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, 2019
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)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
None
N/A
N/A
 
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 79,044,802 shares of common stock outstanding as of August 12, 2019.





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




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, 2019
 
December 31, 2018
 
(Unaudited)
 
 
ASSETS
 
 
 
Portfolio investments at fair value:
 
 
 
Non-Control/Non-Affiliate investments (amortized cost: $918,757 and $932,495 as of June 30, 2019 and December 31, 2018, respectively)
$
885,651

 
$
901,518

Affiliate investments (amortized cost: $139,445 and $143,372 as of June 30, 2019 and December 31, 2018, respectively)
150,459

 
149,323

Control investments (amortized cost: $15,734 and $45,821 as of June 30, 2019 and December 31, 2018, respectively)
32,138

 
55,727

Total portfolio investments (amortized cost: $1,073,936 and $1,121,688 as of June 30, 2019 and December 31, 2018, respectively)
1,068,248

 
1,106,568

 
 
 
 
Cash and cash equivalents
20,667

 
21,757

Interest receivable
8,364

 
9,292

Receivable for securities sold

 
918

Prepaid and other assets
4,258

 
4,038

Deferred financing costs (net of accumulated amortization of $2,316 and $1,642 as of June 30, 2019 and December 31, 2018, respectively)
4,189

 
4,857

Total assets
$
1,105,726

 
$
1,147,430

 
 
 
 
LIABILITIES
 

 
 

Accounts payable and other liabilities
$
2,277

 
$
2,456

Stockholder distributions payable
4,521

 
4,676

Base management and incentive fees payable
6,964

 
5,854

Due to affiliates
54

 
57

Directors’ fees payable
70

 
21

Payable for securities purchased
5,466

 

Credit facilities payable
458,000

 
509,000

Total liabilities
477,352

 
522,064

 
 
 
 
Commitments and Contingencies (Note 13)
 
 
 
 
 
 
 
NET ASSETS
 

 
 

Common stock, $.001 par value; 150,000,000 shares authorized, 78,530,056 and 78,584,824 issued and outstanding as of June 30, 2019 and December 31, 2018, respectively
79

 
79

Additional paid-in capital
678,175

 
678,627

Total accumulated earnings (loss)
(49,880
)
 
(53,340
)
Total net assets
628,374

 
625,366

 
 
 
 
Total liabilities and net assets
$
1,105,726

 
$
1,147,430

 
 
 
 
Net asset value per share
$
8.00

 
$
7.96


See notes to the condensed consolidated financial statements.

1



HMS Income Fund, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share amounts)
(Unaudited) 
 
Three Months Ended
 
Six Months Ended
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
INVESTMENT INCOME:
 

 
 

 
 

 
 

From non-control/non-affiliate investments:
 
 
 
 
 
 
 
Interest income
$
23,298

 
$
22,495

 
$
46,797

 
$
42,752

Fee income
118

 
653

 
425

 
921

Dividend income
859

 
226

 
1,186

 
529

From affiliate investments:
 
 
 
 
 
 
 
Interest income
2,202

 
2,189

 
4,804

 
3,953

Fee income
25

 
53

 
62

 
102

Dividend income
638

 
552

 
1,034

 
1,027

From control investments:
 
 
 
 
 
 
 
Interest income
144

 
156

 
267

 
312

Fee income
18

 
18

 
35

 
35

Dividend income
1,346

 
653

 
3,199

 
1,348

Total investment income
28,648

 
26,995

 
57,809

 
50,979

EXPENSES:
 

 
 

 
 

 
 

Interest expense
6,621

 
6,107

 
13,728

 
11,235

Base management and incentive fees
6,964

 
5,737

 
14,089

 
11,431

Internal administrative services expenses
740

 
617

 
1,498

 
1,421

Offering costs
96

 
104

 
191

 
207

Professional fees
384

 
147

 
700

 
415

Insurance
48

 
48

 
96

 
96

Other general and administrative
540

 
493

 
1,056

 
936

Expenses before fee and expense waivers
15,393

 
13,253

 
31,358

 
25,741

Waiver of internal administrative services expenses
(740
)
 
(617
)
 
(1,498
)
 
(1,421
)
Total expenses, net of fee and expense waivers
14,653

 
12,636

 
29,860

 
24,320

Net investment income before taxes
13,995

 
14,359

 
27,949

 
26,659

Income tax expense, including excise tax
101

 
95

 
159

 
197

NET INVESTMENT INCOME
13,894

 
14,264

 
27,790

 
26,462

NET REALIZED GAIN (LOSS) ON INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
559

 
(536
)
 
(1,072
)
 
(8,693
)
Affiliate investments
242

 

 
(5,266
)
 
912

Control investments
(598
)
 

 
(598
)
 

Total net realized gain (loss) on investments
203

 
(536
)
 
(6,936
)
 
(7,781
)
NET REALIZED INCOME
14,097

 
13,728

 
20,854

 
18,681

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
(6,155
)
 
(2,147
)
 
(1,824
)
 
7,316

Affiliate investments
811

 
388

 
4,437

 
880

Control investments
3,023

 
253

 
7,129

 
902

Total net change in unrealized appreciation (depreciation) on investments
(2,321
)
 
(1,506
)
 
9,742

 
9,098

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$
11,776

 
$
12,222

 
$
30,596

 
$
27,779

PER SHARE INFORMATION - BASIC AND DILUTED
 
 
 
 
 
 
 
NET INVESTMENT INCOME PER SHARE
$
0.17

 
$
0.18

 
$
0.35

 
$
0.33

NET REALIZED INCOME PER SHARE
$
0.17

 
$
0.17

 
$
0.26

 
$
0.23

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)
$
0.15

 
$
0.16

 
$
0.39

 
$
0.35

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED
78,793,480

 
79,330,060

 
78,806,540

 
79,586,935


See notes to the condensed consolidated financial statements.

