UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________
 FORM 10-Q
(Mark One) 
þQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 20182019
OR
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from               to
 
Commission file number: 814-00939
________________
HMS Income Fund, Inc.
(Exact Name of Registrant as Specified in its Charter)
Maryland
(State or Other Jurisdiction of Incorporation or Organization)
45-3999996
(I.R.S. Employer Identification No.)
  
2800 Post Oak Boulevard, Suite 5000
Houston, Texas
(Address of Principal Executive Offices)
77056-6118
(Zip Code)
 
(888) 220-6121
(Registrant’s telephone number, including area code)

Not applicable
(Former name, former address and formal fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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
(Do not check if a smaller
reporting company)

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 79,755,48379,071,514 shares of common stock outstanding as of May 14, 2018.13, 2019.



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


PART I — FINANCIAL INFORMATION

Item 1.    Condensed Consolidated Financial Statements

HMS Income Fund, Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except share and per share amounts)
March 31, 2018 December 31, 2017March 31, 2019 December 31, 2018
(Unaudited)  (Unaudited)  
ASSETS      
Portfolio investments at fair value:      
Non-Control/Non-Affiliate investments (amortized cost: $925,303 and $948,029 as of March 31, 2018 and December 31, 2017, respectively)$909,632
 $922,898
Affiliate investments (amortized cost: $102,111 and $71,708 as of March 31, 2018 and December 31, 2017, respectively)107,777
 76,862
Control investments (amortized cost: $44,495 and $44,592 as of March 31, 2018 and December 31, 2017, respectively)50,232
 49,679
Total portfolio investments (amortized cost: $1,071,909 and $1,064,329 as of March 31, 2018 and December 31, 2017, respectively)1,067,641
 1,049,439
Non-Control/Non-Affiliate investments (amortized cost: $929,741 and $932,495 as of March 31, 2019 and December 31, 2018, respectively)$902,841
 $901,518
Affiliate investments (amortized cost: $140,763 and $143,372 as of March 31, 2019 and December 31, 2018, respectively)151,053
 149,323
Control investments (amortized cost: $42,946 and $45,821 as of March 31, 2019 and December 31, 2018, respectively)56,234
 55,727
Total portfolio investments (amortized cost: $1,113,450 and $1,121,688 as of March 31, 2019 and December 31, 2018, respectively)1,110,128
 1,106,568
      
Cash and cash equivalents24,469
 45,791
18,313
 21,757
Interest receivable7,722
 8,638
8,256
 9,292
Receivable for securities sold28,628
 4,959
809
 918
Prepaid and other assets2,199
 4,072
4,318
 4,038
Deferred financing costs (net of accumulated amortization of $642 and $309 as of March 31, 2018 and December 31, 2017, respectively)5,829
 6,163
Deferred financing costs (net of accumulated amortization of $1,979 and $1,642 as of March 31, 2019 and December 31, 2018, respectively)4,527
 4,857
Total assets$1,136,488
 $1,119,062
$1,146,351
 $1,147,430
      
LIABILITIES 
  
 
  
Accounts payable and other liabilities$1,507
 $1,459
$2,192
 $2,456
Stockholder distributions payable4,757
 4,772
4,673
 4,676
Base management fees payable5,694
 5,682
Base management and incentive fees payable7,125
 5,854
Due to affiliates51
 59
105
 57
Directors’ fees payable15
 17
26
 21
Payable for securities purchased19,398
 29,284
1,837
 
Credit facilities payable458,000
 430,000
500,000
 509,000
Total liabilities489,422
 471,273
515,958
 522,064
      
Commitments and Contingencies (Note 12)      
      
NET ASSETS 
  
 
  
Common stock, $.001 par value; 150,000,000 shares authorized, 79,201,065 and 79,511,731 issued and outstanding as of March 31, 2018 and December 31, 2017, respectively79
 80
Common stock, $.001 par value; 150,000,000 shares authorized, 78,547,196 and 78,584,824 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively79
 79
Additional paid-in capital683,119
 685,593
678,219
 678,627
Accumulated distributions in excess of net investment income(31,511) (22,660)
Net unrealized depreciation on investments(4,621) (15,224)
Total accumulated earnings (loss)(47,905) (53,340)
Total net assets647,066
 647,789
630,393
 625,366
      
Total liabilities and net assets$1,136,488
 $1,119,062
$1,146,351
 $1,147,430
      
Net asset value per share$8.17
 $8.15
$8.03
 $7.96

See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc.
Condensed Consolidated Statements of Operations
(dollars in thousands, except share and per share amounts)
(Unaudited) 
Three Months Ended Three Months Ended
March 31, 2018 March 31, 2017 March 31, 2019 March 31, 2018
INVESTMENT INCOME: 
  
  
  
From non-control/non-affiliate investments:       
Interest income$22,909
 $22,543
 $23,499
 $20,257
Fee income268
 710
 307
 268
Dividend income303
 202
 327
 303
From affiliate investments:       
Interest income1,764
 963
 2,602
 1,764
Fee income49
 54
 37
 49
Dividend income475
 426
 396
 475
From control investments:       
Interest income156
 168
 123
 156
Fee income17
 21
 17
 17
Dividend income695
 277
 1,853
 695
Total interest, fee and dividend income26,636
 25,364
Total investment income 29,161
 23,984
EXPENSES: 
  
  
  
Interest expense5,128
 3,995
 7,107
 5,128
Base management and incentive fees5,709
 6,645
 7,125
 5,694
Internal administrative services expenses804
 661
 758
 804
Offering costs103
 390
 95
 103
Professional fees268
 264
 316
 268
Insurance48
 48
 48
 48
Other general and administrative443
 327
 516
 443
Expenses before fee and expense waivers12,503
 12,330
 15,965
 12,488
Waiver of incentive fees(15) (1,495) 
 
Waiver of internal administrative services expenses(804) (661) (758) (804)
Total expenses, net of fee and expense waivers11,684
 10,174
 15,207
 11,684
Net investment income before taxes14,952
 15,190
 13,954
 12,300
Income tax expense (benefit), including excise tax102
 48
Income tax expense, including excise tax 58
 102
NET INVESTMENT INCOME14,850
 15,142
 13,896
 12,198
NET REALIZED GAIN (LOSS) ON INVESTMENTS 
  
  
  
Non-Control/Non-Affiliate investments(10,809) 2,640
 (1,631) (8,157)
Affiliate investments912
 
 (5,508) 912
Control investments
 
 
 
Total realized gain (loss) on investments(9,897) 2,640
Total net realized loss on investments (7,139) (7,245)
NET REALIZED INCOME4,953
 17,782
 6,757
 4,953
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 
  
  
  
Non-Control/Non-Affiliate investments9,463
 (5,569) 4,331
 9,463
Affiliate investments492
 1,060
 3,626
 492
Control investments649
 (7) 4,106
 649
Total net change in unrealized appreciation (depreciation) on investments10,604
 (4,516)
Total net change in unrealized appreciation on investments 12,063
 10,604
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$15,557
 $13,266
 $18,820
 $15,557
PER SHARE INFORMATION - BASIC AND DILUTED       
NET INVESTMENT INCOME PER SHARE$0.19
 $0.20
 $0.18
 $0.15
NET REALIZED INCOME PER SHARE$0.06
 $0.24
 $0.09
 $0.06
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE)$0.19
 $0.18
DISTRIBUTIONS DECLARED PER SHARE$0.17
 $0.17
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE (EARNINGS PER SHARE) $0.24
 $0.19
WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC AND DILUTED79,846,665
 74,853,781
 78,819,746
 79,846,665

See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc.
Condensed Consolidated Statements of Changes in Net Assets
(dollars in thousands, except number of shares)share and per share amounts)
(Unaudited) 
 Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Three Months Ended March 31, 2019 Three Months Ended March 31, 2018
Change in Net Assets from Operations:        
Net investment income $14,850
 $15,142
 $13,896
 $12,198
Net realized gain (loss) on investments (9,897) 2,640
Net change in unrealized appreciation (depreciation) on investments 10,604
 (4,516)
Net realized loss on investments (7,139) (7,245)
Net change in unrealized appreciation on investments 12,063
 10,604
Net increase in net assets resulting from operations 15,557
 13,266
 18,820
 15,557
        
Change in Net Assets from Stockholders’ Distributions:        
Distributions from net investment income (13,803) (10,282)
Distributions from net realized gain on investments 
 (2,640)
Net decrease in net assets resulting from stockholders’ distributions (13,803) (12,922) (13,606) (13,803)
        
Change in Net Assets from Capital Share Transactions:        
Issuance of common stock, net of issuance costs 
 17,569
Reinvestment of stockholder distributions 6,929
 6,618
 6,366
 6,929
Repurchase of common stock (9,406) (5,055) (6,553) (9,406)
Net increase (decrease) in net assets resulting from capital share transactions (2,477) 19,132
Net decrease in net assets resulting from capital share transactions (187) (2,477)
        
Total Increase (Decrease) in Net Assets (723) 19,476
 5,027
 (723)
Net Assets at beginning of the period 647,789
 597,833
 625,366
 647,789
Net Assets at end of the period $647,066
 $617,309
 $630,393
 $647,066
        
NAV per share at end of the period $8.17
 $8.16
 $8.03
 $8.17
Distributions declared per share $0.17
 $0.17
        
Common shares outstanding, beginning of the period 79,511,731
 73,382,971
 78,584,824
 79,511,731
Issuance of common shares 
 2,103,257
Issuance of common shares pursuant to distribution reinvestment plan 836,401
 796,659
 782,543
 836,401
Repurchase of common shares (1,147,067) (614,180) (820,171) (1,147,067)
Common shares outstanding, end of the period 79,201,065
 75,668,707
 78,547,196
 79,201,065

See notes to the condensed consolidated financial statements.



HMS Income Fund, Inc.
Condensed Consolidated Statements of Cash Flows
(dollars in thousands)
(Unaudited) 
Three Months Ended 
 March 31, 2018
 Three Months Ended 
 March 31, 2017
Three Months Ended 
 March 31, 2019
 Three Months Ended 
 March 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES 
  
 
  
Net increase in net assets resulting from operations$15,557
 $13,266
$18,820
 $15,557
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:   
Adjustments to reconcile net increase in net assets resulting from operations to net cash generated from (used in) operating activities:   
Principal repayments received and proceeds from sales of investments in portfolio companies133,039
 137,798
39,036
 133,039
Investments in portfolio companies(181,813) (110,916)(34,152) (181,813)
Net change in unrealized (appreciation) depreciation on portfolio investments(10,604) 4,516
Net realized (gain) loss on sale of portfolio investments9,897
 (2,640)
Net change in unrealized (appreciation) on portfolio investments(12,063) (10,604)
Net realized loss on sale of portfolio investments7,139
 7,245
Amortization of deferred financing costs334
 387
337
 334
Amortization of deferred offering costs103
 390
95
 103
Accretion of unearned income(4,819) (4,091)(1,562) (2,167)
Net payment-in-kind interest accrual(212) (320)(1,169) (212)
Changes in other assets and liabilities:   
   
Interest receivable916
 (289)1,036
 916
Prepaid and other assets4,647
 610
518
 4,647
Base management fees payable12
 95
Base management and incentive fees payable1,271
 12
Due to affiliates(8) 15
48
 (8)
Directors’ fees payable(2) 3
5
 (2)
Accounts payable and other liabilities29
 277
88
 29
Payable for unsettled trades
 126
Net cash generated from (used in) operating activities(32,924) 39,227
19,447
 (32,924)
      
CASH FLOWS FROM FINANCING ACTIVITIES 
  
 
  
Proceeds from issuance of common stock
 19,187
Redemption of common stock(9,406) (5,055)(6,553) (9,406)
Payment of selling commissions and dealer manager fees
 (1,555)
Payment of offering costs(103) (375)(95) (103)
Payment of stockholder distributions(6,889) (6,158)(7,243) (6,889)
Repayments on credit facilities payable(100,000) (165,000)(31,000) (100,000)
Proceeds from credit facilities payable128,000
 138,000
22,000
 128,000
Payment of deferred financing costs
 (556)
Net cash generated from (used in) financing activities11,602
 (21,512)(22,891) 11,602
      
Net increase (decrease) in cash and cash equivalents(21,322) 17,715
Net decrease in cash and cash equivalents(3,444) (21,322)
      
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD45,791
 23,719
21,757
 45,791
      
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD$24,469
 $41,434
$18,313
 $24,469
 
See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc.
Consolidated Schedule of Investments
HMS Income Fund, Inc.
Consolidated Schedule of Investments
HMS Income Fund, Inc.
Consolidated Schedule of Investments
As of March 31, 2018
As of March 31, 2019As of March 31, 2019
(dollars in thousands)
Portfolio Company (1) (3)Business DescriptionType of Investment (2) (3)Index Rate (22)Principal (7)Cost (7)Fair Value (26)Business DescriptionType of Investment (2) (3)Index Rate (22)Principal (7)Cost (7)Fair Value (26)
    
Control Investments (6)
Copper Trail Energy Fund I, LP (9)(15)(16)Investment PartnershipLP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%)$
$2,500
$2,500
GRT Rubber Technologies, LLC (8) (10) (13)Manufacturer of Engineered Rubber ProductsLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.66%, Secured Debt (Maturity - December 19, 2019)1 month LIBOR5,612
5,560
5,612
CTMH, LP (9) (15)Investment PartnershipLP Interests (CTMH, LP) (Fully diluted 38.8%)$
$872
$872
GRT Rubber Technologies, LLC (10) (13)Manufacturer of Engineered Rubber ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - December 31, 2023) (8)1 month LIBOR5,663
5,639
5,663
 Member Units (2,896 units)
6,435
11,535
 Member Units (2,896 units) (16)
6,435
20,337
  11,995
17,147
  12,074
26,000
HMS-ORIX SLF LLC (9) (15)Investment PartnershipMembership Interests (Fully diluted 60.00%) (16)
30,000
30,585
Investment PartnershipMembership Interests (Fully diluted 60.00%) (16)
30,000
29,362
    
Subtotal Control Investments (6) (5% of total investments at fair value)Subtotal Control Investments (6) (5% of total investments at fair value)  $44,495
$50,232
Subtotal Control Investments (6) (5% of total investments at fair value)  $42,946
$56,234
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)Provider of Rent-to-Own Financing Solutions and ServicesMember Units (46 units) (16)$
$300
$940
Provider of Rent-to-Own Financing Solutions and ServicesMember Units (46 units) (16)$
$300
$1,092
 Warrants (10 equivalent units, Expiration - November 7, 2024)
65
225
 Warrants (10 equivalent units, Expiration - November 7, 2024)
65
260
  365
1,165
  365
1,352
Brewer Crane Holdings, LLC (8) (10) (13)Provider of Crane Rental and Operating ServicesLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.66%, Secured Debt (Maturity - January 9, 2023)1 month LIBOR2,478
2,433
2,433
Brewer Crane Holdings, LLC (10) (13)Provider of Crane Rental and Operating ServicesLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.10%, Secured Debt (Maturity - January 9, 2023) (8)1 month LIBOR2,356
2,319
2,319
 Preferred Member Units (737 units)
1,070
1,070
 Preferred Member Units (737 units) (16)
1,070
1,070
  3,503
3,503
  3,389
3,389
Chamberlin HoldCo, LLC (8) (10) (13)Roofing and waterproofing specialty subcontractorLIBOR plus 10.00% (Floor 1.00%), Current Coupon 12.13%, (Maturity - February 23, 2023)3 month LIBOR5,400
5,267
5,267
Centre Technologies Holdings, LLC (10) (13)Provider of IT Hardware Services and Software SolutionsLIBOR Plus 9.00% (Floor 2.00%), Current Coupon 11.50%, Secured Debt (Maturity - January 4, 2024) (8)1 month LIBOR3,060
2,995
3,001
 Preferred Member Units (3,174 units)
1,460
1,460
  4,455
4,461
Chamberlin HoldCo, LLC (10) (13)Roofing and waterproofing specialty subcontractorLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.75%, Secured Debt (Maturity - February 23, 2023) (8)1 month LIBOR5,051
4,938
4,938
 Member Units (1,087 units) (16)
2,860
5,280
 Member Units (1,087 units)
2,860
2,860
 Member Units (Chamberlin Langfield Real Estate, LLC) (1 unit)
183
183
  8,127
8,127
  7,981
10,401
Charlotte Russe, Inc.Fast-Fashion Retailer to Young Women8.50% Secured Debt (Maturity - February 2, 2023)None6,285
6,285
6,222
Fast-Fashion Retailer to Young WomenCommon Stock (14,973 shares)
2,470

 Common Stock (14,973 shares)
2,470
2,470
  8,755
8,692
Charps, LLC (10) (13)Pipeline Maintenance and Construction12.00% Secured Debt (Maturity - January 31, 2022)None4,200
4,111
4,113
Pipeline Maintenance and Construction11.50% Secured Debt (Maturity - February 3, 2022)None2,808
2,763
2,808
 Preferred Member Units (400 units)
100
297
 Preferred Member Units (400 units) (16)
100
938
  4,211
4,410
  2,863
3,746
Clad-Rex Steel, LLC (10) (13)Specialty Manufacturer of Vinyl-Clad MetalLIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.16%, Secured Debt (Maturity - December 20, 2021) (8)1 month LIBOR3,320
3,266
3,320
Specialty Manufacturer of Vinyl-Clad MetalLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - December 20, 2021) (8)1 month LIBOR3,020
2,982
3,020
 Member Units (179 units) (16)
1,820
2,444
 Member Units (179 units) (16)
1,820
2,653
 10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)None289
286
286
 Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)
53
88
  5,141
6,047
Copper Trail Energy Fund I, LP (9) (15)Investment PartnershipLP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 12.4%)
3,306
3,930
Digital Products Holdings LLC (10) (13)Designer and Distributor of Consumer ElectronicsLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.50%, Secured Debt (Maturity - March 31, 2023) (8)1 month LIBOR6,352
6,243
6,243
 10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)None295
292
292
 Preferred Member Units (863 units) (16)
2,116
1,991
 Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)
53
70
  8,359
8,234
  5,431
6,126
  
Direct Marketing Solutions, Inc. (10) (13)Provider of Omni-Channel Direct Marketing ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.75%, (Maturity - February 13, 2023) (8)3 month LIBOR4,680
4,555
4,565
Provider of Omni-Channel Direct Marketing ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.50%, Secured Debt (Maturity - February 13, 2023) (8)1 month LIBOR$4,445
$4,342
$4,350
 Preferred Stock (2,100 shares)
2,100
2,100
 Preferred Stock (2,100 shares)
2,100
4,038
  6,655
6,665
  6,442
8,388
Freeport Financial Funds (9) (15)Investment PartnershipLP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.60%) (16)
8,558
8,506
Investment PartnershipLP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.0%) (16)
9,756
9,581
Gamber-Johnson Holdings, LLC (10) (13)Manufacturer of Ruggedized Computer Mounting SystemsLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.66%, Secured Debt (Maturity - June 24, 2021) (8)1 month LIBOR5,727
5,635
5,727
Manufacturer of Ruggedized Computer Mounting SystemsLIBOR Plus 7.50% (Floor 2.00%), Current Coupon 9.99%, Secured Debt (Maturity - June 24, 2021) (8)1 month LIBOR5,155
5,089
5,155
 Member Units (2,155 units) (16)
3,711
6,633
 Member Units (2,155 units) (16)
3,711
11,365
  9,346
12,360
  8,800
16,520
  
  
Guerdon Modular Holdings, Inc. (10) (13)Multi-Family and Commercial Modular Construction Company13.00% Secured Debt (Maturity - March 1, 2019)None$2,777
$2,747
$2,760
Multi-Family and Commercial Modular Construction Company13.00% Secured Debt (Maturity - March 31, 2019)None3,147
3,129
3,005
 LIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity - March 1, 2019)3 month LIBOR70
68
70
 Common Stock (53,008 shares)
746

 Common Stock (53,008 shares)
746

 Class B Preferred Stock (101,250 shares)
285

 Class B Preferred Stock (101,250 shares)
285

  3,846
2,830
  4,160
3,005
Gulf Publishing Holdings, LLC (10) (13)Energy Focused Media and Publishing12.50% Secured Debt (Maturity - April 29, 2021)None3,175
3,129
3,129
Energy Industry Focused Media and Publishing12.50% Secured Debt (Maturity - April 29, 2021)None3,134
3,102
3,102
 Member Units (781 shares)
920
1,210
 LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 11.99%, Secured Debt (Maturity - September 30, 2020) (8)1 month LIBOR20
20
20
  4,049
4,339
 Member Units (920 units)
920
1,082
Harris Preston Fund Investments (15) (16)Investment PartnershipLP Interests (HPEP 3, LP) (Fully diluted 9.60%) (9)
1,033
1,033
  4,042
4,204
Harris Preston Fund Investments (9) (15) (16)Investment PartnershipLP Interests (HPEP 3, LP) (Fully diluted 8.2%)
1,971
1,971
 LP Interests (2717 MH, LP) (Fully diluted 7.00%)
536
536
 LP Interests (2717 MH, LP) (Fully diluted 49.3%)
2,235
2,328
  1,569
1,569
  4,206
4,299
Hawk Ridge Systems, LLC (9) (10) (13)Value-Added Reseller of Engineering Design and Manufacturing Solutions10.50% Secured Debt (Maturity - December 2, 2021)None3,575
3,516
3,575
Value-Added Reseller of Engineering Design and Manufacturing Solutions10.00% Secured Debt (Maturity - December 2, 2021)None3,350
3,309
3,350
 Preferred Member Units (56 units) (16)
713
1,555
 Preferred Member Units (56 units) (16)
713
1,815
 Preferred Member Units (HRS Services, ULC) (56 units) (16)
38
83
 Preferred Member Units (HRS Services, ULC) (56 units) (16)
38
95
  4,267
5,213
  4,060
5,260
HW Temps LLC (8) (10) (13)Temporary Staffing SolutionsLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.66%, Secured Debt (Maturity - July 2, 2020)1 month LIBOR2,493
2,458
2,458
KMC Investor, LLC (10) (13)Precision Metal Parts Manufacturing11.50% Secured Debt (Maturity - October 31, 2023) (8)None7,000
6,796
6,803
 9.00% Secured Debt (Maturity October 31, 2048)None1,000
990
990
 Member Units (145 units)
248
248
 Preferred Member Units (800 units) (16)
986
985
 Member Units (KMC RE Investor, LLC) (200 units) (16)
3,060
3,060
  3,444
3,443
  11,094
11,101
Market Force Information, Inc. (10) (13)Provider of Customer Experience Management ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.01%, Secured Debt (Maturity - July 28, 2022) (8)3 month LIBOR5,720
5,620
5,620
Provider of Customer Experience Management ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.63%, Secured Debt (Maturity - July 28, 2022) (8)3 month LIBOR5,700
5,622
5,622
 Member Units (170,000 units)
3,675
3,675
 LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.63%, Secured Debt (Maturity - July 28, 2022) (8)3 month LIBOR140
140
140
  9,295
9,295
 Member Units (170,000 units)
3,675
2,797
  9,437
8,559
M.H. Corbin Holding LLC (10) (13)Manufacturer and Distributor of Traffic Safety Products10.00% Secured Debt (Maturity - August 31, 2020)None3,106
3,057
3,057
Manufacturer and Distributor of Traffic Safety Products5.00% Current / 5.00% PIK Secured Debt (Maturity - March 15, 2022)None2,135
2,107
2,135
 Preferred Member Units (16,500 units)
1,100
1,192
 Common Units (1,000 units)
1,500
5
 Preferred Member Units (1,000 units)
1,500
1,500
  4,707
3,332
  4,557
4,557
  
Mystic Logistics Holdings, LLC (10) (13)Logistics and Distribution Services Provider for Large Volume Mailers12.00% Secured Debt (Maturity - August 15, 2019)None1,890
1,866
1,868
Logistics and Distribution Services Provider for Large Volume Mailers12.00% Secured Debt (Maturity - August 15, 2019)None$1,877
$1,868
$1,872
 Common Stock (1,468 shares) (16)
680
1,512
 Common Stock (1,468 shares)
680
178
  2,546
3,380
  2,548
2,050
NexRev, LLC (10) (13)Provider of Energy Efficiency Products & Services11.00% Secured Debt (Maturity - February 28, 2023)None4,360
4,264
4,274
Provider of Energy Efficiency Products & Services11.00% Secured Debt (Maturity - February 28, 2023)None4,359
4,280
4,288
 Preferred Member Units (21,600,000 units)
1,720
1,720
 Preferred Member Units (21,600,000 units)
1,720
1,720
  5,984
5,994
  6,000
6,008
NuStep, LLC (10) (13)Designer, Manufacturer and Distributor of Fitness Equipment12.00% Secured Debt (Maturity - January 31, 2022)None5,150
5,053
5,054
Designer, Manufacturer and Distributor of Fitness Equipment12.00% Secured Debt (Maturity - January 31, 2022)None5,150
5,078
5,079
 Preferred Member Units (102 units)
2,550
2,549
 Preferred Member Units (102 units)
2,550
2,550
  7,603
7,603
  7,628
7,629
SI East, LLC (10) (13)Rigid Industrial Packaging Manufacturing10.25% Secured Debt (Maturity - August 31, 2023)None11,750
11,579
11,582
    Preferred Member Units (52 units)
2,000
2,000
Subtotal Affiliate Investments (4) (10% of total investments at fair value)  $102,111
$107,777
  13,579
13,582
Tedder Acquisition, LLC (10) (13)Manufacturer of Firearm Holsters and Accessories12.00% Secured Debt (Maturity - August 31, 2023)None4,100
3,988
3,988
 12.00% Secured Debt (Maturity - August 31, 2020)None120
118
118
 Preferred Member Units (110 units)
1,869
1,869
  5,975
5,975
  
Subtotal Affiliate Investments (4) (13% of total investments at fair value)Subtotal Affiliate Investments (4) (13% of total investments at fair value)  $140,763
$151,053
    
Non-Control/Non-Affiliate Investments (5)
AAC Holdings Inc. (8)Substance Abuse Treatment Service ProviderLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - June 30, 2023)3 month LIBOR$14,782
$14,488
$15,041
Substance Abuse Treatment Service ProviderLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - June 30, 2023)3 month LIBOR$14,405
$14,017
$13,325
 LIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.49%, Secured Debt (Maturity - March 31, 2020) (12)3 month LIBOR1,855
1,683
1,837
  15,700
15,162
Adams Publishing Group, LLC (8) (11)Local Newspaper OperatorLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - November 3, 2020)3 month LIBOR9,894
9,702
9,894
Local Newspaper OperatorLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 10.30%, Secured Debt (Maturity - July 3, 2023)3 month LIBOR7,718
7,567
7,577
 PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 3, 2023)PRIME5,000
4,915
4,915
  12,482
12,492
ADS Tactical, Inc. (8) (11)Value-Added Logistics and Supply Chain Solutions Provider to the Defense IndustryLIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.38%, Secured Debt (Maturity - December 31, 2022)1 month LIBOR$12,948
$12,651
$12,778
Value-Added Logistics and Supply Chain Solutions Provider to the Defense IndustryLIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.75%, Secured Debt (Maturity - July 26, 2023)1 month LIBOR16,374
16,296
16,374
Aethon United BR, LP (8) (11)Oil & Gas Exploration & ProductionLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.46%, Secured Debt (Maturity - September 8, 2023) (14)1 month LIBOR3,438
3,390
3,390
Oil & Gas Exploration & ProductionLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - September 8, 2023) (14)1 month LIBOR4,063
4,013
4,063
Ahead, LLC (8) (11)IT Infrastructure Value Added ResellerLIBOR Plus 6.50%, Current Coupon 8.81%, Secured Debt (Maturity - November 2, 2020)3 month LIBOR5,623
5,523
5,658
Allen Media, LLC (8)Operator of Cable Television NetworksLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - August 30, 2023)3 month LIBOR16,928
16,480
16,442
Allflex Holdings III Inc. (8)Manufacturer of Livestock Identification ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - July 19, 2021) (14)3 month LIBOR13,964
14,054
14,055
Manufacturer of Livestock Identification ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - July 19, 2021) (14)1 month LIBOR13,232
13,321
13,232
American Nuts, LLC (8) (11)Roaster, Mixer and Packager of Bulk Nuts and SeedsLIBOR Plus 9.50% (Floor 1.00%), Current Coupon 12.30%, Secured Debt (Maturity - April 10, 2023)3 month LIBOR12,291
12,056
11,931
American Scaffold Holdings, Inc. (8) (11)Marine Scaffolding Service ProviderLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.80%, Secured Debt (Maturity - March 31, 2022)3 month LIBOR6,938
6,859
6,903
Marine Scaffolding Service ProviderLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - March 31, 2022)3 month LIBOR6,563
6,504
6,530
American Teleconferencing Services, Ltd. (8)Provider of Audio Conferencing and Video Collaboration SolutionsLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.29%, Secured Debt (Maturity - December 8, 2021)2 month LIBOR15,223
14,384
15,219
Provider of Audio Conferencing and Video Collaboration SolutionsLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.24%, Secured Debt (Maturity - December 8, 2021)2 month LIBOR14,374
13,778
9,433
  
Apex Linen Service, Inc. (10) (13)Industrial Launderers16.00% Secured Debt (Maturity - October 30, 2022)None3,604
3,553
3,553
Industrial Launderers16.00% Secured Debt (Maturity - October 30, 2022)None$3,604
$3,562
$3,562
 LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.66%, Secured Debt (Maturity - October 30, 2022) (8)1 month LIBOR600
600
600
 LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - October 30, 2022) (8)1 month LIBOR600
600
600
  4,153
4,153
  4,162
4,162
APTIM CorpEngineering, Construction and Procurement7.75% Secured Debt (Maturity - June 15, 2025)None6,952
6,185
5,370
Arcus Hunting, LLC (8) (11)Manufacturer of Bowhunting and Archery Products and AccessoriesLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity - November 13, 2019)1 month LIBOR7,087
7,020
7,083
Manufacturer of Bowhunting and Archery Products and AccessoriesLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.80%, Secured Debt (Maturity - November 13, 2019)1 month LIBOR6,764
6,741
6,764
Arise Holdings, Inc. (11)Tech-enabled business process outsourcingPreferred Stock (1,000,000 shares)
1,000
1,000
Tech-enabled business process outsourcingPreferred Stock (1,000,000 shares)
1,000
1,704
ASC Ortho Management Company, LLC (11)Provider of Orthopedic ServicesLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.30%, Secured Debt (Maturity - August 31, 2023) (8)3 month LIBOR4,631
4,537
4,485
 13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)None1,625
1,586
1,589
  6,123
6,074
ATI Investment Sub, Inc. (8)Manufacturer of Solar Tracking SystemsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.13%, Secured Debt (Maturity - June 22, 2021)1 month LIBOR7,114
6,980
7,106
Manufacturer of Solar Tracking SystemsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.75%, Secured Debt (Maturity - June 22, 2021)1 month LIBOR3,634
3,572
3,383
ATX Networks Corp. (8) (9)Provider of Radio Frequency Management EquipmentLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.31%, Current Coupon plus PIK 8.31%, Secured Debt (Maturity - June 11, 2021)3 month LIBOR14,324
14,120
13,321
Provider of Radio Frequency Management EquipmentLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - June 11, 2021)3 month LIBOR13,945
13,804
13,248
BarFly Ventures, LLC (11)Casual Restaurant Group12.00% Secured Debt (Maturity - August 31, 2020)None2,905
2,865
2,905
Casual Restaurant Group12.00% Secured Debt (Maturity - August 31, 2020)None3,395
3,365
3,342
 Warrants (.410 equivalent units, Expiration - August 31, 2025)
158
175
 Warrants (.410 equivalent units, Expiration - August 31, 2025)
158
137
 Options (.731 equivalent units)
133
309
 Options (.99 equivalent units)
202
313
  3,156
3,389
  3,725
3,792
BBB Tank Services, LLC (10) (13)Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market15.00% Secured Debt (Maturity - April 8, 2021)None1,000
988
971
Maintenance, Repair and Construction Services to the Above-Ground Storage Tank MarketLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.49%, Secured Debt (Maturity - April 8, 2021)None1,100
1,094
1,066
 LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.66%, Secured Debt (Maturity - April 9, 2018) (8)1 month LIBOR180
180
180
 Preferred Stock (28,280 units)
28
29
 Member Units (200,000 units)
200
138
 Member Units (200,000 units)
200
58
  1,368
1,289
  1,322
1,153
Berry Aviation, Inc. (11)Airline Charter Service OperatorCommon Stock (138 shares)
100
368
Airline Charter Service Operator10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)None4,496
4,435
4,496
 Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative) (16)1,548
1,640
  5,983
6,136
BigName Commerce, LLC (8) (11)Provider of Envelopes and Complimentary Stationery ProductsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.94%, Secured Debt (Maturity - May 11, 2022)1 month LIBOR2,472
2,446
2,446
Provider of Envelopes and Complimentary Stationery ProductsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - May 11, 2022)1 month LIBOR2,443
2,423
2,408
Binswanger Enterprises, LLC (8) (11)Glass Repair and Installation Service ProviderLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.31%, Secured Debt (Maturity - March 9, 2022)3 month LIBOR15,209
14,958
15,090
Glass Repair and Installation Service ProviderLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.62%, Secured Debt (Maturity - March 9, 2022)3 month LIBOR14,175
13,991
14,175
 Member Units (1,050,000 units)
1,050
1,000
 Member Units (1,050,000 units)
1,050
1,230
  16,008
16,090
  15,041
15,405
Bluestem Brands, Inc. (8)Multi-Channel Retailer of General MerchandiseLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.38%, Secured Debt (Maturity - November 6, 2020)3 month LIBOR12,803
12,649
9,026
Multi-Channel Retailer of General MerchandiseLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.24%, Secured Debt (Maturity - November 6, 2020)3 month LIBOR11,995
11,901
8,862
Boccella Precast Products, LLC (10) (13)Manufacturer of Precast Hollow Core ConcreteLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.80%, Secured Debt (Maturity - June 30, 2022) (8)3 month LIBOR3,931
3,861
3,931
   Member Units (540,000 units) (16)
540
1,228
Boccella Precast Products, LLC (10) (13)Manufacturer of Precast Hollow Core ConcreteLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity - June 30, 2022) (8)1 month LIBOR$4,146
$4,058
$4,136
 Member Units (540,000 units)
540
1,215
  4,401
5,159
  4,598
5,351
  
Brightwood Capital Fund Investments (9) (15)Investment PartnershipLP Interests (Brightwood Capital Fund III, LP) (Fully diluted 0.52%) (16)
4,075
3,488
Investment PartnershipLP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)$
$4,075
$3,488
 LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 1.58%) (16)
2,037
2,126
 LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)
5,037
5,126
  6,112
5,614
  9,112
8,614
Brundage-Bone Concrete Pumping, Inc.Construction Services Provider10.38% Secured Debt (Maturity - September 1, 2023) (14)None12,000
12,071
12,780
Buca C, LLC (10) (13)Casual Restaurant GroupLIBOR Plus 9.25% (Floor 1.00%), Current Coupon 10.94%, Secured Debt (Maturity - June 30, 2020) (8)1 month LIBOR13,336
13,201
13,201
Casual Restaurant GroupLIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.73%, Secured Debt (Maturity - June 30, 2020) (8)1 month LIBOR12,670
12,595
12,595
 Preferred Member Units (4 units, 6.00% cumulative) (16)
2,702
2,823
 Preferred Member Units (4 units, 6.00% cumulative) (16)
2,866
2,997
  15,903
16,024
  15,461
15,592
Cadence Aerospace, LLC (8)Aerospace ManufacturingLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.33%, Secured Debt (Maturity - November 14, 2023)3 month LIBOR14,962
14,820
14,820
Cadence Aerospace, LLC (8) (11)Aerospace ManufacturingLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - November 14, 2023)3 month LIBOR19,420
19,259
19,420
CAI Software, LLC (10) (13)Provider of Specialized Enterprise Resource Planning Software12.00% Secured Debt (Maturity - October 10, 2019)None1,021
1,007
1,021
Provider of Specialized Enterprise Resource Planning Software12.00% Secured Debt (Maturity - December 7, 2023)None2,720
2,719
2,720
 Member Units (16,339 units) (16)
163
807
 Member Units (16,742 units) (16)
188
679
  1,170
1,828
  2,907
3,399
CapFusion, LLC (9) (10) (13) (18)Non-Bank Lender to Small Businesses13.00% Secured Debt (Maturity - March 24, 2021) (18)None1,559
1,287
358
CDHA Management, LLC (8) (11)Dental ServicesLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.76%, Secured Debt (Maturity - December 5, 2021)3 month LIBOR5,062
4,978
5,062
Central Security Group, Inc. (8)Security Alarm Monitoring Service ProviderLIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - October 6, 2021)1 month LIBOR7,461
7,444
7,480
Cenveo Corporation (18)Provider of Commercial Printing, Envelopes, Labels, Printed Office Products6.00% Secured Debt (Maturity - August 1, 2019) (18)None15,000
13,706
6,750
Cenveo CorporationProvider of Commercial Printing, Envelopes, Labels, Printed Office ProductsLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.49%, Secured Debt (Maturity - June 7, 2023) (8)1 month LIBOR4,995
4,636
4,645
 LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.79%, Secured Debt (Maturity - November 2, 2018) (8)1 month LIBOR4,774
4,737
4,798
 Common Stock (138,889 shares)4,163
1,979
  18,443
11,548
  8,799
6,624
Clarius BIGS, LLC (11) (18)Prints & Advertising Film Financing15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None2,140
1,882
60
Prints & Advertising Film Financing15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None2,128
1,870
32
 20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None773
680
22
 20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None770
677
12
  2,562
82
  2,547
44
Clickbooth.com, LLC (8) (11)Provider of Digital Advertising Performance Marketing SolutionsLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.19%, Secured Debt (Maturity - December 5, 2022)1 month LIBOR2,981
2,925
2,925
Provider of Digital Advertising Performance Marketing SolutionsLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.31%, Secured Debt (Maturity - December 5, 2022)3 month LIBOR2,908
2,860
2,906
Construction Supply Investments, LLC (11)Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry ContractorsLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - June 30, 2023) (8)1 month LIBOR6,938
6,903
6,920
Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry ContractorsLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - June 30, 2023) (8)1 month LIBOR14,968
14,902
14,932
 Member units (20,000 units)
3,723
3,723
 Member units (42,207 units)
4,221
5,050
  10,626
10,643
  19,123
19,982
CTVSH, PLLC (8) (11) (13)Emergency Care and Specialty Service Animal HospitalLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.01%, Secured Debt (Maturity - August 3, 2022)1 month LIBOR2,925
2,872
2,899
Emergency Care and Specialty Service Animal HospitalLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.63%, Secured Debt (Maturity - August 3, 2022)1 month LIBOR2,675
2,635
2,675
  
  
Datacom, LLC (10) (13)Technology and Telecommunications Provider5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019)None$1,384
$1,377
$1,192
Datacom, LLC (10) (13) (18)Technology and Telecommunications Provider10.50% PIK Secured Debt (Maturity - May 30, 2019) (18)None1,384
1,377
1,082
 8.00% Secured Debt (Maturity - May 30, 2018)None195
195
195
 8.00% Secured Debt (Maturity - May 30, 2018) (18)None200
200
188
 Class A Preferred Member Units (1,530 units) (16)
131
24
 Class A Preferred Member Units (1,530 units)
144

 Class B Preferred Member Units (717 units)
670

 Class B Preferred Member Units (717 units)
670

  2,373
1,411
  2,391
1,270
Digital River, Inc. (8)Provider of Outsourced e-Commerce Solutions and ServicesLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.61%, Secured Debt (Maturity - February 12, 2021)3 month LIBOR9,779
9,687
9,779
Provider of Outsourced e-Commerce Solutions and ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - February 12, 2021)3 month LIBOR9,779
9,718
9,534
DTE Enterprises, LLC (11)Industrial Powertrain Repair and ServicesLIBOR Plus 7.50% (Floor 1.50%), Current Coupon 10.00%, Secured Debt (Maturity - April 13, 2023) (8)1 month LIBOR11,992
11,783
11,992
 Class AA Preferred Member Units (non-voting) (16)
778
797
 Class A Preferred Member Units (776,316 units) (16)
776
1,440
  13,337
14,229
Dynamic Communities, LLC (8) (11)Developer of Business Events and Online Community GroupsLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - July 17, 2023)3 month LIBOR5,530
5,430
5,383
Elite SEM, Inc. (8) (11)Provider of Digital Marketing Agency ServicesLIBOR Plus 8.44% (Floor 1.00%), Current Coupon 11.01%, Secured Debt (Maturity - February 1, 2022)3 month LIBOR6,875
6,757
6,857
Epic Y-Grade Services, LP (8)NGL Transportation & StorageLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - June 13, 2024)1 month LIBOR$17,500
$17,186
$17,106
Evergreen Skills Lux S.á r.l.
(d/b/a Skillsoft) (8) (9)
Technology-Based Performance Support SolutionsLIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.13%, Secured Debt (Maturity - April 28, 2022) (14)1 month LIBOR10,901
10,528
9,756
Technology-Based Performance Support SolutionsLIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.75%, Secured Debt (Maturity - April 28, 2022) (14)1 month LIBOR10,900
10,605
4,524
Extreme Reach, Inc. (8) (12)Integrated TV and Video Advertising PlatformLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - February 7, 2020)1 month LIBOR14,154
14,142
14,137
Felix Investments Holdings II, LLC (8) (11)Oil and Gas Exploration and ProductionLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR3,333
3,270
3,270
Oil and Gas Exploration and ProductionLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.20%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR5,000
4,931
4,971
Flavors Holdings, Inc. (8)Global Provider of Flavoring and Sweetening Products and SolutionsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity - April 3, 2020)3 month LIBOR12,222
11,728
11,060
Global Provider of Flavoring and Sweetening Products and SolutionsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - April 3, 2020)3 month LIBOR11,481
11,241
10,735
GoWireless Holdings, Inc. (8)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.38%, Secured Debt (Maturity - December 22, 2024)3 month LIBOR16,361
16,216
16,341
Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.00%, Secured Debt (Maturity - December 22, 2024)3 month LIBOR15,533
15,408
15,241
Hojeij Branded Foods, LLC (8) (11)Multi-Airport, Multi-Concept Restaurant OperatorLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.89%, Secured Debt (Maturity - July 20, 2022)1 month LIBOR12,077
11,976
12,077
Good Source Solutions, Inc. (8) (11)Specialized Food DistributorLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.60%, Secured Debt (Maturity - June 29, 2023)3 month LIBOR5,000
4,954
4,952
HDC/HW Intermediate Holdings, LLC (8) (11)Managed Services and Hosting ProviderLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.11%, Secured Debt (Maturity - December 21, 2023)3 month LIBOR1,794
1,757
1,758
Hoover Group, Inc. (8) (9) (11)Provider of Storage Tanks and Related Products to the Energy and Petrochemical MarketsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.15%, Secured Debt (Maturity - January 28, 2021)3 month LIBOR14,810
14,050
13,700
Provider of Storage Tanks and Related Products to the Energy and Petrochemical MarketsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.90%, Secured Debt (Maturity - January 28, 2021)3 month LIBOR14,659
14,117
14,219
 LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - January 28, 2020)3 month LIBOR7,500
6,715
6,703
 LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.66%, Secured Debt (Maturity - January 28, 2020)3 month LIBOR6,050
5,695
5,679
  20,765
20,403
  19,812
19,898
Houghton Mifflin Harcourt Publishers, Inc. (8) (12)Provider of Educational Print and Digital ServicesLIBOR Plus 3.00% (Floor 1.00%), Current Coupon 4.88%, Secured Debt (Maturity - May 28, 2021)1 month LIBOR14,975
14,085
13,721
Hunter Defense Technologies, Inc. (8) (12)Provider of Military and Commercial Shelters and SystemsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - March 29, 2023)3 month LIBOR22,478
21,973
21,973
Hunter Defense Technologies, Inc. (8) (11)Provider of Military and Commercial Shelters and SystemsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.60%, Secured Debt (Maturity - March 29, 2023)3 month LIBOR8,696
8,561
8,696
HW Temps LLC (10) (13)Temporary Staffing Solutions8.00% Secured Debt (Maturity - March 29, 2023)None2,740
2,673
2,408
Hydrofarm Holdings, LLC (8) (11)Wholesaler of Horticultural ProductsLIBOR Plus 7.00%, Current Coupon 8.73%, Secured Debt (Maturity - May 12, 2022)3 month LIBOR6,623
6,510
6,236
Wholesaler of Horticultural ProductsLIBOR Plus 10.00%, Current Coupon 3.75% / 8.74% PIK, Current Coupon Plus PIK 12.49%, Secured Debt (Maturity - May 12, 2022)1 month LIBOR7,145
7,028
5,666
iEnergizer Limited (8) (9)Provider of Business Outsourcing SolutionsLIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.88%, Secured Debt (Maturity - May 1, 2019)1 month LIBOR10,079
9,893
10,092
Provider of Business Outsourcing SolutionsLIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.50%, Secured Debt (Maturity - May 1, 2019)1 month LIBOR11,244
11,252
11,258
Implus Footcare, LLC (8) (11)Provider of Footwear and Related AccessoriesLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.74%, Secured Debt (Maturity - May 31, 2021)3 month LIBOR14,453
14,272
14,367
Provider of Footwear and Related AccessoriesLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.35%, Secured Debt (Maturity - April 30, 2021)3 month LIBOR17,106
16,969
17,106
Independent Pet Partners Intermediate Holdings, LLC (8) (11)Omnichannel Retailer of Specialty Pet ProductsLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.80%, Secured Debt (Maturity - November 19, 2023) (14)6 month LIBOR10,946
10,732
10,727
 Member Units (1,191,667 units)
1,192
1,192
  11,924
11,919
Industrial Services Acquisitions, LLC (11)Industrial Cleaning Services6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)None10,624
10,456
10,121
Industrial Cleaning Services6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)None11,398
11,203
11,398
 Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)
202
197
 Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)
202
202
 Member Units (Industrial Services Investments, LLC) (2,100,000 units)
2,100
700
 Member Units (Industrial Services Investments, LLC) (2,100,000 units)
2,100
887
  12,758
11,018
  13,505
12,487
Inn of the Mountain Gods Resort and CasinoHotel & Casino Owner & Operator9.25% Secured Debt (Maturity - November 30, 2020)None10,749
10,629
9,781
Hotel & Casino Owner & Operator9.25% Secured Debt (Maturity - November 30, 2020) (14)None8,179
8,179
8,098
iPayment, Inc. (8)Provider of Merchant AcquisitionLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.62%, Secured Debt (Maturity - April 11, 2023)3 month LIBOR11,970
11,970
12,120
IronGate Energy Services, LLC (18)Oil and Gas Services11.00% Secured Debt (Maturity - July 1, 2018) (18)None5,825
5,827
1,893
Intermedia Holdings, Inc. (8)Unified Communications as a ServiceLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - July 19, 2025)1 month LIBOR11,543
11,435
11,571
Isagenix International, LLC (8)Direct Marketer of Health and Wellness ProductsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.35%, Secured Debt (Maturity - June 14, 2025)3 month LIBOR6,187
6,130
5,553
Jacent Strategic Merchandising, LLC (8) (11)General Merchandise DistributionLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.98%, Secured Debt (Maturity -September 16, 2020)1 month LIBOR$10,161
$10,074
$10,109
Jackmont Hospitality, Inc. (8) (11)Franchisee of Casual Dining RestaurantsLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.40%, Secured Debt (Maturity - May 26, 2021)1 month LIBOR$8,550
$8,529
$8,550
Franchisee of Casual Dining RestaurantsLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - May 26, 2021)1 month LIBOR8,276
8,263
8,276
Jacuzzi Brands LLC (8)Manufacturer of Bath and Spa ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - June 28, 2023)3 month LIBOR5,888
5,778
5,946
Joerns Healthcare, LLC (8)Manufacturer and Distributor of Health Care Equipment & SuppliesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.98%, Secured Debt (Maturity - May 9, 2020)3 month LIBOR11,119
10,964
10,331
Manufacturer and Distributor of Health Care Equipment & SuppliesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.63%, Secured Debt (Maturity - May 9, 2020)3 month LIBOR11,119
11,034
9,340
Kellermeyer Bergensons Services, LLC (8)Outsourced Janitorial Services to Retail/Grocery CustomersLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity - April 29, 2022) (14)3 month LIBOR14,700
14,622
14,921
Outsourced Janitorial Services to Retail/Grocery CustomersLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.25%, Secured Debt (Maturity - April 29, 2022) (14)3 month LIBOR14,700
14,638
14,829
Keypoint Government Solutions, Inc. (8) (11)Provider of Pre-Employment Screening ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.73%, Secured Debt (Maturity - April 18, 2024)3 month LIBOR11,875
11,770
11,875
LaMi Products, LLC (8) (11)General Merchandise DistributionLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.53%, Secured Debt (Maturity -September 16, 2020)3 month LIBOR10,981
10,871
10,956
Knight Energy Services LLC (11)Oil and Gas Equipment and Services8.50% Secured Debt (Maturity - February 9, 2024)None776
776
776
 Class A-2 Shares (25,692 units)
1,843
1,843
  2,619
2,619
Larchmont Resources, LLCOil & Gas Exploration & ProductionLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.53%, Secured Debt (Maturity - August 7, 2020) (8)3 month LIBOR4,226
4,226
4,184
Oil & Gas Exploration & ProductionLIBOR Plus 9.00% (Floor 1.00%) PIK, 11.61% PIK Secured Debt (Maturity - August 7, 2020) (8)3 month LIBOR3,898
3,898
3,800
 Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)
601
1,562
 Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)
601
1,201
  4,827
5,746
  4,499
5,001
LJ Host Merger Sub, Inc. (8)Managed Services and Hosting ProviderLIBOR Plus 5.75% (Floor 1.25%), Current Coupon 7.63%, Secured Debt (Maturity - December 13, 2019)1 month LIBOR17,197
16,801
16,648
Laredo Energy VI, LP (8) (11)Oil and Gas Exploration and ProductionLIBOR Plus 10.50% (Floor 2.00%), Current Coupon 13.36%, Secured Debt (Maturity - November 19, 2021)3 month LIBOR8,532
8,289
8,289
Logix Acquisition Company, LLC (8) (11)Competitive Local Exchange CarrierLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.60%, Secured Debt (Maturity - December 22, 2024) (23)1 month LIBOR9,704
9,610
9,753
Competitive Local Exchange CarrierLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - December 22, 2024) (23)1 month LIBOR9,603
9,520
9,675
LSF9 Atlantis Holdings, LLC (8)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity - May 1, 2023)1 month LIBOR13,738
13,639
13,709
Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.48%, Secured Debt (Maturity - May 1, 2023)1 month LIBOR13,388
13,306
12,492
Lulu’s Fashion Lounge, LLC (8)(11)Fast Fashion E-Commerce RetailerLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.88%, Secured Debt (Maturity - August 28, 2022)1 month LIBOR6,563
6,380
6,759
Fast Fashion E-Commerce RetailerLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - August 28, 2022)1 month LIBOR6,051
5,911
5,870
Meisler Operating, LLC (10) (13)Provider of Short Term Trailer and Container RentalLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.20%, Secured Debt (Maturity - June 7, 2022) (8)3 month LIBOR4,740
4,627
4,635
Provider of Short Term Trailer and Container RentalLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 10.04%, Secured Debt (Maturity - June 7, 2022) (8)3 month LIBOR6,060
5,939
5,945
 Member Units (Milton Meisler Holdings, LLC) (8,000 units)
1,214
1,393
 Member Units (Milton Meisler Holdings, LLC) (12,139 units)
1,214
1,680
  5,841
6,028
  7,153
7,625
MHVC Acquisition Corp. (8)Provider of Differentiated Information Solutions, Systems Engineering and AnalyticsLIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.56%, Secured Debt (Maturity - April 29, 2024)3 month LIBOR10,421
10,375
10,551
Provider of Differentiated Information Solutions, Systems Engineering and AnalyticsLIBOR Plus 5.25% (Floor 1.00%), Current Coupon 7.75%, Secured Debt (Maturity - April 29, 2024)1 month LIBOR7,840
7,798
7,566
Minute Key, Inc. (10) (13)Operator of Automated Key Duplication KioskWarrants (359,352 equivalent units, Expiration - May 20, 2025)
70
293
NBG Acquisition, Inc. (8)Wholesaler of Home Decor ProductsLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.95%, Secured Debt (Maturity - April 26, 2024)1 month LIBOR4,375
4,311
4,391
Mills Fleet Farm Group, LLC (8) (11)Omnichannel Retailer of Work, Farm and Lifestyle MerchandiseLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - October 24, 2024)1 month LIBOR14,963
14,679
14,963
Mobileum, Inc. (8) (11)Provider of Big Data Analytics to Telecom Service ProvidersLIBOR Plus 10.25% (Floor 0.75%), Current Coupon 12.86%, Secured Debt (Maturity - May 1, 2022) (14)3 month LIBOR7,500
7,434
7,434
New Era Technology, Inc. (8) (11)Managed Services and Hosting ProviderLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.13%, Secured Debt (Maturity - June 22, 2023)3 month LIBOR8,678
8,537
8,556
New Media Holdings II LLC (8) (9)Local Newspaper OperatorLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - July 14, 2022)1 month LIBOR14,197
14,007
14,290
Local Newspaper OperatorLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - July 14, 2022)1 month LIBOR9,694
9,606
9,657
NNE Partners, LLC (8) (11)Oil & Gas Exploration & ProductionLIBOR Plus 8.00%, Current Coupon 10.02%, Secured Debt (Maturity - March 2, 2022)3 month LIBOR15,458
15,332
15,326
Oil & Gas Exploration & ProductionLIBOR Plus 8.00%, (Floor 0.00%) Current Coupon 10.62%, Secured Debt (Maturity - March 2, 2022)3 month LIBOR20,417
20,283
20,417
North American Lifting Holdings, Inc. (8)Crane Service ProviderLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.80%, Secured Debt (Maturity - November 27, 2020)3 month LIBOR6,294
5,698
5,954
Crane Service ProviderLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.10%, Secured Debt (Maturity - November 27, 2020)3 month LIBOR6,228
5,840
5,854
Novetta Solutions, LLC (8)Provider of Advanced Analytics Solutions for Defense AgenciesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.88%, Secured Debt (Maturity - October 17, 2022)1 month LIBOR12,094
11,794
11,771
Provider of Advanced Analytics Solutions for Defense AgenciesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.50%, Secured Debt (Maturity - October 17, 2022)1 month LIBOR14,939
14,629
14,668
NTM Acquisition Corp. (8)Provider of B2B Travel Information ContentLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity - June 7, 2022)3 month LIBOR10,763
10,659
10,710
Provider of B2B Travel Information ContentLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.75%, Secured Debt (Maturity - June 7, 2022)1 month LIBOR4,035
4,007
3,975
Paris Presents, Inc. (8)Branded Cosmetic and Bath AccessoriesLIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.63%, Secured Debt (Maturity - December 31, 2021) (14)1 month LIBOR10,000
9,904
10,125
Pasha Group (8)Diversified Logistics and Transportation ProvidedLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.37%, Secured Debt (Maturity - January 26, 2023)2 month LIBOR12,109
11,742
12,230
Diversified Logistics and Transportation ProvidedLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.07%, Secured Debt (Maturity - January 26, 2023)2 month LIBOR$10,449
$10,177
$10,534
Permian Holdco 2, Inc.Storage Tank Manufacturer14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)None$891
$891
$891
Storage Tank Manufacturer14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)None1,025
1,025
738
 Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 units) (16)
1,997
2,524
 18.00% PIK Unsecured Debt (Maturity - June 30, 2022) (17)None683
683
683
 Common Shares (Permian Holdco 1, Inc.) (386,255 units)

