,756 ​ ​
Martin Midstream Partners L.P.
​ ​
(f)(h)(m)(o)
​ ​ Midstream ​ ​
7.3%
​ ​ ​ ​ ​ ​ ​ ​
2/15/21
​ ​ ​ ​ 12,723 ​ ​ ​ ​ ​ 12,134 ​ ​ ​ ​ ​ 12,596 ​ ​
Moss Creek Resources, LLC
​ ​
(h)(o)
​ ​ Upstream ​ ​
7.5%
​ ​ ​ ​ ​ ​ ​ ​
1/15/26
​ ​ ​ ​ 30,000 ​ ​ ​ ​ ​ 30,000 ​ ​ ​ ​ ​ 29,533 ​ ​
Tenrgys, LLC
​ ​
(k)(p)(r)(z)
​ ​ Upstream ​ ​
L+900
​ ​ ​ ​ 2.5% ​ ​ ​
12/23/18
​ ​ ​ ​ 75,000 ​ ​ ​ ​ ​ 75,000 ​ ​ ​ ​ ​ 45,281 ​ ​
Total Subordinated Debt
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 744,218 ​ ​ ​ ​ ​ 719,807 ​ ​
​
See notes to unaudited consolidated financial statements.
7
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of June 30, 2018
(in thousands, except share amounts)
​
 
Portfolio Company(a)
 ​ ​
Footnotes
​ ​
Industry
 ​ ​
Number of
Shares
​ ​
Amortized
Cost
​ ​
Fair
Value(d)
 ​
Equity/Other—24.7%(n) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Abaco Energy Technologies LLC, Common Equity
​ ​
(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 6,944,444 ​ ​ ​ ​ $ 6,944 ​ ​ ​ ​ $ 2,517 ​ ​
Abaco Energy Technologies LLC, Preferred Equity
​ ​
(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 28,942,003 ​ ​ ​ ​ ​ 1,447 ​ ​ ​ ​ ​ 12,300 ​ ​
Allied Downhole Technologies, LLC, Common Equity
​ ​
(k)(q)(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 7,431,113 ​ ​ ​ ​ ​ 7,223 ​ ​ ​ ​ ​ 9,289 ​ ​
Allied Downhole Technologies, LLC, Warrants, 2/28/2019
​ ​
(k)(q)(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 5,344,680 ​ ​ ​ ​ ​ 1,865 ​ ​ ​ ​ ​ 6,681 ​ ​
Altus Power America Holdings, LLC, Common Equity
​ ​
(k)(r)(z)(aa)
​ ​ Power ​ ​ ​ ​ 12,474,205 ​ ​ ​ ​ ​ 12,474 ​ ​ ​ ​ ​ 2,183 ​ ​
Altus Power America Holdings, LLC, Preferred Equity
​ ​
(k)(s)(z)(aa)
​ ​ Power ​ ​ ​ ​ 26,890,244 ​ ​ ​ ​ ​ 26,890 ​ ​ ​ ​ ​ 26,890 ​ ​
Ascent Resources Utica Holdings, LLC, Common Equity
​ ​
(r)(t)(z)
​ ​ Upstream ​ ​ ​ ​ 148,692,909 ​ ​ ​ ​ ​ 44,700 ​ ​ ​ ​ ​ 39,032 ​ ​
BL Sand Hills Unit, L.P., Net Profits Interest
​ ​
(r)(v)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ N/A ​ ​ ​ ​ ​ 5,180 ​ ​ ​ ​ ​ 1,077 ​ ​
BL Sand Hills Unit, L.P., Overriding Royalty Interest
​ ​
(v)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ N/A ​ ​ ​ ​ ​ 740 ​ ​ ​ ​ ​ 741 ​ ​
BL Sand Hills Unit, L.P., Series A Units
​ ​
(i)(r)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 29,117 ​ ​ ​ ​ ​ 24,019 ​ ​ ​ ​ ​ 7,103 ​ ​
Chisholm Oil and Gas, LLC, Series A Units
