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 June 30, 2018
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 79,328,553 shares of common stock outstanding as of August 13, 2018.

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TABLE OF CONTENTS

 

PART I — FINANCIAL INFORMATION 

Item 1.	Condensed Consolidated Financial Statements:
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Changes in Net Assets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Schedules of Investments	5
	Notes to the Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	60
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1A.	Risk Factors	61
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	61
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	62
Item 6.	Exhibits	63
Signatures		64

  

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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)

	June 30, 2018				December 31, 2017
	(Unaudited)
ASSETS
Portfolio investments at fair value:
Non-Control/Non-Affiliate investments (amortized cost: $952,064 and $948,029 as of June 30, 2018 and December 31, 2017, respectively)	$	934,545			$	922,898
Affiliate investments (amortized cost: $111,354 and $71,708 as of June 30, 2018 and December 31, 2017, respectively)	117,408				76,862
Control investments (amortized cost: $45,821 and $44,592 as of June 30, 2018 and December 31, 2017, respectively)	51,810				49,679
Total portfolio investments (amortized cost: $1,109,239 and $1,064,329 as of June 30, 2018 and December 31, 2017, respectively)	1,103,763				1,049,439
Cash and cash equivalents	37,633				45,791
Interest receivable	8,005				8,638
Receivable for securities sold	15,014				4,959
Prepaid and other assets	4,870				4,072
Deferred financing costs (net of accumulated amortization of $975 and $309 as of June 30, 2018 and December 31, 2017, respectively)	5,496				6,163
Total assets	$	1,174,781			$	1,119,062
LIABILITIES
Accounts payable and other liabilities	$	1,919			$	1,459
Stockholder distributions payable	4,536				4,772
Base management fees payable	5,737				5,682
Due to affiliates	46				59
Directors’ fees payable	43				17
Payable for securities purchased	16,331				29,284
Credit facilities payable	504,000				430,000
Total liabilities	532,612				471,273
Commitments and Contingencies (Note 12)
NET ASSETS
Common stock, $.001 par value; 150,000,000 shares authorized, 78,788,407 and 79,511,731 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively	79				80
Additional paid-in capital	679,856				685,593
Accumulated distributions in excess of net investment income	(31,638		)		(22,660		)
Net unrealized depreciation on investments	(6,128		)		(15,224		)
Total net assets	642,169				647,789
Total liabilities and net assets	$	1,174,781			$	1,119,062
Net asset value per share	$	8.15			$	8.15

See notes to the condensed consolidated financial statements.

1

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HMS Income Fund, Inc.

Condensed Consolidated Statements of Operations

(dollars in thousands, except share and per share amounts)

(Unaudited) 

	Three Months Ended								Six Months Ended
	June 30, 2018				June 30, 2017				June 30, 2018				June 30, 2017
INVESTMENT INCOME:
From non-control/non-affiliate investments:
Interest income	$	22,973			$	22,557			$	45,882			$	45,100
Fee income	653				827				921				1,537
Dividend income	226				182				529				384
From affiliate investments:
Interest income	2,189				1,138				3,953				2,101
Fee income	53				49				102				103
Dividend income	552				555				1,027				981
From control investments:
Interest income	156				170				312				338
Fee income	18				20				35				41
Dividend income	653				50				1,348				327
Total interest, fee and dividend income	27,473				25,548				54,109				50,912
EXPENSES:
Interest expense	6,107				4,343				11,235				8,338
Base management and incentive fees	5,876				6,126				11,585				12,771
Internal administrative services expenses	617				873				1,421				1,534
Offering costs	104				408				207				798
Professional fees	147				60				415				324
Insurance	48				48				96				96
Other general and administrative	493				292				936				619
Expenses before fee and expense waivers	13,392				12,150				25,895				24,480
Waiver of incentive fees	(139		)		(823		)		(154		)		(2,318		)
Waiver of internal administrative services expenses	(617		)		(873		)		(1,421		)		(1,534		)
Total expenses, net of fee and expense waivers	12,636				10,454				24,320				20,628
Net investment income before taxes	14,837				15,094				29,789				30,284
Income tax expense (benefit), including excise tax	95				30				197				78
NET INVESTMENT INCOME	14,742				15,064				29,592				30,206
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Non-Control/Non-Affiliate investments	(1,014		)		(5		)		(11,823		)		2,635
Affiliate investments	—				—				912				—
Control investments	—				—				—				—
Total realized gain (loss) on investments	(1,014		)		(5		)		(10,911		)		2,635
NET REALIZED INCOME	13,728				15,059				18,681				32,841
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Non-Control/Non-Affiliate investments	(2,147		)		1,439				7,316				(4,130		)
Affiliate investments	388				812				880				1,872
Control investments	253				150				902				143
Total net change in unrealized appreciation (depreciation) on investments	(1,506		)		2,401				9,098				(2,115		)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	12,222			$	17,460			$	27,779			$	30,726
PER SHARE INFORMATION - BASIC AND DILUTED
NET INVESTMENT INCOME PER SHARE	$	0.18			$	0.20			$	0.37			$	0.40
NET REALIZED INCOME PER SHARE	$	0.17			$	0.19			$	0.23			$	0.43
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)	$	0.16			$	0.22			$	0.35			$	0.40
DISTRIBUTIONS DECLARED PER SHARE	$	0.18			$	0.18			$	0.35			$	0.35
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED	79,330,060				76,992,837				79,586,935				75,929,218

