FS Energy enters $500 million financing arrangement

By Wendy Van Sickle

Columbus, Ohio, Sept. 12 – FS Energy and Power Fund, through two wholly owned, special purpose financing subsidiaries, entered into a financing arrangement with Barclays Bank plc under which up to $500 million will be made available to fund investments in loans and other corporate securities and for other general corporate purposes, according to an 8-K filing with the Securities and Exchange Commission.

Interest will accrue at SOFR, with a floor of zero, plus a margin ranging from 190 basis points to 420 bps, depending on the type of collateral obligations, with an overall interest floor of 3%.

Under the financing arrangement, the fund may contribute collateral obligations from time to time to FSSL Finance BB AssetCo LLC. The assets held by FSSL Finance BB AssetCo will secure its obligations under the notes issued under an indenture, dated as of Sept. 6, with Computershare Trust Co., NA as trustee.

The principal on the notes will be due on the maturity date of July 1, 2033.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.