UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________

 FORM 10-Q

(Mark One)
þ	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended September 30, 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 every Interactive Data File required to be submitted 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

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 79,147,572 shares of common stock outstanding as of November 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	61
Item 4.	Controls and Procedures	62
PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
Signatures		65

  

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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)

	September 30, 2018				December 31, 2017
	(Unaudited)
ASSETS
Portfolio investments at fair value:
Non-Control/Non-Affiliate investments (amortized cost: $944,195 and $948,029 as of September 30, 2018 and December 31, 2017, respectively)	$	933,953			$	922,898
Affiliate investments (amortized cost: $131,355 and $71,708 as of September 30, 2018 and December 31, 2017, respectively)	140,798				76,862
Control investments (amortized cost: $45,493 and $44,592 as of September 30, 2018 and December 31, 2017, respectively)	55,571				49,679
Total portfolio investments (amortized cost: $1,121,043 and $1,064,329 as of September 30, 2018 and December 31, 2017, respectively)	1,130,322				1,049,439
Cash and cash equivalents	23,728				45,791
Interest receivable	9,204				8,638
Receivable for securities sold	17,347				4,959
Prepaid and other assets	3,647				4,072
Deferred financing costs (net of accumulated amortization of $1,309 and $309 as of September 30, 2018 and December 31, 2017, respectively)	5,169				6,163
Total assets	$	1,189,417			$	1,119,062
LIABILITIES
Accounts payable and other liabilities	$	1,329			$	1,459
Stockholder distributions payable	4,527				4,772
Base management fees payable	5,904				5,682
Due to affiliates	38				59
Directors’ fees payable	27				17
Payable for securities purchased	16,857				29,284
Credit facilities payable	510,000				430,000
Total liabilities	538,682				471,273
Commitments and Contingencies (Note 12)
NET ASSETS
Common stock, $.001 par value; 150,000,000 shares authorized, 78,616,770 and 79,511,731 issued and outstanding as of September 30, 2018 and December 31, 2017, respectively	79				80
Additional paid-in capital	678,579				685,593
Accumulated distributions in excess of net investment income	(36,653		)		(22,660		)
Net unrealized depreciation on investments	8,730				(15,224		)
Total net assets	650,735				647,789
Total liabilities and net assets	$	1,189,417			$	1,119,062
Net asset value per share	$	8.28			$	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								Nine Months Ended
	September 30, 2018				September 30, 2017				September 30, 2018				September 30, 2017
INVESTMENT INCOME:
From non-control/non-affiliate investments:
Interest income	$	25,753			$	22,752			$	71,635			$	67,852
Fee income	748				145				1,669				1,682
Dividend income	268				188				797				572
From affiliate investments:
Interest income	2,359				1,307				6,312				3,408
Fee income	16				53				118				156
Dividend income	843				582				1,870				1,563
From control investments:
Interest income	151				164				463				502
Fee income	17				15				52				56
Dividend income	709				125				2,057				452
Total interest, fee and dividend income	30,864				25,331				84,973				76,243
EXPENSES:
Interest expense	6,626				5,004				17,861				13,342
Base management and incentive fees	9,135				5,648				20,720				18,419
Internal administrative services expenses	623				694				2,044				2,228
Offering costs	101				881				308				1,679
Professional fees	124				141				539				465
Insurance	47				47				143				143
Other general and administrative	511				509				1,447				1,128
Expenses before fee and expense waivers	17,167				12,924				43,062				37,404
Waiver of incentive fees	(3,231		)		—				(3,385		)		(2,318		)
Waiver of internal administrative services expenses	(623		)		(694		)		(2,044		)		(2,228		)
Total expenses, net of fee and expense waivers	13,313				12,230				37,633				32,858
Net investment income before taxes	17,551				13,101				47,340				43,385
Income tax expense (benefit), including excise tax	(226		)		61				(29		)		139
NET INVESTMENT INCOME	17,777				13,040				47,369				43,246
NET REALIZED GAIN (LOSS) ON INVESTMENTS
Non-Control/Non-Affiliate investments	(8,845		)		(227		)		(20,668		)		2,408
Affiliate investments	(9		)		951				903				951
Control investments	—				—				—				—
Total realized gain (loss) on investments	(8,854		)		724				(19,765		)		3,359
NET REALIZED INCOME	8,923				13,764				27,604				46,605
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Non-Control/Non-Affiliate investments	7,391				(5,533		)		14,707				(9,663		)
Affiliate investments	3,378				(48		)		4,258				1,824
Control investments	4,088				531				4,990				674
Total net change in unrealized appreciation (depreciation) on investments	14,857				(5,050		)		23,955				(7,165		)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	23,780			$	8,714			$	51,559			$	39,440
PER SHARE INFORMATION - BASIC AND DILUTED
NET INVESTMENT INCOME PER SHARE	$	0.23			$	0.16			$	0.60			$	0.56
NET REALIZED INCOME PER SHARE	$	0.12			$	0.18			$	0.35			$	0.61
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)	$	0.30			$	0.11			$	0.65			$	0.51
DISTRIBUTIONS DECLARED PER SHARE	$	0.17			$	0.17			$	0.52			$	0.52
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED	78,982,226				78,807,225				79,383,151				76,899,096

