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, 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 79,009,406 shares of common stock outstanding as of November 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)
 
September 30, 2019
 
December 31, 2018
 
(Unaudited)
 
 
ASSETS
 
 
 
Portfolio investments at fair value:
 
 
 
Non-Control/Non-Affiliate investments (amortized cost: $900,620 and $932,495 as of September 30, 2019 and December 31, 2018, respectively)
$
870,059

 
$
901,518

Affiliate investments (amortized cost: $139,238 and $143,372 as of September 30, 2019 and December 31, 2018, respectively)
150,491

 
149,323

Control investments (amortized cost: $16,416 and $45,821 as of September 30, 2019 and December 31, 2018, respectively)
32,932

 
55,727

Total portfolio investments (amortized cost: $1,056,274 and $1,121,688 as of September 30, 2019 and December 31, 2018, respectively)
1,053,482

 
1,106,568

 
 
 
 
Cash and cash equivalents
21,070

 
21,757

Interest receivable
9,590

 
9,292

Receivable for securities sold
—

 
918

Prepaid and other assets
4,414

 
4,038

Deferred financing costs (net of accumulated amortization of $2,653 and $1,642 as of September 30, 2019 and December 31, 2018, respectively)
3,854

 
4,857

Total assets
$
1,092,410

 
$
1,147,430

 
 
 
 
LIABILITIES
 

 
 

Accounts payable and other liabilities
$
2,292

 
$
2,456

Stockholder distributions payable
4,521

 
4,676

Base management and incentive fees payable
6,706

 
5,854

Due to affiliates
166

 
57

Directors’ fees payable
27

 
21

Payable for securities purchased
596

 
—

Credit facilities payable
458,000

 
509,000

Total liabilities
472,308

 
522,064

 
 
 
 
Commitments and Contingencies (Note 13)
 
 
 
 
 
 
 
NET ASSETS
 

 
 

Common stock, $.001 par value; 150,000,000 shares authorized, 78,498,726 and 78,584,824 issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
78

 
79

Additional paid-in capital
678,044

 
678,627

Total accumulated earnings (loss)
(58,020
)
 
(53,340
)
Total net assets
620,102

 
625,366

 
 
 
 
Total liabilities and net assets
$
1,092,410

 
$
1,147,430

 
 
 
 
Net asset value per share
$
7.90

 
$
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
 
Nine Months Ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
INVESTMENT INCOME:
 

 
 

 
 

 
 

From non-control/non-affiliate investments:
 
 
 
 
 
 
 
Interest income
$
22,243

 
$
25,057

 
$
69,040

 
$
67,809

Fee income
325

 
748

 
750

 
1,669

Dividend income
(72
)
 
268

 
1,114

 
797

From affiliate investments:
 
 
 
 
 
 
 
Interest income
2,514

 
2,359

 
7,318

 
6,312

Fee income
28

 
16

 
90

 
118

Dividend income
1,001

 
843

 
2,035

 
1,870

From control investments:
 
 
 
 
 
 
 
Interest income
161

 
151

 
428

 
463

Fee income
18

 
17

 
53

 
52

Dividend income
1,598

 
709

 
4,797

 
2,057

Total investment income
27,816

 
30,168

 
85,625

 
81,147

EXPENSES:
 

 
 

 
 

 
 

Interest expense
6,214

 
6,626

 
19,942

 
17,861

Base management and incentive fees
6,707

 
8,439

 
20,796

 
19,870

Internal administrative services expenses
735

 
623

 
2,233

 
2,044

Offering costs
94

 
101

 
285

 
308

Professional fees
114

 
124

 
814

 
539

Insurance
114

 
47

 
210

 
143

Other general and administrative
595

 
511

 
1,651

 
1,447

Expenses before fee and expense waivers
14,573

 
16,471

 
45,931

 
42,212

Waiver of incentive fees
—

 
(2,535
)
 
—

 
(2,535
)
Waiver of internal administrative services expenses
(735
)
 
(623
)
 
(2,233
)
 
(2,044
)
Total expenses, net of fee and expense waivers
13,838

 
13,313

 
43,698

 
37,633

Net investment income before taxes
13,978

 
16,855

 
41,927

 
43,514

Income tax expense, including excise tax
82

 
(226
)
 
241

 
(29
)
NET INVESTMENT INCOME
13,896

 
17,081

 
41,686

 
43,543

NET REALIZED GAIN (LOSS) ON INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
(11,026
)
 
(8,149
)
 
(12,098
)
 
(16,842
)
Affiliate investments
—

 
(9
)
 
(5,266
)
 
903

Control investments
(35
)
 
—

 
(633
)
 
—

Total net realized gain (loss) on investments
(11,061
)
 
(8,158
)
 
(17,997
)
 