See notes to the condensed consolidated financial statements.

2

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HMS Income Fund, Inc.

Condensed Consolidated Statements of Changes in Net Assets

(dollars in thousands, except number of shares)

(Unaudited) 

		Six Months Ended June 30, 2018				Six Months Ended June 30, 2017
Change in Net Assets from Operations:
Net investment income		$	29,592			$	30,206
Net realized gain (loss) on investments		(10,911		)		2,635
Net change in unrealized appreciation (depreciation) on investments		9,098				(2,115		)
Net increase in net assets resulting from operations		27,779				30,726
Change in Net Assets from Stockholders’ Distributions:
Distributions from net investment income		(27,658		)		(23,725		)
Distributions from net realized gain on investments		—				(2,635		)
Net decrease in net assets resulting from stockholders’ distributions		(27,658		)		(26,360		)
Change in Net Assets from Capital Share Transactions:
Issuance of common stock, net of issuance costs		—				32,151
Reinvestment of stockholder distributions		13,819				13,545
Repurchase of common stock		(19,560		)		(7,894		)
Net increase (decrease) in net assets resulting from capital share transactions		(5,741		)		37,802
Total Increase (Decrease) in Net Assets		(5,620		)		42,168
Net Assets at beginning of the period		647,789				597,833
Net Assets at end of the period		$	642,169			$	640,001
NAV per share at end of the period		$	8.15			$	8.22
Common shares outstanding, beginning of the period		79,511,731				73,382,971
Issuance of common shares		—				3,844,275
Issuance of common shares pursuant to distribution reinvestment plan		1,666,634				1,624,413
Repurchase of common shares		(2,389,958		)		(960,486		)
Common shares outstanding, end of the period		78,788,407				77,891,173

See notes to the condensed consolidated financial statements.

3

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HMS Income Fund, Inc.

Condensed Consolidated Statements of Cash Flows

(dollars in thousands)

(Unaudited) 

	Six Months Ended   June 30, 2018				Six Months Ended   June 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	27,779			$	30,726
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	243,113				280,006
Investments in portfolio companies	(314,312		)		(307,041		)
Net change in unrealized (appreciation) depreciation on portfolio investments	(9,098		)		2,115
Net realized (gain) loss on sale of portfolio investments	10,911				(2,635		)
Amortization of deferred financing costs	667				699
Amortization of deferred offering costs	207				798
Accretion of unearned income	(7,416		)		(7,896		)
Net payment-in-kind interest accrual	(483		)		(839		)
Changes in other assets and liabilities:
Interest receivable	633				(771		)
Prepaid and other assets	(528		)		354
Base management fees payable	55				250
Due to affiliates	(13		)		(109		)
Directors’ fees payable	26				15
Accounts payable and other liabilities	143				(108		)
Payable for unsettled trades	—				(649		)
Net cash used in operating activities	(48,316		)		(5,085		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	—				35,018
Redemption of common stock	(19,560		)		(7,894		)
Payment of selling commissions and dealer manager fees	—				(2,849		)
Payment of offering costs	(207		)		(709		)
Payment of stockholder distributions	(14,075		)		(12,694		)
Repayments on credit facilities payable	(169,000		)		(291,000		)
Proceeds from credit facilities payable	243,000				295,000
Payment of deferred financing costs	—				(601		)
Net cash generated from financing activities	40,158				14,271
Net increase (decrease) in cash and cash equivalents	(8,158		)		9,186
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	45,791				23,719
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	37,633			$	32,905

 

See notes to the condensed consolidated financial statements.

