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 March 31, 2017
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, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth 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
Emerging growth company o
 
 
(Do not check if a smaller
reporting company)
 
 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

The issuer had 77,016,232 shares of common stock outstanding as of May 12, 2017.





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)
 
March 31, 2017
 
December 31, 2016
 
(Unaudited)
 
 
ASSETS
 
 
 
Portfolio investments at fair value:
 
 
 
Non-Control/Non-Affiliate investments (amortized cost: $895,478 and $935,741 as of March 31, 2017 and December 31, 2016, respectively)
$
870,307

 
$
916,393

Affiliate investments (amortized cost: $68,758 and $53,771 as of March 31, 2017 and December 31, 2016, respectively)
72,364

 
56,312

Control investments (amortized cost: $12,787 and $12,883 as of March 31, 2017 and December 31, 2016, respectively)
16,438

 
16,542

Total portfolio investments (amortized cost: $977,023 and $1,002,395 as of March 31, 2017 and December 31, 2016, respectively)
959,109

 
989,247

 
 
 
 
Cash and cash equivalents
41,434

 
23,719

Interest receivable
7,493

 
7,204

Receivable for securities sold
8,242

 
7,610

Prepaid and other assets
1,916

 
1,268

Deferred offering costs (net of accumulated amortization of $10,309 and $9,919 as of March 31, 2017 and December 31, 2016, respectively)
677

 
680

Deferred financing costs (net of accumulated amortization of $1,926 and $2,862 as of March 31, 2017 and December 31, 2016, respectively)
4,050

 
3,840

Total assets
$
1,022,921

 
$
1,033,568

 
 
 
 
LIABILITIES
 

 
 

Accounts payable and other liabilities
$
1,233

 
$
1,164

Payable for unsettled trades
1,057

 
932

Stockholder distributions payable
4,500

 
4,354

Base management fees payable
5,149

 
5,054

Due to affiliates
274

 
184

Directors’ fees payable
15

 
12

Payable for securities purchased
7,384

 
11,035

Notes payable
386,000

 
413,000

Total liabilities
405,612

 
435,735

 
 
 
 
Commitments and Contingencies (Note 12)
 
 
 
 
 
 
 
NET ASSETS
 

 
 

Common stock, $.001 par value; 150,000,000 shares authorized, 75,668,707 and 73,382,971 issued and outstanding as of March 31, 2017 and December 31, 2016, respectively
76

 
73

Additional paid-in capital
652,985

 
633,855

Accumulated distributions in excess of net investment income
(17,741
)
 
(22,602
)
Net unrealized depreciation
(18,011
)
 
(13,493
)
Total net assets
617,309

 
597,833

 
 
 
 
Total liabilities and net assets
$
1,022,921

 
$
1,033,568

 
 
 
 
Net asset value per share
$
8.16

 
$
8.15


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
 
March 31, 2017
 
March 31, 2016
INVESTMENT INCOME:
 

 
 

From non-control/non-affiliate investments:
 
 
 
Interest income
$
22,543

 
$
20,124

Fee income
710

 
221

Dividend income
202

 
93

From affiliate investments:
 
 
 
Interest income
963

 
368

Fee income
54

 
34

Dividend income
426

 
185

From control investments:
 
 
 
Interest income
168

 
214

Fee income
21

 
20

Dividend income
277

 

Total interest, fee and dividend income
25,364

 
21,259

EXPENSES:
 

 
 

Interest expense
3,995

 
3,710

Base management and incentive fees
6,645

 
4,987

Administrative services expenses
661

 
533

Offering costs
390

 
12

Professional fees
264

 
428

Insurance
48

 
47

Other general and administrative
327

 
305

Expenses before fee and expense waivers
12,330

 
10,022

Waiver of incentive fees
(1,495
)
 
(493
)
Waiver of administrative services expenses
(661
)
 
(533
)
Total expenses, net of fee and expense waivers
10,174

 
8,996

Net investment income before taxes
15,190

 
12,263

Income tax expense (benefit), including excise tax
48

 
23

NET INVESTMENT INCOME
15,142

 
12,240

NET REALIZED GAIN (LOSS) FROM INVESTMENTS
 

 
 

Non-Control/Non-Affiliate investments
2,640

 
(646
)
Affiliate investments

 

Control investments

 

Total realized gain (loss) from investments
2,640

 
(646
)
NET REALIZED INCOME
17,782

 
11,594

NET UNREALIZED APPRECIATION (DEPRECIATION)
 

 
 

Non-Control/Non-Affiliate investments
(5,569
)
 
(16,066
)
Affiliate investments
1,060

 
485

Control investments
(7
)
 
1,318

Total net unrealized appreciation (depreciation)
(4,516
)
 
(14,263
)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
13,266

 
$
(2,669
)
 
 
 
 
PER SHARE INFORMATION - BASIC AND DILUTED
 
 
 