​ ​
(i)(r)(z)
​ ​ Upstream ​ ​ ​ ​ 14,700,000 ​ ​ ​ ​ ​ 14,700 ​ ​ ​ ​ ​ 11,922 ​ ​
Cimarron Energy Holdco Inc., Common Equity
​ ​
(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 3,675,487 ​ ​ ​ ​ ​ 3,323 ​ ​ ​ ​ ​ — ​ ​
Cimarron Energy Holdco Inc., Preferred Equity
​ ​
(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 626,806 ​ ​ ​ ​ ​ 627 ​ ​ ​ ​ ​ — ​ ​
FourPoint Energy, LLC, Common Equity, Class C-II-A Units
​ ​
(k)(q)(r)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 66,000 ​ ​ ​ ​ ​ 66,000 ​ ​ ​ ​ ​ 19,305 ​ ​
FourPoint Energy, LLC, Common Equity, Class D Units
​ ​
(k)(q)(r)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 12,374 ​ ​ ​ ​ ​ 8,176 ​ ​ ​ ​ ​ 3,650 ​ ​
FourPoint Energy, LLC, Common Equity, Class E-II Units
​ ​
(i)(r)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 150,937 ​ ​ ​ ​ ​ 37,734 ​ ​ ​ ​ ​ 43,961 ​ ​
FourPoint Energy, LLC, Common Equity, Class E-III Units
​ ​
(i)(k)(q)(r)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 222,750 ​ ​ ​ ​ ​ 55,688 ​ ​ ​ ​ ​ 65,154 ​ ​
Global Jet Capital Holdings, LP, Preferred Equity
​ ​
(r)(z)
​ ​ Industrials ​ ​ ​ ​ 2,785,562 ​ ​ ​ ​ ​ 2,786 ​ ​ ​ ​ ​ 1,880 ​ ​
Great Western Petroleum, LLC, Preferred Equity
​ ​
(k)(q)(z)
​ ​ Upstream ​ ​ ​ ​ 36,363 ​ ​ ​ ​ ​ 36,366 ​ ​ ​ ​ ​ 36,363 ​ ​
Harvest Oil & Gas Corp., Common Equity
​ ​
(r)(z)
​ ​ Upstream ​ ​ ​ ​ 1,350,620 ​ ​ ​ ​ ​ 29,714 ​ ​ ​ ​ ​ 29,714 ​ ​
Industrial Group Intermediate Holdings, LLC, Common Equity
​ ​
(k)(q)(r)(z)
​ ​ Industrials ​ ​ ​ ​ 472,755 ​ ​ ​ ​ ​ 473 ​ ​ ​ ​ ​ 355 ​ ​
JSS Holdco, LLC, Net Profits Interest
​ ​
(r)(z)
​ ​ Industrials ​ ​ ​ ​ N/A ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 88 ​ ​
Lusk Operating LLC, Common Equity
​ ​
(r)(u)(z)(bb)
​ ​ Upstream ​ ​ ​ ​ 2,000 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
MB Precision Investment Holdings LLC, Class A-2 Units
​ ​
(k)(q)(r)(z)
​ ​ Industrials ​ ​ ​ ​ 490,213 ​ ​ ​ ​ ​ 490 ​ ​ ​ ​ ​ — ​ ​
New Age (African Global Energy) Limited
​ ​
(m)(r)(z)
​ ​ Upstream ​ ​ ​ ​ 32,423 ​ ​ ​ ​ ​ 19 ​ ​ ​ ​ ​ — ​ ​
NuStar Energy, LP, Preferred Equity
​ ​
(z)
​ ​ Midstream ​ ​ ​ ​ 4,006,892 ​ ​ ​ ​ ​ 96,460 ​ ​ ​ ​ ​ 101,695 ​ ​
PDI Parent LLC, Common Equity
​ ​
(r)(z)
​ ​ Power ​ ​ ​ ​ 1,384,615 ​ ​ ​ ​ ​ 1,385 ​ ​ ​ ​ ​ 1,315 ​ ​
Ridgeback Resources Inc., Common Equity
​ ​