(15,939
)
NET REALIZED INCOME
2,835

 
8,923

 
23,689

 
27,604

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
2,579

 
7,391

 
755

 
14,707

Affiliate investments
237

 
3,378

 
4,674

 
4,258

Control investments
112

 
4,088

 
7,241

 
4,990

Total net change in unrealized appreciation (depreciation) on investments
2,928

 
14,857

 
12,670

 
23,955

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$
5,763

 
$
23,780

 
$
36,359

 
$
51,559

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

 
$
0.22

 
$
0.53

 
$
0.55

NET REALIZED INCOME PER SHARE
$
0.04

 
$
0.12

 
$
0.30

 
$
0.35

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)
$
0.07

 
$
0.30

 
$
0.46

 
$
0.65

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED
78,794,751

 
78,982,226

 
78,807,179

 
79,383,151


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
 
Nine Months Ended
 
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Change in Net Assets from Operations:
 
 
 
 
 
 
 
 
Net investment income
 
$
13,896

 
$
17,081

 
$
41,686

 
$
43,543

Net realized gain (loss) on investments
 
(11,061
)
 
(8,158
)
 
(17,997
)
 
(15,939
)
Net change in unrealized appreciation (depreciation) on investments
 
2,928

 
14,857

 
12,670

 
23,955

Net increase in net assets resulting from operations
 
5,763

 
23,780

 
36,359

 
51,559

 
 
 
 
 
 
 
 
 
Change in Net Assets from Stockholders’ Distributions:
 
 
 
 
 
 
 
 
Net decrease in net assets resulting from stockholders’ distributions
 
(13,900
)
 
(13,938
)
 
(41,260
)
 
(41,596
)
 
 
 
 
 
 
 
 
 
Change in Net Assets from Capital Share Transactions:
 
 
 
 
 
 
 
 
Reinvestment of stockholder distributions
 
6,247

 
6,731

 
18,982

 
20,550

Repurchase of common stock
 
(6,382
)
 
(8,007
)
 
(19,345
)
 
(27,567
)
Net decrease in net assets resulting from capital share transactions
 
(135
)
 
(1,276
)
 
(363
)
 
(7,017
)
 
 
 
 
 
 
 
 
 
Total Increase (Decrease) in Net Assets
 
(8,272
)
 
8,566

 
(5,264
)
 
2,946

Net Assets at beginning of the period
 
628,374

 
642,169

 
625,366

 
647,789

Net Assets at end of the period
 
$
620,102

 
$
650,735

 
$
620,102

 
$
650,735

 
 
 
 
 
 
 
 
 
NAV per share at end of the period
 
$
7.90

 
$
8.28

 
$
7.90

 
$
8.28

Distributions declared per share
 
$
0.17

 
$
0.17

 
$
0.52

 
$
0.52

 
 
 
 
 
 
 
 
 
Common shares outstanding, beginning of the period
 
78,530,056

 
78,788,407

 
78,584,824

 
79,511,731

Issuance of common shares pursuant to distribution reinvestment plan
 
773,449

 
810,611

 
2,342,092

 
2,477,245

Repurchase of common shares
 
(804,779
)
 
(982,248
)
 
(2,428,190
)
 
(3,372,206
)
Common shares outstanding, end of the period
 
78,498,726

 
78,616,770

 
78,498,726

 
78,616,770


See notes to the condensed consolidated financial statements.


3


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

 
 

Net increase in net assets resulting from operations
$
36,359

 
$
51,559

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
280,055

 
386,110

Investments in portfolio companies
(222,627
)
 
(476,524
)
Net change in unrealized (appreciation) on portfolio investments
(12,670
)
 
(23,955
)
Net realized loss on sale of portfolio investments
17,997

 
15,939

Amortization of deferred financing costs
1,011

 
1,000

Amortization of deferred offering costs
285

 
308

Accretion of unearned income
(6,152
)
 
(7,603
)
Net payment-in-kind interest accrual
(3,351
)
 
(977
)
Changes in other assets and liabilities:
 
 
 

Interest receivable
(298
)
 
(566
)
Prepaid and other assets
501

 
1,949

Base management and incentive fees payable
852

 
222

Due to affiliates
109

 
(21
)
Directors’ fees payable
6

 
10

Accounts payable and other liabilities
299

 
(348
)
Net cash generated from (used in) operating activities
92,376

 
(52,897
)
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

Redemption of common stock
(19,345
)
 
(27,567
)
Payment of offering costs
(285
)
 
(308
)
Payment of stockholder distributions
(22,433
)
 
(21,291
)
Repayments on credit facilities payable
(196,500
)
 
(279,000
)
Proceeds from credit facilities payable
145,500

 
359,000

Net cash generated from (used in) financing activities
(93,063
)
 
30,834

 
 
 
 
Net decrease in cash and cash equivalents
(687
)
 
(22,063
)
 
 
 
 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
21,757

 
45,791

 
 
 
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
$
21,070

 
$
23,728

 
See notes to the condensed consolidated financial statements.