2



HMS Income Fund, Inc.
Condensed Consolidated Statements of Changes in Net Assets
(dollars in thousands, except share and per share amounts)
(Unaudited) 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Change in Net Assets from Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
13,894

 
$
14,264

 
$
27,790

 
$
26,462

Net realized gain (loss) on investments
 
203

 
(536
)
 
(6,936
)
 
(7,781
)
Net change in unrealized appreciation (depreciation) on investments
 
(2,321
)
 
(1,506
)
 
9,742

 
9,098

Net increase in net assets resulting from operations
 
11,776

 
12,222

 
30,596

 
27,779

 
 
 
 
 
 
 
 
 
Change in Net Assets from Stockholders’ Distributions:
 
 
 
 
 
 
 
 
Net decrease in net assets resulting from stockholders’ distributions
 
(13,754
)
 
(13,855
)
 
(27,360
)
 
(27,658
)
 
 
 
 
 
 
 
 
 
Change in Net Assets from Capital Share Transactions:
 
 
 
 
 
 
 
 
Reinvestment of stockholder distributions
 
6,369

 
6,890

 
12,735

 
13,819

Repurchase of common stock
 
(6,410
)
 
(10,154
)
 
(12,963
)
 
(19,560
)
Net decrease in net assets resulting from capital share transactions
 
(41
)
 
(3,264
)
 
(228
)
 
(5,741
)
 
 
 
 
 
 
 
 
 
Total Increase (Decrease) in Net Assets
 
(2,019
)
 
(4,897
)
 
3,008

 
(5,620
)
Net Assets at beginning of the period
 
630,393

 
647,066

 
625,366

 
647,789

Net Assets at end of the period
 
$
628,374

 
$
642,169

 
$
628,374

 
$
642,169

 
 
 
 
 
 
 
 
 
NAV per share at end of the period
 
$
8.00

 
$
8.15

 
$
8.00

 
$
8.15

Distributions declared per share
 
$
0.18

 
$
0.18

 
$
0.35

 
$
0.35

 
 
 
 
 
 
 
 
 
Common shares outstanding, beginning of the period
 
78,547,196

 
79,201,065

 
78,584,824

 
79,511,731

Issuance of common shares pursuant to distribution reinvestment plan
 
786,100

 
830,233

 
1,568,643

 
1,666,634

Repurchase of common shares
 
(803,240
)
 
(1,242,891
)
 
(1,623,411
)
 
(2,389,958
)
Common shares outstanding, end of the period
 
78,530,056

 
78,788,407

 
78,530,056

 
78,788,407


See notes to the condensed consolidated financial statements.


3



HMS Income Fund, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited) 
 
Six Months Ended 
 June 30, 2019
 
Six Months Ended 
 June 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
 

 
 

Net increase in net assets resulting from operations
$
30,596

 
$
27,779

Adjustments to reconcile net increase in net assets resulting from operations to net cash generated from (used in) operating activities:
 
 
 
Principal repayments received and proceeds from sales of investments in portfolio companies
191,462

 
243,113

Investments in portfolio companies
(138,818
)
 
(314,312
)
Net change in unrealized (appreciation) on portfolio investments
(9,742
)
 
(9,098
)
Net realized loss on sale of portfolio investments
6,936

 
7,781

Amortization of deferred financing costs
674

 
667

Amortization of deferred offering costs
191

 
207

Accretion of unearned income
(4,054
)
 
(4,286
)
Net payment-in-kind interest accrual
(2,365
)
 
(483
)
Changes in other assets and liabilities:
 
 
 

Interest receivable
928

 
633

Prepaid and other assets
638

 
(528
)
Base management and incentive fees payable
1,110

 
55

Due to affiliates
(3
)
 
(13
)
Directors’ fees payable
49

 
26

Accounts payable and other liabilities
242

 
143

Net cash generated from (used in) operating activities
77,844

 
(48,316
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

Redemption of common stock
(12,963
)
 
(19,560
)
Payment of offering costs
(191
)
 
(207
)
Payment of stockholder distributions
(14,780
)
 
(14,075
)
Repayments on credit facilities payable
(108,000
)
 
(169,000
)
Proceeds from credit facilities payable
57,000

 
243,000

Net cash generated from (used in) financing activities
(78,934
)
 
40,158

 
 
 
 
Net decrease in cash and cash equivalents
(1,090
)
 
(8,158
)
 
 
 
 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
21,757

 
45,791

 
 
 
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
$
20,667

 
$
37,633

 
See notes to the condensed consolidated financial statements.