(l)(m)(r)(w)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 9,599,928 ​ ​ ​ ​ ​ 58,985 ​ ​ ​ ​ ​ 64,136 ​ ​
Rosehill Resources, Inc., Preferred Equity
​ ​
(r)(z)
​ ​ Upstream ​ ​ ​ ​ 2,536 ​ ​ ​ ​ ​ 2,511 ​ ​ ​ ​ ​ 2,570 ​ ​
Segreto Power Holdings, LLC, Preferred Equity
​ ​
(i)(z)
​ ​ Power ​ ​ ​ ​ 70,297 ​ ​ ​ ​ ​ 69,186 ​ ​ ​ ​ ​ 70,297 ​ ​
Sunnova Energy Corp., Common Equity
​ ​
(r)(z)(aa)
​ ​ Power ​ ​ ​ ​ 6,667,368 ​ ​ ​ ​ ​ 25,026 ​ ​ ​ ​ ​ — ​ ​
Sunnova Energy Corp., Preferred Equity
​ ​
(r)(z)(aa)
​ ​ Power ​ ​ ​ ​ 1,117,214 ​ ​ ​ ​ ​ 5,948 ​ ​ ​ ​ ​ 5,558 ​ ​
Swift Worldwide Resources Holdco Limited, Common Equity
​ ​
(m)(r)(x)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 3,750,000 ​ ​ ​ ​ ​ 6,029 ​ ​ ​ ​ ​ 1,875 ​ ​
Synergy Offshore LLC, Preferred Equity
​ ​
(k)(p)(r)(y)(z)
​ ​ Upstream ​ ​ ​ ​ 71,131 ​ ​ ​ ​ ​ 93,009 ​ ​ ​ ​ ​ 25,323 ​ ​
TE Holdings, LLC, Common Equity
​ ​
(i)(r)
​ ​ Upstream ​ ​ ​ ​ 2,225,950 ​ ​ ​ ​ ​ 18,921 ​ ​ ​ ​ ​ 2,449 ​ ​
TE Holdings, LLC, Preferred Equity
​ ​
(l)(r)
​ ​ Upstream ​ ​ ​ ​ 1,475,531 ​ ​ ​ ​ ​ 14,734 ​ ​ ​ ​ ​ 10,329 ​ ​
The Brock Group, Inc., Common Equity
​ ​
(l)(r)(z)
​ ​ Service & Equipment ​ ​ ​ ​ 786,094 ​ ​ ​ ​ ​ 15,617 ​ ​ ​ ​ ​ — ​ ​
Titan Energy, LLC, Common Equity
​ ​
(k)(r)(aa)
​ ​ Upstream ​ ​ ​ ​ 555,496 ​ ​ ​ ​ ​ 17,554 ​ ​ ​ ​ ​ 211 ​ ​
USA Compression Partners, LP, 9.8%, Preferred Equity
​ ​
(z)
​ ​ Midstream ​ ​ ​ ​ 79,336 ​ ​ ​ ​ ​ 70,654 ​ ​ ​ ​ ​ 81,327 ​ ​
USA Compression Partners, LP, Warrants (Market)
​ ​
(r)(z)
​ ​ Midstream ​ ​ ​ ​ 793,359 ​ ​ ​ ​ ​ 3,500 ​ ​ ​ ​ ​ 1,349 ​ ​
USA Compression Partners, LP, Warrants (Premium)
​ ​
(r)(z)
​ ​ Midstream ​ ​ ​ ​ 1,586,719 ​ ​ ​ ​ ​ 4,500 ​ ​ ​ ​ ​ 1,745 ​ ​
Warren Resources, Inc., Common Equity
​ ​
(l)(r)(z)(aa)
​ ​ Upstream ​ ​ ​ ​ 4,415,749 ​ ​ ​ ​ ​ 20,754 ​ ​ ​ ​ ​ 16,559 ​ ​
White Star Petroleum Holdings, LLC, Common Equity
​ ​
(i)(r)(z)
​ ​ Upstream ​ ​ ​ ​ 4,867,084 ​ ​ ​ ​ ​ 4,137 ​ ​ ​ ​ ​ 2,129 ​ ​
Total Equity/Other
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 916,488 ​ ​ ​ ​ ​ 709,072 ​ ​
TOTAL INVESTMENTS—119.9%
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 3,780,213 ​ ​ ​ ​ ​ 3,446,985 ​ ​
LIABILITIES IN EXCESS OF OTHER ASSETS—(19.9%)
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (573,206) ​ ​
NET ASSETS—100.0%
 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $ 2,873,779 ​ ​
​
See notes to unaudited consolidated financial statements.
