FS Energy amends credit agreement, trims revolver to $185 million

By Sarah Lizee

Olympia, Wash., April 9 – FS Energy and Power Fund entered into an amendment and waiver to its senior secured credit agreement with JPMorgan Chase Bank, NA as administrative agent on Thursday, lowering revolving loan commitments to $185 million, which is equal to the amount of currently outstanding revolving loans under facility, according to an 8-K filing with the Securities and Exchange Commission.

Upon the occurrence of some events and subject to some specified thresholds, the amendment would require the company to make some prepayments of outstanding loans and additional reductions of the revolving commitments.

The amendment also reduces the minimum shareholders’ equity the company is required to maintain as of the end of each fiscal quarter to $900 million for the fiscal quarters ending in March, June and September of 2020 and $1.15 billion for each fiscal quarter onwards.

Additionally, the amendment restricts the ability of the company to make most discretionary cash dividends and distributions and other restricted payments.

The company incurred customary fees, costs and expenses in connection with the closing of the amendment.

FS Energy is a Philadelphia-based investment company that invests primarily in income-oriented securities of privately held energy- and power-related companies.

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