4


-
HMS Income Fund, Inc.
Consolidated Schedule of Investments
As of June 30, 2019
(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)
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 7.00% (Floor 1.00%), Current Coupon 9.44%, Secured Debt (Maturity - December 31, 2023) (8)
1 month LIBOR
6,530

6,506

6,530

 
 
Member Units (2,896 units) (16)

6,435

22,721

 
 
 
 
 
12,941

29,251

Harris Preston Fund Investments (9) (15)
Investment Partnership
LP Interests (2717 MH, LP) (Fully diluted 49.3%)

1,735

1,829

HMS-ORIX SLF, LLC (9) (15)
Investment Partnership
Membership Interests (Fully diluted 60.0%) (16)

186

186

 
 
 
 
 
 
 
Subtotal Control Investments (6) (3% of total investments at fair value)
 
 
$
15,734

$
32,138

Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)
Provider of Rent-to-Own Financing Solutions and Services
10.00% Secured Debt (Maturity - May 25, 2022) (14)
None
$
253

$
253

$
253

 
 
Member Units (46 units) (16)

300

1,138

 
 
 
 
 
553

1,391

Brewer Crane Holdings, LLC (10) (13)
Provider of Crane Rental and Operating Services
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.44%, Secured Debt (Maturity - January 9, 2023) (8)
1 month LIBOR
2,325

2,290

2,290

 
 
Preferred Member Units (737 units) (16)

1,070

1,070

 
 
 
 
 
3,360

3,360

Centre Technologies Holdings, LLC (10) (13)
Provider of IT Hardware Services and Software Solutions
LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity - January 4, 2024) (8)
1 month LIBOR
3,060

2,998

3,003

 
 
Preferred Member Units (3,174 units)

1,460

1,460

 
 
 
 
 
4,458

4,463

Chamberlin Holding, LLC (10) (13)
Roofing and Waterproofing Specialty Subcontractor
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.63%, Secured Debt (Maturity - February 23, 2023) (8)
1 month LIBOR
4,719

4,612

4,612

 
 
Member Units (1,087 units) (16)

2,860

5,749

 
 
Member Units (Chamberlin Langfield Real Estate, LLC) (1 unit) (16)

183

183

 
 
 
 
 
7,655

10,544

Charlotte Russe, Inc.
Fast-Fashion Retailer to Young Women
Common Stock (14,973 shares)

2,470


Charps, LLC (10) (13)
Pipeline Maintenance and Construction
15.00% Secured Debt (Maturity - June 5, 2022) (14)
None
500

500

500

 
 
Preferred Member Units (400 units) (16)

100

1,158

 
 
 
 
 
600

1,658

Clad-Rex Steel, LLC (10) (13)
Specialty Manufacturer of Vinyl-Clad Metal
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.44%, Secured Debt (Maturity - December 20, 2021) (8)
1 month LIBOR
2,920

2,886

2,920

 
 
Member Units (179 units) (16)

1,820

2,568

 
 
10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)
None
288

285

285

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

53

88

 
 
 
 
 
5,044

5,861

Copper Trail Energy Fund I, LP (9) (15)
Investment Partnership
LP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 12.4%) (16)

2,311

3,072

Digital Products Holdings LLC (10) (13)
Designer and Distributor of Consumer Electronics
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.50%, Secured Debt (Maturity - March 31, 2023) (8)
1 month LIBOR
6,269

6,167

6,219

 
 
Preferred Member Units (863 units) (16)

2,116

1,992

 
 
 
 
 
8,283

8,211

Direct Marketing Solutions, Inc. (10) (13)
Provider of Omni-Channel Direct Marketing Services
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity - February 13, 2023) (8)
1 month LIBOR
$
4,387

$
4,290

$
4,297

 
 
Preferred Stock (2,100 shares)

2,100

4,038

 
 
 
 
 
6,390

8,335

Freeport Financial Funds (9) (15)
Investment Partnership
LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.0%) (16)

10,555

10,290

Gamber-Johnson Holdings, LLC (10) (13)
Manufacturer of Ruggedized Computer Mounting Systems
LIBOR Plus 7.00% (Floor 2.00%), Current Coupon 9.44%, Secured Debt (Maturity - June 24, 2021) (8)
1 month LIBOR
4,955

4,895

4,955

 
 
Member Units (2,155 units) (16)

3,711

11,367

 
 
 
 
 
8,606

16,322

Guerdon Modular Holdings, Inc. (10) (13)
Multi-Family and Commercial Modular Construction Company
16.00% Secured Debt (Maturity - October 1, 2019) (18)
None
3,147

3,135

2,621

 
 
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.09%, Secured Debt (Maturity - October 1, 2019) (8) (18)
3 month LIBOR
116

116

116

 
 
Common Stock (53,008 shares)

746


 
 
Class B Preferred Stock (101,250 shares)

285


 
 
 
 
 
4,282

2,737

Gulf Publishing Holdings, LLC (10) (13)
Energy Industry Focused Media and Publishing
12.50% Secured Debt (Maturity - April 29, 2021)
None
3,134

3,105

3,105

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.94%, Secured Debt (Maturity - September 30, 2020) (8)
1 month LIBOR
80

80

80

 
 
Member Units (920 units)

920

1,082

 
 
 
 
 
4,105

4,267

Harris Preston Fund Investments (9) (15)
Investment Partnership
LP Interests (HPEP 3, LP) (Fully diluted 8.2%)

2,233

2,233

Hawk Ridge Systems, LLC (9) (10) (13)
Value-Added Reseller of Engineering Design and Manufacturing Solutions
10.00% Secured Debt (Maturity - December 2, 2021)
None
3,350

3,310

3,350

 
 
Preferred Member Units (56 units) (16)