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 share and per share amounts)

(Unaudited) 

		Nine Months Ended September 30, 2018				Nine Months Ended September 30, 2017
Change in Net Assets from Operations:
Net investment income		$	47,369			$	43,246
Net realized gain (loss) on investments		(19,765		)		3,359
Net change in unrealized appreciation (depreciation) on investments		23,955				(7,165		)
Net increase in net assets resulting from operations		51,559				39,440
Change in Net Assets from Stockholders’ Distributions:
Distributions from net investment income		(41,596		)		(36,911		)
Distributions from net realized gain on investments		—				(3,359		)
Net decrease in net assets resulting from stockholders’ distributions		(41,596		)		(40,270		)
Change in Net Assets from Capital Share Transactions:
Issuance of common stock, net of issuance costs		—				42,366
Reinvestment of stockholder distributions		20,550				20,594
Repurchase of common stock		(27,567		)		(14,018		)
Net increase (decrease) in net assets resulting from capital share transactions		(7,017		)		48,942
Total Increase in Net Assets		2,946				48,112
Net Assets at beginning of the period		647,789				597,833
Net Assets at end of the period		$	650,735			$	645,945
NAV per share at end of the period		$	8.28			$	8.16
Common shares outstanding, beginning of the period		79,511,731				73,382,971
Issuance of common shares		—				5,063,398
Issuance of common shares pursuant to distribution reinvestment plan		2,477,245				2,466,862
Repurchase of common shares		(3,372,206		)		(1,708,271		)
Common shares outstanding, end of the period		78,616,770				79,204,960

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) 

	Nine Months Ended   September 30, 2018				Nine Months Ended   September 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	51,559			$	39,440
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	386,110				370,941
Investments in portfolio companies	(476,524		)		(470,875		)
Net change in unrealized (appreciation) depreciation on portfolio investments	(23,955		)		7,165
Net realized (gain) loss on sale of portfolio investments	19,765				(3,359		)
Amortization of deferred financing costs	1,000				1,013
Amortization of deferred offering costs	308				1,679
Accretion of unearned income	(11,429		)		(10,793		)
Net payment-in-kind interest accrual	(977		)		(897		)
Changes in other assets and liabilities:
Interest receivable	(566		)		(2,448		)
Prepaid and other assets	1,949				(390		)
Base management fees payable	222				628
Due to affiliates	(21		)		(83		)
Directors’ fees payable	10				12
Accounts payable and other liabilities	(348		)		285
Payable for unsettled trades	—				(780		)
Net cash used in operating activities	(52,897		)		(68,462		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	—				46,041
Redemption of common stock	(27,567		)		(14,018		)
Payment of selling commissions and dealer manager fees	—				(3,511		)
Payment of offering costs	(308		)		(959		)
Payment of stockholder distributions	(21,291		)		(19,465		)
Repayments on credit facilities payable	(279,000		)		(339,000		)
Proceeds from credit facilities payable	359,000				416,000
Payment of deferred financing costs	—				(636		)
Net cash generated from financing activities	30,834				84,452
Net increase (decrease) in cash and cash equivalents	(22,063		)		15,990
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	45,791				23,719
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$	23,728			$	39,709

 

See notes to the condensed consolidated financial statements.