4

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HMS Income Fund, Inc. Consolidated Schedule of Investments
As of June 30, 2018
(dollars in thousands)
Portfolio Company (1) (3)	Business Description	Type of Investment (2) (3)	Index Rate (22)	Principal (7)			Cost (7)			Fair Value (26)
Control Investments (6)
Copper Trail Energy Fund I, LP (9)(15)(16)	Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%)	—	$	—		$	3,246		$	3,246
CTMH, LP (9) (15)	Investment Partnership	LP Interests (CTMH, LP) (Fully diluted 38.8%)	—	—			872			872
GRT Rubber Technologies, LLC (8) (10) (13)	Manufacturer of Engineered Rubber Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.98%, Secured Debt (Maturity - December 19, 2019)	1 month LIBOR	5,311			5,268			5,310
		Member Units (2,896 units)	—	—			6,435			12,535
							11,703			17,845
HMS-ORIX SLF LLC (9) (15)	Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—			30,000			29,847
Subtotal Control Investments (6) (5% of total investments at fair value)							$	45,821		$	51,810
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 units) (16)	—	$	—		$	300		$	940
		Warrants (10 equivalent units, Expiration - November 7, 2024)	—	—			65			225
							365			1,165
Brewer Crane Holdings, LLC (8) (10) (13)	Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity - January 9, 2023)	1 month LIBOR	2,449			2,404			2,404
		Preferred Member Units (737 units)	—	—			1,070			1,070
							3,474			3,474
Chamberlin HoldCo, LLC (8) (10) (13)	Roofing and waterproofing specialty subcontractor	LIBOR plus 10.00% (Floor 1.00%), Current Coupon 12.38%, (Maturity - February 23, 2023)	1 month LIBOR	5,400			5,272			5,272
		Member Units (1,087 units)	—	—			2,860			2,860
							8,132			8,132
Charlotte Russe, Inc.	Fast-Fashion Retailer to Young Women	8.50% Secured Debt (Maturity - February 2, 2023)	None	6,269			6,269			5,571
		Common Stock (14,973 shares)	—	—			2,470			2,470
							8,739			8,041
Charps, LLC (10) (13)	Pipeline Maintenance and Construction	12.00% Secured Debt (Maturity - January 31, 2022)	None	3,975			3,894			3,896
		Preferred Member Units (400 units)	—	—			100			298
							3,994			4,194
Clad-Rex Steel, LLC (10) (13)	Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.48%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,220			3,171			3,220
		Member Units (179 units) (16)	—	—			1,820			2,445
		10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	293			290			290
		Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—			53			70
							5,334			6,025
Digital Products Holdings LLC (10) (13)	Designer and Distributor of Consumer Electronics	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity - March 31, 2023) (8)	1 month LIBOR	6,599			6,473			6,473
		Preferred Member Units (863 shares)	—	—			2,200			2,200
							8,673			8,673
Direct Marketing Solutions, Inc. (10) (13)	Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.00%, (Maturity - February 13, 2023) (8)	1 month LIBOR	4,622			4,502			4,511
		Preferred Stock (2,100 shares)	—	—			2,100			2,100
							6,602			6,611
Freeport Financial Funds (9) (15)	Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.6%) (16)	—	—			8,558			8,506
Gamber-Johnson Holdings, LLC (10) (13)	Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	$	5,727		$	5,640		$	5,727
		Member Units (2,155 units) (16)	—	—			3,711			8,345
							9,351			14,072
Guerdon Modular Holdings, Inc. (10) (13)	Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - March 1, 2019)	None	3,147			3,112			2,992
		Common Stock (53,008 shares)	—	—			746			—
		Class B Preferred Stock (101,250 shares)	—	—			285			—
							4,143			2,992
Gulf Publishing Holdings, LLC (10) (13)	Energy Industry Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,166			3,124			3,124
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.48%, Secured Debt (Maturity - September 30, 2020)	1 month LIBOR	40			40			40
		Member Units (781 shares)	—	—			920			1,142
							4,084			4,306
Harris Preston Fund Investments (15) (16)	Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 8.2%) (9)	—	—			1,460			1,460
		LP Interests (2717 MH, LP) (Fully diluted 7.0%)	—	—			786			879
							2,246			2,339
Hawk Ridge Systems, LLC (9) (10) (13)	Value-Added Reseller of Engineering Design and Manufacturing Solutions	10.50% Secured Debt (Maturity - December 2, 2021)	None	3,575			3,519			3,575
		Preferred Member Units (56 units) (16)	—	—			713			1,555
		Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—			38			83
							4,270			5,213
HW Temps LLC (8) (10) (13)	Temporary Staffing Solutions	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.98%, Secured Debt (Maturity - July 2, 2020)	1 month LIBOR	2,493			2,461			2,461
		Preferred Member Units (800 units) (16)	—	—			986			986
							3,447			3,447
Market Force Information, Inc. (10) (13)	Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.30%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	5,700			5,606			5,606
		Member Units (170,000 units)	—	—			3,675			3,590
							9,281			9,196
M.H. Corbin Holding LLC (10) (13)	Manufacturer and Distributor of Traffic Safety Products	10.00% Secured Debt (Maturity - August 31, 2020)	None	3,063			3,020			3,020
		Preferred Member Units (1,000 units)	—	—			1,500			1,500
							4,520			4,520