713

1,815

 
 
Preferred Member Units (HRS Services, ULC) (56 units) (16)

38

95

 
 
 
 
 
4,061

5,260

KMC Investor, LLC (10) (13)
Precision Metal Parts Manufacturing
11.50% Secured Debt (Maturity - October 31, 2023) (8)
None
6,799

6,611

6,617

 
 
9.00% Secured Debt (Maturity October 31, 2048)
None
998

980

980

 
 
Member Units (145 units)

248

248

 
 
Member Units (KMC RE Investor, LLC) (200 units) (16)

3,060

3,060

 
 
 
 
 
10,899

10,905

Market Force Information, Inc. (10) (13)
Provider of Customer Experience Management Services
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.52%, Secured Debt (Maturity - July 28, 2022) (8)
3 month LIBOR
5,700

5,628

5,628

 
 
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - July 28, 2022) (8)
3 month LIBOR
377

377

377

 
 
Member Units (170,000 units)

3,675

2,756

 
 
 
 
 
9,680

8,761

M.H. Corbin Holding LLC (10) (13)
Manufacturer and Distributor of Traffic Safety Products
5.00% Current / 5.00% PIK Secured Debt (Maturity - March 15, 2022)
None
2,158

2,132

2,158

 
 
Preferred Member Units (16,500 units)

1,100

1,192

 
 
Common Units (1,000 units)

1,500

5

 
 
 
 
 
4,732

3,355

 
 
 
 
 
 
 
Mystic Logistics Holdings, LLC (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
12.00% Secured Debt (Maturity - August 15, 2019)
None
$
1,770

$
1,766

$
1,766

 
 
Common Stock (1,468 shares)

680

522

 
 
 
 
 
2,446

2,288

NexRev, LLC (10) (13)
Provider of Energy Efficiency Products & Services
11.00% Secured Debt (Maturity - February 28, 2023)
None
4,305

4,231

4,238

 
 
Preferred Member Units (21,600,000 units) (16)

1,720

1,719

 
 
 
 
 
5,951

5,957

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

5,086

5,086

 
 
Preferred Member Units (102 units)

2,550

2,550

 
 
 
 
 
7,636

7,636

SI East, LLC (10) (13)
Rigid Industrial Packaging Manufacturing
10.25% Secured Debt (Maturity - August 31, 2023)
None
11,563

11,401

11,563

 
 
Preferred Member Units (52 units) (16)

2,000

2,244

 
 
 
 
 
13,401

13,807

Tedder Acquisition, LLC (10) (13)
Manufacturer of Firearm Holsters and Accessories
12.00% Secured Debt (Maturity - August 31, 2023)
None
4,100

3,992

3,992

 
 
12.00% Secured Debt (Maturity - August 31, 2020)
None
200

198

198

 
 
Preferred Member Units (110 units)

1,869

1,869

 
 
 
 
 
6,059

6,059

Trantech Radiator Topco, LLC (10) (13)
Transformer Cooling Products and Services
12.00% Secured Debt (Maturity - May 31, 2024)
None
2,600

2,511

2,523

 
 
Common Stock (154 shares) (16)

1,164

1,164

 
 
 
 
 
3,675

3,687

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (14% of total investments at fair value)
 
 
$
139,445

$
150,459

 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)
Substance Abuse Treatment Service Provider
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.33% / 4.00% PIK, Current Coupon Plus PIK 13.33%, Secured Debt (Maturity - June 30, 2023)
3 month LIBOR
$
14,396

$
14,025

$
12,957

 
 
LIBOR Plus 8.75% (Floor 1.00%), Current Coupon 13.49%, Secured Debt (Maturity - April 15, 2020)
3 month LIBOR
1,855

1,687

1,883

 
 
 
 
 
15,712

14,840

Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 10.08%, Secured Debt (Maturity - July 3, 2023)
3 month LIBOR
7,070

6,950

6,943

 
 
LIBOR Plus 7.00% (Floor 1.50%), Current Coupon 9.85%, Secured Debt (Maturity - July 3, 2023)
3 month LIBOR
223

208

219

 
 
PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 3, 2023)
PRIME
5,000

4,920

4,920

 
 
 
 
 
12,078

12,082

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 8.65%, Secured Debt (Maturity - July 26, 2023)
1 month LIBOR
15,910

15,860

15,910

Aethon United BR, LP (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.16%, Secured Debt (Maturity - September 8, 2023) (14)
1 month LIBOR
4,063

4,016

4,063

Allen Media, LLC (8)
Operator of Cable Television Networks
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.90%, Secured Debt (Maturity - August 30, 2023)
3 month LIBOR
16,708

16,285

16,667

American Nuts, LLC (8) (11)
Roaster, Mixer and Packager of Bulk Nuts and Seeds
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 12.09%, Secured Debt (Maturity - April 10, 2023)
3 month LIBOR
12,298

12,074

11,916

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
$
5,970

$
5,923

$
5,941

American Teleconferencing Services, Ltd. (8)
Provider of Audio Conferencing and Video Collaboration Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity - December 8, 2021)
2 month LIBOR
14,163

13,619

8,321

APTIM Corp
Engineering, Construction and Procurement
7.75% Secured Debt (Maturity - June 15, 2025)
None
6,952

6,208

5,318

Arcus Hunting, LLC (8) (11)
Manufacturer of Bowhunting and Archery Products and Accessories
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.59%, Secured Debt (Maturity - November 13, 2020)
1 month LIBOR
7,832