NET INVESTMENT INCOME PER SHARE
$
0.20

 
$
0.19

NET REALIZED INCOME PER SHARE
$
0.24

 
$
0.18

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)
$
0.18

 
$
(0.04
)
DISTRIBUTIONS DECLARED PER SHARE
$
0.17

 
$
0.17

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED
74,853,781

 
63,230,882


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) 
 
 
Three Months Ended March 31, 2017
 
Three Months Ended March 31, 2016
Change in Net Assets from Operations:
 
 
 
 
Net investment income
 
$
15,142

 
$
12,240

Net realized gain (loss) on investments
 
2,640

 
(646
)
Net unrealized depreciation
 
(4,516
)
 
(14,263
)
Net increase (decrease) in net assets resulting from operations
 
13,266

 
(2,669
)
 
 
 
 
 
Change in Net Assets from Stockholders’ Distributions:
 
 
 
 
Distributions from net investment income
 
(10,282
)
 
(11,037
)
Distributions from net realized gain on investments
 
(2,640
)
 

Net decrease in net assets resulting from stockholders’ distributions
 
(12,922
)
 
(11,037
)
 
 
 
 
 
Change in Net Assets from Capital Share Transactions:
 
 
 
 
Issuance of common stock, net of issuance costs
 
17,569

 
13,461

Reinvestment of stockholder distributions
 
6,618

 
5,794

Repurchase of common stock
 
(5,055
)
 
(1,528
)
Net increase in net assets resulting from capital share transactions
 
19,132

 
17,727

 
 
 
 
 
Total Increase in Net Assets
 
19,476

 
4,021

Net Assets at beginning of period
 
597,833

 
491,652

Net Assets at end of the period
 
$
617,309

 
$
495,673

 
 
 
 
 
NAV per share at end of the period
 
$
8.16

 
$
7.67

 
 
 
 
 
Common shares outstanding, beginning of period
 
73,382,971

 
62,382,044

Issuance of common shares
 
2,103,257

 
1,746,007

Issuance of common shares pursuant to distribution reinvestment plan
 
796,659

 
734,373

Repurchase of common shares
 
(614,180
)
 
(200,508
)
Common shares outstanding, end of period
 
75,668,707

 
64,661,916


See notes to the condensed consolidated financial statements.


3



HMS Income Fund, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited) 
 
Three Months Ended 
 March 31, 2017
 
Three Months Ended 
 March 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
 

 
 

Net increase (decrease) in net assets resulting from operations
$
13,266

 
$
(2,669
)
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Principal repayments received and proceeds from sales of investments in portfolio companies
137,798

 
47,384

Investments in portfolio companies
(110,916
)
 
(83,139
)
Net unrealized depreciation of portfolio investments
4,516

 
14,263

Net realized (gain) loss on sale of portfolio investments
(2,640
)
 
646

Amortization of deferred financing costs
387

 
363

Amortization of deferred offering costs
390

 
12

Accretion of unearned income
(4,091
)
 
(2,267
)
Net payment-in-kind interest accrual
(320
)
 
(8
)
Changes in other assets and liabilities:
 
 
 

Interest receivable
(289
)
 
(321
)
Prepaid and other assets
610

 
125

Base management fees payable
95

 
(25
)
Due to affiliates
15

 
(54
)
Directors’ fees payable
3

 

Accounts payable and other liabilities
277

 
315

Payable for unsettled trades
126

 
514

Net cash provided by (used in) operating activities
39,227

 
(24,861
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

Proceeds from issuance of common stock
19,187

 
14,760

Redemption of common shares
(5,055
)
 
(1,528
)
Payment of selling commissions and dealer manager fees
(1,555
)
 
(1,051
)
Payment of offering costs
(375
)
 
(301
)
Payment of stockholder distributions
(6,158
)
 
(5,156
)
Repayments on notes payable
(165,000
)
 
(106,000
)
Proceeds from notes payable
138,000

 
121,000

Payment of deferred financing costs
(556
)
 
(359
)
Net cash provided by (used in) financing activities
(21,512
)
 
21,365

 
 
 
 
Net increase (decrease) in cash and cash equivalents
17,715

 
(3,496
)
 
 
 
 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
23,719

 
24,001

 
 
 
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
$
41,434

 
$
20,505

 
See notes to the condensed consolidated financial statements.


4


HMS Income Fund, Inc.
Condensed Consolidated Schedule of Investments
As of March 31, 2017
(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
$
6,435

$
6,352

$
6,435

 
 
Member Units (2,896 shares)

6,435

10,003

 
 
 
 
 
12,787

16,438

Subtotal Control Investments (6) (2% of total investments at fair value)
 
 
$
12,787

$
16,438

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

$
300

$
712

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

65

172

 
 
 
 
 
365

884

Charps, LLC (10) (13)
 
12.00% Secured Debt (Maturity - January 31, 2022)
None
4,600

4,486

4,486

 
 
LIBOR Plus 7.00% (Floor 1.00%), Secured Debt (Maturity - January 31, 2019) (8)
1 month LIBOR
200

195

195

 
 
Member Units (400 units)
100

100

 
 
 
 