25
 Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares) (16)
1,997
825
  2,888
3,440
 Common Shares (Permian Holdco 1, Inc.) (386,255 shares)


Pernix Therapeutics Holdings, Inc. (11)Pharmaceutical Royalty12.00% Secured Debt (Maturity - August 1, 2020)None2,652
2,634
1,714
Pier 1 Imports, Inc. (8) (9) (12)Decorative Home Furnishings RetailerLIBOR Plus 3.50% (Floor 1.00%), Current Coupon 5.95%, Secured Debt (Maturity - April 30, 2021)3 month LIBOR7,513
7,137
7,156
PPC/Shift, LLC (8) (11)Provider of Digital Solutions to Automotive IndustryLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.84%, Secured Debt (Maturity - December 22, 2021)1 month LIBOR6,781
6,668
6,781
  3,705
2,246
Pier 1 Imports, Inc. (8)Decorative Home Furnishings RetailerLIBOR Plus 3.50% (Floor 1.00%), Current Coupon 6.38%, Secured Debt (Maturity - April 30, 2021)3 month LIBOR7,435
7,173
4,015
PricewaterhouseCoopers Public Sector LLP (8) (14)Provider of Consulting Services to GovernmentsLIBOR Plus 7.50%, Current Coupon 10.00%, Secured Debt (Maturity - May 1, 2026)1 month LIBOR13,100
13,055
12,936
Prowler Acquisition Corporation (8)Specialty Distributor to the Energy SectorLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity - January 28, 2020)3 month LIBOR12,380
11,297
12,101
Specialty Distributor to the Energy SectorLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.00%, Secured Debt (Maturity - January 28, 2020)1 month LIBOR12,248
11,739
12,309
Radiology Partners, Inc. (8) (11)Radiology Practice Providing Scan InterpretationsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - December 4, 2023)1 month LIBOR9,731
9,585
9,749
Renaissance Learning, Inc. (8)Technology-based K-12 Learning SolutionsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - April 11, 2022) (14)3 month LIBOR12,695
12,374
12,773
Resolute Industrial, LLC (8) (11)HVAC Equipment Rental and RemanufacturingLIBOR Plus 7.62% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity - July 26, 2022) (24)3 month LIBOR17,088
16,701
16,785
 Common Stock (601 units)
750
750
  17,451
17,535
RGL Reservoir Operations, Inc. (9) (11)Oil & Gas Equipment & Services1.00% Current / 9.00% PIK Secured Debt (Maturity - December 21, 2024)None738
433
410
Rise Broadband (8) (11)Fixed Wireless Broadband ProviderLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.49%, Secured Debt (Maturity - May 2, 2023)3 month LIBOR14,850
14,722
14,850
RM Bidder, LLC (11)Scripted and Unscripted TV and Digital Programming ProviderCommon Stock (1,854 units)
31
11
Scripted and Unscripted TV and Digital Programming ProviderCommon Stock (1,854 shares)
31
7
 Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)
284

 Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)
284

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


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


  315
11
  315
7
Salient Partners, LP (8)Provider of Asset Management ServicesLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - June 9, 2021)1 month LIBOR12,943
12,633
12,780
Salient Partners, LP (8) (11)Provider of Asset Management ServicesLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.25%, Secured Debt (Maturity - June 9, 2021)1 month LIBOR7,125
7,132
7,096
Slick Software Holdings LLC (10) (13)Text Messaging Marketing Platform14.00% Secured Debt (Maturity - September 13, 2023)1,720
1,625
1,627
 Member units (17,500 units)
175
175
 Warrants (4,521 equivalent units, Expiration - September 13, 2028)
45
45
  1,845
1,847
Smart Modular Technologies, Inc. (8) (9) (11)Provider of Specialty Memory SolutionsLIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR14,250
13,993
14,179
Provider of Specialty Memory SolutionsLIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.95%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR19,000
18,807
19,095
Sorenson Communications, Inc. (8)Manufacturer of Communication Products for Hearing ImpairedLIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.06%, Secured Debt (Maturity - April 30, 2020)3 month LIBOR2,939
2,926
2,952
Manufacturer of Communication Products for Hearing ImpairedLIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.25%, Secured Debt (Maturity - April 30, 2020)1 month LIBOR2,908
2,901
2,879
STL Parent Corp (8)Manufacturer and Servicer of Tank and Hopper RailcarsLIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.50%, Secured Debt (Maturity - December 5, 2022)1 month LIBOR11,925
11,532
11,567
Strike, LLC (8)Pipeline Construction and Maintenance ServicesLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.45%, Secured Debt (Maturity - November 30, 2022)3 month LIBOR9,375
9,138
9,516
Pipeline Construction and Maintenance ServicesLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.65%, Secured Debt (Maturity - November 30, 2022)6 month LIBOR8,875
8,691
8,842
 LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.02%, Secured Debt (Maturity - May 30, 2019)3 month LIBOR409
394
411
  9,532
9,927
Synagro Infrastructure Company, Inc. (8) (12)Waste Management ServicesLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity - August 22, 2020)3 month LIBOR8,291
7,987
7,834
TE Holdings, LLCOil & Gas Exploration & ProductionCommon Units (72,785 units)
728
91
Oil & Gas Exploration & ProductionCommon Units (72,785 units)
728
36
Teleguam Holdings, LLC (8)Cable and Telecom Services ProviderLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.38%, Secured Debt (Maturity - April 12, 2024) (14)1 month LIBOR7,750
7,606
7,808
Cable and Telecom Services ProviderLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.00%, Secured Debt (Maturity - April 12, 2024) (14)1 month LIBOR7,750
7,624
7,798
TGP Holdings III LLC (8)Outdoor Cooking & AccessoriesLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.10%, Secured Debt (Maturity - September 25, 2025) (14)3 month LIBOR5,000
5,000
4,800
TMC Merger Sub Corp (8)Refractory & Maintenance Services ProviderLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.19%, Secured Debt (Maturity - October 31, 2022) (25)1 month LIBOR19,022
18,882
19,166
Refractory & Maintenance Services ProviderLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.25%, Secured Debt (Maturity - October 31, 2022) (25)1 month LIBOR18,413
18,218
18,321
TOMS Shoes, LLC (8)Global Designer, Distributor, and Retailer of Casual FootwearLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.48%, Secured Debt (Maturity - October 30, 2020)3 month LIBOR$4,850
$4,612
$2,862
Global Designer, Distributor, and Retailer of Casual FootwearLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.00%, Secured Debt (Maturity - October 30, 2020)1 month LIBOR4,800
4,651
3,804
Turning Point Brands, Inc. (8) (9) (11)Marketer/Distributor of Tobacco ProductsLIBOR Plus 7.00%, Current Coupon 8.70%, Secured Debt (Maturity - March 7, 2024) (14)3 month LIBOR8,500
8,415
8,670
Marketer/Distributor of Tobacco ProductsLIBOR Plus 7.00% (Floor 0.00%), Current Coupon 9.48%, Secured Debt (Maturity - March 7, 2024) (14)1 month LIBOR$8,500
$8,427
$8,585
TVG-I-E CMN Acquisition, LLC (8) (11)Organic Lead Generation for Online Postsecondary SchoolsLIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - November 3, 2021)1 month LIBOR11,098
10,910
11,098
Organic Lead Generation for Online Postsecondary SchoolsLIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - November 3, 2021)1 month LIBOR19,377
19,096
19,377
U.S. Telepacific Corp. (8) (12)Provider of Communications and Managed ServicesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity - May 2, 2023)3 month LIBOR18,375
17,937
17,888
US Joiner Holding Company, LLC (8)Marine Interior Design and InstallationLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - April 16, 2020)1 month LIBOR8,222
8,205
8,181
Valley Healthcare Group, LLC (10) (13)Provider of Durable Medical EquipmentLIBOR Plus 12.50% (Floor 0.50%), Current Coupon 14.16%, Secured Debt (Maturity - December 29, 2020) (8)1 month LIBOR2,912
2,874
2,874
 Preferred Member Units (Valley Healthcare Holding, LLC) (400 units)
400
435
  3,274
3,309
U.S. Telepacific Corp. (8)Provider of Communications and Managed ServicesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.60%, Secured Debt (Maturity - May 2, 2023)3 month LIBOR16,453
16,127
16,011
VIP Cinema Holdings, Inc. (8)Supplier of Luxury Seating to the Cinema IndustryLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.31%, Secured Debt (Maturity - March 1, 2023)3 month LIBOR9,500
9,459
9,610
Supplier of Luxury Seating to the Cinema IndustryLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.50%, Secured Debt (Maturity - March 1, 2023)1 month LIBOR9,000
8,967
8,415
Vistar Media, Inc. (8) (11)Operator of Digital Out-of-Home Advertising PlatformLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.31%, Secured Debt (Maturity - February 16, 2022)3 month LIBOR3,319
3,059
3,102
Vistar Media, Inc. (11)Operator of Digital Out-of-Home Advertising PlatformLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.62%, Secured Debt (Maturity - February 16, 2022) (8)3 month LIBOR3,263
3,060
3,263
 Warrants (70,207 equivalent units, Expiration - February 17, 2027)
331
600
 Warrants (70,207 equivalent units, Expiration - February 17, 2027)
331
640
  3,390
3,702
  3,391
3,903
Volusion, LLC (10) (13)Provider of Online Software-as-a-Service eCommerce Solutions11.50% Secured Debt (Maturity - January 24, 2020)None7,172
6,523
6,523
Provider of Online Software-as-a-Service eCommerce Solutions11.50% Secured Debt (Maturity - January 24, 2020)None8,672
8,336
8,336
 Preferred Member Units (2,090,001 units)
6,000
6,000
 8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)None175
175
175
 Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)
1,104
630
 Preferred Member Units (2,090,001 units)
6,000
6,000
  13,627
13,153
 Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)
1,104
810
Wellnext, LLC (8) (11)Manufacturer of Supplements and VitaminsLIBOR Plus 10.10% (Floor 1.00%), Current Coupon 11.98%, Secured Debt (Maturity - July 21, 2022) (23)1 month LIBOR9,930
9,861
10,228
  15,615
15,321
Wireless Vision Holdings, LLC (8) (11)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.80%, Secured Debt (Maturity - September 29, 2022) (23)1 month LIBOR12,867
12,556
12,603
Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 9.91% (Floor 1.00%), Current Coupon 11.41% / 1.00% PIK, Current Coupon Plus PIK 12.41%, Secured Debt (Maturity - September 29, 2022) (23)1 month LIBOR14,130
13,747
13,973
Subtotal Non-Control/Non-Affiliate Investments (5) (85% of total portfolio investments at fair value)  $925,303
$909,632
YS Garments (8)Designer and Provider of Branded ActivewearLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.41%, Secured Debt (Maturity - August 9, 2024)1 month LIBOR7,406
7,338
7,304
Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)  $929,741
$902,841
    
Total Portfolio Investments  $1,071,909
$1,067,641
  $1,113,450
$1,110,128
    
Short Term Investments (20)    
Fidelity Institutional Money Market Funds (21)Prime Money Market Portfolio, Class III Shares
$
$
Prime Money Market Portfolio, Class III Shares
$5,606
$5,606
US Bank Money Market Account (21)
10,998
10,998

7,040
7,040
    
Total Short Term Investments  $10,998
$10,998
  $12,646
$12,646

(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. (the(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, 20172018 and March 31, 20182019 along with transactions during the three months ended March 31, 20182019 in these affiliated investments were as follows (in thousands):
   Three Months Ended March 31, 2018   Three Months Ended March 31, 2018  Three Months Ended March 31, 2019   Three Months Ended March 31, 2019
Portfolio CompanyFair Value at December 31, 2018 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 
Net Unrealized Gain (Loss) ***
 Fair Value at March 31, 2019 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income
           
Affiliate Investments Fair Value at December 31, 2017 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 Net Unrealized Gain (Loss) Fair Value at March 31, 2018 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income           
            
AFG Capital Group, LLC                       
Member units $897
 $1
 $
 $42
 $940
 $
$
$
$2
$995
 $
 $
 $97
 $1,092
 $
$
$
$
Warrants 215
 
 
 10
 225
 



237
 
 
 23
 260
 



Brewer Crane Holdings, LLC                       
Term loan 
 2,482
 (49) 
 2,433
 
68


2,347
 3
 (31) 
 2,319
 
76


Preferred member units 
 1,070
 
 
 1,070
 


8
1,070
 
 
 
 1,070
 


8
Centre Technologies Holdings, LLC           
Term loan$
 $3,062
 $(67) $6
 $3,001
 $
$89
$7
$
Preferred member units
 1,460
 
 
 1,460
 



Chamberlin HoldCo, LLC                       
Term loan 
 5,402
 (135) 
 5,267
 
64
2

4,933
 5
 
 
 4,938
 
167
15

Member units4,735
 
 
 545
 5,280
 


36
Member units 
 2,860
 
 
 2,860
 



183
 
 
 
 183
 



Charlotte Russe, Inc.                       
Term loan 
 6,285
 
 (63) 6,222
 
107


3,090
 
 (6,236) 3,146
 
 (5,430)(84)

Common stock 
 2,470
 
 
 2,470
 




 
 
 
 
 



Charps, LLC                       
Term loan 4,500
 14
 (400) (1) 4,113
 
146


2,975
 6
 (167) (6) 2,808
 
89


Preferred member units 163
 
 
 134
 297
 



568
 
 
 370
 938
 


30
Clad-Rex Steel, LLC                       
Term loan 3,320
 3
 
 (3) 3,320
 
95


3,020
 3
 
 (3) 3,020
 
90


Member units 2,375
 
 
 69
 2,444
 



2,653
 
 
 
 2,653
 


13
Term loan (Clad-Rex Steel RE Investor, LLC) 293
 
 (1) 
 292
 
8


288
 
 (2) 
 286
 
7


Member units (Clad-Rex Steel RE Investor, LLC) 70
 
 
 
 70
 


51
88
 
 
 
 88
 



Copper Trail Energy Fund I, LP           
LP interests
 4,029
 
 (99) 3,930



6
(250)
Digital Products Holdings LLC           
Term loan6,320
 6
 (83) 
 6,243
 
206


Preferred member units2,116
 
 
 (125) 1,991
 


25
Direct Marketing Solutions, Inc.                       
Term loan   4,712
 (147) 
 4,565
 
88
3

4,404
 5
 (59) 
 4,350
 
154


Preferred stock 
 2,100
 
 
 2,100
 



3,725
 
 
 313
 4,038
 



Freeport Financial Funds                       
LP interests 8,506
 
 
 
 8,506
 


203
10,980
 
 (1,399) 
 9,581
 


255
Gamber-Johnson Holdings, LLC                       
Term loan 5,850
 6
 (122) (7) 5,727
 
188


5,371
 7
 (216) (7) 5,155
 
139


Common stock 5,843
 
 
 790
 6,633
 

12
49
11,365
 
 
 
 11,365
 


214
Guerdon Modular Holdings, Inc.                       
Term loan 2,660
 103
 
 (3) 2,760
 
90


Term loan 
 70
 
 
 70
 
1


3,001
 5
 
 (1) 3,005
 
108


Common stock 
 
 
 
 
 




 
 
 
 
 



Class B preferred units 
 
 
 
 
 




 
 
 
 
 



Gulf Publishing Holdings, LLC                       
Term loan 3,151
 3
 (25) 
 3,129
 
103


3,131
 4
 (33) 
 3,102
 
102


Term loan 20
 
 (20) 
 
 




 20
 
 
 20
 



Member units 1,210
 
 
 
 1,210
 



1,030
 
 
 52
 1,082
 



Harris Preston Fund Investments                       
LP interests (HPEP 3, LP) 943
 90
 
 
 1,033
 



1,733
 238
 
 
 1,971
 



LP interests (2717 HM, LP) 536
 
 
 
 536
 



1,133
 1,195
 
 
 2,328
 



Hawk Ridge Systems, LLC                       
Term loan 3,574
 4
 
 (3) 3,575
 
98


3,575
 6
 (225) (6) 3,350
 
99


Preferred member units 950
 
 
 605
 1,555
 


28
1,815
 
 
 
 1,815
 


56
Preferred member units (HRS Services, ULC) 50
 
 
 33
 83
 



95
 
 
 
 95
 



HWT, LLC                       
Term Loan2,484
 391
 (2,875) 
 
 



Member units986
 
 (986) 
 
 (47)
9
(8)
KMC Investor, LLC           
Term loan6,795
 8
 
 
 6,803
 
209


Term loan259
 1
 (266) 6
 
 
2


Term loan 2,454
 
 
 4
 2,458
 
83


991
 
 (1) 
 990
 
23


Member units 985
 
 
 
 985
 

9

248
 
 
 
 248
 



Member units (KMC RE Investor, LLC)3,060
 
 
 
 3,060
 


12
Market Force Information, Inc.                       
Term loan 5,732
 8
 (120) 
 5,620
 
194


5,617
 5
 
 
 5,622
 
201


Term loan50
 140
 (50) 
 140
 



Member units 3,675
 
 
 
 3,675
 



3,275
 
 
 (478) 2,797
 



           
M.H. Corbin Holding, LLC                       
Term loan 3,130
 1
 (74) 
 3,057
 
142


$2,934
 $188
 $(1,114) $127
 $2,135
 $10
$129
$
$
Member units
 1,100
 
 92
 1,192
 



Member units 1,500
 
 
 
 1,500
 

9

250
 
 
 (245) 5
 



Mystic Logistics Holdings, LLC                       
Term loan 1,916
 3
 (51) 
 1,868
 
62


1,877
 4
 (7) (2) 1,872
 
61


Common stock 1,705
 
 
 (193) 1,512
 



52
 1
 
 125
 178
 



NexRev, LLC                       
Term loan 
 4,371
 (97) 
 4,274
 
45


4,322
 4
 
 (38) 4,288
 
131


Preferred member units 
 1,720
 
 
 1,720
 

3

1,972
 
 
 (252) 1,720
 


5
NuStep, LLC                       
Term loan $5,048
 $6
 $
 $
 $5,054
 $
$161
$
$
5,073
 6
 
 
 5,079
 
161


Preferred member units 2,550
 
 (1) 
 2,549
 



2,550
 
 
 
 2,550
 



SoftTouch Medical Holdings, LLC            
SI East, LLC           
Term loan 1,260
 10
 (1,260) (10) 
 
21


11,582
 8
 
 (8) 11,582
 
311


Preferred member units2,000
 
 
 
 2,000
 



Soft Touch Medical Holdings, LLC           
Member units 1,781
 
 (869) (912) 
 912

11
134

 
 
 
 
 (41)


Tedder Acquisition, LLC           
Term loan3,983
 5
 
 
 3,988
 
128


Term loan118
 
 
 
 118
 
4


Preferred member units1,869
 
 
 
 1,869
 



 $76,862
 $33,794
 $(3,371) $492
 $107,777
 $912
$1,764
$49
$475
$149,323
 $11,915
 $(13,817) $3,632
 $151,053
 $(5,508)$2,602
$37
$396
* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIKpayment-in-kind (“PIK”) interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more new securities and the movement of an existing portfolio company out of this category into a different category.
*** Net unrealized gain (loss) does not include unrealized appreciation (depreciation) on unfunded commitments.
(5) Non-Control/Non-Affiliate investments are generally defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.
(6) Control investments are generally defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. Fair value as of December 31, 20172018 and March 31, 20182019 along with transactions during the three months ended March 31, 20182019 in these controlledControl investments were as follows (in thousands):
   Three Months Ended March 31, 2018   Three Months Ended March 31, 2018   Three Months Ended March 31, 2019   Three Months Ended March 31, 2019
Controlled Investments Fair Value at December 31, 2017 
Gross Additions (Cost)**
 
Gross Reductions (Cost)***
 Net Unrealized Gain (Loss) Fair Value at March 31, 2018 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income
Portfolio Company Fair Value at December 31, 2018 
Gross Additions (Cost)**
 
Gross Reductions (Cost)***
 Net Unrealized Gain (Loss) Fair Value at March 31, 2019 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income
            
Control Investments            
Copper Trail Energy Fund I, LP                        
LP interests $4,468
 $23
 $(4,491) $

$
 $
$
$
$
CTMH, LP            
LP interests $2,500
 $
 $
 $
 $2,500
 $
$
$
$34
 872
 
 
 
 872
 



GRT Rubber Technologies, LLC                        
Term loan 5,715
 7
 (103) (7) 5,612
 
156


 4,797
 868
 
 (2) 5,663
 
123


Member units 10,821
 
 
 714
 11,535
 

17
136
 19,239
 
 
 1,098
 20,337
 

17
1,307
HMS-ORIX SLF LLC*
                        
Membership interests 30,643
 
 
 (58) 30,585
 


525
 26,351
 1
 
 3,010
 29,362
 


546
 $49,679
 $7
 $(103) $649
 $50,232
 $
$156
$17
$695
 $55,727
 $892
 $(4,491) $4,106
 $56,234
 $
$123
$17
$1,853
* Together with ORIX Funds Corp. (“Orix”), the Company co-invests through HMS-ORIX SLF LLC (“HMS-ORIX”), which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, the Company and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. Therefore, althoughAlthough the Company owns more than 25% of the voting securities of HMS-ORIX, the Company does not have sole control over significant actions of HMS-ORIX for purposes of the 1940 Act or otherwise.
** Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
*** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(7) Principal is net of repayments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable.
(8) Index based floating interest rate is subject to contractual minimum interest rates.rates, or floors.
(9) The investment is not a qualifying asset in an eligible portfolio company under Section 55(a) of the 1940 Act. A business development company (“BDC”) may not acquire any asset other than qualifying assets in eligible portfolio companies unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. As of March 31, 2018,2019, approximately 16.0%12.9% of the Company’s total assets were considered non-qualifying.
(10) Investment is classified as a Lower Middle MarketLMM (as defined in the notes to the financial statements) portfolio investment.
(11) Investment is classified as a Private Loan (as defined in the notes to the financial statements) portfolio investment.
(12) Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of March 31, 2018.2019. Settlement occurred or is scheduled to occur after March 31, 2018.2019.
(13) Investment serviced by Main Street Capital Corporation (“Main Street”) pursuant to servicing arrangements with the Company.
(14) Second lien secured debt investment.
(15) Investment is classified as an Other Portfolio (as defined in the notes to the financial statements) investment.
(16) Income producing through dividends or distributions.
(17) Unsecured debt investment.
(18) Investment is on non-accrual status as of March 31, 2018.2019.
(19) Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.[Reserved]
(20) Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
(21) Effective yield as of March 31, 20182019 was approximately 0.25%0.30% at US Bank Money Market Account and 1.29%2.08% at Fidelity Institutional Money Market Funds.
(22) The 1, 2, 3, and 6-month London Interbank Offered Rate (“LIBOR”) rates were 1.88%2.49%, 2.00%2.56%, 2.31%2.60% and 2.45%2.66%, respectively, as of March 31, 2018.2019. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of March 31, 2018,2019, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to March 31, 2018.2019. The prime rate was 4.75%5.50% as of March 31, 2018.2019.
(23) The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR plus 7.50% (Floor 1.00%) per the credit agreement and the Condensed Consolidated Schedule of Investments above reflects such higher rate.
(24) As part of the credit agreement with the portfolio company, the Company is entitled to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. The rate the Company receives per the credit agreement is the same as the rate reflected in the Condensed Consolidated Schedule of Investments above.[Reserved]
(25) The Company has entered into an intercreditor agreement that entitles the Company to the "first out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. Therefore, the Company receives a lower interest rate than the contractual stated interest rate of LIBOR plus 6.64% (Floor 1.00%) per the credit agreement and the Condensed Consolidated Schedule of Investments above reflects such lower rate.
(26) The fair value of the investment was determined using significant unobservable inputs. See Note 3 - Fair Value Hierarchy for Investments.


See notes to the condensed consolidated financial statements.


HMS Income Fund, Inc.
Consolidated Schedule of Investments
HMS Income Fund, Inc.
Consolidated Schedule of Investments
HMS Income Fund, Inc.
Consolidated Schedule of Investments
As of December 31, 2017
12/31/201812/31/2018
(dollars in thousands)
Portfolio Company (1) (3)Business DescriptionType of Investment (2) (3)Index Rate (22)Principal (7)Cost (7)Fair Value (26)Business DescriptionType of Investment (2) (3)Index Rate (22)Principal (7)Cost (7)Fair Value (26)
    
Control Investments (6)
Copper Trail Energy Fund I, LP (9)(15)(16)Investment PartnershipLP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.1%)$
$2,500
$2,500
GRT Rubber Technologies, LLC (8) (10) (13)Engineered Rubber Product ManufacturerLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - December 19, 2019)1 month LIBOR5,715
5,657
5,715
Copper Trail Energy Fund I, LP (9) (15)Investment PartnershipLP Interests (Copper Trail Energy Fund I, LP) (Fully diluted 30.10%) (16)$
$3,745
$4,468
CTMH, LP (9) (15)Investment PartnershipLP Interests (CTMH, LP) (Fully diluted 38.80%)
872
872
GRT Rubber Technologies, LLC (10) (13)Manufacturer of Engineered Rubber ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.35%, Secured Debt (Maturity - December 31, 2023) (8)1 month LIBOR4,797
4,770
4,797
 Member Units (2,896 shares) (16)
6,435
10,821
 Member Units (2,896 units) (16)
6,434
19,239
  12,092
16,536
  11,204
24,036
HMS-ORIX SLF LLC (9) (15)Investment PartnershipMembership Interests (Fully diluted 60.00%) (16)
30,000
30,643
Investment PartnershipMembership Interests (Fully diluted 60.00%) (16)
30,000
26,351
    
Subtotal Control Investments (6) (5% of total investments at fair value)Subtotal Control Investments (6) (5% of total investments at fair value)  $44,592
$49,679
Subtotal Control Investments (6) (5% of total investments at fair value)  $45,821
$55,727
Affiliate Investments (4)
AFG Capital Group, LLC (10) (13)Provider of Rent-to-Own Financing Solutions and ServicesMember Units (46 shares) (16)$
$300
$897
Provider of Rent-to-Own Financing Solutions and ServicesMember Units (46 units) (16)$
$300
$995
 Warrants (10 equivalent units, Expiration - November 7, 2024)
65
237
  365
1,232
Brewer Crane Holdings, LLC (10) (13)Provider of Crane Rental and Operating ServicesLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.35%, Secured Debt (Maturity - January 9, 2023) (8)1 month LIBOR2,387
2,347
2,347
 Preferred Member Units (737 units) (16)
1,070
1,070
  3,417
3,417
Chamberlin Holding, LLC (10) (13)Roofing and Waterproofing Specialty SubcontractorLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.75%, Secured Debt (Maturity - February 23, 2023) (8)1 month LIBOR5,051
4,933
4,933
 Member Units (1,087 units) (16)
2,860
4,735
 Member Units (Langfield RE, LLC) (1 unit) (16)
183
183
  7,976
9,851
Charlotte Russe, Inc.Fast-Fashion Retailer to Young Women8.50% Secured Debt (Maturity - February 2, 2023)None6,237
6,237
3,090
 Warrants (10 equivalent shares, Expiration - November 7, 2024)
65
215
 Common Stock (14,973 shares)
2,470

  365
1,112
  8,707
3,090
Charps, LLC (10) (13)Pipeline Maintenance and Construction12.00% Secured Debt (Maturity - January 31, 2022)None4,600
4,497
4,500
Pipeline Maintenance and Construction12.00% Secured Debt (Maturity - February 3, 2022)None2,975
2,922
2,975
 Preferred Member Units (400 units)
100
163
 Preferred Member Units (400 units) (16)
100
568
  4,597
4,663
  3,022
3,543
Clad-Rex Steel, LLC (10) (13)Specialty Manufacturer of Vinyl-Clad MetalLIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - December 20, 2021) (8)1 month LIBOR3,320
3,264
3,320
Specialty Manufacturer of Vinyl-Clad MetalLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.35%, Secured Debt (Maturity - December 20, 2021) (8)1 month LIBOR3,020
2,979
3,020
 Member Units (179 units) (16)
1,820
2,375
 Member Units (179 units) (16)
1,820
2,653
 10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)None296
293
293
 10.00% Secured Debt (Clad-Rex Steel RE Investor, LLC) (Maturity - December 19, 2036)None291
288
288
 Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)
53
70
 Member Units (Clad-Rex Steel RE Investor, LLC) (200 units)
53
88
  5,430
6,058
  5,140
6,049
Freeport First Lien Loan Fund III, LP (9) (15)Investment PartnershipLP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 5.60%) (16)
8,558
8,506
Gamber-Johnson Holdings, LLC (8) (10) (13)Manufacturer of Ruggedized Computer Mounting SystemsLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.36%, Secured Debt (Maturity - June 24, 2021)1 month LIBOR5,850
5,750
5,850
Digital Products Holdings LLC (10) (13)Designer and Distributor of Consumer ElectronicsLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.38%, Secured Debt (Maturity - March 31, 2023) (8)1 month LIBOR6,435
6,320
6,320
 Preferred Member Units (863 units) (16)
2,116
2,116
  8,436
8,436
Direct Marketing Solutions, Inc. (10) (13)Provider of Omni-Channel Direct Marketing ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.38%, Secured Debt (Maturity - February 13, 2023) (8)1 month LIBOR4,503
4,396
4,404
 Preferred Stock (2,100 shares)
2,100
3,725
  6,496
8,129
Freeport Financial Funds (9) (15)Investment PartnershipLP Interests (Freeport First Lien Loan Fund III, LP) (Fully diluted 6.00%) (16)$
$11,155
$10,980
Gamber-Johnson Holdings, LLC (10) (13)Manufacturer of Ruggedized Computer Mounting SystemsLIBOR Plus 7.50% (Floor 2.00%), Current Coupon 9.85%, Secured Debt (Maturity - June 24, 2021) (8)1 month LIBOR5,371
5,299
5,371
 Member Units (2,155 units) (16)
3,711
5,843
 Member Units (2,155 units) (16)
3,711
11,365
  9,461
11,693
  9,010
16,736
Guerdon Modular Holdings, Inc. (10) (13)Multi-Family and Commercial Modular Construction Company13.00% Secured Debt (Maturity - August 13, 2019)None2,677
2,644
2,660
Multi-Family and Commercial Modular Construction Company13.00% Secured Debt (Maturity - March 1, 2019)None3,147
3,124
3,001
 Common Stock (53,008 shares)
746

 Common Stock (53,008 shares)
746

 Class B Preferred Stock (101,250 shares)
285

 Class B Preferred Stock (101,250 shares)
285

  3,675
2,660
  4,155
3,001
Gulf Publishing Investor, LLC (10) (13)Energy Focused Media and Publishing12.50% Secured Debt (Maturity - April 29, 2021)None3,200
3,151
3,151
Gulf Publishing Holdings, LLC (10) (13)Energy Industry Focused Media and Publishing12.50% Secured Debt (Maturity - April 29, 2021)None3,166
3,131
3,131
 LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.86%, Secured Debt (Maturity - September 30, 2020) (8)1 month LIBOR20
20
20
 Member Units (920 units)
920
1,030
 Member Units (781 shares)
920
1,210
  4,051
4,161
  4,091
4,381
Harris Preston Fund Investments (15) (16)Investment PartnershipLP Interests (HPEP 3, LP) (Fully diluted 9.60%) (9)
943
943
 LP Interests (2717 MH, LP) (Fully diluted 7.00%)
536
536
  1,479
1,479
Harris Preston Fund Investments (9) (15)Investment PartnershipLP Interests (HPEP 3, LP) (Fully diluted 8.20%) (16)
1,733
1,733
   LP Interests (2717 MH, LP) (Fully diluted 49.30%) (16)
1,040
1,133
    2,773
2,866
Hawk Ridge Systems, LLC (9) (10) (13)Value-Added Reseller of Engineering Design and Manufacturing Solutions11.00% Secured Debt (Maturity - December 2, 2021)None$3,575
$3,513
$3,574
Value-Added Reseller of Engineering Design and Manufacturing Solutions10.50% Secured Debt (Maturity - December 2, 2021)None3,575
3,526
3,575
 Preferred Member Units (56 units) (16)
713
950
 Preferred Member Units (56 units) (16)
713
1,815
 Preferred Member Units (HRS Services, ULC) (56 units) (16)
38
50
 Preferred Member Units (HRS Services, ULC) (56 units) (16)
38
95
 

4,264
4,574
  4,277
5,485
HW Temps LLC (8) (10) (13)Temporary Staffing SolutionsLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.36%, Secured Debt (Maturity - July 2, 2020)1 month LIBOR2,494
2,454
2,454
HW Temps LLC (10) (13)Temporary Staffing SolutionsLIBOR Plus 13.00% (Floor 1.00%), Current Coupon 15.35%, Secured Debt (Maturity - July 2, 2020) (8)1 month LIBOR2,494
2,469
2,484
 Preferred Member Units (800 shares) (16)
986
985
 Preferred Member Units (800 units) (16)
986
986
  3,440
3,439
  3,455
3,470
Market Force Information, Inc. (8)(10)(13)Provider of Customer Experience Management ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 12.48%, Secured Debt (Maturity - July 28, 2022)3 month LIBOR5,840
5,732
5,732
KMC Investor, LLC (10) (13)Precision Metal Parts Manufacturing11.50% Secured Debt (Maturity - October 31, 2023)None7,000
6,795
6,795
 Member Units (170,000 units)
3,675
3,675
 11.50% Secured Debt (Maturity - October 31, 2020)None266
259
259
  9,407
9,407
 9.00% Secured Debt (Maturity - October 31, 2048)None1,001
991
991
M.H. Corbin, Inc. (10) (13)Manufacturer and Distributor of Traffic Safety Products13.00% Secured Debt (Maturity - August 31, 2020)None3,150
3,130
3,130
 Preferred Member Units (1,000 units)
1,500
1,500
 Member Units (145 units)
248
248
  4,630
4,630
 Member Units (KMC RE Investor, LLC) (200 units)
3,060
3,060
Mystic Logistics, Inc. (10) (13)Logistics and Distribution Services Provider for Large Volume Mailers12.00% Secured Debt (Maturity - August 15, 2019)None1,942
1,914
1,916
  11,353
11,353
Market Force Information, Inc. (10) (13)Provider of Customer Experience Management ServicesLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.74%, Secured Debt (Maturity - July 28, 2022) (8)1 month LIBOR5,700
5,617
5,617
 LIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.74%, Secured Debt (Maturity - July 28, 2022) (8)1 month LIBOR50
50
50
 Member Units (170,000 units)
3,675
3,275
  9,342
8,942
M.H. Corbin Holding LLC (10) (13)Manufacturer and Distributor of Traffic Safety Products10.00% Current / 3.00% PIK Secured Debt (Maturity - August 31, 2020) (18)None3,066
3,032
2,934
 Preferred Member Units (1,000 units)
1,500
250
  4,532
3,184
Mystic Logistics Holdings, LLC (10) (13)Logistics and Distribution Services Provider for Large Volume Mailers12.00% Secured Debt (Maturity - August 15, 2019)None1,884
1,871
1,877
 Common Stock (1,468 shares) (16)
680
52
  2,551
1,929
NexRev, LLC (10) (13)Provider of Energy Efficiency Products & Services11.00% Secured Debt (Maturity - February 28, 2023)None$4,360
$4,276
$4,322
 Common Stock (1,468 shares) (16)
680
1,705
 Preferred Member Units (21,600,000 units) (16)
1,720
1,972
  2,594
3,621
  5,996
6,294
NuStep, LLC (10) (13)Designer, Manufacturer and Distributor of Fitness Equipment12.00% Secured Debt (Maturity - January 31, 2022)None5,150
5,047
5,048
Designer, Manufacturer and Distributor of Fitness Equipment12.00% Secured Debt (Maturity - January 31, 2022)None5,150
5,072
5,073
 Preferred Member Units (102 units)
2,550
2,550
 Preferred Member Units (102 units)
2,550
2,550
  7,597
7,598
  7,622
7,623
SoftTouch Medical Holdings LLC (8) (10) (13)Home Provider of Pediatric Durable Medical EquipmentLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - October 31, 2019)1 month LIBOR1,260
1,250
1,260
SI East, LLC (10) (13)Rigid Industrial Packaging Manufacturing10.25% Secured Debt (Maturity - August 31, 2023)None11,750
11,571
11,582
 Preferred Member Units (52 units)
2,000
2,000
  13,571
13,582
Tedder Acquisition, LLC (10) (13)Manufacturer of Firearm Holsters and Accessories12.00% Secured Debt (Maturity - August 31, 2023)None4,100
3,983
3,983
 Member Units (785 units) (16)
870
1,781
 12.00% Secured Debt (Maturity - August 31, 2020)None120
118
118
  2,120
3,041
 Preferred Member Units (110 units)
1,869
1,869
     5,970
5,970
Subtotal Affiliate Investments (4) (7% of total investments at fair value)  $71,708
$76,862
   
Subtotal Affiliate Investments (4) (13% of total investments at fair value)Subtotal Affiliate Investments (4) (13% of total investments at fair value)  $143,372
$149,323
  



  
Non-Control/Non-Affiliate Investments (5)
AAC Holding Corp. (8)Substance Abuse Treatment Service ProviderLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - June 30, 2023)3 month LIBOR$11,751
$11,475
$11,810
AAC Holdings Inc. (8)Substance Abuse Treatment Service ProviderLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.28%, Secured Debt (Maturity - June 30, 2023)3 month LIBOR$14,500
$14,245
$14,463
Adams Publishing Group, LLC (8) (11)Local Newspaper OperatorLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity - November 3, 2020)3 month LIBOR10,341
10,123
10,147
Local Newspaper OperatorLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.93%, Secured Debt (Maturity - July 3, 2023)3 month LIBOR8,108
7,942
7,942
ADS Tactical, Inc. (8) (11)Value-Added Logistics and Supply Chain Solutions ProviderLIBOR Plus 7.50% (Floor 0.75%), Current Coupon 9.19%, Secured Debt (Maturity - December 31, 2022)3 month LIBOR12,981
12,671
12,801
Aethon United BR, LP (8)(11)Oil & Gas Exploration & ProductionLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.16%, Secured Debt (Maturity - September 8, 2023) (14)1 month LIBOR3,438
3,388
3,388
Ahead, LLC (8) (11)IT Infrastructure Value Added ResellerLIBOR Plus 6.50%, Current Coupon 8.20%, Secured Debt (Maturity - November 2, 2020)3 month LIBOR7,374
7,233
7,420
Allflex Holdings III Inc. (8)Manufacturer of Livestock Identification ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.36%, Secured Debt (Maturity - July 19, 2021) (14)3 month LIBOR13,964
14,054
14,075
American Scaffold Holdings, Inc. (8) (11)Marine Scaffolding Service ProviderLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.19%, Secured Debt (Maturity - March 31, 2022)3 month LIBOR7,031
6,948
6,996
   PRIME Plus 4.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - July 3, 2023)PRIME4,250
4,160
4,160
    12,102
12,102
American Teleconferencing Services, Ltd. (8)Provider of Audio Conferencing and Video Collaboration SolutionsLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity - December 8, 2021)2 month LIBOR$9,532
$8,684
$9,407
ADS Tactical, Inc. (8) (11)Value-Added Logistics and Supply Chain Solutions Provider to the Defense IndustryLIBOR Plus 6.25% (Floor 0.75%), Current Coupon 8.77%, Secured Debt (Maturity - July 26, 2023)1 month LIBOR16,416
16,319
15,306
Aethon United BR, LP (8) (11)Oil & Gas Exploration & ProductionLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.14%, Secured Debt (Maturity - September 8, 2023) (14)1 month LIBOR4,063
4,011
3,817
Allen Media, LLC (8)Operator of Cable Television NetworksLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.21%, Secured Debt (Maturity - August 30, 2023)3 month LIBOR17,142
16,671
16,650
Allflex Holdings III Inc. (8)Manufacturer of Livestock Identification ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.48%, Secured Debt (Maturity - July 19, 2021) (14)3 month LIBOR13,232
13,321
13,125
American Nuts, LLC (8) (11)Roaster, Mixer and Packager of Bulk Nuts and SeedsLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - April 10, 2023)3 month LIBOR11,194
10,965
10,475
 LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.85%, Secured Debt (Maturity - June 6, 2022) (14)3 month LIBOR5,571
5,335
5,260
 LIBOR Plus 8.50% (Floor 1.00%), PIK 9.50%, Secured Debt (Maturity - April 10, 2023)1 month LIBOR1,125
1,107
1,107
  14,019
14,667
  12,072
11,582
American Scaffold Holdings, Inc. (8) (11)Marine Scaffolding Service ProviderLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.30%, Secured Debt (Maturity - March 31, 2022)3 month LIBOR6,656
6,593
6,623
American Teleconferencing Services, Ltd. (8)Provider of Audio Conferencing and Video Collaboration SolutionsLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.09%, Secured Debt (Maturity - December 8, 2021)3 month LIBOR14,586
13,938
12,180
Apex Linen Service, Inc. (10) (13)Industrial Launderers16.00% Secured Debt (Maturity - October 30, 2022)None3,604
3,552
3,552
Industrial Launderers16.00% Secured Debt (Maturity - October 30, 2022)None3,604
3,560
3,560
 LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.36%, Secured Debt (Maturity - October 30, 2022) (8)1 month LIBOR600
600
600
 LIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.35%, Secured Debt (Maturity - October 30, 2022) (8)1 month LIBOR600
600
600
  4,152
4,152
  4,160
4,160
APTIM CorpEngineering, Construction and Procurement7.75% Secured Debt (Maturity - June 15, 2025)None$6,952
$6,163
$5,284
Arcus Hunting, LLC (8) (11)Manufacturer of Bowhunting and Archery Products and AccessoriesLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.34%, Secured Debt (Maturity - November 13, 2019)1 month LIBOR7,696
7,618
7,690
Manufacturer of Bowhunting and Archery Products and AccessoriesLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.40%, Secured Debt (Maturity - November 13, 2019)1 month LIBOR7,493
7,459
7,492
Arise Holdings, Inc. (11)Tech-Enabled Business Process OutsourcingPreferred Stock (1,000,000 shares)
1,000
1,704
ASC Ortho Management Company, LLC (11)Provider of Orthopedic ServicesLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.90%, Secured Debt (Maturity - August 31, 2023) (8)3 month LIBOR4,660
4,560
4,574
 13.25% PIK Secured Debt (Maturity - December 1, 2023) (14)None1,571
1,532
1,532
  6,092
6,106
ATI Investment Sub, Inc. (8)Manufacturer of Solar Tracking SystemsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.82%, Secured Debt (Maturity - June 22, 2021)1 month LIBOR7,364
7,221
7,346
Manufacturer of Solar Tracking SystemsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.76%, Secured Debt (Maturity - June 22, 2021)1 month LIBOR4,135
4,062
3,718
ATX Networks Corp. (8) (9)Provider of Radio Frequency Management EquipmentLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.33%, Current Coupon plus PIK 8.33%, Secured Debt (Maturity - June 11, 2021)3 month LIBOR14,474
14,253
14,384
Provider of Radio Frequency Management EquipmentLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.39%, Current Coupon plus PIK 9.39%, Secured Debt (Maturity - June 11, 2021)3 month LIBOR13,982
13,827
13,284
BarFly Ventures, LLC (11)Casual Restaurant Group12.00% Secured Debt (Maturity - August 31, 2020)None2,905
2,863
2,905
Casual Restaurant Group12.00% Secured Debt (Maturity - August 31, 2020)None3,395
3,362
3,339
 Warrants (.410 equivalent units, Expiration - August 31, 2025)
158
175
 Warrants (.410 equivalent units, Expiration - August 31, 2025)
158
137
 Options (.731 equivalent units)
133
309
 Options (.99 equivalent units)
202
313
  3,154
3,389
  3,722
3,789
BBB Tank Services, LLC (10) (13)Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market15.00% Secured Debt (Maturity - April 8, 2021)None1,000
987
969
Maintenance, Repair and Construction Services to the Above-Ground Storage Tank MarketLIBOR Plus 11.00% (Floor 1.00%), Current Coupon 13.35%, Secured Debt (Maturity - April 8, 2021) (8)1 month LIBOR1,000
992
962
 LIBOR Plus 9.50% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - April 9, 2018) (8)1 month LIBOR200
200
200
 Preferred Stock (non-voting)
28
28
 Member Units (200,000 units)
200
125
 Member Units (200,000 units)
200
58
  1,387
1,294
  1,220
1,048
Berry Aviation, Inc. (11)Airline Charter Service OperatorCurrent Coupon 13.75%, Secured Debt (Maturity - January 30, 2020) (14)None1,407
1,395
1,407
Charter Airline Services10.50% Current / 1.50% PIK, Secured Debt (Maturity - January 6, 2024) (14)None4,480
4,417
4,438
 Common Stock (138 shares)
100
252
 Preferred Member Units (Berry Acquisition, LLC) (1,548,387 units, 8.00% cumulative) (16)1,548
1,609
  1,495
1,659
  5,965
6,047
BigName Commerce, LLC (8) (11)Provider of Envelopes and Complimentary Stationery ProductsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.59%, Secured Debt (Maturity - May 11, 2022)1 month LIBOR2,488
2,460
2,460
Provider of Envelopes and Complimentary Stationery ProductsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.65%, Secured Debt (Maturity - May 11, 2022)1 month LIBOR2,462
2,441
2,370
Binswanger Enterprises, LLC (8) (11)Glass Repair and Installation Service ProviderLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.49%, Secured Debt (Maturity - March 9, 2022)3 month LIBOR15,267
15,002
15,135
Binswanger Enterprises, LLC (11)Glass Repair and Installation Service ProviderLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - March 9, 2022) (8)3 month LIBOR14,270
14,073
13,651
 Member Units (1,050,000 Class A units)
1,050
1,000
 Member Units (1,050,000 units)
1,050
1,330
 