4

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HMS Income Fund, Inc. Consolidated Schedule of Investments
As of September 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)	Investment Partnership	LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%) (16)	—	$	—		$	3,246		$	3,473
CTMH, LP (9) (15)	Investment Partnership	LP Interests (CTMH, LP) (Fully diluted 38.8%)	—	—			872			872
GRT Rubber Technologies, LLC (10) (13)	Manufacturer of Engineered Rubber Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - December 19, 2019) (8)	1 month LIBOR	4,975			4,940			4,975
		Member Units (2,896 units)	—	—			6,435			15,781
							11,375			20,756
HMS-ORIX SLF LLC (9) (15)	Investment Partnership	Membership Interests (Fully diluted 60.00%) (16)	—	—			30,000			30,470
Subtotal Control Investments (6) (5% of total investments at fair value)							$	45,493		$	55,571
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)	Provider of Rent-to-Own Financing Solutions and Services	Member Units (46 units) (16)	—	$	—		$	300		$	985
		Warrants (10 equivalent units, Expiration - November 7, 2024)	—	—			65			235
							365			1,220
Brewer Crane Holdings, LLC (10) (13)	Provider of Crane Rental and Operating Services	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.10%, Secured Debt (Maturity - January 9, 2023) (8)	1 month LIBOR	2,417			2,376			2,376
		Preferred Member Units (737 units)	—	—			1,070			1,070
							3,446			3,446
Chamberlin HoldCo, LLC (10) (13)	Roofing and waterproofing specialty subcontractor	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity - February 23, 2023) (8)	1 month LIBOR	5,400			5,277			5,277
		Member Units (1,087 units)	—	—			2,860			4,448
							8,137			9,725
Charlotte Russe, Inc.	Fast-Fashion Retailer to Young Women	8.50% Secured Debt (Maturity - February 2, 2023)	None	6,253			6,253			5,555
		Common Stock (14,973 shares)	—	—			2,470			2,470
							8,723			8,025
Charps, LLC (10) (13)	Pipeline Maintenance and Construction	12.00% Secured Debt (Maturity - January 31, 2022)	None	3,975			3,901			3,901
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.10% Secured Debt (Maturity - February 3, 2022) (8)	1 month LIBOR	400			399			399
		Preferred Member Units (400 units)	—	—			100			263
							4,400			4,563
Clad-Rex Steel, LLC (10) (13)	Specialty Manufacturer of Vinyl-Clad Metal	LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.60%, Secured Debt (Maturity - December 20, 2021) (8)	1 month LIBOR	3,120			3,075			3,120
		Member Units (179 units) (16)	—	—			1,820			2,595
		10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)	None	292			289			289
		Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)	—	—			53			70
							5,237			6,074
Digital Products Holdings LLC (10) (13)	Designer and Distributor of Consumer Electronics	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.13%, Secured Debt (Maturity - March 31, 2023) (8)	1 month LIBOR	6,517			6,396			6,396
		Preferred Member Units (863 units)	—	—			2,116			2,116
							8,512			8,512
Direct Marketing Solutions, Inc. (10) (13)	Provider of Omni-Channel Direct Marketing Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.13%, Secured Debt (Maturity - February 13, 2023) (8)	1 month LIBOR	4,563			4,448			4,457
		Preferred Stock (2,100 shares)	—	—			2,100			2,945
							6,548			7,402
Freeport Financial Funds (9) (15)	Investment Partnership	LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.0%) (16)	—	$	—		$	8,558		$	8,383
Gamber-Johnson Holdings, LLC (10) (13)	Manufacturer of Ruggedized Computer Mounting Systems	LIBOR Plus 8.00% (Floor 2.00%), Current Coupon 10.10%, Secured Debt (Maturity - June 24, 2021) (8)	1 month LIBOR	5,631			5,550			5,631
		Member Units (2,155 units) (16)	—	—			3,711			10,030
							9,261			15,661
Guerdon Modular Holdings, Inc. (10) (13)	Multi-Family and Commercial Modular Construction Company	13.00% Secured Debt (Maturity - March 1, 2019)	None	3,147			3,118			2,996
		Common Stock (53,008 shares)	—	—			746			—
		Class B Preferred Stock (101,250 shares)	—	—			285			—
							4,149			2,996
Gulf Publishing Holdings, LLC (10) (13)	Energy Industry Focused Media and Publishing	12.50% Secured Debt (Maturity - April 29, 2021)	None	3,166			3,127			3,127
		LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.60%, Secured Debt (Maturity - September 30, 2020) (8)	1 month LIBOR	40			40			40
		Member Units (781 units)	—	—			920			1,142
							4,087			4,309
Harris Preston Fund Investments (9) (15) (16)	Investment Partnership	LP Interests (HPEP 3, LP) (Fully diluted 8.2%)	—	—			1,733			1,733
		LP Interests (2717 MH, LP) (Fully diluted 49.3%)	—	—			1,040			1,133
							2,773			2,866
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			3,523			3,575
		Preferred Member Units (56 units) (16)	—	—			713			1,752
		Preferred Member Units (HRS Services, ULC) (56 units) (16)	—	—			38			93
							4,274			5,420
HW Temps LLC (10) (13)	Temporary Staffing Solutions	LIBOR Plus 13.00% (Floor 1.00%), Current Coupon 15.10%, Secured Debt (Maturity - July 2, 2020) (8)	1 month LIBOR	2,494			2,465			2,483
		Preferred Member Units (800 units) (16)	—	—			986			986
							3,451			3,469
Market Force Information, Inc. (10) (13)	Provider of Customer Experience Management Services	LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.32%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	5,700			5,611			5,611
		LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.32%, Secured Debt (Maturity - July 28, 2022) (8)	1 month LIBOR	100			100			100
		Member Units (170,000 units)	—	—			3,675			3,563
							9,386			9,274
M.H. Corbin Holding LLC (10) (13)	Manufacturer and Distributor of Traffic Safety Products	10.00% Current / 3.00% PIK Secured Debt (Maturity - August 31, 2020)	None	3,019			2,981			2,982
		Preferred Member Units (1,000 units)	—	—			1,500			1,125
							4,481			4,107