 
4,781

4,781

Clad-Rex Steel, LLC (10) (13)
Specialty Manufacturer of Vinyl-Clad Metal
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - December 20, 2021) (8)
1 month LIBOR
3,520

3,453

3,453

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - December 20, 2018) (8)
1 month LIBOR
100

99

99

 
 
Member Units (179 units)

1,820

1,820

 
 
10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 20, 2036)
None
301

297

297

 
 
Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)

53

53

 
 
 
 
 
5,722

5,722

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

9,805

9,973

Freeport First Lien Loan Fund III, LP (9) (15)
Investment Partnership
LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.60%) (16)

7,559

7,507

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
6,020

5,903

6,020

 
 
Member Units (2,155 units)

3,711

5,520

 
 
 
 
 
9,614

11,540

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
2,677

2,635

2,654

 
 
Common Stock (53,008 shares)

746

20

 
 
Class B Preferred Stock (101,250 shares)

285

285

 
 
 
 
 
3,666

2,959

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

2,457

2,457

 
 
Member Units (781 shares)

781

865

 
 
 
 
 
3,238

3,322

Hawk Ridge Systems, LLC (9) (10) (13)
Value-Added Reseller of Engineering Design and Manufacturing Solutions
10.00% Secured Debt (Maturity - December 2, 2021)
None
2,500

2,453

2,453

 
 
Preferred Member Units (56 units)

713

713

 
 
Preferred Member Units (HRS Services, ULC) (56 units)

38

38

 
 
 
 
 
3,204

3,204

HW Temps LLC (8) (10) (13)
Temporary Staffing Solutions
LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity - July 2, 2020)
1 month LIBOR
2,494

2,444

2,444

 
 
Preferred Member Units (800 shares) (16)

986

985

 
 
 
 
 
3,430

3,429

M.H. Corbin, Inc. (10) (13)
Manufacturer and Distributor of Traffic Safety Products
10.00% Secured Debt (Maturity - August 31, 2020)
None
$
3,281

$
3,256

$
3,256

 
 
Preferred Member Units (1,000 shares)
1,500

1,500

 
 
 
 
 
4,756

4,756

Mystic Logistics, Inc. (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
12.00% Secured Debt (Maturity - August 15, 2019)
None
2,291

2,247

2,291

 
 
Common Stock (1,468 shares) (16)
680

1,542

 
 
 
 
 
2,927

3,833

NuStep, LLC (10) (13)
Designer, Manufacturer and Distributor of Fitness Equipment
12.00% Secured Debt (Maturity - January 31, 2022)
None
5,150

5,025

5,026

 
 
Member units (102 units)
2,550

2,550

 
 
 
 
 
7,575

7,576

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
1,260

1,246

1,260

 
 
Member Units (785 units) (16)

870

1,618

 
 
 
 
 
2,116

2,878

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (7% of total investments at fair value)
 
 
$
68,758

$
72,364

 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (5)
Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity - November 3, 2020)
3 month LIBOR
$
7,223

$
7,105

$
7,223

ADS Tactical, Inc. (8) (11)
Value-Added Logistics and Supply Chain Solutions Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - December 31, 2022)
3 month LIBOR
11,471

11,198

11,198

Ahead, LLC (8) (11)
IT Infrastructure Value Added Reseller
LIBOR Plus 6.50%, Current Coupon 7.65%, Secured Debt (Maturity - November 2, 2020)
3 month LIBOR
9,375

9,157

9,281

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)
2 month LIBOR
14,922

15,012

14,953

American Scaffold Holdings, Inc. (8) (11)
Marine Scaffolding Service Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.65%, Secured Debt (Maturity - March 31, 2022)
3 month LIBOR
7,313

7,215

7,276

American Teleconferencing Services, Ltd. (8)
Provider of Audio Conferencing and Video Collaboration Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.65%, Secured Debt (Maturity - December 8, 2021)
1 week LIBOR
9,925

8,947

9,925

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.53%, Secured Debt (Maturity - June 6, 2022) (14)
3 month LIBOR
5,571

5,304

5,488

 
 
 
 
 
14,251

15,413

AmeriTech College Operations, LLC (10) (13)
For-Profit Nursing and Healthcare College
13.00% Secured Debt (Maturity - January 31, 2020)
None
375

375

375

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

61

61

 
 
13.00% Secured Debt (Maturity - November 30, 2019)
None
64

64

64

 
 
Preferred Member Units (364 units, 5.00% cumulative) (16)

752

342

 
 
 
 
 
1,252

842

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)
1 month LIBOR
11,261

11,170

11,368

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

3,546

3,546

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

600

600

 
 
 
 
 
4,146

4,146

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
6,956

6,842

6,956

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
$
7,333

$
7,108

$
7,333

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)
1 month LIBOR
9,250

9,083

9,227

ATX Networks Corp. (8) (9)
Provider of Radio Frequency Management Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity - June 11, 2021)
3 month LIBOR
14,738

14,515

14,589

BarFly Ventures, LLC (11)
Casual Restaurant Group
12.00% Secured Debt (Maturity - August 31, 2020)
None
2,599

