UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
 FORM 10-Q
(Mark One)
 
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 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 79,608,304 shares of common stock outstanding as of August 12, 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)
 
June 30, 2020
 
December 31, 2019
 
(Unaudited)
 
 
ASSETS
 
 
 
Portfolio investments at fair value:
 
 
 
Non-Control/Non-Affiliate investments (amortized cost: $794,494 and $878,632 as of June 30, 2020 and December 31, 2019, respectively)
$
687,521

 
$
838,643

Affiliate investments (amortized cost: $146,959 and $144,006 as of June 30, 2020 and December 31, 2019, respectively)
155,573

 
154,158

Control investments (amortized cost: $18,286 and $17,417 as of June 30, 2020 and December 31, 2019, respectively)
34,484

 
34,796

Total portfolio investments (amortized cost: $959,739 and $1,040,055 as of June 30, 2020 and December 31, 2019, respectively)
877,578

 
1,027,597

 
 
 
 
Cash and cash equivalents
12,672

 
21,846

Restricted cash
15,252

 
—

Interest receivable
8,831

 
8,749

Receivable for securities sold
6,044

 
—

Prepaid and other assets
4,102

 
4,403

Deferred financing costs (net of accumulated amortization of $3,177 and $2,990 as of June 30, 2020 and December 31, 2019, respectively)
3,412

 
3,516

Total assets
$
927,891

 
$
1,066,111

 
 
 
 
LIABILITIES
 

 
 

Accounts payable and other liabilities
$
3,529

 
$
1,684

Stockholder distributions payable
4,571

 
4,669

Base management and incentive fees payable
9,624

 
5,388

Due to affiliates
56

 
44

Directors’ fees payable
45

 
21

Payable for securities purchased
1,883

 
—

Credit facilities payable
384,908

 
445,000

Total liabilities
404,616

 
456,806

 
 
 
 
Commitments and Contingencies (Note 12)
 
 
 
 
 
 
 
NET ASSETS
 

 
 

Common stock, $.001 par value; 150,000,000 shares authorized, 79,317,628 and 78,463,377 issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
79

 
78

Additional paid-in capital
681,230

 
675,554

Accumulated loss
(158,034
)
 
(66,327
)
Total net assets
523,275

 
609,305

 
 
 
 
Total liabilities and net assets
$
927,891

 
$
1,066,111

 
 
 
 
Net asset value per share
$
6.60

 
$
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
 
Six Months Ended
 
June 30, 2020
 
June 30, 2019
 
June 30, 2020
 
June 30, 2019
INVESTMENT INCOME:
 

 
 

 
 

 
 

From non-control/non-affiliate investments:
 
 
 
 
 
 
 
Interest income
$
17,348

 
$
23,298

 
$
36,396

 
$
46,797

Fee income
373

 
118

 
913

 
425

Dividend income
108

 
859

 
389

 
1,186

From affiliate investments:
 
 
 
 
 
 
 
Interest income
2,196

 
2,202

 
4,753

 
4,804

Fee income
49

 
25

 
64

 
62

Dividend income
1,668

 
638

 
2,636

 
1,034

From control investments:
 
 
 
 
 
 
 
Interest income
158

 
144

 
338

 
267

Fee income
19

 
18

 
39

 
35

Dividend income
328

 
1,346

 
719

 
3,199

Total investment income
22,247

 
28,648

 
46,247

 
57,809

EXPENSES:
 

 
 

 
 

 
 

Interest expense
4,274

 
6,621

 
9,503

 
13,728

Base management and incentive fees
4,630

 
6,964

 
9,624

 
14,089

Internal administrative services expenses
752

 
740

 
1,536

 
1,498

Offering costs
89

 
96

 
177

 
191

Professional fees
546

 
384

 
1,093

 
700

Insurance
104

 
48

 
207

 
96

Other general and administrative
600

 
540

 
1,105

 
1,056

Expenses before fee and expense waivers
10,995

 
15,393

 
23,245

 
31,358

Waiver of incentive fees
—

 
—

 
—

 
—

Waiver of internal administrative services expenses
(752
)
 
(740
)
 
(1,536
)
 
(1,498
)
Total expenses, net of fee and expense waivers
10,243

 
14,653

 
21,709

 
29,860

Net investment income before taxes
12,004

 
13,995

 
24,538

 
27,949

Income tax expense, including excise tax
19

 
101

 
95

 
159

NET INVESTMENT INCOME
11,985

 
13,894

 
24,443

 
27,790

NET REALIZED GAIN (LOSS) ON INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
(13,318
)
 
559

 
(13,639
)
 