4

HMS Income Fund, Inc.
Consolidated Schedule of Investments
As of September 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 9.10%, Secured Debt (Maturity - December 31, 2023) (8)
1 month LIBOR
7,396

7,374

7,396

 
 
Member Units (2,896 units) (16)
—
—

6,435

22,644

 
 
 
 
 
13,809

30,040

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

1,735

2,020

 
 
 
 
 
 
 
Subtotal Control Investments (6) (3% of total investments at fair value)
 
 
$
16,416

$
32,932

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
$
231

$
231

$
231

 
 
Member Units (46 units) (16)
—
—

300

1,260

 
 
 
 
 
531

1,491

Analytical Systems Keco, LLC (10) (13)
Liquid and Gas Analyzers
LIBOR Plus 10.00% (Floor 2.00%), Current Coupon 12.50%, Secured Debt (Maturity - August 16, 2024) (8)
1 month LIBOR
1,400

1,266

1,273

 
 
Preferred Member Units (800 units)
—
—

800

800

 
 
Warrants (105 Equivalent Shares; Expiration - August 16, 2029; Strike Price - $0.01 per Share)
—
—

79

79

 
 
 
 
 
2,145

2,152

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
2,294

2,262

2,262

 
 
Preferred Member Units (737 units) (16)
—
—

1,070

1,070

 
 
 
 
 
3,332

3,332

Centre Technologies Holdings, LLC (10) (13)
Provider of IT Hardware Services and Software Solutions
LIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.13%, Secured Debt (Maturity - January 4, 2024) (8)
1 month LIBOR
3,060

3,001

3,006

 
 
Preferred Member Units (3,174 units)
—
—

1,460

1,460

 
 
 
 
 
4,461

4,466

Chamberlin Holding, LLC (10) (13)
Roofing and Waterproofing Specialty Subcontractor
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.25%, Secured Debt (Maturity - February 23, 2023) (8)
1 month LIBOR
4,719

4,618

4,719

 
 
Member Units (1,087 units) (16)
—
—

2,860

5,897

 
 
Member Units (Chamberlin Langfield Real Estate, LLC) (261,786 units) (16)
—
—

262

262

 
 
 
 
 
7,740

10,878

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

1,368

 
 
 
 
 
600

1,868

Clad-Rex Steel, LLC (10) (13)
Specialty Manufacturer of Vinyl-Clad Metal
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - December 20, 2021) (8)
1 month LIBOR
2,820

2,790

2,820

 
 
Member Units (179 units) (16)
—
—

1,820

2,504

 
 
10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)
None
286

283

283

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

53

88

 
 
 
 
 
4,946

5,695

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

1,584

2,273

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
$
4,987

$
4,909

$
4,842

 
 
Preferred Member Units (863 units) (16)
—
—

2,375

1,917

 
 
 
 
 
7,284

6,759

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
4,208

4,118

4,208

 
 
Preferred Stock (2,100 shares)
—
—

2,100

4,471

 
 
 
 
 
6,218

8,679

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

10,555

10,291

Gamber-Johnson Holdings, LLC (10) (13)
Manufacturer of Ruggedized Computer Mounting Systems
LIBOR Plus 7.00% (Floor 2.00%), Current Coupon 9.10%, Secured Debt (Maturity - June 24, 2021) (8)
1 month LIBOR
4,755

4,700

4,755

 
 
Member Units (2,155 units) (16)
—
—

3,711

11,627

 
 
 
 
 
8,411

16,382

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

3,137

2,077

 
 
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, 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

—

 
 
 
 
 
4,284

2,193

Gulf Publishing Holdings, LLC (10) (13)
Energy Industry Focused Media and Publishing
12.50% Secured Debt (Maturity - April 29, 2021)
None
3,133

3,109

3,109

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.60%, Secured Debt (Maturity - September 30, 2020) (8)
1 month LIBOR
80

80

80

 
 
Member Units (920 units)
—
—

920

963

 
 
 
 
 
4,109

4,152

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

2,474

2,474

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

3,314

3,350

 
 
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.10%, Secured Debt (Maturity - December 2, 2021) (8)
1 month LIBOR
150

147

147

 
 
Preferred Member Units (56 units) (16)
—
—

713

1,975

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

38

105

 
 
 
 
 
4,212

5,577

KMC Investor, LLC (10) (13)
Precision Metal Parts Manufacturing
11.50% Secured Debt (Maturity - October 31, 2023)
None
6,800

6,620

6,625

 
 
9.00% Secured Debt (Maturity October 31, 2048)
None
996

979

979

 
 
Member Units (145 units)
—
—

248

248

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

3,060

3,060

 
 
 
 
 
10,907

10,912

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

5,633

5,665

 
 