2,555

2,545

 
 
Warrants (.410 equivalent units, Expiration - August 31, 2025)

158

94

 
 
Options (.731 equivalent units)

133

164

 
 
 
 
 
2,846

2,803

BBB Tank Services, LLC (10) (13)
Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
15% Current Secured Debt (Maturity - April 8, 2021)
None
1,007

990

998

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - April 8, 2021)
1 month LIBOR
200

200

200

 
 
Member Units (200,000 units)

200

200

 
 
 
 
 
1,390

1,398

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

1,391

1,407

 
 
Common Stock (138 shares)
100

205

 
 
 
 
 
1,491

1,612

Binswanger Enterprises, LLC (8) (11)
Glass Repair and Installation Service Provider
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity - March 9, 2022)
3 month LIBOR
15,460

15,154

15,154

 
 
Member Units (1,050,000 Class A units)
1,050

1,050

 
 
 
 
 
16,204

16,204

Bluestem Brands, Inc. (8)
Multi-Channel Retailer of General Merchandise
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - November 6, 2020)
3 month LIBOR
13,610

13,398

11,228

Brightwood Capital Fund III, LP (9) (15)
Investment Partnership
LP Interests (Brightwood Capital Fund III, LP) (Fully diluted .52%) (16)
4,075

3,424

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

12,084

12,600

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
14,136

13,938

13,938

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

2,547

2,663

 
 
 
 
 
16,485

16,601

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.00% Secured Debt (Maturity - October 10, 2019)
None
871

856

871

 
 
Member Units (16,339 units)

163

645

 
 
 
 
 
1,019

1,516

CapFusion Holding, LLC (9) (10) (13)
Business Lender
13.00% Secured Debt (Maturity - March 25, 2021)
None
3,600

3,302

3,302

 
 
Warrants (400 equivalent units, Expiration - March 24, 2026)

300

300

 
 
 
 
 
3,602

3,602

CDHA Management, LLC (8) (11)
Dental Services
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.26%, Secured Debt (Maturity - December 5, 2021)
3 month LIBOR
4,217

4,107

4,107

Cengage Learning, Inc. (8)
Provider of Educational Print and Digital Services
LIBOR Plus 4.25% (Floor 1.00%), Current Coupon 5.25%, Secured Debt (Maturity - June 7, 2023)
2 month LIBOR
9,957

9,373

9,526

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

13,178

12,372

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

$
14,936

$
9,615

Clarius BIGS, LLC (11) (18)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,144

1,886

64

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
774

681

23

 
 
 
 
 
2,567

87

Construction Supply Investments, LLC (8) (9) (11)
Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - June 30, 2023)
1 month LIBOR
8,500

8,310

8,310

 
 
Member units (20,000 units)

2,000

2,000

 
 
 
 
 
10,310

10,310

ContextMedia Health, LLC (8) (12)
Provider of Healthcare Media Content
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - December 21, 2021)
1 month LIBOR
9,875

8,912

9,875

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

9,500

9,024

CST Industries, Inc. (8)
Storage Tank Manufacturer
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.82%, Secured Debt (Maturity - May 22, 2017)
1 month LIBOR
2,759

2,767

2,731

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
1,313

1,300

1,271

 
 
8.00% Secured Debt (Maturity - May 30, 2017)
None
120

120

120

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

131

158

 
 
Class B Preferred Member Units (717 units)

670

207

 
 
 
 
 
2,221

1,756

Digital River, Inc. (8)
Provider of Outsourced e-Commerce Solutions and Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.63%, Secured Debt (Maturity - February 12, 2021)
3 month LIBOR
14,586

14,483

14,659

Digital Room, LLC (8)
Organic Lead Generation for Online Postsecondary Schools
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - November 21, 2022)
1 month LIBOR
7,530

7,385

7,454

East West Copolymer & Rubber, LLC (10) (13) (18)
Manufacturer of Synthetic Rubbers
12.00% Current / 2.00% PIK, Current Coupon 14.00%, Secured Debt (Maturity - October 17, 2019) (18)
None
2,400

2,355

554

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

13


 
 
 
 
 
2,368

554

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

1,864

1,875

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)
1 month LIBOR
10,902

10,459

7,618

Flavors Holdings, Inc. (8)
Global Provider of Flavoring and Sweetening Products and Solutions
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.90%, Secured Debt (Maturity - April 3, 2020)
3 month LIBOR
12,962

12,231

11,196

GST Autoleather, Inc. (8)
Automotive Leather Manufacturer
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.65%, Secured Debt (Maturity - July 10, 2020)
3 month LIBOR
12,194

12,071

11,935

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

14,214

12,613

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
5,762

5,722

5,762

Hoover Group, Inc. (8) (9) (11)
Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity - January 28, 2021)
3 month LIBOR
14,962

13,976

13,976

Hunter Defense Technologies, Inc. (8)
Provider of Military and Commercial Shelters and Systems
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.01%, Secured Debt (Maturity - August 5, 2019)
3 Month LIBOR
13,550