(1,072
)
Affiliate investments
(1,010
)
 
242

 
(4,054
)
 
(5,266
)
Control investments
—

 
(598
)
 
—

 
(598
)
Total net realized gain (loss) on investments
(14,328
)
 
203

 
(17,693
)
 
(6,936
)
NET REALIZED INCOME (LOSS)
(2,343
)
 
14,097

 
6,750

 
20,854

NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
 

 
 

 
 

 
 

Non-Control/Non-Affiliate investments
22,437

 
(6,155
)
 
(68,220
)
 
(1,824
)
Affiliate investments
1,714

 
811

 
(1,540
)
 
4,437

Control investments
(183
)
 
3,023

 
(1,181
)
 
7,129

Total net change in unrealized appreciation (depreciation) on investments
23,968

 
(2,321
)
 
(70,941
)
 
9,742

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
$
21,625

 
$
11,776

 
$
(64,191
)
 
$
30,596

PER SHARE INFORMATION - BASIC AND DILUTED
 
 
 
 
 
 
 
NET INVESTMENT INCOME PER SHARE
$
0.15

 
$
0.17

 
$
0.31

 
$
0.35

NET REALIZED INCOME (LOSS) PER SHARE
$
(0.03
)
 
$
0.17

 
$
0.09

 
$
0.26

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)
$
0.28

 
$
0.15

 
$
(0.81
)
 
$
0.39

WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED
79,016,406

 
78,793,480

 
78,811,735

 
78,806,540


See notes to the condensed consolidated financial statements.

2


HMS Income Fund, Inc.
Condensed Consolidated Statements of Changes in Net Assets
(dollars in thousands, except share and per share amounts)
(Unaudited)
 
 
Three Months Ended
 
Six Months Ended
 
June 30, 2020
 
June 30, 2019
 
June 30, 2020
 
June 30, 2019
Change in Net Assets from Operations:
 
 
 
 
 
 
 
Net investment income
$
11,985

 
$
13,894

 
$
24,443

 
$
27,790

Net realized gain (loss) on investments
(14,328
)
 
203

 
(17,693
)
 
(6,936
)
Net change in unrealized appreciation (depreciation) on investments
23,968

 
(2,321
)
 
(70,941
)
 
9,742

Net increase (decrease) in net assets resulting from operations
21,625

 
11,776

 
(64,191
)
 
30,596

 
 
 
 
 
 
 
 
Change in Net Assets from Stockholders’ Distributions:
 
 
 
 
 
 
 
Net decrease in net assets resulting from stockholders’ distributions
(13,790
)
 
(13,754
)
 
(27,520
)
 
(27,360
)
 
 
 
 
 
 
 
 
Change in Net Assets from Capital Share Transactions:
 
 
 
 
 
 
 
Reinvestment of stockholder distributions
5,876

 
6,369

 
11,775

 
12,735

Repurchase of common stock
—

 
(6,410
)
 
(6,094
)
 
(12,963
)
Net increase (decrease) in net assets resulting from capital share transactions
5,876

 
(41
)
 
5,681

 
(228
)
 
 
 
 
 
 
 
 
Total Increase (Decrease) in Net Assets
13,711

 
(2,019
)
 
(86,030
)
 
3,008

Net Assets at beginning of the period
509,564

 
630,393

 
609,305

 
625,366

Net Assets at end of the period
$
523,275

 
$
628,374

 
$
523,275

 
$
628,374

 
 
 
 
 
 
 
 
NAV per share at end of the period
$
6.60

 
$
8.00

 
$
6.60

 
$
8.00

Distributions declared per share
$
0.18

 
$
0.18

 
$
0.35

 
$
0.35

 
 
 
 
 
 
 
 
Common shares outstanding, beginning of the period
78,423,129

 
78,547,196

 
78,463,377

 
78,584,824

Issuance of common shares pursuant to distribution reinvestment plan
894,499

 
786,100

 
1,645,739

 
1,568,643

Repurchase of common shares
—

 
(803,240
)
 
(791,488
)
 
(1,623,411
)
Common shares outstanding, end of the period
79,317,628

 
78,530,056

 
79,317,628

 
78,530,056


See notes to the condensed consolidated financial statements.