7,819

7,832

Arise Holdings, Inc. (11)
Tech-Enabled Business Process Outsourcing
Preferred Stock (1,000,000 shares)

1,000

1,896

ASC Ortho Management Company, LLC (11)
Provider of Orthopedic Services
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.09%, Secured Debt (Maturity - August 31, 2023) (8)
3 month LIBOR
4,602

4,512

4,459

 
 
13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)
None
1,678

1,639

1,641

 
 
 
 
 
6,151

6,100

ATI Investment Sub, Inc. (8)
Manufacturer of Solar Tracking Systems
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity - June 22, 2021)
1 month LIBOR
3,385

3,329

3,152

ATX Networks Corp. (8) (9)
Provider of Radio Frequency Management Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.35% / 1.00% PIK, Current Coupon Plus PIK 9.35%, Secured Debt (Maturity - June 11, 2021)
3 month LIBOR
13,830

13,671

13,104

BarFly Ventures, LLC (11)
Casual Restaurant Group
12.00% Secured Debt (Maturity - August 31, 2020)
None
3,395

3,369

3,293

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

158

137

 
 
Options (.99 equivalent units)

202

313

 
 
 
 
 
3,729

3,743

BBB Tank Services, LLC (10) (13)
Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.44%, Secured Debt (Maturity - April 8, 2021)
1 month LIBOR
1,160

1,155

1,129

 
 
Preferred Stock (28,280 units)

28

31

 
 
Member Units (200,000 units)

200

30

 
 
 
 
 
1,383

1,190

Berry Aviation, Inc. (11)
Airline Charter Service Operator
10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)
None
4,514

4,455

4,514

 
 
Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative) (16)
1,548

1,661

 
 
 
 
 
6,003

6,175

BigName Commerce, LLC (8) (11)
Provider of Envelopes and Complimentary Stationery Products
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - May 11, 2022)
1 month LIBOR
2,412

2,394

2,377

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
13,828

13,628

13,828

 
 
Member Units (1,050,000 units)

1,050

1,230

 
 
 
 
 
14,678

15,058

Bluestem Brands, Inc. (8)
Multi-Channel Retailer of General Merchandise
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.00%, Secured Debt (Maturity - November 6, 2020)
3 month LIBOR
11,794

11,713

8,993

Boccella Precast Products, LLC (10) (13)
Manufacturer of Precast Hollow Core Concrete
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 14.59%, Secured Debt (Maturity - June 30, 2022) (8)
3 month LIBOR
3,551

3,491

3,551

 
 
Member Units (540,000 units) (16)

564

1,340

 
 
 
 
 
4,055

4,891

 
 
 
 
 
 
 
Brightwood Capital Fund Investments (9) (15)
Investment Partnership
LP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)
$

$
3,995

$
3,406

 
 
LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)

7,037

7,126

 
 
 
 
 
11,032

10,532

Buca C, LLC (10) (13)
Casual Restaurant Group
LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.68%, Secured Debt (Maturity - June 30, 2020) (8)
1 month LIBOR
12,670

12,609

12,517

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

3,040

3,040

 
 
 
 
 
15,649

15,557

Cadence Aerospace, LLC (8) (11)
Aerospace Manufacturing
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.83%, Secured Debt (Maturity - November 14, 2023)
3 month LIBOR
19,218

19,218

19,371

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.00% Secured Debt (Maturity - December 7, 2023)
None
2,550

2,554

2,550

 
 
Member Units (16,742 units) (16)

188

1,235

 
 
 
 
 
2,742

3,785

Cenveo Corporation
Provider of Digital Marketing Agency Services
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.42%, Secured Debt (Maturity - June 7, 2023) (8)
1 month LIBOR
4,449

4,146

4,260

 
 
Common Stock (138,889 shares)

4,163

2,014

 
 
 
 
 
8,309

6,274

Chisholm Energy Holdings, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 8.77%, Secured Debt (Maturity - May 15, 2026) (14)
3 month LIBOR
3,571

3,473

3,473

Clarius BIGS, LLC (11) (18)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,128

1,870

28

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
770

677

10

 
 
 
 
 
2,547

38

Clickbooth.com, LLC (8) (11)
Provider of Digital Advertising Performance Marketing Solutions
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - December 5, 2022)
3 month LIBOR
2,700

2,657

2,700

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 8.41%, Secured Debt (Maturity - June 30, 2023) (8)
1 month LIBOR
16,455

16,347

16,413

 
 
Member units (42,207 units)

4,409

6,512

 
 
 
 
 
20,756

22,925

CTVSH, PLLC (8) (11) (13)
Emergency Care and Specialty Service Animal Hospital
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.52%, Secured Debt (Maturity - August 3, 2022)
1 month LIBOR
2,600

2,563

2,600

Datacom, LLC (10) (13)
Technology and Telecommunications Provider
10.50% PIK Secured Debt (Maturity - May 30, 2019) (18) (19)
None
1,384

1,369

1,082

 
 
8.00% Secured Debt (Maturity - May 30, 2019) (18) (19)
None
200

200

173

 
 
Class A Preferred Member Units (1,530 units)

144


 
 
Class B Preferred Member Units (717 units)

670


 
 
 
 
 
2,383

1,255

Digital River, Inc. (8)
Provider of Outsourced e-Commerce Solutions and Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.43%, Secured Debt (Maturity - February 12, 2021)
3 month LIBOR
9,759