13,023

12,602

iEnergizer Limited (8) (9)
Provider of Business Outsourcing Solutions
LIBOR 6.00% (Floor 1.25%), Current Coupon 7.25%, Secured Debt (Maturity - May 1, 2019)
1 month LIBOR
12,698

12,289

12,650

Indivior Finance, LLC (8) (9)
Specialty Pharmaceutical Company Treating Opioid Dependence
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.04%, Secured Debt (Maturity - December 19, 2019)
3 month LIBOR
8,750

8,429

8,816

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)
2 month LIBOR
$
8,688

$
8,639

$
8,688

Industrial Services Acquisitions, LLC (11)
Industrial Cleaning Services
11.25% Current / 0.75% PIK, Current Coupon 12.00%, Unsecured Debt (Maturity - December 17, 2022) (17)
None
10,543

10,351

10,350

 
 
Member units (Industrial Services Investments, LLC) (2,100,000 units)

2,100

1,890

 
 
 
 
 
12,451

12,240

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

10,592

9,674

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
8,542

8,386

8,628

iPayment, Inc. (8)
Provider of Merchant Acquisition
LIBOR Plus 5.25% (Floor 1.50%), Current Coupon 6.75%, Secured Debt (Maturity - May 8, 2017)
1 month LIBOR
17,507

17,507

17,419

Ipreo Holdings, LLC
Application Software for Capital Markets
7.25% Unsecured Debt (Maturity - August 1, 2022) (17)
None
6,250

5,350

5,719

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
7,737

7,332

7,573

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

5,827

2,126

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
8,893

8,865

8,893

Joerns Healthcare, LLC (8)
Manufacturer and Distributor of Health Care Equipment & Supplies
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.21%, Secured Debt (Maturity - May 9, 2020)
3 month LIBOR
12,141

11,901

10,927

Kellermeyer Bergensons Services, LLC (8)
Outsourced Janitorial Services to Retail/Grocery Customers
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.54%, Secured Debt (Maturity - April 29, 2022) (14)
3 month LIBOR
14,700

14,607

14,112

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
1,693

1,690

1,684

LaMi Products, LLC (8) (11)
General Merchandise Distribution
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.62%, Secured Debt (Maturity - September 16, 2020)
3 month LIBOR
11,044

10,884

11,017

Larchmont Resources, LLC (8)
Oil & Gas Exploration & Production
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00% PIK, Secured Debt (Maturity - August 7, 2020)
3 month LIBOR
3,912

3,912

3,897

 
 
Member units (Larchmont Intermediate Holdo, LLC) (4,806 units)

601

1,622

 
 
 
 
 
4,513

5,519

Legendary Pictures Funding, LLC (8) (11)
Producer of TV, Film, and Comic Content
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity - April 22, 2020)
3 month LIBOR
8,020

7,912

8,030

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
4,777

4,769

4,680

Logix Acquisition Company, LLC (8) (11)
Competitive Local Exchange Carrier
LIBOR Plus 8.28% (Floor 1.00%), Current Coupon 9.29%, Secured Debt (Maturity - June 24, 2021)
3 month LIBOR
8,515

8,383

8,515

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
3,925

3,847

3,847

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

70

200

 
 
 
 
 
3,917

4,047

Mood Media Corporation (8) (9)
Provider of Electronic Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity - May 1, 2019)
3 month LIBOR
14,784

14,715

14,716

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)
1 month LIBOR
17,162

17,036

17,076

NNE Issuer, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 8.00%, Current Coupon 8.79%, Secured Debt (Maturity - March 2, 2022)
1 month LIBOR
$
7,292

$
7,220

$
7,220

North American Lifting Holdings, Inc. (8)
Crane Service Provider
LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity - November 27, 2020)
3 month LIBOR
6,359

5,573

6,004

Novitex Acquisition, LLC (8)
Provider of Document Management Services
LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.07%, Secured Debt (Maturity - July 7, 2020)
3 month LIBOR
13,235

12,936

13,231

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)
1 month LIBOR
4,091

4,035

4,070

Pardus Oil & Gas, LLC
Oil & Gas Exploration and Production
13.00% PIK, Secured Debt (Maturity - November 12, 2021)
None
989

989

928

 
 
5.00% PIK, Secured Debt (Maturity - May 13, 2022) (14)
None
517

517

252

 
 
Class A units (1,331 units)

1,331


 
 
 
 
 
2,837

1,180

Paris Presents, Inc. (8)
Branded Cosmetic and Bath Accessories
LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity - December 31, 2021) (14)
1 month LIBOR
7,500

7,387

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

12,384

12,469

Permian Holdco 2, Inc.
Storage Tank Manufacturer
14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)
None
511

511

511

 
 
Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 units) (12.00% Cumulative) (16)

1,047

1,047

 
 
Common Shares (Permian Holdco 1, Inc.) (386,255 units)

997

997

 
 
 
 