16,052
16,135
  15,123
14,981
Bluestem Brands, Inc. (8)Multi-Channel Retailer of General MerchandiseLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.07%, Secured Debt (Maturity - November 6, 2020)3 month LIBOR13,005
12,836
9,158
Multi-Channel Retailer of General MerchandiseLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.02%, Secured Debt (Maturity - November 6, 2020)3 month LIBOR12,198
12,087
7,888
Boccella Precast Products, LLC (8) (10) (13)Manufacturer of Precast Hollow Core ConcreteLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.34%, Secured Debt (Maturity - June 30, 2022)1 month LIBOR4,100
4,005
4,100
Boccella Precast Products, LLC (10) (13)Manufacturer of Precast Hollow Core ConcreteLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.40%, Secured Debt (Maturity - June 30, 2022) (8)1 month LIBOR3,931
3,856
3,931
 Member Units (540,000 units)
540
860
 Member Units (540,000 units) (16)
540
1,270
  4,545
4,960
  4,396
5,201
Brightwood Capital Fund Investments (9) (15)Investment PartnershipLP Interests (Brightwood Capital Fund III, LP) (Fully diluted 0.52%) (16)
4,075
3,443
Investment PartnershipLP Interests (Brightwood Capital Fund III, LP) (Fully diluted 1.60%) (16)
4,075
3,421
 LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 1.58%) (16)
2,037
2,037
 LP Interests (Brightwood Capital Fund IV, LP) (Fully diluted 0.80%) (16)
4,037
4,126
  6,112
5,480
  8,112
7,547
Brundage-Bone Concrete Pumping, Inc.Construction Services Provider10.38% Secured Debt (Maturity - September 1, 2023) (14)None12,000
12,074
12,720
Buca C, LLC (8) (10) (13)Casual Restaurant GroupLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.63%, Secured Debt (Maturity - June 30, 2020)1 month LIBOR$13,536
$13,386
$13,386
  
Buca C, LLC (10) (13)Casual Restaurant GroupLIBOR Plus 9.25% (Floor 1.00%), Current Coupon 11.63%, Secured Debt (Maturity - June 30, 2020) (8)1 month LIBOR$12,735
$12,648
$12,648
 Preferred Member Units (4 units, 6.00% cumulative) (16)
2,702
2,781
 Preferred Member Units (4 units, 6.00% cumulative) (16)
2,866
2,955
  16,088
16,167
  15,514
15,603
Cadence Aerospace, LLC (8) (11)Aerospace and DefenseLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.91%, Secured Debt (Maturity - November 14, 2023)3 month LIBOR15,000
14,853
14,853
Aerospace ManufacturingLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.06%, Secured Debt (Maturity - November 14, 2023)3 month LIBOR19,469
19,301
18,244
CAI Software, LLC (10) (13)Provider of Specialized Enterprise Resource Planning Software12.00% Secured Debt (Maturity - October 10, 2019)None1,021
1,005
1,021
Provider of Specialized Enterprise Resource Planning Software12.00% Secured Debt (Maturity - December 7, 2023)None2,720
2,715
2,720
 Member Units (16,339 units) (16)
163
807
 Member Units (16,742 units) (16)
188
679
  1,168
1,828
  2,903
3,399
CapFusion Holding, LLC (9) (10) (13)Business Lender13.00% Secured Debt (Maturity - March 25, 2021) (18)None1,669
1,394
468
CDHA Management, LLC (8) (11)Dental ServicesLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - December 5, 2021)3 month LIBOR5,365
5,270
5,365
Central Security Group, Inc. (8)Security Alarm Monitoring Service ProviderLIBOR Plus 5.63% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity - October 6, 2021)1 month LIBOR7,481
7,462
7,518
Cenveo CorporationProvider of Commercial Printing, Envelopes, Labels, Printed Office Products6.00% Secured Debt (Maturity - August 1, 2019)None15,000
13,706
10,650
Provider of Digital Marketing Agency ServicesLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.54%, Secured Debt (Maturity - June 7, 2023) (8)2 month LIBOR4,995
4,618
4,742
Charlotte Russe, Inc. (8)Fast-Fashion Retailer to Young WomenLIBOR Plus 5.50% (Floor 1.25%), Current Coupon 6.89%, Secured Debt (Maturity - May 22, 2019)3 month LIBOR14,972
14,863
6,045
 Common Stock (138,889 shares)4,163
2,153
  8,781
6,895
Clarius BIGS, LLC (11) (18)Prints & Advertising Film Financing15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None2,140
1,882
62
Prints & Advertising Film Financing15.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None2,128
1,870
32
 20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None773
680
22
 20.00% PIK Secured Debt (Maturity - January 5, 2015) (18)None770
677
12
  2,562
84
  2,547
44
Clickbooth.com, LLC (8) (11)Provider of Digital Advertising Performance Marketing SolutionsLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.01%, Secured Debt (Maturity - December 5, 2022)1 month LIBOR3,000
2,941
2,941
Provider of Digital Advertising Performance Marketing SolutionsLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - December 5, 2022)3 month LIBOR2,925
2,876
2,750
Construction Supply Investments, LLC (11)Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry ContractorsLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity - June 30, 2023) (8)1 month LIBOR7,125
7,090
7,090
Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry ContractorsLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.62%, Secured Debt (Maturity - June 30, 2023) (8)2 month LIBOR15,422
15,351
15,384
 Member units (20,000 units)
3,723
3,723
 Member units (42,207 units)
4,221
4,290
  10,813
10,813
  19,572
19,674
ContextMedia Health, LLC (8)Provider of Healthcare Media ContentLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.13%, Secured Debt (Maturity - December 23, 2021)1 month LIBOR9,500
8,685
6,413
CTVSH, PLLC (8) (11) (13)Emergency Care and Specialty Service Animal HospitalLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.48%, Secured Debt (Maturity - August 3, 2022)1 month LIBOR2,963
2,907
2,907
Emergency Care and Specialty Service Animal HospitalLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.74%, Secured Debt (Maturity - August 3, 2022)1 month LIBOR2,813
2,768
2,735
Datacom, LLC (10) (13)Technology and Telecommunications Provider5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019)None1,366
1,357
1,229
Datacom, LLC (10) (13) (18)Technology and Telecommunications Provider5.25% Current / 5.25% PIK, Current Coupon 10.50% Secured Debt (Maturity - May 30, 2019) (18)None1,384
1,377
1,082
 8.00% Secured Debt (Maturity - May 30, 2018)None175
175
175
 8.00% Secured Debt (Maturity - May 30, 2018) (18)None200
200
188
 Class A Preferred Member Units (1,530 units, 15.00% cumulative) (16)
131
81
 Class A Preferred Member Units (1,530 units)
144

 Class B Preferred Member Units (717 units)
670

 Class B Preferred Member Units (717 units)
670

  2,333
1,485
  2,391
1,270
Digital River, Inc. (8)Provider of Outsourced e-Commerce Solutions and ServicesLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.08%, Secured Debt (Maturity - February 12, 2021)3 month LIBOR8,946
8,898
8,969
Provider of Outsourced e-Commerce Solutions and ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - February 12, 2021)3 month LIBOR9,779
9,710
9,681
DTE Enterprises, LLC (11)Industrial Powertrain Repair and ServicesLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.12%, Secured Debt (Maturity - April 13, 2023) (8)3 month LIBOR12,491
12,263
11,593
 Class AA Preferred Member Units (non-voting) (16)
758
778
 Class A Preferred Member Units (776,316 units) (16)
776
1,300
  13,797
13,671
Dynamic Communities, LLC (8) (11)Developer of Business Events and Online Community GroupsLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.80%, Secured Debt (Maturity - July 17, 2023)3 month LIBOR5,565
5,460
5,462
Elite SEM, Inc. (8) (11)Provider of Digital Marketing Agency ServicesLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.27%, Secured Debt (Maturity - February 1, 2022)3 month LIBOR6,875
6,749
6,749
Epic Y-Grade Services, LP (8)NGL Transportation & StorageLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.02%, Secured Debt (Maturity - June 13, 2024)1 month LIBOR17,500
17,174
16,625
Evergreen Skills Lux S.á r.l.
(d/b/a Skillsoft) (8) (9)
Technology-Based Performance Support SolutionsLIBOR Plus 8.25% (Floor 1.00%), Current Coupon 9.82%, Secured Debt (Maturity - April 28, 2022) (14)1 month LIBOR10,901
10,510
9,725
Technology-Based Performance Support SolutionsLIBOR Plus 8.25% (Floor 1.00%), Current Coupon 10.77%, Secured Debt (Maturity - April 28, 2022) (14)1 month LIBOR$10,900
$10,585
$6,123
Extreme Reach, Inc. (8)Integrated TV and Video Advertising PlatformLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.59%, Secured Debt (Maturity - February 7, 2020)3 month LIBOR10,411
10,397
10,398
Integrated TV and Video Advertising PlatformLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.78%, Secured Debt (Maturity - February 7, 2020)1 month LIBOR16,152
16,145
16,065
Felix Investments Holdings II, LLC (8) (11)Oil and Gas Exploration and ProductionLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 7.90%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR$3,333
$3,267
$3,267
Oil and Gas Exploration and ProductionLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.10%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR3,333
3,279
3,141
Flavors Holdings, Inc. (8)Global Provider of Flavoring and Sweetening Products and SolutionsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.44%, Secured Debt (Maturity - April 3, 2020)3 month LIBOR12,407
11,853
11,507
Global Provider of Flavoring and Sweetening Products and SolutionsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity - April 3, 2020)3 month LIBOR11,666
11,367
10,849
GoWireless Holdings, Inc. (8) (12)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.16%, Secured Debt (Maturity - December 22, 2024)3 month LIBOR15,000
14,850
14,888
GST Autoleather, Inc. (8)Automotive Leather ManufacturerPrime Plus 6.50% (Floor 2.00%), Current Coupon 11.00%, Secured Debt (Maturity - July 10, 2020)PRIME17,384
16,898
13,994
GI KBS Merger Sub LLC (8)Outsourced Janitorial Service ProviderLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.02%, Secured Debt (Maturity - April 29, 2022) (14)3 month LIBOR14,700
14,634
14,828
Good Source Solutions, Inc. (8) (11)Specialized Food DistributorLIBOR Plus 8.34% (Floor 1.00%), Current Coupon 11.14%, Secured Debt (Maturity - June 29, 2023)3 month LIBOR5,000
4,952
4,952
GoWireless Holdings, Inc. (8)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 9.02%, Secured Debt (Maturity - December 22, 2024)3 month LIBOR15,740
15,609
15,313
HDC/HW Intermediate Holdings, LLC (8) (11)Managed Services and Hosting ProviderLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.29%, Secured Debt (Maturity - December 21, 2023)3 month LIBOR1,799
1,759
1,763
Hoover Group, Inc. (8) (9) (11)Provider of Storage Tanks and Related Products to the Energy and Petrochemical MarketsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 9.90%, Secured Debt (Maturity - January 28, 2021)3 month LIBOR14,697
14,089
13,815
 Prime Plus 6.50% (Floor 2.25%), Current Coupon 11.00%, Secured Debt (Maturity - April 5, 2018)PRIME3,377
3,299
3,326
 LIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.71%, Secured Debt (Maturity - January 28, 2020)3 month LIBOR5,125
4,664
4,657
  20,197
17,320
  18,753
18,472
Guitar Center, Inc.Musical Instruments Retailer6.50% Secured Debt (Maturity - April 15, 2019)None15,015
14,490
13,889
Hojeij Branded Foods, LLC (8) (11)Multi-Airport, Multi-Concept Restaurant OperatorLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.57%, Secured Debt (Maturity - July 20, 2022)1 month LIBOR12,107
12,000
12,107
Hoover Group, Inc. (8) (9) (11)Provider of Storage Tanks and Related Products to the Energy and Petrochemical MarketsLIBOR Plus 7.25% (Floor 1.00%), Current Coupon 8.70%, Secured Debt (Maturity - January 28, 2021)3 month LIBOR14,848
14,030
13,656
Hunter Defense Technologies, Inc. (8)Provider of Military and Commercial Shelters and SystemsLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.35%, Secured Debt (Maturity - August 5, 2019)3 month LIBOR14,552
14,161
14,389
Hunter Defense Technologies, Inc. (8) (11)Provider of Military and Commercial Shelters and SystemsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.80%, Secured Debt (Maturity - March 29, 2023)3 month LIBOR8,811
8,531
8,262
Hydrofarm Holdings, LLC (8) (11)Wholesaler of Horticultural ProductsLIBOR Plus 7.00%, Current Coupon 8.49%, Secured Debt (Maturity - May 12, 2022)1 month LIBOR6,666
6,546
6,657
Wholesaler of Horticultural ProductsLIBOR Plus 10.00%, Current Coupon 3.62% / 8.61% PIK, Current Coupon Plus PIK 12.30%, Secured Debt (Maturity - May 12, 2022)1 month LIBOR7,214
7,084
5,643
iEnergizer Limited (8) (9)Provider of Business Outsourcing SolutionsLIBOR Plus 6.00% (Floor 1.25%), Current Coupon 7.57%, Secured Debt (Maturity - May 1, 2019)1 month LIBOR10,644
10,408
10,618
Provider of Business Outsourcing SolutionsLIBOR Plus 6.00% (Floor 1.25%), Current Coupon 8.53%, Secured Debt (Maturity - May 1, 2019)1 month LIBOR12,086
12,050
12,101
Implus Footcare, LLC (8) (11)Provider of Footwear and Other AccessoriesLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 8.44%, Secured Debt (Maturity - April 30, 2021)3 month LIBOR14,491
14,299
14,394
Provider of Footwear and Related AccessoriesLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.55%, Secured Debt (Maturity - April 30, 2021)3 month LIBOR17,153
17,000
16,762
Independent Pet Partners Intermediate Holdings, LLC (11)Omnichannel Retailer of Specialty Pet ProductsLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 11.90%, Secured Debt (Maturity - November 19, 2023) (8)6 month LIBOR1,589
1,557
1,557
 Member Units (1,191,667 units)
1,192
1,192
  2,749
2,749
Industrial Services Acquisitions, LLC (11)Industrial Cleaning Services11.25% Current / 0.75% PIK, Current Coupon 12.00%, Unsecured Debt (Maturity - December 17, 2022) (17)None10,603
10,429
10,603
Industrial Cleaning Services6.00% Current / 7.00% PIK, Current Coupon 13.00%, Unsecured Debt (Maturity - December 17, 2022) (17)None11,198
11,048
10,246
 Member Units (Industrial Services Investments, LLC) (2,100,000 units)
2,100
1,890
 Member Units (Industrial Services Investments, LLC) (336 units; 10.00% cumulative)
202
202
  12,529
12,493
 Member Units (Industrial Services Investments, LLC) (2,100,000 units)
2,100
490
  13,350
10,938
Inn of the Mountain Gods Resort and CasinoHotel & Casino Owner & Operator9.25% Secured Debt (Maturity - November 30, 2020)None10,749
10,620
9,782
Hotel & Casino Owner & Operator9.25% Secured Debt (Maturity - November 30, 2020) (14)None8,254
8,254
7,882
iPayment, Inc. (8)Provider of Merchant AcquisitionLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.62%, Secured Debt (Maturity - April 11, 2023)3 month LIBOR11,970
11,970
12,090
iQor US Inc. (8)Business Process Outsourcing Services ProviderLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity - April 1, 2021)3 month LIBOR7,678
7,338
7,649
IronGate Energy Services, LLC (18)Oil and Gas Services11.00% Secured Debt (Maturity - July 1, 2018) (18)None5,825
5,827
2,039
Intermedia Holdings, Inc. (8)Unified Communications as a ServiceLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - July 19, 2025)1 month LIBOR11,571
11,461
11,557
Isagenix International, LLC (8)Direct Marketer of Health and Wellness ProductsLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.55%, Secured Debt (Maturity - June 14, 2025)3 month LIBOR6,268
6,208
6,095
JAB Wireless, Inc. (8) (11)Fixed Wireless Broadband ProviderLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.39%, Secured Debt (Maturity - May 2, 2023)1 month LIBOR14,888
14,753
13,987
Jacent Strategic Merchandising, LLC (8) (11)General Merchandise DistributionLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity -September 16, 2020)3 month LIBOR$10,740
$10,641
$10,688
Jackmont Hospitality, Inc. (8) (11)Franchisee of Casual Dining RestaurantsLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.26%, Secured Debt (Maturity - May 26, 2021)1 month LIBOR8,329
8,314
8,329
Jacuzzi Brands LLC (8)Manufacturer of Bath and Spa ProductsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - June 28, 2023)1 month LIBOR5,775
5,681
5,746
Joerns Healthcare, LLC (8)Manufacturer and Distributor of Health Care Equipment & SuppliesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.48%, Secured Debt (Maturity - May 9, 2020)3 month LIBOR11,119
10,948
10,359
Manufacturer and Distributor of Health Care Equipment & SuppliesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.71%, Secured Debt (Maturity - May 9, 2020)3 month LIBOR11,119
11,016
9,965
Kellermeyer Bergensons Services, LLC (8)Outsourced Janitorial Services to Retail/Grocery CustomersLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.88%, Secured Debt (Maturity - April 29, 2022) (14)3 month LIBOR14,700
14,618
14,241
Keypoint Government Solutions, Inc. (8) (11)Provider of Pre-Employment Screening ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.35%, Secured Debt (Maturity - April 18, 2024)3 month LIBOR12,031
11,921
12,031
LaMi Products, LLC (8) (11)General Merchandise DistributionLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.05%, Secured Debt (Maturity -September 16, 2020)3 month LIBOR11,110
10,988
11,085
Larchmont Resources, LLC (8)Oil & Gas Exploration & ProductionLIBOR Plus 9.00% (Floor 1.00%), Current Coupon 10.53%, Secured Debt (Maturity - August 7, 2020)3 month LIBOR4,118
4,118
4,076
Knight Energy Services LLC (11)Oil and Gas Equipment & Services8.50% Secured Debt (Maturity - February 9, 2024)None760
760
760
 Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)
601
1,658
 Class A-2 Shares (25,692 units)
1,843
1,843
  4,719
5,734
  2,603
2,603
LJ Host Merger Sub, Inc. (8)Managed Services and Hosting ProviderLIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.44%, Secured Debt (Maturity - December 13, 2019)3 month LIBOR$16,137
$15,744
$15,714
Larchmont Resources, LLC (9)Oil & Gas Exploration & ProductionLIBOR Plus 9.00% (Floor 1.00%) PIK, 11.77% PIK, Secured Debt (Maturity - August 7, 2020) (8)3 month LIBOR3,898
3,898
3,820
 LIBOR Plus 6.75% (Floor 1.25%), Current Coupon 8.44%, Secured Debt (Maturity - December 13, 2018)3 month LIBOR2,433
2,358
2,293
 Member units (Larchmont Intermediate Holdco, LLC) (4,806 units)
601
1,201
  18,102
18,007
  4,499
5,021
Logix Acquisition Company, LLC (8) (11)Competitive Local Exchange CarrierLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 7.28%, Secured Debt (Maturity - August 9, 2024) (23)1 month LIBOR9,730
9,632
9,839
Competitive Local Exchange CarrierLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.27%, Secured Debt (Maturity - December 22, 2024) (23)1 month LIBOR9,628
9,542
9,532
LSF9 Atlantis Holdings, LLC (8)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.36%, Secured Debt (Maturity - May 1, 2023)1 month LIBOR13,825
13,722
13,897
Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.38%, Secured Debt (Maturity - May 1, 2023)1 month LIBOR13,475
13,390
12,863
Lulu’s Fashion Lounge, LLC (8)(11)Fast Fashion E-Commerce RetailerLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.57%, Secured Debt (Maturity - August 28, 2022)1 month LIBOR6,690
6,496
6,766
Lulu’s Fashion Lounge, LLC (8) (11)Fast Fashion E-Commerce RetailerLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 9.52%, Secured Debt (Maturity - August 28, 2022)1 month LIBOR6,179
6,028
5,994
Meisler Operating, LLC (10) (13)Provider of Short Term Trailer and Container RentalLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.84%, Secured Debt (Maturity - June 7, 2022) (8)3 month LIBOR4,200
4,095
4,104
Provider of Short Term Trailer and Container RentalLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.90%, Secured Debt (Maturity - June 7, 2022) (8)1 month LIBOR5,120
5,015
5,022
 Member Units (Milton Meisler Holdings, LLC) (8,000 units)
800
848
 Member Units (Milton Meisler Holdings, LLC) (12,139 units)
1,214
1,445
  4,895
4,952
  6,229
6,467
MHVC Acquisition Corp. (8)Provider of Differentiated Information Solutions, Systems Engineering and AnalyticsLIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.95%, Secured Debt (Maturity - April 29, 2024)1 month LIBOR10,448
10,399
10,578
Provider of Differentiated Information Solutions, Systems Engineering and AnalyticsLIBOR Plus 5.25% (Floor 1.00%), Current Coupon 8.06%, Secured Debt (Maturity - April 29, 2024)3 month LIBOR7,860
7,817
7,664
Minute Key, Inc. (10) (13)Operator of Automated Key Duplication KioskWarrants (359,352 equivalent units, Expiration - May 20, 2025)
70
293
NBG Acquisition, Inc. (8)Wholesaler of Home Decor ProductsLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity - April 26, 2024)1 month LIBOR4,402
4,336
4,452
Mills Fleet Farm Group LLC (8) (11)Omnichannel Retailer of Work, Farm and Lifestyle MerchandiseLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.77%, Secured Debt (Maturity - October 24, 2024)1 month LIBOR15,000
14,707
15,000
Mobileum, Inc. (8) (11)Provider of Big Data Analytics to Telecom Service ProvidersLIBOR Plus 10.25% (Floor 0.75%), Current Coupon 13.06%, Secured Debt (Maturity - May 1, 2022) (14)2 month LIBOR7,500
7,429
7,429
New Era Technology, Inc. (8) (11)Managed Services and Hosting ProviderLIBOR Plus 6.50% (Floor 1.00%), Current Coupon 8.99%, Secured Debt (Maturity - June 22, 2023)1 month LIBOR7,654
7,518
7,616
New Media Holdings II LLC (8) (9)Local Newspaper OperatorLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.82%, Secured Debt (Maturity - July 14, 2022)1 month LIBOR17,033
16,762
17,176
Local Newspaper OperatorLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.77%, Secured Debt (Maturity - July 14, 2022)1 month LIBOR9,718
9,622
9,645
NNE Issuer, LLC (8) (11)Oil & Gas Exploration & ProductionLIBOR Plus 8.00%, Current Coupon 9.49%, Secured Debt (Maturity - March 2, 2022)3 month LIBOR11,958
11,851
11,854
NNE Partners, LLC (8) (11)Oil & Gas Exploration & ProductionLIBOR Plus 8.00%, Current Coupon 10.74%, Secured Debt (Maturity - March 2, 2022)3 month LIBOR20,417
20,271
19,572
North American Lifting Holdings, Inc. (8)Crane Service ProviderLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.19%, Secured Debt (Maturity - November 27, 2020)3 month LIBOR6,310
5,666
5,912
Crane Service ProviderLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity - November 27, 2020)3 month LIBOR6,244
5,803
5,701
Novetta Solutions, LLC (8)Provider of Advanced Analytics Solutions for Defense AgenciesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.70%, Secured Debt (Maturity - October 17, 2022)3 month LIBOR9,625
9,382
9,364
Provider of Advanced Analytics Solutions for Defense AgenciesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.53%, Secured Debt (Maturity - October 17, 2022)1 month LIBOR14,977
14,648
14,602
NTM Acquisition Corp. (8)Provider of B2B Travel Information ContentLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.94%, Secured Debt (Maturity - June 7, 2022)3 month LIBOR10,908
10,797
10,853
Provider of B2B Travel Information ContentLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 8.96%, Secured Debt (Maturity - June 7, 2022)3 month LIBOR4,092
4,060
4,051
Paris Presents, Inc. (8)Branded Cosmetic and Bath AccessoriesLIBOR Plus 8.75% (Floor 1.00%), Current Coupon 10.32%, Secured Debt (Maturity - December 31, 2021) (14)1 month LIBOR10,000
9,899
9,950
Parq Holdings, LP (8) (9)Hotel and Casino OperatorLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 9.19%, Secured Debt (Maturity - December 17, 2020)3 month LIBOR12,469
12,317
12,547
Pasha Group (8)Diversified Logistics and Transportation ProvidedLIBOR Plus 7.50% (Floor 1.00%), Current Coupon 10.06%, Secured Debt (Maturity - January 26, 2023)2 month LIBOR10,938
10,642
11,006
  
Permian Holdco 2, Inc.Storage Tank Manufacturer14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)None765
765
765
Storage Tank Manufacturer14.00% PIK Unsecured Debt (Maturity - October 15, 2021) (17)None$990
$990
$990
 Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 units) (12.00% Cumulative) (16)
1,997
2,449
 Series A Preferred Shares (Permian Holdco 1, Inc.) (386,255 shares)
1,997
2,299
 Common Shares (Permian Holdco 1, Inc.) (386,255 units)

350
 Common Shares (Permian Holdco 1, Inc.) (386,255 shares)


  2,762
3,564
  2,987
3,289
Permian Holdings, Inc.Storage Tank Manufacturer10.50% Secured Debt (Maturity - January 15, 2018)None1,000
968
290
Pernix Therapeutics Holdings, Inc. (11)Pharmaceutical Royalty - Anti-Migraine12.00% Secured Debt (Maturity - August 1, 2020)None2,737
2,717
1,725
Pharmaceutical Royalty12.00% Secured Debt (Maturity - August 1, 2020)None2,652
2,639
1,782
PPC/Shift, LLC (8) (11)Provider of Digital Solutions to Automotive IndustryLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.69%, Secured Debt (Maturity - December 22, 2021)3 month LIBOR6,825
6,704
6,825
Pier 1 Imports, Inc. (8)Decorative Home Furnishings RetailerLIBOR Plus 3.50% (Floor 1.00%), Current Coupon 6.38%, Secured Debt (Maturity - April 30, 2021)3 month LIBOR7,455
7,164
5,358
PricewaterhouseCoopers Public Sector LLP (8)Provider of Consulting Services to GovernmentsLIBOR Plus 7.50%, Current Coupon 9.74%, Secured Debt (Maturity - May 1, 2026) (14)1 month LIBOR13,100
13,054
13,166
Prowler Acquisition Corporation (8)Specialty Distributor to the Energy SectorLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 6.34%, Secured Debt (Maturity - January 28, 2020)3 month LIBOR12,412
11,199
11,854
Specialty Distributor to the Energy SectorLIBOR Plus 4.50% (Floor 1.00%), Current Coupon 7.30%, Secured Debt (Maturity - January 28, 2020)3 month LIBOR12,280
11,624
12,096
Renaissance Learning, Inc. (8)Technology-based K-12 Learning SolutionsLIBOR Plus 7.00% (Floor 1.00%), Current Coupon 8.69%, Secured Debt (Maturity - April 11, 2022) (14)3 month LIBOR$12,695
$12,359
$12,767
Resolute Industrial, LLC (8) (11)HVAC Equipment Rental and RemanufacturingLIBOR Plus 7.62% (Floor 1.00%), Current Coupon 8.95%, Secured Debt (Maturity - July 26, 2022) (24)3 month LIBOR17,086
16,679
16,774
 Common Stock (601 units)
750
750
  17,429
17,524
RGL Reservoir Operations, Inc. (9) (11)Oil & Gas Equipment & Services1.00% Current / 9.00% PIK Secured Debt (Maturity - December 23, 2024)None721
407
407
Resolute Industrial, LLC (11)HVAC Equipment Rental and RemanufacturingClass A units (601 units)
750
920
RM Bidder, LLC (11)Full-scale Film and Television Production and DistributionCommon Stock (1,854 units)
31
13
Scripted and Unscripted TV and Digital Programming ProviderCommon Stock (1,854 shares)
31
7
 Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)
284

 Series A Warrants (124,915 equivalent units, Expiration - October 20, 2025)
284

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


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


  315
13
  315
7
Salient Partners, LP (8)Provider of Asset Management ServicesLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 9.85%, Secured Debt (Maturity - June 9, 2021)3 month LIBOR11,042
10,748
10,711
Smart Modular Technologies, Inc. (8) (9) (11)Provider of Specialty Memory SolutionsLIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 7.66%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR14,625
14,351
14,552
Sorenson Communications, Inc.Manufacturer of Communication Products for Hearing Impaired9.00% Secured Debt (Maturity - October 31, 2020) (14)None6,616
6,457
6,599
Salient Partners, LP (8) (11)Provider of Asset Management ServicesLIBOR Plus 5.75% (Floor 1.00%), Current Coupon 8.27%, Secured Debt (Maturity - June 9, 2021)1 month LIBOR7,313
7,300
7,300
Slick Software Holdings LLC (10) (13)Text Messaging Marketing Platform14.00% Secured Debt (Maturity - September 13, 2023)None1,800
1,703
1,703
 LIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.00%, Secured Debt (Maturity - April 30, 2020) (8)3 month LIBOR2,947
2,932
2,971
 Member units (17,500 units)
175
175
  9,389
9,570
 Warrants (4,521 equivalent units, Expiration - September 13, 2028)
45
45
  1,923
1,923
Smart Modular Technologies, Inc. (8) (9) (11)Provider of Specialty Memory SolutionsLIBOR Plus 6.25%, (Floor 1.00%), Current Coupon 8.86%, Secured Debt (Maturity - August 9, 2022)3 month LIBOR19,000
18,793
19,095
Sorenson Communications, Inc. (8)Manufacturer of Communication Products for Hearing ImpairedLIBOR Plus 5.75% (Floor 2.25%), Current Coupon 8.56%, Secured Debt (Maturity - April 30, 2020)3 month LIBOR2,916
2,908
2,905
STL Parent Corp. (8)Manufacturer and Servicer of Tank and Hopper RailcarsLIBOR Plus 7.00%, Current Coupon 9.52%, Secured Debt (Maturity - December 5, 2022)1 month LIBOR12,000
11,585
11,639
Strike, LLC (8)Pipeline Construction and Maintenance ServicesLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.50%, Secured Debt (Maturity - November 30, 2022)3 month LIBOR9,500
9,251
9,643
Pipeline Construction and Maintenance ServicesLIBOR Plus 8.00% (Floor 1.00%), Current Coupon 10.59%, Secured Debt (Maturity - November 30, 2022)3 month LIBOR9,000
8,803
9,011
 LIBOR Plus 8.00% (Floor 1.00%), Current Coupon 9.45%, Secured Debt (Maturity - May 30, 2019)3 month LIBOR2,500
2,480
2,513
  11,731
12,156
Synagro Infrastructure Company, Inc. (8)Waste Management ServicesLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 7.19%, Secured Debt (Maturity - August 22, 2020)3 month LIBOR6,411
6,235
6,023
TE Holdings, LLCOil & Gas Exploration & ProductionCommon Units (72,785 units)
728
118
Oil & Gas Exploration & ProductionCommon Units (72,785 units)
728
49
Teleguam Holdings, LLC (8)Cable and Telecom Services ProviderLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 10.07%, Secured Debt (Maturity - April 12, 2024) (14)1 month LIBOR7,750
7,602
7,808
Cable and Telecom Services ProviderLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.02%, Secured Debt (Maturity - April 12, 2024) (14)1 month LIBOR7,750
7,620
7,798
TGP Holdings III LLC (8)Outdoor Cooking & AccessoriesLIBOR Plus 8.50% (Floor 1.00%), Current Coupon 11.30%, Secured Debt (Maturity - September 25, 2025) (14)3 month LIBOR5,000
5,000
4,850
TMC Merger Sub Corp (8)Refractory & Maintenance Services ProviderLIBOR Plus 6.25% (Floor 1.00%), Current Coupon 7.88%, Secured Debt (Maturity - October 31, 2022) (25)1 month LIBOR19,140
18,993
19,237
Refractory & Maintenance Services ProviderLIBOR Plus 6.75% (Floor 1.00%), Current Coupon 9.31%, Secured Debt (Maturity - October 31, 2022) (25)1 month LIBOR18,657
18,448
18,564
TOMS Shoes, LLC (8)Global Designer, Distributor, and Retailer of Casual FootwearLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 6.98%, Secured Debt (Maturity - October 30, 2020)3 month LIBOR4,863
4,604
2,893
Global Designer, Distributor, and Retailer of Casual FootwearLIBOR Plus 5.50% (Floor 1.00%), Current Coupon 8.30%, Secured Debt (Maturity - October 30, 2020)3 month LIBOR4,813
4,641
3,798
Turning Point Brands, Inc. (8) (9) (11)Marketer/Distributor of Tobacco ProductsLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.61%, Secured Debt (Maturity - May 17, 2022) (24)3 month LIBOR8,436
8,364
8,605
Marketer/Distributor of Tobacco ProductsLIBOR Plus 7.00%, Current Coupon 9.46%, Secured Debt (Maturity - March 7, 2024) (14)1 month LIBOR8,500
8,424
8,585
TVG-I-E CMN Acquisition, LLC (8) (11)Organic Lead Generation for Online Postsecondary SchoolsLIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 7.56%, Secured Debt (Maturity - November 3, 2021)1 month LIBOR8,170
8,031
8,170
Organic Lead Generation for Online Postsecondary SchoolsLIBOR Plus 6.00%, (Floor 1.00%), Current Coupon 8.52%, Secured Debt (Maturity - November 3, 2021)1 month LIBOR19,504
19,197
19,455
U.S. Telepacific Corp. (8)Provider of Communications and Managed ServicesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 6.69%, Secured Debt (Maturity - May 2, 2023)3 month LIBOR16,421
16,027
15,754
Provider of Communications and Managed ServicesLIBOR Plus 5.00% (Floor 1.00%), Current Coupon 7.80%, Secured Debt (Maturity - May 2, 2023)3 month LIBOR$16,453
$16,110
$15,449
USJ-IMECO Holding Company, LLC (8)Marine Interior Design and InstallationLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity - April 16, 2020)3 month LIBOR8,243
8,224
8,202
  
  
Valley Healthcare Group, LLC (8) (10) (13)Provider of Durable Medical EquipmentLIBOR Plus 12.50% (Floor 0.50%), Current Coupon 13.86%, Secured Debt (Maturity - December 29, 2020)1 month LIBOR$2,942
$2,901
$2,901
 Preferred Member Units (Valley Healthcare Holding, LLC) (400 units)
400
400
  3,301
3,301
VIP Cinema Holdings, Inc. (8)Supplier of Luxury Seating to the Cinema IndustryLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 7.70%, Secured Debt (Maturity - March 1, 2023)3 month LIBOR9,625
9,582
9,721
Supplier of Luxury Seating to the Cinema IndustryLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.53%, Secured Debt (Maturity - March 1, 2023)1 month LIBOR9,125
9,090
8,960
Vistar Media, Inc. (8) (11)Operator of Digital Out-of-Home Advertising PlatformLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 11.69%, Secured Debt (Maturity - February 16, 2022)3 month LIBOR3,319
3,046
3,102
Vistar Media, Inc. (11)Operator of Digital Out-of-Home Advertising PlatformLIBOR Plus 10.00% (Floor 1.00%), Current Coupon 12.74%, Secured Debt (Maturity - February 16, 2022) (8)3 month LIBOR3,263
3,046
2,987
 Warrants (70,207 equivalent units, Expiration - February 17, 2027)
331
500
 Warrants (70,207 equivalent units, Expiration - February 17, 2027)
331
790
  3,377
3,602
  3,377
3,777
Volusion, LLC (10) (13)Provider of Online Software-as-a-Service eCommerce Solutions11.50% Secured Debt (Maturity - January 24, 2020)None7,172
6,453
6,453
Provider of Online Software-as-a-Service eCommerce Solutions11.50% Secured Debt (Maturity - January 24, 2020)None8,260
7,843
7,843
 Preferred Member Units (2,090,001 units)
6,000
6,000
 8.00% Unsecured Convertible Debt (Maturity - November 16, 2023)None127
127
127
 Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)
1,104
891
 Preferred Member Units (2,090,001 units)
6,000
6,000
  13,557
13,344
 Warrants (784,866.80 equivalent units, Expiration - January 26, 2025)
1,104
810
Wellnext, LLC (8) (11)Manufacturer of Supplements and VitaminsLIBOR Plus 10.10% (Floor 1.00%), Current Coupon 11.67%, Secured Debt (Maturity - July 21, 2022) (23)1 month LIBOR9,930
9,856
9,930
  15,074
14,780
Wireless Vision Holdings, LLC (8) (11)Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 8.91% (Floor 1.00%), Current Coupon 10.27%, Secured Debt (Maturity - September 29, 2022) (23)1 month LIBOR12,899
12,574
12,574
Provider of Wireless Telecommunications Carrier ServicesLIBOR Plus 8.91% (Floor 1.00%), Current Coupon 11.43%, Secured Debt (Maturity - September 29, 2022) (23)1 month LIBOR14,198
13,932
13,338
Wirepath, LLC (8)E-Commerce Provider Into Connected Home MarketLIBOR Plus 5.25% (Floor 1.00%), Current Coupon 6.87%, Secured Debt (Maturity - August 5, 2024)2 month LIBOR11,471
11,416
11,629
  
Subtotal Non-Control/Non-Affiliate Investments (5) (88% of total portfolio investments at fair value)  $948,029
$922,898
YS Garments, LLC (8)Designer and Provider of Branded ActivewearLIBOR Plus 6.00% (Floor 1.00%), Current Coupon 8.42%, Secured Debt (Maturity - August 9, 2024)1 month LIBOR7,453
7,382
7,379
Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)Subtotal Non-Control/Non-Affiliate Investments (5) (81% of total portfolio investments at fair value)  $932,495
$901,518
  



  
Total Portfolio Investments  $1,064,329
$1,049,439
  $1,121,688
$1,106,568
  



  
Short Term Investments (20)    
Fidelity Institutional Money Market Funds (21)Prime Money Market Portfolio, Class III Shares
$11,335
$11,335
Prime Money Market Portfolio, Class III Shares
$4,450
$4,450
US Bank Money Market Account (21)
18,613
18,613

15,574
15,574
    
Total Short Term Investments  $29,948
$29,948
  $20,024
$20,024
(1) All investments are Middle Market portfolio investments, unless otherwise noted. All of the assets of the Company are encumbered as security for the Company’s credit agreements. See Note 6 -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 defined by 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, 20162017 and December 31, 20172018 along with transactions during the year ended December 31, 20172018 in these affiliated investments were as follows (in thousands):
   Twelve Months Ended December 31, 2017   Twelve Months Ended December 31, 2017   Twelve Months Ended December 31, 2018   Twelve Months Ended December 31, 2018
Affiliate Investments Fair Value at December 31, 2016 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 Net Unrealized Gain (Loss) Fair Value at December 31, 2017 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income Fair Value at December 31, 2017 
Gross Additions (Cost)*
 
Gross Reductions (Cost)**
 
Net Unrealized Gain (Loss)***
 Fair Value at December 31, 2018 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income
            
AFG Capital Group, LLC                        
Member units $687
 $
 $
 $210
 $897
 $
$
$
$18
 $897
 $1
 $
 $97
 $995
 $
$
$
$10
Warrants 167
 
 
 48
 215
 



 215
 
 
 22
 237
 



Brewer Crane Holdings, LLC            
Term loan 
 2,489
 (142) 
 2,347
 
298


Preferred member units 
 1,070
 
 
 1,070
 


29
Chamberlin Holding, LLC            
Term loan 
 5,417
 (484) 
 4,933
 
587
2

Member units 
 2,861
 
 1,874
 4,735
 

35
354
Member units (Langfield RE, LLC) 
 183
 
 
 183
 


183
Charlotte Russe, Inc.            
Term loan 
 6,285
 (49) (3,146) 3,090
 
492


Common stock 
 2,470
 
 (2,470) 
 



Charps, LLC                        
Term loan 
 4,817
 (320) 3
 4,500
 
533
1

 $4,500
 $50
 $(1,627) $52
 $2,975
 $
$537
$
$
Term loan 
 402
 (402) 
 
 
11
2

Preferred member units 
 101
 
 62
 163
 



 163
 1
 
 404
 568
 


62
            
Clad-Rex Steel, LLC                        
Term loan $3,449
 $16
 $(201) $56
 $3,320
 $
$392
$
$
Term loan 99
 
 (99) 
 
 



 3,320
 16
 (298) (18) 3,020
 
387


Member units 1,820
 
 
 555
 2,375
 


103
 2,375
 1
 (1) 278
 2,653
 



Term loan (Clad-Rex Steel RE Investor, LLC) 298
 
 (5) 
 293
 
30


 293
 
 (5) 
 288
 
29


Member units (Clad-Rex Steel RE Investor, LLC) 53
 
 
 17
 70
 



 70
 
 
 18
 88
 


152
EIG Traverse Co-Investment, LP            
LP interests 9,905
 951
 (10,756) (100) 
 951


871
Freeport First Lien Loan Fund III, LP            
Digital Products Holdings, LLC            
Term loan 
 6,617
 (297) 
 6,320
 
620


Preferred member units 
 2,200
 (84) 
 2,116
 


38
Direct Marketing Solutions, Inc.            
Term loan 
 4,727
 (322) (1) 4,404
 
572
3

Preferred stock 
 2,100
 
 1,625
 3,725
 



Freeport Financial Funds            
LP interests 4,763
 3,795
 
 (52) 8,506
 


617
 8,506
 2,597
 
 (123) 10,980
 


1,038
Gamber-Johnson Holdings, LLC                        
Term loan 5,964
 19
 (170) 37
 5,850
 
755


 5,850
 26
 (479) (26) 5,371
 
656

104
Common stock 4,730
 
 
 1,113
 5,843
 

54
105
Member units 5,843
 
 
 5,522
 11,365
 

12
322
Guerdon Modular Holdings, Inc.                        
Term loan 2,642
 22
 (1) (3) 2,660
 
366


 2,660
 516
 (37) (138) 3,001
 
412


Term loan 
 70
 (70) 
 
  2
 
Common stock 20
 
 
 (20) 
 



 
 
 
 
 
 



Class B preferred units 285
 
 
 (285) 
 



Class B preferred stock 
 
 
 
 
 



Gulf Publishing Holdings, LLC                        
Term loan 2,455
 710
 (14) 
 3,151
 
387
1

 3,151
 13
 (33) 
 3,131
 
415


Term loan 
 20
 
 
 20
 



 20
 40
 (60) 
 
 
3


Member units 781
 142
 
 287
 1,210
 

10

 1,210
 
 (1) (179) 1,030
 



Harris Preston Fund Investments                        
LP interests (HPEP 3, LP) 
 943
 
 
 943
 



 943
 790
 
 
 1,733
 



LP interests (2717 HM, LP) 
 536
 
 
 536
 



 536
 504
 
 93
 1,133
 



Hawk Ridge Systems, LLC                        
Term loan 2,451
 1,212
 (149) 60
 3,574
 
301


 3,574
 14
 
 (13) 3,575
 
396


Preferred member units 713
 
 
 237
 950
 


65
 950
 
 
 865
 1,815
 


102
Preferred member units (HRS Services, ULC) 38
 
 
 12
 50
 


1
 50
 1
 
 44
 95
 



HWT, LLC            
HW Temps, LLC            
Term loan 2,454
 14
 
 16
 2,484
 
366


Preferred member units 985
 1
 
 
 986
 

35
8
KMC Investor, LLC            
Term loan 
 7,005
 (210) 
 6,795
 
144


Term loan 
 266
 (7) 
 259
 
6


Term loan 2,591
 13
 (150) 
 2,454
 
370


 
 1,002
 (11) 
 991
 
16


Member units 985
 
 
 
 985
 

35

 
 248
 
 
 248
 



Member units (KMC RE Investor, LLC) 
 3,460
 (400) 
 3,060
 



Market Force Information, Inc.                        
Term loan 
 6,018
 (286) 
 5,732
 
324


 5,732
 25
 (140) 
 5,617
 
795


Member units 
 3,675
 
 
 3,675
 



M.H. Corbin, LLC            
Term loan 3,299
 8
 (177) 
 3,130
 
382


 
 170
 (120) 
 50
 
6


Member units 1,500
 
 
 
 1,500
 

35

 3,675
 
 
 (400) 3,275
 



Mystic Logistics, Inc.            
M.H. Corbin Holding, LLC            
Term loan 3,130
 64
 (162) (98) 2,934
 
461


Preferred member units 1,500
 
 
 (1,250) 250
 

35

Mystic Logistics Holdings, LLC            
Term loan 2,294
 21
 (352) (47) 1,916
 
272
2

 1,916
 14
 (58) 5
 1,877
 
247


Common stock 1,445
 
 
 260
 1,705
 



 1,705
 1
 
 (1,654) 52
 



NexRev, LLC            
Term loan 
 4,381
 (98) 39
 4,322
 
404


Preferred member units 
 1,720
 
 252
 1,972
 

3
15
NuStep, LLC                        
Term loan 5,048
 25
 
 
 5,073
 
653


Preferred member units 2,550
 1
 (1) 
 2,550
 



            
SI East, LLC            
Term loan 
 5,179
 (131) 
 5,048
 
603


 $
 $12,311
 $(727) $(2) $11,582
 $
$431
$
$
Preferred member units 
 2,550
 
 
 2,550
 



 
 2,000
 
 
 2,000
 

3

SoftTouch Medical Holdings, LLC                        
Term loan 1,260
 5
 
 (5) 1,260
 
135

124
 1,260
 10
 (1,260) (10) 
 
26


Member units 1,618
 
 
 163
 1,781
 

42

 1,781
 
 (870) (911) 
 903

11
134
Tedder Acquisition, LLC            
Term loan 
 4,106
 (123) 
 3,983
 
174


Term loan 
 120
 (2) 
 118
 
3


Preferred member units 
 1,869
 
 
 1,869
 



 $56,312
 $30,753
 $(12,811) $2,608
 $76,862
 $951
$4,850
$180
$1,904
 $76,862
 $80,274
 $(8,580) $767
 $149,323
 $903
$9,149
$141
$2,551
* Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more new securities and the movement of an existing portfolio company out of this category into a different category.
*** Net unrealized gain (loss) does not included unrealized appreciation (depreciation) on unfunded commitments.
(5) Non-Control/Non-Affiliate investments are defined by the 1940 Act asgenerally investments that are neither Control investments nor Affiliate investments.
(6) Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained. Fair value as of December 31, 20162017 and December 31, 20172018 along with transactions during the year ended December 31, 20172018 in these controlledControl investments were as follows (in thousands):
   Twelve Months Ended December 31, 2017   Twelve Months Ended December 31, 2017   Twelve Months Ended December 31, 2018   Twelve Months Ended December 31, 2018
Controlled Investments Fair Value at December 31, 2016 
Gross Additions (Cost)**
 
Gross Reductions (Cost)***
 Net Unrealized Gain (Loss) Fair Value at December 31, 2017 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income
Control Investments Fair Value at December 31, 2017 
Gross Additions (Cost)**
 
Gross Reductions (Cost)***
 Net Unrealized Gain (Loss) Fair Value at December 31, 2018 Net Realized Gain (Loss)Interest IncomeFee IncomeDividend Income
            
Copper Trail Energy Fund I, LP                        
LP interests $2,500
 $1,245
 $
 $723
 $4,468
 $
$
$13
$307
CTMH, LP            
LP interests $
 $2,500
 $
 $
 $2,500
 $
$
$
$
 
 872
 
 
 872
 



GRT Rubber Technologies, LLC                        
Term loan 6,538
 32
 (824) (31) 5,715
 
663


 5,715
 30
 (917) (31) 4,797
 
609


Member units 10,004
 
 
 817
 10,821
 

73
577
 10,821
 
 
 8,418
 19,239
 

69
1,347
HMS-ORIX SLF LLC*
                        
Membership interests 
 30,000
 
 643
 30,643
 


450
 30,643
 
 
 (4,292) 26,351
 


2,132
 $16,542
 $32,532
 $(824) $1,429
 $49,679
 $
$663
$73
$1,027
 $49,679
 $2,147
 $(917) $4,818
 $55,727
 $
$609
$82
$3,786
* Together with Orix, the Company co-invests through HMS-ORIX, which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, the Company and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. Therefore, althoughAlthough the Company owns more than 25% of the voting securities of HMS-ORIX, the Company does not have sole control over significant actions of HMS-ORIX for purposes of the 1940 Act or otherwise.
** Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest, the amortization of unearned income, the exchange of one or more existing securities for one or more new securities and the movement of an existing portfolio company into this category from a different category.
*** Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, the exchange of one or more new securities and the movement of an existing portfolio company out of this category into a different category.
(7) Principal is net of repayments. Cost represents amortized cost which is net of repayments and adjusted for the amortization of premiums and/or accretion of discounts, as applicable.
(8) Index based floating interest rate is subject to contractual minimum interest rates.rates, or floors.
(9) The investment is not a qualifying asset under the 1940 Act. A BDC may not acquire any asset other than qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the BDC’s total assets. As of December 31, 2017,2018, approximately 13.9%12.7% of the Company’s investments were considered non-qualifying.
(10) Investment is classified as a Lower Middle Market investment.
(11) Investment is classified as a Private Loan portfolio investment.
(12) Investment or portion of investment is under contract to purchase and met trade date accounting criteria as of December 31, 2017.2018. Settlement occurred or is scheduled to occur after December 31, 2017.2018. See Note 2 - Basis of Presentation and Summary of Significant Accounting Policies for Summary of Security Transactions.
(13) Investment serviced by Main Street pursuant to servicing arrangements with the Company.
(14) Second lien secured debt investment.
(15) Investment is classified as an Other Portfolio investment.
(16) Income producing through dividends or distributions.
(17) Unsecured debt investment.
(18) Investment is on non-accrual status as of December 31, 2017.2018.
(19) Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.
(20) Short term investments represent an investment in a fund that invests in highly liquid investments with average original maturity dates of three months or less.
(21) Effective yield as of December 31, 20172018 was approximately 0.01%.0.03% at US Bank Money Market Account and 2.10% at Fidelity Institutional Money Market Funds.
(22) The 1, 2, 3 and 6 month LIBOR rates were 1.57%2.50%, 1.62%2.61%, 1.69%2.81% and 1.84%2.88%, respectively, as of December 31, 2017.2018. The actual LIBOR rate for each loan listed may not be the applicable LIBOR rate as of December 31, 2017,2018, as the loan may have been priced or repriced based on a LIBOR rate prior to or subsequent to December 31, 2017.2018. The prime rate was 4.50%5.50% as of December 31, 2017.2018.
(23) The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR plus 7.50% (Floor 1.00%) per the credit agreement and the Condensed Consolidated Schedule of Investments above reflects such higher rate.
(24) As part of the credit agreement with the portfolio company, the Company is entitled to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. The rate the Company receives per the credit agreement is the same as the rate reflected in the Condensed Consolidated Schedule of Investments above.[Reserved]
(25) The Company has entered into an intercreditor agreement that entitles the Company to the "first out" tranche of the first lien secured loans, whereby the "first out" tranche receives priority over the "last out" tranche with respect to payments of principal, interest and any other amounts due thereunder. Therefore, the Company receives a lower interest rate than the contractual stated interest rate of LIBOR plus 6.64% (Floor 1.00%) per the credit agreement and the Condensed Consolidated Schedule of Investments above reflects such lower rate.
(26) The fair value of the investment was determined using significant unobservable inputs. See Note 3 - Fair Value Hierarchy for Investments.