9,707

9,808

DTE Enterprises, LLC (11)
Industrial Powertrain Repair and Services
LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 10.11%, Secured Debt (Maturity - April 13, 2023) (8)
3 month LIBOR
11,742

11,548

11,742

 
 
Class AA Preferred Member Units (non-voting) (16)

797

797

 
 
Class A Preferred Member Units (776,316 units) (16)

776

1,490

 
 
 
 
 
13,121

14,029

Dynamic Communities, LLC (8) (11)
Developer of Business Events and Online Community Groups
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - July 17, 2023)
3 month LIBOR
5,495

5,400

5,347

Elite SEM, Inc. (8) (11)
Provider of Digital Marketing Agency Services
LIBOR Plus 8.44% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - February 1, 2022)
3 month LIBOR
$
6,875

$
6,766

$
6,854

Epic Y-Grade Services, LP (8)
NGL Transportation & Storage
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity - June 13, 2024)
1 month LIBOR
15,275

15,012

14,855

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 10.65%, Secured Debt (Maturity - April 28, 2022) (14)
1 month LIBOR
10,901

10,626

4,297

Felix Investments Holdings II, LLC (8) (11)
Oil and Gas Exploration and Production
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity - August 9, 2022)
3 month LIBOR
5,000

4,935

4,975

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
10,719

10,552

10,049

GI KBS Merger Sub LLC (8)
Outsourced Janitorial Services to Retail/Grocery Customers
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.08%, Secured Debt (Maturity - April 29, 2022) (14)
3 month LIBOR
14,700

14,643

14,829

Good Source Solutions, Inc. (8) (11)
Specialized Food Distributor
LIBOR Plus 8.32% (Floor 1.00%), Current Coupon 10.65%, Secured Debt (Maturity - June 29, 2023)
3 month LIBOR
5,000

4,956

4,895

GoWireless Holdings, Inc. (8)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.90%, Secured Debt (Maturity - December 22, 2024)
3 month LIBOR
15,326

15,207

14,936

HDC/HW Intermediate Holdings, LLC (8) (11)
Managed Services and Hosting Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.83%, Secured Debt (Maturity - December 21, 2023)
3 month LIBOR
1,852

1,816

1,849

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 9.68%, Secured Debt (Maturity - January 28, 2021)
3 month LIBOR
14,621

14,147

14,255

 
 
LIBOR Plus 6.00% (Floor 0.00%), Current Coupon 9.18%, Secured Debt (Maturity - January 28, 2020)
3 month LIBOR
6,950

6,702

6,559

 
 
 
 
 
20,849

20,814

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
8,696

8,577

8,696

HW Temps LLC (10) (13)
Temporary Staffing Solutions
8.00% Secured Debt (Maturity - March 29, 2023)
None
2,680

2,621

2,355

Hydrofarm Holdings, LLC (8) (11)
Wholesaler of Horticultural Products
LIBOR Plus 10.00%, Current Coupon 3.72% / 8.68% PIK, Current Coupon Plus PIK 12.40%, Secured Debt (Maturity - May 12, 2022)
1 month LIBOR
7,309

7,217

5,840

iEnergizer Limited (8) (9) (11)
Provider of Business Outsourcing Solutions
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - April 17, 2024)
1 month LIBOR
14,488

14,347

14,346

Implus Footcare, LLC (8) (11)
Provider of Footwear and Related Accessories
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - April 30, 2024)
3 month LIBOR
17,063

16,682

17,063

Independent Pet Partners Intermediate Holdings, LLC (8) (11)
Omnichannel Retailer of Specialty Pet Products
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.66%, Secured Debt (Maturity - November 19, 2023) (14)
3 month LIBOR
13,237

12,986

13,197

 
 
Member Units (1,191,667 units)

1,192

1,192

 
 
 
 
 
14,178

14,389

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
11,598

11,574

11,598

 
 
Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)

202

202

 
 
Preferred Member Units (Industrial Services Investments, LLC) (187 units, 20.00% cumulative)

124

124

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

2,100

1,214

 
 
 
 
 
14,000

13,138

Intermedia Holdings, Inc. (8)
Unified Communications as a Service
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - July 19, 2025)
1 month LIBOR
3,534

3,502

3,542

Isagenix International, LLC (8)
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
$
6,107

$
6,052

$
4,855

Jackmont Hospitality, Inc. (8) (11)
Franchisee of Casual Dining Restaurants
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity - May 26, 2021)
1 month LIBOR
8,224

8,212

8,224

Joerns Healthcare, LLC (8)
Manufacturer and Distributor of Health Care Equipment & Supplies
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - May 9, 2020) (18)
3 month LIBOR
11,119

11,034

5,315

 
 
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - October 24, 2019)
1 month LIBOR
944

944

944

 
 
 
 
 
11,978

6,259

Kemp Technologies Inc. (8) (11)
Provider of Application Delivery Controllers
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - March 29, 2024)
3 month LIBOR
7,500

7,350

7,350

Knight Energy Services LLC (11)
Oil and Gas Equipment and Services
8.50% Secured Debt (Maturity - February 9, 2024)
None
792

792

792

 
 
Class A-2 Shares (25,692 units)

1,843

1,843

 
 
 
 