 
2,555

2,555

Permian Holdings, Inc.
Storage Tank Manufacturer
10.50% Secured Debt (Maturity - January 15, 2018)
None
1,000

452

280

Pernix Therapeutics Holdings, Inc. (11)
Pharmaceutical Royalty - Anti-Migraine
12.00% Secured Debt (Maturity - August 1, 2020)
None
2,812

2,788

1,007

Pike Corporation (8)
Construction and Maintenance Services for Electric Transmission and Distribution Infrastructure
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - June 22, 2022) (14)
3 month LIBOR
3,000

2,970

3,053

PPC/Shift, LLC (8) (11)
Provider of Digital Solutions to Automotive Industry
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - December 22, 2021)
3 month LIBOR
6,956

6,814

6,823

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)
1 month LIBOR
4,511

4,498

4,499

Prowler Acquisition Corporation (8)
Specialty Distributor to the Energy Sector
LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.65%, Secured Debt (Maturity - January 28, 2020)
3 month LIBOR
12,511

10,919

10,321

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)
1 month LIBOR
4,160

4,093

4,197

Redbox Automated Retail, LLC (8)
Operator of Home Media Entertainment Kiosks
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - September 27, 2021)
1 month LIBOR
13,125

12,754

13,141

Renaissance Learning, Inc. (8)
Technology-based K-12 Learning Solutions
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity - April 11, 2022) (14)
3 month LIBOR
12,950

12,562

12,945

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)
1 month LIBOR
3,900

3,820

1,034

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

31

22

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

284


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



 
 
 
 
 
315

22

Salient Partners, LP (8)
Provider of Asset Management Services
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - June 9, 2021)
3 month LIBOR
$
11,516

$
11,219

$
11,055

School Specialty, Inc. (8)
Distributor of Education Supplies and Furniture
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.51%, Secured Debt (Maturity - June 11, 2019)
1 month LIBOR
5,222

5,162

5,235

SG Acquisition, Inc. (8) (12)
Finance and Insurance Services to the Automotive Industry
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - March 29, 2024)
3 month LIBOR
4,875

4,729

4,802

Sigma Electric Manufacturing Corp. (8) (9) (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
12,500

12,212

12,212

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

11,330

10,890

 
 
LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity - April 30, 2020)
3 month LIBOR
2,969

2,951

2,981

 
 
 
 
 
14,281

13,871

Strike, LLC (8)
Pipeline Construction and Maintenance Services
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.29%, Secured Debt (Maturity - November 30, 2022)
6 month LIBOR
9,875

9,556

10,073

Synagro Infrastructure Company, Inc. (8)
Waste Management Services
LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.40%, Secured Debt (Maturity - August 22, 2020)
3 month LIBOR
2,704

2,688

2,494

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
5,550

5,430

5,599

TE Holdings, LLC
Oil & Gas Exploration & Production
Common Units (72,785 units)
728

519

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
6,397

6,388

6,413

 
 
LIBOR Plus 4.00% (Floor 1.25%), Current Coupon 5.25%, Secured Debt (Maturity - December 10, 2018)
1 month LIBOR
7,461

7,334

7,466

 
 
 
 
 
13,722

13,879

TMC Merger Sub Corp (8)
Refractory & Maintenance Services Provider
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - October 31, 2022)
1 month LIBOR
14,922

14,778

14,922

TOMS Shoes, LLC (8)
Global Designer, Distributor, and Retailer of Casual Footwear
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.55%, Secured Debt (Maturity - October 30, 2020)
3 month LIBOR
4,900

4,580

3,315

Turning Point Brands, Inc. (8) (9) (11)
Marketer/Distributor of Tobacco Products
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.15%, Secured Debt (Maturity - May 17, 2022)
1 month LIBOR
8,500

8,417

8,417

TVG-I-E CMN Acquisition, LLC (8) (11)
Organic Lead Generation for Online Postsecondary Schools
LIBOR Plus 6.00%, Current Coupon 7.00%, Secured Debt (Maturity - November 3, 2021)
1 month LIBOR
6,419

6,298

6,298

U.S. Telepacific Corp. (8) (11)
Provider of Communications and Managed Services
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.62%, Secured Debt (Maturity - February 24, 2021)
3 month LIBOR
7,500

7,382

7,500

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)
1 month LIBOR
8,835

8,808

8,791

Valley Healthcare Group, LLC (8) (10) (13)
Provider of Durable Medical Equipment
LIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.12%, Secured Debt (Maturity - December 29, 2020)
1 month LIBOR
3,214

3,161

3,161

 
 
Preferred Member Units (Valley Healthcare Holding, LLC) (400 units)

400

400

 
 
 
 
 
3,561

3,561

VCVH Holding Corp. (8)
Healthcare Technology Services Focused on Revenue Maximization
LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.40%, Secured Debt (Maturity - June 1, 2024) (14)
3 month LIBOR
3,500

3,418

3,474

VIP Cinema Holdings, Inc. (8)
Supplier of Luxury Seating to the Cinema Industry
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - March 1, 2023)
1 week LIBOR
10,000