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - July 28, 2022) (8)
3 month LIBOR
691

691

691

 
 
Member Units (170,000 units)
—
—

3,675

1,764

 
 
 
 
 
9,999

8,120

 
 
 
 
 
 
 
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
$
2,185

$
2,161

$
2,185

 
 
Preferred Member Units (16,500 units)
—
—

1,100

1,192

 
 
Common Units (1,000 units)
—
—

1,500

5

 
 
 
 
 
4,761

3,382

Mystic Logistics Holdings, LLC (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
12.00% Secured Debt (Maturity - August 15, 2019) (19)
None
1,600

1,598

1,598

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

680

1,202

 
 
 
 
 
2,278

2,800

NexRev, LLC (10) (13)
Provider of Energy Efficiency Products & Services
11.00% Secured Debt (Maturity - February 28, 2023)
None
4,251

4,180

4,187

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

1,720

1,719

 
 
 
 
 
5,900

5,906

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

5,092

5,092

 
 
Preferred Member Units (102 units)
—
—

2,550

2,550

 
 
 
 
 
7,642

7,642

SI East, LLC (10) (13)
Rigid Industrial Packaging Manufacturing
10.25% Secured Debt (Maturity - August 31, 2023)
None
10,988

10,842

10,988

 
 
Preferred Member Units (52 units) (16)
—
—

2,000

2,446

 
 
 
 
 
12,842

13,434

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

3,997

4,066

 
 
12.00% Secured Debt (Maturity - August 31, 2020)
None
40

38

38

 
 
Preferred Member Units (110 units)
—
—

2,034

2,034

 
 
 
 
 
6,069

6,138

Trantech Radiator Topco, LLC (10) (13)
Transformer Cooling Products and Services
12.00% Secured Debt (Maturity - May 31, 2024)
None
2,400

2,320

2,331

 
 
Common Stock (154 shares) (16)
—
—

1,164

1,164

 
 
 
 
 
3,484

3,495

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (14% of total investments at fair value)
 
 
$
139,238

$
150,491

 
 
 
 
 
 
 
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) (18)
3 month LIBOR
$
14,396

$
14,025

$
10,797

 
 
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.29%, Secured Debt (Maturity - April 15, 2020)
3 month LIBOR
1,855

1,692

1,855

 
 
 
 
 
15,717

12,652

Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.78%, Secured Debt (Maturity - July 3, 2023)
3 month LIBOR
6,478

6,375

6,478

 
 
LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.61%, Secured Debt (Maturity - July 3, 2023)
3 month LIBOR
205

191

205

 
 
PRIME Plus 5.00% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity - July 3, 2023)
PRIME
5,000

4,925

5,000

 
 
 
 
 
11,491

11,683

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 8.29%, Secured Debt (Maturity - July 26, 2023)
1 month LIBOR
15,868

15,839

15,868

Aethon United BR, LP (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.79%, Secured Debt (Maturity - September 8, 2023) (14)
1 month LIBOR
7,000

6,913

7,000

Allen Media, LLC (8)
Operator of Cable Television Networks
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - August 30, 2023)
3 month LIBOR
$
16,490

$
16,090

$
15,954

American Nuts, LLC (8) (11)
Roaster, Mixer and Packager of Bulk Nuts and Seeds
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.82%, Secured Debt (Maturity - April 10, 2023)
3 month LIBOR
12,269

12,058

12,269

American Teleconferencing Services, Ltd. (8)
Provider of Audio Conferencing and Video Collaboration Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.71%, Secured Debt (Maturity - December 8, 2021)
2 month LIBOR
14,163

13,673

8,937

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

6,231

4,936

Arcus Hunting, LLC (8) (11)
Manufacturer of Bowhunting and Archery Products and Accessories
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.32%, Secured Debt (Maturity - January 13, 2020)
1 month LIBOR
8,223

8,220

8,225

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

1,000

2,498

ASC Ortho Management Company, LLC (11)
Provider of Orthopedic Services
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.82%, Secured Debt (Maturity - August 31, 2023) (8)
3 month LIBOR
4,572

4,489

4,552

 
 
13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)
None
1,734

1,695

1,734

 
 
 
 
 
6,184

6,286

ATI Investment Sub, Inc. (8)
Manufacturer of Solar Tracking Systems
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity - June 22, 2021)
1 month LIBOR
3,135

3,086

3,000

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
13,735

13,596

12,979

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

3,374

3,128

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

158

97

 
 
Options (.99 equivalent units)
—
—

202

167

 
 
 
 
 
3,734

3,392

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 13.10%, Secured Debt (Maturity - April 8, 2021) (8)
1 month LIBOR
1,200

1,196

1,173

 
 
Preferred Stock (28,280 units)
—
—

28

32

 
 
Member Units (200,000 units)
—
—

200

30

 
 
 
 
