UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
 FORM 10-Q
(Mark One)
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2020
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 79,011,896 shares of common stock outstanding as of May 13, 2020.




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)
 
March 31, 2020
 
December 31, 2019
 
(Unaudited)
 
 
ASSETS
 
 
 
Portfolio investments at fair value:
 
 
 
Non-Control/Non-Affiliate investments (amortized cost: $835,553 and $878,632 as of March 31, 2020 and December 31, 2019, respectively)
$
705,726

 
$
838,643

Affiliate investments (amortized cost: $147,574 and $144,006 as of March 31, 2020 and December 31, 2019, respectively)
154,472

 
154,158

Control investments (amortized cost: $18,285 and $17,417 as of March 31, 2020 and December 31, 2019, respectively)
34,665

 
34,796

Total portfolio investments (amortized cost: $1,001,412 and $1,040,055 as of March 31, 2020 and December 31, 2019, respectively)
894,863

 
1,027,597

 
 
 
 
Cash and cash equivalents
16,252

 
21,846

Interest receivable
8,650

 
8,749

Prepaid and other assets
3,948

 
4,403

Deferred financing costs (net of accumulated amortization of $3,339 and $2,990 as of March 31, 2020 and December 31, 2019, respectively)
3,627

 
3,516

Total assets
$
927,340

 
$
1,066,111

 
 
 
 
LIABILITIES
 

 
 

Accounts payable and other liabilities
$
3,139

 
$
1,684

Stockholder distributions payable
4,669

 
4,669

Base management and incentive fees payable
4,994

 
5,388

Due to affiliates
48

 
44

Directors’ fees payable
26

 
21

Payable for securities purchased
1,900

 
—

Credit facilities payable
403,000

 
445,000

Total liabilities
417,776

 
456,806

 
 
 
 
Commitments and Contingencies (Note 12)
 
 
 
 
 
 
 
NET ASSETS
 

 
 

Common stock, $.001 par value; 150,000,000 shares authorized, 78,423,129 and 78,463,377 issued and outstanding as of March 31, 2020 and December 31, 2019, respectively
78

 
78

Additional paid-in capital
675,358

 
675,554

Accumulated loss
(165,872
)
 
(66,327
)
Total net assets
509,564

 
609,305

 
 
 
 
Total liabilities and net assets
$
927,340

 
$
1,066,111

 
 
 
 
Net asset value per share
$
6.50

 
$
7.77


See notes to the condensed consolidated financial statements.

1


HMS Income Fund, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share amounts)
(Unaudited) 
 
 
Three Months Ended
 
 
March 31, 2020
 
March 31, 2019
INVESTMENT INCOME:
 
 

 
 

From non-control/non-affiliate investments:
 
 
 
 
Interest income
 
$
19,048

 
$
23,499

Fee income
 
540

 
307

Dividend income
 
281

 
327

From affiliate investments:
 
 
 
 
Interest income
 
2,557

 
2,602

Fee income
 
15

 
37

Dividend income
 
968

 
396

From control investments:
 
 
 
 
Interest income
 
180

 
123

Fee income
 
20

 
17

Dividend income
 
391

 
1,853

Total investment income
 
24,000

 
29,161

EXPENSES:
 
 

 
 

Interest expense
 
5,229

 
7,107

Base management and incentive fees
 
4,994

 
7,125

Internal administrative services expenses
 
784

 
758

Offering costs
 
88

 
95

Professional fees
 
547

 
316

Insurance
 
103

 
48

Other general and administrative
 
505

 
516

Expenses before fee and expense waivers
 
12,250

 
15,965

Waiver of incentive fees
 
—

 
—

Waiver of internal administrative services expenses
 
(784
)
 
(758
)
Total expenses, net of fee and expense waivers
 
11,466

 
15,207

Net investment income before taxes
 
12,534

 
13,954

Income tax expense, including excise tax
 
76

 
58

NET INVESTMENT INCOME
 
12,458

 
13,896

NET REALIZED LOSS ON INVESTMENTS
 
 

 
 

Non-Control/Non-Affiliate investments
 
(321
)
 
(1,631
)
Affiliate investments
 
(3,044
)
 
(5,508
)
Control investments
 
—

 
—

Total net realized loss on investments
 
(3,365
)
 
(7,139
)
NET REALIZED INCOME
 
9,093

 
6,757

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
 
 

 
 

Non-Control/Non-Affiliate investments
 
(90,657
)
 
4,331

Affiliate investments
 
(3,254
)
 
3,626

Control investments
 
(998
)
 
4,106

Total net change in unrealized appreciation (depreciation) on investments
 
(94,909
)
 
12,063

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
 
$
(85,816
)
 
$
18,820

PER SHARE INFORMATION - BASIC AND DILUTED
 
 
 
 
NET INVESTMENT INCOME PER SHARE
 
$
0.16

 
$
0.18

NET REALIZED INCOME PER SHARE
 
$
0.12

 
$
0.09

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)
 
$
(1.09
)
 
$
0.24

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED
 
78,607,063

 
78,819,746


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
 
 
 
March 31, 2020
 
March 31, 2019
Change in Net Assets from Operations:
 
 
 
 
 
Net investment income
 
 
$
12,458

 
$
13,896

Net realized gain (loss) on investments
 
 
(3,365
)
 
(7,139
)
Net change in unrealized appreciation (depreciation) on investments
 
 
(94,909
)
 
