UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
 
FORM 10-Q
(Mark One)
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2016
OR
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from               to
 
Commission file number: 814-00939
________________ 
HMS Income Fund, Inc.
(Exact Name of Registrant as Specified in its Charter)
Maryland
(State or Other Jurisdiction of
Incorporation or Organization)
 
45-3999996
(I.R.S. Employer
Identification No.)
 
 
 
2800 Post Oak Boulevard
Suite 5000
Houston, Texas
(Address of Principal Executive Offices)
 
77056-6118
(Zip Code)
 
(888) 220-6121
(Registrant’s telephone number, including area code)

Not applicable
(Former name, former address and formal fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):
Large accelerated filer o 
 
Accelerated filer o 
 
Non-accelerated filer þ 
 
Smaller reporting company o
 
 
 
 
(Do not check if a smaller
reporting company)
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes oNo þ
 
The issuer had 72,339,587 shares of common stock outstanding as of November 10, 2016.




TABLE OF CONTENTS
 
PART I — FINANCIAL INFORMATION 
Item 1.
Condensed Consolidated Financial Statements:
 
 
Condensed Consolidated Balance Sheets
 
Condensed Consolidated Statements of Operations
 
Condensed Consolidated Statements of Changes in Net Assets
 
Condensed Consolidated Statements of Cash Flows
 
Condensed Consolidated Schedules of Investments
 
Notes to the Condensed Consolidated Financial Statements
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Item 4.
Controls and Procedures
 
 
 
PART II — OTHER INFORMATION 
 
 
 
Item 1.
Legal Proceedings
Item 1A.
Risk Factors
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.
Defaults Upon Senior Securities
Item 4.
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits
 
 
 
Signatures
 
Exhibit Index
 
  



PART I — FINANCIAL INFORMATION

Item 1.    Condensed Consolidated Financial Statements

HMS Income Fund, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except share and per share amounts)
 
September 30, 2016
 
December 31, 2015
 
(Unaudited)
 
 
ASSETS
 
 
 
Portfolio investments at fair value:
 
 
 
Non-Control/Non-Affiliate investments (amortized cost: $903,671 and $866,499 as of September 30, 2016 and December 31, 2015, respectively)
$
861,365

 
$
812,205

Affiliate investments (amortized cost: $54,336 and $23,949 as of September 30, 2016 and December 31, 2015, respectively)
55,716

 
25,303

Control investments (amortized cost: $12,979 and $14,241 as of September 30, 2016 and December 31, 2015, respectively)
15,522

 
15,480

Total portfolio investments (amortized cost: $970,986 and $904,689 as of September 30, 2016 and December 31, 2015, respectively)
932,603

 
852,988

 
 
 
 
Cash and cash equivalents
40,040

 
24,001

Interest receivable
7,054

 
7,927

Receivable for securities sold
2,622

 
1,995

Prepaid and other assets
1,047

 
511

Deferred offering costs (net of accumulated amortization of $9,440 and $9,018 as of September 30, 2016 and December 31, 2015, respectively)
804

 
1,107

Deferred financing costs (net of accumulated amortization of $2,484 and $1,370 as of September 30, 2016 and December 31, 2015, respectively)
4,200

 
4,883

Total assets
$
988,370

 
$
893,412

 
 
 
 
LIABILITIES
 

 
 

Accounts payable and other liabilities
$
1,195

 
$
624

Payable for unsettled trades
709

 
—

Stockholder distributions payable
4,073

 
3,717

Due to affiliates
5,015

 
5,723

Payable for securities purchased
30,404

 
11,696

Notes payable
385,000

 
380,000

Total liabilities
426,396

 
401,760

 
 
 
 
Commitments and Contingencies (Note 11)
 
 
 
 
 
 
 
NET ASSETS
 

 
 

Common stock, $.001 par value; 150,000,000 shares authorized, 70,942,063 and 62,382,044 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively
71

 
62

Additional paid-in capital
614,043

 
546,508

Accumulated distributions in excess of net investment income
(13,370
)
 
(3,219
)
Net unrealized (depreciation)
(38,770
)
 
(51,699
)
Total net assets
561,974

 
491,652

 
 
 
 
Total liabilities and net assets
$
988,370

 
$
893,412

 
 
 
 
Net asset value per share
$
7.92

 
$
7.88


See notes to the condensed consolidated financial statements.

1


HMS Income Fund, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share amounts)
(Unaudited) 
 
Three Months Ended
 
Nine Months Ended
 
September 30, 2016
 
September 30, 2015
 
September 30, 2016
 
September 30, 2015
INVESTMENT INCOME:
 

 
 

 
 

 
 

Interest, fee and dividend income:
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
$
20,439

 
$
16,753

 
$
60,808

 
$
43,023

Affiliate investments
1,528

 
340

 
3,189

 
774

Control investments
267

 
232

 
697

 
702

Total interest, fee and dividend income
22,234

 
17,325

 
64,694

 
44,499

EXPENSES:
 

 
 

 
 

 
 

Interest expense
3,905

 
3,161

 
11,219

 
7,643

Base management and incentive fees
4,905

 
4,433

 
14,585

 
12,462

Administrative services expenses
529

 
517

 
1,636

 
1,434

Offering costs
290

 
—

 
422

 
—

Professional fees
162

 
117

 
833

 
426

Insurance
48

 
48

 
143

 
145

Other general and administrative
406

 
178

 
1,179

 
604

Expenses before fee and expense waivers
10,245

 
8,454

 
30,017

 
22,714

Waiver of incentive fees
—

 
(155
)
 
(493
)
 
(1,442
)
Waiver of administrative services expenses
(529
)
 
(517
)
 
(1,636
)
 
(1,434
)
Total expenses, net of fee and expense waivers
9,716

 
7,782

 
27,888

 
19,838

 
 
 
 
 
 
 
 
NET INVESTMENT INCOME
12,518

 
9,543

 
36,806

 
24,661

 
 
 
 
 
 
 
 
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
(1,949
)
 
(17
)
 
(11,964
)
 
130

Affiliate investments
—

 
—

 
—

 
—

Control investments
—

 
—

 
—

 
—

Total realized gain (loss) from investments
(1,949
)
 
(17
)
 
(11,964
)
 
130

 
 
 
 
 
 
 
 
NET REALIZED INCOME
10,569

 
9,526

 
24,842

 
24,791

 
 
 
 
 
 
 
 
NET UNREALIZED APPRECIATION (DEPRECIATION)
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
11,891

 
(19,554
)
 
11,187

 
(12,777
)
Affiliate investments
(108
)
 
230

 
438

 
1,260

Control investments
(7
)
 
—

 
1,304

 
—

Total net unrealized appreciation (depreciation)
11,776

 
(19,324
)
 
12,929

 
(11,517
)
 
 
 
 
 
 
 
 
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
22,345

 
$
(9,798
)
 
$
37,771

 
$
13,274

 
 
 
 
 
 
 
 
PER SHARE INFORMATION - BASIC AND DILUTED
 
 
 
 
 
 
 
NET INVESTMENT INCOME PER SHARE
$
0.18

 
$
0.18

 
$
0.55

 
$
0.55

NET REALIZED INCOME PER SHARE
$
0.15

 
$
0.18

 
$
0.37

 
$
0.55

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)
$
0.32

 
$
(0.18
)
 
$
0.57

 
$
0.29

DISTRIBUTIONS DECLARED PER SHARE
$
0.17

 
$
0.17

 
$
0.52

 
$
0.52

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED
69,729,799

 
53,110,952

 
66,576,489

 
45,129,210



See notes to the condensed consolidated financial statements.