 
1,424

1,235

Berry Aviation, Inc. (11)
Airline Charter Service Operator
10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)
None
4,531

4,475

4,531

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

1,318

 
 
 
 
 
6,023

5,849

BigName Commerce, LLC (8) (11)
Provider of Envelopes and Complimentary Stationery Products
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.57%, Secured Debt (Maturity - May 11, 2022)
1 month LIBOR
2,409

2,392

2,376

Binswanger Enterprises, LLC (11)
Glass Repair and Installation Service Provider
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.10%, Secured Debt (Maturity - March 9, 2022) (8)
3 month LIBOR
13,731

13,549

13,731

 
 
Member Units (1,050,000 units)
—
—

1,050

950

 
 
 
 
 
14,599

14,681

Bluestem Brands, Inc. (8)
Multi-Channel Retailer of General Merchandise
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.54%, Secured Debt (Maturity - November 6, 2020)
3 month LIBOR
11,592

11,526

8,791

Boccella Precast Products, LLC (10) (13)
Manufacturer of Precast Hollow Core Concrete
LIBOR Plus 12.00% (Floor 1.00%), Current Coupon 14.32%, Secured Debt (Maturity - June 30, 2022) (8)
3 month LIBOR
3,311

3,259

3,311

 
 
Member Units (540,000 units) (16)
—
—

564

1,475

 
 
 
 
 
3,823

4,786

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

$
3,815

$
3,104

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

9,037

9,126

 
 
 
 
 
12,852

12,230

Buca C, LLC (10) (13)
Casual Restaurant Group
LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.33%, Secured Debt (Maturity - June 30, 2020) (8)
1 month LIBOR
12,670

12,624

12,517

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

3,040

3,086

 
 
 
 
 
15,664

15,603

Cadence Aerospace, LLC (8) (11)
Aerospace Manufacturing
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.54%, Secured Debt (Maturity - November 14, 2023)
3 month LIBOR
19,322

19,177

19,322

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.00% Secured Debt (Maturity - December 7, 2023)
None
2,290

2,297

2,290

 
 
Member Units (16,742 units) (16)
—
—

188

1,235

 
 
 
 
 
2,485

3,525

Cenveo Corporation
Provider of Digital Marketing Agency Services
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.56%, Secured Debt (Maturity - June 7, 2023) (8)
1 month LIBOR
4,449

4,161

4,449

 
 
Common Stock (138,889 shares)
—
—

4,163

2,153

 
 
 
 
 
8,324

6,602

Chisholm Energy Holdings, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 8.41%, Secured Debt (Maturity - May 15, 2026) (14)
3 month LIBOR
3,571

3,475

3,475

Clarius BIGS, LLC (11) (18)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,105

1,847

27

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
764

671

10

 
 
 
 
 
2,518

37

Clickbooth.com, LLC (8) (11)
Provider of Digital Advertising Performance Marketing Solutions
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.82%, Secured Debt (Maturity - December 5, 2022)
3 month LIBOR
2,682

2,641

2,682

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 8.12%, Secured Debt (Maturity - June 30, 2023) (8)
1 month LIBOR
15,941

15,837

15,941

 
 
Member units (42,207 units)
—
—

4,409

7,209

 
 
 
 
 
20,246

23,150

CTVSH, PLLC (8) (11) (13)
Emergency Care and Specialty Service Animal Hospital
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.13%, Secured Debt (Maturity - August 3, 2022)
1 month LIBOR
2,562

2,529

2,562

Datacom, LLC (10) (13)
Technology and Telecommunications Provider
10.50% PIK Secured Debt (Maturity - May 31, 2021) (18)
None
1,384

1,346

1,113

 
 
8.00% Secured Debt (Maturity - May 31, 2021) (18)
None
200

200

173

 
 
Class A Preferred Member Units (1,530 units)
—
—

144

—

 
 
Class B Preferred Member Units (717 units)
—
—

670

—

 
 
 
 
 
2,360

1,286

Digital River, Inc. (8)
Provider of Outsourced e-Commerce Solutions and Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.12%, Secured Debt (Maturity - February 12, 2021)
3 month LIBOR
9,759

9,716

9,734

DTE Enterprises, LLC (11)
Industrial Powertrain Repair and Services
LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.69%, Secured Debt (Maturity - April 13, 2023) (8)
3 month LIBOR
11,492

11,313

11,492

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

817

837

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

776

1,490

 
 
 
 
 
12,906

13,819

Dynamic Communities, LLC (8) (11)
Developer of Business Events and Online Community Groups
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.10%, Secured Debt (Maturity - July 17, 2023)
3 month LIBOR
5,460

5,371

5,450

Epic Y-Grade Services, LP (8)
NGL Transportation & Storage
LIBOR Plus 5.50%, Current Coupon 7.54%, Secured Debt (Maturity - June 13, 2024)
3 month LIBOR
$
15,275