12,063

Net increase (decrease) in net assets resulting from operations
 
 
(85,816
)
 
18,820

 
 
 
 
 
 
Change in Net Assets from Stockholders’ Distributions:
 
 
 
 
 
Net decrease in net assets resulting from stockholders’ distributions
 
 
(13,730
)
 
(13,606
)
 
 
 
 
 
 
Change in Net Assets from Capital Share Transactions:
 
 
 
 
 
Reinvestment of stockholder distributions
 
 
5,899

 
6,366

Repurchase of common stock
 
 
(6,094
)
 
(6,553
)
Net decrease in net assets resulting from capital share transactions
 
 
(195
)
 
(187
)
 
 
 
 
 
 
Total Increase (Decrease) in Net Assets
 
 
(99,741
)
 
5,027

Net Assets at beginning of the period
 
 
609,305

 
625,366

Net Assets at end of the period
 
 
$
509,564

 
$
630,393

 
 
 
 
 
 
NAV per share at end of the period
 
 
$
6.50

 
$
8.03

Distributions declared per share
 
 
$
0.17

 
$
0.17

 
 
 
 
 
 
Common shares outstanding, beginning of the period
 
 
78,463,377

 
78,584,824

Issuance of common shares pursuant to distribution reinvestment plan
 
 
751,240

 
782,543

Repurchase of common shares
 
 
(791,488
)
 
(820,171
)
Common shares outstanding, end of the period
 
 
78,423,129

 
78,547,196


See notes to the condensed consolidated financial statements.


3


HMS Income Fund, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited) 
 
Three Months Ended 
 March 31, 2020
 
Three Months Ended 
 March 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
 

 
 

Net increase (decrease) in net assets resulting from operations
$
(85,816
)
 
$
18,820

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash generated from operating activities:
 
 
 
Principal repayments received and proceeds from sales of investments in portfolio companies
86,496

 
39,036

Investments in portfolio companies
(46,895
)
 
(34,152
)
Net change in unrealized (appreciation) depreciation on portfolio investments
94,909

 
(12,063
)
Net realized loss on sale of portfolio investments
3,365

 
7,139

Amortization of deferred financing costs
351

 
337

Amortization of deferred offering costs
88

 
95

Accretion of unearned income
(2,021
)
 
(1,562
)
Net payment-in-kind interest accrual
(828
)
 
(1,169
)
Changes in other assets and liabilities:
 
 
 

Interest receivable
99

 
1,036

Prepaid and other assets
875

 
518

Base management and incentive fees payable
(394
)
 
1,271

Due to affiliates
4

 
48

Directors’ fees payable
5

 
5

Accounts payable and other liabilities
643

 
88

Net cash generated from operating activities
50,881

 
19,447

 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

Redemption of common stock
(6,094
)
 
(6,553
)
Payment of offering costs
(88
)
 
(95
)
Payment of stockholder distributions
(7,831
)
 
(7,243
)
Repayments on credit facilities payable
(117,000
)
 
(31,000
)
Proceeds from credit facilities payable
75,000

 
22,000

Payment of deferred financing costs
(462
)
 
—

Net cash used in financing activities
(56,475
)
 
(22,891
)
 
 
 
 
Net decrease in cash and cash equivalents
(5,594
)
 
(3,444
)
 
 
 
 
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
21,846

 
21,757

 
 
 
 
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
$
16,252

 
$
18,313

 
See notes to the condensed consolidated financial statements.


4

HMS Income Fund, Inc.
Condensed Consolidated Schedule of Investments
As of March 31, 2020
(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 8.58%, Secured Debt (Maturity - December 31, 2023) (8)
1 month LIBOR
8,262

8,243

8,262

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

6,435

22,375

 
 
 
 
 
14,678

30,637

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

2,735

3,156

 
 
 
 
 
 
 
Subtotal Control Investments (6) (4% of total investments at fair value)
 
 
$
18,285

$
34,665

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
$
188

$
188

$
188

 
 
Member Units (46 units)
—
—

300

1,265

 
 
 
 
 
488

1,453

Analytical Systems Keco, LLC (10) (13)
Manufacturer of Liquid and Gas Analyzers
LIBOR Plus 10.00% (Floor 2.00%), Current Coupon 12.00%, Secured Debt (Maturity - August 16, 2024) (8)
1 month LIBOR
1,374

1,245

1,251

 
 
Preferred Member Units (800 units)
—
—

800

1,015

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

79

135

 
 
 
 
 
2,124

2,401

Brewer Crane Holdings, LLC (10) (13)
Provider of Crane Rental and Operating Services
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.58%, Secured Debt (Maturity - January 9, 2023) (8)
1 month LIBOR
2,232

2,204

2,204

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

1,070

1,070

 
 
 
 
 
3,274

3,274

Centre Technologies Holdings, LLC (10) (13)
Provider of IT Hardware Services and Software Solutions
LIBOR Plus 10.00% (Floor 2.00%), Current Coupon 12.00%, Secured Debt (Maturity - January 4, 2024) (8)
1 month LIBOR
3,022

2,967

2,972

 
 
Preferred Member Units (3,174 units)
—
—

1,460

1,460

 
 
 
 
 
4,427

4,432

Chamberlin Holding, LLC (10) (13)
Roofing and Waterproofing Specialty Subcontractor
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.63%, Secured Debt (Maturity - February 23, 2023) (8)
1 month LIBOR
4,443