8
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of June 30, 2018
(in thousands, except share amounts)
​
 
​
(a)
Security may be an obligation of one or more entities affiliated with the named company.
​
(b)
Certain variable rate securities in the Company’s portfolio bear interest at a rate determined by a publicly disclosed base rate plus a basis point spread. As of June 30, 2018, the three-month London Interbank Offered Rate, or LIBOR or “L,” was 2.34% and the U.S. Prime Lending Rate, or Prime, was 5.00%. PIK means paid-in-kind. PIK income accruals may be adjusted based on the fair value of the underlying investment.
​
(c)
Denominated in U.S. dollars, unless otherwise noted.
​
(d)
Fair value determined by the Company’s board of trustees (see Note 7).
​
(e)
Security is an unfunded commitment. The stated rate reflects the spread disclosed at the time of commitment and may not indicate the actual rate received upon funding.
​
(f)
Security or portion thereof held within FSEP Term Funding, LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Deutsche Bank AG, New York Branch (see Note 8).
​
(g)
Position or portion thereof unsettled as of June 30, 2018.
​
(h)
Security or portion thereof held within Berwyn Funding LLC and is pledged as collateral supporting the amounts outstanding under the prime brokerage facility with BNP Paribas Prime Brokerage, Inc., or BNP. Securities held within Berwyn Funding LLC may be rehypothecated from time to time as permitted under Rule 15c-1(a)(1) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, subject to the terms and conditions governing the prime brokerage facility with BNP (see Note 8).
​
(i)
Security held within FS Energy Investments, LLC, a wholly-owned subsidiary of the Company.
​
(j)
Security or portion thereof held within Gladwyne Funding LLC and is pledged as collateral supporting the obligations outstanding under the term loan facility with Goldman Sachs Bank USA (see Note 8).
​
(k)
Security or portion thereof held within Foxfields Funding LLC and is pledged as collateral supporting the obligations outstanding under the term loan facility with Fortress Credit Co LLC (see Note 8).
​
(l)
Security or portion thereof held within Bryn Mawr Funding LLC and is pledged as collateral supporting the amounts outstanding under the revolving credit facility with Barclays Bank PLC (see Note 8).
​
(m)
The investment is not a qualifying asset under the Investment Company Act of 1940, as amended, or the 1940 Act. A business development company may not acquire any asset other than a qualifying asset, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the business development company’s total assets. As of June 30, 2018, 73.5% of the Company’s total assets represented qualifying assets.
​
(n)
Listed investments may be treated as debt for U.S. generally accepted accounting principles, or GAAP, or tax purposes.
​
(o)
Security or portion thereof held within Berwyn Funding LLC has been rehypothecated under Rule 15c-1(a)(1) of the Exchange Act, subject to the terms and conditions governing the prime brokerage facility with BNP (see Note 8). As of June 30, 2018, the fair value of securities rehypothecated by BNP was $166,195.
​
(p)
Security was on non-accrual status as of June 30, 2018.
​
(q)
Security held within FSEP Investments, Inc., a wholly-owned subsidiary of Foxfields Funding LLC.
​
(r)
Security is non-income producing.
​
(s)
Security is held within EP Altus Investments, LLC, a wholly-owned subsidiary of Foxfields Funding LLC.
​
(t)
Security held within EP American Energy Investments, Inc., a wholly-owned subsidiary of the Company.