 
2,635

2,635

Kore Wireless Group, Inc. (12)
Mission Critical Software Platform
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.83%, Secured Debt (Maturity - December 20, 2024) (8)
3 month LIBOR
5,486

5,466

5,452

Larchmont Resources, LLC
Oil & Gas Exploration & Production
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.46%, Secured Debt (Maturity - August 7, 2020) (8)
3 month LIBOR
3,614

3,614

3,407

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

601

1,201

 
 
 
 
 
4,215

4,608

Laredo Energy VI, LP (8) (11)
Oil and Gas Exploration and Production
LIBOR Plus 10.50% (Floor 2.00%) PIK, Current Coupon 13.05%, Secured Debt (Maturity - November 19, 2021)
6 month LIBOR
9,317

9,112

9,112

Lightbox Holdings, L.P. (8)
Provider of Commercial Real Estate Software
LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 7.45%, Secured Debt (Maturity - May 9, 2026)
3 month LIBOR
5,000

4,926

4,950

LL Management, Inc. (8) (11)
Medical Transportation Service Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.23%, Secured Debt (Maturity - September 25, 2023)
3 month LIBOR
13,783

13,639

13,639

Logix Acquisition Company, LLC (8) (11)
Competitive Local Exchange Carrier
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.15%, Secured Debt (Maturity - December 22, 2024) (23)
1 month LIBOR
12,824

12,744

12,824

LSF9 Atlantis Holdings, LLC (8)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.42%, Secured Debt (Maturity - May 1, 2023)
1 month LIBOR
13,300

13,224

12,505

Lulu’s Fashion Lounge, LLC (8) (11)
Fast Fashion E-Commerce Retailer
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.40%, Secured Debt (Maturity - August 28, 2022)
1 month LIBOR
5,923

5,763

5,805

Mac Lean-Fogg Company (11)
Manufacturer and Supplier for Auto and Power Markets
LIBOR Plus 4.75%, Current Coupon 7.08%, Secured Debt (Maturity - December 22, 2025) (8)
3 month LIBOR
7,171

7,116

7,116

 
 
Preferred Stock (650 shares, 4.50% cash / 9.25% PIK, cumulative) (16)

757

757

 
 
 
 
 
7,873

7,873

Mariner CLO 7, Ltd. (9) (15)
Structured Finance
Subordinated Structured Notes (estimated yield of 12.0% due April 30, 2032)
25,935

23,277

23,277

Meisler Operating, LLC (10) (13)
Provider of Short Term Trailer and Container Rental
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - June 7, 2022) (8)
3 month LIBOR
6,300

6,187

6,294

 
 
Member Units (Milton Meisler Holdings, LLC) (12,139 units)

1,214

1,758

 
 
 
 
 
7,401

8,052

MHVC Acquisition Corp. (8)
Provider of Differentiated Information Solutions, Systems Engineering and Analytics
LIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity - April 29, 2024)
1 month LIBOR
7,820

7,780

7,771

Mills Fleet Farm Group, LLC (8) (11)
Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.65%, Secured Debt (Maturity - October 24, 2024)
1 month LIBOR
14,925

14,652

14,652

Mobileum, Inc. (8) (11)
Provider of Big Data Analytics to Telecom Service Providers
LIBOR Plus 10.25% (Floor 0.75%), Current Coupon 12.58%, Secured Debt (Maturity - May 1, 2022) (14)
3 month LIBOR
$
7,500

$
7,439

$
7,440

New Era Technology, Inc. (8) (11)
Managed Services and Hosting Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.94%, Secured Debt (Maturity - June 22, 2023)
1 month LIBOR
9,039

8,907

8,966

New Media Holdings II LLC (8) (9)
Local Newspaper Operator
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.58%, Secured Debt (Maturity - July 14, 2022)
3 month LIBOR
9,669

9,590

9,641

NNE Partners, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 10.52%, Secured Debt (Maturity - March 2, 2022)
3 month LIBOR
20,417

20,295

20,417

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
6,211

5,878

5,899

Novetta Solutions, LLC (8)
Provider of Advanced Analytics Solutions for Defense Agencies
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.41%, Secured Debt (Maturity - October 17, 2022)
1 month LIBOR
14,900

14,610

14,683

NTM Acquisition Corp. (8)
Provider of B2B Travel Information Content
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.65%, Secured Debt (Maturity - June 7, 2022)
1 month LIBOR
3,979

3,954

3,919

Pasha Group (8)
Diversified Logistics and Transportation Provided
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.94%, Secured Debt (Maturity - January 26, 2023)
2 month LIBOR
9,961

9,713

10,067

Permian Holdco 2, Inc.
Storage Tank Manufacturer
14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)
None
1,061

1,061

775

 
 
18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)
None
725

725

725

 
 
Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares) (16)

1,997

825

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



 
 
 
 
 
3,783

2,325

Pier 1 Imports, Inc. (8)
Decorative Home Furnishings Retailer
LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.70%, Secured Debt (Maturity - April 30, 2021)
3 month LIBOR
7,415

7,184

1,854

PricewaterhouseCoopers Public Sector LLP (8)
Provider of Consulting Services to Governments
LIBOR Plus 7.50%, Current Coupon 9.90%, Secured Debt (Maturity - May 1, 2026) (14)
1 month LIBOR
14,100

14,055

14,030

Rise Broadband (8) (11)
Fixed Wireless Broadband Provider
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.41%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
14,813