4,358

4,443

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

2,860

6,037

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

262

230

 
 
 
 
 
7,480

10,710

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

1,890

 
 
 
 
 
600

2,390

Clad-Rex Steel, LLC (10) (13)
Specialty Manufacturer of Vinyl-Clad Metal
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.08%, Secured Debt (Maturity - December 20, 2021) (8)
1 month LIBOR
2,720

2,697

2,720

 
 
Member Units (179 units) (16)
—
—

1,820

2,153

 
 
10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)
None
283

280

280

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

53

115

 
 
 
 
 
4,850

5,268

 
 
 
 
 
 
 
Cody Pools Holdings, LLC (10) (13)
Designer of Residential and Commercial Pools
LIBOR Plus 10.50% (Floor 1.75%), Current Coupon 12.50%, Secured Debt (Maturity - March 6, 2025) (8)
1 Month LIBOR
$
4,000

$
3,917

$
3,921

 
 
Preferred Member Units (147 units)
—
—

2,079

2,079

 
 
 
 
 
5,996

6,000

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

1,233

1,459

Digital Products Holdings LLC (10) (13)
Designer and Distributor of Consumer Electronics
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.63%, Secured Debt (Maturity - March 31, 2023) (8)
1 month LIBOR
4,822

4,755

4,451

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

2,375

594

 
 
 
 
 
7,130

5,045

Direct Marketing Solutions, Inc. (10) (13)
Provider of Omni-Channel Direct Marketing Services
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.63%, Secured Debt (Maturity - February 13, 2023) (8)
1 month LIBOR
3,870

3,797

3,870

 
 
Preferred Stock (2,100 shares)
—
—

2,100

5,015

 
 
 
 
 
5,897

8,885

Freeport Financial Funds (9) (15)
Investment Partnership
LP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.00%) (16)
—
—

10,945

9,631

Gamber-Johnson Holdings, LLC (10) (13)
Manufacturer of Ruggedized Computer Mounting Systems
LIBOR Plus 6.50% (Floor 2.00%), Current Coupon 8.50%, Secured Debt (Maturity - June 24, 2021) (8)
1 month LIBOR
4,560

4,515

4,560

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

3,711

13,311

 
 
 
 
 
8,226

17,871

Guerdon Modular Holdings, Inc. (10) (13)
Multi-Family and Commercial Modular Construction Company
Common Stock (53,008 shares)
—
—

746

—

 
 
Class B Preferred Stock (101,250 shares)
—
—

285

—

 
 
 
 
 
1,031

—

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

3,116

3,090

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.08%, Secured Debt (Maturity - September 30, 2020) (8)
1 month LIBOR
60

60

60

 
 
Member Units (920 units)
—
—

920

—

 
 
 
 
 
4,096

3,150

Harris Preston Fund Investments (9) (15)
Investment Partnership
LP Interests (HPEP 3, LP) (Fully diluted 8.20%)
—
—

2,819

2,819

Hawk Ridge Systems, LLC (9) (10) (13)
Value-Added Reseller of Engineering Design and Manufacturing Solutions
11.00% Secured Debt (Maturity - December 2, 2021)
None
3,350

3,322

3,350

 
 
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.58%, Secured Debt (Maturity - December 2, 2021) (8)
1 month LIBOR
150

149

149

 
 
Preferred Member Units (56 units)
—
—

713

1,830

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

38

98

 
 
 
 
 
4,222

5,427

J&J Services, Inc. (10) (13)
Provider of Dumpster and Portable Toilet Rental Services
11.50% Secured Debt (Maturity - October 31, 2024)
None
4,400

4,319

4,319

 
 
Preferred Stock (704 shares)
—
—

1,790

1,790

 
 
 
 
 
6,109

6,109

Kickhaefer Manufacturing Company, LLC (10) (13)
Precision Metal Parts Manufacturing
11.50% Secured Debt (Maturity - October 31, 2023)
None
6,340

6,192

6,192

 
 
9.00% Secured Debt (Maturity October 31, 2048)
None
993

983

983

 
 
Member Units (145 units)
—
—

3,060

2,861

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

248

290

 
 
 
 
 
10,483

10,326

 
 
 
 
 
 
 
Market Force Information, Inc. (10) (13)
Provider of Customer Experience Management Services
12.00% PIK Secured Debt (Maturity - July 28, 2022)
—
$
5,881

$
5,825

$
4,424

 
 
8.00% PIK Secured Debt (Maturity - July 28, 2022)
—
697

697

580

 
 
Member Units (170,000 units)
—
—

4,160

—

 
 
 
 
 
10,682

5,004

M.H. Corbin Holding LLC (10) (13)
Manufacturer and Distributor of Traffic Safety Products
13.00% Secured Debt (Maturity - March 31, 2022)
None
2,202

2,183

2,185

 
 
Preferred Member Units (16,500 units)
—
—

1,100

1,092

 
 
Common Units (1,000 units)
—
—

1,500

—

 
 
 
 
 
4,783

3,277

Mystic Logistics Holdings, LLC (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
12.00% Secured Debt (Maturity - January 17, 2022)
None
1,744

1,738

1,736

 
 
Common Stock (1,468 shares)
—
—

680

2,547

 
 
 
 