3


HMS Income Fund, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited) 
 
Six Months Ended 
 June 30, 2020
 
Six Months Ended 
 June 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
 

 
 

Net increase (decrease) in net assets resulting from operations
$
(64,191
)
 
$
30,596

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
127,890

 
191,462

Investments in portfolio companies
(64,027
)
 
(138,818
)
Net change in unrealized (appreciation) depreciation on portfolio investments
70,941

 
(9,742
)
Net realized loss on sale of portfolio investments
17,693

 
6,936

Amortization of deferred financing costs
715

 
674

Amortization of deferred offering costs
177

 
191

Accretion of unearned income
(3,322
)
 
(4,054
)
Net payment-in-kind interest accrual
(1,977
)
 
(2,365
)
Changes in other assets and liabilities:
 
 
 

Interest receivable
(82
)
 
928

Prepaid and other assets
192

 
638

Base management and incentive fees payable
4,236

 
1,110

Due to affiliates
12

 
(3
)
Directors’ fees payable
24

 
49

Accounts payable and other liabilities
607

 
242

Net cash generated from operating activities
88,888

 
77,844

 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 

 
 

Redemption of common stock
(6,094
)
 
(12,963
)
Payment of offering costs
(177
)
 
(191
)
Payment of stockholder distributions
(15,843
)
 
(14,780
)
Repayments on credit facilities payable
(139,418
)
 
(108,000
)
Proceeds from credit facilities payable
79,326

 
57,000

Payment of deferred financing costs
(604
)
 
—

Net cash used in financing activities
(82,810
)
 
(78,934
)
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
6,078

 
(1,090
)
 
 
 
 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT THE BEGINNING OF THE PERIOD
21,846

 
21,757

 
 
 
 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT THE END OF THE PERIOD
$
27,924

 
$
20,667

 
See notes to the condensed consolidated financial statements.


4

HMS Income Fund, Inc.
Condensed Consolidated Schedule of Investments
As of June 30, 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 7.17%, Secured Debt (Maturity - December 31, 2023) (8)
1 month LIBOR
8,262

8,244

8,262

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

6,435

22,374

 
 
 
 
 
14,679

30,636

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

2,735

2,976

 
 
 
 
 
 
 
Subtotal Control Investments (6) (4% of total investments at fair value)
 
 
$
18,286

$
34,484

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
$
166

$
166

$
166

 
 
Member Units (46 units)
—
—

300

1,292

 
 
 
 
 
466

1,458

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
1,324

1,198

1,204

 
 
Preferred Member Units (800 units)
—
—

800

973

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

79

127

 
 
 
 
 
2,077

2,304

Brewer Crane Holdings, LLC (10) (13)
Provider of Crane Rental and Operating Services
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - January 9, 2023) (8)
1 month LIBOR
2,201

2,176

2,176

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

1,070

1,070

 
 
 
 
 
3,246

3,246

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
2,984

2,933

2,937

 
 
Preferred Member Units (3,174 units)
—
—

1,460

1,460

 
 
 
 
 
4,393

4,397

Chamberlin Holding, LLC (10) (13)
Roofing and Waterproofing Specialty Subcontractor
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - February 24, 2023) (8)
1 month LIBOR
4,443

4,364

4,443

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

2,860

6,037

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

262

230

 
 
 
 
 
7,486

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

2,033

 
 
 
 
 
600

2,533

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

2,700

2,700

 
 
Member Units (179 units) (16)
—
—

1,820

2,153

 
 
10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)
None
281

279

279

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

53

115

 
 
 
 
 
4,852

5,247

Cody Pools Holdings, LLC (10) (13)
Designer of Residential and Commercial Pools
LIBOR Plus 10.50% (Floor 1.75%), Current Coupon 12.25%, Secured Debt (Maturity - March 6, 2025) (8)
1 Month LIBOR
3,950

3,871

3,875

 
 
Preferred Member Units (147 units)
—
—

2,079

2,079

 
 
 
 
 
5,950

5,954

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

$
2,248

$
1,821

Digital Products Holdings LLC (10) (13)
Designer and Distributor of Consumer Electronics
LIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - March 31, 2023) (8)
1 month LIBOR
4,739

4,678

4,541

 
 
Preferred Member Units (964 units) (16)
—
—

2,375

1,150

 
 
 
 
 
7,053

5,691

Direct Marketing Solutions, Inc. (10) (13)
Provider of Omni-Channel Direct Marketing Services
LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.00%, Secured Debt (Maturity - February 13, 2023) (8)
1 month LIBOR
3,812

3,745

3,812

 
 
Preferred Stock (2,100 shares)
—
—

2,100

5,015

 
 
 
 
 
5,845

8,827

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

10,785

10,569

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
4,960

4,913

4,960

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

3,711

13,311

 
 
 
 
 
8,624

18,271

Gulf Publishing Holdings, LLC (10) (13)
Energy Industry Focused Media and Publishing
6.25% Current / 6.25% PIK, Secured Debt (Maturity - April 29, 2021)
None
3,167