Mystic Logistics Holdings, LLC (10) (13)	Logistics and Distribution Services Provider for Large Volume Mailers	12.00% Secured Debt (Maturity - August 15, 2019)	None	1,884			1,864			1,865
		Common Stock (1,468 shares) (16)	—	—			680			1,030
							2,544			2,895
NexRev, LLC (10) (13)	Provider of Energy Efficiency Products & Services	11.00% Secured Debt (Maturity - February 28, 2023)	None	4,360			4,268			4,277
		Preferred Member Units (21,600,000 units)	—	—			1,720			1,720
							5,988			5,997
NuStep, LLC (10) (13)	Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	5,150			5,059			5,060
		Preferred Member Units (102 units)	—	—			2,550			2,550
							7,609			7,610
Subtotal Affiliate Investments (4) (11% of total investments at fair value)							$	111,354		$	117,408
Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.11%, Secured Debt (Maturity - June 30, 2023)	1 month LIBOR	$	14,688		$	14,407		$	14,907
Adams Publishing Group, LLC (8) (11)	Local Newspaper Operator	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.33%, Secured Debt (Maturity - December 30, 2022)	3 month LIBOR	9,282			9,112			9,282
ADS Tactical, Inc. (8) (11)	Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.67%, Secured Debt (Maturity - December 31, 2022)	1 month LIBOR	12,916			12,631			12,754
Aethon United BR, LP (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	3,438			3,391			3,391
Allflex Holdings III Inc. (8)	Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.36%, Secured Debt (Maturity - July 19, 2021) (14)	3 month LIBOR	13,570			13,659			13,637
American Nuts, LLC (8) (11)	Roaster, Mixer and Packager of Bulk Nuts and Seeds	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.33%, Secured Debt (Maturity - April 10, 2023)	3 month LIBOR	11,250			11,029			11,029
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.33%, Secured Debt (Maturity - October 10, 2018)	3 month LIBOR	422			414			414
							11,443			11,443
American Scaffold Holdings, Inc. (8) (11)	Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.83%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	6,844			6,771			6,810
American Teleconferencing Services, Ltd. (8)	Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.86%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	15,011			14,223			14,589
Apex Linen Service, Inc. (10) (13)	Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	3,604			3,556			3,556
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.98%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600			600			600
							4,156			4,156
Arcus Hunting, LLC (8) (11)	Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	8,033			7,977			8,030
Arise Holdings, Inc. (11)	Tech-enabled business process outsourcing	Preferred Stock (1,000,000 shares)	—	—			1,000			1,000
ATI Investment Sub, Inc. (8)	Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.34%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	6,864			6,739			6,856
ATX Networks Corp. (8) (9)	Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.33%, Current Coupon plus PIK 9.33%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	14,174			13,985			13,430
BarFly Ventures, LLC (11)	Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	3,150			3,113			3,147
		Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—			158			152
		Options (.731 equivalent units)	—	—			133			268
							3,404			3,567
BBB Tank Services, LLC (10) (13)	Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market	17.00% Secured Debt (Maturity - April 8, 2021)	None	1,000			988			973
		LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity - April 9, 2018) (8)	1 month LIBOR	163			163			163
		Member Units (200,000 units)	—	—			200			118
							1,351			1,254
BigName Commerce, LLC (8) (11)	Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.56%, Secured Debt (Maturity - May 11, 2022)	1 month LIBOR	2,525			2,500			2,500
Binswanger Enterprises, LLC (8) (11)	Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.34%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	$	14,465		$	14,237		$	14,371
		Member Units (1,050,000 units)	—	—			1,050			1,100
							15,287			15,471
Bluestem Brands, Inc. (8)	Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.69%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	12,600			12,461			8,317
Boccella Precast Products, LLC (10) (13)	Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.31%, Secured Debt (Maturity - June 30, 2022) (8)	1 month LIBOR	4,186			4,102			4,174
		Member Units (540,000 units)	—	—			540			1,305
							4,642			5,479
Brightwood Capital Fund Investments (9) (15)	Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 0.52%) (16)	—	—			4,074			3,453
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 1.58%) (16)	—	—			2,037			2,126
							6,111			5,579
Brundage-Bone Concrete Pumping, Inc.	Construction Services Provider	10.38% Secured Debt (Maturity - September 1, 2023) (14)	None	12,000			12,069			12,750
Buca C, LLC (10) (13)	Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	13,136			13,017			13,017
		Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—			2,866			2,866
							15,883			15,883
BW NHHC Holdco, Inc. (8)	Full-Continuum Provider of Home Health Services	LIBOR Plus 5.00%, Current Coupon 7.07%, Secured Debt (Maturity - May 15, 2025)	3 month LIBOR	7,500			7,389			7,425