14,691

14,813

RM Bidder, LLC (11)
Scripted and Unscripted TV and Digital Programming Provider
Common Stock (1,854 shares)

31

8

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

284


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



 
 
 
 
 
315

8

Salient Partners, LP (8) (11)
Provider of Asset Management Services
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.18%, Secured Debt (Maturity - June 9, 2021)
1 month LIBOR
6,900

6,923

6,872

Slick Software Holdings LLC (10) (13)
Text Messaging Marketing Platform
14.00% Secured Debt (Maturity - September 13, 2023)
1,600

1,510

1,510

 
 
Member units (17,500 units)

175

222

 
 
Warrants (4,521 equivalent units, Expiration - September 13, 2028)

45

60

 
 
 
 
 
1,730

1,792

Smart Modular Technologies, Inc. (8) (9) (11)
Provider of Specialty Memory Solutions
LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - August 9, 2022)
3 month LIBOR
19,000

18,823

19,190

STL Parent Corp (8)
Manufacturer and Servicer of Tank and Hopper Railcars
LIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.40%, Secured Debt (Maturity - December 5, 2022)
1 month LIBOR
11,850

11,481

11,969

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

728


Teleguam Holdings, LLC (8)
Cable and Telecom Services Provider
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - April 12, 2024) (14)
1 month LIBOR
$
7,750

$
7,629

$
7,798

TGP Holdings III LLC (8)
Outdoor Cooking & Accessories
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.83%, Secured Debt (Maturity - September 25, 2025) (14)
3 month LIBOR
5,000

5,000

4,700

TMC Merger Sub Corp (8)
Refractory & Maintenance Services Provider
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.19%, Secured Debt (Maturity - October 31, 2022) (25)
1 month LIBOR
17,300

17,127

17,128

TOMS Shoes, LLC (8)
Global Designer, Distributor, and Retailer of Casual Footwear
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - October 30, 2020)
3 month LIBOR
4,788

4,662

3,686

Turning Point Brands, Inc. (8) (9) (11)
Marketer/Distributor of Tobacco Products
LIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.40%, Secured Debt (Maturity - March 7, 2024) (14)
1 month LIBOR
6,592

6,530

6,658

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
16,453

16,145

15,716

VIP Cinema Holdings, Inc. (8)
Supplier of Luxury Seating to the Cinema Industry
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.41%, Secured Debt (Maturity - March 1, 2023)
1 month LIBOR
8,875

8,844

8,165

Vistar Media, Inc. (11)
Operator of Digital Out-of-Home Advertising Platform
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.33%, Secured Debt (Maturity - February 16, 2022) (8)
3 month LIBOR
5,764

5,534

5,713

 
 
Warrants (69,675 equivalent units, Expiration - April 3, 2029)


820

 
 
Preferred Stock (70,207 shares)

767

830

 
 
 
 
 
6,301

7,363

Volusion, LLC (10) (13)
Provider of Online Software-as-a-Service eCommerce Solutions
11.50% Secured Debt (Maturity - January 24, 2020)
None
8,672

8,423

8,464

 
 
8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)
None
175

175

124

 
 
Preferred Member Units (2,090,001 units)

6,000

6,000

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

1,104

244

 
 
 
 
 
15,702

14,832

Wireless Vision Holdings, LLC (8) (11)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 12.49% / 1.00% PIK, Current Coupon Plus PIK 13.49%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
13,738

13,382

13,588

YS Garments (8)
Designer and Provider of Branded Activewear
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.37%, Secured Debt (Maturity - August 9, 2024)
1 month LIBOR
7,359

7,294

7,304

Subtotal Non-Control/Non-Affiliate Investments (5) (83% of total portfolio investments at fair value)
 
 
$
918,757

$
885,651

Total Portfolio Investments
 
 
 
 
$
1,073,936

$
1,068,248

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

$
8,619

$
8,619

US Bank Money Market Account (21)

6,361

6,361

Total Short Term Investments
 
 
 
 
$
14,980

$
14,980


(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 6 — 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, 2018 and June 30, 2019 along with transactions during the six months ended June 30, 2019 in these affiliated investments were as follows (in thousands):
 
 
 
Six Months Ended June 30, 2019
 
 
 
Six Months Ended June 30, 2019
Portfolio Company
Fair Value at December 31, 2018
 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 
Net Unrealized Gain (Loss) ***
 
Fair Value at June 30, 2019
 
Net Realized Gain (Loss)
Interest Income
Fee Income
Dividend Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFG Capital Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
$

 
$
260

 
$
(7
)
 
$

 
$
253

 
$

$
5

$

$

Member units
995

 
1

 

 
142

 
1,138

 



(10
)
Warrants
237

 
195

 
(260
)
 
(172
)
 

 
195




Brewer Crane Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
2,347

 
5

 
(62
)
 

 
2,290

 

152



Preferred member units
1,070

 

 

 

 
1,070

 



15

Centre Technologies Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan

 
3,064

 
(67
)
 
6

 
3,003

 

182

15


Preferred member units

 
1,460

 

 

 
1,460

 




Chamberlin HoldCo, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
4,933

 
11

 
(332
)
 

 
4,612

 

328

30


Member units
4,735

 

 

 
1,014

 
5,749

 



117

Member units
183

 

 

 

 
183

 



3

Charlotte Russe, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
3,090

 

 
(6,236
)
 
3,146

 

 
(5,430
)
(84
)


Common stock