See notes to the consolidated financial statements.




HMS Income Fund, Inc.
Notes to the Condensed Consolidated Financial Statements
(Unaudited)

Note 1 Principal Business and Organization

HMS Income Fund, Inc. (together(collectively with its consolidated subsidiaries, the “Company”) was formed as a Maryland corporation on November 28, 2011 under the General Corporation Law of the State of Maryland. The Company is an externally managed, non-diversified closed-end management investment company that has elected to be treated as a BDC under the 1940 Act. The Company has elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

The Company’s primary investment objective is to generate current income through debt and equity investments. A secondary objective of the Company is to generate long-term capital appreciation through equity and equity-related investments including warrants, convertible securities and other rights to acquire equity securities. The Company’s portfolio strategy is to invest primarily in illiquid debt and equity securities issued by lower middle market (“LMM”LMM���) companies, which generally have annual revenues between $10 million and $150 million, and debt securities issued by middle market (“Middle Market”) companies that are generally larger in size than the LMM companies, with annual revenues typically between $10 million and $3 billion. The Company’s LMM and Middle Market portfolio investments generally range in size from $1 million to $15 million. The Company categorizes some of its investments in LMM companies and Middle Market companies as private loan (“Private Loan”) portfolio investments. Private Loan investments, often referred to in the debt markets as “club deals,” are investments, generally in debt instruments, that the Company originates on a collaborative basis with other investment funds. Private Loan investments are typically similar in size, structure, terms and conditions to investments the Company holds in its LMM portfolio and Middle Market portfolio. The Company’s portfolio also includes other portfolio (“Other Portfolio”) investments primarily consisting of the Company’s investment in HMS-ORIX (see Note 4 - Investment in HMS-ORIX SLF LLC) and investments managed by third parties, which differ from the typical profiles for the Company’s other types of investments.

The Company previously registered for sale up to 150,000,000 shares of common stock pursuant to a registration statement on Form N-2 (File No. 333-178548) which was initially declared effective by the Securities and Exchange Commission (the “SEC”) on June 4, 2012 (the “Initial Offering”). The Initial Offering terminated on December 1, 2015. The Company raised approximately $601.2 million under the Initial Offering, including proceeds from the dividenddistribution reinvestment plan of approximately $22.0 million. The Company also registered for sale up to $1,500,000,000 worth of shares of common stock (the “Offering”) pursuant to a new registration statement on Form N-2 (File No. 333-204659), as amended.amended and declared effective by the SEC on May 1, 2017. With the approval of the Company’s board of directors, the Company closed the Offering to new investors effective September 30, 2017. Through March 31, 2018,2019, the Company raised approximately $191.0$217.6 million in the Offering, including proceeds from the distribution reinvestment plan of approximately $59.3$85.9 million.

The Company has three wholly owned subsidiaries. HMS Funding I LLC (“HMS Funding”) and HMS Equity Holding, LLC (“HMS Equity Holding”) are both wholly owned subsidiaries of the Company that were both organized as Delaware limited liability companies andcompanies. HMS Equity Holding II, Inc. (“HMS Equity Holding II”) is a wholly owned subsidiary of the Company that was organized as a Delaware corporation. HMS California Holdings LP (“HMS California Holdings”) is a wholly owned subsidiary of the Company that was organized as a Delaware limited partnership. HMS California Holdings GP LLC (“HMS California Holdings GP”) is a wholly owned subsidiary of the Company that was organized as a Delaware limited liability company. HMS Funding was created pursuant tofor the Deutsche Bank Credit Facility (as defined below in Note 5 - Borrowings) in order to function as a “Structured Subsidiary,” which is permitted to incur debt outside of the EverBankTIAA Credit Facility (as defined below in Note 5 — Borrowings) since it is not a guarantor under the EverBankTIAA Credit Facility. Two of the Company’s wholly owned subsidiaries, HMS Equity Holding and HMS Equity Holding II, which have elected to be taxable entities and primarily hold equity investments in certain portfolio companies which are “pass through” entities for tax purposes.

The business of the Company is managed by HMS Adviser LP (the “Adviser”), a Texas limited partnership and affiliate of Hines Interests Limited Partnership (“Hines”), under an Investment Advisory and Administrative Services Agreement dated May 31, 2012 (as amended, the “Investment Advisory Agreement”). The Company and the Adviser have retained MSC Adviser I, LLC (the “Sub-Adviser”), a wholly owned subsidiary of Main Street Capital Corporation (“Main Street”), a New York Stock Exchange listed BDC, as the Company’s investment sub-adviser, pursuant to an Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement”), to identify, evaluate, negotiate and structure prospective investments, make investment and portfolio management recommendations for approval by the Adviser, monitor the Company’s investment portfolio and provide certain ongoing administrative services to the Adviser. The Adviser and the Sub-Adviser are collectively referred to as the “Advisers,” and each is registered as an investment adviser under the Investment Advisers Act of 1940, as amended. Upon the execution of the Sub-Advisory Agreement, Main Street became an affiliate of the Company. The Company’s board of directors most recently reapproved the Investment Advisory Agreement and Sub-Advisory Agreement on May 10, 2018. The Company engaged Hines Securities, Inc. (the “Dealer Manager”), an affiliate of the Adviser, to serve as the Dealer Manager for ourthe Company’s offerings, if any.



Note 2 Basis of Presentation and Summary of Significant Accounting Policies
 
Basis of Presentation and Consolidation
 
The accompanying condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q and accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company’s wholly owned consolidated subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Under the 1940 Act rules, regulations pursuant to Articles 6, 10 and 12 of Regulation S-X and Topic 946, Financial Services - Investment Companies, of the Accounting Standards Codification, as amended (the “ASC”), of the Financial Accounting Standards Board (the “FASB”), the Company is precluded from consolidating portfolio company investments, including those in which the Company has a controlling interest, unless the portfolio company is a wholly-owned investment company. An exception to this general principle occurs if the Company owns a controlled operating company whose purpose is to provide services to the Company such as an investment adviser or transfer agent. None of the Company’s investments qualifies for this exception. Therefore, the Company’s portfolio company investments, including those in which the Company has a controlling interest, are carried on the Condensed Consolidated Balance Sheet at fair value, as discussed below, with changes to fair value recognized as “Net Change in Unrealized Appreciation (Depreciation) on Investments” on the Condensed Consolidated Statements of Operations until the investment is realized, usually upon exit, resulting in any gain or loss on exit being recognized as a realized gain or loss. However, in the event that any controlled subsidiary exceeds the tests of significance set forth in Rules 3-09 or 4-08(g) of Regulation S-X, the Company will include required financial information for such subsidiary in the notes or as an attachment to its condensed consolidated financial statements.

The unaudited condensed consolidated financial statements reflect all normal recurring adjustments, which are, in the opinion of management, necessary for the fair presentation of the Company’s results for the interim periods presented. The results of operations for interim periods are not indicative of results to be expected for the full year.

Amounts as of December 31, 20172018 included in the unaudited condensed consolidated financial statements have been derived from the Company’s audited consolidated financial statements as of that date. All intercompany accounts and transactions have been eliminated in consolidation. Certain financial information that is normally included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted herein. The current period’s results of operations are not necessarily indicative of results that ultimately may be achieved for the year. Therefore, these financial statements should be read in conjunction with the Company’s financial statements and notes related thereto included in the Company’s Annual Report on Form 10-K (as amended) for the year ended December 31, 2017,2018, which was filed with the SEC on March 21, 2018.8, 2019.

Reclassifications

Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation with no effect on our previously reported net income, net asset value or cash flows from operations.
 
Interest, Fee and Dividend Income
 
Interest and dividend income are recorded on the accrual basis to the extent amounts are expected to be collected. Prepayment penalties received by the Company are recorded as income upon receipt. Dividend income is recorded when dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. Accrued interest and dividend income are evaluated quarterly for collectability. When a debt security becomes 90 days or more past due and the Company does not expect the debtor to be able to service all of its debt or other obligations, it will generally be placed on non-accrual status and the Company will cease recognizing interest income on that debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If there is reasonable doubt that the Company will receive any previously accrued interest, then the interest income will be written off. Additionally, if a debt security has deferred interest payment terms and the Company becomes aware of a deterioration in credit quality, the Company will evaluate the collectability of the deferred interest payment. If it is determined that the deferred interest is unlikely to be collected, the Company will place the security on non-accrual status and cease recognizing interest income on that debt security until the borrower has demonstrated the ability and intent to pay the contractual amounts due. Payments received on non-accrual investments may be recognized as income or applied to principal depending upon the collectability of the remaining principal and interest. If a debt security’s status significantly improves with respect to the debtor’s ability to service the debt or other obligations, or if a debt security is fully impaired, sold or written off, it will be removed from non-accrual status.

As of March 31, 2018,2019, the Company had five debt investments in three portfolio companies that were more than 90 days past due, including four debt investments in two portfolio companies that were on non-accrual status. The debt investments on non-accrual status allcomprised approximately 0.1% of which were more than 90 days past due.the Company’s total investment portfolio at fair value and 0.4% of the total investment


portfolio at cost. Each of these portfolio companies experienced a significant decline in credit quality raising doubt regarding the Company’s ability to collect the principal and interest contractually due. Given the credit deterioration of these portfolio companies, the Company ceased accruing interest income on the non-accrual debt investments and wrote off any previously accrued interest deemed uncollectible. As of March 31, 2018,2019, the Company is not aware of any other material changes to the creditworthiness of the borrowers underlying its debt investments.



As of December 31, 2017,2018, the Company had foursix debt investments in threefour portfolio companies that were more than 90 days past due, all ofincluding five debt investments in three portfolio companies which were on non-accrual status. The debt investments on non-accrual status comprised approximately 0.4% of the Company’s total investment portfolio at fair value and 0.6% of the total investment portfolio at cost. Each of these portfolio companies experienced a significant decline in credit quality after the Company acquired its investments, raising doubt regarding the Company’s ability to collect the principal and interest contractually due. Given the credit deterioration, the Company ceased accruing interest income on the non-accrual debt investments and wrote off any previously accrued interest deemed uncollectible.

From time to time, the Company may hold debt instruments in its investment portfolio that contain a payment-in-kind (“PIK”) interest provision. If these borrowers elect to pay or are obligated to pay interest under the optional PIK provision and, if deemed collectible in management’s judgment, then the interest would be computed at the contractual rate specified in the investment’s credit agreement, recorded as interest income and periodically added to the principal balance of the investment. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. The Company stops accruing PIK interest and writes off any accrued and uncollected interest in arrears when it determines that such PIK interest in arrears is no longer collectible.

As of March 31, 20182019 and December 31, 2017,2018, the Company held 1828 and 1924 investments, respectively, which contained a PIK provision. As of March 31, 2018, two2019, four of the 1828 investments with PIK provisions were on non-accrual status. No PIK interest was recorded on these twofour non-accrual investments during the three months ended March 31, 2018.2019. As of December 31, 2017, three2018, four of the 1924 investments with PIK provisions were on non-accrual status. No PIK interest was recorded on these investments during the year ended December 31, 2017.2018. For the three months ended March 31, 20182019 and 2017,2018, the Company capitalized $212,000$1.2 million and $320,000,$212,000, respectively, of PIK interest income. The Company stops accruing PIK interest and writes off any accrued and uncollected interest in arrears when it determines that such PIK interest in arrears is no longer collectible.

The Company may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. The income from such services is non-recurring. For services that are separately identifiable and evidence exists to substantiate fair value, income is recognized as earned, which is generally when the investment or other applicable transaction closes. For the three months ended March 31, 20182019 and 2017,2018, the Company recognized $334,000$361,000 and $785,000,$334,000, respectively, of non-recurring fee income received from its portfolio companies or other third parties, which accounted for approximately 1.3%1.2% and 3.1%1.4%, respectively, of the Company’s total investment income during such period. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into interest income over the life of the financing.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014‑09, Revenue from Contracts with Customers (Topic 606). ASU 2014‑09 supersedes the revenue recognition requirements under ASC 605, Revenue Recognition, and most industry‑specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. In March 2016,August 2018, the FASB issued ASU 2016-08, Revenue from Contracts with Customers2018-13, “Fair Value Measurement (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)820),which clarified the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance regarding performance obligations and licensing arrangements. In May 2016, the FASB issued ASU No. 2016‑12, Revenue from Contracts with Customers (Topic 606)-Narrow‑Scope Improvements and Practical Expedients, which clarified guidance on assessing collectability, presenting sales tax, measuring non-cash consideration, and certain transition matters. The new guidance is effective for the annual reporting period beginning after December 15, 2017. Substantially all of the Company’s income is not within the scope of ASU 2014-09. For those income itemsintended to improve fair value
disclosure requirements by removing disclosures that are not cost-beneficial, clarifying disclosures’ specific requirements, and adding relevant disclosure requirements. The amendments take effect for all organizations for fiscal years, and interim periods within the scope of ASU 2014-09 (primarily fee income), the Company has similar performance obligations as compared with deliverables and separate units of account previously identified. As a result, the Company’s timing of its revenue recognition remains the same and the adoption of the standard was not material.

In January 2016, the FASB issued ASU 2016-01,Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities which amends the guidance related to the classification and measurement of investments in equity securities. The guidance requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The


ASU will also amend the guidance related to the presentation of certain fair value changes for financial liabilities measured at fair value and certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for fiscal years, beginning after December 15, 2017, including interim periods within those fiscal years.2019. Early adoption is permitted. The Company is currently evaluating
the impact of the adoption of this standard will have on its consolidated financial statements and related disclosures.

In August 2018, the SEC adopted rules (the "SEC Release") that require disclosure of changes in net assets within a registrant's Form 10-Q filing on a quarter-to-date and year-to-date basis for both the current year and prior year comparative periods. The Company adopted the new accounting standardrequirement to present changes in shareholders' equity in interim financial statements within Form 10-Q filings. The compliance date for the SEC Release was for all filings, as applicable, on or after November 5, 2018. The adoption of this rule did not have a material impact on the Company’s condensed consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues including, among other things, the classification of debt prepayment or debt extinguishment costs. ASU No. 2016-15 is effective for annual reporting periods, and the interim periods within those periods, beginning after December 15, 2017. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230),”which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The new guidance is effective for interim and annual periods beginning after December 15, 2017. The amendment should be adopted retrospectively. The impact of the adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by the Company as of the specified effective date. The Company believes that the impact of recently issued standards and any that are not yet effective will not have a material impact on its financial statements upon adoption.

Note 3 — Fair Value Hierarchy for Investments

Fair Value Hierarchy
 
ASC Topic 820, Fair Value Measurement and Disclosures (“ASC 820”), establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment.


Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
 
Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:
 
Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access.
Level 2—Valuations based on inputs other than quoted prices in active markets, which are either directly or indirectly observable for essentially the full term of the investment. Level 2 inputs include quoted prices for similar assets in active markets, quoted prices for identical or similar assets in non-active markets (for example, thinly traded public companies), pricing models whose inputs are observable for substantially the full term of the investment, and pricing models whose inputs are derived principally from or corroborated by, observable market data through correlation or other means for substantially the full term of the investment.
Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Such information may be the result of consensus pricing information or broker quotes for which sufficient observable inputs were not available.

As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, gains and losses for such investments categorized within the Level 3 table below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3). The Company conducts reviews of fair value hierarchy classifications on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain investments.

As of March 31, 20182019 and December 31, 2017,2018, the Company’s investment portfolio was comprised of debt securities, equity investments and Other Portfolio investments. The fair value determination for these investments primarily consisted of unobservable (Level 3) inputs.



As of March 31, 20182019 and December 31, 2017,2018, all of the Company’s LMM portfolio investments consisted of illiquid securities issued by private companies. The fair value determination for the LMM portfolio investments primarily consisted of unobservable inputs. As a result, all of the Company’s LMM portfolio investments were categorized as Level 3 as of March 31, 20182019 and December 31, 2017.2018.

As of March 31, 20182019 and December 31, 2017,2018, the Company’s Middle Market portfolio investments consisted primarily of Middle Market investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of (1) observable inputs in non-active markets for which sufficient observable inputs were available to determine the fair value of these investments, (2) observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and (3) unobservable inputs. As a result, all of the Company’s Middle Market portfolio investments were categorized as Level 3 as of March 31, 20182019 and December 31, 2017.2018.

As of March 31, 20182019 and December 31, 2017,2018, the Company’s Private Loan portfolio investments consisted primarily of debt investments. The fair value determination for Private Loan investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of the Company’s Private Loan portfolio investments were categorized as Level 3 as of March 31, 20182019 and December 31, 2017.2018.

As of March 31, 20182019 and December 31, 2017,2018, the Company’s Other Portfolio investments consisted of illiquid securities issued by private companies. The Company relies primarily on information provided by managers of private investment funds in valuing these investments and considers whether it is appropriate, in light of all relevant circumstances, to value the Other Portfolio investments at the net asset value (“NAV”) reported by the private investment fund at the time of valuation or to adjust the value to reflect a premium or discount. The fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of the Company’s Other Portfolio equity investments were categorized as Level 3 as of March 31, 20182019 and December 31, 2017.2018.



The fair value determination of the Level 3 securities required one or more of the following unobservable inputs:

Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;
Current and projected financial condition of the portfolio company;
Current and projected ability of the portfolio company to service its debt obligations;
Type and amount of collateral, if any, underlying the investment;
Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio, and net debt/earnings before interest, tax, depreciation and amortization (“EBITDA”) ratio) applicable to the investment;
Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);
Pending debt or capital restructuring of the portfolio company;
Projected operating results of the portfolio company;
Current information regarding any offers to purchase the investment;
Current ability of the portfolio company to raise any additional financing as needed;
Changes in the economic environment which may have a material impact on the operating results of the portfolio company;
Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;
Qualitative assessment of key management;
Contractual rights, obligations or restrictions associated with the investment;
Third party pricing for securities with limited observability of inputs determining the pricing; and
Other factors deemed relevant.



The following table presents fair value measurements of the Company’s investments, by major class,type of investment, as of March 31, 20182019 according to the fair value hierarchy (dollars in thousands):
Fair Value MeasurementsFair Value Measurements
Level 1 Level 2 Level 3 TotalLevel 1 Level 2 Level 3 Total
First lien secured debt investments$
 $
 $841,351
 $841,351
$
 $
 $844,077
 $844,077
Second lien secured debt investments
 
 94,278
 94,278

 
 92,384
 92,384
Unsecured debt investments
 
 11,012
 11,012

 
 12,819
 12,819
Equity investments (1)

 
 121,000
 121,000

 
 160,848
 160,848
Total$
 $
 $1,067,641
 $1,067,641
$
 $
 $1,110,128
 $1,110,128
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)

The following table presents fair value measurements of the Company’s investments, by major class,type of investment, as of December 31, 20172018 according to the fair value hierarchy (dollars in thousands):
Fair Value MeasurementsFair Value Measurements
Level 1 Level 2 Level 3 TotalLevel 1 Level 2 Level 3 Total
First lien secured debt investments$
 $
 $830,460
 $830,460
$
 $
 $846,427
 $846,427
Second lien secured debt investments
 
 97,940
 97,940

 
 93,573
 93,573
Unsecured debt investments
 
 11,368
 11,368

 
 11,236
 11,236
Equity investments (1)

 
 109,671
 109,671

 
 155,332
 155,332
Total$
 $
 $1,049,439
 $1,049,439
$
 $
 $1,106,568
 $1,106,568
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)

The following table presents fair value measurements of the Company’s investments, by investment classification, segregated by the level within the fair value hierarchy as of March 31, 20182019 (dollars in thousands):
Fair Value MeasurementsFair Value Measurements
Level 1 Level 2 Level 3 TotalLevel 1 Level 2 Level 3 Total
LMM portfolio investments$
 $
 $159,354
 $159,354
$
 $
 $217,179
 $217,179
Private Loan investments
 
 354,263
 354,263

 
 435,716
 435,716
Middle Market investments
 
 505,250
 505,250

 
 400,575
 400,575
Other Portfolio investments (1)

 
 48,774
 48,774

 
 56,658
 56,658
Total$
 $
 $1,067,641
 $1,067,641
$
 $
 $1,110,128
 $1,110,128
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)



The following table presents fair value measurements of the Company’s investments, by investment classification, segregated by the level within the fair value hierarchy as of December 31, 20172018 (dollars in thousands):
Fair Value MeasurementsFair Value Measurements
Level 1 Level 2 Level 3 TotalLevel 1 Level 2 Level 3 Total
LMM portfolio investments$
 $
 $135,657
 $135,657
$
 $
 $210,274
 $210,274
Private Loan investments
 
 315,382
 315,382

 
 408,939
 408,939
Middle Market investments
 
 549,792
 549,792

 
 434,271
 434,271
Other Portfolio investments (1)

 
 48,608
 48,608

 
 53,084
 53,084
Total$
 $
 $1,049,439
 $1,049,439
$
 $
 $1,106,568
 $1,106,568
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)

The significant unobservable inputs used in the fair value measurement of the Company’s LMM, Middle Market and Private Loan debt investments are (i) risk adjusted discount rates used in the yield-to-maturity valuation technique (described in Note 2 - Basis of Presentation and Summary of Significant Accounting Policies - Valuation of Portfolio Investments in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2017,2018, which was filed with the SEC on March 21, 2018)8, 2019) and (ii) the percentage of expected principal recovery. Increases (decreases) in any of these discount rates in isolation could result in a significantly lower (higher) fair value measurement. Increases (decreases) in any of these expected principal recovery percentages in isolation could result in a significantly higher (lower) fair value measurement. The significant unobservable inputs used in the fair value measurement of the Company’s LMM equity securities and Private Loan equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is not applicable), are (i) EBITDA multiples and (ii) the weighted average cost of capital (“WACC”). Increases


(decreases) in EBITDA multiple inputs in isolation could result in a significantly higher (lower) fair value measurement. Conversely, increases (decreases) in WACC inputs in isolation could result in a significantly lower (higher) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the table below.

The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of March 31, 20182019 (dollars in thousands):
Fair Value
Valuation
Technique
Significant Unobservable InputsRange 
Weighted
Average (2)
Fair Value
Valuation
Technique
Significant Unobservable InputsRange 
Weighted
Average (2)
LMM equity investments$56,721
Discounted Cash FlowWACC12.8% - 17.4% 14.1%$83,067
Discounted Cash FlowsWACC11.8% - 17.5% 13.8%
 Market Approach/Enterprise Value
EBITDA Multiples (1)
4.0x - 10.0x 7.1x Market Approach/Enterprise Value
EBITDA Multiples (1)
4.5x - 8.5x 6.7x
LMM debt investments102,633
Discounted Cash FlowExpected Principal Recovery23.0% - 100.0% 98.8%134,112
Discounted Cash FlowsExpected Principal Recovery97.0% - 100.0% 99.9%
  Risk Adjusted Discount Factor10.0% - 20.5% 12.8%  Risk Adjusted Discount Factor8.3% - 20.5% 11.7%
Private Loan debt investments236,314
Discounted Cash FlowExpected Principal Recovery2.8% - 100.0% 99.8%310,932
Discounted Cash FlowsExpected Principal Recovery1.5% - 100.0% 100.0%
  Risk Adjusted Discount Factor4.9% - 28.7% 13.5%  Risk Adjusted Discount Factor4.3% - 20.2% 8.1%
109,116
Market ApproachThird Party Quotes89.4% - 103.0% 98.6%107,702
Market ApproachThird Party Quotes93.9% - 101.0% 99.2%
Private Loan equity investments8,833
Market Approach/Enterprise Value
EBITDA Multiples (1)
5.0x - 9.5x 7.7x17,082
Market Approach/Enterprise Value
EBITDA Multiples (1)
4.9x - 9.5x 7.0x
 Discounted Cash FlowWACC11.8% - 13.8% 12.6% Discounted Cash FlowsWACC11.6% - 14.3% 12.7%
Middle Market debt investments498,578
Market ApproachThird Party Quotes32.5% - 106.5% 97.0%6,641
Discounted Cash FlowsExpected Principal Recovery100.0% - 100.0% 100.0%
  Risk Adjusted Discount Factor11.9% - 30.8% 32.2%
389,893
Market ApproachThird Party Quotes41.5% - 100.9% 94.4%
Middle Market equity investments6,672
Market ApproachThird Party Quotes$1.3 - $325.0 $307.24,041
Market ApproachThird Party Quotes$0.5 - $250.0 $102.7
 Discounted Cash FlowWACC15.7% - 15.7% 15.7% Discounted Cash FlowsWACC17.3% - 18.0% 17.3%
 
Market Approach/
Enterprise Value
EBITDA Multiples (1)
5.5x - 5.5x 5.5x Market Approach/Enterprise Value
EBITDA Multiples (1)
3.9x - 5.5x 5.5x
Other Portfolio investments(3)
48,774
Market Approach
NAV (1)
87.2% - 106.3% 100.6%56,658
Market Approach
NAV (1)
87.2% - 118.9% 99.5%
$1,067,641
 $1,110,128
 
(1) May include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.
(2) Weighted average excludes investments for which the significant unobservable input was not utilized in the fair value determination.
(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)



The following table, which is not intended to be all inclusive, presents the significant unobservable inputs of the Company’s Level 3 investments as of December 31, 20172018 (dollars in thousands):
Fair Value
Valuation
Technique
Significant Unobservable InputsRange 
Weighted
Average (2)
Fair Value
Valuation
Technique
Significant Unobservable InputsRange 
Weighted
Average (2)
LMM equity investments$47,876
Discounted Cash FlowsWACC12.6% - 17.4% 13.9%$79,641
Discounted Cash FlowsWACC11.8% - 17.5% 13.7%
 Market Approach/Enterprise Value
EBITDA Multiples (1)
4.0x - 10.0x 7.1x Market Approach/Enterprise Value
EBITDA Multiples (1)
4.3x - 8.5x 6.6x
LMM debt portfolio investments87,781
Discounted Cash FlowsExpected Principal Recovery28.0% - 100.0% 98.9%
LMM debt investments130,633
Discounted Cash FlowsExpected Principal Recovery97.0% - 100.0% 99.9%
 
 Risk Adjusted Discount Factor10.6% - 20.5% 12.3% 
 Risk Adjusted Discount Factor9.6% - 20.0% 12.5%
Private Loan debt investments228,789
Discounted Cash FlowsExpected Principal Recovery2.9% - 100.0% 99.7%285,733
Discounted Cash FlowsExpected Principal Recovery1.5% - 100.0% 99.8%
  Risk Adjusted Discount Factor4.5% - 28.3% 7.9%  Risk Adjusted Discount Factor5.8% - 30.3% 10.2%
77,981
Market ApproachThird Party Quotes92.0% - 102.0% 98.8%106,301
Market ApproachThird Party Quotes90.9% - 101.0% 98.6%
Private Loan equity investments8,612
Market Approach/Enterprise Value
EBITDA Multiples (1)
5.0x - 9.5x 8.0x16,905
Market Approach/Enterprise Value
EBITDA Multiples (1)
4.9x - 9.5x 6.9x
 Discounted Cash FlowsWACC9.9% - 14.0% 11.8% Discounted Cash FlowsWACC11.4% - 14.2% 12.7%
Middle Market debt investments545,217
Market ApproachThird Party Quotes29.0% - 106.0% 96.1%428,569
Market ApproachThird Party Quotes56.2% - 100.9% 95.3%
Middle Market equity investments4,575
Market ApproachThird Party Quotes$1.6 - $345.0 $322.25,702
Market ApproachThird Party Quotes$0.68 - $250.0 $98.1
 Discounted Cash FlowWACC15.3% - 15.3% 15.3% Discounted Cash FlowsWACC16.1% - 18.0% 16.1%
 
Market Approach/
Enterprise Value
EBITDA Multiples (1)
5.5x - 5.5x 5.5x Market Approach/Enterprise Value
EBITDA Multiples (1)
3.9x - 5.5x 5.5x
Other Portfolio investments (3)
48,608
Market Approach
NAV (1)
86.1% - 102.1% 100.3%53,084
Market Approach
NAV (1)
85.5% - 119.3% 95.3%
$1,049,439
 $1,106,568
 
(1) May include pro forma adjustments and/or other add-backs based on specific circumstances related to each investment.
(2) Weighted average excludes investments for which the significant unobservable input was not utilized in the fair value determination.
(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)




The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, 20182019 (dollars in thousands):
Type of InvestmentJanuary 1, 2018 Fair Value 
PIK 
Interest
Accrual
 
New Investments(1)
 Sales/ Repayments 
Net Change in Unrealized
Appreciation
(Depreciation)(2)
 Net Realized Gain (Loss) March 31, 2018 Fair ValueJanuary 1, 2019 Fair Value 
PIK 
Interest
Accrual
 
New Investments(1)
 Sales/ Repayments 
Net Change in Unrealized
Appreciation
(Depreciation) (2)
 Net Realized Gain (Loss) March 31, 2019 Fair Value
LMM Equity$47,876
 $
 $8,161
 $(1,782) $1,554
 $912
 $56,721
$79,641
 $
 $2,560
 $(938) $1,851
 $(47) $83,067
LMM Debt87,781
 18
 17,809
 (2,885) (90) 
 102,633
130,633
 169
 6,158
 (2,637) (221) 10
 134,112
Private Loan Equity8,612
 
 1,202
 
 (981) 
 8,833
16,905
 
 19
 (1,340) 907
 591
 17,082
Private Loan Debt306,770
 21
 61,925
 (23,191) (164) 69
 345,430
392,034
 928
 23,299
 (6,080) 10,716
 (2,263) 418,634
Middle Market Debt545,217
 173
 85,089
 (131,623) 10,600
 (10,878) 498,578
428,569
 72
 3,059
 (26,870) (2,866) (5,430) 396,534
Middle Market Equity4,575
 
 2,470
 
 (373) 
 6,672
5,702
 
 
 
 (1,661) 
 4,041
Other Portfolio(3)
48,608
 
 90
 
 76
 
 48,774
53,084
 
 2,456
 (1,860) 2,978
 
 56,658
Total$1,049,439
 $212
 $176,746
 $(159,481) $10,622
 $(9,897) $1,067,641
$1,106,568
 $1,169
 $37,551
 $(39,725) $11,704
 $(7,139) $1,110,128
(1) Column includes changes to investments due to the net accretion of discounts/premiums and amortization of fees.
(2) Column does not include unrealized appreciation (depreciation) on unfunded commitments.
(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)



The following table provides a summary of changes in fair value of the Company’s Level 3 portfolio investments for the three months ended March 31, 20172018 (dollars in thousands):
Type of InvestmentJanuary 1, 2017 Fair Value 
PIK 
Interest
Accrual
 
New Investments(1)
 Sales/ Repayments 
Net Change in Unrealized
Appreciation
(Depreciation)
(2)
 Net Realized Gain (Loss) March 31, 2017 Fair ValueJanuary 1, 2018 Fair Value 
PIK 
Interest
Accrual
 
New Investments(1)
 Sales/ Repayments 
Net Change in Unrealized
Appreciation
(Depreciation)
(2)
 Net Realized Gain (Loss) March 31, 2018 Fair Value
LMM Equity$37,616
 $
 $3,118
 $(273) $240
 $(40) $40,661
$47,876
 $
 $8,161
 $(1,782) $1,554
 $912
 $56,721
LMM Debt78,444
 46
 9,890
 (4,112) (1,989) 
 82,279
87,781
 18
 17,809
 (2,885) (90) 
 102,633
Private Loan Equity6,323
 
 1,381
 (2,917) (1,579) 2,548
 5,756
8,612
 
 1,202
 
 (981) 
 8,833
Private Loan Debt205,034
 77
 38,377
 (9,613) (1,948) 
 231,927
306,770
 21
 61,925
 (23,191) (164) 69
 345,430
Middle Market Debt638,374
 146
 55,791
 (122,771) 1,725
 132
 573,397
545,217
 173
 82,437
 (131,623) 10,600
 (8,226) 498,578
Middle Market Equity5,090
 51
 
 
 (956) 
 4,185
4,575
 
 2,470
 
 (373) 
 6,672
Other Portfolio(3)18,366
 
 2,796
 
 (258) 
 20,904
48,608
 
 90
 
 76
 
 48,774
Total$989,247
 $320
 $111,353
 $(139,686) $(4,765) $2,640
 $959,109
$1,049,439
 $212
 $174,094
 $(159,481) $10,622
 $(7,245) $1,067,641
(1) Column includes changes to investments due to the net accretion of discounts/premiums and amortization of fees.
(2) Column does not include unrealized appreciation (depreciation) on unfunded commitments.
(3) Includes the Company’s investment in HMS-ORIX. (See Note 4 — Investment in HMS-ORIX SLF LLC)

The total net change in unrealized appreciation (depreciation) for the three months ended March 31, 20182019 and 20172018 included in the Condensed Consolidated StatementStatements of Operations that related to Level 3 assets still held as of March 31, 20182019 and 20172018 was approximately $(2.4)$11.4 million and $(0.9)$(2.4) million, respectively. For the three months ended March 31, 20182019 and 2017,2018, there were no transfers between Level 2 and Level 3 portfolio investments.

Portfolio Investment Composition

The composition of the Company’s investments as of March 31, 2019, at cost and fair value, was as follows (dollars in thousands):
 Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
First lien secured debt investments$862,744
 77.5% $844,077
 76.0%
Second lien secured debt investments98,317
 8.8
 92,384
 8.3
Unsecured debt investments12,911
 1.2
 12,819
 1.2
Equity investments(1)
137,491
 12.3
 158,956
 14.3
Equity warrants1,987
 0.2
 1,892
 0.2
Total$1,113,450
 100.0% $1,110,128
 100.0%
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 — Investment in HMS-ORIX SLF LLC)
The composition of the Company’s investments as of December 31, 2018, at cost and fair value, was as follows (dollars in thousands):
Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
First lien secured debt investments$857,680
 80.0% $841,351
 78.8%$873,331
 77.8% $846,427
 76.5%
Second lien secured debt investments92,964
 8.7
 94,278
 8.8
98,281
 8.8
 93,573
 8.4
Unsecured debt investments11,347
 1.0
 11,012
 1.0
12,038
 1.1
 11,236
 1.0
Equity investments(1)
107,906
 10.1
 119,077
 11.2
136,051
 12.1
 153,313
 13.9
Equity warrants2,012
 0.2
 1,923
 0.2
1,987
 0.2
 2,019
 0.2
Total$1,071,909
 100.0% $1,067,641
 100.0%$1,121,688
 100.0% $1,106,568
 100.0%
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLCLLC))


The composition of the Company’s investments as of December 31, 2017, at cost and fair value, was as follows (dollars in thousands):
 Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
First lien secured debt investments$856,582
 80.5% $830,460
 79.1%
Second lien secured debt investments97,691
 9.2
 97,940
 9.3
Unsecured debt investments11,194
 1.0
 11,368
 1.1
Equity investments (1)
96,850
 9.1
 107,597
 10.3
Equity warrants2,012
 0.2
 2,074
 0.2
Total$1,064,329
 100.0% $1,049,439
 100.0%
(1) Includes the Company’s investment in HMS-ORIX. (See Note 4 - Investment in HMS-ORIX SLF LLC)

The composition of the Company’s investments by geographic region as of March 31, 2019, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):
 Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
Northeast$143,343
 13.6% $135,374
 12.9%
Southeast181,414
 17.2
 191,491
 18.2
West223,024
 21.1
 217,203
 20.6
Southwest238,095
 22.5
 235,385
 22.3
Midwest237,642
 22.5
 241,713
 22.9
Non-United States32,680
 3.1
 32,304
 3.1
Total$1,056,198
 100.0% $1,053,470
 100.0%
The composition of the Company’s investments by geographic region as of December 31, 2018, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):
Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
Northeast$171,795
 16.8% $165,380
 16.2%$153,513

14.4%
$146,819

13.9%
Southeast174,008
 17.0
 181,646
 17.8
171,384

16.1

181,182

17.2
West197,526
 19.3
 195,578
 19.2
230,843

21.7

221,012

21.0
Southwest222,412
 21.8
 218,844
 21.5
242,402

22.8

238,221

22.6
Midwest225,377
 22.0
 225,788
 22.2
233,392

21.9

233,067

22.1
Non-United States32,052
 3.1
 31,631
 3.1
33,497

3.1

33,183

3.2
Total$1,023,170
 100.0% $1,018,867
 100.0%$1,065,031

100.0%
$1,053,484

100.0%
The composition of the Company’s investments by geographic region as of December 31, 2017, at cost and fair value, was as follows (dollars in thousands) (since the Other Portfolio investments do not represent a single geographic region, this information excludes Other Portfolio investments):
 Investments at Cost Cost Percentage of Total Portfolio Investments at Fair Value 
Fair Value
Percentage of
Total Portfolio
Northeast$155,908

15.4%
$154,098

15.4%
Southeast180,946

17.8

188,290

18.8
West190,615

18.8

177,422

17.7
Southwest193,219

19.0

190,926

19.1
Midwest250,005

24.6

244,331

24.4
Non-United States44,987

4.4

45,764

4.6
Total$1,015,680

100.0%
$1,000,831

100.0%



The composition of the Company’s total investments by industry as of March 31, 20182019 and December 31, 2017,2018, at cost and fair value, was as follows (since the Other Portfolio investments do not represent a single industry, this information excludes Other Portfolio investments):
Cost Fair ValueCost Fair Value
March 31, 2018 December 31, 2017 March 31, 2018 December 31, 2017March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018
Commercial Services and Supplies8.8% 7.9% 8.1% 7.7%6.8% 6.7% 6.4% 6.3%
Media6.2
 5.5
 6.2
 5.5
Oil, Gas, and Consumable Fuels5.7
 4.7
 5.8
 4.7
Internet Software and Services5.0
 4.9
 5.0
 5.0
Construction and Engineering6.5
 5.4
 6.6
 5.5
4.9
 4.9
 5.1
 5.1
IT Services4.8
 5.8
 4.8
 5.9
Aerospace and Defense5.8
 4.8
 5.8
 4.9
4.8
 4.7
 4.8
 4.6
Diversified Consumer Services5.0
 3.6
 4.9
 3.7
Hotels, Restaurants and Leisure4.9
 6.2
 4.9
 6.3
Diversified Telecommunication Services4.7
 5.3
 4.6
 5.3
4.6
 4.6
 4.4
 4.4
Communications Equipment4.5
 4.3
 4.7
 4.5
4.2
 4.1
 3.7
 3.8
Media4.3
 4.0
 4.2
 3.9
IT Services4.0
 4.6
 4.0
 4.6
Machinery4.0
 4.0
 5.4
 5.3
Energy Equipment and Services4.0
 3.5
 3.8
 3.2
3.6
 3.4
 3.5
 3.5
Internet Software and Services3.6
 3.3
 3.6
 3.3
Hotels, Restaurants, and Leisure3.4
 3.4
 3.4
 3.4
Specialty Retail3.4
 3.1
 2.9
 2.5
Distributors3.2
 3.2
 3.1
 3.1
Food Products2.9
 2.9
 2.8
 2.9
Leisure Equipment and Products2.8
 3.4
 2.7
 3.4
Computers and Peripherals2.6
 2.6
 3.4
 3.4
Diversified Consumer Services2.3
 2.3
 1.6
 1.8
Health Care Providers and Services2.2
 2.8
 2.1
 2.8
Construction Materials2.2
 2.3
 2.4
 2.4
Road & Rail1.8
 1.7
 1.8
 1.7
Internet and Catalog Retail1.7
 1.7
 1.4
 1.3
Software1.6
 1.7
 1.9
 1.9
Food & Staples Retailing1.6
 1.6
 1.6
 1.6
Professional Services3.4
 3.5
 3.5
 3.6
1.5
 1.6
 1.4
 1.6
Machinery3.4
 3.5
 4.0
 4.0
Distributors3.1
 3.1
 3.1
 3.2
Leisure Equipment and Products2.9
 3.0
 3.0
 3.1
Oil, Gas and Consumable Fuels2.8
 2.4
 2.8
 2.5
Health Care Providers and Services2.8
 1.5
 2.8
 1.6
Food Products2.5
 2.6
 2.5
 2.6
Computers and Peripherals2.3
 2.3
 2.6
 2.6
Internet and Catalog Retail1.9
 1.9
 1.5
 1.6
Health Care Equipment and Supplies1.8
 2.0
 1.7
 2.1
Specialty Retail1.6
 2.9
 1.6
 2.0
Construction Materials1.5
 1.5
 1.5
 1.6
Diversified Financial Services1.3
 1.3
 1.2
 1.2
Trading Companies and Distributors1.2
 1.2
 1.3
 1.3
1.5
 1.5
 1.6
 1.4
Capital Markets1.2
 1.1
 1.3
 1.1
Wireless Telecommunication Services1.4
 1.4
 1.4
 1.3
Containers and Packaging1.3
 1.3
 1.3
 1.3
Household Durables1.2
 1.3
 1.2
 1.3
Textiles, Apparel & Luxury Goods1.1
 1.1
 1.1
 1.0
Transportation Infrastructure1.2
 
 1.2
 
1.0
 1.0
 1.0
 1.0
Food & Staples Retailing1.0
 1.0
 1.0
 1.0
Personal Products1.0
 1.0
 1.0
 1.0
Auto Components0.7
 2.7
 0.7
 2.4
Household Durables0.4
 1.6
 0.4
 1.6
Other (1)
5.9
 7.0
 6.1
 7.0
4.7
 4.8
 4.8
 4.8
Total100.0% 100.0% 100.0% 100.0%100.0% 100.0% 100.0% 100.0%
(1) Includes various industries with each industry individually less than 1.0% of the total combined LMM, Middle Market and Private Loan portfolio investments.

Note 4 — Investment in HMS-ORIX SLF LLC

On April 4, 2017, the Company and ORIX Funds Corp. (“Orix”), entered into a limited liability company agreement to co-manage HMS-ORIX SLF LLC (“HMS-ORIX”), which invests primarily in broadly-syndicated loans. Pursuant to the terms of the limited liability agreement and through representation on the HMS-ORIX Board of Managers, the Company and Orix each have 50% voting control of HMS-ORIX and together are required to agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. The Company does not operationallyhave sole control of significant actions of HMS-ORIX and, accordingly, does not consolidate the operations of HMS-ORIX within the consolidated financial statements. The Company and Orix have committed to provide, and have funded, an aggregate of $50.0 million of equity to HMS-ORIX, with the Company providing $30.0 million (60% of the equity) and Orix providing $20.0 million (40% of the equity).

As of March 31, 20182019 and December 31, 2017,2018, HMS-ORIX had total assets of $146.3$176.0 million and $142.9$162.5 million, respectively, and HMS-ORIX’s portfolio consisted of 78114 and 74107 broadly-syndicated loans, respectively, all of which were secured by first-priority liens, generally in industries similar to those in which the Company may directly invest. As of both March 31, 20182019 and December 31, 2017,2018, there were no loans in HMS-ORIX’s portfolio that were on non-accrual status.



On April 5, 2017, HMS-ORIX closed on a $100.0 million credit facility with Bank of America, N.A. (the “Initial HMS-ORIX Credit Facility”). The facility hasInitial HMS-ORIX Credit Facility had a maturity date of April 5, 2020, and borrowings under the facility bearaccrued interest at a rate equal to LIBOR plus 1.65% per annum.

On November 20, 2018, HMS-ORIX closed on a $170.0 million credit facility with Citibank, N.A. (the “Refinanced HMS-ORIX Credit Facility”). The proceeds from the Refinanced HMS-ORIX Credit Facility were used to pay off the outstanding balance on the Initial HMS-ORIX Credit Facility, which was subsequently terminated. The reinvestment period for the Refinanced HMS-ORIX Credit Facility is scheduled to expire on September 6, 2019, and the maturity date is nine months after expiration of the reinvestment period (unless terminated earlier pursuant to the terms of the Refinanced HMS-ORIX Credit Facility). Borrowings under the Refinanced HMS-ORIX Credit Facility bear interest at a rate equal to the three-month LIBOR plus 1.15%. As of March 31, 20182019 and December 31, 2017, $91.32018, $123.1 million and $86.5$98.8 million, respectively, wasof advances were outstanding under this facility.the Refinanced HMS-ORIX Credit Facility. Borrowings under the facility are secured by substantially all of the assets of HMS-ORIX.

The following table presents a summary of HMS-ORIX’s portfolio as of March 31, 20182019 and December 31, 20172018 (dollars in thousands):
As of March 31, 2018As of December 31, 2017As of March 31, 2019As of December 31, 2018
  
Total debt investments (1)
$140,212
$138,908
$170,325
$165,025
Weighted average effective yield on loans(2)
5.26%4.95%5.91%5.82%
Largest loan to a single borrower(1)
$3,487
$3,496
$3,452
$3,461
Total of 10 largest loans to borrowers(1)
$30,812
$30,790
$30,228
$30,430
(1) At principal amount.
(2) Weighted average effective annual yield is calculated based on the investments at the end of each period and includes accretion of original issue discounts and amortization of premiums, and the amortization of fees received in connection with transactions. Investments, if any, on non-accrual status are assumed to have a zero yield in the calculation of weighted average effective annual yield.