 
2,418

4,283

NexRev, LLC (10) (13)
Provider of Energy Efficiency Products & Services
11.00% PIK Secured Debt (Maturity - February 28, 2023)
None
4,342

4,280

3,889

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

1,720

—

 
 
 
 
 
6,000

3,889

NuStep, LLC (10) (13)
Designer, Manufacturer and Distributor of Fitness Equipment
12.00% Secured Debt (Maturity - January 31, 2022)
None
4,910

4,868

4,868

 
 
Preferred Member Units (102 units)
—
—

2,550

2,550

 
 
 
 
 
7,418

7,418

SI East, LLC (10) (13)
Rigid Industrial Packaging Manufacturing
9.50% Secured Debt (Maturity - August 31, 2023)
None
10,988

10,858

10,988

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

2,000

2,884

 
 
 
 
 
12,858

13,872

Tedder Acquisition, LLC (10) (13)
Manufacturer of Firearm Holsters and Accessories
12.00% Secured Debt (Maturity - August 31, 2023)
None
4,099

4,008

4,071

 
 
12.00% Secured Debt (Maturity - August 31, 2020)
None
160

158

158

 
 
Preferred Member Units (110 units)
—
—

2,034

2,034

 
 
 
 
 
6,200

6,263

Trantech Radiator Topco, LLC (10) (13)
Transformer Cooling Products and Services
12.00% Secured Debt (Maturity - May 31, 2024)
None
2,220

2,151

2,161

 
 
Common Stock (154 shares) (16)
—
—

1,164

1,655

 
 
 
 
 
3,315

3,816

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (17% of total investments at fair value)
 
 
$
147,574

$
154,472

 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)
Substance Abuse Treatment Service Provider
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 16.75%, Secured Debt (Maturity - June 30, 2023) (18)
3 month LIBOR
$
14,448

$
14,078

$
6,321

 
 
PRIME Plus 10.00% (Floor 1.00%), Current Coupon 13.25%, Secured Debt (Maturity - April 17, 2020)
PRIME
3,121

2,967

2,887

 
 
 
 
 
17,045

9,208

Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 7.50% (Floor 1.75%), Current Coupon 9.29%, Secured Debt (Maturity - July 3, 2023)
3 month LIBOR
6,105

6,020

5,751

 
 
LIBOR Plus 7.50% (Floor 1.75%), Current Coupon 9.25%, Secured Debt (Maturity - July 3, 2023)
3 month LIBOR
196

183

184

 
 
PRIME Plus 4.00% (Floor 1.75%), Current Coupon 7.25%, Secured Debt (Maturity - July 3, 2023)
PRIME
5,000

4,935

4,500

 
 
 
 
 
11,138

10,435

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 7.24%, Secured Debt (Maturity - July 26, 2023)
1 month LIBOR
$
15,784

$
15,796

$
15,106

Aethon United BR, LP (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.76%, Secured Debt (Maturity - September 8, 2023) (14)
3 month LIBOR
7,000

6,922

6,244

American Nuts, LLC (8) (11)
Roaster, Mixer and Packager of Bulk Nuts and Seeds
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.41%, Secured Debt (Maturity - April 10, 2023)
3 month LIBOR
12,213

11,939

11,615

American Teleconferencing Services, Ltd. (8)
Provider of Audio Conferencing and Video Collaboration Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.24%, Secured Debt (Maturity - June 8, 2023)
3 month LIBOR
14,144

13,730

7,991

American Trailer Rental Group LLC (10)
Provider of Short Term Trailer and Container Rental
Member Units (Milton Meisler Holdings, LLC) (12,139 units)
—
—

2,149

3,236

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

6,279

2,364

Arcus Hunting, LLC (8) (11)
Manufacturer of Bowhunting and Archery Products and Accessories
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.91%, Secured Debt (Maturity - March 31, 2021)
1 month LIBOR
6,839

6,798

6,839

ASC Ortho Management Company, LLC (11)
Provider of Orthopedic Services
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.41%, Secured Debt (Maturity - August 31, 2023) (8)
3 month LIBOR
5,264

5,193

4,770

 
 
13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)
None
1,854

1,815

1,737

 
 
 
 
 
7,008

6,507

ATX Networks Corp. (8) (9)
Provider of Radio Frequency Management Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.45% / 1.00% PIK, Current Coupon Plus PIK 8.45%, Secured Debt (Maturity - June 11, 2021)
3 month LIBOR
13,673

13,573

11,349

BarFly Ventures, LLC (11)
Casual Restaurant Group
12.00% Secured Debt (Maturity - August 31, 2020) (18)
None
3,395

3,378

343

 
 
9.00% PIK Secured Debt (Maturity - March 23, 2021) (18)
None
37

37

37

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

158

—

 
 
Options (.99 equivalent units)
—
—

202

—

 
 
 
 
 
3,775

380

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 12.58%, Secured Debt (Maturity - April 8, 2021) (8)
1 month LIBOR
1,200

1,198

1,168

 
 
Preferred Stock (28,280 units)
—
—

33

34

 
 
Member Units (200,000 units)
—
—

200

53

 
 
 
 
 
1,431

1,255

Berry Aviation, Inc. (11)
Airline Charter Service Operator
10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)
None
4,565

4,514

4,497

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

622

 
 
Preferred Member Units (Berry Acquisition, LLC) (122,416 units, 16.00% cumulative)
—
—
122

130

 
 
 
 