2


HMS Income Fund, Inc.
Condensed Consolidated Statements of Changes in Net Assets
(dollars in thousands, except number of shares)
(Unaudited) 
 
 
Nine Months Ended September 30, 2016
 
Nine Months Ended September 30, 2015
Change in Net Assets from Operations:
 
 
 
 
Net investment income
 
$
36,806

 
$
24,661

Net realized gain (loss) on investments
 
(11,964
)
 
130

Net unrealized appreciation (depreciation)
 
12,929

 
(11,517
)
Net increase in net assets resulting from operations
 
37,771

 
13,274

 
 
 
 
 
Change in Net Assets from Shareholders' Distributions:
 
 
 
 
Distributions from net investment income
 
(34,994
)
 
(23,501
)
Distributions from net realized gain on investments
 
—

 
(130
)
Net decrease in net assets resulting from shareholders' distributions
 
(34,994
)
 
(23,631
)
 
 
 
 
 
Change in Net Assets from Capital Share Transactions:
 
 
 
 
Issuance of common stock, net of issuance costs
 
57,705

 
210,924

Reinvestment of shareholder distributions
 
18,263

 
11,603

Repurchase of common stock
 
(8,423
)
 
(1,445
)
Offering costs
 
—

 
(3,645
)
Net increase in net assets resulting from capital share transactions
 
67,545

 
217,437

 
 
 
 
 
Total Increase in Net Assets
 
70,322

 
207,080

Net Assets at beginning of period
 
491,652

 
260,063

Net Assets at end of the period
 
$
561,974

 
$
467,143

 
 
 
 
 
NAV at end of the period
 
$
7.92

 
$
8.35

 
 
 
 
 
Common shares outstanding, beginning of period
 
62,382,044

 
30,967,120

Issuance of common shares
 
7,328,503

 
23,805,418

Issuance of common shares pursuant to distribution reinvestment plan
 
2,311,510

 
1,308,733

Repurchase of common shares
 
(1,079,994
)
 
(168,806
)
Common shares outstanding, end of period
 
70,942,063

 
55,912,465


See notes to the condensed consolidated financial statements.


3


HMS Income Fund, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited) 
 
Nine Months Ended 
 September 30, 2016
 
Nine Months Ended 
 September 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
 

 
 

Net increase in net assets resulting from operations
$
37,771

 
$
13,274

Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
 
 
 
Principal repayments received and proceeds from sales of investments in portfolio companies
222,423

 
110,813

Investments in portfolio companies
(275,098
)
 
(533,963
)
Net unrealized (appreciation) depreciation of portfolio investments
(12,929
)
 
11,517

Net realized loss (gain) on sale of portfolio investments
11,964

 
(130
)
Amortization of deferred financing costs
1,115

 
813

Amortization of deferred offering costs
422

 
—

Accretion of unearned income
(7,778
)
 
(2,322
)
Net payment-in-kind interest accrual
(255
)
 
(716
)
Changes in other assets and liabilities:
 
 
 

Interest receivable
873

 
(3,594
)
Prepaid and other assets
(9
)
 
(229
)
Due to affiliates
342

 
5,900

Accounts payable and other liabilities
181

 
271

Payable for unsettled trades
709

 
(3,053
)
Net cash used in operating activities
(20,269
)
 
(401,419
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

Proceeds from issuance of common stock
63,447

 
227,755

Redemption of common shares
(8,423
)
 
(1,445
)
Payment of selling commissions and dealer manager fees
(5,687
)
 
(20,468
)
Payment of offering costs
(1,226
)
 
(3,644
)
Payment of stockholder distributions
(16,375
)
 
(10,607
)
Repayments on notes payable
(255,000
)
 
(106,664
)
Proceeds from notes payable
260,000

 
318,800

Payment of deferred financing costs
(428
)
 
(3,542
)
Net cash provided by financing activities
36,308

 
400,185

 
 
 
 
Net increase (decrease) in cash and cash equivalents
16,039

 
(1,234
)
 
 
 
 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
24,001

 
19,868

 
 
 
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
$
40,040

 
$
18,634

 
See notes to the condensed consolidated financial statements.


4

HMS Income Fund, Inc.
Condensed Consolidated Schedule of Investments
As of September 30, 2016
(dollars in thousands)
(Unaudited)
Portfolio Company (1) (3)
Business Description
Type of Investment (2) (3)
Index Rate (22)
Principal (7)
Cost (7)
Fair Value
 
 
 
 
 
 
 
Control Investments (6)
GRT Rubber Technologies, LLC (8) (10) (13)
Engineered Rubber Product Manufacturer
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - December 19, 2019)
1 month LIBOR
$
6,641

$
6,544

$
6,641

 
 
Member Units (2,896 shares)
—
—

6,435

8,881

 
 
 
 
 
12,979

15,522

 
 
 
 
 
 
 
Subtotal Control Investments (6) (2% of total investments at fair value)
 
 
$
12,979

$
15,522

 
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)
Provider of Rent-to-Own Financing Solutions and Services
Member Units (46 shares)
—
—

$
300

$
632

 
 
Warrants (10 equivalent shares, Expiration - November 7, 2024)
—
—

65

155

 
 
 
 
 
365

787

EIG Traverse Co-Investment, LP (9) (15)
Investment Partnership
LP Interests (EIG Traverse Co-Investment, LP) (Fully diluted 22.20%) (16)
—
—

9,805

10,028

Freeport First Lien Loan Fund III, LP (9) (15)
Investment Partnership
LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.00%) (16)
—
—

3,564

3,564

Gamber-Johnson Holdings, LLC (8) (10) (13)
Manufacturer of Ruggedized Computer Mounting Systems
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity - June 24, 2021)
1 month LIBOR
5,000

4,898

4,898

 
 
Common Stock (1,759.94 shares)
 
—

3,031

3,031

 
 
 
 
 
7,929

7,929

Guerdon Modular Holdings, Inc. (10) (13)
Multi-Family and Commercial Modular Construction Company
9.00% Current / 4.00% PIK Secured Debt (Maturity - August 13, 2019)
None
2,641

2,592

2,613

 
 
Common Stock (53,008 shares)
—
—

746

20

 
 
Class B Preferred Units (20,250 shares)
—
—

285

285

 
 
 
 
 
3,623

2,918

Gulf Publishing Holdings, LLC (10) (13)
Energy Focused Media and Publishing
12.50% Secured Debt (Maturity - April 29, 2021)
None
2,500

2,453

2,453

 
 
Member Units (781 Shares)
 
—

781

781

 
 
 
 
 
3,234

3,234

HW Temps LLC (8) (10) (13)
Temporary Staffing Solutions
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - July 2, 2020)
1 month LIBOR
2,494

