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.
1There 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 September 30, 2014, 69% of distributions were paid from net realized income from operations (net of waiver of base management and incentive fees and expense support); 26% came from the waiver of the base management and incentive fees; 5% from expense support from the Adviser and 0% from other sources. 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 has agreed to provide Expense Support through December 31, 2014, in order for the Company to achieve a reasonable level of expenses relative to its investment income.
2Current per-share offering price is $9.75 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. The decline in the net asset value was primarily driven by the recent impact of broad price declines in the high yield bond and leveraged loan markets, and the effect of declining oil prices on our investments in companies in the oil and gas sector.
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.