 
6,184

5,249

BigName Commerce, LLC (8) (11)
Provider of Envelopes and Complimentary Stationery Products
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.16%, Secured Debt (Maturity - May 11, 2022)
1 month LIBOR
2,201

2,188

2,096

Binswanger Enterprises, LLC (11)
Glass Repair and Installation Service Provider
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.95%, Secured Debt (Maturity - March 9, 2022) (8)
3 month LIBOR
13,538

13,279

13,105

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

1,050

730

 
 
 
 
 
14,329

13,835

Bluestem Brands, Inc. (8)
Multi-Channel Retailer of General Merchandise
PRIME Plus 6.50%, Current Coupon 11.29%, Secured Debt (Maturity - November 6, 2020) (18)
PRIME
11,391

11,339

6,777

 
 
 
 
 
 
 
Boccella Precast Products, LLC (10) (13)
Manufacturer of Precast Hollow Core Concrete
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.91%, Secured Debt (Maturity - June 30, 2022) (8)
3 month LIBOR
$
3,220

$
3,177

$
3,220

 
 
Member Units (540,000 units)
—
—

564

1,415

 
 
 
 
 
3,741

4,635

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

3,735

2,602

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

9,037

8,082

 
 
 
 
 
12,772

10,684

Buca C, LLC (10) (13)
Casual Restaurant Group
LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.61%, Secured Debt (Maturity - June 30, 2020) (8)
1 month LIBOR
12,670

12,654

11,327

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

3,040

511

 
 
 
 
 
15,694

11,838

Cadence Aerospace, LLC (8) (11)
Aerospace Manufacturing
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.28%, Secured Debt (Maturity - November 14, 2023)
3 month LIBOR
19,224

19,094

17,916

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
11.00% Secured Debt (Maturity - December 7, 2023)
None
2,286

2,298

2,286

 
 
Member Units (16,742 units)
—
—

188

1,318

 
 
 
 
 
2,486

3,604

Cenveo Corporation
Provider of Digital Marketing Agency Services
PRIME Plus 9.50%, Current Coupon 10.51%, Secured Debt (Maturity - June 7, 2023) (8)
PRIME
4,449

4,194

4,338

 
 
Common Stock (138,889 shares)
—
—

4,163

2,083

 
 
 
 
 
8,357

6,421

Chisholm Energy Holdings, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.94%, Secured Debt (Maturity - May 15, 2026) (14)
3 month LIBOR
3,571

3,480

3,093

Clarius BIGS, LLC (11)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,099

1,841

34

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
763

670

12

 
 
 
 
 
2,511

46

Classic H&G Holdings, LLC (10) (13)
Provider of Engineered Packaging Solutions
12.00% Secured Debt (Maturity - March 12, 2025)
None
6,500

6,302

6,307

 
 
Preferred Member Units (38.52 units)
—
—

1,440

1,440

 
 
 
 
 
7,742

7,747

Clickbooth.com, LLC (8) (11)
Provider of Digital Advertising Performance Marketing Solutions
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.41%, Secured Debt (Maturity - January 31, 2025)
3 month LIBOR
8,000

7,861

7,784

 
 
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - January 31, 2025)
3 month LIBOR
457

457

445

 
 
 
 
 
8,318

8,229

Construction Supply Investments, LLC (11)
Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
Member units (42,207 units)
—
—

5,637

6,872

Corel Corporation (8) (9) (12)
Publisher of Desktop and Cloud-Based Software
LIBOR plus 5.00%, (Floor 0.00%), Current Coupon 6.61%, Secured Debt (Maturity - July 2, 2026)
3 month LIBOR
2,000

1,895

1,775

CTVSH, PLLC (8) (11) (13)
Emergency Care and Specialty Service Animal Hospital
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.58%, Secured Debt (Maturity - August 3, 2022)
1 month LIBOR
2,387

2,361

2,311

Datacom, LLC (10) (13)
Technology and Telecommunications Provider
10.50% PIK Secured Debt (Maturity - May 31, 2021) (18)
None
1,376

1,369

1,116

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

200

179

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

144

—

 
 
Class B Preferred Member Units (717 units)
—
—

670

—

 
 
 
 
 
2,383

1,295

Digital River, Inc. (8)
Provider of Outsourced e-Commerce Solutions and Services
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - February 12, 2023)
3 month LIBOR
$
8,377

$
8,227

$
8,084

DTE Enterprises, LLC (11)
Industrial Powertrain Repair and Services
LIBOR Plus 7.50% (Floor 1.50%), Current Coupon 9.00%, Secured Debt (Maturity - April 13, 2023) (8)
3 month LIBOR
10,992

10,843

10,684

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

859

881

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

776

1,210

 
 
 
 
 
12,478

12,775

Dynamic Communities, LLC (8) (11)
Developer of Business Events and Online Community Groups
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - July 17, 2023)
3 month LIBOR
5,390

5,312

5,045

Epic Y-Grade Services, LP (8)
NGL Transportation & Storage
LIBOR Plus 6.00% (Floor 0.00%), Current Coupon 7.62%, Secured Debt (Maturity - June 13, 2024)
3 month LIBOR
6,875

6,776

5,129

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 10.03%, Secured Debt (Maturity - April 28, 2022) (14) (18)
3 month LIBOR
10,901