2,538

2,538

 
 
Preferred Member Units (800 shares) (16)
—
—

986

1,090

 
 
 
 
 
3,524

3,628

Industrial Services Investments, LLC (11)
Industrial Cleaning Services
11.25% Current / .75% PIK, Current Coupon 12.00%, Unsecured Debt (Maturity - December 17, 2022) (17)
None
10,500

10,300

10,300

 
 
Common Stock (2,100 shares)
 
—

2,100

2,100

 
 
 
 
 
12,400

12,400

M.H. Corbin Holding, LLC (10) (13)
Manufacturer and Distributor of Traffic Safety Products
10.00% Secured Debt (Maturity - August 31, 2021)
None
3,369

3,341

3,341

 
 
Preferred Member Units (1,000 shares)
 
—

1,500

1,500

 
 
 
 
 
4,841

4,841

Mystic Logistics, Inc. (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
12.00% Secured Debt (Maturity - August 15, 2019)
None
2,294

2,243

2,294

 
 
Common Stock (1,468 shares) (16)
—
—

680

1,288

 
 
 
 
 
2,923

3,582

SoftTouch Medical Holdings LLC (8) (10) (13)
Home Provider of Pediatric Durable Medical Equipment
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - October 31, 2019)
1 month LIBOR
1,275

1,258

1,275

 
 
Member Units (785 shares) (16)
—
—

870

1,530

 
 
 
 
 
2,128

2,805

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (6% of total investments at fair value)
 
 
$
54,336

$
55,716

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (5)
AccuMed Corporation (8) (11)
Medical Device Contract Manufacturer
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - October 29, 2020)
1 month LIBOR
$
10,306

$
10,172

$
10,306

Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - November 3, 2020)
3 month LIBOR
7,955

7,812

7,753

Ahead, LLC (8) (11)
IT Infrastructure Value Added Reseller
LIBOR Plus 6.50%, Current Coupon 7.34%, Secured Debt (Maturity - November 2, 2020)
3 month LIBOR
9,625

9,373

9,601

Allflex Holdings III Inc. (8)
Manufacturer of Livestock Identification Products
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - July 19, 2021) (14)
3 month LIBOR
14,922

15,013

14,996

American Scaffold Holdings, Inc. (8) (11)
Marine Scaffolding Service Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - March 31, 2022)
1 month LIBOR
7,406

7,299

7,369

American Teleconferencing Services, Ltd. (8)
Provider of Audio Conferencing and Video Collaboration Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - December 8, 2021)
3 month LIBOR
12,187

11,015

11,897

AmeriTech College Operations, LLC (10) (13)
For-Profit Nursing and Healthcare College
10.00% Secured Debt, (Maturity - January 31, 2020)
None
375

375

375

 
 
10.00% Secured Debt, (Maturity - November 30, 2019)
None
61

60

61

 
 
10.00% Secured Debt, (Maturity - November 30, 2019)
None
64

64

64

 
 
Preferred Member Units (364 shares, 5.00% cumulative) (16)
—
—

284

284

 
 
 
 
 
783

784

AP Gaming I, LLC (8) (11)
Developer, Manufacturer, and Operator of Gaming Machines
LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - December 21, 2020)
3 month LIBOR
11,320

11,218

10,874

Apex Linen Service, Inc. (10) (13)
Industrial Launderers
13.00% Secured Debt, (Maturity - October 30, 2022)
None
3,604

3,543

3,543

 
 
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - October 30, 2022)
1 month LIBOR
600

600

600

 
 
 
 
 
4,143

4,143

Aptean, Inc. (8)
Enterprise Application Software Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - February 26, 2021) (14)
3 month LIBOR
12,500

12,307

12,320

Arcus Hunting, LLC (8) (11)
Manufacturer of Bowhunting and Archery Products and Accessories
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - November 13, 2019)
1 month LIBOR
8,461

8,326

8,372

Artel, LLC (8)
Provider of Secure Satellite Network and IT Solutions
LIBOR Plus 7.00% (Floor 1.25%), 7.25% Current/1.00% PIK, Current Coupon 8.25%, Secured Debt (Maturity - November 27, 2017)
3 month LIBOR
3,088

3,048

2,655

ATI Investment Sub, Inc. (8)
Manufacturer of Solar Tracking Systems
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - June 22, 2021)
3 month LIBOR
9,750

9,560

9,726

ATX Networks Corp. (8) (9)
Provider of Radio Frequency Management Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - June 11, 2021)
3 month LIBOR
14,813

14,567

14,516

BarFly Ventures, LLC (11)
Casual Restaurant Group
12.00% Secured Debt (Maturity - August 30, 2020)
None
1,986

1,953

1,920

 
 
Warrants (.364 equivalent units, Expiration - August 31, 2025)
—
—

158

81

 
 
Options (.731 equivalent units)
—
—

133

141

 
 
 
 
 
2,244

2,142

BBB Tank Services, LLC (10) (13)
Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
12.00% Current / 1.00% PIK, Current Coupon 13.00%, Secured Debt (Maturity - April 8, 2021)
None
1,088

1,069

1,069

 
 
Member Units (200,000 shares)
—
—

200

200

 
 
 
 
 
1,269

1,269

 
 
 
 
 
 
 
Berry Aviation, Inc. (11)
Airline Charter Service Operator
12.00% Current / 1.75% PIK, Current Coupon 13.75%, Secured Debt (Maturity - January 30, 2020) (14)
None
1,407

1,389

1,397

 
 
Common Stock (138 shares)
—
—
100

190

 
 
 
 
 
1,489

1,587

Bioventus, LLC (8) (11)
Production of Orthopedic Healing Products
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - April, 10, 2020) (14)
1 month LIBOR
7,000

6,905

7,018

Blackhawk Specialty Tools LLC (8)
Oilfield Equipment & Services
LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity - August 1, 2019)
3 month LIBOR
8,141

7,702

6,106

Blue Bird Body Company (8) (9)
School Bus Manufacturer
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - June 26, 2020)
3 month LIBOR
3,707

3,670

3,721

Bluestem Brands, Inc. (8)
Multi-Channel Retailer of General Merchandise
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - November 6, 2020)
3 month LIBOR
14,013

13,769

12,279

Brightwood Capital Fund III, LP (9) (15)
Investment Partnership
LP Interests (Brightwood Capital Fund III, LP) (Fully diluted .52%) (16)
—
—
3,825

3,532

Brundage-Bone Concrete Pumping, Inc.
Construction Services Provider
10.38% Secured Bond (Maturity - September 1, 2021) (14)
None
12,000

12,091

12,840

Buca C, LLC (8) (10) (13)
Casual Restaurant Group
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - June 30, 2020)
1 month LIBOR
14,914

14,679

14,914

 
 
Preferred Member Units (4 units, 6.00% cumulative) (16)
—
—

2,547

3,737

 
 
 
 
 
17,226

18,651

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.00% Secured Debt (Maturity - October 10, 2019)
None
945

927

945

 
 
Member Units (16,339 shares)
—
—

163

537

 
 
 
 