3,152

2,888

 
 
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 5.25% / 5.25% PIK, Current Coupon Plus PIK 10.50%, Secured Debt (Maturity - September 30, 2020) (8)
1 month LIBOR
61

61

61

 
 
Member Units (920 units)
—
—

920

—

 
 
 
 
 
4,133

2,949

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

3,326

3,350

 
 
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - December 2, 2021) (8)
1 month LIBOR
150

150

150

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

713

1,830

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

38

98

 
 
 
 
 
4,227

5,428

J&J Services, Inc. (10) (13)
Provider of Dumpster and Portable Toilet Rental Services
11.50% Secured Debt (Maturity - October 31, 2024)
None
3,800

3,734

3,800

 
 
Preferred Stock (696.15 shares)
—
—

1,771

2,475

 
 
 
 
 
5,505

6,275

Kickhaefer Manufacturing Company, LLC (10) (13)
Precision Metal Parts Manufacturing
9.50% Current / 2.00% PIK Secured Debt (Maturity - April 1, 2025)
None
6,360

6,222

6,225

 
 
9.00% Secured Debt (Maturity October 31, 2048)
None
991

981

981

 
 
Member Units (145 units)
—
—

3,060

2,861

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

248

290

 
 
 
 
 
10,511

10,357

Market Force Information, Inc. (10) (13)
Provider of Customer Experience Management Services
12.00% PIK Secured Debt (Maturity - July 28, 2023) (18)
—
6,519

6,463

3,566

 
 
Member Units (185,980 units)
—
—

4,160

—

 
 
 
 
 
10,623

3,566

M.H. Corbin Holding LLC (10) (13)
Manufacturer and Distributor of Traffic Safety Products
13.00% Secured Debt (Maturity - March 15, 2022)
None
2,183

2,166

2,167

 
 
Preferred Member Units (16,500 units)
—
—

1,100

858

 
 
Common Units (1,000 units)
—
—

1,500

—

 
 
 
 
 
4,766

3,025

Mystic Logistics Holdings, LLC (10) (13)
Logistics and Distribution Services Provider for Large Volume Mailers
10.00% Secured Debt (Maturity - January 17, 2022)
None
$
1,744

$
1,740

$
1,740

 
 
Common Stock (1,468 shares)
—
—

680

2,598

 
 
 
 
 
2,420

4,338

NexRev, LLC (10) (13)
Provider of Energy Efficiency Products & Services
11.00% PIK Secured Debt (Maturity - February 28, 2023)
None
4,383

4,326

3,927

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

1,720

—

 
 
 
 
 
6,046

3,927

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

4,874

4,874

 
 
Preferred Member Units (102 units)
—
—

2,550

2,550

 
 
 
 
 
7,424

7,424

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

10,866

10,988

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

2,000

3,104

 
 
 
 
 
12,866

14,092

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

4,013

4,013

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

158

158

 
 
Preferred Member Units (110 units)
—
—

2,034

2,034

 
 
 
 
 
6,205

6,205

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

2,155

2,220

 
 
Common Stock (154 shares) (16)
—
—

1,164

1,920

 
 
 
 
 
3,319

4,140

 
 
 
 
 
 
 
Subtotal Affiliate Investments (4) (18% of total investments at fair value)
 
 
$
146,959

$
155,573

 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)
Substance Abuse Treatment Service Provider
LIBOR Plus 9.75% (Floor 1.00%), Current Coupon 13.00%, Secured Debt (Maturity - June 30, 2023) (18)
3 month LIBOR
$
14,449

$
14,102

$
6,466

 
 
PRIME Plus 10.00% (Floor 1.00%), Current Coupon 13.25%, Secured Debt (Maturity - March 31, 2021)
PRIME
3,121

2,967

2,887

 
 
 
 
 
17,069

9,353

Adams Publishing Group, LLC (8) (11)
Local Newspaper Operator
LIBOR Plus 7.50% (Floor 1.75%), Current Coupon 9.25%, Secured Debt (Maturity - July 3, 2023)
1 month LIBOR
6,301

6,150

6,053

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 7.00%, Secured Debt (Maturity - July 26, 2023)
1 month LIBOR
15,743

15,775

15,507

Aethon United BR, LP (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - September 8, 2023) (14)
1 month LIBOR
7,000

6,927

6,461

American Nuts, LLC (8) (11)
Roaster, Mixer and Packager of Bulk Nuts and Seeds
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.43%, Secured Debt (Maturity - April 10, 2023)
3 month LIBOR
12,185