10,669

1,970

Flavors Holdings, Inc. (8)
Global Provider of Flavoring and Sweetening Products and Solutions
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.20%, Secured Debt (Maturity - June 30, 2020)
3 month LIBOR
10,719

10,687

10,138

GoWireless Holdings, Inc. (8)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - December 22, 2024)
3 month LIBOR
14,704

14,601

11,935

GS Operating, LLC (8) (11)
Distributor of Industrial and Specialty Parts
LIBOR Plus 6.50% (Floor 1.50%), Current Coupon 8.00%, Secured Debt (Maturity - February 24, 2025)
1 month LIBOR
12,600

12,253

11,126

HDC/HW Intermediate Holdings, LLC (8) (11)
Managed Services and Hosting Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.96%, Secured Debt (Maturity - December 21, 2023)
3 month LIBOR
1,958

1,927

1,829

Hoover Group, Inc. (8) (9) (11)
Provider of Storage Tanks and Related Products to the Energy and Petrochemical Markets
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.70%, Secured Debt (Maturity - January 28, 2021)
3 month LIBOR
22,007

21,578

20,356

Hunter Defense Technologies, Inc. (8) (11)
Provider of Military and Commercial Shelters and Systems
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.45%, Secured Debt (Maturity - March 29, 2023)
3 month LIBOR
15,731

15,499

15,038

HW Temps LLC (10) (13)
Temporary Staffing Solutions
12.00% Secured Debt (Maturity - March 29, 2023)
None
2,515

2,473

2,201

Hydrofarm Holdings, LLC (8) (11)
Wholesaler of Horticultural Products
LIBOR Plus 8.50%, Current Coupon 9.49%, Secured Debt (Maturity - May 12, 2022)
1 month LIBOR
6,908

6,829

5,603

Hyperion Materials & Technologies, Inc. (8) (9)
Manufacturer of Cutting and Machine Tools & Specialty Polishing Compounds
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.50%, Secured Debt (Maturity - August 28, 2026)
1 month LIBOR
7,481

7,341

6,209

iEnergizer Limited (8) (9) (11)
Provider of Business Outsourcing Solutions
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - April 17, 2024)
1 month LIBOR
12,200

12,097

11,431

Implus Footcare, LLC (8) (11)
Provider of Footwear and Related Accessories
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity - April 30, 2024)
3 month LIBOR
16,939

16,622

14,924

Independent Pet Partners Intermediate Holdings, LLC (11)
Omnichannel Retailer of Specialty Pet Products
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - November 19, 2023) (8)
3 month LIBOR
14,922

14,545

13,848

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

1,192

543

 
 
 
 
 
15,737

14,391

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
12,229

12,205

12,229

 
 
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

1,004

 
 
 
 
 
14,631

13,559

Interface Security Systems, L.L.C. (8) (11)
Commercial Security and Alarm Services
LIBOR Plus 7.00% (Floor 1.75%), Current Coupon 8.75%, Secured Debt (Maturity - August 7, 2023)
3 month LIBOR
$
7,500

$
7,371

$
6,780

Intermedia Holdings, Inc. (8)
Unified Communications as a Service
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 6.99%, Secured Debt (Maturity - July 19, 2025)
1 month LIBOR
3,507

3,479

3,209

Invincible Boat Company, LLC (8) (11)
Manufacturer of Sport Fishing Boats
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - August 28, 2025)
3 month LIBOR
9,813

9,717

8,793

Isagenix International, LLC (8)
Direct Marketer of Health and Wellness Products
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.02%, Secured Debt (Maturity - June 14, 2025)
3 month LIBOR
5,860

5,813

2,183

Jackmont Hospitality, Inc. (8) (11)
Franchisee of Casual Dining Restaurants
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - May 26, 2021)
1 month LIBOR
8,119

8,112

6,544

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

3,281

3,012

 
 
Common Stock (472,579 shares)
—
—

3,678

2,931

 
 
 
 
 
6,959

5,943

Kemp Technologies Inc. (8) (11)
Provider of Application Delivery Controllers
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.17%, Secured Debt (Maturity - March 29, 2024)
3 month LIBOR
7,444

7,314

6,885

Knight Energy Services LLC (11)
Oil and Gas Equipment and Services
8.50% PIK Secured Debt (Maturity - February 9, 2024)
None
845

845

845

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

1,843

160

 
 
 
 
 
2,688

1,005

Kore Wireless Group, Inc.
Mission Critical Software Platform
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.57%, Secured Debt (Maturity - December 20, 2024) (8)
3 month LIBOR
6,046

6,022

5,592

Larchmont Resources, LLC
Oil & Gas Exploration & Production
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - August 7, 2020) (8)
3 month LIBOR
3,614

3,671

3,289

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

601

841

 
 
 
 
 
4,272

4,130

Laredo Energy VI, LP (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 9.63% (Floor 2.00%), Current Coupon 10.75% / 12.50% PIK, Current Coupon Plus PIK 23.25% Secured Debt (Maturity - November 19, 2021)
3 month LIBOR
11,402

11,330

8,779

Lightbox Holdings, L.P. (8)
Provider of Commercial Real Estate Software
LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 5.80%, Secured Debt (Maturity - May 9, 2026)
1 month LIBOR
4,962

4,894

4,888

LL Management, Inc. (8) (11)
Medical Transportation Service Provider
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.56%, Secured Debt (Maturity - September 25, 2023)
3 month LIBOR
13,685