9,951

10,119

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vistar Media, Inc. (8) (11)
Operator of Digital Out-of-Home Advertising Platform
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.15%, Secured Debt (Maturity - February 16, 2022)
3 month LIBOR
$
4,500

$
4,084

$
4,084

 
 
Warrants (64,025 equivalent units, February 17, 2027)
331

331

 
 
 
 
 
4,415

4,415

Volusion, LLC (10) (13)
Provider of Online Software-as-a-Service eCommerce Solutions
11.50% Secured Debt (Maturity - January 24, 2020)
None
7,500

6,545

6,545

 
 
Preferred Member Units (2,090,001 units)

6,000

6,000

 
 
Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)

1,104

1,050

 
 
 
 
 
13,649

13,595

Wellnext, LLC (8) (11)
Manufacturer of Supplements and Vitamins
LIBOR Plus 9.00% (Floor 0.50%), Current Coupon 10.00%, Secured Debt (Maturity - May 23, 2021)
3 month LIBOR
9,994

9,906

9,994

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
6,354

6,313

6,354

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
15,252

15,054

15,223

 
 
 
 
 
 
 
Subtotal Non-Control/Non-Affiliate Investments (5) (87% of total portfolio investments at fair value)
 
 
$
895,478

$
870,307

 
 
 
 
 
 
 
Total Portfolio Investments
 
 
 
 
$
977,023

$
959,109

 
 
 
 
 
 
 
Short Term Investments (20)
 
 
 
 
 
 
Fidelity Institutional Money Market Funds (21)
Prime Money Market Portfolio, Class III Shares
$
9,509

$
9,509

UMB Bank Money Market Account (21)
 
 
457

457

US Bank Money Market Account (21)
29,006

29,006

 
 
 
 
 
 
 
Total Short Term Investments
 
 
 
 
$
38,972

$
38,972

(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 5 - 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 March 31, 2017, approximately 16.6% 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 March 31, 2017. Settlement occurred or is scheduled to occur after March 31, 2017.
(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 March 31, 2017.
(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 March 31, 2017 was approximately 0.01%.
(22) The 1 week, and 1, 2, 3, and 6-month London Interbank Offered Rate (“LIBOR”) rates were 0.96%, 0.98%, 1.03%, 1.15% and 1.42%, respectively, as of March 31, 2017. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2017, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2017. The prime rate was 4.00% as of March 31, 2017.

See notes to the condensed consolidated financial statements.

5



HMS Income Fund, Inc.
Condensed Consolidated Schedule of Investments
As of December 31, 2016
(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
$
6,538

$
6,448

$
6,538

 
 
Member Units (2,896 shares)

6,435

10,004

 
 
 
 
 
12,883

16,542

 
 
 
 
 
 
 
Subtotal Control Investments (6) (2% of total investments at fair value)
 
 
$
12,883

$
16,542

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

$
300

$
687

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

65

167

 
 
 
 
 
365

854

Clad-Rex Steel, LLC (10) (13)
Specialty Manufacturer of Vinyl-Clad Metal
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - December 20, 2021) (8)
1 month LIBOR
3,520

3,449

3,449

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - December 20, 2018) (8)
1 month LIBOR
100

99

99

 
 
Member Units (179 units)

1,820

1,820

 
 
10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 20, 2036)
None
301

298

298

 
 
Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)

53

53

 
 
 
 
 
5,719

5,719

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

9,805

9,905

Freeport First Lien Loan Fund III, LP (9) (15)
Investment Partnership
LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.60%) (16)

4,763

4,763

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
6,020

5,902

5,964

 
 
Member Units (2,155 units)
 

3,711

4,730

 
 
 
 
 
9,613

10,694

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
2,668

2,621

2,642

 
 
Common Stock (53,008 shares)

746

20

 
 
Class B Preferred Stock (101,250 shares)

285

285

 
 
 
 
 
3,652

2,947

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

2,455

2,455

 
 
Member Units (781 shares)
 

781

781

 
 
 
 
 
3,236

3,236

Hawk Ridge Systems, LLC (9) (10) (13)
Value-Added Reseller of Engineering Design and Manufacturing Solutions
10.00% Secured Debt (Maturity - December 2, 2021)
None
2,500

2,451

2,451

 
 
Preferred Member Units (56 units)

713

713

 
 
Preferred Member Units (HRS Services, ULC) (56 units)

38

38

 
 
 
 
 
3,202

3,202

HW Temps LLC (8) (10) (13)
Temporary Staffing Solutions
LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 14.00%, Secured Debt (Maturity - July 2, 2020)
1 month LIBOR
2,644

2,591

2,591

 
 
Preferred Member Units (800 shares) (16)

986

985

 
 
 
 
 
3,577

3,576

M.H. Corbin Holding, LLC (10) (13)
Manufacturer and Distributor of Traffic Safety Products
10.00% Secured Debt (Maturity - August 31, 2021)
None
3,325

3,299

3,299

 
 
Preferred Member Units (1,000 shares)
 