Cadence Aerospace, LLC (8)	Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.86%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	14,925			14,788			14,925
CAI Software, LLC (10) (13)	Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - October 10, 2019)	None	961			950			961
		Member Units (16,339 units) (16)	—	—			163			712
							1,113			1,673
CDHA Management, LLC (8) (11)	Dental Services	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.64%, Secured Debt (Maturity - December 5, 2021)	3 month LIBOR	5,412			5,334			5,412
Central Security Group, Inc. (8)	Security Alarm Monitoring Service Provider	LIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.72%, Secured Debt (Maturity - October 6, 2021)	1 month LIBOR	7,941			7,922			7,980
Cenveo Corporation (18)	Provider of Commercial Printing, Envelopes, Labels, Printed Office Products	6.00% Secured Debt (Maturity - August 1, 2019) (18)	None	15,000			13,706			5,400
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.04%, Secured Debt (Maturity - November 5, 2018) (8)	1 month LIBOR	4,774			4,753			4,727
							18,459			10,127
Clarius BIGS, LLC (11) (18)	Prints & Advertising Film Financing	15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	2,140			1,882			60
		20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)	None	773			680			22
							2,562			82
Clickbooth.com, LLC (8) (11)	Provider of Digital Advertising Performance Marketing Solutions	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.81%, Secured Debt (Maturity - December 5, 2022)	1 month LIBOR	2,963			2,908			2,908
Construction Supply Investments, LLC (11)	Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.99%, Secured Debt (Maturity - June 30, 2023) (8)	3 month LIBOR	10,885			10,832			10,858
		Member units (42,207 units)	—	—			4,220			4,221
							15,052			15,079
CTVSH, PLLC (8) (11) (13)	Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.30%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	$	2,888		$	2,838		$	2,863
Datacom, LLC (10) (13) (18)	Technology and Telecommunications Provider	5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019) (18)	None	1,384			1,377			1,168
		8.00% Secured Debt (Maturity - May 30, 2018) (18)	None	200			200			200
		Class A Preferred Member Units (1,530 units) (16)	—	—			131			—
		Class B Preferred Member Units (717 units)	—	—			670			—
							2,378			1,368
Digital River, Inc. (8)	Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,779			9,694			9,765
DTE Enterprises, LLC (11)	Industrial Powertrain Repair and Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - April 13, 2023) (8)	3 month LIBOR	13,795			13,514			13,528
		Class AA Preferred Member Units (non-voting)	—	—			724			724
		Class A Preferred Member Units (776,316 units)	—	—			776			776
							15,014			15,028
Epic Y-Grade Services, LP (8)	NGL Transportation & Storage	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - June 13, 2024)	1 month LIBOR	17,500			17,150			17,238
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 10.34%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,901			10,545			9,161
Extreme Reach, Inc. (8) (12)	Integrated TV and Video Advertising Platform	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - February 7, 2020)	1 month LIBOR	13,307			13,297			13,324
Felix Investments Holdings II, LLC (8) (11)	Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.87%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	3,333			3,273			3,273
Flavors Holdings, Inc. (8)	Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	11,714			11,298			10,894
GoWireless Holdings, Inc. (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.59%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	16,153			16,014			16,033
Hojeij Branded Foods, LLC (8) (11)	Multi-Airport, Multi-Concept Restaurant Operator	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity - July 20, 2022)	1 month LIBOR	12,382			12,277			12,382
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 9.58%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,772			14,035			14,403
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.17%, Secured Debt (Maturity - January 28, 2020)	2 month LIBOR	5,188			4,510			4,896
							18,545			19,299
Houghton Mifflin Harcourt Publishers, Inc. (8)	Provider of Educational Print and Digital Services	LIBOR Plus 3.00% (Floor 1.00%), Current Coupon 5.09%, Secured Debt (Maturity - May 28, 2021)	1 month LIBOR	7,955			7,521			7,455
Hunter Defense Technologies, Inc. (8) (11)	Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.33%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	22,228			21,744			21,744
Hydrofarm Holdings, LLC (8) (11)	Wholesaler of Horticultural Products	LIBOR Plus 7.00%, Current Coupon 8.89%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	6,623			6,516			5,927
iEnergizer Limited (8) (9)	Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.10%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	9,245			9,114			9,245
Implus Footcare, LLC (8) (11)	Provider of Footwear and Related Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.84%, Secured Debt (Maturity - April 30, 2021)	1 month LIBOR	16,586			16,417			16,501
Industrial Services Acquisitions, LLC (11)	Industrial Cleaning Services	6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)	None	$	10,810		$	10,649		$	10,314
		Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)	—	—			202			202
		Member Units (Industrial Services Investments, LLC) (2,100,000 units)	—	—			2,100			490
							12,951			11,006
Inn of the Mountain Gods Resort and Casino	Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020)	None	11,748			11,589			11,132
IronGate Energy Services, LLC (18)	Oil and Gas Services	11.00% Secured Debt (Maturity - July 1, 2018) (18)	None	5,825			5,827			2,097
Isagenix International, LLC (8) (12)	Direct Marketer of Health and Wellness Products	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - June 14, 2025)	3 month LIBOR	6,429			6,364			6,445
Jackmont Hospitality, Inc. (8) (11)	Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.73%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	8,435			8,416			8,435
Jacuzzi Brands LLC (8)	Manufacturer of Bath and Spa Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.09%, Secured Debt (Maturity - June 28, 2023)	3 month LIBOR	5,850			5,746			5,909
Joerns Healthcare, LLC (8)	Manufacturer and Distributor of Health Care Equipment & Supplies	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - May 9, 2020)	3 month LIBOR	11,119			10,981			10,266
Kellermeyer Bergensons Services, LLC (8)	Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700			14,626			14,902
LaMi Products, LLC (8) (11)	General Merchandise Distribution	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.82%, Secured Debt (Maturity -September 16, 2020)	3 month LIBOR	10,852			10,756			10,828
Larchmont Resources, LLC	Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.33%, PIK Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	4,237			4,237			4,194
		Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—			601			1,322
							4,838			5,516
LJ Host Merger Sub, Inc. (8)	Managed Services and Hosting Provider	LIBOR Plus 5.75% (Floor 1.25%), Current Coupon 7.84%, Secured Debt (Maturity - December 13, 2019)	1 month LIBOR	17,222			16,879			16,836
Logix Acquisition Company, LLC (8) (11)	Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.84%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	9,679			9,587			9,727
LSF9 Atlantis Holdings, LLC (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,650			13,556			13,538
Lulu’s Fashion Lounge, LLC (8)(11)	Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.09%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,435			6,263			6,628
Meisler Operating, LLC (10) (13)	Provider of Short Term Trailer and Container Rental	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, Secured Debt (Maturity - June 7, 2022) (8)	1 month LIBOR	5,200			5,083			5,083
		Member Units (Milton Meisler Holdings, LLC) (12,139 units)	—	—			1,214			1,393
							6,297			6,476
MHVC Acquisition Corp. (8)	Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - April 29, 2024)	3 month LIBOR	8,400			8,363			8,450
Minute Key, Inc. (10) (13)	Operator of Automated Key Duplication Kiosk	Warrants (359,352 equivalent units, Expiration - May 20, 2025)	—	—			70			350
NBG Acquisition, Inc. (8)	Wholesaler of Home Decor Products	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.95%, Secured Debt (Maturity - April 26, 2024)	1 month LIBOR	4,347			4,285			4,347
New Era Technology, Inc. (8) (12)	Managed Services and Hosting Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - June 22, 2023)	1 month LIBOR	6,231			6,107			6,097
New Media Holdings II LLC (8) (9)	Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	14,161			13,983			14,272
NNE Partners, LLC (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 8.00%, Current Coupon 10.32%, Secured Debt (Maturity - March 2, 2022)	3 month LIBOR	$	18,375		$	18,228		$	18,220
North American Lifting Holdings, Inc. (8)	Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.83%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,277			5,731			6,030
Novetta Solutions, LLC (8)	Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.10%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	15,054			14,686			14,640
NTM Acquisition Corp. (8)	Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - June 7, 2022)	3 month LIBOR	4,206			4,166			4,212
Paris Presents, Inc. (8)	Branded Cosmetic and Bath Accessories	LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.84%, Secured Debt (Maturity - December 31, 2021) (14)	1 month LIBOR	10,000			9,909			10,038
Pasha Group (8)	Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.64%, Secured Debt (Maturity - January 26, 2023)	1 month LIBOR	11,718			11,372			11,895
Permian Holdco 2, Inc.	Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (8) (17)	None	923			923			923
		Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 units) (16)	—	—			1,997			2,299
		Common Shares (Permian Holdco 1, Inc.) (386,255 units)	—	—			—			—
							2,920			3,222
Pernix Therapeutics Holdings, Inc. (11)	Pharmaceutical Royalty	12.00% Secured Debt (Maturity - August 1, 2020)	None	2,652			2,635			1,714
Pier 1 Imports, Inc. (8) (9)	Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.95%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,494			7,145			6,875
PPC/Shift, LLC (8) (11)	Provider of Digital Solutions to Automotive Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - December 22, 2021)	1 month LIBOR	6,426			6,325			6,426
