FS Credit Income Fund (FCRUX) · NASDAQ:FCRUX
FS Credit Income Fund (FCRUX) — FS Energy & Power Fund — Q1 2021 Earnings Presentation
20 slides from FS Credit Income Fund (FCRUX)'s earnings presentation, May 18, 2021
Slide 1: Welcome
Welcome • Please submit your questions using the Q&A box. • Google Chrome is the optimal browser for viewing this webinar. • If you are experiencing difficulties viewing the slides please refresh your browser and ensure that you have enabled Adobe Flash Media Player. • If you are experiencing diffic
Slide 2: FS Energy & Power Fund Portfolio and performance update
FS Energy & Power Fund Portfolio and performance update MAY 18, 2021 2
Slide 3: Agenda & topics for discussion
Agenda & topics for discussion Agenda Topics for discussion 1. Energy market update • What is the status of the distribution? 2. Portfolio & fund update • What is the status of the quarterly tender? • Will the Fund provide any enhanced ability to 3. Market & fund outlook tender small balance account
Slide 4: Energy market overview
1 Energy market overview 4
Slide 5: Energy market update
Energy market update Oil price rally Natural gas optimism Tight energy credit spreads • Global prices have maintained • Outlook remains constructive with • With credit spreads approaching multi- strength, with the market reduced associated gas production year tights, the pace of capital raising, ant
Slide 6: Energy asset prices continue recovery
Energy asset prices continue recovery Energy equities1 Energy bonds & loans2 TOTAL RETURN (INDEXED TO JANUARY 1, 2020) TOTAL RETURN (INDEXED TO JANUARY 1, 2020) 40% 20% 10% 20% 0% 0% -10% -20% -20% -40% High yield bonds -30% High yield energy bonds -60% -40% Loans Energy Loans -80% -50% S&P 500 S&P
Slide 7: Q1 2021 performance & portfolio update
2 Q1 2021 performance & portfolio update 7
Slide 8: Q1 2021 performance summary
Q1 2021 performance summary • NAV rose nearly 9% to $3.53 per share from $3.25 per share at 12/31/2020, driven by: Q1 performance o Appreciation in recently restructured equity investments summary o Broad-based increase across the book, as energy prices rallied and spreads tightened in Q1 • Continue
Slide 9: Q1 2021 portfolio summary
Q1 2021 portfolio summary $2.2B $1.7B 86% 55 Cumulative investments & commitments Portfolio allocation to direct Portfolio companies Portfolio fair value to EIG direct originations1,2 originations Asset type3 Subsector3 28% Senior secured loans – 1st lien 47% Upstream 8% Senior secured loans – 2nd l
Slide 10: Snapshot of portfolio as of March 31, 2021
Snapshot of portfolio as of March 31, 2021 FS/EIG Advisor Legacy assets Non-accruals 67% of the portfolio has 33% of the portfolio is 13.7% of the portfolio was been sourced through comprised of older on non-accrual. FS/EIG Advisor, with a vintage, legacy assets. focus on senior secured The Fund con
Slide 11: NAV bridge by asset class
NAV bridge by asset class Restructured equity investments led the recovery in the first quarter Contributors/Detractors Class Issuer Name Per Share Impact Common Equity Maverick, Denbury, $0.18 Great Western Preferred Equity NGL Energy $0.06 Senior Secured Bonds Limetree Bay ($0.08) Past performance
Slide 12: Q1 2021 restructurings
Q1 2021 restructurings Issuer Name Restructured Security FMV at restructuring ($M)1 New Security Notes Distribution suspended, received NGL Energy Preferred Equity $109.4 Preferred Equity $10M consent fee Secured Bonds rolled into new 2nd lien Secured Bonds & 2nd lien loan & Great Western $52.3 loan
Slide 13: Material reduction in leverage over the past year
Material reduction in leverage over the past year Debt outstanding ($M) Senior secured notes $1.3B JP Morgan facility Goldman facility $500 $1.1B $489 $906M $720M $489 $417 $489 $417 $425 $417 $200 $231 3/31/2020 7/1/2020 $0 12/31/2020 $0 3/31/2021 Debt-to-equity ratio 0.86x 0.71x 0.63x 0.46x Asset
Slide 14: Focus areas
3 Focus areas 14
Slide 15: Focus areas for 2021
Focus areas for 2021 Anticipated Timing Continuous with a growing Continue seeking to stabilize portfolio and invest in secured, directly originated 1 backlog of direct investment opportunities to mitigate portfolio concentration opportunities Divest equity and non-income producing investments as ma
Slide 16: Resources
Resources fsinvestments.com/resources/fs-energy-power-fund-update Fund updates Fund commentary Shareholder notices 16
Slide 17: Disclosures
Disclosures An investment in FS Energy and Power Fund involves a high degree of risk and may be considered speculative. Investors are advised to read and carefully consider the risk factors and other important information found in FS Energy and Power Fund’s reports filed with the U.S. Securities and
Slide 18: Risk factors
Risk factors The following are some of the risks an investment in our common shares involves; however, you should carefully consider all of the information found in FSEP's Annual Report on Form 10-K and other reports filed with the SEC: • Because there is no public trading market for our common shar
Slide 19: Risk factors
Risk factors • FSEP is a long-term investment for persons of adequate financial means who have no need for liquidity in their investment. To invest in FSEP, an investor must have either (i) a net worth of at least $70,000 and an annual gross income of at least $70,000, or (ii) a net worth of at leas
Slide 20: Questions?
Questions?
FS Energy & Power Fund — Q1 2021 Earnings Presentation on 6ix