11,927

11,600

American Teleconferencing Services, Ltd. (8)
Provider of Audio Conferencing and Video Collaboration Solutions
LIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - June 8, 2023)
3 month LIBOR
14,137

13,760

9,175

American Trailer Rental Group LLC (10) (13)
Provider of Short Term Trailer and Container Rental
Member Units (Milton Meisler Holdings, LLC) (12,139 units)
—
—

2,149

3,264

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

6,304

2,746

Arcus Hunting, LLC (8) (11)
Manufacturer of Bowhunting and Archery Products and Accessories
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.45%, Secured Debt (Maturity - March 31, 2021)
1 month LIBOR
6,712

6,672

6,712

 
 
 
 
 
 
 
ASC Ortho Management Company, LLC (11)
Provider of Orthopedic Services
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.93%, Secured Debt (Maturity - August 31, 2023) (8)
3 month LIBOR
$
5,264

$
5,199

$
4,922

 
 
13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)
None
1,916

1,877

1,856

 
 
 
 
 
7,076

6,778

ATX Networks Corp. (8) (9)
Provider of Radio Frequency Management Equipment
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00% / 1.00% PIK, Current Coupon Plus PIK 8.00%, Secured Debt (Maturity - June 11, 2021)
3 month LIBOR
13,576

13,462

12,422

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

3,382

370

 
 
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

—

 
 
 
 
 
3,779

407

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 12.00%, Secured Debt (Maturity - April 8, 2021) (8)
1 month LIBOR
1,200

1,199

1,172

 
 
Preferred Stock (32,758 units)
—
—

33

35

 
 
Member Units (200,000 units)
—
—

200

53

 
 
 
 
 
1,432

1,260

Berry Aviation, Inc. (11)
Airline Charter Service Operator
10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)
None
4,583

4,534

4,518

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

804

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

135

 
 
 
 
 
6,204

5,457

BigName Commerce, LLC (8) (11)
Provider of Envelopes and Complimentary Stationery Products
LIBOR Plus 7.25% (Floor 1.00%), Current Coupon 4.35% / 4.35% PIK, Current Coupon Plus PIK 8.70%, Secured Debt (Maturity - May 11, 2022)
1 month LIBOR
2,217

2,206

2,121

Binswanger Enterprises, LLC (11)
Glass Repair and Installation Service Provider
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - March 9, 2022) (8)
3 month LIBOR
13,345

13,118

13,118

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

1,050

730

 
 
 
 
 
14,168

13,848

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

11,354

4,272

Boccella Precast Products, LLC (10) (13)
Manufacturer of Precast Hollow Core Concrete
Member Units (540,000 units)
—
—

564

1,495

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

3,735

2,705

 
 
LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.60%)
—
—

9,537

8,769

 
 
 
 
 
13,272

11,474

Buca C, LLC (10) (13)
Casual Restaurant Group
LIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.25%, Secured Debt (Maturity - June 30, 2020) (8)
1 month LIBOR
12,670

12,670

11,403

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

3,040

511

 
 
 
 
 
15,710

11,914

Cadence Aerospace, LLC (8) (11)
Aerospace Manufacturing
LIBOR Plus 2.25% (Floor 1.00%), Current Coupon 3.25% / 5.25% PIK, Current Coupon Plus PIK 9.50%, Secured Debt (Maturity - November 14, 2023)
2 month LIBOR
19,175

19,053

17,526

CAI Software, LLC (10) (13)
Provider of Specialized Enterprise Resource Planning Software
12.50% Secured Debt (Maturity - December 7, 2023)
None
2,286

2,301

2,286

 
 
Member Units (16,742 units)
—
—

188

1,390

 
 
 
 
 
2,489

3,676

Cenveo Corporation
Provider of Digital Marketing Agency Services
LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.50%, Secured Debt (Maturity - June 7, 2023) (8)
3 month LIBOR
$
4,449

$
4,211

$
4,004

 
 
Common Stock (138,889 shares)
—
—

4,163

2,083

 
 
 
 
 
8,374

6,087

Chisholm Energy Holdings, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 6.25% (Floor 1.50%), Current Coupon 7.75%, Secured Debt (Maturity - May 15, 2026) (14)
3 month LIBOR
3,571

3,482

3,279

Clarius BIGS, LLC (11)
Prints & Advertising Film Financing
15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
2,096

1,838

34

 
 
20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)
None
762

669

12

 
 
 
 
 
2,507

46

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

6,309

6,314

 
 
Preferred Member Units (38.52 units)
—
—

1,440

1,440

 
 
 
 
