HMS Income Fund is a public, non-traded business development company (BDC) that focuses on income and capital appreciation. The company’s strategy is to make debt investments in syndicated middle-market companies as well as self-originated debt and equity investments in lower middle-market companies.
HMS Income Fund taps the experience and resources of Main Street Capital Corporation (“Main Street”), a publicly-traded BDC (NYSE: MAIN), through MSC Adviser I, LLC, a wholly-owned subsidiary that is the sub-adviser to the fund. The sub-adviser recommends and monitors all of HMS Income Fund’s investments, targeting investment opportunities that arise from ownership transitions, strategic acquisitions, business expansions and other growth initiatives, primarily for later stage businesses. Since its inception, Main Street has specialized in providing long-term loans and equity capital to middle-market and lower middle-market U.S. companies.
Please note: Investors are not acquiring an interest in Main Street.
1The annualized distribution rate is based on the current offering price of $9.90. There is no guarantee that the Fund will pay distributions. The amount and timing of distributions are not guaranteed. Investment income has been insufficient to fund distributions. As of March 31, 2015, 96% of distributions were paid from net realized income from operations (net of waiver of base management and incentive fees and expense support) and 4% came from the waiver of the base management and incentive fees. If the advisors had not agreed to waive their fees, these distributions would have come from investors’ paid in capital. Paying distributions from sources other than net realized income lowers an investor’s overall return. The Adviser, but not the Sub-Adviser, has agreed to extend the fee waiver until December 31, 2015.
Our previous distributions were partially funded by fee waivers agreed to by our Advisers, and by expense reimbursements from the Adviser, which may be subject to repayment to our Advisers. The reimbursement of these waived fees and expenses to our Advisers would reduce the future distributions to which you would otherwise be entitled.
2Current per-share offering price is $9.90 at maximum sales load; periodic valuations will cause offering price to fluctuate. Then-current offering price minus the sales load for dividend reinvestment plan ("DRP") shares. On January 9, 2015, HMS Income Fund, Inc. (the “Company”) decreased its public offering price from $10.00 per share to $9.75 per share. On May 7, 2015, the public offering price increased to $9.90.
Current Per-Share Offering Price2
For more information, read the prospectus for HMS Income Fund. Copies of the prospectus may be obtained from Hines Securities, Inc., 2800 Post Oak Blvd., Suite 4700, Houston, Texas 77056 or by calling 888.446.3773. You should read the prospectus carefully in order to fully understand the objectives, risks, sales charges, fees and expenses of HMS Income Fund before investing or sending money.