13,564

12,590

Logix Acquisition Company, LLC (8) (11)
Competitive Local Exchange Carrier
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.74%, Secured Debt (Maturity - December 22, 2024) (23)
1 month LIBOR
12,722

12,651

10,495

LSF9 Atlantis Holdings, LLC (8)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - May 1, 2023)
1 month LIBOR
13,038

12,976

10,764

Lulu’s Fashion Lounge, LLC (8) (11)
Fast Fashion E-Commerce Retailer
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.07%, Secured Debt (Maturity - August 28, 2022)
3 month LIBOR
5,668

5,545

4,846

Lynx FBO Operating LLC (11)
Fixed Based Operator in the General Aviation Industry
LIBOR Plus 5.75%, (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity - September 30, 2024) (8)
3 month LIBOR
14,681

14,395

13,022

 
 
Member Units (3,704 units)
—
—

500

445

 
 
 
 
 
14,895

13,467

Mac Lean-Fogg Company (11)
Manufacturer and Supplier for Auto and Power Markets
LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 5.99%, Secured Debt (Maturity - December 22, 2025) (8)
1 month LIBOR
7,117

7,067

6,262

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

778

751

 
 
 
 
 
7,845

7,013

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

$
22,477

$
12,449

Mills Fleet Farm Group, LLC (8) (11)
Omnichannel Retailer of Work, Farm and Lifestyle Merchandise
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.84% / 0.75% PIK, Current Coupon Plus PIK 8.59%, Secured Debt (Maturity - October 24, 2024)
3 month LIBOR
14,874

14,557

12,658

NinjaTrader, LLC (8) (11)
Operator of Futures Trading Platform
LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.90%, Secured Debt (Maturity - December 18, 2024)
1 month LIBOR
9,675

9,497

8,688

NNE Partners, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 9.58%, Secured Debt (Maturity - March 2, 2022)
3 month LIBOR
20,417

20,332

17,599

North American Lifting Holdings, Inc. (8)
Crane Service Provider
LIBOR Plus 4.50% (Floor 1.00%), Current Coupon 5.95%, Secured Debt (Maturity - November 27, 2020)
3 month LIBOR
6,162

6,002

4,622

Novetta Solutions, LLC (8)
Provider of Advanced Analytics Solutions for Defense Agencies
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.00%, Secured Debt (Maturity - October 17, 2022)
1 month LIBOR
14,784

14,555

13,255

NTM Acquisition Corp. (8)
Provider of B2B Travel Information Content
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity - June 7, 2022)
3 month LIBOR
4,505

4,481

4,482

Pasha Group (8)
Diversified Logistics and Transportation Provided
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.76%, Secured Debt (Maturity - January 26, 2023)
2 month LIBOR
8,496

8,314

7,222

Permian Holdco 2, Inc.
Storage Tank Manufacturer
14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)
None
1,179

1,179

892

 
 
18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)
None
830

830

830

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

1,997

—

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

—

—

 
 
 
 
 
4,006

1,722

PricewaterhouseCoopers Public Sector LLP (8)
Provider of Consulting Services to Governments
LIBOR Plus 8.00% (Floor 0.00%), Current Coupon 8.99%, Secured Debt (Maturity - May 1, 2026) (14)
1 month LIBOR
14,100

14,059

12,197

Rise Broadband (8) (11)
Fixed Wireless Broadband Provider
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.64%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
14,738

14,637

13,839

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

31

10

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

284

—

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

—

—

 
 
 
 
 
315

10

Salient Partners, LP (8) (11)
Provider of Asset Management Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - June 9, 2021)
1 month LIBOR
6,450

6,526

5,702

Slick Software Holdings LLC (10) (13)
Text Messaging Marketing Platform
14.00% Secured Debt (Maturity - September 13, 2023)
—
1,590

1,346

1,346

 
 
Member units (17,500 units)
—
—

175

270

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

45

73

 
 
 
 
 
1,566

1,689

TEAM Public Choices, LLC (8) (11)
Home-Based Care Employment Service Provider
LIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - September 20, 2024)
1 month LIBOR
9,601

9,510

8,631

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

728

—

TGP Holdings III LLC (8)
Outdoor Cooking & Accessories
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.28%, Secured Debt (Maturity - September 25, 2025) (14)
3 month LIBOR
5,000

5,000

3,675

 
 
 
 
 
 
 
TOMS Shoes, LLC (8)
Global Designer, Distributor, and Retailer of Casual Footwear
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.77%, Secured Debt (Maturity - September 30, 2025)
3 month LIBOR
$
571

$
571

$
571

 
 
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.27%, Secured Debt (Maturity - December 31, 2025) (14)
3 month LIBOR
1,662

1,662

1,428

 
 
Member Units (16,321 units)
—
—

220

220

 
 
 
 
 
2,453

2,219

USA DeBusk LLC (8) (11)
Provider of Industrial Cleaning Services
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - October 22, 2024)
1 month LIBOR
16,758

16,450

14,730

U.S. Telepacific Corp. (8)
Provider of Communications and Managed Services
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.07%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
12,500

12,314

9,750

Vida Capital, Inc. (8)
Alternative Asset Manager
LIBOR Plus 6.00% (Floor 0.00%), Current Coupon 7.78%, Secured Debt (Maturity - October 1, 2026)
3 month LIBOR
7,434