 
7,749

7,754

Clickbooth.com, LLC (8) (11)
Provider of Digital Advertising Performance Marketing Solutions
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.95%, Secured Debt (Maturity - January 31, 2025)
3 month LIBOR
8,407

8,274

8,188

Construction Supply Investments, LLC (11)
Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors
Member Units (87,914 units)
—
—

5,637

7,700

Corel Corporation (8) (9) (12)
Publisher of Desktop and Cloud-Based Software
LIBOR plus 5.00%, (Floor 0.00%), Current Coupon 5.36%, Secured Debt (Maturity - July 2, 2026)
3 month LIBOR
1,987

1,883

1,883

CTVSH, PLLC (8) (11) (13)
Emergency Care and Specialty Service Animal Hospital
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - August 3, 2022)
1 month LIBOR
2,350

2,326

2,317

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 (1,676 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

8,239

8,293

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

10,854

10,695

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

880

904

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

776

1,260

 
 
 
 
 
12,510

12,859

Dynamic Communities, LLC (8) (11)
Developer of Business Events and Online Community Groups
LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 17, 2023)
3 month LIBOR
5,355

5,282

5,012

Epic Y-Grade Services, LP (8)
NGL Transportation & Storage
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - June 13, 2024)
3 month LIBOR
6,875

6,781

5,145

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
14,497

14,400

12,219

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
12,569

12,234

11,638

HDC/HW Intermediate Holdings, LLC (8) (11)
Managed Services and Hosting Provider
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - December 21, 2023)
3 month LIBOR
1,956

1,926

1,774

 
 
 
 
 
 
 
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 8.25%, Secured Debt (Maturity - January 28, 2021)
3 month LIBOR
$
14,469

$
14,251

$
10,997

 
 
LIBOR Plus 7.25% (Floor 0.00%), Current Coupon 7.61%, Secured Debt (Maturity - January 28, 2021)
3 month LIBOR
7,500

7,405

5,700

 
 
 
 
 
21,656

16,697

Hunter Defense Technologies, Inc. (8) (11)
Provider of Military and Commercial Shelters and Systems
LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - March 29, 2023)
3 month LIBOR
17,056

16,851

16,731

HW Temps LLC (10) (13)
Temporary Staffing Solutions
12.00% Secured Debt (Maturity - March 29, 2023)
None
2,500

2,462

2,228

Hydrofarm Holdings, LLC (8) (11)
Wholesaler of Horticultural Products
LIBOR Plus 8.50%, Current Coupon 8.68%, Secured Debt (Maturity - May 12, 2022)
1 month LIBOR
6,908

6,835

5,610

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)
3 month LIBOR
7,463

7,327

6,628

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
11,438

11,346

11,140

Implus Footcare, LLC (8) (11)
Provider of Footwear and Related Accessories
LIBOR Plus 2.50% (Floor 1.00%), Current Coupon 3.50% / PIK 5.25%, Current Coupon Plus PIK 8.75%, Secured Debt (Maturity - April 30, 2024)
3 month LIBOR
17,119

16,820

15,699

Independent Pet Partners Intermediate Holdings, LLC (11)
Omnichannel Retailer of Specialty Pet Products
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.31%, Secured Debt (Maturity - November 19, 2023) (8)
6 month LIBOR
14,922

14,561

12,624

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

1,192

—

 
 
 
 
 
15,753

12,624

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
12,445

12,421

12,445

 
 
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

1,237

 
 
 
 
 
14,847

14,008

Interface Security Systems, L.L.C. (8) (11)
Commercial Security and Alarm Services
LIBOR Plus 7.00% (Floor 1.75%), Current Coupon 8.75% / 3.00% PIK, Current Coupon Plus PIK 11.75%, Secured Debt (Maturity - August 7, 2023)
3 month LIBOR
7,558

7,437

7,558

Intermedia Holdings, Inc. (8)
Unified Communications as a Service
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - July 19, 2025)
1 month LIBOR
3,498

3,471

3,434

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
9,538

9,445

8,995

Isagenix International, LLC (8)
Direct Marketer of Health and Wellness Products
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - June 14, 2025)
3 month LIBOR
5,777

5,733

2,302

Jackmont Hospitality, Inc. (8) (11)
Franchisee of Casual Dining Restaurants
LIBOR Plus 6.75% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - May 26, 2021)
1 month LIBOR
8,013

8,009

6,563

Joerns Healthcare, LLC
Manufacturer and Distributor of Health Care Equipment & Supplies
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - August 21, 2024) (8)
3 month LIBOR
3,335

3,286

3,142

 
 
Common Stock (392,514 shares)
—
—

3,678

2,060

 
 