The following table presents a listing of HMS-ORIX’s individual loansloan investments as of March 31, 2018:2019:
HMS-ORIXLoan Portfolio
As of March 31, 2018
As of March 31, 2019As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair ValueIndustryType of InvestmentPrincipalCostFair Value
      
Acosta, Inc.Commercial Services & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 26, 2021)$1,995
$1,884
$1,679
Acrisure, LLCInsuranceLIBOR (2 months) + 4.25%, Current Coupon 5.99%, Secured Debt (Maturity - November 22, 2023)2,109
2,116
2,139
InsuranceLIBOR (2 months) + 4.25%, Current Coupon 6.88%, Secured Debt (Maturity - November 22, 2023)$2,486
$2,482
$2,478
Advantage Sales & Marketing Inc.Commercial Services & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.02%, Secured Debt (Maturity - July 23, 2021)1,985
1,937
1,950
Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 23, 2021)1,965
1,914
1,701
Air Medical Group Holdings, Inc.Health Care Providers & ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - April 28, 2022)1,985
1,975
1,996
Healthcare Providers and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - April 28, 2022)1,965
1,956
1,875
Alphabet Holding Company, Inc.Food ProductsLIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - September 26, 2024)1,990
1,981
1,860
AlixPartners, LLPProfessional ServicesLIBOR (3 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - April 4, 2024)990
990
988
American Seafoods Group LLCFood ProductsLIBOR (1 month) + 2.75%, Current Coupon 4.61%, Secured Debt (Maturity - August 21, 2023)1,456
1,450
1,459
Food ProductsPrime + 1.75%, Current Coupon 7.25%, Secured Debt (Maturity - August 21, 2023)1,435
1,428
1,422
Ancestry.com Operations Inc.Internet Software & ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - October 19, 2023)1,985
2,002
1,998
Internet Software and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - October 19, 2023)1,293
1,306
1,291
Arch Coal, Inc.Metals & MiningLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 7, 2024)1,980
1,986
1,994
Metals and MiningLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - March 7, 2024)1,960
1,967
1,962
AshCo, Inc.Specialty RetailLIBOR (3 months) + 5.00%, Current Coupon 6.88%, Secured Debt (Maturity - September 25, 2024)1,990
1,948
1,974
Asurion, LLCInsuranceLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - November 3, 2023)1,271
1,271
1,281
Atkore International, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 2.75%, Current Coupon 5.06%, Secured Debt (Maturity - December 22, 2023)2,970
2,988
2,993
BCP Renaissance Parent L.L.C.Oil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.77%, Secured Debt (Maturity - October 31, 2024)600
602
604
  


HMS-ORIX
Loan Portfolio
As of March 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
BMC Software Finance, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 12, 2022)$3,148
$3,172
$3,167
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - February 29, 2024)2,970
2,966
2,986
Calpine CorporationIndependent Power and Renewable Electricity ProducersLIBOR (3 months) + 2.50%, Current Coupon 4.81%, Secured Debt (Maturity - January 15, 2023)1,985
1,991
1,996
CHS/Community Health Systems, Inc.Healthcare Providers & ServicesLIBOR (3 months) + 3.00%, Current Coupon 4.98%, Secured Debt (Maturity - January 27, 2021)1,613
1,608
1,554
ClubCorp Holdings, Inc.Real Estate Management & DevelopmentLIBOR (3 months) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,973
Colorado Buyer IncTechnology Hardware, Storage & PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 4.78%, Secured Debt (Maturity - May 1, 2024)2,978
2,987
2,983
Confie Seguros Holding II Co.InsuranceLIBOR (1 month) + 5.25%, Current Coupon 7.23%, Secured Debt (Maturity - April 19, 2022)1,980
1,986
1,982
CPI International, Inc.Aerospace & DefenseLIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 26, 2024)1,990
1,990
2,001
Deerfield Holdings CorporationDiversified Financial ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - February 13, 2025)3,000
2,996
3,014
Diamond Resorts International, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 4.50%, Current Coupon 6.38%, Secured Debt (Maturity - September 1, 2023)2,146
2,173
2,187
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (3 months) + 3.25%, Current Coupon 5.56%, Secured Debt (Maturity - June 28, 2023)1,890
1,902
1,906
Duff & Phelps CorporationDiversified Financial ServicesLIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - November 7, 2024)1,000
1,001
1,009
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 6.19%, Secured Debt (Maturity - April 29, 2024)1,985
2,003
1,985
Envision Healthcare CorporationHealth Care Providers & ServicesLIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - December 1, 2023)1,415
1,415
1,423
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.50%, Current Coupon 5.49%, Secured Debt (Maturity - May 9, 2024)1,985
1,979
2,003
Exgen Renewables IV, LLCElectrical ProductionLIBOR (3 months) + 3.00%, Current Coupon 4.99%, Secured Debt (Maturity - November 29, 2024)299
299
303
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 4.75%, Current Coupon 6.44%, Secured Debt (Maturity - January 5, 2024)930
941
937
Fitness International, LLCHotels, Restaurants & LeisureLIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 1, 2020)1,735
1,755
1,753
Flex Acquisition Company IncContainers & PackagingLIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - December 29, 2023)1,990
1,999
2,002
Flexera Software LLCSoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - February 26, 2025)1,529
1,526
1,541
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - July 30, 2024)1,990
2,000
2,002
HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Asurion, LLCInsuranceLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 3, 2023)$1,258
$1,258
$1,256
  LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 4, 2024)323
321
322
   1,581
1,579
1,578
Atkore International, Inc.Electric Equipment, Instruments and ComponentsLIBOR (3 months) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - December 22, 2023)2,887
2,905
2,866
Barracuda NetworksInternet Software and ServicesLIBOR (3 months) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 12, 2025)997
972
992
Bass Pro Group, LLCSpecialty RetailLIBOR (3 months) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - September 25, 2024)1,970
1,926
1,945
Bausch Health Companies Inc.Healthcare Providers and ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.48%, Secured Debt (Maturity - June 2, 2025)1,347
1,353
1,344
BCP Renaissance Parent L.L.C.Oil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 6.24%, Secured Debt (Maturity - October 31, 2024)596
597
595
Boxer Parent Company, Inc.SoftwareLIBOR (3 months) + 4.25%, Current Coupon 6.85%, Secured Debt (Maturity - October 2, 2025)2,793
2,767
2,751
Boyd Gaming CorporationHotel, Restaurant and LeisureLIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)1,247
1,206
1,239
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - February 29, 2024)2,940
2,936
2,867
Caesars Resort Collection, LLCHotel, Restaurant and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - December 23, 2024)1,244
1,208
1,234
Calpine CorporationIndependent Power and Renewable Electricity ProviderLIBOR (3 months) + 2.50%, Current Coupon 5.11%, Secured Debt (Maturity - January 15, 2023)1,964
1,971
1,963
CareerBuilderInternet Software and ServicesLIBOR (3 months) + 6.75%, Current Coupon 9.35%, Secured Debt (Maturity - July 31, 2023)1,449
1,449
1,451
CDS U.S. Intermediate Holdings, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - July 8, 2022)970
972
904
CenturyLink Inc.Diversified Telecommunication ServicesLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2025)995
942
979
Citgo Petroleum CorporationOil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 6.30%, Secured Debt (Maturity - July 29, 2021)695
690
694
ClubCorp Holdings, Inc.Real Estate Management and DevelopmentLIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,867
Compass Power Generation, L.L.C.Independent Power and Renewable Electricity ProviderLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - December 20, 2024)1,262
1,262
1,263
Creative Artists Agency, LLCEntertainmentLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 26, 2024)1,970
1,970
1,945
  LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - February 15, 2024)995
981
993
   2,965
2,951
2,938


HMS-ORIX
Loan Portfolio
As of March 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Golden Nugget, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 3.25%, Current Coupon 4.90%, Secured Debt (Maturity - October 4, 2023)$1,985
$1,985
$2,005
Greatbatch Ltd.Health Care Equipment & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.99%, Secured Debt (Maturity - October 27, 2022)2,627
2,642
2,652
GYP Holdings III Corp.Trading Companies & DistributorsLIBOR (1 month) + 3.00%, Current Coupon 4.77%, Secured Debt (Maturity - April 3, 2023)3,474
3,496
3,493
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 18, 2023)1,975
1,982
1,980
HD Supply Waterworks, Ltd.Trading Companies & DistributorsLIBOR (3 months) + 3.00%, Current Coupon 5.01%, Secured Debt (Maturity - August 1, 2024)140
139
141
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 29, 2024)1,985
2,004
1,999
IG Investments Holdings, LLCProfessional ServicesLIBOR (1 month) + 3.50%, Current Coupon 5.80%, Secured Debt (Maturity - October 29, 2021)1,985
1,996
2,012
IRB Holding Corp.Hotels, Restaurants & LeisureLIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - February 5, 2025)400
400
405
Jackson Hewitt Tax Service Inc.Diversified Financial ServicesLIBOR (1 month) + 7.00%, Current Coupon 8.77%, Secured Debt (Maturity - July 30, 2020)1,939
1,875
1,934
KBRConstructionLIBOR (3 months) + 3.75%, Current Coupon 5.76%, Secured Debt (Maturity - March 28, 2025)1,250
1,244
1,244
KMG Chemicals, Inc.ChemicalsLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 17, 2024)807
804
813
KUEHG Corp.Educational ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.05%, Secured Debt (Maturity - August 12, 2022)2,476
2,482
2,494
LANDesk Group, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 6.13%, Secured Debt (Maturity - January 22, 2024)991
996
976
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - December 1, 2023)1,985
2,003
2,007
MA FinanceCo., LLCElectric Equipment, Instruments & ComponentsLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024)387
387
383
Mallinckrodt International Finance S.A.PharmaceuticalsLIBOR (3 months) + 3.00%, Current Coupon 4.82%, Secured Debt (Maturity - February 24, 2025)1,000
998
999
Mohegan Tribal Gaming AuthorityHotels, Restaurants & LeisureLIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 13, 2023)1,929
1,946
1,929
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (3 months) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - June 7, 2023)2,777
2,813
2,793
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - July 1, 2024)1,990
1,980
2,005
Ortho-Clinical Diagnostics, IncLife Sciences Tools & ServicesLIBOR (1 month) + 3.75%, Current Coupon 5.63%, Secured Debt (Maturity - June 30, 2021)1,975
1,971
1,994
PODS, LLCTransportation & LogisticsLIBOR (1 month) + 3.00%, Current Coupon 4.71%, Secured Debt (Maturity - December 6, 2024)1,990
1,989
2,006
HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Cyxtera DC Holdings, Inc.Technology Hardware, Storage and PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 1, 2024)$2,948
$2,958
$2,900
Deerfield Holdings CorporationDiversified Financial ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 13, 2025)2,970
2,966
2,919
Diamond Resorts International, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 1, 2023)2,125
2,152
2,053
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (3 months) + 3.25%, Current Coupon 5.86%, Secured Debt (Maturity - June 28, 2023)1,816
1,829
1,808
Eldorado Resorts, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 2.25%, Current Coupon 4.88%, Secured Debt (Maturity - April 17, 2024)1,000
969
993
Encapsys LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - November 7, 2024)990
991
978
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - April 29, 2024)1,965
1,983
1,940
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - May 9, 2024)1,965
1,958
1,963
Exgen Renewables IV, LLCIndependent Power and Renewable Electricity ProviderLIBOR (3 months) + 3.00%, Current Coupon 5.63%, Secured Debt (Maturity - November 29, 2024)294
294
276
Financial & Risk US Holdings, Inc.SoftwareLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - October 1, 2025)1,421
1,420
1,384
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 4.75%, Current Coupon 7.39%, Secured Debt (Maturity - January 5, 2024)883
893
883
Fitness International, LLCHotel, Restaurant and LeisureLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - April 18, 2025)2,034
2,045
2,021
Flex Acquisition Company IncContainers and PackagingLIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - December 29, 2023)1,970
1,979
1,931
Flexera Software LLCSoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 26, 2025)1,514
1,511
1,510
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - July 30, 2024)2,255
2,249
2,256
Golden Nugget, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.23%, Secured Debt (Maturity - October 4, 2023)1,870
1,870
1,856
Gray Television, Inc.Broadcast Radio and TelevisionLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - February 12, 2025)1,839
1,822
1,835
  LIBOR (1 month) + 2.50%, Current Coupon 4.98%, Secured Debt (Maturity - January 2, 2026)285
280
284
   2,124
2,102
2,119
Greatbatch Ltd.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - October 27, 2022)1,934
1,945
1,933
GYP Holdings III Corp.Trading Companies and DistributorsLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - June 2, 2025)3,439
3,464
3,355


HMS-ORIX
Loan Portfolio
As of March 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Radiate Holdco, LLCMediaLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023)$3,275
$3,300
$3,267
  LIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - February 1, 2024)2,564
2,538
2,538
    5,838
5,805
Red Ventures, LLCDirect Marketing ServicesLIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - November 8, 2024)1,990
1,976
2,010
Scientific Games International, Inc.Leisure ProductsLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - August 14, 2024)899
900
903
Seattle SpinCo, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024)2,613
2,616
2,590
SeaWorld Parks & Entertainment, Inc.Hotels, Restaurants & LeisureLIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - April 1, 2024)1,980
1,982
1,975
Signode Industrial Group US Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 4.40%, Secured Debt (Maturity - April 30, 2021)2,733
2,750
2,735
SS&C TechnologiesSoftwareLIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025)632
630
635
  LIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025)225
225
227
    855
862
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 5.79%, Secured Debt (Maturity - September 12, 2024)1,995
1,990
1,980
Telenet Financing USD LLCDiversified Telecommunication ServicesLIBOR (1 month) + 2.50%, Current Coupon 4.28%, Secured Debt (Maturity - March 2, 2026)1,655
1,655
1,665
Transdigm, Inc.Aerospace & DefenseLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 9, 2023)1,980
1,987
1,988
  LIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 22, 2024)998
995
1,002
    2,982
2,990
Travelport Finance (Luxembourg) S.A.R.L.Internet Software & ServicesLIBOR (3 months) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - March 17, 2025)1,250
1,244
1,254
Traverse Midstream Partners LLCOil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024)781
784
787
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - August 18, 2023)1,985
1,996
1,998
Ultra Resources, Inc.Oil, Gas & Consumable FuelsLIBOR (1 month) + 3.00%, Current Coupon 4.76%, Secured Debt (Maturity - April 12, 2024)2,000
2,002
1,986
Utz Quality Foods, LLCCommercial Services & SuppliesLIBOR (1 month) + 3.50%, Current Coupon 5.35%, Secured Debt (Maturity - November 21, 2024)1,600
1,599
1,619
Valeant Pharmaceuticals International, Inc.PharmaceuticalsLIBOR (1 month) + 3.50%, Current Coupon 5.24%, Secured Debt (Maturity - April 1, 2022)1,456
1,462
1,473
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - November 30, 2023)1,555
1,568
1,564
HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 18, 2023)$1,944
$1,950
$1,910
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - March 29, 2024)1,219
1,230
1,221
Hornblower Sub, LLCHotel, Restaurant and LeisureLIBOR (3 months) + 4.50%, Current Coupon 7.10%, Secured Debt (Maturity - April 28, 2025)1,995
1,989
1,999
Hyland Software, Inc.SoftwareLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 1, 2024)498
485
498
Infiltrator Water Technologies, LLCSpecialty RetailLIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - May 23, 2025)1,970
1,982
1,967
Invenergy Thermal Operating I LLCRenewable Energy ProviderLIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 27, 2022)1,392
1,371
1,382
  LIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - August 28, 2025)1,920
1,916
1,932
   3,312
3,287
3,314
IRB Holding Corp.Food ProductsLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 5, 2025)396
396
389
Ivanti Software, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - January 22, 2024)981
987
975
KBR, Inc.Aerospace and DefenseLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - April 25, 2025)1,987
1,979
1,993
Kingpin Intermediate Holdings LLCDiversified Consumer ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 3, 2024)995
986
991
KUEHG Corp.Diversified Consumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.35%, Secured Debt (Maturity - February 21, 2025)2,451
2,458
2,434
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - December 1, 2023)1,965
1,983
1,962
MA FinanceCo., LLCSoftwareLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)383
384
377
Match Group, Inc.MediaLIBOR (6 months) + 3.00%, Current Coupon 5.69%, Secured Debt (Maturity - February 24, 2025)676
674
647
  LIBOR (3 months) + 2.50%, Current Coupon 5.08%, Secured Debt (Maturity - November 16, 2022)2,000
1,998
1,998
   2,676
2,672
2,645
McAfee, LLCSoftwareLIBOR (3 months) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 30, 2024)945
932
945
McDermott International, Inc.Construction and EngineeringLIBOR (1 month) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - May 12, 2025)990
971
954
Metro-Goldwyn-Mayer Inc.MediaLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - July 3, 2025)995
969
990
      


HMS-ORIX
Loan Portfolio
As of March 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Vistra Operations Company LLCElectric UtilitiesLIBOR (1 month) + 2.25%, Current Coupon 4.06%, Secured Debt (Maturity - December 14, 2023)$1,980
$1,991
$1,994
West CorporationDiversified Telecommunication ServicesLIBOR (1 month) + 3.50%, Current Coupon 5.40%, Secured Debt (Maturity - October 10, 2024)650
649
652
  LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 10, 2024)1,029
1,020
1,040
    1,669
1,692
WideOpenWest Finance, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.10%, Secured Debt (Maturity - August 18, 2023)3,487
3,496
3,420
Total Loan Portfolio   $140,265
$140,200
HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Micro Holding Corp.MediaLIBOR (1 month) + 2.50%, Current Coupon 4.99%, Secured Debt (Maturity - January 30, 2023)$997
$971
$982
  LIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - September 13, 2024)1,244
1,215
1,232
   2,241
2,186
2,214
Mohegan Tribal Gaming AuthorityHotel, Restaurant and LeisureLIBOR (1 month) + 4.00%, Current Coupon 6.50%, Secured Debt (Maturity - October 13, 2023)1,909
1,927
1,818
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - June 7, 2023)2,569
2,604
2,499
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - July 1, 2024)1,970
1,961
1,920
National Mentor Holdings, Inc.Healthcare Facilities and ServicesLIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)1,883
1,870
1,891
  LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)117
116
117
   2,000
1,986
2,008
Ortho-Clinical Diagnostics, IncLife Sciences Tools and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - June 30, 2025)1,935
1,931
1,868
Packaging Coordinators Midco IncHealthcare Facilities and ServicesLIBOR (3 months) + 4.00%, Current Coupon 6.61%, Secured Debt (Maturity - June 30, 2023)995
990
994
Party City Holdings Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 19, 2022)1,240
1,220
1,237
Phoenix Guarantor Inc.Healthcare Facilities and ServicesLIBOR (1 month) + 4.50%, Current Coupon 6.98%, Secured Debt (Maturity - March 5, 2026)917
903
905
PI UK Holdco II LimitedDiversified Financial ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - January 3, 2025)2,970
2,949
2,932
Prime Security Services Borrower, LLCCommercial Services and SuppliesLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - May 2, 2022)653
637
649
Rackspace Hosting, Inc.Electric Equipment, Instruments and ComponentsLIBOR (3 months) + 3.00%, Current Coupon 5.74%, Secured Debt (Maturity - November 3, 2023)3,242
3,266
3,061
Radiate Holdco, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 1, 2024)2,538
2,514
2,509
Radiology Partners, Inc.Healthcare Facilities and ServicesLIBOR (3 months) + 4.75%, Current Coupon 7.55%, Secured Debt (Maturity - July 9, 2025)1,496
1,489
1,502
Red Ventures, LLCProfessional ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 8, 2024)1,627
1,616
1,625
Savage Enterprises, LLCRoad and RailLIBOR (1 month) + 4.50%, Current Coupon 6.99%, Secured Debt (Maturity - August 1, 2025)1,024
1,004
1,027
Scientific Games International, Inc.Leisure ProductsLIBOR (2 months) + 2.75%, Current Coupon 5.33%, Secured Debt (Maturity - August 14, 2024)890
891
869
Seattle SpinCo, Inc.SoftwareLIBOR (3 months) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)2,587
2,590
2,548


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
SeaWorld Parks & Entertainment, Inc.Hotel, Restaurant and LeisureLIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - April 1, 2024)$1,960
$1,962
$1,947
ServiceMaster Company, LLCHome and Office ProductsLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - November 8, 2023)651
648
650
Sprint Communications, Inc.Diversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 2, 2024)499
492
491
SRS Distribution Inc.Trading Companies and DistributorsLIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - May 23, 2025)1,194
1,191
1,147
SS&C Technologies, Inc.SoftwareLIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)200
199
198
  LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)278
277
276
   478
476
474
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 6.49%, Secured Debt (Maturity - September 12, 2024)1,975
1,970
1,961
Starfruit US Holdco LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - October 1, 2025)1,250
1,247
1,240
Telenet Financing USD LLCDiversified Telecommunication ServicesLIBOR (1 month) + 2.25%, Current Coupon 4.73%, Secured Debt (Maturity - August 17, 2026)1,655
1,653
1,635
Transdigm, Inc.Aerospace and DefenseLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 9, 2023)1,960
1,967
1,925
  LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 22, 2024)988
985
968
   2,948
2,952
2,893
Travelport Finance (Luxembourg) S.A.R.L.Internet Software and ServicesLIBOR (3 months) + 2.50%, Current Coupon 5.18%, Secured Debt (Maturity - March 17, 2025)1,232
1,226
1,232
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - August 18, 2023)1,960
1,971
1,960
USS Ultimate Holdings IncConsumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - August 26, 2024)597
588
596
Utz Quality Foods, LLCFood ProductsLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - November 21, 2024)1,580
1,579
1,580
VeriFone Systems, Inc.HardwareLIBOR (1 month) + 4.00%, Current Coupon 6.68%, Secured Debt (Maturity - August 20, 2025)499
489
493
Vertafore, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 2, 2025)2,494
2,482
2,463
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - November 30, 2023)1,555
1,569
1,467
VFH Parent LLCDiversified Financial ServicesLIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - March 2, 2026)1,000
995
1,004
Vistra Operations Company LLCElectric UtilitiesLIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - December 14, 2023)1,960
1,971
1,955


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Wand NewCo 3, Inc.AutomobilesLIBOR (1 month) + 3.50%, Current Coupon 5.98%, Secured Debt (Maturity - February 5, 2026)$1,200
$1,189
$1,203
Web.Com Group, Inc.Internet Software and ServicesLIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - October 10, 2025)909
908
900
West CorporationDiversified Telecommunication ServicesLIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - October 10, 2024)645
644
602
  LIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - October 10, 2024)1,019
1,009
963
   1,664
1,653
1,565
WideOpenWest Finance, LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - August 18, 2023)3,452
3,462
3,355
William Morris Endeavor Entertainment, LLCRecreation Facilities and ServicesLIBOR (1 month) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - May 16, 2025)636
607
601
Zekelman Industries, IncManufacturingLIBOR (1 month) + 2.25%, Current Coupon 4.74%, Secured Debt (Maturity - June 14, 2021)1,000
987
993
Total Loan Portfolio  $170,325
$169,827
$167,819

The following table presents a listing of HMS-ORIX’s individual loansloan investments as of December 31, 2017:2018:

HMS-ORIXLoan Portfolio
As of December 31, 2017
As of December 31, 2018As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair ValueIndustryType of InvestmentPrincipalCostFair Value
      
Acosta, Inc.Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 26, 2021)$2,000
$1,881
$1,766
Acrisure, LLCInsuranceLIBOR (2 months) + 4.25%, Current Coupon 5.65%, Secured Debt (Maturity - November 22, 2023)2,115
2,122
2,139
InsuranceLIBOR (2 months) + 4.25%, Current Coupon 6.77%, Secured Debt (Maturity - November 22, 2023)$2,492
$2,487
$2,422
Advantage Sales & Marketing Inc.Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - July 23, 2021)1,990
1,938
1,945
Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - July 23, 2021)1,970
1,913
1,752
Air Medical Group Holdings IncHealth Care Providers & ServicesLIBOR (6 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - April 28, 2022)1,990
1,981
1,993
Albany Molecular Research, Inc.Life Sciences Tools & ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 28, 2024)100
100
99
Alphabet Holding Company, Inc.Food ProductsLIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - September 26, 2024)1,995
1,985
1,935
Air Medical Group Holdings, Inc.Health Care Providers and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - April 28, 2022)1,970
1,960
1,847
AlixPartners, LLPProfessional ServicesLIBOR (3 months) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - April 4, 2024)992
992
956
American Seafoods Group LLCFood ProductsPrime + 2.25%, Current Coupon 6.75%, Secured Debt (Maturity - August 21, 2023)1,500
1,493
1,513
Food ProductsLIBOR (1 month) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - August 21, 2023)1,435
1,428
1,382
Ancestry.com Operations Inc.Internet Software & ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 19, 2023)1,995
2,013
2,007
Internet Software and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - October 19, 2023)1,293
1,306
1,240
Arch Coal, Inc.Metals & MiningLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - March 7, 2024)1,985
1,992
2,004
Metals and MiningLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - March 7, 2024)1,965
1,972
1,916
AshCo, Inc.Specialty RetailLIBOR (3 months) + 5.00%, Current Coupon 6.57%, Secured Debt (Maturity - September 25, 2024)1,995
1,951
1,993
Asurion, LLCInsuranceLIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - November 3, 2023)1,312
1,312
1,320
Atkore International, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 3.00%, Current Coupon 4.70%, Secured Debt (Maturity - December 22, 2023)2,977
3,005
2,999
  


HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
BCP Renaissance Parent L.L.C.Oil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.38%, Secured Debt (Maturity - October 31, 2024)$600
$602
$608
BMC Software Finance, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 12, 2022)3,156
3,181
3,163
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - February 29, 2024)2,977
2,974
2,993
Calpine CorporationIndependent Power and Renewable Electricity ProducersLIBOR (3 months) + 2.50%, Current Coupon 4.20%, Secured Debt (Maturity - January 15, 2023)1,990
1,997
1,991
CHS/Community Health Systems, Inc.Health Care Providers & ServicesLIBOR (3 months) + 3.00%, Current Coupon 4.48%, Secured Debt (Maturity - January 27, 2021)1,613
1,608
1,543
ClubCorp Holdings, Inc.Real Estate Management & DevelopmentLIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,969
Colorado Buyer IncTechnology Hardware, Storage & PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - May 1, 2024)2,985
2,995
3,008
Confie Seguros Holding II Co.InsuranceLIBOR (1 month) + 5.25%, Current Coupon 6.73%, Secured Debt (Maturity - April 19, 2022)1,985
1,992
1,987
CPI International, Inc.Aerospace & DefenseLIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - July 26, 2024)1,995
1,995
2,011
Diamond Resorts International, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 4.50%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)2,152
2,179
2,173
Duff & Phelps CorporationDiversified Financial ServicesLIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - October 15, 2024)491
494
493
  LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - December 4, 2024)2,728
2,724
2,737
   3,219
3,218
3,230
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (3 months) + 3.25%, Current Coupon 4.95%, Secured Debt (Maturity - June 28, 2023)1,904
1,917
1,925
Encapsys LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - November 7, 2024)1,000
1,001
1,006
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 5.88%, Secured Debt (Maturity - April 29, 2024)1,990
2,009
2,005
Envision Healthcare CorporationHealth Care Providers & ServicesLIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - December 1, 2023)2,481
2,481
2,491
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.50%, Current Coupon 4.98%, Secured Debt (Maturity - May 9, 2024)1,990
1,983
2,013
Exgen Renewables IV, LLCElectrical ProductionLIBOR (3 months) + 3.00%, Current Coupon 4.47%, Secured Debt (Maturity - November 29, 2024)300
299
304
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 5.75%, Current Coupon 7.14%, Secured Debt (Maturity - January 5, 2024)952
963
958
Fitness International, LLCHotels, Restaurants & LeisureLIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - July 1, 2020)1,735
1,757
1,760
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Asurion, LLCInsuranceLIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 3, 2023)$1,261
$1,261
$1,212
  LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 4, 2024)323
322
310
   1,584
1,583
1,522
Atkore International, Inc.Electric Equipment, Instruments and ComponentsLIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023)2,948
2,967
2,864
Barracuda NetworksInternet Software and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - February 12, 2025)1,000
974
956
Bass Pro Group, LLCSpecialty RetailLIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 25, 2024)1,975
1,929
1,898
Bausch Health Companies Inc.Health Care Equipment and SuppliesLIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - June 2, 2025)1,402
1,408
1,342
BCP Renaissance Parent L.L.C.Oil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 31, 2024)597
599
583
Boxer Parent Company, Inc.SoftwareLIBOR (3 months) + 4.25%, Current Coupon 7.05%, Secured Debt (Maturity - October 2, 2025)2,800
2,772
2,708
Boyd Gaming CorporationHotels, Restaurants and LeisureLIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)1,250
1,208
1,208
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - February 29, 2024)2,947
2,943
2,774
Caesars Resort Collection, LLCHotels, Restaurants and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - December 23, 2024)1,247
1,210
1,201
Calpine CorporationIndependent Power and Renewable Electricity ProviderLIBOR (3 months) + 2.50%, Current Coupon 5.31%, Secured Debt (Maturity - January 15, 2023)1,970
1,977
1,881
CareerBuilderInternet Software and ServicesLIBOR (3 months) + 6.75%, Current Coupon 9.14%, Secured Debt (Maturity - July 31, 2023)1,500
1,500
1,493
CDS U.S. Intermediate Holdings, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - July 8, 2022)973
974
914
CenturyLink, Inc.Diversified Telecommunication ServicesLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - January 31, 2025)997
943
934
Citgo Petroleum CorporationOil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 5.90%, Secured Debt (Maturity - July 29, 2021)695
689
682
ClubCorp Holdings, Inc.Real Estate Management and DevelopmentLIBOR (3 months) + 2.75%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,852
CPI International, Inc.Aerospace and DefenseLIBOR (1 month) + 3.50%, Current Coupon 6.01%, Secured Debt (Maturity - July 26, 2024)1,975
1,975
1,919
Creative Artists Agency LLCEntertainmentLIBOR (1 month) + 3.00%, Current Coupon 5.47%, Secured Debt (Maturity - February 15, 2024)997
983
966
Cyxtera DC Holdings, Inc.Technology Hardware, Storage and PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - May 1, 2024)2,955
2,966
2,840


HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Flex Acquisition Company IncContainers & PackagingLIBOR (3 months) + 3.00%, Current Coupon 4.34%, Secured Debt (Maturity - December 29, 2023)$1,995
$2,004
$2,008
Flexera Software LLCSoftwareLIBOR (1 month) + 3.50%, Current Coupon 4.83%, Secured Debt (Maturity - April 2, 2020)1,995
2,013
2,008
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 4.44%, Secured Debt (Maturity - July 30, 2024)1,995
2,005
2,004
Golden Nugget, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 4, 2023)1,990
1,990
2,008
Greatbatch Ltd.Health Care Equipment & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 27, 2022)2,763
2,780
2,788
GYP Holdings III Corp.Trading Companies & DistributorsLIBOR (1 month) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - March 31, 2023)3,483
3,506
3,502
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 18, 2023)1,980
1,987
1,996
HD Supply Waterworks, Ltd.Trading Companies & DistributorsLIBOR (6 months) + 3.00%, Current Coupon 4.46%, Secured Debt (Maturity - August 1, 2024)140
140
141
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - March 29, 2024)1,990
2,009
2,001
IG Investments Holdings, LLCProfessional ServicesLIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - October 29, 2021)1,990
2,002
1,992
Jackson Hewitt Tax Service Inc.Diversified Financial ServicesLIBOR (1 month) + 7.00%, Current Coupon 8.38%, Secured Debt (Maturity - July 30, 2020)1,939
1,868
1,922
KMG Chemicals, Inc.ChemicalsLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 17, 2024)863
859
868
KUEHG Corp.Educational ServicesLIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - August 12, 2022)2,482
2,489
2,493
LANDesk Group, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 5.82%, Secured Debt (Maturity - January 22, 2024)993
999
947
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - December 1, 2023)1,990
2,009
2,007
MA FinanceCo., LLCElectric Equipment, Instruments & ComponentsLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024)387
387
388
Mohegan Tribal Gaming AuthorityHotels, Restaurants & LeisureLIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - October 13, 2023)1,985
2,003
2,006
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - June 7, 2023)2,896
2,935
2,905
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - July 1, 2024)1,990
1,981
2,000
Ortho-Clinical Diagnostics, IncLife Sciences Tools & ServicesLIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - June 30, 2021)1,985
1,980
1,992
PODS, LLCTransportation & LogisticsLIBOR (1 month) + 3.00%, Current Coupon 4.40%, Secured Debt (Maturity - December 6, 2024)1,995
1,994
2,010
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Deerfield Holdings CorporationDiversified Financial ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - February 13, 2025)$2,978
$2,974
$2,827
Diamond Resorts International, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)2,130
2,159
1,992
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - June 28, 2023)1,816
1,830
1,781
Eldorado Resorts, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 17, 2024)1,000
968
960
Encapsys LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - November 7, 2024)993
994
970
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 6.81%, Secured Debt (Maturity - April 29, 2024)1,970
1,989
1,862
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - May 9, 2024)1,970
1,963
1,917
Exgen Renewables IV, LLCIndependent Power and Renewable Electricity ProviderLIBOR (3 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - November 29, 2024)294
293
281
Financial & Risk US Holdings, Inc.SoftwareLIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - October 1, 2025)1,425
1,424
1,363
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 4.75%, Current Coupon 7.29%, Secured Debt (Maturity - January 5, 2024)889
900
885
Fitness International, LLCHotels, Restaurants and LeisureLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - April 18, 2025)2,039
2,050
1,963
Flex Acquisition Company IncContainers and PackagingLIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - December 29, 2023)1,975
1,985
1,869
Flexera Software LLCSoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - February 26, 2025)1,518
1,514
1,468
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - July 30, 2024)2,316
2,309
2,242
Golden Nugget, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.19%, Secured Debt (Maturity - October 4, 2023)1,875
1,875
1,811
GrafTech Finance Inc.Metals and MiningLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - February 12, 2025)1,950
1,931
1,850
Gray Television, Inc.Broadcast Radio and TelevisionLIBOR (3 months) + 2.50%, Current Coupon 4.90%, Secured Debt (Maturity - January 2, 2026)286
281
277
Greatbatch Ltd.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - October 27, 2022)2,000
2,012
1,956
GYP Holdings III Corp.Trading Companies and DistributorsLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - June 2, 2025)3,448
3,473
3,261
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 18, 2023)1,944
1,951
1,841
HD Supply Waterworks, Ltd.Trading Companies and DistributorsLIBOR (6 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - August 1, 2024)139
138
134


HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Rackspace Hosting, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023)$3,284
$3,309
$3,286
Radiate Holdco, LLCMediaLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - February 1, 2024)2,570
2,544
2,547
Red Ventures, LLCDirect Marketing ServicesLIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - November 8, 2024)1,995
1,981
1,996
Scientific Games International, Inc.Leisure ProductsLIBOR (1 month) + 3.25%, Current Coupon 4.67%, Secured Debt (Maturity - August 14, 2024)399
401
403
Seattle Spin Co.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024)2,613
2,616
2,618
SeaWorld Parks & Entertainment, Inc.Hotels, Restaurants & LeisureLIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - April 1, 2024)1,985
1,987
1,966
Signode Industrial Group US Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - April 30, 2021)2,773
2,792
2,785
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2024)2,000
1,995
1,965
Telenet Financing USD LLCDiversified Telecommunications ServicesLIBOR (1 month) + 2.50%, Current Coupon 3.92%, Secured Debt (Maturity - March 2, 2026)1,655
1,655
1,663
Transdigm, Inc.Aerospace & DefenseLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 9, 2023)1,985
1,992
1,990
  LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - August 22, 2024)1,000
998
1,006
   2,985
2,990
2,996
Travelport Finance (Luxembourg) S.A.R.L.Internet Software & ServicesLIBOR (3 months) + 2.75%, Current Coupon 4.17%, Secured Debt (Maturity - September 2, 2021)1,901
1,901
1,903
Traverse Midstream Partners LLCOil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024)781
784
793
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 4.81%, Secured Debt (Maturity - August 18, 2023)1,990
2,002
2,003
Ultra Resources, Inc.Oil, Gas & Consumable FuelsLIBOR (1 month) + 3.00%, Current Coupon 4.41%, Secured Debt (Maturity - April 12, 2024)2,000
2,002
2,002
Utz Quality Foods, LLCCommercial Services and SuppliesLIBOR (1 month) + 3.50%, Current Coupon 5.01%, Secured Debt (Maturity - November 21, 2024)1,600
1,599
1,616
Valeant Pharmaceuticals International, Inc.PharmaceuticalsLIBOR (1 month) + 3.50%, Current Coupon 4.94%, Secured Debt (Maturity - April 1, 2022)1,546
1,553
1,570
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 30, 2023)1,555
1,569
1,556
Vistra Operations Company LLCElectric UtilitiesLIBOR (2 months) + 2.75%, Current Coupon 4.08%, Secured Debt (Maturity - December 14, 2023)1,985
1,996
2,001
West CorporationDiversified Telecommunications ServicesLIBOR (1 month) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - October 10, 2024)1,032
1,022
1,036
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.56%, Secured Debt (Maturity - March 29, 2024)$1,925
$1,944
$1,841
Hyland Software, Inc.SoftwareLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 1, 2024)499
485
486
IG Investments Holdings, LLCProfessional ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - May 23, 2025)1,975
1,987
1,929
Infiltrator Water Technologies, LLCSpecialty RetailLIBOR (3 months) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - May 27, 2022)1,394
1,372
1,354
Invenergy, LLCRenewable Energy ProviderLIBOR (1 month) + 3.50%, Current Coupon 5.84%, Secured Debt (Maturity - August 28, 2025)1,946
1,941
1,932
IRB Holding Corp.Food ProductsLIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - February 5, 2025)397
397
380
Ivanti Software, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 6.60%, Secured Debt (Maturity - January 22, 2024)983
989
959
KBR, Inc.Aerospace and DefenseLIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - April 25, 2025)1,992
1,984
1,962
Kingpin Intermediate Holdings LLCDiversified Consumer ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 3, 2024)998
988
971
KUEHG Corp.Diversified Consumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.55%, Secured Debt (Maturity - February 21, 2025)2,457
2,465
2,368
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - December 1, 2023)1,970
1,989
1,923
MA FinanceCo., LLCSoftwareLIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)384
385
358
Mallinckrodt International Finance S.A.PharmaceuticalsLIBOR (6 months) + 3.00%, Current Coupon 5.62%, Secured Debt (Maturity - February 24, 2025)993
991
921
Match Group, Inc.MediaLIBOR (2 months) + 2.50%, Current Coupon 5.09%, Secured Debt (Maturity - November 16, 2022)2,000
1,998
1,990
McAfee, LLCSoftwareLIBOR (3 months) + 3.75%, Current Coupon 6.10%, Secured Debt (Maturity - September 30, 2024)948
933
925
McDermott International, Inc.Construction and EngineeringLIBOR (1 month) + 5.00%, Current Coupon 7.52%, Secured Debt (Maturity - May 12, 2025)993
973
929
Metro-Goldwyn-Mayer Inc.MediaLIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - July 3, 2025)998
970
964
Michaels Stores, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 4.97%, Secured Debt (Maturity - January 30, 2023)1,000
973
960
Micro Holding Corp. (MH Sub and Internet Brands)MediaLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 13, 2024)1,247
1,217
1,186
Mohegan Tribal Gaming AuthorityHotels, Restaurants and LeisureLIBOR (1 month) + 4.00%, Current Coupon 6.52%, Secured Debt (Maturity - October 13, 2023)1,914
1,933
1,719
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - June 7, 2023)2,664
2,702
2,532


HMS-ORIXLoan Portfolio
As of December 31, 2017
As of December 31, 2018As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair ValueIndustryType of InvestmentPrincipalCostFair Value
      
WideOpenWest Finance, LLCDiversified Telecommunications ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - August 18, 2023)$3,496
$3,506
$3,470
Total Loan Portfolio  $139,017
$139,012
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - July 1, 2024)$1,975
$1,965
$1,885
Ortho-Clinical Diagnostics, IncLife Sciences Tools and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.76%, Secured Debt (Maturity - June 30, 2025)1,945
1,940
1,809
Packaging Coordinators Midco IncHealth Care Facilities and ServicesLIBOR (3 months) + 4.00%, Current Coupon 6.81%, Secured Debt (Maturity - June 30, 2023)997
992
985
Party City Holdings Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - August 19, 2022)1,245
1,224
1,205
PI UK Holdco II LimitedDiversified Financial ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - January 3, 2025)2,978
2,956
2,893
Prime Security Services, LLC (Protection One)Commercial Services and SuppliesLIBOR (1 month) + 2.75%, Current Coupon 5.09%, Secured Debt (Maturity - May 2, 2022)654
638
628
Rackspace Hosting, Inc.Electric Equipment, Instruments and ComponentsLIBOR (3 months) + 3.00%, Current Coupon 5.58%, Secured Debt (Maturity - November 3, 2023)3,251
3,276
2,884
Radiate Holdco, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 1, 2024)2,544
2,519
2,408
Red Ventures, LLCProfessional ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 8, 2024)1,631
1,619
1,590
Savage Enterprises, LLCRoad and RailLIBOR (1 month) + 4.50%, Current Coupon 6.88%, Secured Debt (Maturity - August 1, 2025)1,097
1,076
1,085
Scientific Games International, Inc.Leisure ProductsLIBOR (2 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - August 14, 2024)892
893
840
Seattle SpinCo, Inc.SoftwareLIBOR (3 months) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)2,593
2,597
2,422
SeaWorld Parks & Entertainment, Inc.Hotels, Restaurants and LeisureLIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - April 1, 2024)1,965
1,967
1,881
ServiceMaster Global Holdings, Inc.Home and Office ProductsLIBOR (1 month) + 2.50%, Current Coupon 4.84%, Secured Debt (Maturity - November 8, 2023)2,000
1,993
1,964
Sprint CorporationDiversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - February 2, 2024)500
493
485
SRS Distribution Inc.Trading Companies and DistributorsLIBOR (3 months) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - May 23, 2025)1,197
1,194
1,120
SS&C European Holdings S.a.r.l.SoftwareLIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)206
205
195
SS&C Technologies, Inc.SoftwareLIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)543
541
514
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 6.54%, Secured Debt (Maturity - September 12, 2024)1,980
1,975
1,903
Starfruit US Holdco LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.60%, Secured Debt (Maturity - October 1, 2025)1,250
1,247
1,204
Telenet Financing USD LLCDiversified Telecommunication ServicesLIBOR (1 month) + 2.25%, Current Coupon 4.71%, Secured Debt (Maturity - August 17, 2026)1,655
1,653
1,580


HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Transdigm, Inc.Aerospace and DefenseLIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 9, 2023)$1,965
$1,972
$1,859
  LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 22, 2024)990
988
937
   2,955
2,960
2,796
Travelport Finance (Luxembourg) S.A.R.L.Internet Software and ServicesLIBOR (3 months) + 2.50%, Current Coupon 5.12%, Secured Debt (Maturity - March 17, 2025)1,237
1,231
1,219
Traverse Midstream Partners LLCOil, Gas and Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 6.60%, Secured Debt (Maturity - September 27, 2024)781
784
752
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - August 18, 2023)1,965
1,977
1,920
USS Ultimate Holdings, Inc. (United Site)Consumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.09%, Secured Debt (Maturity - August 26, 2024)598
590
590
Utz Quality Foods, LLCFood ProductsLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - November 21, 2024)1,584
1,583
1,539
VeriFone Systems, Inc.HardwareLIBOR (1 month) + 4.00%, Current Coupon 6.64%, Secured Debt (Maturity - August 20, 2025)500
490
485
Vertafore, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 6.05%, Secured Debt (Maturity - July 2, 2025)2,500
2,488
2,384
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 6.71%, Secured Debt (Maturity - November 30, 2023)1,555
1,570
1,420
Vistra Operations Company LLCElectric UtilitiesLIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - December 14, 2023)1,965
1,977
1,895
Web.Com Group, Inc.Internet Software and ServicesLIBOR (3 months) + 3.75%, Current Coupon 6.17%, Secured Debt (Maturity - October 10, 2025)1,000
1,000
965
West CorporationDiversified Telecommunication ServicesLIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 10, 2024)647
646
593
  LIBOR (3 months) + 4.00%, Current Coupon 6.53%, Secured Debt (Maturity - October 10, 2024)1,021
1,011
941
   1,668
1,657
1,534
WideOpenWest Finance, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - August 18, 2023)3,461
3,471
3,215
William Morris Endeavor Entertainment, LLCRecreation Facilities and ServicesLIBOR (3 months) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - May 16, 2025)638
608
608
Zekelman Industries, IncManufactured GoodsLIBOR (1 month) + 2.25%, Current Coupon 4.86%, Secured Debt (Maturity - June 14, 2021)1,000
985
970
Total Loan Portfolio  $165,025
$164,570
$157,923

For the three months ended March 31, 2019 and 2018, the Company accruedrecognized approximately $546,000 and $525,000, respectively, of dividend income in respect of its investment in HMS-ORIX.



The following tables show the summarized financial information for HMS-ORIX (dollars in thousands):
HMS-ORIX SLF LLC
Balance Sheet (Unaudited)
(dollars in thousands)
    
 As of March 31, 2018 As of December 31, 2017
Assets   
Portfolio investments at fair value (amortized cost: $140,265 and $139,017 as of March 31, 2018 and December 31, 2017, respectively)$140,200
 $139,012
Cash and cash equivalents4,943
 2,681
Interest receivable314
 306
Deferred financing costs, net793
 890
Other assets
 15
Total assets$146,250
 $142,904
Liabilities   
Credit facilities payable$91,300
 $86,500
Payable for securities purchased3,020
 5,268
Distributions payable875
 
Accounts payable and accrued expenses80
 64
Total liabilities95,275
 91,832
Net assets   
Members’ equity50,975
 51,072
Total net assets50,975
 51,072
Total liabilities and net assets$146,250
 $142,904



HMS-ORIX SLF LLC
Balance Sheet
(dollars in thousands)
    
 As of March 31, 2019 As of December 31, 2018
Assets   
Portfolio investments at fair value (amortized cost: $169,827 and $164,570 as of March 31, 2019 and December 31, 2018, respectively)$167,819
 $157,923
Cash and cash equivalents7,440
 3,873
Receivable for securities sold
 
Interest receivable297
 197
Deferred financing costs, net400
 497
Other assets4
 30
Total assets$175,960
 $162,520
Liabilities   
Credit facilities payable$123,130
 $98,818
Payable for securities purchased1,987
 18,442
Distributions payable911
 902
Accounts payable and accrued expenses996
 439
Total liabilities127,024
 118,601
Net assets   
Members’ equity48,936
 43,919
Total net assets48,936
 43,919
Total liabilities and net assets$175,960
 $162,520
HMS-ORIX SLF LLC
Statement of Operations (Unaudited)
Statement of OperationsStatement of Operations
(dollars in thousands)
Three Months Ended
Three Months Ended 
 March 31, 2018
March 31, 2019 March 31, 2018
Investment income    
Interest income$1,734
$2,548
 $1,734
Dividend income

 
Fee income

 
Other income

 
Total investment income1,734
2,548
 1,734
Expenses    
Interest expense850
1,247
 850
Other expenses

 
General and administrative expenses21
11
 21
Total expenses871
1,258
 871
Net investment income863
1,290
 863
Net realized (loss) from investments(26)
Net realized loss from investments(1) (26)
Net realized income837
1,289
 837
Net change in unrealized (depreciation) on investments(59)
Net change in unrealized appreciation (depreciation) on investments4,639
 (59)
Net increase in net assets resulting from operations$778
$5,928
 $778

Note 5 — Borrowings
 
A BDC has historically been able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that its asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the Small Business Credit Availability Act (the “SBCAA”) was enacted into law. The SBCAA, among other things, amended the 1940 Act to reduce the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements, obtains certain approvals and, in the case of unlisted BDCs, makes an offer to repurchase


shares held by its stockholders as of the date of the requisite approval. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. The Company has not requested or obtained any such approval.approval and, as a result, remains subject to the 200% asset coverage requirement.

On March 6, 2017, the Company entered into an amended and restated senior secured revolving credit agreement (the “EverBank“TIAA Credit Facility”) with TIAA, FSB (formerly known as EverBank Commercial Finance, Inc. prior to June 18, 2018) (“EverBank”TIAA Bank”), as administrative agent, and with EverbankTIAA Bank and other financial institutions as lender. The EverBankTIAA Credit Facility, as amended, features aggregate revolver commitments of $120.0 million.million and will mature March 6, 2020, with two one-year extension options, subject to lender approval. Borrowings under the EverBankTIAA Credit Facility bear interest, subject to the Company’s election, on a per annum basis equal to (i) the adjusted London Interbank Offered Rate (“LIBOR”)LIBOR rate plus 2.75% or (ii) the base rate plus 1.75%. The base rate is defined as the higher of (a) the prime rate, (b) the Federal Funds Rate (as defined in the credit agreement) plus 0.5% or (c) the adjusted LIBOR rate plus 1.0%. The adjusted LIBOR rate is defined in the credit agreement for the EverBankTIAA Credit Facility as the one-month LIBOR rate plus such amount as adjustedan adjustment for statutory reserve requirements for Eurocurrency liabilities.liabilities as described in the credit agreement. As of March 31, 2018,2019, the one-month LIBOR rate was 1.88%2.49%. Additionally, the Company pays an annual unused commitment fee of 0.300%0.30% on the unused revolver commitments if more than 50% of the revolver commitments are being used and an annual unused commitment fee of 0.625% on the unused revolver commitments if less than 50% of the revolver commitments are being used. As of March 31, 2018,2019, the Company was not aware of any instances of noncompliance with covenants related to the EverBankTIAA Credit Facility.

On May 18, 2015, HMS Funding entered into an amended and restated credit agreement (the “Deutsche Bank Credit Facility”) among HMS Funding, as borrower, the Company, as equityholder and as servicer, Deutsche Bank AG, New York Branch (“Deutsche Bank”), as administrative agent, the financial institutions party thereto as lenders (together with Deutsche Bank, the “HMS Funding Lenders”), and U.S. Bank National Association, as collateral agent and collateral custodian. TheAs of March 31, 2019, the Deutsche Bank Credit Facility, as amended, providesprovided a borrowing capacity of $450.0 million, with an accordion provision allowing increases in aggregate commitments, not to exceed $550.0 million.million, with lender consent. Under the Deutsche Bank Credit Facility, interest is calculated as the sum of the index plus the applicable margin of 2.35%. The index will be equal to one-month LIBOR, or, in the event that


LIBOR is not reasonably available, the higher of Deutsche Bank’s base commercial lending rate and the interest rate equal to 0.5% above the federal funds rate. As of March 31, 2018,2019, the one-month LIBOR rate was 1.88%2.49%. The Deutsche Bank Credit Facility provides for a revolving period until November 20, 2020, unless otherwise extended with the consent of the HMS Funding Lenders. The amortization period begins the day after the last day of the revolving period and ends on November 20, 2022, the maturity date. During the amortization period, the applicable margin will increase by 0.25%. During the revolving period, HMS Funding will pay a utilization fee equal to 2.50% of the undrawn amount of the required utilization, which is 75% of the loan commitment amount. HMS Funding will incur an undrawn fee equal to 0.40% per annum of the difference between the aggregate commitments and the outstanding advances under the facility, provided that the undrawn fee relating to any utilization shortfall will not be payable to the extent that the utilization fee relating to such utilization shortfall is incurred. Additionally, perunder the terms of a fee letter executed on November 20, 2017, HMS Funding pays Deutsche Bank an administrative agent fee of 0.25% per annum of the aggregate revolver commitments.Ascommitments. As of March 31, 2018,2019, the Company was not aware of any instances of noncompliance with covenants related to the Deutsche Bank Credit Facility.

As of March 31, 2018,2019, the Company had borrowings of $120.0 million outstanding on the EverBankTIAA Credit Facility and had borrowings of $338.0$380.0 million outstanding on the Deutsche Bank Credit Facility, both of which the Company estimated approximated fair value.