​
(u)
Security held within FSEP-BBH, Inc., a wholly-owned subsidiary of the Company.
​
(v)
Security held within EP Burnett Investments, Inc., a wholly-owned subsidiary of the Company.
​
(w)
Investment denominated in Canadian dollars. Amortized cost and fair value are converted into U.S. dollars as of June 30, 2018.
​
(x)
Investment denominated in British pounds. Amortized cost and fair value are converted into U.S. dollars as of June 30, 2018.
​
(y)
Security held within EP Synergy Investments, Inc., a wholly-owned subsidiary of Foxfields Funding LLC.
​
(z)
Security is classified as Level 3 in the Company’s fair value hierarchy (See Note 7).
​
​
See notes to unaudited consolidated financial statements.
9
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of June 30, 2018
(in thousands, except share amounts)
​
 
(aa)
Under the 1940 Act, the Company generally is deemed to be an “affiliated person” of a portfolio company if it owns 5% or more of the portfolio company’s voting securities and generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2018, the Company held investments in portfolio companies of which it is deemed to be an “affiliated person” but is not deemed to “control”. The following table presents certain information with respect to such portfolio companies for the six months ended June 30, 2018:
​
Portfolio Company
​ ​
Fair Value at
December 31,
2017
​ ​
Purchases,
Paid-in-Kind
Interest and
Transfers In
​ ​
Sales,
Repayments and
Transfers Out
​ ​
Accretion
of
Discount
​ ​
Net Change in
Unrealized
Appreciation
(Depreciation)
​ ​
Fair Value at
June 30,
2018
​ ​
Interest
Income(2)
 ​ ​
PIK
Income(2)
 ​ ​
Fee
Income(2)
 ​
Senior Secured Loans—First Lien ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Altus Power America, Inc.(1)
 ​ ​ ​ $ 75,353 ​ ​ ​ ​ $ 3,293 ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ (331) ​ ​ ​ ​ $ 78,315 ​ ​ ​ ​ $ 3,753 ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​
BL Sand Hills Unit, L.P.
​ ​ ​ ​ 20,000 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 20,000 ​ ​ ​ ​ ​ 1,107 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Warren Resources, Inc.
​ ​ ​ ​ 81,214 ​ ​ ​ ​ ​ 193 ​ ​ ​ ​ ​ (52,265) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,913) ​ ​ ​ ​ ​ 27,229 ​ ​ ​ ​ ​ 2,030 ​ ​ ​ ​ ​ 193 ​ ​ ​ ​ ​ 2,091 ​ ​
Senior Secured Loans—Second Lien ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Titan Energy Operating, LLC
​ ​ ​ ​ 62,026 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (40,145) ​ ​ ​ ​ ​ 21,881 ​ ​ ​ ​ ​ 895 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Senior Secured Bonds ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
FourPoint Energy, LLC
​ ​ ​ ​ 238,946 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (1,485) ​ ​ ​ ​ ​ 1,556 ​ ​ ​ ​ ​ 811 ​ ​ ​ ​ ​ 239,828 ​ ​ ​ ​ ​ 12,195 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Ridgeback Resources Inc.
​ ​ ​ ​ 3,887 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 5 ​ ​ ​ ​ ​ (5) ​ ​ ​ ​ ​ 3,887 ​ ​ ​ ​ ​ 238 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Sunnova Energy Corp.