 
1,090

1,482

CapFusion Holding, LLC (9) (10) (13)
Business Lender
13.00% Secured Debt (Maturity - March 25, 2021)
None
3,200

2,883

2,883

 
 
Warrants (400 equivalent shares, Expiration - March 24, 2026)
—
—

300

300

 
 
 
 
 
3,183

3,183

CJ Holding Company (8) (18)
Oil and Gas Equipment and Services
Prime Plus 6.50% (Floor 3.50%), Current Coupon 10.00%, Secured Debt (Maturity - March 24, 2020) (18)
PRIME
5,940

5,212

4,973

 
 
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - March 31, 2017)
3 month LIBOR
83

82

83

 
 
 
 
 
5,294

5,056

Cenveo Corporation
Provider of Commercial Printing, Envelopes, Labels, Printed Office Products
6.00% Secured Bond (Maturity - August 1, 2019)
None
15,000

12,854

13,313

Charlotte Russe, Inc. (8)
Fast-Fashion Retailer to Young Women
LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity - May 22, 2019)
3 month LIBOR
15,101

14,901

7,475

Clarius BIGS, LLC (11) (13) (18)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,196

1,938

116

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
793

700

42

 
 
 
 
 
2,638

158

Compuware Corporation (8)
Provider of Software and Supporting Services
LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity - December 15, 2019)
3 month LIBOR
12,435

12,149

12,482

Covenant Surgical Partners, Inc.
Ambulatory Surgical Centers
8.75% Secured Debt (Maturity - August 1, 2019)
None
9,500

9,500

9,120

CRGT, Inc. (8)
Provider of Custom Software Development
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - December 18, 2020)
3 month LIBOR
10,454

10,286

10,481

CST Industries, Inc. (8)
Storage Tank Manufacturer
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity - May 22, 2017)
3 month LIBOR
2,948

2,953

2,948

Datacom, LLC (10) (13)
Technology and Telecommunications Provider
5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019)
None
1,379

1,363

1,305

 
 
Class A Preferred Member Units (1,530 units, 15.00% cumulative) (16)
—
131

131

146

 
 
Class B Preferred Member Units (717 units)
—
670

670

197

 
 
 
 
 
2,164

1,648

Digital River, Inc. (8)
Provider of Outsourced e-Commerce Solutions and Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - February 12, 2021)
3 month LIBOR
14,586

14,471

14,558

East West Copolymer & Rubber, LLC (10) (13)
Manufacturer of Synthetic Rubbers
12.00% Current / 2.00% PIK, Current Coupon 14.00%, Secured Debt (Maturity - October 17, 2019)
None
2,400

2,347

2,347

 
 
Warrants (627,697 equivalent shares, Expiration - October 15, 2024)
—
—

13

—

 
 
 
 
 
2,360

2,347

ECP-PF Holdings Groups, Inc. (11)
Fitness Club Operator
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - November 26, 2019)
3 month LIBOR
1,875

1,862

1,863

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft) (8) (9)
Technology-Based Performance Support Solutions
LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - April 28, 2022) (14)
3 month LIBOR
10,902

10,427

6,623

Flavors Holdings, Inc. (8)
Global Provider of Flavoring and Sweetening Products and Solutions
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - April 3, 2020)
3 month LIBOR
11,940

11,361

10,149

Fram Group Holdings, Inc. (8)
Manufacturer of Automotive Maintenance Products
LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity - July 29, 2017)
1 month LIBOR
7,776

7,618

7,508

GST Autoleather, Inc. (8)
Automotive Leather Manufacturer
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - July 10, 2020)
3 month LIBOR
12,204

12,065

11,975

Guitar Center, Inc.
Musical Instruments Retailer
6.50% Secured Bond (Maturity - April 15, 2019)
None
15,015

14,042

13,213

Hojeij Branded Foods, LLC (8) (11)
Multi-Airport, Multi-Concept Restaurant Operator
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - July 28, 2021)
3 month LIBOR
5,432

5,388

5,388

Horizon Global Corporation (8) (9)
Auto Parts Manufacturer
Prime Plus 5.00% (Floor 3.50%), Current Coupon 8.50%, Secured Debt (Maturity - June 30, 2021)
PRIME
12,188

12,003

12,309

Hunter Defense Technologies, Inc. (8)
Provider of Military and Commercial Shelters and Systems
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - August 5, 2019)
3 Month LIBOR
14,144

13,489

12,376

Hygea Holdings Corp. (8) (11)
Provider of Physician Services
LIBOR Plus 9.25%, Current Coupon 10.08% Secured Debt (Maturity - February 24, 2019)
3 Month LIBOR
7,875

7,322

7,454

 
 
Warrants (4,880,735 equivalent shares, Expiration - February 24, 2023)
—
—

369

490

 
 
 
 
 
7,691

7,944

iEnergizer Limited (8) (9) (12)
Provider of Business Outsourcing Solutions
LIBOR 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019)
1 month LIBOR
8,934

8,420

8,577

Indivior Finance, LLC (8) (9)
Specialty Pharmaceutical Company Treating Opioid Dependence
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - December 19, 2019)
3 month LIBOR
9,125

8,721

9,148

Industrial Container Services, LLC (8) (11)
Steel Drum Reconditioner
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - December 31, 2018)
3 month LIBOR
8,949

8,885

8,930

Inn of the Mountain Gods Resort and Casino
Hotel & Casino Owner & Operator
9.25% Secured Bond (Maturity - November 30, 2020)
None
10,749

10,575

9,782

Intertain Group Limited (8) (9)
Business-to-Consumer Online Gaming Operator
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - April 8, 2022)
1 month LIBOR
9,056

8,927

9,045

iPayment, Inc. (8)
Provider of Merchant Acquisition
LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity - May 8, 2017)
3 month LIBOR
15,115

15,063

14,360

iQor US Inc. (8)
Business Process Outsourcing Services Provider
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - April 1, 2021)
3 month LIBOR
7,777

7,330

6,747

IronGate Energy Services, LLC (18)
Oil and Gas Services
11.00% Secured Bond (Maturity - July 1, 2018) (18)
None
5,825

5,827

1,398

Jackmont Hospitality, Inc. (8) (11)
Franchisee of Casual Dining Restaurants
LIBOR Plus 4.25% (Floor 1.00%)/ 2.50% PIK , Current Coupon 7.75%, Secured Debt (Maturity - May 26, 2021)
1 month LIBOR
8,888

8,856

8,556

Joerns Healthcare, LLC (8)
Manufacturer and Distributor of Health Care Equipment & Supplies
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - May 9, 2020)
1 month LIBOR
12,203

11,963

11,593

JSS Holdings, Inc. (8)
Aircraft Maintenance Program Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - August 31, 2021)
3 month LIBOR
14,013

13,720

13,942

Kellermeyer Bergensons Services, LLC (8)
Outsourced Janitorial Services to Retail/Grocery Customers
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - April 29, 2022) (14)
3 month LIBOR
14,700

14,601

13,965

Kendra Scott, LLC (8)
Jewelry Retail Stores
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - July 17, 2020)
3 month LIBOR
9,500