A summary of the Company’s significant contractual payment obligations for the repayment of outstanding borrowings at March 31, 20182019 is as follows:
 Payments Due By Period (dollars in thousands)
 Total Less than 1 year 1-3 years 3-5 years After 5 years
EverBank Credit Facility(1)
$120,000
 $
 $120,000
 $
 $
Deutsche Bank Credit Facility(2)
338,000
 
 
 338,000
 
Total Credit Facilities$458,000
 $
 $120,000
 $338,000
 $
 Payments Due By Period (dollars in thousands)
 Total Less than 1 year 1-3 years 3-5 years After 5 years
TIAA Credit Facility (1)
$120,000
 $120,000
 $
 $
 $
Deutsche Bank Credit Facility (2)
380,000
 
 
 380,000
 
Total Credit Facilities$500,000
 $120,000
 $
 $380,000
 $
(1)At March 31, 2018, $0.0 million was available2019, the Company had no availability under the EverBankTIAA Credit Facility.
(2)At March 31, 2018, $112.02019, $70.0 million remained available under the Deutsche Bank Credit Facility; however, the Company’s borrowing ability is limited to the asset coverage ratio restrictions imposed by the 1940 Act, as discussed above.



Note 6 – Financial Highlights
 
The following is a schedule of financial highlights of the Company for the three months ended March 31, 20182019 and 2017.2018.
Per Share Data:Three Months Ended 
 March 31, 2018
 Three Months Ended 
 March 31, 2017
Three Months Ended 
 March 31, 2019
 Three Months Ended 
 March 31, 2018
NAV at beginning of period$8.15
 $8.15
$7.96
 $8.15
Results from Operations      
Net investment income (1) (2)
0.19
 0.20
0.18
 0.15
Net realized appreciation (depreciation) (1) (2)
(0.13) 0.04
Net change in unrealized appreciation (depreciation) on investments (1) (2)
0.13
 (0.06)
Net realized loss on investments (1) (2)
(0.09) (0.09)
Net change in unrealized appreciation on investments (1) (2)
0.15
 0.13
Net increase in net assets resulting from operations0.19
 0.18
0.24
 0.19
Stockholder distributions (1) (3)
      
Distributions from net investment income (1) (2)
(0.17) (0.14)(0.17) (0.17)
Distributions from realized appreciation (1) (2)

 (0.03)
 
Net decrease in net assets resulting from stockholder distributions(0.17) (0.17)(0.17) (0.17)
Capital share transactions   
Issuance of common stock above NAV, net of offering costs (1)

 
Net increase in net assets resulting from capital share transactions
 
NAV at end of the period$8.17
 $8.16
$8.03
 $8.17
   
Shares outstanding at end of period79,201,065
 75,668,707
Weighted average shares outstanding79,846,665
 74,853,781
Shares of common stock outstanding at end of period78,547,196
 79,201,065
Weighted average shares of common stock outstanding78,819,746
 79,846,665
(1)Based on weighted average number of shares of common stock outstanding for the period.
(2)Changes in net investment income and realized and unrealized appreciation (depreciation) on investments can change significantly from period to period.
(3)The stockholder distributions represent the stockholder distributions declared for the period.



Three Months Ended 
 March 31, 2018
 Three Months Ended 
 March 31, 2017
Three Months Ended 
 March 31, 2019
 Three Months Ended 
 March 31, 2018
(dollars in thousands)(dollars in thousands)
NAV at end of period$647,066
 $617,309
Net assets at end of period$630,393
 $647,066
Average net assets$647,428
 $607,571
$627,880
 $647,428
Average Credit Facilities borrowings$444,000
 $399,500
$504,500
 $444,000
      
Ratios to average net assets:      
Ratio of total expenses to average net assets (1)
1.82% 1.68%2.43% 1.82%
Ratio of net investment income to average net assets (1)
2.29% 2.49%2.21% 1.88%
Portfolio turnover ratio15.07% 14.34%3.58% 15.07%
Total return (2)
2.33% 2.21%3.02% 2.33%
(1)
For the three months ended March 31, 20182019 and 2017,2018, the Advisers did not waive base management fees but waivedor subordinated incentive fees but waived reimbursement of approximately $15,000 and $1.5 million, respectively, and internal administrative services expenses of approximately $804,000$758,000 and $661,000,$804,000, respectively. The ratio is calculated by reducing the expenses to reflect the waiver of expenses and reimbursement of internal administrative services expenses in both periods presented. Excluding interest expense, the ratio of total expenses to average net assets for the three months ended March 31, 2019 and 2018 was 1.30% and March 31, 2017 was 1.03% and 1.02%, respectively. See Note 10 - Related Party Transactions and Arrangements for further discussion of fee waivers provided by the Advisers.
(2)Total return is calculated onas the change in NAV per share and stockholder distributions declared per share over the reporting period, divided by the NAV per share at the beginning of the period. The total return does not reflect the sales load from the sale of the Company’s common stock.

Note 7 – Stockholder Distributions

The following table reflects the cash distributions per share that the Company declared on its common stock during the three months ended March 31, 20182019 and 20172018 (dollars in thousands except per share amounts).
DistributionsDistributions
Per Share AmountPer Share Amount
2019   
Three months ended March 31, 2019$0.17
 $13,606
2018      
Three months ended March 31, 2018$0.17
 $13,803
$0.17
 $13,803
2017   
Three months ended March 31, 2017$0.17
 $12,922



On March 22, 2018,26, 2019, with the authorization of the Company’s board of directors, the Company declared distributions to its stockholders for the period of April 20182019 through June 2018.2019. These distributions have been, or will be, calculated based on stockholders of record each day from April 1, 20182019 through June 30, 20182019 in an amount equal to $0.00191781 per share, per day. Distributions are paid on the first business day following the completion of each month to which they relate.

The Company has adopted an “opt in” distribution reinvestment plan for its stockholders. As a result, if the Company makes a distribution, its stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of the Company’s common stock.

The following table reflects the sources of the cash distributions that the Company declared and, in some instances, paid on its common stock during the three months ended March 31, 20182019 and 2017.2018.
Three Months Ended 
 March 31, 2018
 Three Months Ended 
 March 31, 2017
Three Months Ended 
 March 31, 2019
 Three Months Ended 
 March 31, 2018
(dollars in thousands)(dollars in thousands)
Source of Distribution
Distribution
Amount
 Percentage 
Distribution
Amount
 Percentage
Distribution
Amount
 Percentage 
Distribution
Amount
 Percentage
Net realized income from operations (before waiver of incentive fees)$4,938
 35.8% $12,922
 100.0%$6,757
 49.7% $4,953
 35.9%
Waiver of incentive fees15
 0.1
 
 
Distributions in excess of net realized income from operations (1)
8,850
 64.1
 
 
6,849
 50.3
 8,850
 64.1
Total$13,803
 100.0% $12,922
 100.0%$13,606
 100.0% $13,803
 100.0%
(1)
Includes adjustments made to GAAP basisGAAP-basis net investment income to arrive at taxable income available for distributions. See Note 8 Taxable Incomefor the sources of the Company’s cash distributions on a tax basis.

The Company may fund its cash distributions from all sources of funds legally available, including stock offering proceeds, if any, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds


from the sale of assets, dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies, and fee and expense waivers from its Advisers. The Company has not established limits on the amount of funds that the Company may use from legally available sources to make distributions. The Company expects that for the foreseeable future, a portion of the distributions may be paid from sources other than net realized income from operations, which may include stock offering proceeds, if any, borrowings, and fee and expense waivers from the Advisers. See Note 10 - Related Party Transactions and Arrangements - Advisory Agreements and Conditional Fee Waiver and Expense Reimbursement Waivers.

The Company’s distributions may exceed its earnings and, as a result, a portion of the distributions it makes may represent a return of capital for U.S. federal income tax purposes. The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole discretion of the Company’s board of directors. 

Note 8 – Taxable Income

The Company has elected to be treated for U.S. federal income tax purposes as a RIC. As a RIC, the Company generally will not incur corporate-level U.S. federal income taxes on net ordinary income or capital gains that the Company timely distributes each taxable year as dividends to its stockholders. To qualify as a RIC in any taxable year, the Company must, among other things, satisfy certain source-of-income and asset diversification requirements. In addition, the Company must distribute an amount in each taxable year generally at least equal to 90% of its investment company taxable income, determined without regard to any deduction for dividends paid, in order to maintain its ability to be subject to taxation as a RIC. As a part of maintaining its RIC status, undistributed taxable income (subject to a 4% nondeductible, U.S. federal excise tax) pertaining to a given taxable year may be distributed up to 12 months subsequent to the end of that taxable year, provided such distributions are declared prior to the earlierlater of eight-and-one-half months after the close of thatthe taxable year in which such taxable income was generated or the extended due date for the timely filing of the U.S. federal income tax return forrelated to the tax year in which such prior taxable year. In orderincome was generated and paid to avoid the impositionshareholders in the 12-month period following the close of such taxable year and not later than the date of the 4% nondeductible, U.S. federal excise tax,first dividend payment of the Company needs to distribute, in respectsame type of each calendar year, dividends of an amount at least equal to the sum of: (1) 98.0% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of its capital gain in excess of capital loss, or capital gain net income, (adjusted for certain ordinary losses) for the one-year period generally ending on October 31 of that calendar year (or, if the Company so elects for that calendar year) and (3) any net ordinary income and capital gain net income for preceding years that was not distributed with respect todividend made after such years and on which the Company incurred no U.S. federal income tax. For the taxable year ended December 31, 2016, the Company distributed $7.1 million, or $0.096753 per share, of its taxable income in 2017, prior to the filing of its U.S. federal income tax return for the 2016 taxable year. As a result, the Company was subject to a 4% nondeductible, U.S federal excise tax liability for the 2016 taxable year of approximately $239,000.declaration. For the taxable year ended December 31, 2017, the Company distributed $14.9 million, or $0.187394 per share, of its taxable income in 2018, prior to the filing of its U.S. federal income tax return for theits 2017 taxable year. As a result, the Company was subject to a 4% nondeductible, U.S. federal excise tax liability of approximately $392,000.$542,000. For the taxable year ended December 31, 2018, the Company distributed $20.5 million, or $0.260865 per share, of its taxable income in 2019, prior to filing of its U.S. federal income tax return for its 2018 taxable year. As a result, the Company was subject to a 4% nondeductible, U.S. federal excise tax liability of approximately $766,000.

The Company accounts for income taxes in conformity with ASC Topic 740 - Income Taxes, which provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions


are “more-likely-than-not” to be sustained by the applicable tax authority. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the Company’s financial statements is the largest benefit or expense that has a greater than 50% likelihood of being realized upon its ultimate settlement with the relevant tax authority. Positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits, if any, in income tax expense. Conclusions regarding tax positions are subject to review and may be adjusted at a later date based on factors including, but not limited to, on-going analyses of tax laws, regulations and interpretations thereof. Management has analyzed the Company’s tax positions, and has concluded that there were no material uncertain income tax positions through March 31, 2018.2019. The Company identifies its major tax jurisdiction as the United States, and the Company is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months. Tax returns for the 20142015 through 2017 taxable years remain subject to examination by U.S. federal and most state tax authorities.

TheTwo of the Company’s wholly owned subsidiaries, HMS Equity Holding and HMS Equity Holding II, have elected to be taxable entities for U.S. tax purposes. HMS Equity Holding and HMS Equity Holding II primarily hold equity investments in portfolio companies which are treated as “pass through” entities for U.S. tax purposes. HMS Equity Holding and HMS Equity Holding II are consolidated for financial reporting purposes, and the portfolio investments held by each entity are included in the condensed consolidated financial statements as portfolio investments recorded at fair value. HMS Equity Holding and HMS Equity Holding II are not consolidated with the Company for U.S. federal income tax purposes and may generate income tax expense, or benefit, and the related tax assets and liabilities, as a result of its ownership of certain portfolio investments. This income tax expense, or benefit, if any, and the related tax assets and liabilities, are reflected in the Company’s condensed consolidated financial statements.



Listed below is a reconciliation of “Net increase (decrease) in net assets resulting from operations” to taxable income and to total distributions declared to common stockholders for the three months ended March 31, 20182019 and 20172018 (dollars in thousands).
Three Months Ended March 31, 2018 Three Months Ended March 31, 2017Three Months Ended March 31, 2019 Three Months Ended March 31, 2018
      
Net increase (decrease) in net assets resulting from operations$15,557
 $13,266
Net increase in net assets resulting from operations$18,820
 $15,557
Net change in unrealized (appreciation) depreciation(10,604) 4,516
(12,063) (10,604)
Income tax (benefit) provision102
 48
Pre-tax book (income) loss not consolidated for tax purposes8,236
 184
Income tax provision58
 102
Pre-tax book loss not consolidated for tax purposes5,255
 8,236
Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates39
 392
224
 39
Estimated taxable income (1)
13,330
 18,406
12,294
 13,330
      
Taxable income earned in prior year and carried forward for distribution in current year15,005
 7,238
20,574
 15,005
      
Taxable income earned prior to period end and carried forward for distribution next period(19,289) (17,222)(23,935) (19,289)
Dividend accrued as of period end and paid-in the following period4,757
 4,500
4,673
 4,757
Taxable income earned to be carried forward(14,532) (12,722)$(19,262) $(14,532)
      
Total distributions accrued or paid to common stockholders$13,803
 $12,922
$13,606
 $13,803
(1)The Company’s taxable income for each period is an estimate and will not be finally determined until the Company files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.

The income tax expense, or benefit, and the related tax assets and liabilities generated by HMS Equity Holding and HMS Equity Holding II, if any, are reflected in the Company’s Condensed Consolidated Statement of Operations.Financial Statements. For the three months ended March 31, 20182019 and 2017,2018, the Company recognized a net income tax (benefit) provision of $102,000$58,000 and $48,000,$102,000, respectively, related to deferred taxes (benefit) of $1.1 million and $4.3 million, and $261,000, respectively, and other taxes (benefit) of $102,000$58,000 and $48,000,$102,000, respectively, offset by a valuation allowance of $(4.3)$(1.1) million and $(261,000),$(4.3) million, respectively. For the three months ended March 31, 20182019 and 2017,2018, the other taxes (benefit) included $102,000$58,000 and $48,000,$102,000, respectively, related to accruals for state and other taxes.

As of March 31, 2019, the cost basis of the Company’s portfolio investments for tax purposes was $1.1 billion, with such investments having an estimated net unrealized depreciation of $3.3 million, composed of gross unrealized appreciation of $42.1 million and gross unrealized depreciation of $45.4 million. As of December 31, 2018, the cost basis of investments for tax purposes was $1.1 billion, with such investments having an estimated net unrealized depreciation of $4.4$151 million, composed of gross unrealized appreciation of $27.4$37.5 million and gross unrealized depreciation of $31.8 million. As of December 31, 2017, the cost basis of investments for tax purposes was $1.0 billion, with such investments having an estimated net unrealized depreciation of $14.9 million, composed of gross unrealized appreciation of $25.2 million and gross unrealized depreciation of $40.1$52.6 million.

The net deferred tax assetassets at both March 31, 20182019 and December 31, 20172018 was $0, primarily related to loss carryforwards, timing differences in net unrealized depreciation of portfolio investments, and basis differences of portfolio investments held by HMS


Equity Holding and HMS Equity Holding II which are “pass through” entities for tax purposes, offset by a valuation allowance. Based on HMS Equity Holding’s and HMS Equity Holding II’s short operating history, management believes it is more likely than not that there will be inadequate profits in HMS Equity Holding and HMS Equity Holding II against which the deferred tax assets can be offset. Accordingly, the Company recorded a full valuation allowance against such deferred tax assets.



The following table sets forth the significant components of net deferred tax assets and liabilities as of March 31, 20182019 and December 31, 20172018 (amounts in thousands):
 March 31, 2018 December 31, 2017 March 31, 2019 December 31, 2018
Deferred tax assets:        
Net operating loss carryforwards $1,576
 $1,901
 $1,632
 $1,861
Foreign tax credit carryforwards 10
 10
 10
 10
Capital loss carryforwards 5,959
 5,390
 12,502
 10,696
Net basis differences in portfolio investments 1,188
 
 
 
Net unrealized depreciation of portfolio investments 1,708
 
 
 
Total deferred tax assets 10,441
 7,301
 14,144
 12,567
Deferred tax liabilities:        
Net basis differences in portfolio investments 
 (703) (1,813) (1,540)
Net unrealized appreciation of portfolio investments (11) (426) (3,936) (3,693)
Other 
 
 
 
Total deferred tax liabilities (11) (1,129) (5,749) (5,233)
Valuation allowance (10,430) (6,172) (8,395) (7,334)
Total net deferred tax assets (liabilities) $
 $
 $
 $

On December 22, 2017, the Tax Cuts and Jobs Act (the “TCJA”) was signed into law. The TCJA significantly changed the U.S. federal income tax laws applicable to businesses and their owners. Technical corrections or other amendments to the TCJA or administrative guidance interpreting the TCJA may be forthcoming at any time.Under the TCJA, the corporate income tax rate iswas reduced to 21%, and the corporate alternative minimum tax was repealed. The reduced corporate income tax rate, which iswas effective for taxable years beginning after December 31, 2017, applesapplied to income earned by HMS Equity Holding and HMS Equity Holding II.

For federal income tax purposes, the net operating loss carryforwards generated prior to December 31, 2017 expire in various taxable years from 2034 through 2037. Under the TCJA, any net operating losses generated in 2018 and future periods will have an indefinite carryforward. The net capital loss carryforwards of the Company expire in taxable years 2020 and 2023. The timing and manner in which HMS Equity Holding and HMS Equity Holding II will utilize any net loss carryforwards in such taxable years, or in total, may be limited in the future under the provisions of the Code.

For the years ending December 31, 2018, 2017 2016 and 2015,2016, respectively, the tax characteristics of distributions paid to shareholders were as follows (amounts in thousands):
Year Ended December 31,Year Ended December 31,
Tax Characteristics of Distributions2017 2016 20152018 2017 2016
                
Ordinary income$52,473
96.43% $44,848
93.90% $34,085
99.68%$50,274
90.56% $52,473
96.43% $44,848
93.90%
Capital gain distributions1,941
3.57
 2,913
6.10
 110
0.32
5,238
9.44
 1,941
3.57
 2,913
6.10
Total distributions$54,414
100.00% $47,761
100.00% $34,195
100.00%$55,512
100.00% $54,414
100.00% $47,761
100.00%

The determination of the tax attributes of the Company’s distributions is made annually at the end of the Company’s taxable year based upon the Company’s taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. If the Company had determined the tax attributes of its distributions taxable year-to-date as of March 31, 2018,2019, 100% would be from its current and accumulated earnings and profits. However, there can be no certainty to stockholders that this determination is representative of what the actual tax attributes of the Company’s anticipated fiscal and taxable years ending December 31, 20182019 distributions to stockholders will be. The actual tax characteristics of distributions to stockholders will be reported to the Internal Revenue Service and stockholders subject to information reporting shortly after the close of each calendar year on Form 1099-DIV.



Dividends from net investment income and distributions from net realized capital gains are determined in accordance with U.S. federal tax regulations, which may differ from amounts determined in accordance with GAAP and those differences could be material. These book-to-tax differences are either temporary or permanent in nature. Reclassifications due to permanent book-to-tax differences, such as the non-deductible excise tax, have no impact on net assets.



Note 9 – Supplemental Cash Flow Disclosures
 
Listed below are the supplemental cash flow disclosures for the three months ended March 31, 20182019 and 20172018 (dollars in thousands):
Supplemental Disclosure of Cash Flow Information Three Months Ended March 31, 2018 Three Months Ended March 31, 2017 Three Months Ended March 31, 2019 Three Months Ended March 31, 2018
Cash paid for interest $4,779
 $3,670
 $6,675
 $4,779
Cash paid for income taxes 463
 268
 924
 463
        
Supplemental Disclosure of Non-Cash Flow Information  
  
  
  
Stockholder distributions declared and unpaid 4,757
 4,500
 4,673
 4,757
Stockholder distributions reinvested 6,929
 6,618
 6,366
 6,929
Change in unpaid deferred offering costs 
 (12)
Unpaid deferred financing costs 
 387
 7
 
Unpaid sales commissions and dealer manager fee 
 150


Note 10 — Related Party Transactions and Arrangements
 
Advisory Agreements and Conditional Fee and Expense Reimbursement Waivers
 
The Company and the Adviser may enter into an agreement pursuant to which the Adviser could pay the Company up to 100% of its operating expenses an “Expense Support Payment”) in order to achieve a reasonable level of expenses relative to its investment income.

The Company and the Advisers entered into a conditional fee waiver agreement (as amended from time to time, the “Conditional Fee Waiver Agreement”), pursuant to which the Advisers could waive certain fees through December 31, 2015 upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waivers to be deemed necessary.

The Company and the Advisers entered into conditional income incentive fee waiver agreements (the “2016-2018 Conditional Income Incentive Fee Waiver Agreements”), most recently on MayMarch 4, 2018,2019, pursuant to which, for a period from January 1, 2016 through MarchDecember 31, 2018, the Advisers couldwould waive payments in respect of the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The 2016-2018 Conditional Income Incentive Fee Waiver Agreements may require the Company to repay the Advisers for previously waived reimbursement of Expense Support Payments or waived base management fees or incentive fees previously waived by the Advisers under certain circumstances and to the extent eligible for repayment.

Previously waived fees and Expense Support Payments are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective fee waiver or Expense Support Payment.waiver. Thus, in any quarter where a surplus exists thatand the conditions described below are satisfied, the surplus will be available, subject to approval of the Company’s board of directors, to reimburse waived fees and Expense Support Payments as follows:

1.First, to reimburse Expense Support Payments, beginning with the earliest year eligible for reimbursement; and
2.Second, to reimburse all waived fees, beginning with the earliest year eligible for reimbursement.

fees. Reimbursement of previously waived fees will only be permitted with the approval of the board of directors and if the operating expense ratio is equal to or less than the operating expense ratio at the time the corresponding fees were waived or Expense Support Payments were made and if the annualized rate of regular cash distributions to stockholders is equal to or greater than the annualized rate of the regular cash distributions at the time the corresponding fees were waived.

For each of the three months ended March 31, 20182019 and 2017,2018, the Company incurred base management fees of approximately $5.7 million and $5.2subordinated incentive fees on income of $1.4 million respectively, and the Advisers waived no base management fees in either period.$0, respectively. For each of the three months ended March 31, 20182019 and 2017,2018, the Company incurred nodid not incur any capital gains incentive fees in either period, and incurred subordinated incentive fees on income of approximately $15,000 and $1.5 million, respectively, which were fully waived by the Advisers.fees.

For the three months ended March 31, 20182019 and 2017,2018, the Company did not record an accrual for any previously waived fees. Any future reimbursement of previously waived fees to the Advisers will not be accrued until the reimbursement of the waived fees becomes probable and estimable, which will be upon approval of the Company’s board of directors. To date, none of the previously waived fees has been approved by the Company’s board of directors for reimbursement.



The table below presents the fees waived by the Advisers and the timing of potential reimbursement of waived fees (dollars in thousands). Previously waived fees will only be reimbursed with the approval of the Company’s board of directors and if the “Operating Expense Ratio” (as described in footnote 3 to the table below) is equal to or less than the Company’s operating expense ratio at the time the corresponding fees were waived and if the annualized rate of the Company’s regular cash distributions to stockholders is equal to or greater than the annualized rate of the Company’s regular cash distributions at the time the corresponding fees were waived.


Management Fee (1)
 
Subordinated Incentive Fee (1)
 
Capital Gain Incentive Fee (1)
 
Expense Support (1)
 
Management Fee (1)
 
Subordinated Incentive Fee (1)
 
Quarter EndedWaivers
Repaid to Adviser (2)
 Waivers
Repaid to Adviser (2)
 Waivers
Repaid to Adviser (2)
 Payments
Repaid to Adviser (2)
 
Operating Expense Ratio (3)
Annualized Distribution Rate (4)
Eligible to be Repaid Through (5)
Waivers
Repaid to Adviser (2)
 Waivers
Repaid to Adviser (2)
 
Operating
Expense
Ratio (3)
Annualized Distribution Rate (4)
Eligible to be Repaid Through (5)
6/30/2015$
$
 $930
$
 $
$
 $
$
 1.69%$0.706/30/2018
9/30/2015$
$
 $155
$
 $
$
 $
$
 2.11%$0.709/30/2018
12/31/2015$
$
 $1,159
$
 $
$
 $
$
 2.27%$0.7012/31/2018
3/31/2016$
$
 $493
$
 $
$
 $
$
 1.83%$0.703/31/2019
6/30/2016$
$
 $
$
 $
$
 $
$
 1.76%$0.706/30/2019$
$
 $
$
 1.76%$0.706/30/2019
9/30/2016$
$
 $
$
 $
$
 $
$
 1.73%$0.709/30/2019$
$
 $
$
 1.73%$0.709/30/2019
12/31/2016$
$
 $1,196
$
 $
$
 $
$
 1.68%$0.7012/31/2019$
$
 $26
$
 1.68%$0.7012/31/2019
3/31/2017$
$
 $1,495
$
 $
$
 $
$
 1.68%$0.703/31/2020$
$
 $1,396
$
 1.68%$0.703/31/2020
6/30/2017$
$
 $823
$
 $
$
 $
$
 1.67%$0.706/30/2020$
$
 $246
$
 1.67%$0.706/30/2020
9/30/2017$
$
 $
$
 $
$
 $
$
 1.91%$0.709/30/2020$
$
 $
$
 1.91%$0.709/30/2020
12/31/2017$
$
 $711
$
 $
$
 $
$
 1.82%$0.7012/31/2020$
$
 $
$
 1.82%$0.7012/31/2020
3/31/2018$
$
 $15
$
 $
$
 $
$
 1.80%$0.703/31/2021$
$
 $
$
 1.80%$0.703/31/2021
6/30/2018$
$
 $
$
 1.96%$0.706/30/2021
9/30/2018$
$
 $2,535
$
 2.01%$0.709/30/2021
12/31/2018$
$
 $798
$
 2.32%$0.7012/31/2021
(1)Fees waived pursuant to the Conditional Fee Waiver Agreement and the 2016-2018 Conditional Income Incentive Fee Waiver Agreements.
(2)Subject to the approval of the Company’s board of directors, in future periods previously waived fees may be paid to the Advisers, if the Company’s cumulative net increase in net assets resulting from operations exceeds the amount of cumulative distributions paid to stockholders. The previously waived fees are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective fee waiver. To date, none of the previously waived fees and Expense Support Payments have been approved for reimbursement by the Company’s board of directors.
(3)The “Operating Expense Ratio” is calculated on a quarterly basis as a percentage of average net assets and includes all expenses borne by the Company, except for base management and incentive fees and administrative expenses waived by the Advisers and organizational and offering expenses.
(4)“Annualized Distribution Rate” equals $0.00191781 per share, per day asbased on the distributions declared by the Company’s board of directors.
(5)Prior to June 30, 2015,March 31, 2016, the Advisers waived total management fees of $2.8 million, total subordinated incentive fees of $932,000$2.5 million and total capital gain incentive fees of $8,000. Due to the passage of time, such waived fees are not eligible for repayment under the applicable fee waiver agreements.

Pursuant to the Investment Advisory Agreement and Sub-Advisory Agreement, the Company is required to pay or reimburse the Advisers for administrative services expenses, which include all costs and expenses related to the Company’s day-to-day administration and management not related to advisory services, whether such administrative services were performed by a third party service provider or affiliates of the Advisers (“Internal Administrative Services”). The Advisers do not earn any profit under their provision of administrative services to the Company. For the three months ended March 31, 20182019 and 2017,2018, the Company incurred, and the Advisers waived the reimbursementreimbursements of, Internal Administrative Services expenses of approximately $804,000$758,000 and $661,000,$804,000, respectively. The Company and the Advisers entered into an expense support and conditional reimbursement agreement, as amended from time to time, which extends the period for waiver of reimbursement of Internal Administrative Services expenses accrued pursuant to the Investment Advisory Agreement and the Sub-Advisory Agreement through June 30, 2018.2019. Since inception, the Advisers waived the reimbursement of total Internal Administrative Services expenses of $11.1$13.8 million. Waived Internal Administrative Services expenses are not subject to future reimbursement.




The table below outlines fees incurred and expense reimbursements payable to Hines, Main Streetthe Adviser, the Sub-Adviser and their respective affiliates for the three months ended March 31, 20182019 and 20172018 and amounts unpaid as of March 31, 20182019 and December 31, 20172018 (dollars in thousands).
Incurred Unpaid as ofIncurred Unpaid as of
Three Months Ended March 31, March 31, 2018 December 31, 2017Three Months Ended March 31, March 31, 2019 December 31, 2018
Type and Recipient20182017 2019 2018 
Incentive Fees on Income (1) - the Adviser, Sub-Adviser
$15
$
 $
 $
Offering Costs - the Adviser, Sub-Adviser103
387
 
 
$95
 $103
 $
 $
Other (2) - the Adviser
176
202
 51
 59
204
 176
 105
 57
Selling Commissions - Dealer Manager
1,060
 
 

 
 
 
Dealer Manager Fee - Dealer Manager
558
 
 

 
 
 
Due to Affiliates  
 $51
 $59
   
 $105
 $57
            
Base Management Fees (1) - the Adviser, Sub-Adviser
$5,694
$5,150
 $5,694
 $5,682
Base Management Fees - the Adviser, Sub-Adviser
5,726
 5,694
 $5,726
 $5,854
Incentive Fees on Income - the Adviser, Sub-Adviser (1)
1,399
 
 1,399
 
Base Management and Incentive Fees Payable

   $7,125
 $5,854
(1)Net of amounts waived by the Advisers.
(2)Includes amounts the Adviser paid on behalf of the Company such as general and administrative services expenses.



Offering Costs

In accordance with the Investment Advisory Agreement and the Sub-Advisory Agreement, the Company reimburses the Advisers for any offering costs that are paid on the Company’s behalf, which consist of, among other costs, actual legal, accounting, bona fide out-of-pocket itemized and detailed due diligence costs, printing, filing fees, transfer agent costs, postage, escrow fees, advertising and sales literature and other costs incurred in connection with an offering of the Company including the Company’s distribution reinvestment plan. Pursuant to the terms of the Investment Advisory Agreement and the Sub-Advisory Agreement, the Company expects to reimburse the Advisers for such costs incurred on the Company’s behalf on a monthly basis, up to a maximum aggregate amount of 1.5% of the gross stock offering proceeds. The Advisers are responsible for the payment of offering costs to the extent they exceed 1.5% of the aggregate gross stock offering proceeds.

As of March 31, 2018,2019, the Company has reimbursed the Advisers approximately $11.9$12.3 million since inception for offering costs. As of March 31, 2018,2019, the Advisers carried a balance of approximately $1.3 million$993,000 for offering costs incurred on the Company’s behalf, net of reimbursement payments from the Company.

Note 11 – Share Repurchase Plan
 
Since inception of the share repurchase program in 2015, the Company has funded the repurchase of $46.4$77.8 million in shares.shares of common stock. For the three months ended March 31, 20182019 and 2017,2018, the Company funded $9.4$6.6 million and $5.1$9.4 million, respectively, for shares of common stock tendered for repurchase under the plan approved by the board of directors. Since inception of the share repurchase program, the Company has funded all redemption requests validly tendered and not withdrawn.
For the Quarter Ended Repurchase Date Shares Repurchased Percentage of Shares Tendered that were Repurchased 
Repurchase Price
per Share
 Aggregate Consideration for Repurchased Shares Repurchase Date Shares Repurchased Percentage of Shares Tendered that were Repurchased 
Repurchase Price
per Share
 Aggregate Consideration for Repurchased Shares
March 31, 2018 March 22, 2018 1,147,067.15 100% $8.20
 $9,405,951
March 31, 2019 February 28, 2019 820,174.35 56.1% $7.99
 $6,553,193

Note 12 – Commitments and Contingencies

AtAs of March 31, 2018,2019, the Company had a total of approximately $50.5$45.1 million in outstanding commitments comprising (i) 33 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized depreciationappreciation of approximately $18,000$265,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the three months ended March 31, 2018. At2019. As of December 31, 2017,2018, the Company had a total of approximately $45.4$62.5 million in outstanding commitments comprising (i) 2836 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. The Company recognized unrealized appreciationdepreciation of $14,000$132,000 on the outstanding unfunded loan commitments and no unrealized appreciation or depreciation on the outstanding unfunded capital commitments during the year ended December 31, 2017.2018.
 Commitments and Contingencies
 (dollars in thousands)
 March 31, 2019 December 31, 2018
Unfunded Loan Commitments
  
Adams Publishing Group, LLC$985
 $1,735
American Nuts, LLC281
 1,266
Apex Linen Services, Inc.403
 403
Arcus Hunting, LLC1,374
 904
ASC Ortho Management Company, LLC750
 750
BarFly Ventures, LLC
 123
BBB Tank Services100

200
BigName Holdings, LLC29

29
Boccella Precast Products, LLC500
 500
Centre Technologies Holdings, LLC600
 
Chamberlin HoldCo, LLC400

400
Charps, LLC1,000
 1,000
Clad-Rex Steel, LLC

100
CTVSH, PLLC200

200
Direct Marketing Solutions, Inc.400

400
DTE Enterprises, LLC750
 750
Dynamic Communities, LLC250
 250
Gamber-Johnson Holdings, LLC300
 300


 Commitments and Contingencies
 (dollars in thousands)
 March 31, 2018 December 31, 2017
Unfunded Loan Commitments
  
Apex Linen Services, Inc.$403
 $403
Arcus Hunting, LLC1,566
 976
BarFly Ventures, LLC613
 613
BBB Tank Services20


BigName Holdings, LLC101

101
Boccella Precast Products, LLC285
 500
CDHA Management, LLC2,061
 2,343
Chamberlin HoldCo, LLC400


Charps, LLC1,000
 1,000
Clad-Rex Steel, LLC100

100
CTVSH, PLLC200

200
Datacom, LLC5
 25
Direct Marketing Solutions, Inc.400


Felix Investments Holdings II LLC1,667

1,667
Gamber-Johnson Holdings, LLC300
 300
GST Autoleather Inc.
 1,281
Guerdon Modular Holdings, Inc.300
 400
Hawk Ridge Systems, LLC400
 400
Hojeij Branded Foods, Inc.1,923
 1,923
Hostway Corporation7

7
Hunter Defense Technologies, Inc.2,832


HW Temps LLC200
 200
LaMi Products, LLC294
 294
Market Force Information, Inc.400

400
Meisler Operating, LLC400

400
Mystic Logistics Holdings, LLC200
 200
NexRev, LLC1,000


NNE Partners, LLC2,056

5,542
NuStep, LLC300

300
Permian Holdco 2, Inc.
 97
PPC/Shift, LLC500
 500
Radiology Partners, Inc.5,254


Resolute Industrial LLC5,750

5,750
Wireless Vision Holdings, LLC2,084

2,084
Unfunded Capital Commitments   
Brightwood Capital Fund III, LP1,000
 1,000
Brightwood Capital Fund IV, LP9,000
 9,000
Copper Trail Energy Fund I LP2,500
 2,500
Freeport Financial Funds4,941
 4,941
Total$50,462
 $45,447
 Commitments and Contingencies
 (dollars in thousands)
 March 31, 2019 December 31, 2018
Unfunded Loan Commitments
  
GRT Rubber Technologies, LLC$3,259
 $4,125
Guerdon Modular Holdings, Inc.400
 400
Hawk Ridge Systems, LLC
 400
HDC/HW Intermediate Holdings, Inc.180

180
Hoover Group, Inc.1,450
 2,375
HW Temps LLC200
 200
Implus Footcare, LLC
 44
Independent Pet Partners Intermediate Holdings, LLC12,888

22,244
Jacent Strategic Merchandising, LLC441


KMC Acquisition, LLC500

500
Laredo Energy VI, LP1,750


Market Force Information, Inc.260

350
Meisler Operating, LLC400

400
Mystic Logistics Holdings, LLC200
 200
New Era Technology, Inc.479
 479
NexRev, LLC1,000

1,000
NuStep, LLC300

300
SI East , LLC2,500
 2,500
Tedder Acquisition, LLC180

180
Volusion LLC
 1,961
Wireless Vision Holdings, LLC

693
Unfunded Capital Commitments   
Brightwood Capital Fund III, LP1,000
 1,000
Brightwood Capital Fund IV, LP5,000
 8,000
Copper Trail Energy Fund I LP1,694
 1,754
Freeport Financial Funds2,744
 3,942
Total$45,147
 $62,537

Note 13 – Subsequent Events
 
On May 4, 2018, the Company, the Adviser and the Sub-Adviser entered into a conditional income incentive fee agreement (the “First Quarter 2018 Fee Waiver Agreement”), pursuant to which, for a period from January 1, 2018 through March 31, 2018, the Advisers could waive the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in the Advisers’ sole discretion, causes such waiver to be deemed necessary. The First Quarter 2018 Fee Waiver Agreement may require the Company to repay the Advisers for previously waived Expense Support Payments or waived base management fees or incentive fees under certain circumstances. The previously waived fees are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of each respective fee waiver.

On April 13, 2018,12, 2019, the Company filed a tender offer statement on Schedule TO with the SEC to commence an offer by the Company to purchase, as approved by its board of directors, 1,973,729.33an estimated 796,617.07 shares of the Company’s issued and outstanding common stock


par value $0.001 per share. up to approximately $6.4 million. The offer is for cash at a purchase price equal to the NAV per share to be determined within 48 hours of the repurchase date.

On May 8, 2019, HMS-ORIX Holdings I LLC, a wholly owned subsidiary of HMS-ORIX, which holds all of the investments in broadly-syndicated loans held by HMS-ORIX, was merged (the “HMS-ORIX Holdings Merger”) into Mariner CLO 7, Ltd., an exempted company incorporated under the laws of the Cayman Islands (“Mariner CLO”). In connection with the HMS-ORIX Holdings Merger, HMS-ORIX made certain distributions to its members. The Company used the cash proceeds it received from the HMS-ORIX Holdings Merger to purchase an aggregate principal amount of approximately $25.9 million of the “Subordinated Notes” due in 2032 issued by Mariner CLO in connection with an offering of $405.9 million aggregate principal amount of notes (the “CLO Offering”). The CLO Offering’s Subordinated Notes are unsecured obligations of Mariner CLO, junior to the secured notes, and distributions to the holders of the Subordinated Notes will be made solely from distributions on the collateral held by Mariner CLO after all other payments required to be made to the holders of the secured notes have been made. The collateral for the notes issued by the Mariner CLO consists primarily of senior secured floating rate leveraged loans made to corporate and other business entities.








Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
The following discussion is based on the condensed consolidated financial statements as of March 31, 20182019 (unaudited) and December 31, 20172018 and for the three months ended March 31, 20182019 and 2017.2018. Amounts as of December 31, 20172018 included in the unaudited condensed consolidated financial statements have been derived from the Company’s audited consolidated financial statements as of that date. This information should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the notes thereto, as well as the audited consolidated financial statements, notes and management’s discussion and analysis of financial condition and results of operations included in our Annual Report on Form 10-K (as amended) for the year ended December 31, 2017.2018. Capitalized terms used in this Item 2 have the same meaning as in the accompanying condensed consolidated financial statements in Item 1 unless otherwise defined in this Report.

We refer to HMS Income Fund, Inc. as the “Company,” and the use of “we,” “our,” “us” or similar pronouns in this Report refers to HMS Income Fund, Inc.

Forward-Looking Statements
 
Some of the statements in this Report constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this Report may include statements as to:
 
our future operating results;
our business prospects and the prospects of our current and prospective portfolio companies;
the impact of the investments that we expect to make;
the ability of our portfolio companies to achieve their objectives;
our expected financings and investments;
the adequacy of our cash resources and working capital;
the timing of cash flows, if any, from the operations of our portfolio companies;
changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, which could result in changes to the value of our assets;
the impact of increased competition;
our contractual arrangements and relationships with third parties;
the dependence of our future success on the general economy, including general economic trends, and its impact on the industries in which we invest;
the relative and absolute performance of our investment adviser, HMS Adviser LP (the “Adviser”), a Texas limited partnership, including in identifying suitable investments for us;
our ability to make distributions to our stockholders;
the effects of applicable legislation and regulations and changes thereto; and
the impact of future acquisitions and divestitures.

In addition, words such as “anticipate,” “believe,” “expect” and “intend” indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this Report involve risks and uncertainties.

Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Part II-Item 1A. Risk Factors” and elsewhere in this Report and set forth in our annual report on Form 10-K (as amended) for the year ended December 31, 2017.2018. Other factors that could cause actual results to differ materially include:
 
changes in the economy;
risks associated with possible disruption in our operations or the economy generally; and
future changes in laws or regulations and conditions in our operating areas.

We have based the forward-looking statements included in this Report on information available to us on the date of this Report. Except as required by the federal securities laws, we assume no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the Securities and Exchange Commission (the “SEC”), including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The forward-looking statements and projections contained in this Report are excluded from the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).



OVERVIEW

We are a specialty finance company sponsored by Hines Interests Limited Partnership (“Hines”) that makes debt and equity investments in middle market (“Middle Market”) companies, which we define as companies with annual revenues generally between $10 million and $3 billion and in lower middle market (“LMM”) companies, which we define as companies with annual revenues generally between $10 million and $150 million. We are an externally managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). We are, therefore, required to comply with certain regulatory requirements. We have elected to be treated for U.S. federal income tax purposes as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).
Our primary investment objective is to generate current income through debt and equity investments. A secondary objective is to generate long-term capital appreciation through equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities. Our portfolio strategy calls is to invest primarily in illiquid debt and equity securities issued by LMM companies and Middle Market companies in private placements and negotiated transactions, which are traded in private over-the-counter markets for institutional investors. We will also invest in, and a significant portion of our assets are invested in, customized direct secured and unsecured loans to and equity securities of LMM companies, referred to as LMM securities. Typically, our investments in LMM companies require us to co-invest with Main Street Capital Corporation, a New York Stock Exchange listed BDC (“Main Street”), and/or its affiliates as a result of our sub-advisory relationship described below. We categorize some of our investments in LMM companies and Middle Market companies as private loan (“Private Loan”) portfolio investments. Private Loan investments, often referred to in the debt markets as “club deals,” are investments, generally in debt instruments, that we originate on a collaborative basis with other investment funds. Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio. Our portfolio also includes other portfolio (“Other Portfolio”) investments primarily consisting of our investment in HMS-ORIX SLF LLC (“HMS-ORIX”) and investments managed by third parties, which differ from the typical profiles for our other types of investments.

We previously registered for sale up to 150,000,000 shares of common stock pursuant to a registration statement on Form N-2 (File No. 333-178548) which was initially declared effective by the SEC on June 4, 2012 (the “Initial Offering”). The Initial Offering terminated on December 1, 2015. We raised approximately $601.2 million in the Initial Offering, including proceeds from the dividend reinvestment plan of approximately $22.0 million. We also registered for sale up to $1,500,000,000 worth of shares of common stock (the “Offering”) pursuant to a new registration statement on Form N-2 (File No. 333-204659), as amended. With the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. Through March 31, 2018,2019, we raised approximately $191.0$217.6 million in the Offering, including proceeds from the distribution reinvestment plan of approximately $59.3$85.9 million.

Our business is managed by the Adviser, an affiliate of Hines, under an Investment Advisory and Administrative Services Agreement dated May 31, 2012 as(as amended (thethe “Investment Advisory Agreement”). We and the Adviser have retained MSC Adviser I, LLC (the “Sub-Adviser”), a wholly owned subsidiary of Main Street, as our investment sub-adviser pursuant to an Investment Sub-Advisory Agreement (the “Sub-Advisory Agreement”) to identify, evaluate, negotiate and structure prospective investments, make investment and portfolio management recommendations for approval by the Adviser, monitor our investment portfolio and provide certain ongoing administrative services to the Adviser. The Adviser and the Sub-Adviser are collectively referred to as the “Advisers,” and each is registered under the Investment Advisers Act of 1940, as amended. Upon the execution of the Sub-Advisory Agreement, Main Street became our affiliate. Our board of directors most recently reapproved the Investment Advisory Agreement and the Sub-Advisory Agreement on May 10, 2018. We have engaged Hines Securities, Inc. (the “Dealer Manager”), an affiliate of the Adviser, to serve as the Dealer Manager for our offerings, if any.

As part of our Other Portfolio investments, we co-invest in broadly-syndicated loans with ORIX Funds Corp. (“Orix”) through our investment in HMS-ORIX, which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, we and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. We do not operationally control HMS-ORIX, and, accordingly, we do not consolidate the operations of HMS-ORIX within our consolidated financial statements. Please see “Financial Condition, Liquidity and Capital Resources — Recent Developments and Subsequent Events” for information regarding transaction involving HMS-ORIX.

As a BDC, we are subject to certain regulatory restrictions in making our investments, including limitations on our ability to co-invest with certain affiliates, including Main Street. However, we received exemptive relief from the SEC, that permits us, subject to certain conditions, to co-invest with Main Street and/or its affiliates in certain transactions originated by Main Street and/or our Advisers. The exemptive relief permits us, and certain of our directly or indirectly wholly owned subsidiaries on one hand, and Main Street and or/certain of its affiliates on the other hand, to co-invest in the same investment opportunities where such investment


may otherwise be prohibited under Section 57(a)(4) of the 1940 Act. In addition, we may continue to co-invest with Main Street and/or its affiliates in syndicated deals and secondary loan market purchases in accordance with applicable regulatory guidance or interpretations where price is the only negotiated point.

As of March 31, 2018,2019, we had investments in 5144 Middle Market debt investments, 4049 Private Loan debt investments, 3138 LMM debt investments, 3240 LMM equity investments, fivesix Middle Market equity investments, 1316 Private Loan equity investments and seveneight Other Portfolio investments with an aggregate fair value of approximately $1,067.6$1,110.1 million, a cost basis of approximately $1,071.9$1,113.5 million and a weighted average effective annual yield of approximately 8.9%9.6%. The weighted average annual yield was


calculated using the effective interest rates for all investments at March 31, 2018,2019, including accretion of original issue discount and amortization of premium to par value, the amortization of fees received in connection with transactions, and assumes zero yield for investments on non-accrual status. Approximately 82.6%80.1% and 9.2%8.8% of our total portfolio investments (at fair value, excluding our Other Portfolio investments) were secured by first priority liens and second priority liens, respectively, on portfolio company assets respectively, with the remainder in unsecured debt investments and equity investments.
 
The level of new portfolio investment activity will fluctuate from period to period based upon our view of the current economic fundamentals, our ability to identify new investment opportunities that meet our investment criteria and our ability to close on the identified transactions. The level of new investment activity and associated interest and fee income will directly impact future investment income. While we intend to grow our investment income over the long-term, our operating results may be more limited during depressed economic periods. However, we intend to appropriately manage our cost structure and liquidity position based on applicable economic conditions and our investment outlook. The level of realized gains or losses(losses) and unrealized appreciation or depreciation(depreciation) will also fluctuate depending upon portfolio activity and the performance of our individual portfolio companies. The changes in realized gains and losses(losses) and unrealized appreciation or depreciation(depreciation) could have a material impact on our operating results.
 
Investment Income
 
We have generated, and plan to continue to generate, investment income primarily in the form of interest on the debt securities that we hold, dividends and other distributions with respect to any equity interests that we hold and capital gains, if any, on our investments. In addition, we may generate revenue in the form of commitment, origination, structuring or diligence fees, monitoring fees, and possibly consulting fees and performance-based fees. All such fees will be generated in connection with our investments and recognized as earned or as additional yield over the life of the debt investment. To date our investment income has been interest income on debt investments, accretion of original issue discounts, dividend income, amortization of premiums and fees received from transactions, net realized appreciation (depreciation)gain (loss) on investments and net change in unrealized appreciation (depreciation). on investments.

Expenses
 
On both a short-term and long-term basis, our primary use of funds will be investments in portfolio companies and cash distributions to our stockholders. Our primary operating expenses will be debt service payments, general and administrative expenses, and payment of advisory fees under the Investment Advisory Agreement. The investment advisory fees paid to our Adviser (and the fees paid by our Adviser to our Sub-Adviser pursuant to the Sub-Advisory Agreement) will compensate our Advisers for their work in identifying, evaluating, negotiating, executing, monitoring and servicing our investments.
 
We bear all other expenses of our operations and transactions, including fees and expenses relating to:
  
 corporate and organizational expenses relating to offerings of our common stock, subject to certain limitations;
  
 the cost of calculating our net asset value (“NAV”), including the cost of any third-party valuation services;
  
 the cost of effecting sales and repurchaserepurchases of shares of our common stock and other securities;
  
 fees payable to third parties relating to, or associated with, monitoring our financial and legal affairs, making investments, and valuing investments, including fees and expenses associated with performing due diligence reviews of prospective investments;
  
 interest payable on debt, if any, including any hedging costs;
  
 investment advisory fees;
  
 transfer agent and custodial fees;
  
 fees and expenses associated with marketing efforts;
  
 federal and state registration fees;
  
 federal, state and local taxes;
  
 independent directors’ fees and expenses, including travel expenses;
  
 costs of director and stockholder meetings, proxy statements, stockholders’ reports and notices;


  
 cost of fidelity bond, directors and officers/errors and omissions liability insurance and other insurance premiums;
  
 direct costs such as printing of stockholder reports and advertising or sales materials, mailing, long distance telephone, and staff;
  
 fees and expenses associated with independent audits and outside legal costs, including compliance with the Sarbanes-Oxley Act of 2002, the 1940 Act, and other applicable federal and state securities laws and regulations;
  
 costs associated with our reporting and compliance obligations under the 1940 Act and other applicable federal and state securities laws and regulations;


  
 brokerage commissions for our investments;
  
 all other expenses incurred by our Advisers in performing their obligations, subject to the limitations included in the Investment Advisory Agreement and Sub-Advisory Agreement; and
  
 all other expenses incurred by us or any administrator in connection with administering our business, including payments under any administration agreement that will be based upon our allocable portion of overhead and other expenses incurred by any administrator in performing its obligations under any proposed administration agreement, including rent and our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer and Chief Financial Officer and their respective staffs.