​ ​ ​ ​ — ​ ​ ​ ​ ​ 34,688 ​ ​ ​ ​ ​ (8,672) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (32) ​ ​ ​ ​ ​ 25,984 ​ ​ ​ ​ ​ 1,803 ​ ​ ​ ​ ​ 1,018 ​ ​ ​ ​ ​ — ​ ​
Equity/Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Altus Power America Holdings, LLC, Common Equity
​ ​ ​ ​ 1,871 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 312 ​ ​ ​ ​ ​ 2,183 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Altus Power America Holdings, LLC, Preferred Equity
​ ​ ​ ​ 25,793 ​ ​ ​ ​ ​ 4,939 ​ ​ ​ ​ ​ (3,842) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 26,890 ​ ​ ​ ​ ​ 1,776 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
BL Sand Hills Unit, L.P., Net Profits Interest
​ ​ ​ ​ 966 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 111 ​ ​ ​ ​ ​ 1,077 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
BL Sand Hills Unit, L.P., Overriding Royalty Interest
​ ​ ​ ​ 726 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 15 ​ ​ ​ ​ ​ 741 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
BL Sand Hills Unit, L.P., Series A Units
​ ​ ​ ​ 7,000 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 103 ​ ​ ​ ​ ​ 7,103 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
FourPoint Energy, LLC, Common Equity, Class C-II-A Units
​ ​ ​ ​ 19,140 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 165 ​ ​ ​ ​ ​ 19,305 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
FourPoint Energy, LLC, Common Equity, Class D Units
​ ​ ​ ​ 3,619 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 31 ​ ​ ​ ​ ​ 3,650 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
FourPoint Energy, LLC, Common Equity, Class E-II Units
​ ​ ​ ​ 43,395 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 566 ​ ​ ​ ​ ​ 43,961 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
FourPoint Energy, LLC, Common Equity, Class E-III Units
​ ​ ​ ​ 64,598 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 556 ​ ​ ​ ​ ​ 65,154 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Ridgeback Resources Inc., Common Equity
​ ​ ​ ​ 58,284 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 5,852 ​ ​ ​ ​ ​ 64,136 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Sunnova Energy Corp., Common Equity
​ ​ ​ ​ — ​ ​ ​ ​ ​ 25,026 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (25,026) ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Sunnova Energy Corp., Preferred Equity
​ ​ ​ ​ — ​ ​ ​ ​ ​ 5,948 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (390) ​ ​ ​ ​ ​ 5,558 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Titan Energy, LLC, Common Equity
​ ​ ​ ​ 844 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ (633) ​ ​ ​ ​ ​ 211 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Warren Resources, Inc., Common Equity
​ ​ ​ ​ 7,507 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ 9,052 ​ ​ ​ ​ ​ 16,559 ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Total
 ​ ​ ​ $ 715,169 ​ ​ ​ ​ $ 74,087 ​ ​ ​ ​ $ (66,264) ​ ​ ​ ​ $ 1,561 ​ ​ ​ ​ $ (50,901) ​ ​ ​ ​ $ 673,652 ​ ​ ​ ​ $ 23,797 ​ ​ ​ ​ $ 1,211 ​ ​ ​ ​ $ 2,091 ​ ​
​
​
(1)
Security includes a partially unfunded commitment with amortized cost of  $9,055 and fair value of  $8,817.
​
(2)
Interest, PIK and fee income presented for the six months ended June 30, 2018.
​
​
See notes to unaudited consolidated financial statements.
10
FS Energy and Power Fund
Unaudited Consolidated Schedule of Investments (Continued)
As of June 30, 2018
(in thousands, except share amounts)
​
 
(bb)
Under the 1940 Act, the Company generally is deemed to “control” a portfolio company if it owns more than 25% of the portfolio company’s voting securities or it has the power to exercise control over the management or policies of such portfolio company. As of June 30, 2018, the Company held investments in one portfolio company of which it is deemed to be an “affiliated person” of and deemed to “control”. The following table presents certain information with respect to investments in portfolio companies of which the Company was deemed to be an “affiliated person” of and deemed to “control” for the six months ended June 30, 2018:
​
Portfolio Company
​ ​
Fair Value at
December 31,
2017
​ ​
Purchases,
Paid-in-Kind
Interest and
Other
​ ​
Sales,
Repayments
and Other
​ ​
Accretion
of
Discount
​ ​
Net Realized
Gain (Loss)
​ ​
Net Change in
Unrealized
Appreciation
(Depreciation)
​ ​
Fair Value at
June 30,
2018
​
Senior Secured Loans—First Lien ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Lusk Operating LLC
​ ​ ​ $   — ​ ​ ​ ​ $   — ​ ​ ​ ​ $   — ​ ​ ​ ​ $   — ​ ​ ​ ​ $   — ​ ​ ​ ​ $   — ​ ​ ​ ​ $   — ​ ​
Equity/Other ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Lusk Operating LLC, Common Equity
​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​ ​ ​ ​ — ​ ​
Total
 ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​ ​ ​ $ — ​ ​
​
See notes to unaudited consolidated financial statements.