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			1,868			1,875
		Common Stock (1,468 shares) (16)	—	—			680			178
							2,548			2,053
NexRev, LLC (10) (13)	Provider of Energy Efficiency Products & Services	10.00% Secured Debt (Maturity - February 28, 2023)	None	4,360			4,272			4,281
		Preferred Member Units (21,600,000 units)	—	—			1,720			1,972
							5,992			6,253
NuStep, LLC (10) (13)	Designer, Manufacturer and Distributor of Fitness Equipment	12.00% Secured Debt (Maturity - January 31, 2022)	None	$	5,150		$	5,066		$	5,067
		Preferred Member Units (102 units)	—	—			2,550			2,550
							7,616			7,617
SI East, LLC (10) (13)	Rigid Industrial Packaging Manufacturing	10.25% Secured Debt (Maturity - August 31, 2023)	None	11,750			11,564			11,576
		Preferred Member Units (52 units)	—	—			2,000			2,000
							13,564			13,576
Tedder Acquisition, LLC (10) (13)	Manufacturer of Firearm Holsters and Accessories	12.00% Secured Debt (Maturity - August 31, 2023)	None	4,100			3,978			3,978
		Preferred Member Units (110 units)	—	—			1,869			1,869
							5,847			5,847
Subtotal Affiliate Investments (4) (12% of total investments at fair value)							$	131,355		$	140,798
Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)	Substance Abuse Treatment Service Provider	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.09%, Secured Debt (Maturity - June 30, 2023)	3 month LIBOR	$	14,594		$	14,325		$	14,813
Adams Publishing Group, LLC (8) (11)	Local Newspaper Operator	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - July 3, 2023)	3 month LIBOR	8,321			8,145			8,144
		PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - July 3, 2023)	PRIME	2,950			2,855			2,855
							11,000			10,999
ADS Tactical, Inc. (8) (11)	Value-Added Logistics and Supply Chain Solutions Provider to the Defense Industry	LIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.49%, Secured Debt (Maturity - July 26, 2023)	1 month LIBOR	16,458			16,308			16,308
Aethon United BR, LP (8) (11)	Oil & Gas Exploration & Production	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.88%, Secured Debt (Maturity - September 8, 2023) (14)	1 month LIBOR	4,062			4,009			4,009
Allen Media, LLC (8) (12)	Operator of Cable Television Networks	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.81%, Secured Debt (Maturity - August 30, 2023)	3 month LIBOR	17,143			16,647			16,693
Allflex Holdings III Inc. (8)	Manufacturer of Livestock Identification Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.35%, Secured Debt (Maturity - July 19, 2021) (14)	3 month LIBOR	13,232			13,321			13,311
American Nuts, LLC (8) (11)	Roaster, Mixer and Packager of Bulk Nuts and Seeds	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.34%, Secured Debt (Maturity - April 10, 2023)	3 month LIBOR	11,221			11,011			11,012
		LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.34%, Secured Debt (Maturity - October 10, 2018)	3 month LIBOR	422			414			414
							11,425			11,426
American Scaffold Holdings, Inc. (8) (11)	Marine Scaffolding Service Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.89%, Secured Debt (Maturity - March 31, 2022)	3 month LIBOR	6,750			6,682			6,716
American Teleconferencing Services, Ltd. (8)	Provider of Audio Conferencing and Video Collaboration Solutions	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.84%, Secured Debt (Maturity - December 8, 2021)	2 month LIBOR	14,798			14,064			14,327
Apex Linen Service, Inc. (10) (13)	Industrial Launderers	16.00% Secured Debt (Maturity - October 30, 2022)	None	3,604			3,558			3,558
		LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - October 30, 2022) (8)	1 month LIBOR	600			600			600
							4,158			4,158
APTIM Corp	Engineering, Construction and Procurement	7.75% Secured Debt (Maturity - June 15, 2025)	None	6,952			6,141			5,979
Arcus Hunting, LLC (8) (11)	Manufacturer of Bowhunting and Archery Products and Accessories	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.34%, Secured Debt (Maturity - November 13, 2019)	1 month LIBOR	8,559			8,512			8,556
Arise Holdings, Inc. (11)	Tech-enabled business process outsourcing	Preferred Stock (1,000,000 shares)	—	—			1,000			1,264
ASC Ortho Management Company, LLC (11)	Provider of Orthopedic Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.81%, Secured Debt (Maturity - August 31, 2023) (8)	1 month LIBOR	$	4,660		$	4,553		$	4,568
		13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)	None	1,553			1,514			1,514
							6,067			6,082
ATI Investment Sub, Inc. (8)	Manufacturer of Solar Tracking Systems	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - June 22, 2021)	1 month LIBOR	5,624			5,524			5,556
ATX Networks Corp. (8) (9)	Provider of Radio Frequency Management Equipment	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.39%, Current Coupon plus PIK 9.39%, Secured Debt (Maturity - June 11, 2021)	3 month LIBOR	14,133			13,961			13,426
BarFly Ventures, LLC (11)	Casual Restaurant Group	12.00% Secured Debt (Maturity - August 31, 2020)	None	3,272			3,237			3,270
		Warrants (.410 equivalent units, Expiration - August 31, 2025)	—	—			158			137
		Options (.731 equivalent units)	—	—			133			245
							3,528			3,652
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			991			974
		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
							1,354			1,255
Berry Aviation, Inc. (11)	Airline Charter Service Operator	10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)	None	4,463			4,398			4,398
		Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative)	—	—			1,548			1,548
							5,946			5,946
BigName Commerce, LLC (8) (11)	Provider of Envelopes and Complimentary Stationery Products	LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.59%, Secured Debt (Maturity - May 11, 2022)	3 month LIBOR	2,493			2,470			2,470