9,425

9,453

Keypoint Government Solutions, Inc. (8)
Provider of Pre-Employment Screening Services
LIBOR Plus 6.50% (Floor 1.25%), Current Coupon 7.75%, Secured Debt (Maturity - November 13, 2017)
3 month LIBOR
1,829

1,824

1,820

LaMi Products, LLC (8) (11)
General Merchandise Distribution
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - September 16, 2020)
3 month LIBOR
10,735

10,556

10,708

Larchmont Resources, LLC (8) (18)
Oil & Gas Exploration & Production
Prime Plus 7.75% (Floor 3.50%), Current Coupon 11.25%, Secured Debt (Maturity - August 7, 2019) (18)
PRIME
13,230

11,956

4,234

Legendary Pictures Funding, LLC (8) (11)
Producer of TV, Film, and Comic Content
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - April 22, 2020)
3 month LIBOR
7,500

7,387

7,519

LJ Host Merger Sub, Inc. (8)
Managed Services and Hosting Provider
LIBOR Plus 4.75% (Floor 1.25%), Current Coupon 6.00%, Secured Debt (Maturity - December 13, 2019)
3 month LIBOR
4,915

4,905

4,732

Logix Acquisition Company, LLC (8) (11)
Competitive Local Exchange Carrier
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - June 24, 2021)
3 month LIBOR
8,672

8,526

8,526

Minute Key, Inc. (10) (13)
Operator of Automated Key Duplication Kiosk
10.00% Current / 2.00% PIK Secured Debt (Maturity - September 19, 2019) (14)
None
3,885

3,794

3,794

 
 
Warrants (359,352 equivalent shares, Expiration - May 20, 2025)
—
—

70

106

 
 
 
 
 
3,864

3,900

Mood Media Corporation (8) (9)
Provider of Electronic Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - May 1, 2019)
3 month LIBOR
14,860

14,848

14,148

New Media Holdings II LLC (8) (9)
Local Newspaper Operator
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - June 4, 2020)
3 month LIBOR
14,744

14,607

14,651

North American Lifting Holdings, Inc. (8)
Crane Service Provider
LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity - November 27, 2020)
3 month LIBOR
1,085

835

885

North Atlantic Trading Company, Inc. (8)
Marketer/Distributor of Tobacco
Prime Plus 5.50% (Floor 3.50%), Current Coupon 9.00%, Secured Debt (Maturity - January 13, 2020)
PRIME
10,928

10,940

10,853

Novitex Acquisition, LLC (8)
Provider of Document Management Services
LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.00%, Secured Debt (Maturity - July 7, 2020)
3 month LIBOR
11,409

11,144

10,725

NTM Acquisition Corp. (8)
Provider of B2B Travel Information Content
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - June 7, 2022)
3 month LIBOR
4,197

4,135

4,176

Pardus Oil & Gas, LLC
Oil & Gas Exploration and Production
13.00% PIK, Secured Debt (Maturity - November 12, 2021)
None
517

517

517

 
 
5.00% PIK, Secured Debt (Maturity - May 13, 2022) (14)
None
928

928

928

 
 
Class A units (1,331 shares)
—
—

1,331

1,331

 
 
 
 
 
2,776

2,776

Paris Presents, Inc. (8)
Branded Cosmetic and Bath Accessories
LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - December 31, 2021) (14)
1 month LIBOR
7,500

7,377

7,350

Parq Holdings, LP (8) (9)
Hotel and Casino Operator
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - December 17, 2020)
1 month LIBOR
12,500

12,371

12,000

Permian Holdings, Inc. (18)
Storage Tank Manufacturer
10.50% Secured Bond (Maturity - January 15, 2018) (18)
None
6,885

5,917

1,962

Pernix Therapeutics Holdings, Inc. (11)
Pharmaceutical Royalty - Anti-Migraine
12.00% Secured Bond (Maturity - August 1, 2020)
None
3,016

2,988

2,907

Pike Corporation (8)
Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - June 22, 2022) (14)
2 month LIBOR
13,334

13,061

13,275

Polycom, Inc. (8) (12)
Provider of Audio and Video Communication Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - September 27, 2023)
1 month LIBOR
12,500

12,000

12,062

Premier Dental Services, Inc. (8)
Dental Care Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - November 1, 2018)
3 month LIBOR
4,511

4,495

4,505

Prowler Acquisition Corporation (8) (12)
Specialty Distributor to the Energy Sector
LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.50%, Secured Debt (Maturity - January 28, 2020)
3 month LIBOR
11,358

9,829

8,689

Raley's, Inc. (8)
Family-Owned Supermarket Chain in California
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - May 18, 2022)
3 month LIBOR
4,230

4,157

4,238

Redbox Automated Retail, LLC (8) (12)
Operator of Home Media Entertainment Kiosks
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - September 27, 2021)
3 month LIBOR
15,000

14,550

14,700

Renaissance Learning, Inc. (8)
Technology-based K-12 Learning Solutions
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - April 11, 2022) (14)
3 month LIBOR
12,950

12,533

12,766

RGL Reservoir Operations, Inc. (8) (9)
Oil & Gas Equipment & Services
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - August 13, 2021)
3 month LIBOR
3,920

3,832

882

RLJ Entertainment, Inc. (8) (11)
Movie and TV Programming Licensee and Distributor
LIBOR Plus 8.75% (Floor 0.25%), Current Coupon 9.54%, Secured Debt (Maturity - September 11, 2019)
3 month LIBOR
7,834

7,617

7,834

RM Bidder, LLC (11)
Full-scale Film and Television Production
Common Stock (1,854 shares)
—
—

31

29

 
 
Series A Warrants (124,915 equivalent shares, Expiration - October 20, 2025)
—
—

284

200

 
 
Series B Warrants (93,686 equivalent shares, Expiration - October 20, 2025)
—
—

—

—

 
 
 
 
 
315

229

Sage Automotive Interiors, Inc (8)
Automotive Textiles Manufacturer
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - October 8, 2021) (14)
3 month LIBOR
11,927

11,864

11,807

Salient Partners, LP (8)
Provider of Asset Management Services
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - June 9, 2021)
3 month LIBOR
12,090

11,758

11,576

School Specialty, Inc. (8)
Distributor of Education Supplies and Furniture
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - June 11, 2019)
1 month LIBOR
5,467

5,390

5,413

Sigma Electric Manufacturing Corp. (8) (11)
Manufacturer and Distributor of Electrical Fittings and Parts
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - May 13, 2019)
3 Month LIBOR
9,328

9,328

9,328

Sorenson Communications, Inc.
Manufacturer of Communication Products for Hearing Impaired
9.00% Secured Bond (Maturity - October 31, 2020) (14)
None
11,710

11,287

10,304

 
 
LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity - April 30, 2020)
3 month LIBOR
2,985

2,964

2,985

 
 
 
 
 
14,251

13,289

Sotera Defense Solutions, Inc. (8)
Defense Industry Intelligence Services
LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity - April 21, 2017)
3 month LIBOR
3,220

3,172

3,091

Stardust Finance Holdings, Inc. (8)
Manufacturer of Diversified Building Products
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - March 13, 2022)
3 month LIBOR
4,971

