Intend to explore a potential liquidity event between 4-6 years following the end of the offering period; no finite date and there is no guarantee that such a liquidity event will occur.1
1We do not intend to list the shares on any securities exchange during the offering period, and we do not expect a secondary market in the shares to develop in the near future. Therefore, if you purchase shares you will likely have limited ability to sell your shares. We may explore a potential liquidity event.
2The board of directors has the discretion to suspend or terminate the share repurchase program to the extent that it determines that it is in our best interest to do so.
3Other expenses are based on a projection of expenses we expect to incur in connection with administering our business during the following twelve months, including, specifically, fees pertaining to legal and audit services and the cost of our independent directors. Also included is an estimate of internal administrative expenses, which include our allocable portion of the cost of our chief financial and chief compliance officers, and other administrative personnel. The reimbursement of administrative service expenses was waived through December 31, 2016. The amount annual expenses is based on assumptions about the amount of common stock that we sell in a 12 month period, the amount of funds that we borrow and the net assets that we might achieve and does not reflect the impact of the waiver of administrative expenses.
4There is no assurance that the Fund will pay distributions. The amount and timing of distributions are not guaranteed. Investment income has been insufficient to fund distributions due to the incentive fee on income, which the Adviser and Sub-Adviser have agreed to waive. For the nine months ended September 30, 2016, 70% of distributions were paid from net realized income from operations (before the waiver of the incentive fee on income), 1% came from the waiver of the incentive fee on income, and 29% came from distributions in excess of net investment income, which represents adjustments made to GAAP basis net investment income to arrive at taxable income available for distributions. 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.
5Price effective as of the Company's January 19, 2017 weekly closing. Based upon the calculated NAV, the pricing committee reviews the offering price to ensure that shares are not being offered at a price, after deduction of selling commissions and dealer manager fees, below NAV per share. Periodic valuations will cause offering price to fluctuate.
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.
Annualized Distribution Rate4
Current Per-Share Offering Price5