During periods of asset growth, we expect our general and administrative expenses to be relatively stable or decline as a percentage of total assets and increase during periods of asset declines.

Base Management Fee, Incentive Fee Waiver Agreements and Administrative Services Expense Reimbursement Waiver Agreements

From time to time, our Advisers may waive certain fees and expense reimbursements accrued under the Investment Advisory Agreement and the Sub-Advisory Agreement, as applicable. WeUnder certain circumstances, we may reimburse such waived fees within three years from the date of each respective fee reimbursement waiver. See Note 10 - Related Party Transactions and Arrangements - Advisory Agreements and Conditional Fee and Expense Reimbursement Waivers to our condensed consolidated financial statements included elsewhere in this Report for additional information on our fee and expense reimbursement waivers.

CRITICAL ACCOUNTING POLICIES
 
Each of our critical accounting policies involves the use of estimates that require management to make assumptions that are subjective in nature. Management relies on its experience, collects historical and current market data, and analyzes these assumptions in order to arrive at what it believes to be reasonable estimates. In addition, application of these accounting policies involves the exercise of judgments regarding assumptions as to future uncertainties. Actual results could materially differ from these estimates. A disclosure of our critical accounting policies is included in our Annual Report on Form 10-K (as amended) for the year ended December 31, 20172018 in Management’s Discussion and Analysis of Financial Condition and Results of Operations. There have been no changes to our critical accounting policies during 2018,2019, except to the extent described below.

Basis of Presentation and Consolidation

Our condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and accounting principles generally accepted in the United States of America and include the accounts of our wholly owned consolidated subsidiaries: HMS Funding I LLC (“HMS Funding”), HMS Equity Holding, andLLC (“HMS Equity Holding”), HMS Equity Holding II.II, Inc. (“HMS Equity Holding II”), HMS California Holdings LP (“HMS California Holdings”) and HMS California Holdings GP LLC (“HMS California Holdings GP”). All intercompany accounts and transactions have been eliminated in consolidation. Under the 1940 Act rules, regulations pursuant to Articles 6, 10 and 12 of Regulation S-X and Topic 946, Financial Services - Investment Companies of the Accounting Standards Codification, as amended (the “ASC”), of the Financial Accounting Standards Board (“FASB”), we are precluded from consolidating portfolio company investments, including those in which we have a controlling interest, unless the portfolio company is a wholly owned investment company. An exception to this general principle occurs if we own a controlled operating company whose purpose is to provide services to us such as an investment adviser or transfer agent. None of our investments qualify for this exception. Therefore, our portfolio company investments, including those in which we have a controlling interest, are carried on the Consolidated Balance Sheet at fair value with changes to fair value recognized as “Net Change in Unrealized Appreciation (Depreciation) on Investments” on the Consolidated Statements of Operations until the investment is realized, usually upon exit, resulting in any gain or loss on exit being recognized as a realized gain or loss. However, in the event that any controlled subsidiary exceeds the tests of significance set forth in Rules 3-09 or 4-08(g) of Regulation S-X, we will include required financial information for such subsidiary in the notes or as an attachment to our condensed consolidated financial statements.



PORTFOLIO INVESTMENT COMPOSITION

Our Middle Market portfolio investments primarily consist of direct or secondary purchases of interest-bearing debt securities in companies that are generally larger in size than the LMM companies included in our LMM portfolio. While our Middle Market debt investments are generally secured by a first priority lien, 16.3%16.5% of the fair value of our Middle Market portfolio, as of March 31, 2019, is secured by second priority liens.
 
Our currentAs of March 31, 2019, LMM portfolio consists of debt investments secured by a first priority lien (64.4%(61.8% of the total fair value of the LMM portfolio) on the assets of the portfolio companies and equity investments (35.6%(38.2% of the total fair value of the LMM portfolio) in privately held LMM companies as of March 31, 2018.companies. The LMM debt investments generally mature between five and seven years


from the original investment date. The LMM equity investments represent an equity position or the right to acquire an equity position through warrants.

OurAs of March 31, 2019, Private Loan portfolio primarily consists of debt investments secured by first and second priority liens (91.2%(87.5% and 3.4%6.0% of the total fair value of the Private Loan portfolio, respectively) on the assets of the portfolio companies, unsecured debt investments (2.9%(2.6% of the total fair value of the Private Loan portfolio) and equity investments (2.5%(3.9% of the total fair value of the Private Loan portfolio) in Private Loan companies as of March 31, 2018.companies. The Private Loan debt investments typically have stated terms between three and seven years from the original investment date. The Private Loan equity investments represent an equity position or the right to acquire an equity position through warrants.

Our Other Portfolio investments primarily consist of our investment in HMS-ORIX (discussed in more detail below) and investments managed by third parties, which differ from the typical profiles for LMM, Middle Market and Private Loan portfolio investments. In the Other Portfolio investments, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.

During the three months ended March 31, 2018,2019, we funded investment purchases of approximately $181.8$34.2 million and had six investmentsone investment under contract to purchase as of March 31, 20182019 for an aggregate purchase price of approximately $19.4$1.8 million, which settled or wewas scheduled to settle after March 31, 2018.2019. We also received proceeds from sales and repayments of existing portfolio investments of approximately $133.0$39.0 million, including $91.6$24.9 million in sales. Additionally, we had four investmentsone investment under contract to sell as of March 31, 2018,2019, for approximately $28.6 million,$809,000, which represented the contract sales price. The combined result of these transactions increaseddecreased our portfolio, on a cost basis, by approximately $7.6$8.2 million, or 0.7%, and the number of portfolio investments by three1 or 1.7%0.5%, compared to the portfolio as of December 31, 2017.2018. As of March 31, 2018,2019, the largest investment in an individual portfolio company represented approximately 2.9%2.6% of our portfolio’s fair value, with the remaining investments in anany individual portfolio company ranging from 0.0% to 2.1%2.3%. The average investment in our portfolio is approximately $6.0$5.5 million or 0.6%0.5% of theour total portfolio.portfolio as of March 31, 2019. Our portfolio is broadenedextends across individual portfolio investments, geographic regions, and industries. Further, our total portfolio’s investment composition (excluding our Other Portfolio investments) at fair value is comprised of 82.6%comprises 80.1% first lien debt securities and 9.2%8.8% second lien debt securities, with the remainder in unsecured debt investments and equity investments. First lien debt securities have priority over subordinated debt owed by the issuer with respect to the collateral pledged as security for the loan. Due to the relative priority of payment of first lien investments, these generally have lower yields than lower priority, less secured investments.

During the three months ended March 31, 2017,2018, we made investment purchases of approximately $110.9$181.8 million and had one investmentsix investments under contract to purchase as of March 31, 20172018 for an aggregate purchase price of approximately $7.4$19.4 million, which settled after March 31, 2017.2018. We also received proceeds from sales and repayments of existing portfolio investments of approximately $137.8$133.0 million including $9.7$91.6 million in sales and had twofour investments under contract to sell as of March 31, 20172018 for approximately $8.2$28.6 million, which represented the contract sales price.

The result of these transactions further diversified our geographic and industry concentrations and based upon our investment rating system, which is described further below, the weighted average rating of our LMM was approximately 2.6 and 2.72.5 as of both March 31, 20182019 and December 31, 2017, respectively.2018. See “Portfolio Asset Quality” below for a description of the system used to rate our investments. Lastly, the overall weighted average effective yield on our investment portfolio remained at 8.9%increased from 9.5% as of December 31, 2017 and2018 to 9.6% as of March 31, 2018.2019.



Summaries of the composition of our total investment portfolio at cost and fair value are shown in the following tables (this information excludes Other Portfolio investments):
 March 31, 2018 December 31, 2017
Cost:LMM Private Loan Middle Market Total LMM Private Loan Middle Market Total
First Lien Secured Debt69.4% 91.0% 83.0% 83.8% 69.8% 92.5% 83.1% 84.3%
Second Lien Secured Debt
 3.3
 15.7
 9.1
 
 1.5
 16.2
 9.6
Unsecured Debt
 2.9
 0.2
 1.1
 
 3.3
 0.1
 1.1
Equity (1)
29.8
 2.6
 1.1
 5.8
 29.2
 2.5
 0.6
 4.8
Equity warrants0.8
 0.2
 
 0.2
 1.0
 0.2
 
 0.2
Total100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
(1) Includes our investment in HMS-ORIX.


 March 31, 2019 December 31, 2018
Cost:LMM Private Loan Middle Market Total LMM Private Loan Middle Market Total
First Lien Secured Debt70.4% 87.9% 80.5% 81.7% 70.4% 87.3% 81.8% 82.0%
Second Lien Secured Debt
 5.9
 16.8
 9.3
 
 6.2
 15.8
 9.2
Unsecured Debt
 2.6
 0.4
 1.2
 
 2.6
 0.2
 1.1
Equity 
29.0
 3.4
 2.3
 7.7
 28.9
 3.7
 2.2
 7.5
Equity warrants0.6
 0.2
 
 0.1
 0.7
 0.2
 
 0.2
Total100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

 March 31, 2018 December 31, 2017
Fair Value:LMM Private Loan Middle Market Total LMM Private Loan Middle Market Total
First Lien Secured Debt64.4% 91.2% 82.2% 82.6% 64.7% 92.4% 82.1% 83.0%
Second Lien Secured Debt
 3.4
 16.3
 9.2
 
 1.5
 17.0
 9.8
Unsecured Debt
 2.9
 0.2
 1.1
 
 3.4
 0.1
 1.1
Equity (1)
34.9
 2.3
 1.3
 6.9
 34.3
 2.5
 0.8
 5.9
Equity warrants0.7
 0.2
 
 0.2
 1.0
 0.2
 
 0.2
Total100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
(1) Includes our investment in HMS-ORIX.
 March 31, 2019 December 31, 2018
Fair Value:LMM Private Loan Middle Market Total LMM Private Loan Middle Market Total
First Lien Secured Debt61.8% 87.5% 82.1% 80.1% 62.1% 87.1% 82.9% 80.3%
Second Lien Secured Debt
 6.0
 16.5
 8.8
 
 6.3
 15.6
 8.9
Unsecured Debt
 2.6
 0.4
 1.2
 
 2.5
 0.2
 1.1
Equity37.7
 3.7
 1.0
 9.7
 37.4
 3.9
 1.3
 9.5
Equity warrants0.5
 0.2
 
 0.2
 0.5
 0.2
 
 0.2
Total100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

For the tables showing our total investment portfolio composition by geographic region and by industry, see Note 3 - Fair Value Hierarchy for Investments - Portfolio Investment Composition to our condensed consolidated financial statements included elsewhere in this Report.

Investment in HMS-ORIX

We co-invest in broadly-syndicated loans with ORIX Funds Corp. (“Orix”)Orix through our investment in HMS-ORIX, which is organized as a Delaware limited liability company. Pursuant to the terms of the limited liability company agreement and through representation on the HMS-ORIX Board of Managers, we and Orix each have 50% voting control of HMS-ORIX and together will agree on all portfolio and investment decisions as well as all other significant actions for HMS-ORIX. We do not operationallyhave sole control of significant actions of HMS-ORIX, and, accordingly, we do not consolidate the operations of HMS-ORIX within theour consolidated financial statements. As of March 31, 2018,2019, we and Orix have committed to provide, and have funded, an aggregate of $50.0 million of equity to HMS-ORIX, with us providing $30.0 million (60% of the equity) from us and Orix providing $20.0 million (40% of the equity). from Orix.

As of March 31, 20182019 and December 31, 2017,2018, HMS-ORIX had total assets of $146.3$176.0 million and $142.9$162.5 million, respectively, and HMS-ORIX’s portfolio consisted of 78114 and 74107 broadly-syndicated loans, respectively, all of which were secured by first-priority liens, generally in industries similar to those in which we may directly invest. As of March 31, 2019, there were no loans in HMS-ORIX’s portfolio that were on non-accrual status.

On April 5, 2017, HMS-ORIX closed on a $100.0 million credit facility with Bank of America, N.A.(the “Initial HMS-ORIX Credit Facility”). The facility hasInitial HMS-ORIX Credit Facility had a maturity date of April 5, 2020, and borrowings under the facility bearaccrued interest at a rate equal to LIBOR plus 1.65% per annum.

On November 20, 2018, HMS-ORIX closed on a $170.0 million credit facility with Citibank, N.A. (the “Refinanced HMS-ORIX Credit Facility”). The proceeds from the Refinanced HMS-ORIX Credit Facility were used to pay off the outstanding balance on the Initial HMS-ORIX Credit Facility, which was subsequently terminated. The reinvestment period for the Refinanced HMS-ORIX Credit Facility is scheduled to expire on September 6, 2019, and the maturity date is nine months after expiration of the reinvestment period (unless terminated earlier pursuant to the terms of the Refinanced HMS-ORIX Credit Facility). Borrowings under the Refinanced HMS-ORIX Credit Facility bear interest at a rate equal to the three-month LIBOR plus 1.15%. As of March 31, 20182019 and December 31, 2017, $91.32018, $123.1 million and $86.5$98.8 million, respectively, waswere outstanding under this facility. Borrowings under the facility are secured by substantially all of the assets of HMS-ORIX. If we were to include our pro-rata share of the borrowings under the HMS-ORIX credit facility as leverage on our balance sheet as of March 31, 2018,2019, our asset coverage ratio as of such date would have been 215%, assuming unfunded commitments are treated as senior securities.210%.



The following table presents a summary of HMS-ORIX’s portfolio as of March 31, 20182019 and December 31, 20172018 (dollars in thousands):
As of March 31, 2018As of December 31, 2017As of March 31, 2019As of December 31, 2018
  
Total debt investments (1)
$140,212
$138,908
$170,325
$165,025
Weighted average effective yield on loans(2)
5.26%4.95%5.91%5.82%
Largest loan to a single borrower(1)
$3,487
$3,496
$3,452
$3,461
Total of 10 largest loans to borrowers(1)
$30,812
$30,790
$30,228
$30,430
(1) At principal amount.
(2) Weighted average effective annual yield is calculated based on the investments at the end of each period and includes accretion of original issue discounts and amortization of premiums, and the amortization of fees received in connection with transactions. Investments, if any, on non-accrual status are assumed to have a zero yield in the calculation of weighted average effective annual yield.

The following table presents a listing of HMS-ORIX’s individual loan investments as of March 31, 2019:
HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Acrisure, LLCInsuranceLIBOR (2 months) + 4.25%, Current Coupon 6.88%, Secured Debt (Maturity - November 22, 2023)$2,486
$2,482
$2,478
Advantage Sales & Marketing Inc.Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 23, 2021)1,965
1,914
1,701
Air Medical Group Holdings, Inc.Healthcare Providers and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - April 28, 2022)1,965
1,956
1,875
AlixPartners, LLPProfessional ServicesLIBOR (3 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - April 4, 2024)990
990
988
American Seafoods Group LLCFood ProductsPrime + 1.75%, Current Coupon 7.25%, Secured Debt (Maturity - August 21, 2023)1,435
1,428
1,422
Ancestry.com Operations Inc.Internet Software and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - October 19, 2023)1,293
1,306
1,291
Arch Coal, Inc.Metals and MiningLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - March 7, 2024)1,960
1,967
1,962
Asurion, LLCInsuranceLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 3, 2023)1,258
1,258
1,256
  LIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 4, 2024)323
321
322
   1,581
1,579
1,578
Atkore International, Inc.Electric Equipment, Instruments and ComponentsLIBOR (3 months) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - December 22, 2023)2,887
2,905
2,866
Barracuda NetworksInternet Software and ServicesLIBOR (3 months) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 12, 2025)997
972
992
Bass Pro Group, LLCSpecialty RetailLIBOR (3 months) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - September 25, 2024)1,970
1,926
1,945
Bausch Health Companies Inc.Healthcare Providers and ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.48%, Secured Debt (Maturity - June 2, 2025)1,347
1,353
1,344
BCP Renaissance Parent L.L.C.Oil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 6.24%, Secured Debt (Maturity - October 31, 2024)596
597
595


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Boxer Parent Company, Inc.SoftwareLIBOR (3 months) + 4.25%, Current Coupon 6.85%, Secured Debt (Maturity - October 2, 2025)$2,793
$2,767
$2,751
Boyd Gaming CorporationHotel, Restaurant and LeisureLIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)1,247
1,206
1,239
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - February 29, 2024)2,940
2,936
2,867
Caesars Resort Collection, LLCHotel, Restaurant and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - December 23, 2024)1,244
1,208
1,234
Calpine CorporationIndependent Power and Renewable Electricity ProviderLIBOR (3 months) + 2.50%, Current Coupon 5.11%, Secured Debt (Maturity - January 15, 2023)1,964
1,971
1,963
CareerBuilderInternet Software and ServicesLIBOR (3 months) + 6.75%, Current Coupon 9.35%, Secured Debt (Maturity - July 31, 2023)1,449
1,449
1,451
CDS U.S. Intermediate Holdings, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - July 8, 2022)970
972
904
CenturyLink Inc.Diversified Telecommunication ServicesLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - January 31, 2025)995
942
979
Citgo Petroleum CorporationOil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 6.30%, Secured Debt (Maturity - July 29, 2021)695
690
694
ClubCorp Holdings, Inc.Real Estate Management and DevelopmentLIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,867
Compass Power Generation, L.L.C.Independent Power and Renewable Electricity ProviderLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - December 20, 2024)1,262
1,262
1,263
Creative Artists Agency, LLCEntertainmentLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 26, 2024)1,970
1,970
1,945
  LIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - February 15, 2024)995
981
993
   2,965
2,951
2,938
Cyxtera DC Holdings, Inc.Technology Hardware, Storage and PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 1, 2024)2,948
2,958
2,900
Deerfield Holdings CorporationDiversified Financial ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 13, 2025)2,970
2,966
2,919
Diamond Resorts International, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 1, 2023)2,125
2,152
2,053
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (3 months) + 3.25%, Current Coupon 5.86%, Secured Debt (Maturity - June 28, 2023)1,816
1,829
1,808
Eldorado Resorts, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 2.25%, Current Coupon 4.88%, Secured Debt (Maturity - April 17, 2024)1,000
969
993
Encapsys LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - November 7, 2024)990
991
978
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - April 29, 2024)1,965
1,983
1,940


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - May 9, 2024)$1,965
$1,958
$1,963
Exgen Renewables IV, LLCIndependent Power and Renewable Electricity ProviderLIBOR (3 months) + 3.00%, Current Coupon 5.63%, Secured Debt (Maturity - November 29, 2024)294
294
276
Financial & Risk US Holdings, Inc.SoftwareLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - October 1, 2025)1,421
1,420
1,384
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 4.75%, Current Coupon 7.39%, Secured Debt (Maturity - January 5, 2024)883
893
883
Fitness International, LLCHotel, Restaurant and LeisureLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - April 18, 2025)2,034
2,045
2,021
Flex Acquisition Company IncContainers and PackagingLIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - December 29, 2023)1,970
1,979
1,931
Flexera Software LLCSoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - February 26, 2025)1,514
1,511
1,510
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - July 30, 2024)2,255
2,249
2,256
Golden Nugget, Inc.Hotel, Restaurant and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.23%, Secured Debt (Maturity - October 4, 2023)1,870
1,870
1,856
Gray Television, Inc.Broadcast Radio and TelevisionLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - February 12, 2025)1,839
1,822
1,835
  LIBOR (1 month) + 2.50%, Current Coupon 4.98%, Secured Debt (Maturity - January 2, 2026)285
280
284
   2,124
2,102
2,119
Greatbatch Ltd.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.49%, Secured Debt (Maturity - October 27, 2022)1,934
1,945
1,933
GYP Holdings III Corp.Trading Companies and DistributorsLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - June 2, 2025)3,439
3,464
3,355
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 18, 2023)1,944
1,950
1,910
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - March 29, 2024)1,219
1,230
1,221
Hornblower Sub, LLCHotel, Restaurant and LeisureLIBOR (3 months) + 4.50%, Current Coupon 7.10%, Secured Debt (Maturity - April 28, 2025)1,995
1,989
1,999
Hyland Software, Inc.SoftwareLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 1, 2024)498
485
498
Infiltrator Water Technologies, LLCSpecialty RetailLIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - May 23, 2025)1,970
1,982
1,967
Invenergy Thermal Operating I LLCRenewable Energy ProviderLIBOR (1 month) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - May 27, 2022)1,392
1,371
1,382
  LIBOR (3 months) + 3.50%, Current Coupon 6.10%, Secured Debt (Maturity - August 28, 2025)1,920
1,916
1,932
   3,312
3,287
3,314


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
IRB Holding Corp.Food ProductsLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - February 5, 2025)$396
$396
$389
Ivanti Software, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - January 22, 2024)981
987
975
KBR, Inc.Aerospace and DefenseLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - April 25, 2025)1,987
1,979
1,993
Kingpin Intermediate Holdings LLCDiversified Consumer ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - July 3, 2024)995
986
991
KUEHG Corp.Diversified Consumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.35%, Secured Debt (Maturity - February 21, 2025)2,451
2,458
2,434
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - December 1, 2023)1,965
1,983
1,962
MA FinanceCo., LLCSoftwareLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)383
384
377
Match Group, Inc.MediaLIBOR (6 months) + 3.00%, Current Coupon 5.69%, Secured Debt (Maturity - February 24, 2025)676
674
647
  LIBOR (3 months) + 2.50%, Current Coupon 5.08%, Secured Debt (Maturity - November 16, 2022)2,000
1,998
1,998
   2,676
2,672
2,645
McAfee, LLCSoftwareLIBOR (3 months) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 30, 2024)945
932
945
McDermott International, Inc.Construction and EngineeringLIBOR (1 month) + 5.00%, Current Coupon 7.50%, Secured Debt (Maturity - May 12, 2025)990
971
954
Metro-Goldwyn-Mayer Inc.MediaLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - July 3, 2025)995
969
990
Micro Holding Corp.MediaLIBOR (1 month) + 2.50%, Current Coupon 4.99%, Secured Debt (Maturity - January 30, 2023)997
971
982
  LIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - September 13, 2024)1,244
1,215
1,232
   2,241
2,186
2,214
Mohegan Tribal Gaming AuthorityHotel, Restaurant and LeisureLIBOR (1 month) + 4.00%, Current Coupon 6.50%, Secured Debt (Maturity - October 13, 2023)1,909
1,927
1,818
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (3 months) + 2.75%, Current Coupon 5.35%, Secured Debt (Maturity - June 7, 2023)2,569
2,604
2,499
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.00%, Current Coupon 5.60%, Secured Debt (Maturity - July 1, 2024)1,970
1,961
1,920
National Mentor Holdings, Inc.Healthcare Facilities and ServicesLIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)1,883
1,870
1,891
  LIBOR (1 month) + 4.25%, Current Coupon 6.75%, Secured Debt (Maturity - March 9, 2026)117
116
117
   2,000
1,986
2,008
Ortho-Clinical Diagnostics, IncLife Sciences Tools and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - June 30, 2025)1,935
1,931
1,868


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Packaging Coordinators Midco IncHealthcare Facilities and ServicesLIBOR (3 months) + 4.00%, Current Coupon 6.61%, Secured Debt (Maturity - June 30, 2023)$995
$990
$994
Party City Holdings Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 19, 2022)1,240
1,220
1,237
Phoenix Guarantor Inc.Healthcare Facilities and ServicesLIBOR (1 month) + 4.50%, Current Coupon 6.98%, Secured Debt (Maturity - March 5, 2026)917
903
905
PI UK Holdco II LimitedDiversified Financial ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - January 3, 2025)2,970
2,949
2,932
Prime Security Services Borrower, LLCCommercial Services and SuppliesLIBOR (1 month) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - May 2, 2022)653
637
649
Rackspace Hosting, Inc.Electric Equipment, Instruments and ComponentsLIBOR (3 months) + 3.00%, Current Coupon 5.74%, Secured Debt (Maturity - November 3, 2023)3,242
3,266
3,061
Radiate Holdco, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 1, 2024)2,538
2,514
2,509
Radiology Partners, Inc.Healthcare Facilities and ServicesLIBOR (3 months) + 4.75%, Current Coupon 7.55%, Secured Debt (Maturity - July 9, 2025)1,496
1,489
1,502
Red Ventures, LLCProfessional ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - November 8, 2024)1,627
1,616
1,625
Savage Enterprises, LLCRoad and RailLIBOR (1 month) + 4.50%, Current Coupon 6.99%, Secured Debt (Maturity - August 1, 2025)1,024
1,004
1,027
Scientific Games International, Inc.Leisure ProductsLIBOR (2 months) + 2.75%, Current Coupon 5.33%, Secured Debt (Maturity - August 14, 2024)890
891
869
Seattle SpinCo, Inc.SoftwareLIBOR (3 months) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 21, 2024)2,587
2,590
2,548
SeaWorld Parks & Entertainment, Inc.Hotel, Restaurant and LeisureLIBOR (3 months) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - April 1, 2024)1,960
1,962
1,947
ServiceMaster Company, LLCHome and Office ProductsLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - November 8, 2023)651
648
650
Sprint Communications, Inc.Diversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.50%, Secured Debt (Maturity - February 2, 2024)499
492
491
SRS Distribution Inc.Trading Companies and DistributorsLIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - May 23, 2025)1,194
1,191
1,147
SS&C Technologies, Inc.SoftwareLIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)200
199
198
  LIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 16, 2025)278
277
276
   478
476
474
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 6.49%, Secured Debt (Maturity - September 12, 2024)1,975
1,970
1,961
Starfruit US Holdco LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - October 1, 2025)1,250
1,247
1,240


HMS-ORIX
Loan Portfolio
As of March 31, 2019
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Telenet Financing USD LLCDiversified Telecommunication ServicesLIBOR (1 month) + 2.25%, Current Coupon 4.73%, Secured Debt (Maturity - August 17, 2026)$1,655
$1,653
$1,635
Transdigm, Inc.Aerospace and DefenseLIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - June 9, 2023)1,960
1,967
1,925
  LIBOR (1 month) + 2.50%, Current Coupon 5.00%, Secured Debt (Maturity - August 22, 2024)988
985
968
   2,948
2,952
2,893
Travelport Finance (Luxembourg) S.A.R.L.Internet Software and ServicesLIBOR (3 months) + 2.50%, Current Coupon 5.18%, Secured Debt (Maturity - March 17, 2025)1,232
1,226
1,232
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - August 18, 2023)1,960
1,971
1,960
USS Ultimate Holdings IncConsumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - August 26, 2024)597
588
596
Utz Quality Foods, LLCFood ProductsLIBOR (1 month) + 3.50%, Current Coupon 6.00%, Secured Debt (Maturity - November 21, 2024)1,580
1,579
1,580
VeriFone Systems, Inc.HardwareLIBOR (1 month) + 4.00%, Current Coupon 6.68%, Secured Debt (Maturity - August 20, 2025)499
489
493
Vertafore, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.75%, Secured Debt (Maturity - July 2, 2025)2,494
2,482
2,463
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - November 30, 2023)1,555
1,569
1,467
VFH Parent LLCDiversified Financial ServicesLIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - March 2, 2026)1,000
995
1,004
Vistra Operations Company LLCElectric UtilitiesLIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - December 14, 2023)1,960
1,971
1,955
Wand NewCo 3, Inc.AutomobilesLIBOR (1 month) + 3.50%, Current Coupon 5.98%, Secured Debt (Maturity - February 5, 2026)1,200
1,189
1,203
Web.Com Group, Inc.Internet Software and ServicesLIBOR (3 months) + 3.75%, Current Coupon 6.24%, Secured Debt (Maturity - October 10, 2025)909
908
900
West CorporationDiversified Telecommunication ServicesLIBOR (3 months) + 3.50%, Current Coupon 6.13%, Secured Debt (Maturity - October 10, 2024)645
644
602
  LIBOR (3 months) + 4.00%, Current Coupon 6.63%, Secured Debt (Maturity - October 10, 2024)1,019
1,009
963
   1,664
1,653
1,565
WideOpenWest Finance, LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.74%, Secured Debt (Maturity - August 18, 2023)3,452
3,462
3,355
William Morris Endeavor Entertainment, LLCRecreation Facilities and ServicesLIBOR (1 month) + 2.75%, Current Coupon 5.36%, Secured Debt (Maturity - May 16, 2025)636
607
601
Zekelman Industries, IncManufacturingLIBOR (1 month) + 2.25%, Current Coupon 4.74%, Secured Debt (Maturity - June 14, 2021)1,000
987
993
Total Loan Portfolio  $170,325
$169,827
$167,819



The following table presents a listing of HMS-ORIX’s individual loansloan investments as of MarchDecember 31, 2018:
HMS-ORIXLoan Portfolio
As of March 31, 2018
As of December 31, 2018As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair ValueIndustryType of InvestmentPrincipalCostFair Value
     
Acosta, Inc.Commercial Services & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 26, 2021)$1,995
$1,884
$1,679
Acrisure, LLCInsuranceLIBOR (2 months) + 4.25%, Current Coupon 5.99%, Secured Debt (Maturity - November 22, 2023)2,109
2,116
2,139
InsuranceLIBOR (2 months) + 4.25%, Current Coupon 6.77%, Secured Debt (Maturity - November 22, 2023)$2,492
$2,487
$2,422
Advantage Sales & Marketing Inc.Commercial Services & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.02%, Secured Debt (Maturity - July 23, 2021)1,985
1,937
1,950
Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - July 23, 2021)1,970
1,913
1,752
Air Medical Group Holdings, Inc.Health Care Providers & ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - April 28, 2022)1,985
1,975
1,996
Health Care Providers and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - April 28, 2022)1,970
1,960
1,847
Alphabet Holding Company, Inc.Food ProductsLIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - September 26, 2024)1,990
1,981
1,860
AlixPartners, LLPProfessional ServicesLIBOR (3 months) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - April 4, 2024)992
992
956
American Seafoods Group LLCFood ProductsLIBOR (1 month) + 2.75%, Current Coupon 4.61%, Secured Debt (Maturity - August 21, 2023)1,456
1,450
1,459
Food ProductsLIBOR (1 month) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - August 21, 2023)1,435
1,428
1,382
Ancestry.com Operations Inc.Internet Software & ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - October 19, 2023)1,985
2,002
1,998
Internet Software and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - October 19, 2023)1,293
1,306
1,240
Arch Coal, Inc.Metals & MiningLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 7, 2024)1,980
1,986
1,994
Metals and MiningLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - March 7, 2024)1,965
1,972
1,916
AshCo, Inc.Specialty RetailLIBOR (3 months) + 5.00%, Current Coupon 6.88%, Secured Debt (Maturity - September 25, 2024)1,990
1,948
1,974
Asurion, LLCInsuranceLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - November 3, 2023)1,271
1,271
1,281
InsuranceLIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 3, 2023)1,261
1,261
1,212
 LIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 4, 2024)323
322
310
 1,584
1,583
1,522
Atkore International, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 2.75%, Current Coupon 5.06%, Secured Debt (Maturity - December 22, 2023)2,970
2,988
2,993
Electric Equipment, Instruments and ComponentsLIBOR (1 month) + 3.00%, Current Coupon 4.97%, Secured Debt (Maturity - December 22, 2023)2,948
2,967
2,864
Barracuda NetworksInternet Software and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - February 12, 2025)1,000
974
956
Bass Pro Group, LLCSpecialty RetailLIBOR (3 months) + 4.25%, Current Coupon 6.55%, Secured Debt (Maturity - September 25, 2024)1,975
1,929
1,898
Bausch Health Companies Inc.Health Care Equipment and SuppliesLIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - June 2, 2025)1,402
1,408
1,342
BCP Renaissance Parent L.L.C.Oil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.77%, Secured Debt (Maturity - October 31, 2024)600
602
604
Oil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 31, 2024)597
599
583
BMC Software Finance, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - September 12, 2022)3,148
3,172
3,167
Boxer Parent Company, Inc.SoftwareLIBOR (3 months) + 4.25%, Current Coupon 7.05%, Secured Debt (Maturity - October 2, 2025)2,800
2,772
2,708
Boyd Gaming CorporationHotels, Restaurants and LeisureLIBOR (1 week) + 2.25%, Current Coupon 4.66%, Secured Debt (Maturity - September 15, 2023)1,250
1,208
1,208
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - February 29, 2024)2,970
2,966
2,986
Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - February 29, 2024)2,947
2,943
2,774
Caesars Resort Collection, LLCHotels, Restaurants and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - December 23, 2024)1,247
1,210
1,201
Calpine CorporationIndependent Power and Renewable Electricity ProducersLIBOR (3 months) + 2.50%, Current Coupon 4.81%, Secured Debt (Maturity - January 15, 2023)1,985
1,991
1,996
Independent Power and Renewable Electricity ProviderLIBOR (3 months) + 2.50%, Current Coupon 5.31%, Secured Debt (Maturity - January 15, 2023)1,970
1,977
1,881
CHS/Community Health Systems, Inc.Healthcare Providers & ServicesLIBOR (3 months) + 3.00%, Current Coupon 4.98%, Secured Debt (Maturity - January 27, 2021)1,613
1,608
1,554
ClubCorp Holdings, Inc.Real Estate Management & DevelopmentLIBOR (3 months) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,973
Colorado Buyer IncTechnology Hardware, Storage & PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 4.78%, Secured Debt (Maturity - May 1, 2024)2,978
2,987
2,983
Confie Seguros Holding II Co.InsuranceLIBOR (1 month) + 5.25%, Current Coupon 7.23%, Secured Debt (Maturity - April 19, 2022)1,980
1,986
1,982
CPI International, Inc.Aerospace & DefenseLIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 26, 2024)1,990
1,990
2,001
CareerBuilderInternet Software and ServicesLIBOR (3 months) + 6.75%, Current Coupon 9.14%, Secured Debt (Maturity - July 31, 2023)1,500
1,500
1,493


HMS-ORIXLoan Portfolio
As of March 31, 2018
As of December 31, 2018As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair ValueIndustryType of InvestmentPrincipalCostFair Value
     
CDS U.S. Intermediate Holdings, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - July 8, 2022)$973
$974
$914
CenturyLink, Inc.Diversified Telecommunication ServicesLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - January 31, 2025)997
943
934
Citgo Petroleum CorporationOil, Gas and Consumable FuelsLIBOR (3 months) + 3.50%, Current Coupon 5.90%, Secured Debt (Maturity - July 29, 2021)695
689
682
ClubCorp Holdings, Inc.Real Estate Management and DevelopmentLIBOR (3 months) + 2.75%, Current Coupon 5.55%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,852
CPI International, Inc.Aerospace and DefenseLIBOR (1 month) + 3.50%, Current Coupon 6.01%, Secured Debt (Maturity - July 26, 2024)1,975
1,975
1,919
Creative Artists Agency LLCEntertainmentLIBOR (1 month) + 3.00%, Current Coupon 5.47%, Secured Debt (Maturity - February 15, 2024)997
983
966
Cyxtera DC Holdings, Inc.Technology Hardware, Storage and PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - May 1, 2024)2,955
2,966
2,840
Deerfield Holdings CorporationDiversified Financial ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.55%, Secured Debt (Maturity - February 13, 2025)$3,000
$2,996
$3,014
Diversified Financial ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - February 13, 2025)2,978
2,974
2,827
Diamond Resorts International, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 4.50%, Current Coupon 6.38%, Secured Debt (Maturity - September 1, 2023)2,146
2,173
2,187
Hotels, Restaurants and LeisureLIBOR (1 month) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)2,130
2,159
1,992
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (3 months) + 3.25%, Current Coupon 5.56%, Secured Debt (Maturity - June 28, 2023)1,890
1,902
1,906
Electric UtilitiesLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - June 28, 2023)1,816
1,830
1,781
Duff & Phelps CorporationDiversified Financial ServicesLIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - November 7, 2024)1,000
1,001
1,009
Eldorado Resorts, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 2.25%, Current Coupon 4.75%, Secured Debt (Maturity - April 17, 2024)1,000
968
960
Encapsys LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - November 7, 2024)993
994
970
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 6.19%, Secured Debt (Maturity - April 29, 2024)1,985
2,003
1,985
PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 6.81%, Secured Debt (Maturity - April 29, 2024)1,970
1,989
1,862
Envision Healthcare CorporationHealth Care Providers & ServicesLIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - December 1, 2023)1,415
1,415
1,423
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.50%, Current Coupon 5.49%, Secured Debt (Maturity - May 9, 2024)1,985
1,979
2,003
Leisure ProductsLIBOR (3 months) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - May 9, 2024)1,970
1,963
1,917
Exgen Renewables IV, LLCElectrical ProductionLIBOR (3 months) + 3.00%, Current Coupon 4.99%, Secured Debt (Maturity - November 29, 2024)299
299
303
Independent Power and Renewable Electricity ProviderLIBOR (3 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - November 29, 2024)294
293
281
Financial & Risk US Holdings, Inc.SoftwareLIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - October 1, 2025)1,425
1,424
1,363
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 4.75%, Current Coupon 6.44%, Secured Debt (Maturity - January 5, 2024)930
941
937
Diversified Financial ServicesLIBOR (1 month) + 4.75%, Current Coupon 7.29%, Secured Debt (Maturity - January 5, 2024)889
900
885
Fitness International, LLCHotels, Restaurants & LeisureLIBOR (1 month) + 3.50%, Current Coupon 5.38%, Secured Debt (Maturity - July 1, 2020)1,735
1,755
1,753
Hotels, Restaurants and LeisureLIBOR (1 month) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - April 18, 2025)2,039
2,050
1,963
Flex Acquisition Company IncContainers & PackagingLIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - December 29, 2023)1,990
1,999
2,002
Containers and PackagingLIBOR (3 months) + 3.00%, Current Coupon 5.35%, Secured Debt (Maturity - December 29, 2023)1,975
1,985
1,869
Flexera Software LLCSoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - February 26, 2025)1,529
1,526
1,541
SoftwareLIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - February 26, 2025)1,518
1,514
1,468
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - July 30, 2024)1,990
2,000
2,002
MachineryLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - July 30, 2024)2,316
2,309
2,242
Golden Nugget, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 3.25%, Current Coupon 4.90%, Secured Debt (Maturity - October 4, 2023)1,985
1,985
2,005
Greatbatch Ltd.Health Care Equipment & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.99%, Secured Debt (Maturity - October 27, 2022)2,627
2,642
2,652
GYP Holdings III Corp.Trading Companies & DistributorsLIBOR (1 month) + 3.00%, Current Coupon 4.77%, Secured Debt (Maturity - April 3, 2023)3,474
3,496
3,493
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 18, 2023)1,975
1,982
1,980
HD Supply Waterworks, Ltd.Trading Companies & DistributorsLIBOR (3 months) + 3.00%, Current Coupon 5.01%, Secured Debt (Maturity - August 1, 2024)140
139
141
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - March 29, 2024)1,985
2,004
1,999
IG Investments Holdings, LLCProfessional ServicesLIBOR (1 month) + 3.50%, Current Coupon 5.80%, Secured Debt (Maturity - October 29, 2021)1,985
1,996
2,012
IRB Holding Corp.Hotels, Restaurants & LeisureLIBOR (1 month) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - February 5, 2025)400
400
405


HMS-ORIX
Loan Portfolio
As of March 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Jackson Hewitt Tax Service Inc.Diversified Financial ServicesLIBOR (1 month) + 7.00%, Current Coupon 8.77%, Secured Debt (Maturity - July 30, 2020)$1,939
$1,875
$1,934
KBRConstructionLIBOR (3 months) + 3.75%, Current Coupon 5.76%, Secured Debt (Maturity - March 28, 2025)1,250
1,244
1,244
KMG Chemicals, Inc.ChemicalsLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 17, 2024)807
804
813
KUEHG Corp.Educational ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.05%, Secured Debt (Maturity - August 12, 2022)2,476
2,482
2,494
LANDesk Group, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 6.13%, Secured Debt (Maturity - January 22, 2024)991
996
976
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - December 1, 2023)1,985
2,003
2,007
MA FinanceCo., LLCElectric Equipment, Instruments & ComponentsLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024)387
387
383
Mallinckrodt International Finance S.A.PharmaceuticalsLIBOR (3 months) + 3.00%, Current Coupon 4.82%, Secured Debt (Maturity - February 24, 2025)1,000
998
999
Mohegan Tribal Gaming AuthorityHotels, Restaurants & LeisureLIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 13, 2023)1,929
1,946
1,929
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (3 months) + 2.75%, Current Coupon 5.05%, Secured Debt (Maturity - June 7, 2023)2,777
2,813
2,793
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - July 1, 2024)1,990
1,980
2,005
Ortho-Clinical Diagnostics, IncLife Sciences Tools & ServicesLIBOR (1 month) + 3.75%, Current Coupon 5.63%, Secured Debt (Maturity - June 30, 2021)1,975
1,971
1,994
PODS, LLCTransportation & LogisticsLIBOR (1 month) + 3.00%, Current Coupon 4.71%, Secured Debt (Maturity - December 6, 2024)1,990
1,989
2,006
Radiate Holdco, LLCMediaLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023)3,275
3,300
3,267
  LIBOR (1 month) + 3.00%, Current Coupon 4.88%, Secured Debt (Maturity - February 1, 2024)2,564
2,538
2,538
    5,838
5,805
Red Ventures, LLCDirect Marketing ServicesLIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - November 8, 2024)1,990
1,976
2,010
Scientific Games International, Inc.Leisure ProductsLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - August 14, 2024)899
900
903
Seattle SpinCo, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 21, 2024)2,613
2,616
2,590
SeaWorld Parks & Entertainment, Inc.Hotels, Restaurants & LeisureLIBOR (3 months) + 3.00%, Current Coupon 5.30%, Secured Debt (Maturity - April 1, 2024)1,980
1,982
1,975
Signode Industrial Group US Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 4.40%, Secured Debt (Maturity - April 30, 2021)2,733
2,750
2,735
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Golden Nugget, Inc.Hotels, Restaurants and LeisureLIBOR (1 month) + 2.75%, Current Coupon 5.19%, Secured Debt (Maturity - October 4, 2023)$1,875
$1,875
$1,811
GrafTech Finance Inc.Metals and MiningLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - February 12, 2025)1,950
1,931
1,850
Gray Television, Inc.Broadcast Radio and TelevisionLIBOR (3 months) + 2.50%, Current Coupon 4.90%, Secured Debt (Maturity - January 2, 2026)286
281
277
Greatbatch Ltd.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - October 27, 2022)2,000
2,012
1,956
GYP Holdings III Corp.Trading Companies and DistributorsLIBOR (1 month) + 2.75%, Current Coupon 5.27%, Secured Debt (Maturity - June 2, 2025)3,448
3,473
3,261
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 18, 2023)1,944
1,951
1,841
HD Supply Waterworks, Ltd.Trading Companies and DistributorsLIBOR (6 months) + 3.00%, Current Coupon 5.71%, Secured Debt (Maturity - August 1, 2024)139
138
134
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.00%, Current Coupon 5.56%, Secured Debt (Maturity - March 29, 2024)1,925
1,944
1,841
Hyland Software, Inc.SoftwareLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 1, 2024)499
485
486
IG Investments Holdings, LLCProfessional ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - May 23, 2025)1,975
1,987
1,929
Infiltrator Water Technologies, LLCSpecialty RetailLIBOR (3 months) + 3.00%, Current Coupon 5.39%, Secured Debt (Maturity - May 27, 2022)1,394
1,372
1,354
Invenergy, LLCRenewable Energy ProviderLIBOR (1 month) + 3.50%, Current Coupon 5.84%, Secured Debt (Maturity - August 28, 2025)1,946
1,941
1,932
IRB Holding Corp.Food ProductsLIBOR (1 month) + 3.25%, Current Coupon 5.68%, Secured Debt (Maturity - February 5, 2025)397
397
380
Ivanti Software, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 6.60%, Secured Debt (Maturity - January 22, 2024)983
989
959
KBR, Inc.Aerospace and DefenseLIBOR (1 month) + 3.75%, Current Coupon 6.27%, Secured Debt (Maturity - April 25, 2025)1,992
1,984
1,962
Kingpin Intermediate Holdings LLCDiversified Consumer ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - July 3, 2024)998
988
971
KUEHG Corp.Diversified Consumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.55%, Secured Debt (Maturity - February 21, 2025)2,457
2,465
2,368
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - December 1, 2023)1,970
1,989
1,923
MA FinanceCo., LLCSoftwareLIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)384
385
358
Mallinckrodt International Finance S.A.PharmaceuticalsLIBOR (6 months) + 3.00%, Current Coupon 5.62%, Secured Debt (Maturity - February 24, 2025)993
991
921
Match Group, Inc.MediaLIBOR (2 months) + 2.50%, Current Coupon 5.09%, Secured Debt (Maturity - November 16, 2022)2,000
1,998
1,990


HMS-ORIX
Loan Portfolio
As of March 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
SS&C TechnologiesSoftwareLIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025)$632
$630
$635
  LIBOR (1 month) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - February 28, 2025)225
225
227
    855
862
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 5.79%, Secured Debt (Maturity - September 12, 2024)1,995
1,990
1,980
Telenet Financing USD LLCDiversified Telecommunication ServicesLIBOR (1 month) + 2.50%, Current Coupon 4.28%, Secured Debt (Maturity - March 2, 2026)1,655
1,655
1,665
Transdigm, Inc.Aerospace & DefenseLIBOR (1 month) + 2.75%, Current Coupon 4.63%, Secured Debt (Maturity - June 9, 2023)1,980
1,987
1,988
  LIBOR (1 month) + 2.50%, Current Coupon 4.38%, Secured Debt (Maturity - August 22, 2024)998
995
1,002
    2,982
2,990
Travelport Finance (Luxembourg) S.A.R.L.Internet Software & ServicesLIBOR (3 months) + 2.50%, Current Coupon 4.40%, Secured Debt (Maturity - March 17, 2025)1,250
1,244
1,254
Traverse Midstream Partners LLCOil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024)781
784
787
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 5.13%, Secured Debt (Maturity - August 18, 2023)1,985
1,996
1,998
Ultra Resources, Inc.Oil, Gas & Consumable FuelsLIBOR (1 month) + 3.00%, Current Coupon 4.76%, Secured Debt (Maturity - April 12, 2024)2,000
2,002
1,986
Utz Quality Foods, LLCCommercial Services & SuppliesLIBOR (1 month) + 3.50%, Current Coupon 5.35%, Secured Debt (Maturity - November 21, 2024)1,600
1,599
1,619
Valeant Pharmaceuticals International, Inc.PharmaceuticalsLIBOR (1 month) + 3.50%, Current Coupon 5.24%, Secured Debt (Maturity - April 1, 2022)1,456
1,462
1,473
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - November 30, 2023)1,555
1,568
1,564
Vistra Operations Company LLCElectric UtilitiesLIBOR (1 month) + 2.25%, Current Coupon 4.06%, Secured Debt (Maturity - December 14, 2023)1,980
1,991
1,994
West CorporationDiversified Telecommunication ServicesLIBOR (1 month) + 3.50%, Current Coupon 5.40%, Secured Debt (Maturity - October 10, 2024)650
649
652
  LIBOR (1 month) + 4.00%, Current Coupon 5.88%, Secured Debt (Maturity - October 10, 2024)1,029
1,020
1,040
    1,669
1,692
WideOpenWest Finance, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.10%, Secured Debt (Maturity - August 18, 2023)3,487
3,496
3,420
Total Loan Portfolio   $140,265
$140,200