4,841

4,955

Synagro Infrastructure Company, Inc. (8)
Waste Management Services
LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity - August 22, 2020)
3 month LIBOR
2,704

2,686

2,278

TaxAct, Inc. (8)
Provider of Tax Preparation Solutions
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - January 3, 2023)
1 month LIBOR
7,375

7,220

7,509

Teleguam Holdings, LLC (8)
Cable and Telecom Services Provider
LIBOR Plus 7.50% (Floor 1.25%), Current Coupon 8.75%, Secured Debt (Maturity - June 10, 2019) (14)
1 month LIBOR
5,540

5,548

5,512

Templar Energy, LLC
Oil & Gas Exploration & Production
Common Units (72,785 units)
—
—
728

528

Tervita Corporation (8) (9)
Oil and Gas Environmental Services
LIBOR Plus 5.00% (Floor 1.25%), Current Coupon 6.25%, Secured Debt (Maturity - May 15, 2018)
3 month LIBOR
821

826

817

The Topps Company, Inc. (8)
Trading Cards & Confectionary
LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - October 2, 2018)
3 month LIBOR
1,112

1,107

1,108

TOMS Shoes, LLC (8)
Global Designer, Distributor, and Retailer of Casual Footwear
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - October 30, 2020)
3 month LIBOR
4,925

4,566

3,644

Travel Leaders Group, LLC (8)
Travel Agency Network Provider
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - December 7, 2020)
3 month LIBOR
16,223

16,131

16,162

Unirush LLC (10) (13)
Provider of Prepaid Debit Card Solutions
12.00% Secured Debt (Maturity Date - February 1, 2019)
None
3,000

2,711

2,711

 
 
Warrants (111,181 equivalent shares, Expiration - February 2, 2026)
—
—

313

313

 
 
 
 
 
3,024

3,024

U.S. Telepacific Corp. (8) (11)
Provider of Communications and Managed Services
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - February 24, 2021)
3 month LIBOR
7,500

7,370

7,370

USJ-IMECO Holding Company, LLC (8)
Marine Interior Design and Installation
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - April 16, 2020)
3 month LIBOR
7,385

7,370

7,348

Valley Healthcare Group, LLC (8) (10) (13)
Provider of Durable Medical Equipment
LIBOR Plus 12.50% (Floor .50%), Current Coupon 13.00%, Secured Debt (Maturity - December 29, 2020)
1 month LIBOR
2,679

2,631

2,631

 
 
Preferred Member Units (400 shares)
—
—

400

400

 
 
 
 
 
3,031

3,031

VCVH Holding Corp. (8)
Healthcare Technology Services Focused on Revenue Maximization
LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.25%, Secured Debt (Maturity - June 1, 2024) (14)
3 month LIBOR
3,500

3,415

3,482

Volusion, LLC (10)
Provider of Online Software-as-a-Service eCommerce Solutions
13.00% Secured Debt (Maturity - January 24, 2020)
None
7,500

6,956

6,956

 
 
Preferred Member Units (2,090,001 shares)
—
—

6,000

6,000

 
 
Warrants (407,408 equivalent shares, Expiration - January 26, 2025)
—
—

600

600

 
 
 
 
 
13,556

13,556

Wellnext, LLC (8) (11)
Manufacturer of Supplements and Vitamins
LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 9.50%, Secured Debt (Maturity - May 23, 2021)
3 month LIBOR
10,122

10,025

10,025

Worley Claims Services, LLC (8) (11)
Insurance Adjustment Management and Services Provider
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - October 31, 2020)
1 month LIBOR
6,386

6,340

6,168

YP Holdings LLC (8)
Online and Offline Advertising Operator
LIBOR Plus 11.00% (Floor 1.25%), Current Coupon 12.25%, Secured Debt (Maturity - June 4, 2018)
1 month LIBOR
14,165

13,851

13,740

 
 
 
 
 
 
 
Subtotal Non-Control/Non-Affiliate Investments (5) (89% of total portfolio investments at fair value)
 
 
$
903,671

$
861,365

 
 
 
 
 
 
 
Total Portfolio Investments
 
 
 
 
$
970,986

$
932,603

 
 
 
 
 
 
 
Short Term Investments (20)
 
 
 
 
 
 
Fidelity Institutional Money Market Funds
—
Prime Money Market Portfolio, Class III Shares (21)
—
—
$
27,874

$
27,874

UMB Bank Money Market Account (21)
—
—
 
 
681

681

US Bank Money Market Account (21)
—
—
—
—
9,992

9,992

 
 
 
 
 
 
 
Total Short Term Investments
 
 
 
 
$
38,547

$
38,547

(1) All investments are Middle Market portfolio investments, unless otherwise noted. All of the Company's assets are encumbered as security for the Company's credit agreements. See Note 4 - Borrowings.
(2) Debt investments are income producing, unless otherwise noted. Equity investments and warrants are non-income producing, unless otherwise noted.
(3) See Note 3 - Fair Value Hierarchy for Investments for summary geographic location of portfolio companies.
(4) Affiliate investments are generally defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments in which between 5% and 25% of the voting securities are owned, or an investment in an investment company’s investment adviser, and the investments are not classified as Control investments.
(5) Non-Control/Non-Affiliate investments are generally defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(6) Control investments are generally defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.
(7) Principal is net of repayments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable.
(8) Index based floating interest rate is subject to contractual minimum interest rates.
(9) The investment is not a qualifying asset in an eligible portfolio company under Section 55(a) of the 1940 Act. A business development company (“BDC”) may not acquire any asset other than qualifying assets in eligible portfolio companies unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC's total assets. As of September 30, 2016, approximately 12.8% of the Company's investments were considered non-qualifying.
(10) Investment is classified as a Lower Middle Market investment.
(11) Investment is classified as a Private Loan portfolio investment.
(12) Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of September 30, 2016. Settlement occurred or is scheduled to occur after September 30, 2016.
(13) Investment serviced by Main Street Capital Corporation pursuant to servicing arrangements with the Company.
(14) Second lien secured debt investment.
(15) Investment is classified as an Other Portfolio investment.
(16) Income producing through dividends or distributions.
(17) Unsecured debt investment.
(18) Investment is on non-accrual status as of September 30, 2016.
(19) Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
(20) Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
(21) Effective yield as of September 30, 2016 was approximately 0.01%.
(22) The 1, 2, 3, and 6-month London Interbank Offered Rate ("LIBOR") rates were 0.53%, 0.65%, 0.85% and 1.24%, respectively, as of September 30, 2016. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of September 30, 2016, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to September 30, 2016. The prime rate was 3.50% as of September 30, 2016.

See notes to the condensed consolidated financial statements.