7,330

6,877

VIP Cinema Holdings, Inc. (8)
Supplier of Luxury Seating to the Cinema Industry
PRIME Plus 8.00% (Floor 1.00%), Current Coupon 9.91%, Secured Debt (Maturity - March 1, 2023) (18)
PRIME
8,750

8,724

—

 
 
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - May 1, 2020)
1 month LIBOR
1,439

1,210

1,210

 
 
 
 
 
9,934

1,210

Vistar Media, Inc. (11)
Operator of Digital Out-of-Home Advertising Platform
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - April 3, 2023) (8)
3 month LIBOR
4,670

4,519

4,520

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

—

1,850

 
 
Preferred Stock (70,207 shares)
—
—

767

1,830

 
 
 
 
 
5,286

8,200

Volusion, LLC (10) (13)
Provider of Online Software-as-a-Service eCommerce Solutions
11.50% Secured Debt (Maturity - January 24, 2020) (19)
None
8,672

8,636

8,247

 
 
8.00% Unsecured Debt (Maturity - November 16, 2023) (17)
None
175

175

124

 
 
Preferred Member Units (2,090,001 units)
—
—

6,000

5,550

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

1,104

—

 
 
 
 
 
15,915

13,921

Wireless Vision Holdings, LLC (8) (11)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 9.86% (Floor 1.00%), Current Coupon 11.46% / 1.00% PIK, Current Coupon Plus PIK 12.46%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
7,036

6,920

6,016

 
 
LIBOR Plus 9.91% (Floor 1.00%), Current Coupon 11.52% / 1.00% PIK, Current Coupon Plus PIK 12.52%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
6,116

5,949

5,229

 
 
 
 
 
12,869

11,245

YS Garments, LLC (8)
Designer and Provider of Branded Activewear
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - August 9, 2024)
1 month LIBOR
7,219

7,162

6,533

Subtotal Non-Control/Non-Affiliate Investments (5) (79% of total portfolio investments at fair value)
 
 
$
835,553

$
705,726

Total Portfolio Investments
 
 
 
 
$
1,001,412

$
894,863

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

$
7,999

$
7,999

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

5,229

5,229

Total Short Term Investments
 
 
 
 
$
13,228

$
13,228


(1) All investments are Middle Market (as defined in the notes to the financial statements) portfolio investments, unless otherwise noted. All of the assets of HMS Income Fund, Inc. (together with its consolidated subsidiaries, the “Company”) are encumbered as security for the Company’s credit agreements. See Note 5 — Borrowings.
(2) Debt investments are income producing, unless otherwise noted. Equity investments and warrants are non-income producing, unless otherwise noted.
(3) See Note 3 — Fair Value Hierarchy for Investments for summary geographic location of portfolio companies.
(4) Affiliate investments are generally defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments in which between 5% and 25% of the voting securities are owned, or an investment in an investment company’s investment adviser, and the investments are not classified as Control investments. Fair value as of December 31, 2019 and March 31, 2020 along with transactions during the three months ended March 31, 2020 in these affiliated investments were as follows (in thousands):
 
 
 
Three Months Ended March 31, 2020
 
 
 
Three Months Ended March 31, 2020
Portfolio Company
Fair Value at December 31, 2019
 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 
Net Unrealized Gain (Loss) ***
 
Fair Value at March 31, 2020
 
Net Realized Gain (Loss)
Interest Income
Fee Income
Dividend Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFG Capital Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
$
209

 
$
—

 
$
(21
)
 
$
—

 
$
188

 
$
—

$
5

$
—

$
—

Member units
1,295

 
—

 
—

 
(30
)
 
1,265

 
—

—

—

—

Analytical Systems Keco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
1,266

 
2

 
(17
)
 
—

 
1,251

 
—

44

—

—

Preferred member units
800

 
—

 
—

 
215

 
1,015

 
—

—

—

—

Warrants
79

 
—

 
—

 
56

 
135

 
—

—

—

—

Brewer Crane Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
2,233

 
2

 
(31
)
 
—

 
2,204

 
—

68

—

—

Preferred member units
1,070

 
—

 
—

 
—

 
1,070

 
—

—

—

5

Centre Technologies Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
3,008

 
3

 
(39
)
 
—

 
2,972

 
—

94

—

—

Preferred member units
1,460

 
—

 
—

 
—

 
1,460

 
—

—

7

—

Chamberlin HoldCo, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
4,443

 
5

 
—

 
(5
)
 
4,443

 
—

139

—

—

Member units
6,009

 
—

 
—

 
28

 
6,037

 
—

—

—

46

Member units
363

 
—

 
—

 
(133
)
 
230

 
—

—

—

4

Charlotte Russe, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
—

 
—

 
—

 
—

 
—

 
—

—

—

—

Charps, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
500

 
—

 
—

 
—

 
500

 
—

19

—

—

Preferred member units
1,730

 
—

 
—

 
160

 
1,890

 
—

—

—

6

Clad-Rex Steel, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
2,696

 
3

 
—

 
21

 
2,720

 
—

77

—

—

Member units
2,408

 
—

 
—

 
(255
)
 
2,153

 
—

—

—

18

Term loan (Clad-Rex Steel RE Investor, LLC)
282

 
—

 
(2
)
 
—

 
280

 
—

7

—

—

Member units (Clad-Rex Steel RE Investor, LLC)
115

 
—

 
—

 
—

 
115

 
—

—

—

—

Cody Pools Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
—