Binswanger Enterprises, LLC (8) (11)	Glass Repair and Installation Service Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - March 9, 2022)	3 month LIBOR	14,368			14,155			14,368
		Member Units (1,050,000 units)	—	—			1,050			1,330
							15,205			15,698
Bluestem Brands, Inc. (8)	Multi-Channel Retailer of General Merchandise	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.74%, Secured Debt (Maturity - November 6, 2020)	3 month LIBOR	12,398			12,274			8,277
Boccella Precast Products, LLC (10) (13)	Manufacturer of Precast Hollow Core Concrete	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.34%, Secured Debt (Maturity - June 30, 2022) (8)	1 month LIBOR	4,071			3,992			4,063
		Member Units (540,000 units)	—	—			540			1,240
							4,532			5,303
Brightwood Capital Fund Investments (9) (15)	Investment Partnership	LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)	—	—			4,075			3,517
		LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)	—	—			3,037			3,126
							7,112			6,643
Brundage-Bone Concrete Pumping, Inc.	Construction Services Provider	10.38% Secured Debt (Maturity - September 1, 2023) (14)	None	12,000			12,066			12,750
Buca C, LLC (10) (13)	Casual Restaurant Group	LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.36%, Secured Debt (Maturity - June 30, 2020) (8)	1 month LIBOR	12,936			12,832			12,832
		Preferred Member Units (4 units, 6.00% cumulative) (16)	—	—			2,866			2,909
							15,698			15,741
BW NHHC Holdco, Inc. (8)	Full-Continuum Provider of Home Health Services	LIBOR Plus 5.00%, Current Coupon 7.16%, Secured Debt (Maturity - May 15, 2025)	1 month LIBOR	$	7,481		$	7,373		$	7,373
Cadence Aerospace, LLC (8) (11)	Aerospace Manufacturing	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.82%, Secured Debt (Maturity - November 14, 2023)	3 month LIBOR	19,517			19,343			19,480
CAI Software, LLC (10) (13)	Provider of Specialized Enterprise Resource Planning Software	12.00% Secured Debt (Maturity - October 10, 2019)	None	821			814			821
		Member Units (16,339 units) (16)	—	—			163			655
							977			1,476
Cenveo Corporation	Provider of Commercial Printing, Envelopes, Labels, Printed Office Products	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.12%, Secured Debt (Maturity - June 7, 2023) (8)	1 month LIBOR	4,995			4,599			4,895
		Common Stock (138,889 shares)	—	—			4,163			4,340
							8,762			9,235
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 10.84%, Secured Debt (Maturity - December 5, 2022)	3 month LIBOR	2,944			2,892			2,892
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 8.25%, Secured Debt (Maturity - June 30, 2023) (8)	1 month LIBOR	10,583			10,533			10,556
		Member units (42,207 units)	—	—			4,221			4,290
							14,754			14,846
CTVSH, PLLC (8) (11) (13)	Emergency Care and Specialty Service Animal Hospital	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - August 3, 2022)	1 month LIBOR	2,850			2,803			2,827
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			188
		Class A Preferred Member Units (1,530 units) (16)	—	—			144			—
		Class B Preferred Member Units (717 units)	—	—			670			—
							2,391			1,356
Digital River, Inc. (8)	Provider of Outsourced e-Commerce Solutions and Services	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.59%, Secured Debt (Maturity - February 12, 2021)	3 month LIBOR	9,779			9,701			9,779
DTE Enterprises, LLC (11)	Industrial Powertrain Repair and Services	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - April 13, 2023) (8)	1 month LIBOR	13,242			12,987			13,001
		Class AA Preferred Member Units (non-voting)	—	—			724			724
		Class A Preferred Member Units (776,316 units)	—	—			776			776
							14,487			14,501
Dynamic Communities, LLC (8) (11)	Developer of Business Events and Online Community Groups	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.39%, Secured Debt (Maturity - July 17, 2023)	3 month LIBOR	5,600			5,490			5,492
Elite SEM, Inc. (8) (11)	Provider of Digital Marketing Agency Services	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, Secured Debt (Maturity - February 1, 2022)	3 month LIBOR	6,875			6,740			6,740
Epic Y-Grade Services, LP (8)	NGL Transportation & Storage	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.74%, Secured Debt (Maturity - June 13, 2024)	1 month LIBOR	17,500			17,161			17,084
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 10.49%, Secured Debt (Maturity - April 28, 2022) (14)	1 month LIBOR	10,901			10,566			9,300
Extreme Reach, Inc. (8)	Integrated TV and Video Advertising Platform	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - February 7, 2020)	1 month LIBOR	$	16,915		$	16,906		$	16,961
Felix Investments Holdings II, LLC (8) (11)	Oil and Gas Exploration and Production	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.84%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	3,333			3,276			3,276
Flavors Holdings, Inc. (8)	Global Provider of Flavoring and Sweetening Products and Solutions	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.14%, Secured Debt (Maturity - April 3, 2020)	3 month LIBOR	11,714			11,355			10,952
GoWireless Holdings, Inc. (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - December 22, 2024)	3 month LIBOR	15,947			15,812			15,628
Hojeij Branded Foods, LLC (8) (11)	Multi-Airport, Multi-Concept Restaurant Operator	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - July 20, 2022)	1 month LIBOR	12,352			12,253			12,352
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 9.56%, Secured Debt (Maturity - January 28, 2021)	3 month LIBOR	14,735			14,062			14,586
		LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - January 28, 2020)	3 month LIBOR	5,388			4,818			5,289
							18,880			19,875
Hunter Defense Technologies, Inc. (8) (11)	Provider of Military and Commercial Shelters and Systems	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.39%, Secured Debt (Maturity - March 29, 2023)	3 month LIBOR	16,005			15,710			15,845