$
15,024

$
14,836

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 10.45%, Secured Debt (Maturity - April 28, 2022) (14)
3 month LIBOR
10,901

10,647

3,331

Felix Investments Holdings II, LLC (8) (11)
Oil and Gas Exploration and Production
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.68%, Secured Debt (Maturity - August 9, 2022)
3 month LIBOR
5,000

4,937

5,000

Flavors Holdings, Inc. (8)
Global Provider of Flavoring and Sweetening Products and Solutions
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.85%, Secured Debt (Maturity - April 3, 2020)
3 month LIBOR
10,719

10,609

9,995

GI KBS Merger Sub LLC (8)
Outsourced Janitorial Services to Retail/Grocery Customers
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.77%, Secured Debt (Maturity - April 29, 2022) (14)
3 month LIBOR
14,700

14,647

14,296

Good Source Solutions, Inc. (8) (11)
Specialized Food Distributor
LIBOR Plus 8.32% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - June 29, 2023)
3 month LIBOR
5,000

4,959

5,000

GoWireless Holdings, Inc. (8)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.54%, Secured Debt (Maturity - December 22, 2024)
3 month LIBOR
15,117

15,005

14,703

HDC/HW Intermediate Holdings, LLC (8) (11)
Managed Services and Hosting Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.61%, Secured Debt (Maturity - December 21, 2023)
3 month LIBOR
1,895

1,861

1,892

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 9.36%, Secured Debt (Maturity - January 28, 2021)
3 month LIBOR
22,083

21,429

20,758

Hunter Defense Technologies, Inc. (8) (11)
Provider of Military and Commercial Shelters and Systems
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - March 29, 2023)
3 month LIBOR
16,157

15,878

16,157

HW Temps LLC (10) (13)
Temporary Staffing Solutions
8.00% Secured Debt (Maturity - March 29, 2023)
None
2,650

2,596

2,327

Hydrofarm Holdings, LLC (8) (11)
Wholesaler of Horticultural Products
LIBOR Plus 10.00%, Current Coupon 3.55% / 8.50% PIK, Current Coupon Plus PIK 12.05%, Secured Debt (Maturity - May 12, 2022)
1 month LIBOR
7,474

7,385

6,237

Hyperion Materials & Technologies, Inc. (8) (9)
Manufacturer of Cutting and Machine Tools & Specialty Polishing Compounds
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.54%, Secured Debt (Maturity - August 28, 2026)
3 month LIBOR
7,500

7,351

7,388

iEnergizer Limited (8) (9) (11)
Provider of Business Outsourcing Solutions
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.06%, Secured Debt (Maturity - April 17, 2024)
1 month LIBOR
13,725

13,598

13,598

Implus Footcare, LLC (8) (11)
Provider of Footwear and Related Accessories
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - April 30, 2024)
3 month LIBOR
17,021

16,670

16,797

Independent Pet Partners Intermediate Holdings, LLC (8) (11)
Omnichannel Retailer of Specialty Pet Products
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.48%, Secured Debt (Maturity - November 19, 2023)
3 month LIBOR
14,412

14,146

14,412

 
 
Member Units (1,191,667 units)
—
—

1,192

964

 
 
 
 
 
15,338

15,376

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
11,803

11,779

11,803

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

202

218

 
 
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

1,352

 
 
 
 
 
14,205

13,497

Interface Security Systems, L.L.C. (8) (11)
Commercial Security and Alarm Services
LIBOR Plus 7.00% (Floor 1.75%), Current Coupon 9.04%, Secured Debt (Maturity - August 7, 2023)
1 month LIBOR
7,500

7,355

7,355

Intermedia Holdings, Inc. (8)
Unified Communications as a Service
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.04%, Secured Debt (Maturity - July 19, 2025)
1 month LIBOR
3,525

3,495

3,530

Invincible Boat Company, LLC (8) (11)
Manufacturer of Sport Fishing Boats
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.61%, Secured Debt (Maturity - August 28, 2025)
3 month LIBOR
$
9,500

$
9,395

$
9,406

Isagenix International, LLC (8)
Direct Marketer of Health and Wellness Products
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.85%, Secured Debt (Maturity - June 14, 2025)
3 month LIBOR
6,025

5,973

4,654

Jackmont Hospitality, Inc. (8) (11)
Franchisee of Casual Dining Restaurants
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.79%, Secured Debt (Maturity - May 26, 2021)
1 month LIBOR
8,171

8,162

8,171

Joerns Healthcare, LLC
Manufacturer and Distributor of Health Care Equipment & Supplies
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.79%, Secured Debt (Maturity - August 21, 2024) (8)
3 month LIBOR
3,335

3,270

3,270

 
 
Common Stock (472,579 shares)
—
—

3,678

3,678

 
 
 
 