PricewaterhouseCoopers Public Sector LLP (8) (14)	Provider of Consulting Services to Governments	LIBOR Plus 7.25%, Current Coupon 9.48%, Secured Debt (Maturity - May 1, 2026)	1 month LIBOR	12,000			11,940			12,075
Prowler Acquisition Corporation (8)	Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.83%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	12,346			11,400			12,223
Radiology Partners, Inc. (8) (11)	Radiology Practice Providing Scan Interpretations	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - December 4, 2023)	3 month LIBOR	9,709			9,568			9,740
Resolute Industrial, LLC (8) (11)	HVAC Equipment Rental and Remanufacturing	LIBOR Plus 7.62% (Floor 1.00%), Current Coupon 9.92%, Secured Debt (Maturity - July 26, 2022) (24)	3 month LIBOR	17,088			16,731			16,798
		Common Stock (601 units)	—	—			750			830
							17,481			17,628
RGL Reservoir Operations, Inc. (9) (11)	Oil & Gas Equipment & Services	1.00% Current / 9.00% PIK Secured Debt (Maturity - December 21, 2024)	None	755			450			415
Rise Broadband (8) (11)	Fixed Wireless Broadband Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - May 2, 2023)	1 month LIBOR	14,963			14,815			14,815
RM Bidder, LLC (11)	Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 units)	—	—			31			11
		Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—			284			—
		Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—			—			—
							315			11
Salient Partners, LP (8)	Provider of Asset Management Services	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	12,658			12,374			12,469
Smart Modular Technologies, Inc. (8) (9) (11)	Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.62%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	13,875			13,635			13,805
Sorenson Communications, Inc. (8)	Manufacturer of Communication Products for Hearing Impaired	LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.09%, Secured Debt (Maturity - April 30, 2020)	3 month LIBOR	2,931			2,920			2,944
Strike, LLC (8)	Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.45%, Secured Debt (Maturity - November 30, 2022)	3 month LIBOR	$	9,250		$	9,026		$	9,400
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - May 30, 2019)	3 month LIBOR	409			397			411
							9,423			9,811
Synagro Infrastructure Company, Inc. (8)	Waste Management Services	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.83%, Secured Debt (Maturity - August 22, 2020)	3 month LIBOR	8,290			8,011			7,586
TE Holdings, LLC	Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—			728			80
Teleguam Holdings, LLC (8)	Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750			7,611			7,808
TMC Merger Sub Corp (8)	Refractory & Maintenance Services Provider	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.38%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	18,901			18,768			19,041
TOMS Shoes, LLC (8)	Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - October 30, 2020)	1 month LIBOR	4,838			4,621			3,679
Turning Point Brands, Inc. (8) (9) (11)	Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00%, Current Coupon 9.05%, Secured Debt (Maturity - March 7, 2024) (14)	1 month LIBOR	8,499			8,418			8,670
TVG-I-E CMN Acquisition, LLC (8) (11)	Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	16,197			15,917			16,197
U.S. Telepacific Corp. (8)	Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.33%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	17,691			17,287			17,454
Valley Healthcare Group, LLC (10) (13)	Provider of Durable Medical Equipment	LIBOR Plus 10.50% (Floor 0.50%), Current Coupon 12.48%, Secured Debt (Maturity - December 29, 2020) (8)	1 month LIBOR	2,912			2,877			2,912
		Preferred Member Units (Valley Healthcare Holding, LLC) (400 units)	—	—			400			575
							3,277			3,487
VIP Cinema Holdings, Inc. (8)	Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity - March 1, 2023)	3 month LIBOR	9,375			9,336			9,466
Vistar Media, Inc. (8) (11)	Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.32%, Secured Debt (Maturity - February 16, 2022)	3 month LIBOR	3,263			3,019			3,049
		Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—			331			600
							3,350			3,649
Volusion, LLC (10) (13)	Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 27, 2020)	None	7,172			6,597			6,671
		11.50% Secured Debt (Maturity - January 27, 2020)	None	1,088			1,088			1,012
		8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)	None	127			127			127
		Preferred Member Units (2,090,001 units)	—	—			6,000			6,000
		Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)	—	—			1,104			373
							14,916			14,183
Wireless Vision Holdings, LLC (8) (11)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.89%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	12,834			12,538			12,584
Subtotal Non-Control/Non-Affiliate Investments (5) (84% of total portfolio investments at fair value)							$	952,064		$	934,545
Total Portfolio Investments							$	1,109,239		$	1,103,763
Short Term Investments (20)
Fidelity Institutional Money Market Funds (21)	—	Prime Money Market Portfolio, Class III Shares	—	—			$	12,225		$	12,225
US Bank Money Market Account (21)	—	—	—	—			15,122			15,122
Total Short Term Investments							$	27,347		$	27,347