1,500

1,500

 
 
 
 
 
4,799

4,799

 
 
 
 
 
 
 
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

$
2,246

$
2,294

 
 
Common Stock (1,468 shares) (16)

680

1,445

 
 
 
 
 
2,926

3,739

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
1,260

1,244

1,260

 
 
Member Units (785 units) (16)

870

1,618

 
 
 
 
 
2,114

2,878

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (6% of total investments at fair value)
 
 
$
53,771

$
56,312

 
 
 
 
 




Non-Control/Non-Affiliate Investments (5)
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
$
7,589

$
7,459

$
7,589

ADS Tactical, Inc. (8) (11)
Value-Added Logistics and Supply Chain Solutions Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - December 31, 2022)
3 month LIBOR
10,000

9,750

9,750

Ahead, LLC (8) (11)
IT Infrastructure Value Added Reseller
LIBOR Plus 6.50%, Current Coupon 7.50%, Secured Debt (Maturity - November 2, 2020)
3 month LIBOR
9,500

9,267

9,536

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)
6 month LIBOR
14,922

15,012

14,936

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
7,359

7,257

7,323

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
10,056

9,122

9,848

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - June 6, 2022) (14)
3 month LIBOR
5,571

5,353

5,353

 
 
 
 
 
14,475

15,201

AmeriTech College Operations, LLC (10) (13)
For-Profit Nursing and Healthcare College
13.00% Secured Debt (Maturity - January 31, 2020)
None
375

375

375

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

61

61

 
 
13.00% Secured Debt (Maturity - November 30, 2019)
None
64

64

64

 
 
Preferred Member Units (364 units, 5.00% cumulative) (16)

284

284

 
 
 
 
 
784

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
11,291

11,194

11,267

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

3,545

3,545

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

600

600

 
 
 
 
 
4,145

4,145

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
6,973

6,850

6,973

Artel, LLC (8) (12)
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
5,173

5,000

4,837

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)
1 month LIBOR
9,500

9,322

9,476

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
14,775

14,541

14,516

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

$
1,953

$
1,942

 
 
Warrants (.410 equivalent units, Expiration - August 31, 2025)

158

94

 
 
Options (.731 equivalent units)

133

164

 
 
 
 
 
2,244

2,200

BBB Tank Services, LLC (10) (13)
Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
15% Current Secured Debt (Maturity - April 8, 2021)
None
1,007

989

989

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - April 8, 2021)
1 month LIBOR
200

200

200

 
 
Member Units (200,000 units)

200

200

 
 
 
 
 
1,389

1,389

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

1,390

1,407

 
 
Common Stock (138 shares)
100

205

 
 
 
 
 
1,490

1,612

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
13,812

13,582

12,039

Brightwood Capital Fund III, LP (9) (15)
Investment Partnership
LP Interests (Brightwood Capital Fund III, LP) (Fully diluted .52%) (16)
4,075

3,698

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

12,088

12,960

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
15,114

14,889

15,114

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

2,547

3,110

 
 
 
 
 
17,436

18,224

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.00% Secured Debt (Maturity - October 10, 2019)
None
921

904

921

 
 
Member Units (16,339 units)

163

620

 
 
 
 
 
1,067

1,541

CapFusion Holding, LLC (9) (10) (13)
Business Lender
13.00% Secured Debt (Maturity - March 25, 2021)
None
3,600

3,289

3,289

 
 
Warrants (400 equivalent units, Expiration - March 24, 2026)

300

300

 
 
 
 
 
3,589

3,589

CDHA Management, LLC (8) (11)
Dental Services
Prime Plus 6.25% (Floor 3.75%), Current Coupon 10.00%, Secured Debt (Maturity - December 5, 2021)
PRIME
4,491

4,376

4,376

 
 
Prime Plus 6.25% (Floor 3.75%), Current Coupon 10.00%, Secured Debt (Maturity - December 5, 2021)
PRIME



 
 
 
 
 
4,376

4,376

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

13,013

13,388

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

14,918

9,184

CJ Holding Company (8)
Oil and Gas Equipment and Services
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - March 31, 2017)
3 month LIBOR
83

85

83

Clarius BIGS, LLC (11) (18)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,144

1,886

64

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
774

681

23

 
 
 
 
 
2,567

87

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
12,265

12,004

12,341

Construction Supply Investments, LLC (8) (11)
Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - June 30, 2023)
3 month LIBOR
$
8,500

$
8,305

$
8,330

 
 
Member units (20,000 units)

2,000

2,000

 
 
 
 
 
10,305

10,330

ContextMedia Health, LLC (8) (12)
Provider of Healthcare Media Content
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - December 21, 2021)
1 month LIBOR
10,000

9,000

9,150

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

9,500

9,168

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)
1 month LIBOR
9,642

9,492

9,666

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
2,759

2,766

2,759

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
1,296

1,282

1,222

 
 
8.00% Secured Debt (Maturity - May 30, 2017)
100

100

100

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

131

152

 
 
Class B Preferred Member Units (717 units)

670