5


HMS Income Fund, Inc.
Condensed Consolidated Schedule of Investments
As of December 31, 2015
(dollars in thousands)
Portfolio Company (1) (3)
Business Description
Type of Investment (2) (3)
Index Rate (22)
Principal (7)
Cost (7)
Fair Value
 
 
Control Investments (6)
GRT Rubber Technologies, LLC (8) (10) (13)
Engineered Rubber Product Manufacturer
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - December 19, 2019)
1 month LIBOR
$
7,941

$
7,806

$
7,806

 
 
Member Units (2,896 shares)
—
—

6,435

7,674

 
 
 
 
 
14,241

15,480

 
 
 
 
 
 
Subtotal Control Investments (6) (2% of total portfolio investments at fair value)
 
 
$
14,241

$
15,480

 
 
 
 
 
 
 
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)
Provider of Rent-to-Own Financing Solutions and Services
11.00% Secured Debt (Maturity Date - November 7, 2019)
None
$
3,240

$
3,118

$
3,198

 
 
Member Units (46 shares)
—
—

300

505

 
 
Warrants (10 equivalent shares, Expiration - November 7, 2024)
—
—

65

122

 
 
 
 
 
3,483

3,825

EIG Traverse Co-Investment, LP (9) (15)
Investment Partnership
LP Interests (EIG Traverse Co-Investment, LP) (Fully diluted 6.6%) (16)
—
—

4,755

4,755

Freeport First Lien Loan Fund III, LP (9) (15)
Investment Partnership
LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.4%) (16)
—
—

2,077

2,077

HW Temps LLC (8) (10) (13)
Temporary Staffing Solutions
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity Date - July 2, 2020)
1 month LIBOR
2,494

2,430

2,430

 
 
Member Units (800 shares)
—
—

986

986

 
 
 
 
 
3,416

3,416

M.H. Corbin LLC (10) (13)
Manufacturer and Distributor of Traffic Safety Products
10.00% Secured Debt (Maturity Date - August 31, 2021)
None
3,500

3,467

3,467

 
 
Member Units (1,000 shares)
—
—

1,500

1,500

 
 
 
 
 
4,967

4,967

Mystic Logistics, Inc. (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
12.00% Secured Debt (Maturity Date - August 15, 2019)
None
2,362

2,299

2,361

 
 
Common Stock (1,468 shares) (16)
—
—

680

1,492

 
 
 
 
 
2,979

3,853

SoftTouch Medical Holdings LLC (8) (10) (13)
Home Provider of Pediatric Durable Medical Equipment
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity Date - October 31, 2019)
1 month LIBOR
1,425

1,402

1,402

 
 
Member Units (785 shares) (16)
—
—

870

1,008

 
 
 
 
 
2,272

2,410

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (3% of total portfolio investments at fair value)
 
 
$
23,949

$
25,303

 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (5)
AccuMed Corporation (8) (11)
Medical Device Contract Manufacturer
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - October 29, 2020)
2 month LIBOR
9,750

9,595

9,595

Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - November 3, 2020)
2 month LIBOR
9,506

9,317

9,328

Ahead, LLC (8) (11)
IT Infrastructure Value Added Reseller
LIBOR Plus 6.50%, Current Coupon 6.76%, Secured Debt (Maturity - November 2, 2020)
1 month LIBOR
10,000

9,708

9,750

Allflex Holdings III Inc. (8)
Manufacturer of Livestock Identification Products
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - July 19, 2021) (14)
3 month LIBOR
14,922

15,013

14,713

AmeriTech College Operations, LLC (10) (13)
For-Profit Nursing and Healthcare College
10.00% Secured Debt, (Maturity - January 31, 2020)
None
375

375

375

 
 
10.00% Secured Debt, (Maturity - November 30, 2019)
None
61

60

60

 
 
10.00% Secured Debt, (Maturity - May 15, 2016)
None
64

64

64

 
 
Preferred Member Units (364 shares) (16)
—
—

284

284

 
 
 
 
 
783

783

AMF Bowling Centers, Inc. (8)
Bowling Alley Operator
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - September 18, 2021)
3 month LIBOR
13,847

13,777

13,720

AP Gaming I, LLC (8) (11)
Developer, Manufacturer, and Operator of Gaming Machines
LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - December 21, 2020)
3 month LIBOR
11,407

11,290

11,036

Apex Linen Service, Inc. (10) (13)
Industrial Launderers
13.00% Secured Debt, (Maturity - October 30, 2022)
None
3,000

2,944

2,944

 
 
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - October 30, 2022)
1 month LIBOR
400

400

400

 
 
 
 
 
3,344

3,344

Aptean, Inc. (8)
Enterprise Application Software Provider
LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25%, Secured Debt (Maturity - February 26, 2020)
3 month LIBOR
4,415

4,415

4,323

Arcus Hunting, LLC (8) (11)
Manufacturer of Bowhunting and Archery Products and Accessories
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - November 13, 2019)
3 month LIBOR
4,770

4,665

4,665

Artel, LLC (8)
Land-Based and Commercial Satellite Provider
LIBOR Plus 7.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity - November 27, 2017)
3 month LIBOR
3,344

3,274

2,859

ATX Networks Corp. (8) (9)
Provider of Radio Frequency Management Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - June 11, 2021)
3 month LIBOR
14,925

14,645

14,701

BarFly Ventures, LLC (11)
Casual Restaurant Group
12.00% Secured Debt (Maturity Date - August 30, 2020)
None
1,374

1,348

1,348

 
 
Warrants (.364 equivalent shares, Expiration - August 31, 2025)
—
—

158

158

 
 
 
 
 
1,506

1,506

Berry Aviation, Inc. (11)
Airline Charter Service Operator
12.00% Current / 1.75% PIK Secured Debt (Maturity Date - January 30, 2020) (14)
None
1,407

1,386

1,386

 
 
Common Stock (138 shares)
—

—

100

100

 
 
 
 
 
1,486

1,486

Bioventus, LLC (8) (11)
Production of Orthopedic Healing Products
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - April, 10, 2020) (14)
1 month LIBOR
7,000

6,888

6,895

Blackbrush Oil and Gas LP (8)
Oil & Gas Exploration
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - July 30, 2021) (14)
3 month LIBOR
12,085

11,655

9,758

Blackhawk Specialty Tools LLC (8)
Oilfield Equipment & Services
LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 6.50%, Secured Debt (Maturity - August 1, 2019)
3 month LIBOR
8,500

8,047

7,862

Blue Bird Body Company (8)
School Bus Manufacturer
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - June 26, 2020)
3 month LIBOR
5,062

5,002

5,027

Bluestem Brands, Inc. (8) (9)
Multi-Channel Retailer of General Merchandise
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - November 6, 2020)
3 month LIBOR
14,619

14,330

13,705

Brightwood Capital Fund III, LP (9) (15)
Investment Partnership
LP Interests (Brightwood Capital Fund III, LP) (Fully diluted .52%) (16)
—
—

3,825

3,695

Brundage-Bone Concrete Pumping, Inc.
Construction Services Provider
10.38% Secured Bond (Maturity - September 1, 2021) (14)
None
10,000

10,173

9,750

Buca C, LLC (8) (10) (13)
Casual Restaurant Group
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - June 30, 2020)
1 month LIBOR
17,020

16,708

16,708

 
 
Preferred Member Units (4 units)
—
—

2,472

2,472

 
 
 
 
 
19,180

19,180

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.00% Secured Debt (Maturity Date - October 10, 2019)
None
1,165

1,138

1,165

 
 
