FS Energy and Power Fund participates in $500 million perpetual preferred units offering to support acquisition of compression business from Energy Transfer Partners

PHILADELPHIA — FS Investments, a leading alternative asset manager, today announced FS Energy and Power Fund’s (FSEP) participation in a directly originated $500 million perpetual preferred units offering. The financing supports USA Compression Partners, LP, in its recently announced acquisition of compression assets from Energy Transfer Partners, L.P.

USA Compression is one of the nation’s largest independent providers of compression services, an important component of midstream infrastructure and natural gas transport. For nearly 20 years, USA Compression has partnered with a broad customer base comprised of producers, processors, gatherers and transporters of natural gas.

FS Energy and Power Fund, a business development company managed by an affiliate of FS Investments, committed to provide approximately $75 million of the perpetual preferred units financing. The transaction was originated by EIG Global Energy Partners Capital Markets LLC, a broker-dealer affiliate of EIG Global Energy Partners.

“This transaction is a great example of our commitment to sourcing more directly originated, midstream-focused investment opportunities for the FSEP portfolio,” said Mike Kelly, President and Chief Investment Officer of FS Investments. “With the help of our new partner, EIG, to source and originate direct investments, we will continue to transition the FSEP portfolio for investors.”