Hydrofarm Holdings, LLC (8) (11)	Wholesaler of Horticultural Products	LIBOR Plus 10.00%, Current Coupon 3.62% / 8.45 PIK, Current Coupon Plus PIK 12.07%, Secured Debt (Maturity - May 12, 2022)	1 month LIBOR	6,623			6,522			5,926
iEnergizer Limited (8) (9) (12)	Provider of Business Outsourcing Solutions	LIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.25%, Secured Debt (Maturity - May 1, 2019)	1 month LIBOR	12,927			12,845			12,943
Implus Footcare, LLC (8) (11)	Provider of Footwear and Related Accessories	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	17,198			17,032			17,127
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	11,001			10,844			10,512
		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
							13,146			11,204
Inn of the Mountain Gods Resort and Casino	Hotel & Casino Owner & Operator	9.25% Secured Debt (Maturity - November 30, 2020) (14)	None	8,254			8,254			7,944
Intermedia Holdings, Inc. (8)	Unified Communications as a Service	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity July 19, 2025)	3 month LIBOR	11,571			11,457			11,626
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)	Direct Marketer of Health and Wellness Products	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.14%, Secured Debt (Maturity - June 14, 2025)	3 month LIBOR	6,348			6,286			6,364
Jackmont Hospitality, Inc. (8) (11)	Franchisee of Casual Dining Restaurants	LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.99%, Secured Debt (Maturity - May 26, 2021)	1 month LIBOR	8,382			8,365			8,382
Jacuzzi Brands LLC (8)	Manufacturer of Bath and Spa Products	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - June 28, 2023)	1 month LIBOR	5,813			5,714			5,871
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			10,998			10,341
Kellermeyer Bergensons Services, LLC (8)	Outsourced Janitorial Services to Retail/Grocery Customers	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.84%, Secured Debt (Maturity - April 29, 2022) (14)	3 month LIBOR	14,700			14,630			14,902
LaMi Products, LLC (8) (11)	General Merchandise Distribution	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.83%, Secured Debt (Maturity -September 16, 2020)	3 month LIBOR	10,779			10,667			10,727
Larchmont Resources, LLC	Oil & Gas Exploration & Production	LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.33%, Secured Debt (Maturity - August 7, 2020) (8)	3 month LIBOR	$	4,362		$	4,362		$	4,318
		Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)	—	—			601			1,322
							4,963			5,640
LJ Host Merger Sub, Inc. (8)	Managed Services and Hosting Provider	LIBOR Plus 5.25% (Floor 1.25%), Current Coupon 7.29% / 0.50% PIK, Current Coupon Plus PIK 7.59%, Secured Debt (Maturity - December 13, 2019)	3 month LIBOR	17,231			16,993			16,843
Logix Acquisition Company, LLC (8) (11)	Competitive Local Exchange Carrier	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.99%, Secured Debt (Maturity - December 22, 2024) (23)	1 month LIBOR	9,654			9,565			9,726
LSF9 Atlantis Holdings, LLC (8)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.12%, Secured Debt (Maturity - May 1, 2023)	1 month LIBOR	13,563			13,473			13,139
Lulu’s Fashion Lounge, LLC (8)(11)	Fast Fashion E-Commerce Retailer	LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - August 28, 2022)	1 month LIBOR	6,307			6,146			6,433
Meisler Operating, LLC (10) (13)	Provider of Short Term Trailer and Container Rental	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.84%, Secured Debt (Maturity - June 7, 2022) (8)	1 month LIBOR	5,120			5,010			5,017
		Member Units (Milton Meisler Holdings, LLC) (12,139 units)	—	—			1,214			1,393
							6,224			6,410
MHVC Acquisition Corp. (8)	Provider of Differentiated Information Solutions, Systems Engineering and Analytics	LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.64%, Secured Debt (Maturity - April 29, 2024)	3 month LIBOR	7,880			7,835			7,851
New Era Technology, Inc. (8) (11)	Managed Services and Hosting Provider	LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - June 22, 2023)	1 month LIBOR	6,153			6,035			6,092
New Media Holdings II LLC (8) (9)	Local Newspaper Operator	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.49%, Secured Debt (Maturity - July 14, 2022)	1 month LIBOR	9,138			9,034			9,221
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			18,238			18,229
North American Lifting Holdings, Inc. (8)	Crane Service Provider	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.89%, Secured Debt (Maturity - November 27, 2020)	3 month LIBOR	6,261			5,767			6,112
Novetta Solutions, LLC (8)	Provider of Advanced Analytics Solutions for Defense Agencies	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - October 17, 2022)	1 month LIBOR	15,016			14,668			14,584
NTM Acquisition Corp. (8)	Provider of B2B Travel Information Content	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.49%, Secured Debt (Maturity - June 7, 2022)	1 month LIBOR	4,149			4,114			4,154
Pasha Group (8)	Diversified Logistics and Transportation Provided	LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.70%, Secured Debt (Maturity - January 26, 2023)	2 month LIBOR	11,328			11,007			11,491
Permian Holdco 2, Inc.	Storage Tank Manufacturer	14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)	None	955			955			955
		Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares) (16)	—	—			1,997			2,299
		Common Shares (Permian Holdco 1, Inc.) (386,255 shares)	—	—			—			—
							2,952			3,254
Pernix Therapeutics Holdings, Inc. (11)	Pharmaceutical Royalty	12.00% Secured Debt (Maturity - August 1, 2020)	None	2,652			2,637			1,782
Pier 1 Imports, Inc. (8)	Decorative Home Furnishings Retailer	LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.89%, Secured Debt (Maturity - April 30, 2021)	3 month LIBOR	7,494			7,154			6,129
