[Context:On January 23, FS Investments announced a $500m perpetual preferred units investment in USA Compression Partners to support its strategic transaction with Energy Transfer. Further details and related links are below.]
FS Investments Provides Financing to USA Compression Partners for Strategic Transaction
FS Energy and Power Fund Participates in $500 Million Perpetual Preferred Units Offering to Support Acquisition of Compression Business from Energy Transfer Partners
PHILADELPHIA, –Jan. 23, 2018 –/PRNewswire/ — 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.”
ABOUT FS INVESTMENTS
FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth and focuses on setting industry standards for investor protection, education and transparency.
FS Investments is headquartered in Philadelphia, PA with offices in New York, NY, Orlando, FL and Washington, DC.