 
6,948

6,948

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
7,481

7,338

7,338

Knight Energy Services LLC (11)
Oil and Gas Equipment and Services
8.50% Secured Debt (Maturity - February 9, 2024)
None
810

810

810

 
 
Class A-2 Shares (25,692 units)
—
—

1,843

1,843

 
 
 
 
 
2,653

2,653

Kore Wireless Group, Inc. (12)
Mission Critical Software Platform
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.60%, Secured Debt (Maturity - December 20, 2024) (8)
3 month LIBOR
6,075

6,049

6,037

Larchmont Resources, LLC
Oil & Gas Exploration & Production
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - August 7, 2020) (8)
3 month LIBOR
3,614

3,614

3,361

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

601

1,201

 
 
 
 
 
4,215

4,562

Laredo Energy VI, LP (8) (11)
Oil and Gas Exploration and Production
LIBOR Plus 10.50% (Floor 2.00%) PIK, Current Coupon 12.76%, Secured Debt (Maturity - November 19, 2021)
3 month LIBOR
10,627

10,460

10,627

Lightbox Holdings, L.P. (8)
Provider of Commercial Real Estate Software
LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 7.05%, Secured Debt (Maturity - May 9, 2026)
1 month LIBOR
4,987

4,915

4,938

LL Management, Inc. (8) (11)
Medical Transportation Service Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.84%, Secured Debt (Maturity - September 25, 2023)
3 month LIBOR
13,769

13,632

13,625

Logix Acquisition Company, LLC (8) (11)
Competitive Local Exchange Carrier
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.79%, Secured Debt (Maturity - December 22, 2024) (23)
1 month LIBOR
12,790

12,713

12,790

LSF9 Atlantis Holdings, LLC (8)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.04%, Secured Debt (Maturity - May 1, 2023)
1 month LIBOR
13,213

13,141

12,340

Lulu’s Fashion Lounge, LLC (8) (11)
Fast Fashion E-Commerce Retailer
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.04%, Secured Debt (Maturity - August 28, 2022)
1 month LIBOR
5,795

5,648

5,680

Lynx FBO Operating LLC (11)
Fixed Based Operator in the General Aviation Industry
LIBOR Plus 5.75%, Current Coupon 7.86%, Secured Debt (Maturity - September 30, 2024) (8)
3 month LIBOR
13,750

13,438

13,475

 
 
Member Units (3,704 units)
—
—

500

500

 
 
 
 
 
13,938

13,975

Mac Lean-Fogg Company (11)
Manufacturer and Supplier for Auto and Power Markets
LIBOR Plus 5.00%, Current Coupon 7.04%, Secured Debt (Maturity - December 22, 2025) (8)
1 month LIBOR
7,153

7,100

7,100

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

764

764

 
 
 
 
 
7,864

7,864

Mariner CLO 7, Ltd. (9) (15)
Structured Finance
Subordinated Structured Notes (estimated yield of 8.3% due April 30, 2032)
—
25,935

23,074

19,051

Meisler Operating, LLC (10) (13)
Provider of Short Term Trailer and Container Rental
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.58%, Secured Debt (Maturity - June 7, 2022) (8)
3 month LIBOR
6,810

6,687

6,810

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

1,214

2,095

 
 
 
 
 
7,901

8,905

Mills Fleet Farm Group, LLC (8) (11)
Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.29%, Secured Debt (Maturity - October 24, 2024)
3 month LIBOR
$
14,888

$
14,550

$
14,643

New Media Holdings II LLC (8) (9)
Local Newspaper Operator
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.29%, Secured Debt (Maturity - July 14, 2022)
1 month LIBOR
9,645

9,575

9,673

NNE Partners, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 10.14%, Secured Debt (Maturity - March 2, 2022)
3 month LIBOR
20,417

20,308

20,417

North American Lifting Holdings, Inc. (8)
Crane Service Provider
LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.60%, Secured Debt (Maturity - November 27, 2020)
3 month LIBOR
6,195

5,918

5,679

Novetta Solutions, LLC (8)
Provider of Advanced Analytics Solutions for Defense Agencies
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.05%, Secured Debt (Maturity - October 17, 2022)
1 month LIBOR
14,861

14,591

14,587

NTM Acquisition Corp. (8)
Provider of B2B Travel Information Content
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.29%, Secured Debt (Maturity - June 7, 2022)
1 month LIBOR
3,922

3,900

3,863

Pasha Group (8)
Diversified Logistics and Transportation Provided
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.59%, Secured Debt (Maturity - January 26, 2023)
3 month LIBOR
9,473

9,247

9,544

PaySimple, Inc. (8) (11)
Leading Technology Services Commerce Platform
LIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.70%, Secured Debt (Maturity - April 30, 2021)
1 month LIBOR
3,150

3,088

3,103

Permian Holdco 2, Inc.
Storage Tank Manufacturer
14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)
None
1,099