 
 
 
6,964

5,202

Kemp Technologies Inc. (8) (11)
Provider of Application Delivery Controllers
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - March 29, 2024)
3 month LIBOR
7,425

7,302

7,135

Knight Energy Services LLC (11)
Oil and Gas Equipment and Services
8.50% PIK Secured Debt (Maturity - February 9, 2024)
None
864

864

744

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

1,843

160

 
 
 
 
 
2,707

904

Kore Wireless Group, Inc.
Mission Critical Software Platform
LIBOR Plus 5.50% (Floor 1.00%), Current Coupon 5.81%, Secured Debt (Maturity - December 20, 2024) (8)
3 month LIBOR
$
6,030

$
6,008

$
5,653

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

3,704

1,988

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

601

601

 
 
 
 
 
4,305

2,589

Laredo Energy VI, LP (11)
Oil & Gas Exploration & Production
Member Units (1,155,952 units)
—
—

11,560

11,560

Lightbox Holdings, L.P. (8)
Provider of Commercial Real Estate Software
LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 5.18%, Secured Debt (Maturity - May 9, 2026)
1 month LIBOR
4,950

4,884

4,579

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
13,650

13,537

12,981

Logix Acquisition Company, LLC (8) (11)
Competitive Local Exchange Carrier
LIBOR Plus 5.75% (Floor 1.00%), Current Coupon 6.75%, Secured Debt (Maturity - December 22, 2024) (23)
1 month LIBOR
12,688

12,621

10,721

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
12,872

12,816

10,983

Lulu’s Fashion Lounge, LLC (8) (11)
Fast Fashion E-Commerce Retailer
LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.07% / 2.50% PIK, Current Coupon Plus PIK 12.57%, Secured Debt (Maturity - August 28, 2022)
3 month LIBOR
5,677

5,568

4,854

Lynx FBO Operating LLC (11)
Fixed Based Operator in the General Aviation Industry
LIBOR Plus 5.75%, (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - September 30, 2024) (8)
3 month LIBOR
13,681

13,409

12,683

 
 
Member Units (3,704 units)
—
—

500

445

 
 
 
 
 
13,909

13,128

Mac Lean-Fogg Company (11)
Manufacturer and Supplier for Auto and Power Markets
LIBOR Plus 5.00% (Floor 0.00%), Current Coupon 5.00%, Secured Debt (Maturity - December 22, 2025) (8)
1 month LIBOR
7,099

7,051

6,488

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

785

784

 
 
 
 
 
7,836

7,272

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

22,207

14,466

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
13,964

13,658

12,428

NinjaTrader, LLC (8) (11)
Operator of Futures Trading Platform
LIBOR Plus 6.00% (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity - December 18, 2024)
3 month LIBOR
9,125

8,956

8,879

NNE Partners, LLC (8) (11)
Oil & Gas Exploration & Production
LIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 8.34%, Secured Debt (Maturity - March 2, 2022)
3 month LIBOR
20,417

20,346

18,048

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)
3 month LIBOR
14,746

14,537

14,462

NTM Acquisition Corp. (8)
Provider of B2B Travel Information Content
LIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.25%, Secured Debt (Maturity - June 7, 2022)
3 month LIBOR
4,438

4,418

3,995

Pasha Group (8)
Diversified Logistics and Transportation Provided
LIBOR Plus 7.50% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - January 26, 2023)
2 month LIBOR
8,008

7,846

7,407

Permian Holdco 2, Inc.
Storage Tank Manufacturer
14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)
None
1,220

1,220

232

 
 
18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)
None
868

868

868

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

1,997

—

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

—

—

 
 
 
 
 
4,085

1,100

PricewaterhouseCoopers Public Sector LLP (8)
Provider of Consulting Services to Governments
LIBOR Plus 8.00% (Floor 0.00%), Current Coupon 8.18%, Secured Debt (Maturity - May 1, 2026) (14)
1 month LIBOR
$
14,100

$
14,060

$
12,902

Rise Broadband (8) (11)
Fixed Wireless Broadband Provider
LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 8.17%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
14,700

14,607

14,186

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

31

9

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

284

—

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

—

—

 
 
 
 
 
315

9

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

6,542

5,876

Slick Software Holdings LLC (10) (13)
Text Messaging Marketing Platform
14.00% Secured Debt (Maturity - September 13, 2023)
—
1,570

1,338

1,338

 
 
Member units (17,500 units)
—
—

175

282

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

45

75

 
 
 
 