(1) All investments are Middle Market (as defined in the notes to the financial statements) portfolio investments, unless otherwise noted. All of the assets of HMS Income Fund, Inc. (together with its consolidated subsidiaries, the “Company”) 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. Fair value as of December 31, 2017 and June 30, 2018 along with transactions during the six months ended June 30, 2018 in these affiliated investments were as follows (in thousands):

						Six Months Ended June 30, 2018																Six Months Ended June 30, 2018
Portfolio Company		Fair Value at December 31, 2017				Gross Additions (Cost)*				Gross Reductions (Cost)**				Net Unrealized Gain (Loss)				Fair Value at June 30, 2018				Net Realized Gain (Loss)			Interest Income			Fee Income			Dividend Income
Affiliate Investments
AFG Capital Group, LLC
Member units		$	897			$	1			$	—			$	42			$	940			$	—		$	—		$	—		$	5
Warrants		215				—				—				10				225				—			—			—			—
Brewer Crane Holdings, LLC
Term loan		—				2,484				(80		)		—				2,404				—			144			—			—
Preferred member units		—				1,070				—				—				1,070				—			—			7			8
Chamberlin HoldCo, LLC
Term loan		—				5,407				(135		)		—				5,272				—			239			2			—
Member units		—				2,860				—				—				2,860				—			—			20			192
Charlotte Russe, Inc.
Term loan		—				6,285				(16		)		(698		)		5,571				—			224			—			—
Common stock		—				2,470				—				—				2,470				—			—			—			—
Charps, LLC
Term loan		4,500				23				(625		)		(2		)		3,896				—			280			—			—
Preferred member units		163				1				—				134				298				—			—			—			—
Clad-Rex Steel, LLC
Term loan		3,320				7				(100		)		(7		)		3,220				—			194			—			—
Member units		2,375				1				—				69				2,445				—			—			—			—
Term loan (Clad-Rex Steel RE Investor, LLC)		293				—				(3		)		—				290				—			15			—			—
Member units (Clad-Rex Steel RE Investor, LLC)		70				—				—				—				70				—			—			—			88
Digital Products Holdings LLC
Term loan		—				6,605				(132		)		—				6,473				—			203			—			—
Preferred member units		—				2,200				—				—				2,200				—			—			12			—
Direct Marketing Solutions, Inc.
Term loan		—				4,717				(206		)		—				4,511				—			247			3			—
Preferred stock		—				2,100				—				—				2,100				—			—			—			—
Freeport Financial Funds
LP interests		8,506				—				—				—				8,506				—			—			—			421
Gamber-Johnson Holdings, LLC
Term loan		5,850				11				(122		)		(12		)		5,727				—			353			—			—
Common stock		5,843				—				—