1,099

812

 
 
18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)
None
759

759

759

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

1,997

825

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

—

—

 
 
 
 
 
3,855

2,396

PricewaterhouseCoopers Public Sector LLP (8)
Provider of Consulting Services to Governments
LIBOR Plus 7.50%, Current Coupon 9.54%, Secured Debt (Maturity - May 1, 2026) (14)
1 month LIBOR
14,100

14,056

13,924

Rise Broadband (8) (11)
Fixed Wireless Broadband Provider
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.03%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
14,775

14,660

14,775

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

31

7

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

284

—

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

—

—

 
 
 
 
 
315

7

Salient Partners, LP (8) (11)
Provider of Asset Management Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.04%, Secured Debt (Maturity - June 9, 2021)
1 month LIBOR
6,675

6,717

6,675

Slick Software Holdings LLC (10) (13)
Text Messaging Marketing Platform
14.00% Secured Debt (Maturity - September 13, 2023)
—
1,480

1,395

1,395

 
 
Member units (17,500 units)
—
—

175

270

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

45

73

 
 
 
 
 
1,615

1,738

Smart Modular Technologies, Inc. (8) (9) (11)
Provider of Specialty Memory Solutions
LIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.43%, Secured Debt (Maturity - August 9, 2022)
3 month LIBOR
19,000

18,839

19,237

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 10.54%, Secured Debt (Maturity - April 12, 2024) (14)
1 month LIBOR
7,750

7,634

7,798

TGP Holdings III LLC (8)
Outdoor Cooking & Accessories
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.54%, Secured Debt (Maturity - September 25, 2025) (14)
1 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 8.81%, Secured Debt (Maturity - October 31, 2022) (25)
1 month LIBOR
$
17,069

$
16,909

$
16,920

TOMS Shoes, LLC (8)
Global Designer, Distributor, and Retailer of Casual Footwear
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.76%, Secured Debt (Maturity - October 30, 2020)
3 month LIBOR
4,775

4,673

3,056

U.S. Telepacific Corp. (8)
Provider of Communications and Managed Services
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.10%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
12,500

12,281

12,196

VIP Cinema Holdings, Inc. (8)
Supplier of Luxury Seating to the Cinema Industry
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 8.04%, Secured Debt (Maturity - March 1, 2023)
1 month LIBOR
8,750

8,721

6,891

Vistar Media, Inc. (11)
Operator of Digital Out-of-Home Advertising Platform
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.09%, Secured Debt (Maturity - April 3, 2023) (8)
3 month LIBOR
5,690

5,478

5,690

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

—

1,220

 
 
Preferred Stock (70,207 shares)
—
—

767

1,210

 
 
 
 
 
6,245

8,120

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

8,515

8,369

 
 
8.00% Unsecured 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

 
 
 
 
 
15,794

14,737

Wireless Vision Holdings, LLC (8) (11)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 9.91% (Floor 1.00%), Current Coupon 11.69% / 1.00% PIK, Current Coupon Plus PIK 12.69%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
7,272

7,139

7,272

 
 
LIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.96% / 1.00% PIK, Current Coupon Plus PIK 11.96%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
6,321

6,121

6,321

 
 
 
 
 
13,260

13,593

YS Garments (8)
Designer and Provider of Branded Activewear
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.95%, Secured Debt (Maturity - August 9, 2024)
1 month LIBOR
7,313

7,250

7,276

Subtotal Non-Control/Non-Affiliate Investments (5) (83% of total portfolio investments at fair value)
 
 
$
900,620

$
870,059

Total Portfolio Investments
 
 
 
 
$
1,056,274

$
1,053,482

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

$
9,631

$
9,631

US Bank Money Market Account (21)
—
—
—
—

4,856

4,856

Total Short Term Investments
 
 
 
 
$
14,487

$
14,487


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

 
$
260

 
$
(29
)
 
$
—

 
$
231

 
$
—

$
11

$
—

$
—

Member units
995

 
1

 
—

 
264

 
1,260

 
—

—

—

(10
)
Warrants
237

 
195

 
(260
)
 
(172
)
 
—

 
195

—

—

—

Analytical Systems Keco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
—

 
1,401

 
(134
)
 
6

 
1,273

 
—

24

—

—

Preferred member units
—

 
800

 
—

 
—

 
800

 
—

—

—

—

Warrants
—

 
79

 
—

 
—

 
79

 
—

—

—

—

Brewer Crane Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
2,347

 
8

 
(93
)
 
—

 
2,262

 
—

226

—

—

Preferred member units
1,070

 
—

 
—

 
—

 
1,070

 
—

—

—

23

Centre Technologies Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
—

 
3,067

 
(67
)
 
6

 
3,006

 
—

273

22

—

Preferred member units
—

 
1,460

 
—

 
—

 
1,460

 
—

—

—

<