 
1,558

1,695

TEAM Public Choices, LLC (8) (11)
Home-Based Care Employment Service Provider
LIBOR Plus 6.00%, (Floor 1.50%), Current Coupon 7.50%, Secured Debt (Maturity - September 20, 2024)
1 month LIBOR
9,927

9,840

9,490

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 9.50%, Secured Debt (Maturity - September 25, 2025) (14)
3 month LIBOR
5,000

5,000

4,475

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
16,716

16,426

15,379

U.S. Telepacific Corp. (8)
Provider of Communications and Managed Services
LIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.07%, Secured Debt (Maturity - May 2, 2023)
3 month LIBOR
12,500

12,328

10,036

Vida Capital, Inc. (8)
Alternative Asset Manager
LIBOR Plus 6.00% (Floor 0.00%), Current Coupon 6.76%, Secured Debt (Maturity - October 1, 2026)
3 month LIBOR
7,369

7,268

7,350

VIP Cinema Holdings, Inc. (8)
Supplier of Luxury Seating to the Cinema Industry
PRIME Plus 7.00% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity - March 1, 2023) (18)
PRIME
8,750

8,724

—

 
 
LIBOR Plus 7.00% (Floor 2.00%), Current Coupon 10.25%, Secured Debt (Maturity - May 18, 2020)
3 month LIBOR
864

797

707

 
 
 
 
 
9,521

707

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
4,596

4,458

4,462

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

—

1,620

 
 
Preferred Stock (70,207 shares)
—
—

767

1,600

 
 
 
 
 
5,225

7,682

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

2,436

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

1,104

—

 
 
 
 
 
15,915

10,807

 
 
 
 
 
 
 
Wireless Vision Holdings, LLC (8) (11)
Provider of Wireless Telecommunications Carrier Services
LIBOR Plus 9.86% (Floor 1.00%), Current Coupon 11.86% / 1.00% PIK, Current Coupon Plus PIK 12.86%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
$
6,883

$
6,756

$
6,883

 
 
LIBOR Plus 9.91% (Floor 1.00%), Current Coupon 11.91% / 1.00% PIK, Current Coupon Plus PIK 12.91%, Secured Debt (Maturity - September 29, 2022) (23)
1 month LIBOR
5,982

5,815

5,982

 
 
 
 
 
12,571

12,865

YS Garments, LLC (8)
Designer and Provider of Branded Activewear
LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.31%, Secured Debt (Maturity - August 9, 2024)
1 month LIBOR
7,092

7,039

6,489

Subtotal Non-Control/Non-Affiliate Investments (5) (79% of total portfolio investments at fair value)
 
 
$
794,494

$
687,521

Total Portfolio Investments
 
 
 
 
$
959,739

$
877,578

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

$
8,833

$
8,833

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

15,252

15,252

Total Short Term Investments
 
 
 
 
$
24,085

$
24,085


(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 June 30, 2020 along with transactions during the six months ended June 30, 2020 in these affiliated investments were as follows (in thousands):
 
 
 
Six Months Ended June 30, 2020
 
 
 
Six Months Ended June 30, 2020
Portfolio Company
Fair Value at December 31, 2019
 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 
Net Unrealized Gain (Loss) ***
 
Fair Value at June 30, 2020
 
Net Realized Gain (Loss)
Interest Income
Fee Income
Dividend Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AFG Capital Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
$
209

 
$
—

 
$
(43
)
 
$
—

 
$
166

 
$
—

$
9

$
—

$
—

Member units
1,295

 
—

 
—

 
(3
)
 
1,292

 
—

—

—

—

Analytical Systems Keco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
1,266

 
6

 
(67
)
 
(1
)
 
1,204

 
—

88

—

—

Preferred member units
800

 
—

 
—

 
173

 
973

 
—

—

—

—

Warrants
79

 
—

 
(1
)
 
49

 
127

 
—

—

—

—

Brewer Crane Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
2,233

 
4

 
(61
)
 
—

 
2,176

 
—

132

—

—

Preferred member units
1,070

 
—

 
—

 
—

 
1,070

 
—

—

—

13

Centre Technologies Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
3,008

 
7

 
(78
)
 
—

 
2,937

 
—

189

—

—

Preferred member units
1,460

 
—

 
—

 
—

 
1,460

 
—

—

15

—

Chamberlin Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term loan
4,443

 
10

 
—

 
(10
)
 
4,443

 
—

270

—

—

Member units
6,009

 
—

 
—

 
28

 
6,037

 
—

—

30

341

Member units
363

 
—

 
—

 
(133
)
 
230

 
—

—

—

8

Charlotte Russe, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
—

 
—

 
—

 
—

 
—

 
—

—

—

—

Charps, LLC