Member Units (16,339 shares)
—
—

163

250

 
 
 
 
 
1,301

1,415

CJ Holding Company (8)
Oil and Gas Equipment and Services
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - March 24, 2020)
1 month LIBOR
5,955

5,189

3,710

Cengage Learning Acquisitions, Inc. (8)
Provider of Educational Print and Digital Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - March 31, 2020)
1 month LIBOR
15,018

15,024

14,680

Cenveo Corporation
Provider of Commercial Printing, Envelopes, Labels, Printed Office Products
6.00% Secured Bond (Maturity - August 1, 2019)
None
10,000

8,719

7,050

Charlotte Russe, Inc. (8)
Fast-Fashion Retailer to Young Women
LIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.75%, Secured Debt (Maturity - May 22, 2019)
3 month LIBOR
15,101

14,853

10,541

Clarius BIGS, LLC (11) (13) (18)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,480

2,222

412

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
896

803

149

 
 
 
 
 
3,025

561

Compuware Corporation (8)
Provider of Software and Supporting Services
LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.25%, Secured Debt (Maturity - December 15, 2019)
3 month LIBOR
14,250

13,893

13,523

Covenant Surgical Partners, Inc.
Ambulatory Surgical Centers
8.75% Secured Debt (Maturity - August 1, 2019)
None
9,500

9,500

9,263

CRGT, Inc. (8)
Provider of Custom Software Development
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - December 18, 2020)
3 month LIBOR
14,168

13,918

14,098

CST Industries, Inc. (8)
Storage Tank Manufacturer
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity - May 22, 2017)
3 month LIBOR
1,978

1,975

1,958

Datacom, LLC (10) (13)
Technology and Telecommunications Provider
10.50% Secured Debt (Maturity - May 30, 2019)
None
1,245

1,226

1,192

 
 
Preferred Member Units (1,530 units) (16)
—
—

131

131

 
 
Preferred Member Units (717 units)
—
—

670

564

 
 
 
 
 
2,027

1,887

Digital River, Inc. (8) (12)
Provider of Outsourced e-Commerce Solutions and Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - February 12, 2021)
3 month LIBOR
9,786

9,691

9,688

ECP-PF: CT Operations, Inc. (8) (11)
Fitness Club Operator
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - November 26, 2019)
3 month LIBOR
1,875

1,860

1,831

East West Copolymer & Rubber, LLC (10) (13)
Manufacturer of Synthetic Rubbers
12.00% Secured Debt (Maturity Date - October 17, 2019)
None
2,400

2,336

2,336

 
 
Warrants (627,697 equivalent shares, Expiration - October 15, 2024)
—
—

10

10

 
 
 
 
 
2,346

2,346

Energy & Exploration Partners, LLC (18)
Oil & Gas Exploration and Production
LIBOR plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - January 22, 2019) (8) (18)
3 month LIBOR
9,900

8,638

2,500

 
 
8.75% Secured Debt (Maturity - January 21, 2016)
None
233

233

233

 
 
 
 
 
8,871

2,733

Evergreen Skills Lux S.á r.l. (d/b/a Skillsoft) (8) (9)
Technology-Based Performance Support Solutions
LIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - April 28, 2022) (14)
3 month LIBOR
10,902

10,382

7,277

Extreme Reach, Inc. (8)
Integrated TV and Video Advertising Platform
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - February 7, 2020)
3 month LIBOR
6,853

6,822

6,742

Flavors Holdings, Inc. (8)
Global Provider of Flavoring and Sweetening Products and Solutions
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - April 3, 2020)
3 month LIBOR
8,438

8,135

7,509

Fram Group Holdings, Inc. (8)
Manufacturer of Automotive Maintenance Products
LIBOR Plus 5.50% (Floor 1.50%), Current Coupon 7.00%, Secured Debt (Maturity - July 29, 2017)
1 month LIBOR
8,099

7,782

6,105

GST Autoleather, Inc. (8)
Automotive Leather Manufacturer
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity Date - July 10, 2020)
3 month LIBOR
9,875

9,796

9,529

Guerdon Modular Holdings, Inc. (10) (13)
Multi-Family and Commercial Modular Construction Company
11.00% Secured Debt (Maturity - August 13, 2019)
None
2,600

2,542

2,547

 
 
Common Stock (53,008 shares)
—
—

746

497

 
 
 
 
 
3,288

3,044

Guitar Center, Inc.
Musical Instruments Retailer
6.50% Secured Bond (Maturity - April 15, 2019)
None
13,015

12,135

10,933

Halcon Resources Corporation
Oil & Gas Exploration & Production
9.75% Unsecured Bond (Maturity - July 15, 2020) (17)
None
3,000

2,630

870

Hojeij Branded Foods, Inc. (8) (11)
Multi-Airport, Multi-Concept Restaurant Operator
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity Date - July 28, 2021)
3 month LIBOR
5,330

5,280

5,280

Horizon Global Corporation (8)
Auto Parts Manufacturer
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity Date - June 30, 2021)
1 month LIBOR
12,675

12,462

12,580

Hunter Defense Technologies, Inc. (8)
Provider of Military and Commercial Shelters and Systems
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity Date - August 5, 2019)
3 month LIBOR
10,495

10,420

10,390

ICON Health and Fitness, Inc.
Producer of Fitness Products
11.88% Secured Bond (Maturity - October 15, 2016)
None
13,337

13,252

12,670

iEnergizer Limited (8) (9)
Provider of Business Outsourcing Solutions
LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019)
1 month LIBOR
4,312

4,305

3,988

Indivior Finance, LLC (8) (9)
Specialty Pharmaceutical Company Treating Opioid Dependence
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - December 19, 2019)
3 month LIBOR
9,500

9,003

8,930

Industrial Container Services, LLC (8) (11)
Steel Drum Reconditioner
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - December 31, 2018)
3 month LIBOR
4,987

4,930

4,930

Inn of the Mountain Gods Resort and Casino
Hotel & Casino Owner & Operator
9.25% Secured Bond (Maturity - November 30, 2020)
None
10,749

10,551

9,943

Intertain Group Limited (8) (9)
Business-to-Consumer Online Gaming Operator
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - April 8, 2022)
3 month LIBOR
9,938

9,783

9,914

Invenergy Thermal Operating I, LLC (8)
Power Generation
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - October 19, 2022)
3 month LIBOR
9,975

9,775

9,676

iPayment, Inc. (8) (12)
Provider of Merchant Acquisition
LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity - May 8, 2017)
3 month LIBOR
15,115

14,954

14,532

iQor US Inc. (8)
Business Process Outsourcing Services Provider
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - April 1, 2021)
3 month LIBOR
7,837

7,320

6,295

IronGate Energy Services, LLC
Oil and Gas Services
11.00% Secured Bond (Maturity - July 1, 2018)
None
5,825

5,828

3,204

Jackmont Hospitality, Inc. (8) (11)
Franchisee of Casual Dining Restaurants
LIBOR Plus 4.25% (Floor 1.00%)/ 2.50% PIK , Current Coupon 7.75%, Secured Debt (Maturity Date - May 26, 2021)
1 month LIBOR