11
FS Energy and Power Fund
Consolidated Schedule of Investments
As of December 31, 2017
(in thousands, except share amounts)
​
Portfolio Company(a)
 ​ ​
Footnotes
​ ​
Industry
​ ​
Rate(b)
 ​ ​
Floor
​ ​
Maturity
​ ​
Principal
Amount(c)
 ​ ​
Amortized
Cost
​ ​
Fair
Value(d)
 ​
Senior Secured Loans—First Lien—31.2% ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Abaco Energy Technologies LLC
​ ​
(g)(j)
​ ​
Service & Equipment
​ ​
L+700, 2.5% PIK (2.5% Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
11/20/20
​ ​ ​ $ 86,207 ​ ​ ​ ​ $ 82,722 ​ ​ ​ ​ $ 84,697 ​ ​
Allied Wireline Services, LLC
​ ​
(k)(l)
​ ​
Service & Equipment
​ ​
L+400, 5.5% PIK (5.5% Max PIK)
​ ​ ​ ​ 1.5% ​ ​ ​
2/28/19
​ ​ ​ ​ 115,104 ​ ​ ​ ​ ​ 114,625 ​ ​ ​ ​ ​ 113,377 ​ ​
Altus Power America, Inc.
​ ​
(j)(aa)
​ ​ Power ​ ​
L+750
​ ​ ​ ​ 1.5% ​ ​ ​
9/30/21
​ ​ ​ ​ 77,378 ​ ​ ​ ​ ​ 77,378 ​ ​ ​ ​ ​ 75,830 ​ ​
Altus Power America, Inc.
​ ​
(e)(aa)
​ ​ Power ​ ​
L+750
​ ​ ​ ​ 1.5% ​ ​ ​
9/30/21
​ ​ ​ ​ 23,872 ​ ​ ​ ​ ​ 23,872 ​ ​ ​ ​ ​ 23,395 ​ ​
BL Sand Hills Unit, L.P.
​ ​
(l)(aa)
​ ​ Upstream ​ ​
Prime+650
​ ​ ​ ​ 3.5% ​ ​ ​
12/17/21
​ ​ ​ ​ 20,000 ​ ​ ​ ​ ​ 17,369 ​ ​ ​ ​ ​ 20,000 ​ ​
Cactus Wellhead, LLC
​ ​
(f)(j)
​ ​
Service & Equipment
​ ​
L+600
​ ​ ​ ​ 1.0% ​ ​ ​
7/31/20
​ ​ ​ ​ 41,225 ​ ​ ​ ​ ​ 39,865 ​ ​ ​ ​ ​ 41,293 ​ ​
Cimarron Energy Inc.
​ ​ ​ ​ ​
Service & Equipment
​ ​
L+1150 PIK (L+1150 Max PIK)
​ ​ ​ ​ 1.0% ​ ​ ​
12/15/19
​ ​ ​ ​ 25,470 ​ ​ ​ ​ ​ 25,470 ​ ​ ​ ​ ​ 10,379 ​ ​
CITGO Holding, Inc.
​ ​
(f)
​ ​ Downstream ​ ​
L+850
​ ​ ​ ​ 1.0% ​ ​ ​
5/12/18
​ ​ ​ ​ 26,014 ​ ​ ​ ​ ​ 26,149 ​ ​ ​ ​ ​ 26,340 ​ ​
Crestwood Holdings LLC
​ ​
(f)
​ ​ Midstream ​ ​
L+800
​ ​ ​ ​ 1.0% ​ ​ ​
6/19/19
​ ​