PricewaterhouseCoopers Public Sector LLP (8) (14)	Provider of Consulting Services to Governments	LIBOR Plus 7.50%, Current Coupon 9.74%, Secured Debt (Maturity - May 1, 2026)	1 month LIBOR	12,000			11,942			12,060
Prowler Acquisition Corporation (8)	Specialty Distributor to the Energy Sector	LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.79%, Secured Debt (Maturity - January 28, 2020)	2 month LIBOR	12,313			11,510			12,251
Resolute Industrial, LLC (11)	HVAC Equipment Rental and Remanufacturing	Class A units (601 units)	—	—			750			920
RGL Reservoir Operations, Inc. (9)	Oil & Gas Equipment & Services	1.00% Current / 9.00% PIK Secured Debt (Maturity - December 21, 2024)	None	$	772		$	467		$	386
Rise Broadband (8) (11)	Fixed Wireless Broadband Provider	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.12%, Secured Debt (Maturity - May 2, 2023)	1 month LIBOR	14,925			14,784			14,784
RM Bidder, LLC (11)	Scripted and Unscripted TV and Digital Programming Provider	Common Stock (1,854 shares)	—	—			31			12
		Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)	—	—			284			—
		Series B Warrants (93,686 equivalent units, Expiration - October 20, 2025)	—	—			—			—
							315			12
Salient Partners, LP (8) (11)	Provider of Asset Management Services	LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.99%, Secured Debt (Maturity - June 9, 2021)	1 month LIBOR	7,500			7,468			7,468
Slick Software Holdings LLC (10) (13)	Text Messaging Marketing Platform	14.00% Secured Debt (Maturity - September 13, 2023)	—	1,800			1,701			1,701
		Member units (17,500 units)	—	—			175			175
		Warrants (4,521 equivalent units, Expiration - September 13, 2028)	—	—			45			45
							1,921			1,921
Smart Modular Technologies, Inc. (8) (9) (11) (12)	Provider of Specialty Memory Solutions	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - August 9, 2022)	3 month LIBOR	19,000			18,776			19,095
Sorenson Communications, Inc. (8)	Manufacturer of Communication Products for Hearing Impaired	LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.14%, Secured Debt (Maturity - April 30, 2020)	3 month LIBOR	2,924			2,914			2,939
Strike, LLC (8)	Pipeline Construction and Maintenance Services	LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - November 30, 2022)	3 month LIBOR	9,125			8,915			9,262
Synagro Infrastructure Company, Inc. (8)	Waste Management Services	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.74%, Secured Debt (Maturity - August 22, 2020)	1 month LIBOR	8,291			8,041			7,254
TE Holdings, LLC	Oil & Gas Exploration & Production	Common Units (72,785 units)	—	—			728			76
Teleguam Holdings, LLC (8)	Cable and Telecom Services Provider	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - April 12, 2024) (14)	1 month LIBOR	7,750			7,615			7,808
TGP Holdings III LLC (8) (12)	Outdoor Cooking & Accessories	LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.89%, Secured Debt (Maturity - September 25, 2025) (14)	3 month LIBOR	5,000			5,000			4,969
TMC Merger Sub Corp (8)	Refractory & Maintenance Services Provider	LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - October 31, 2022) (25)	1 month LIBOR	18,779			18,653			18,920
TOMS Shoes, LLC (8)	Global Designer, Distributor, and Retailer of Casual Footwear	LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.81%, Secured Debt (Maturity - October 30, 2020)	3 month LIBOR	4,825			4,631			3,846
Turning Point Brands, Inc. (8) (9) (11)	Marketer/Distributor of Tobacco Products	LIBOR Plus 7.00%, Current Coupon 9.15%, Secured Debt (Maturity - March 7, 2024) (14)	1 month LIBOR	8,500			8,421			8,670
TVG-I-E CMN Acquisition, LLC (8) (11)	Organic Lead Generation for Online Postsecondary Schools	LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.49%, Secured Debt (Maturity - November 3, 2021)	1 month LIBOR	15,920			15,664			15,920
U.S. Telepacific Corp. (8)	Provider of Communications and Managed Services	LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.39%, Secured Debt (Maturity - May 2, 2023)	3 month LIBOR	16,453			16,093			16,227
VIP Cinema Holdings, Inc. (8)	Supplier of Luxury Seating to the Cinema Industry	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - March 1, 2023)	1 month LIBOR	9,250			9,213			9,314
Vistar Media, Inc. (11)	Operator of Digital Out-of-Home Advertising Platform	LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.39%, Secured Debt (Maturity - February 16, 2022) (8)	3 month LIBOR	3,263			3,032			3,088
		Warrants (70,207 equivalent units, Expiration - February 17, 2027)	—	—			331			790
							3,363			3,878
Volusion, LLC (10) (13)	Provider of Online Software-as-a-Service eCommerce Solutions	11.50% Secured Debt (Maturity - January 24, 2020)	None	$	7,172		$	6,674		$	6,740
		11.50% Secured Debt (Maturity - January 26, 2020)	None	1,088			1,088			1,022
		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			810
							14,993			14,699
Wireless Vision Holdings, LLC (8) (11)	Provider of Wireless Telecommunications Carrier Services	LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.99%, Secured Debt (Maturity - September 29, 2022) (23)	1 month LIBOR	12,803			12,521			12,595
YS Garments (8)	Designer and Provider of Branded Activewear	LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.17%, Secured Debt (Maturity - August 9, 2024)	1 month LIBOR	7,500			7,426			7,425
Subtotal Non-Control/Non-Affiliate Investments (5) (83% of total portfolio investments at fair value)							$	944,195		$	933,953
Total Portfolio Investments							$	1,121,043		$	1,130,322
Short Term Investments (20)
Fidelity Institutional Money Market Funds (21)	—	Prime Money Market Portfolio, Class III Shares	—	—			$	4,450		$	4,450
US Bank Money Market Account (21)	—	—	—	—			15,574			15,574
Total Short Term Investments							$	20,024		$	20,024

(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 September 30, 2018 along with transactions during the nine months ended September 30, 2018 in these affiliated investments were as follows (in thousands):

						Nine Months Ended September 30, 2018																Nine Months Ended September 30, 2018
Portfolio Company		Fair Value at December 31, 2017				Gross Additions (Cost)*				Gross Reductions (Cost)**				Net Unrealized Gain (Loss)				Fair Value at September 30, 2018				Net Realized Gain (Loss)			Interest Income			Fee Income			Dividend Income
Affiliate Investments
AFG Capital Group, LLC
Member units		$	897			$	1			$	—			$	87			$	985			$	—		$	—		$	—		$	8
Warrants		215				—				—				20				235				—			—			—			—
Brewer Crane Holdings, LLC
Term loan		—				2,487				(111		)		—				2,376				—			220			—			—
Preferred member units		—				1,070				—				—				1,070				—			—			—			22
Chamberlin HoldCo, LLC
Term loan		—				5,412				(135		)		—				5,277				—			414			2			—
Member units		—				2,861				—				1,587				4,448				—			—			21			306
Charlotte Russe, Inc.
Term loan		—				6,285				(32		)		(698		)		5,555				—			357			—			—
Common stock		—				2,470				—				—				2,470				—			—			—			—
Charps, LLC
Term loan		4,500				28				(627		)		—				3,901				—			403			—			—
Term loan		—				401				(2		)		—				399				—			9			1			—
Preferred member units		163				1				—				99				263				—			—			—			—
Clad-Rex Steel, LLC
Term loan		$	3,320			$	12			$	(200	)		$	(12	)		$	3,120			$	—		$	292		$	—		$	—
Member units		2,375				1				(1		)		220				2,595				—			—			—			—
Term loan (Clad-Rex Steel RE Investor, LLC)		293				—				(4		)		—				289				—			22			—			—
Member units (Clad-Rex Steel RE Investor, LLC)		70				—				—				—				70				—			—			—			128
Digital Products Holdings LLC
Term loan		—				6,611				(215		)		—				6,396				—