The following table presents a listing of HMS-ORIX’s individual loans as of December 31, 2017:
HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Acosta, Inc.Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 26, 2021)$2,000
$1,881
$1,766
Acrisure, LLCInsuranceLIBOR (2 months) + 4.25%, Current Coupon 5.65%, Secured Debt (Maturity - November 22, 2023)2,115
2,122
2,139
Advantage Sales & Marketing Inc.Commercial Services and SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - July 23, 2021)1,990
1,938
1,945
Air Medical Group Holdings IncHealth Care Providers & ServicesLIBOR (6 months) + 4.00%, Current Coupon 5.67%, Secured Debt (Maturity - April 28, 2022)1,990
1,981
1,993
Albany Molecular Research, Inc.Life Sciences Tools & ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 28, 2024)100
100
99
Alphabet Holding Company, Inc.Food ProductsLIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - September 26, 2024)1,995
1,985
1,935
American Seafoods Group LLCFood ProductsPrime + 2.25%, Current Coupon 6.75%, Secured Debt (Maturity - August 21, 2023)1,500
1,493
1,513
Ancestry.com Operations Inc.Internet Software & ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 19, 2023)1,995
2,013
2,007
Arch Coal, Inc.Metals & MiningLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - March 7, 2024)1,985
1,992
2,004
AshCo, Inc.Specialty RetailLIBOR (3 months) + 5.00%, Current Coupon 6.57%, Secured Debt (Maturity - September 25, 2024)1,995
1,951
1,993
Asurion, LLCInsuranceLIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - November 3, 2023)1,312
1,312
1,320
Atkore International, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 3.00%, Current Coupon 4.70%, Secured Debt (Maturity - December 22, 2023)2,977
3,005
2,999
BCP Renaissance Parent L.L.C.Oil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.38%, Secured Debt (Maturity - October 31, 2024)600
602
608
BMC Software Finance, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - September 12, 2022)3,156
3,181
3,163
Builders FirstSource, Inc.Building ProductsLIBOR (1 month) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - February 29, 2024)2,977
2,974
2,993
Calpine CorporationIndependent Power and Renewable Electricity ProducersLIBOR (3 months) + 2.50%, Current Coupon 4.20%, Secured Debt (Maturity - January 15, 2023)1,990
1,997
1,991
CHS/Community Health Systems, Inc.Health Care Providers & ServicesLIBOR (3 months) + 3.00%, Current Coupon 4.48%, Secured Debt (Maturity - January 27, 2021)1,613
1,608
1,543
ClubCorp Holdings, Inc.Real Estate Management & DevelopmentLIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - September 18, 2024)1,959
1,949
1,969
Colorado Buyer IncTechnology Hardware, Storage & PeripheralsLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - May 1, 2024)2,985
2,995
3,008
Confie Seguros Holding II Co.InsuranceLIBOR (1 month) + 5.25%, Current Coupon 6.73%, Secured Debt (Maturity - April 19, 2022)1,985
1,992
1,987
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
McAfee, LLCSoftwareLIBOR (3 months) + 3.75%, Current Coupon 6.10%, Secured Debt (Maturity - September 30, 2024)$948
$933
$925
McDermott International, Inc.Construction and EngineeringLIBOR (1 month) + 5.00%, Current Coupon 7.52%, Secured Debt (Maturity - May 12, 2025)993
973
929
Metro-Goldwyn-Mayer Inc.MediaLIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - July 3, 2025)998
970
964
Michaels Stores, Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 4.97%, Secured Debt (Maturity - January 30, 2023)1,000
973
960
Micro Holding Corp. (MH Sub and Internet Brands)MediaLIBOR (1 month) + 3.75%, Current Coupon 6.25%, Secured Debt (Maturity - September 13, 2024)1,247
1,217
1,186
Mohegan Tribal Gaming AuthorityHotels, Restaurants and LeisureLIBOR (1 month) + 4.00%, Current Coupon 6.52%, Secured Debt (Maturity - October 13, 2023)1,914
1,933
1,719
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (1 month) + 3.25%, Current Coupon 5.57%, Secured Debt (Maturity - June 7, 2023)2,664
2,702
2,532
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.00%, Current Coupon 5.80%, Secured Debt (Maturity - July 1, 2024)1,975
1,965
1,885
Ortho-Clinical Diagnostics, IncLife Sciences Tools and ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.76%, Secured Debt (Maturity - June 30, 2025)1,945
1,940
1,809
Packaging Coordinators Midco IncHealth Care Facilities and ServicesLIBOR (3 months) + 4.00%, Current Coupon 6.81%, Secured Debt (Maturity - June 30, 2023)997
992
985
Party City Holdings Inc.Specialty RetailLIBOR (1 month) + 2.50%, Current Coupon 5.03%, Secured Debt (Maturity - August 19, 2022)1,245
1,224
1,205
PI UK Holdco II LimitedDiversified Financial ServicesLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - January 3, 2025)2,978
2,956
2,893
Prime Security Services, LLC (Protection One)Commercial Services and SuppliesLIBOR (1 month) + 2.75%, Current Coupon 5.09%, Secured Debt (Maturity - May 2, 2022)654
638
628
Rackspace Hosting, Inc.Electric Equipment, Instruments and ComponentsLIBOR (3 months) + 3.00%, Current Coupon 5.58%, Secured Debt (Maturity - November 3, 2023)3,251
3,276
2,884
Radiate Holdco, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - February 1, 2024)2,544
2,519
2,408
Red Ventures, LLCProfessional ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.52%, Secured Debt (Maturity - November 8, 2024)1,631
1,619
1,590
Savage Enterprises, LLCRoad and RailLIBOR (1 month) + 4.50%, Current Coupon 6.88%, Secured Debt (Maturity - August 1, 2025)1,097
1,076
1,085
Scientific Games International, Inc.Leisure ProductsLIBOR (2 months) + 2.75%, Current Coupon 5.25%, Secured Debt (Maturity - August 14, 2024)892
893
840
Seattle SpinCo, Inc.SoftwareLIBOR (3 months) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 21, 2024)2,593
2,597
2,422
SeaWorld Parks & Entertainment, Inc.Hotels, Restaurants and LeisureLIBOR (3 months) + 3.75%, Current Coupon 6.07%, Secured Debt (Maturity - April 1, 2024)1,965
1,967
1,881
ServiceMaster Global Holdings, Inc.Home and Office ProductsLIBOR (1 month) + 2.50%, Current Coupon 4.84%, Secured Debt (Maturity - November 8, 2023)2,000
1,993
1,964


HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
CPI International, Inc.Aerospace & DefenseLIBOR (1 month) + 3.50%, Current Coupon 5.07%, Secured Debt (Maturity - July 26, 2024)$1,995
$1,995
$2,011
Diamond Resorts International, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 4.50%, Current Coupon 6.07%, Secured Debt (Maturity - September 1, 2023)2,152
2,179
2,173
Duff & Phelps CorporationDiversified Financial ServicesLIBOR (3 months) + 3.25%, Current Coupon 4.94%, Secured Debt (Maturity - October 15, 2024)491
494
493
  LIBOR (3 months) + 3.25%, Current Coupon 4.63%, Secured Debt (Maturity - December 4, 2024)2,728
2,724
2,737
   3,219
3,218
3,230
EFS Cogen Holdings I LLCElectric UtilitiesLIBOR (3 months) + 3.25%, Current Coupon 4.95%, Secured Debt (Maturity - June 28, 2023)1,904
1,917
1,925
Encapsys LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - November 7, 2024)1,000
1,001
1,006
Endo Luxembourg Finance Company I S.a.r.l.PharmaceuticalsLIBOR (1 month) + 4.25%, Current Coupon 5.88%, Secured Debt (Maturity - April 29, 2024)1,990
2,009
2,005
Envision Healthcare CorporationHealth Care Providers & ServicesLIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - December 1, 2023)2,481
2,481
2,491
Everi Payments Inc.Leisure ProductsLIBOR (3 months) + 3.50%, Current Coupon 4.98%, Secured Debt (Maturity - May 9, 2024)1,990
1,983
2,013
Exgen Renewables IV, LLCElectrical ProductionLIBOR (3 months) + 3.00%, Current Coupon 4.47%, Secured Debt (Maturity - November 29, 2024)300
299
304
First American Payment Systems, L.P.Diversified Financial ServicesLIBOR (1 month) + 5.75%, Current Coupon 7.14%, Secured Debt (Maturity - January 5, 2024)952
963
958
Fitness International, LLCHotels, Restaurants & LeisureLIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - July 1, 2020)1,735
1,757
1,760
Flex Acquisition Company IncContainers & PackagingLIBOR (3 months) + 3.00%, Current Coupon 4.34%, Secured Debt (Maturity - December 29, 2023)1,995
2,004
2,008
Flexera Software LLCSoftwareLIBOR (1 month) + 3.50%, Current Coupon 4.83%, Secured Debt (Maturity - April 2, 2020)1,995
2,013
2,008
Gardner Denver, Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 4.44%, Secured Debt (Maturity - July 30, 2024)1,995
2,005
2,004
Golden Nugget, Inc.Hotels, Restaurants & LeisureLIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 4, 2023)1,990
1,990
2,008
Greatbatch Ltd.Health Care Equipment & SuppliesLIBOR (1 month) + 3.25%, Current Coupon 4.66%, Secured Debt (Maturity - October 27, 2022)2,763
2,780
2,788
GYP Holdings III Corp.Trading Companies & DistributorsLIBOR (1 month) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - March 31, 2023)3,483
3,506
3,502
Harbor Freight Tools USA, Inc.Specialty RetailLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - August 18, 2023)1,980
1,987
1,996
HD Supply Waterworks, Ltd.Trading Companies & DistributorsLIBOR (6 months) + 3.00%, Current Coupon 4.46%, Secured Debt (Maturity - August 1, 2024)140
140
141
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Sprint CorporationDiversified Telecommunication ServicesLIBOR (1 month) + 3.00%, Current Coupon 5.38%, Secured Debt (Maturity - February 2, 2024)$500
$493
$485
SRS Distribution Inc.Trading Companies and DistributorsLIBOR (3 months) + 3.25%, Current Coupon 5.77%, Secured Debt (Maturity - May 23, 2025)1,197
1,194
1,120
SS&C European Holdings S.a.r.l.SoftwareLIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)206
205
195
SS&C Technologies, Inc.SoftwareLIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - April 16, 2025)543
541
514
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 6.54%, Secured Debt (Maturity - September 12, 2024)1,980
1,975
1,903
Starfruit US Holdco LLCChemicalsLIBOR (1 month) + 3.25%, Current Coupon 5.60%, Secured Debt (Maturity - October 1, 2025)1,250
1,247
1,204
Telenet Financing USD LLCDiversified Telecommunication ServicesLIBOR (1 month) + 2.25%, Current Coupon 4.71%, Secured Debt (Maturity - August 17, 2026)1,655
1,653
1,580
Transdigm, Inc.Aerospace and DefenseLIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - June 9, 2023)1,965
1,972
1,859
  LIBOR (1 month) + 2.50%, Current Coupon 5.02%, Secured Debt (Maturity - August 22, 2024)990
988
937
   2,955
2,960
2,796
Travelport Finance (Luxembourg) S.A.R.L.Internet Software and ServicesLIBOR (3 months) + 2.50%, Current Coupon 5.12%, Secured Debt (Maturity - March 17, 2025)1,237
1,231
1,219
Traverse Midstream Partners LLCOil, Gas and Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 6.60%, Secured Debt (Maturity - September 27, 2024)781
784
752
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 5.78%, Secured Debt (Maturity - August 18, 2023)1,965
1,977
1,920
USS Ultimate Holdings, Inc. (United Site)Consumer ServicesLIBOR (1 month) + 3.75%, Current Coupon 6.09%, Secured Debt (Maturity - August 26, 2024)598
590
590
Utz Quality Foods, LLCFood ProductsLIBOR (1 month) + 3.50%, Current Coupon 6.02%, Secured Debt (Maturity - November 21, 2024)1,584
1,583
1,539
VeriFone Systems, Inc.HardwareLIBOR (1 month) + 4.00%, Current Coupon 6.64%, Secured Debt (Maturity - August 20, 2025)500
490
485
Vertafore, Inc.SoftwareLIBOR (1 month) + 3.25%, Current Coupon 6.05%, Secured Debt (Maturity - July 2, 2025)2,500
2,488
2,384
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 6.71%, Secured Debt (Maturity - November 30, 2023)1,555
1,570
1,420
Vistra Operations Company LLCElectric UtilitiesLIBOR (1 month) + 2.25%, Current Coupon 4.77%, Secured Debt (Maturity - December 14, 2023)1,965
1,977
1,895
Web.Com Group, Inc.Internet Software and ServicesLIBOR (3 months) + 3.75%, Current Coupon 6.17%, Secured Debt (Maturity - October 10, 2025)1,000
1,000
965
      


HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Horizon Pharma, Inc.PharmaceuticalsLIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - March 29, 2024)$1,990
$2,009
$2,001
IG Investments Holdings, LLCProfessional ServicesLIBOR (1 month) + 3.50%, Current Coupon 5.19%, Secured Debt (Maturity - October 29, 2021)1,990
2,002
1,992
Jackson Hewitt Tax Service Inc.Diversified Financial ServicesLIBOR (1 month) + 7.00%, Current Coupon 8.38%, Secured Debt (Maturity - July 30, 2020)1,939
1,868
1,922
KMG Chemicals, Inc.ChemicalsLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 17, 2024)863
859
868
KUEHG Corp.Educational ServicesLIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - August 12, 2022)2,482
2,489
2,493
LANDesk Group, Inc.SoftwareLIBOR (1 month) + 4.25%, Current Coupon 5.82%, Secured Debt (Maturity - January 22, 2024)993
999
947
Learfield Communications LLCMediaLIBOR (1 month) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - December 1, 2023)1,990
2,009
2,007
MA FinanceCo., LLCElectric Equipment, Instruments & ComponentsLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024)387
387
388
Mohegan Tribal Gaming AuthorityHotels, Restaurants & LeisureLIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - October 13, 2023)1,985
2,003
2,006
MPH Acquisition Holdings LLCHealth Care TechnologyLIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - June 7, 2023)2,896
2,935
2,905
NAB Holdings, LLCIT ServicesLIBOR (3 months) + 3.25%, Current Coupon 4.82%, Secured Debt (Maturity - July 1, 2024)1,990
1,981
2,000
Ortho-Clinical Diagnostics, IncLife Sciences Tools & ServicesLIBOR (1 month) + 3.75%, Current Coupon 5.44%, Secured Debt (Maturity - June 30, 2021)1,985
1,980
1,992
PODS, LLCTransportation & LogisticsLIBOR (1 month) + 3.00%, Current Coupon 4.40%, Secured Debt (Maturity - December 6, 2024)1,995
1,994
2,010
Rackspace Hosting, Inc.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - November 3, 2023)3,284
3,309
3,286
Radiate Holdco, LLCMediaLIBOR (3 months) + 3.00%, Current Coupon 4.38%, Secured Debt (Maturity - February 1, 2024)2,570
2,544
2,547
Red Ventures, LLCDirect Marketing ServicesLIBOR (1 month) + 4.00%, Current Coupon 5.57%, Secured Debt (Maturity - November 8, 2024)1,995
1,981
1,996
Scientific Games International, Inc.Leisure ProductsLIBOR (1 month) + 3.25%, Current Coupon 4.67%, Secured Debt (Maturity - August 14, 2024)399
401
403
Seattle Spin Co.Electric Equipment, Instruments & ComponentsLIBOR (3 months) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 21, 2024)2,613
2,616
2,618
SeaWorld Parks & Entertainment, Inc.Hotels, Restaurants & LeisureLIBOR (3 months) + 3.00%, Current Coupon 4.69%, Secured Debt (Maturity - April 1, 2024)1,985
1,987
1,966
Signode Industrial Group US Inc.MachineryLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - April 30, 2021)2,773
2,792
2,785
Staples, Inc.DistributorsLIBOR (3 months) + 4.00%, Current Coupon 5.49%, Secured Debt (Maturity - September 12, 2024)2,000
1,995
1,965


HMS-ORIX
Loan Portfolio
As of December 31, 2017
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
Telenet Financing USD LLCDiversified Telecommunications ServicesLIBOR (1 month) + 2.50%, Current Coupon 3.92%, Secured Debt (Maturity - March 2, 2026)1,655
1,655
1,663
Transdigm, Inc.Aerospace & DefenseLIBOR (1 month) + 2.75%, Current Coupon 4.32%, Secured Debt (Maturity - June 9, 2023)1,985
1,992
1,990
  LIBOR (1 month) + 3.00%, Current Coupon 4.57%, Secured Debt (Maturity - August 22, 2024)1,000
998
1,006
   2,985
2,990
2,996
Travelport Finance (Luxembourg) S.A.R.L.Internet Software & ServicesLIBOR (3 months) + 2.75%, Current Coupon 4.17%, Secured Debt (Maturity - September 2, 2021)1,901
1,901
1,903
Traverse Midstream Partners LLCOil, Gas & Consumable FuelsLIBOR (3 months) + 4.00%, Current Coupon 5.85%, Secured Debt (Maturity - September 27, 2024)781
784
793
UFC Holdings, LLCMediaLIBOR (3 months) + 3.25%, Current Coupon 4.81%, Secured Debt (Maturity - August 18, 2023)1,990
2,002
2,003
Ultra Resources, Inc.Oil, Gas & Consumable FuelsLIBOR (1 month) + 3.00%, Current Coupon 4.41%, Secured Debt (Maturity - April 12, 2024)2,000
2,002
2,002
Utz Quality Foods, LLCCommercial Services and SuppliesLIBOR (1 month) + 3.50%, Current Coupon 5.01%, Secured Debt (Maturity - November 21, 2024)1,600
1,599
1,616
Valeant Pharmaceuticals International, Inc.PharmaceuticalsLIBOR (1 month) + 3.50%, Current Coupon 4.94%, Secured Debt (Maturity - April 1, 2022)1,546
1,553
1,570
Vertiv Group CorporationElectrical EquipmentLIBOR (3 months) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - November 30, 2023)1,555
1,569
1,556
Vistra Operations Company LLCElectric UtilitiesLIBOR (2 months) + 2.75%, Current Coupon 4.08%, Secured Debt (Maturity - December 14, 2023)1,985
1,996
2,001
West CorporationDiversified Telecommunications ServicesLIBOR (1 month) + 4.00%, Current Coupon 5.35%, Secured Debt (Maturity - October 10, 2024)1,032
1,022
1,036
WideOpenWest Finance, LLCDiversified Telecommunications ServicesLIBOR (1 month) + 3.25%, Current Coupon 4.75%, Secured Debt (Maturity - August 18, 2023)3,496
3,506
3,470
Total Loan Portfolio   $139,017
$139,012
HMS-ORIX
Loan Portfolio
As of December 31, 2018
(dollars in thousands)
Portfolio CompanyIndustryType of InvestmentPrincipalCostFair Value
      
West CorporationDiversified Telecommunication ServicesLIBOR (3 months) + 3.50%, Current Coupon 6.03%, Secured Debt (Maturity - October 10, 2024)$647
$646
$593
  LIBOR (3 months) + 4.00%, Current Coupon 6.53%, Secured Debt (Maturity - October 10, 2024)1,021
1,011
941
   1,668
1,657
1,534
WideOpenWest Finance, LLCDiversified Telecommunication ServicesLIBOR (1 month) + 3.25%, Current Coupon 5.72%, Secured Debt (Maturity - August 18, 2023)3,461
3,471
3,215
William Morris Endeavor Entertainment, LLCRecreation Facilities and ServicesLIBOR (3 months) + 2.75%, Current Coupon 5.28%, Secured Debt (Maturity - May 16, 2025)638
608
608
Zekelman Industries, IncManufactured GoodsLIBOR (1 month) + 2.25%, Current Coupon 4.86%, Secured Debt (Maturity - June 14, 2021)1,000
985
970
Total Loan Portfolio  $165,025
$164,570
$157,923

For the three months ended March 31, 2019 and 2018, we accruedrecognized approximately $546,000 and $525,000, respectively, of dividend income in respect of our investment in HMS-ORIX.



The following tables show the summarized financial information for HMS-ORIX (dollars in thousands):
HMS-ORIX SLF LLC
Balance Sheet (Unaudited)
Balance SheetBalance Sheet
(dollars in thousands)
      
As of March 31, 2018 As of December 31, 2017As of March 31, 2019 As of December 31, 2018
Assets      
Portfolio investments at fair value (amortized cost: $140,265 and $139,017 as of March 31, 2018 and December 31, 2017, respectively)$140,200
 $139,012
Portfolio investments at fair value (amortized cost: $169,827 and $164,570 as of March 31, 2019 and December 31, 2018, respectively)$167,819
 $157,923
Cash and cash equivalents4,943
 2,681
7,440
 3,873
Receivable for securities sold
 
Interest receivable314
 306
297
 197
Deferred financing costs, net793
 890
400
 497
Other assets
 15
4
 30
Total assets$146,250
 $142,904
$175,960
 $162,520
Liabilities      
Credit facilities payable$91,300
 $86,500
$123,130
 $98,818
Payable for securities purchased3,020
 5,268
1,987
 18,442
Distributions payable875
 
911
 902
Accounts payable and accrued expenses80
 64
996
 439
Total liabilities95,275
 91,832
127,024
 118,601
Net assets      
Members’ equity50,975
 51,072
48,936
 43,919
Total net assets50,975
 51,072
48,936
 43,919
Total liabilities and net assets$146,250
 $142,904
$175,960
 $162,520



HMS-ORIX SLF LLC
Statement of Operations (Unaudited)
Statement of OperationsStatement of Operations
(dollars in thousands)
Three Months Ended
Three Months Ended 
 March 31, 2018
March 31, 2019 March 31, 2018
Investment income    
Interest income$1,734
$2,548
 $1,734
Dividend income

 
Fee income

 
Other income

 
Total investment income1,734
2,548
 1,734
Expenses    
Interest expense850
1,247
 850
Other expenses

 
General and administrative expenses21
11
 21
Total expenses871
1,258
 871
Net investment income863
1,290
 863
Net realized (loss) from investments(26)
Net realized loss from investments(1) (26)
Net realized income837
1,289
 837
Net change in unrealized (depreciation) on investments(59)
Net change in unrealized appreciation (depreciation) on investments4,639
 (59)
Net increase in net assets resulting from operations$778
$5,928
 $778



PORTFOLIO ASSET QUALITY
  
As of March 31, 2018,2019, we owned a broad portfolio of 179201 investments in 124128 companies representing a wide range of industries. We believe that this broad portfolio adds to the structural protection of the portfolio, revenue sources, income, cash flows and dividends. The portfolio included the following:

5144 debt investments in 4742 Middle Market portfolio companies with an aggregate fair value of approximately $498.6$396.5 million and a cost basis of approximately $512.1$420.2 million. The Middle Market debt investments had a weighted average annual effective yield of approximately 8.9%9.9%, which is calculated assuming the investments on non-accrual status are non-yielding,have a zero yield, and 83.3%82.9% of the Middle Market debt investments were secured by first priority liens. Further, 92.5%96.3% of the Middle Market debt investments contain variable interest rates, though a majority of the investments with variable rates are subject to contractual minimum base interest rates between 100 and 150 basis points.

4049 debt investments in 3945 Private Loan portfolio companies with an aggregate fair value of approximately $345.4$418.6 million and a cost basis of approximately $346.6$419.3 million. The Private Loan debt investments had a weighted average annual effective yield of approximately 9.6%10.4%, which is calculated assuming the investments on non-accrual status are non-yielding,have a zero yield, and 93.6%91.0% of the Private Loan debt investments were secured by first priority liens. Further, 95.7%94.8% of the Private Loan debt investments contain variable interest rates, though a majority of the investments with variable interest rates are subject to contractual minimum base interest rates between 100 and 150 basis points.

3138 debt investments in 2730 LMM portfolio companies with an aggregate fair value of approximately $102.6$134.1 million and a cost basis of approximately $103.4$134.5 million. The LMM debt investments had a weighted average annual effective yield of approximately 12.6%12.5%, and 100.0% of the debt investments were secured by first priority liens. Also, 40.8%51.8% of the LMM debt investments are fixed rate investments with fixed interest rates between 8.0% and 16.0%. Also, 26 LMM debt investments, representing approximately 59.2%48.2% of the LMM debt investments have variable interest rates subject to a contractual minimum base interest rate of 100 basis points.

5063 equity investments and seven equity warrant investments in 2729 LMM portfolio companies, nine11 Private Loan portfolio companies, fourfive Middle Market portfolio companies and fivesix Other Portfolio companies with an aggregate fair value of approximately $121.0$160.8 million and a cost basis of approximately $109.9$139.5 million.

Overall, as of March 31, 2018,2019, our investment portfolio had a weighted average effective yield on our investments of approximately 8.9%9.6%, and 78.8%76.0% of our total portfolio’s investment compositioninvestments (including our Other Portfolio investments) waswere secured by first priority liens.

As of March 31, 2018,2019, we had fivefour investments in fourtwo portfolio companies that were on non-accrual status, which comprised approximately 0.9%0.1% of our total investment portfolio at fair value and 2.2%0.4% of the total investment portfolio at cost. As of


December 31, 2017,2018, we had fourfive investments in three portfolio companies that were on non-accrual status, which comprised approximately 0.2%0.4% of the total investment portfolio at fair value and 0.9%0.6% of the total investment portfolio at cost. For those investments in which S&P credit ratings are available, which represents approximately 33.1%29.0% of the portfolio as of March 31, 2018,2019, the portfolio had a weighted average effective credit rating of B.

We utilize a rating system developed by our Sub-Adviser to rate the performance of each of our LMM portfolio company.companies. The investment rating system takes into consideration various factors, including each investment’s expected level of returns, collectability, comparisons to competitors and other industry participants, and the portfolio company’s future outlook.

Investment Rating 1 represents a LMM portfolio company that is performing in a manner which significantly exceeds expectations.
Investment Rating 2 represents a LMM portfolio company that, in general, is performing above expectations.
Investment Rating 3 represents a LMM portfolio company that is generally performing in accordance with expectations. All new LMM portfolio investments receive an initial Investment Rating 3.
Investment Rating 4 represents a LMM portfolio company that is underperforming expectations, requiring increased monitoring and scrutiny by us.
Investment Rating 5 represents a LMM portfolio company that is significantly underperforming, requiring heightened levels of monitoring and scrutiny by us and involves the recognition of significant unrealized depreciation on such investment.



The following table shows the distribution of our LMM portfolio investments on the 1 to 5 investment rating scalesystem of our Sub-Adviser at fair value as of March 31, 20182019 and December 31, 20172018 (dollars in thousands):
 March 31, 2018 December 31, 2017 March 31, 2019 December 31, 2018
Investment Rating Investments at Fair Value Percentage of Total LMM Portfolio Investments at Fair Value Percentage of Total LMM Portfolio Investments at Fair Value Percentage of Total LMM Portfolio Investments at Fair Value Percentage of Total LMM Portfolio
1 $15,353
 9.7% $2,940
 2.2% $58,578
 27.0% $56,937
 27.1%
2 34,130
 21.4
 47,155
 34.8
 8,905
 4.1
 15,038
 7.1
3 104,053
 65.3
 79,655
 58.7
 136,478
 62.8
 124,397
 59.2
4 5,460
 3.4
 5,439
 4.0
 9,886
 4.6
 10,718
 5.1
5 358
 0.2
 468
 0.3
 3,332
 1.5
 3,184
 1.5
Total $159,354
 100.0% $135,657
 100.0% $217,179
 100.0% $210,274
 100.0%
 
Based upon thethis investment rating system, the weighted average rating of our LMM portfolio at fair value was approximately 2.6 and 2.72.5 as of both March 31, 20182019 and December 31, 20172018, respectively..
 
DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
 
RESULTS COMPARISONS FOR THE THREE MONTHS ENDED MARCH 31, 20182019 AND MARCH 31, 20172018

Total Investment Income, Operating Expenses, Net Assets
 
For the three months ended March 31, 20182019 and 2017,2018, our total investment income was approximately $26.6$29.2 million and $25.4$24.0 million, respectively, consisting predominately of interest income and dividend income. The increase in total investment income was primarily driven by an increase in interest income of approximately $4.0 million and an increase in dividend income of approximately $1.1 million. The increase in interest income was primarily due to an increase in the weighted average annual effective yield on investments. As of March 31, 2018,2019, the portfolio had a weighted average annual effective yield on investments of approximately 8.9%, which was unchanged9.6% compared to 8.9% as of March 31, 2017,2018. The increase in the weighted average annual effective yield is largely due to higher yielding Private Loan and our average investment portfolio for the three months ended March 31, 2018 was $1,058.5 million compared to $974.2 million for the three months ended March 31, 2017. Additionally,Middle Market investments during the three months ended March 31, 2018 and 2017, we accreted approximately $4.8 million and $4.1 million, respectively, of unearned2019 compared to the three months ended March 31, 2018. Dividend income into interest income. The increase in interest income wasincreased primarily due to (i) the growth in our total portfolio resulting from the investment of additional equity capital raised and borrowings under our amended and restated senior secured revolving credit facility (the “EverBank Credit Facility”) entered into by us, HMS Equity Holding, LLC and HMS Equity Holding II, Inc., our wholly owned subsidiaries, with EverBank Commercial Finance, Inc. as administrative agent and certain financial institutions as lenders, and the amended and restated credit agreement entered into by HMS Funding I, LLC, our wholly owned subsidiary, with Deutsche Bank AG, New York Branch as administrative agent (the “Deutsche Bank Credit Facility,” and, together with our EverBank Credit Facility, the “Credit Facilities”) and (ii) acceleration of the accretion of original issuance discounts primarily resulting from principal repayments on and salesimproving performance of certain portfolioof our Lower Middle Market equity investments. We believe further increases in investment income in future periods may arise due to (i) a growing base of portfolio company investments and (ii) investments being held for the entire period relative to incremental net investment activity during each quarter. For information on the Credit Facilities, see Note 5 - Borrowings to our condensed consolidated financial statements included elsewhere in this report.

For the three months ended March 31, 20182019 and 2017,2018, we recognized $334,000$361,000 and $785,000,$334,000, respectively, of non-recurring fee income received from our portfolio companies or other third parties, which accounted for approximately 1.3%1.2% and 3.1%1.4%, respectively, of our total investment income during such period.  Such fee income is transaction based and typically consists of prepayment fees, structuring fees, amendment and consent fees and other non-recurring fees. As such, future fee income is generally dependent on new direct origination investments and the occurrence of prepayments and other events at existing portfolio companies resulting in such fees.
 


For the three months ended March 31, 20182019 and 2017,2018, expenses, net of incentive fee and administrative services expense waivers, were approximately $11.8$15.3 million and $10.2$11.8 million, respectively. The increase in expenses is primarily due to (i) an increase in interest expense of $1.1$2.0 million and (ii) an increase in base management fees and incentive fees (net of fee waivers) of $544,000.$1.4 million. Interest expense increased primarily due to an increase in our average borrowings of approximately $44.5$60.5 million during the period and an increase in our cost of borrowing on the Credit Facilities and an increase in the annualized interest rate on our borrowings.Facilities. Average borrowings under the Credit Facilities were $504.5 million for the three months ended March 31, 2019 compared to $444.0 million for the three months ended March 31, 2018. As of March 31, 2019 and 2018, compared to $399.5the annualized interest rate on borrowings was 5.1% and 4.4%, respectively. For the three months ended March 31, 2019, the Advisers earned a $1.4 million subordinated incentive fee on income, while no such fee was earned for the three months ended March 31, 2017. As of2018.

For the three months ended March 31, 2018 and 2017,2019, the annualized interest rate on our borrowings was 4.4% and 3.7%, respectively. Base management fees and incentive fees (net of fee waivers) increased primarily due to annet increase in our average gross assets.net assets resulting from operations (gross of stockholder distributions declared) was approximately $18.8 million. The increase was attributable to (i) net investment income of approximately $13.9 million and (ii) net unrealized appreciation on investments of approximately $12.1 million, offset by realized losses on investments of approximately $7.1 million.

For the three months ended March 31, 2018, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $15.6 million. The increase was attributable to (i) net investment income of


approximately $14.9$12.2 million and (ii) net change in unrealized appreciation on investments of approximately $10.6 million, offset by net realized losses on investments of approximately $9.9 million.

For the three months ended March 31, 2017, the net increase in net assets resulting from operations (gross of stockholder distributions declared) was approximately $13.3 million. The increase was primarily attributable to (i) net investment income of approximately $15.1 million and (ii) net realized gains of approximately $2.6 million, offset by net change in unrealized depreciation on investments of approximately $4.5$7.2 million.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Overview

As of March 31, 2018,2019, we had approximately $24.5$18.3 million in cash and cash equivalents, which we held in various custodial accounts. In addition, as of March 31, 2018,2019, we had $112.0$70.0 million in capacity available under the Credit Facilities.Facilities, in the aggregate. To seek to enhance our returns, we intend to continue to employ leverage as market conditions permit and at the discretion of our Adviser, but in no event will leverage employed exceed 50% of the value of our assets, the maximum we are allowedsubject to borrowasset coverage restrictions under the 1940 Act. See “Financial Condition, Liquidity and Capital Resources - Financing Arrangements.

As of March 31, 2018,2019, we had 33 senior secured loan investments and four equity investments with aggregate unfunded commitments of $50.5$45.1 million. We believe that we maintain sufficient cash and cash equivalents on hand and available borrowings to fund such unfunded commitments should the need arise.

We currently generate cash primarily from interest and fees earned on our investments, principal repayments and proceeds from the sales of our investments and the net proceeds of the issuance of shares under our distribution reinvestment plan.

Prior to investing in securities of portfolio companies, we invest the net proceeds from the issuance of shares of common stock under our distribution reinvestment plan and from sales and pay-downs of existing investments primarily in cash, cash equivalents, U.S. government securities, repurchase agreements and high-quality debt instruments maturing in one year or less from the time of investment, consistent with our BDC election and our election to be taxed as a RIC. 

Liquidity and Capital Resources
 
Cash Flows

For the three months ended March 31, 2019, we experienced a net decrease in cash and cash equivalents of approximately $3.4 million. During that period, approximately $19.4 million of cash was generated from our operating activities, which principally consisted of principal repayments from and sales of investments in portfolio companies of $39.0 million and a net increase in net assets resulting from operations of approximately $18.8 million, offset by the purchase of new portfolio investments of $34.2 million. During the three months ended March 31, 2019, approximately $22.9 million was used in financing activities, which principally consisted of a net $9.0 million decrease in borrowings under the Credit Facilities, $6.6 million used for the redemption of our common stock and $7.2 million in cash distributions paid to stockholders.

For the three months ended March 31, 2018, we experienced a net decrease in cash and cash equivalents of approximately $21.3 million. During that period, approximately $32.9 million of cash was used in our operating activities, which principally consisted of the purchase of new portfolio investments of $181.8 million, offset by principal repayments from and sales of investments in portfolio companies of $133.0 million and a net increase in net assets resulting from operations of approximately $15.6 million. During the three months ended March 31, 2018, approximately $11.6 million was generated from financing activities, which principally consisted of a net $28.0 million increase in borrowings under the Credit Facilities, offset by $6.9 million in cash distributions paid to stockholders and $9.4 million in cash used for the redemption of our common stock.

For the three months ended March 31, 2017, we experienced a net increase in cash and cash equivalents of approximately $17.7 million. During that period, approximately $39.2 million of cash was generated from our operating activities, which principally consisted of a net increase in net assets resulting from operations of approximately $13.3 million and principal repayments from and sales of investments in portfolio companies of $137.8 million, offset by the purchase of new portfolio investments of $110.9 million. During the three months ended March 31, 2017, approximately $21.5 million was used in financing activities, which principally consisted of a net $27.0 million decrease in borrowings under the Credit Facilities, $6.2 million in cash distributions paid to stockholders and $5.1 million in cash distributions used for the redemption of our common stock, offset by $17.3 million in net stock offering proceeds received.

Continuous Public Offering
 
With the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. During the three months ended March 31, 2018,2019, we raised proceeds of $6.9$6.4 million from theour distribution reinvestment plan.

During the three months ended March 31, 2017,2018, we raised proceeds of $25.8$6.9 million from the Offering, including proceeds from theour distribution reinvestment plan, and incurred $1.6 million for selling commissions and Dealer Manager fees. We also incurred an obligation for $387,000 of costs related to the Offering.


plan.

Distributions

The following table reflects the cash distributions per share that we have declared on our common stock during the three months ended March 31, 20182019 and 20172018 (dollars in thousands except per share amounts).
DistributionsDistributions
Per Share AmountPer Share Amount
2019   
Three months ended March 31, 2019$0.17
 $13,606
2018      
Three months ended March 31, 2018$0.17
 $13,803
$0.17
 $13,803
2017   
Three months ended March 31, 2017$0.17
 $12,922

On March 22, 2018,26, 2019, with the authorization of our board of directors, we declared distributions to our stockholders for the period of April 20182019 through June 2018.2019. These distributions have been, or will be, calculated based on stockholders of record each day from April 1, 20182019 through June 30, 20182019 in an amount equal to $0.00191781 per share, per day. Distributions are paid on the first business day following the completion of each month to which they relate.
 
For the years ending December 31, 2018, 2017 2016 and 2015,2016, respectively, the tax characteristics of distributions paid to shareholders were as follow (amounts in thousands):
Year Ended December 31,Year Ended December 31,
Tax Characteristics of Distributions2017 2016 20152018 2017 2016
                
Ordinary income$52,473
96.43% $44,848
93.90% $34,085
99.68%$50,274
90.56% $52,473
96.43% $44,848
93.90%
Capital gain distributions1,941
3.57
 2,913
6.10
 110
0.32
5,238
9.44
 1,941
3.57
 2,913
6.10
Total$54,414
100.00% $47,761
100.00% $34,195
100.00%$55,512
100.00% $54,414
100.00% $47,761
100.00%
The determination of the tax attributes of our distributions is made annually at the end of our taxable year, based upon our taxable income for the full taxable year and distributions paid for the full taxable year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. If we had determined the tax attributes of our distributions taxable year-to-date as of March 31, 2018,2019, 100% would be from our current and accumulated earnings and profits. However, there can be no certainty to stockholders that this determination is representative of what the actual tax attributes of our anticipated fiscal and taxable years ending December 31, 20182019 distributions to stockholders will be. The actual tax characteristics of distributions to stockholders will be reported to the Internal Revenue Service and stockholders subject to information reporting after the close of each calendar year on Form 1099-DIV.

We have adopted an “opt in” distribution reinvestment plan for our stockholders. As a result, if we make a distribution, our stockholders will receive distributions in cash unless they specifically “opt in” to the distribution reinvestment plan so as to have their cash distributions reinvested in additional shares of our common stock.
 
We may fund our cash distributions from any sources of funds legally available, including stock offering proceeds, if any, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, dividends or other distributions paid to us on account of preferred and common equity investments in portfolio companies and fee waivers from our Advisers. We have not established any limitlimits on the extent to whichamount of funds that we may use borrowings or stock offering proceedsfrom legally available sources to fundmake distributions. Our distributions may exceed our earnings, especially during the period before we have substantially invested the stock offering proceeds.earnings. As a result, a portion of the distributions we make may represent a return of capital for U.S. federal income tax purposes.
 
The timing and amount of any future distributions to stockholders are subject to applicable legal restrictions and the sole discretion of our board of directors.
 
In order to satisfy the Code’s requirements applicable to entities subject to tax as RICs, we are required to distribute substantially all of our taxable income to our stockholders on an annual basis. However, we may elect to spill over certain excess undistributed taxable income from one taxable year into the next taxable year, which may require us to incur a 4% nondeductible U.S. federal excise tax on such excess undistributed taxable income. In order to avoid the imposition of the 4% nondeductible excise tax, we


need to distribute, in respect of each calendar year dividends for U.S. federal income tax purposes of an amount at least equal to the sum of (1) 98.0% of our net ordinary income (taking into account certain deferrals and elections) for the calendar year, (2) 98.2% of our capital gain in excess of capital loss, or capital gain net income, adjusted for certain ordinary losses, generally for the one-year period ending on October 31 of such calendar year (or, if we so elect, for the calendar year) and (3) any net ordinary


income and capital gain net income for the preceding calendar years that was not distributed during such calendar years and on which we incurred no U.S. federal income tax.

Financing Arrangements

We anticipate that we will continue to fund our investment activities through existing cash, capital raised from our stock offerings, if any, proceeds from our dividend reinvestment plan and borrowings on the Credit Facilities. However, with the approval of our board of directors, we closed the Offering to new investors effective September 30, 2017. Our primary uses of funds in both the short-term and long-term are expected to be investments in portfolio companies, operating expenses and cash distributions to holders of our common stock.
 
As of March 31, 2018,2019, we had $120.0 million outstanding and $0.0 million availableno availability under our EverBankTIAA Credit Facility, and $338.0$380.0 million outstanding and $112.0$70.0 million available under the Deutsche Bank Credit Facility, both of which we estimated approximated fair value. Availability under each of the Credit Facilities is subject to certain limitations and the asset coverage restrictions under the 1940 Act. For further information on our Credit Facilities, including key terms and financial covenants, refer to Note 5 -6 — Borrowings to the consolidated financial statements included in our Annual Report on Form 10-K (as amended) for the year ended December 31, 20172018 as well as Note 5 - Borrowings to the condensed consolidated financial statements included elsewhere in this Report.
 
As a BDC, we have historically beenare able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, theThe Small Business Credit Availability Act, (the “SBCAA”) was enacted into law. The SBCAA,law in March 2018, among other things, amended the 1940 Act to reduce the asset coverage requirement applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements, obtains certain approval and, in the case of unlisted BDCs, makes an offer to repurchase shares held by its stockholders as of the date of the requisite approval. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. The Company has not requested or obtained either such approval. As of March 31, 2019 and December 31, 2018, our asset coverage ratio under BDC regulations was 227% when assuming unfunded commitments are treated as senior securities. As of December 31, 2017, our asset coverage ratio under BDC regulations was 236% when assuming unfunded commitments are treated as senior securities. As of March 31, 2018, considering these limitations, we had the ability to draw upon the entire $112.0 million of remaining capacity in the Credit Facilities.226% and 223%, respectively.

Although in the past we have been able to secure access to potential additional liquidity, through proceeds from the Offering and also by entering into the Credit Facilities, there is no assurance that equity or debt capital will be available to us in the future on favorable terms, or at all.

Related-PartyRelated Party Transactions and Agreements

We have entered into agreements with our Adviser, our Sub-Adviser and our Dealer Manager, whereby we pay certain fees and reimbursements to these entities. These included payments to our Dealer Manager for selling commissions and the Dealer Manager fee and include payments to our Adviser for reimbursement of offering costs. In addition, we make payments for certain services that include the identification, execution, and management of our investments and also the management of our day-to-day operations provided to us by our Adviser and Sub-Adviser, pursuant to various agreements that we have entered into. See Note 10 - Related Party Transactions and Arrangements to the financial statements included elsewhere in this Report for additional information regarding related party transactions.

 Contractual Obligations
 
As of March 31, 2018,2019, we had $458.0$500.0 million in borrowings outstanding under the Credit Facilities. Our EverBankTIAA Credit Facility will mature March 6, 2020, with two one-year extension options, subject to lender approval, and the Deutsche Bank Credit Facility will mature on November 20, 2022. See Note 5 - Borrowings to the financial statements included elsewhere in this Report for a description of the Credit Facilities.
 


A summary of our significant contractual payment obligations for the repayment of outstanding borrowings at March 31, 20182019 is as follows:
 Payments Due By Period (dollars in thousands)
 Total Less than 1 year 1-3 years 3-5 years After 5 years
EverBank Credit Facility(1)
$120,000
 $
 $120,000
 $
 $
Deutsche Bank Credit Facility(2)
338,000
 
 
 338,000
 
Total Credit Facilities$458,000
 $
 $120,000
 $338,000
 $
 Payments Due By Period (dollars in thousands)
 Total Less than 1 year 1-3 years 3-5 years After 5 years
TIAA Credit Facility (1)
$120,000
 $120,000
 $
 $
 $
Deutsche Bank Credit Facility (2)
380,000
 
 
 380,000
 
Total Credit Facilities$500,000
 $120,000
 $
 $380,000
 $
(1)At March 31, 2018, $0.0 million was available2019, we had no availability under our EverBankTIAA Credit Facility.
(2)At March 31, 2018, $112.02019, $70.0 million remained available under the Deutsche Bank Credit Facility; however, our borrowing ability is limited to the asset coverage ratio restrictions imposed by the 1940 Act, as discussed above.

Off-Balance Sheet Arrangements
 
AtAs of March 31, 2018,2019, we had a total of approximately $50.5$45.1 million in outstanding commitments comprised of (i) 33 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized depreciationappreciation of approximately $18,000$265,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the three months ended March 31, 2018.2019. We reasonably believe that we havemaintain sufficient assets and available borrowings to adequately cover and allow us to satisfy our outstanding unfunded commitments.commitments should the need arise. At December 31, 2017,2018, we had a total of approximately $45.4$62.5 million in outstanding commitments comprised of (i) 2836 commitments to fund revolving loans that had not been fully drawn or term loans that had not been funded and (ii) four capital commitments that had not been fully called. We recognized unrealized appreciationdepreciation of approximately $14,000$132,000 on our outstanding unfunded loan commitments and no unrealized appreciation or depreciation on our outstanding unfunded capital commitments during the year ended December 31, 2017.2018. We had equity commitments of up to $30.0 million to HMS-ORIX, which were fully funded as of March 31, 20182019 and December 31, 2017.2018.
Commitments and ContingenciesCommitments and Contingencies
(dollars in thousands)(dollars in thousands)
March 31, 2018 December 31, 2017March 31, 2019 December 31, 2018
Unfunded Loan Commitments      
Adams Publishing Group, LLC$985
 $1,735
American Nuts, LLC281
 1,266
Apex Linen Services, Inc.$403
 $403
403
 403
Arcus Hunting, LLC1,566
 976
1,374
 904
ASC Ortho Management Company, LLC750
 750
BarFly Ventures, LLC613
 613

 123
BBB Tank Services20
 
100
 200
BigName Holdings, LLC101
 101
29
 29
Boccella Precast Products, LLC285
 500
500
 500
CDHA Management, LLC2,061
 2,343
Centre Technologies Holdings, LLC600
 
Chamberlin HoldCo, LLC400
 
400
 400
Charps, LLC1,000
 1,000
1,000
 1,000
Clad-Rex Steel, LLC100
 100

 100
CTVSH, PLLC200
 200
200
 200
Datacom, LLC5
 25
Direct Marketing Solutions, Inc.400
 
400
 400
Felix Investments Holdings II LLC1,667
 1,667
DTE Enterprises, LLC750
 750
Dynamic Communities, LLC250
 250
Gamber-Johnson Holdings, LLC300
 300
300
 300
GST Autoleather Inc.
 1,281
GRT Rubber Technologies, LLC3,259
 4,125
Guerdon Modular Holdings, Inc.300
 400
400
 400
Hawk Ridge Systems, LLC400
 400

 400
Hojeij Branded Foods, Inc.1,923
 1,923
Hostway Corporation7
 7
Hunter Defense Technologies, Inc.2,832
 
HDC/HW Intermediate Holdings, Inc.180
 180
Hoover Group, Inc.1,450
 2,375
HW Temps LLC200
 200
200
 200
LaMi Products, LLC294
 294
Market Force Information, Inc.400
 400
Meisler Operating, LLC400
 400
Mystic Logistics Holdings, LLC200
 200
Implus Footcare, LLC
 44


Commitments and ContingenciesCommitments and Contingencies
(dollars in thousands)(dollars in thousands)
March 31, 2018 December 31, 2017March 31, 2019 December 31, 2018
Independent Pet Partners Intermediate Holdings, LLC$12,888
 $22,244
Jacent Strategic Merchandising, LLC441
 
KMC Acquisition, LLC500
 500
Laredo Energy VI, LP1,750
 
Market Force Information, Inc.260
 350
Meisler Operating, LLC400
 400
Mystic Logistics Holdings, LLC200
 200
New Era Technology, Inc.479
 479
NexRev, LLC$1,000
 $
1,000
 1,000
NNE Partners, LLC2,056
 5,542
NuStep, LLC300
 300
300
 300
Permian Holdco 2, Inc.
 97
PPC/Shift, LLC500
 500
Radiology Partners, Inc.5,254
 
Resolute Industrial LLC5,750
 5,750
SI East , LLC2,500
 2,500
Tedder Acquisition, LLC180
 180
Volusion LLC
 1,961
Wireless Vision Holdings, LLC2,084
 2,084

 693
Unfunded Capital Commitments      
Brightwood Capital Fund III, LP1,000
 1,000
1,000
 1,000
Brightwood Capital Fund IV, LP9,000
 9,000
5,000
 8,000
Copper Trail Energy Fund I LP2,500
 2,500
1,694
 1,754
Freeport Financial Funds4,941
 4,941
2,744
 3,942
Total$50,462
 $45,447
$45,147
 $62,537

Recent Developments and Subsequent Events
 
On May 4, 2018, we, our Adviser and our Sub-Adviser entered into a conditional income incentive fee agreement (the “First Quarter 2018 Fee Waiver Agreement”), pursuant to which, for a period from January 1, 2018 through March 31, 2018, our Advisers could waive the “subordinated incentive fee on income,” as such term is defined in the Investment Advisory Agreement, upon the occurrence of any event that, in our Advisers’ sole discretion, causes such waiver to be deemed necessary. The First Quarter 2018 Fee Waiver Agreement may require us to repay our Advisers for previously waived payments of up to 100% of our operating expenses or waived base management fees or incentive fees under certain circumstances. The previously waived fees are potentially subject to repayment by us, if at all, within a period not to exceed three years from the date of each respective fee waiver.

On April 13, 2018,12, 2019, we filed a tender offer statement on Schedule TO with the SEC to commence an offer by us to purchase, as approved by our board of directors, 1,973,729.33an estimated 796,617.07 shares of our issued and outstanding common stock, par value $0.001 per share.share, at up to approximately $6.4 million. The offer is for cash at a purchase price equal to the NAV per share to be determined within 48 hours of the repurchase date.

On May 8, 2019, HMS-ORIX Holdings I LLC, a wholly owned subsidiary of HMS-ORIX, which holds all of the investments in broadly-syndicated loans held by HMS-ORIX, was merged (the “HMS-ORIX Holdings Merger”) into Mariner CLO 7, Ltd., an exempted company incorporated under the laws of the Cayman Islands (“Mariner CLO”). In connection with the HMS-ORIX Holdings Merger, HMS-ORIX made certain distributions to its members. We used the cash proceeds it received from the HMS-ORIX Holdings Merger to purchase an aggregate principal amount of approximately $25.9 million of the “Subordinated Notes” due in 2032 issued by Mariner CLO in connection with an offering of $405.9 million aggregate principal amount of notes (the “CLO Offering”). The CLO Offering’s Subordinated Notes are unsecured obligations of Mariner CLO, junior to the secured notes, and distributions to the holders of the Subordinated Notes will be made solely from distributions on the collateral held by Mariner CLO after all other payments required to be made to the holders of the secured notes have been made. The collateral for the notes issued by the Mariner CLO consists primarily of senior secured floating rate leveraged loans made to corporate and other business entities.





Item 3.    Quantitative and Qualitative Disclosures about Market Risk.
 
Quantitative and Qualitative Disclosures about Market Risk
 
We are subject to financial market risks, in particular changes in interest rates. Changes in interest rates may affect our interest income from portfolio investments, the fair value of our fixed income investments, and our cost of funding.
 
Our interest income will be affected by changes in various interest rates, including LIBOR and prime rates, to the extent any of our debt investments include floating interest rates. We generally invest in floating rate debt instruments, meaning that the interest rate payable on such instrument resets periodically based upon changes in a specified interest rate index, typically the one-month or three-month LIBOR. As of March 31, 2018,2019, approximately 88.6%88.7% of our LMM, Private Loan, and Middle Market portfolio debt investments (based on cost) contained floating interest rates. AtAs of March 31, 2018,2019, the one-month LIBOR was approximately 1.88%2.49% and the three-month LIBOR was approximately 2.31%2.60%. However, manyMany of our investments provide that the specified interest rate index on such instruments will never fall below a level, or floor, generally between 100 and 150 basis points regardless of the level of the specified index rate, which minimizes the negative impact to our interest income that would result from a decline in index rates.

In addition, any fluctuations in prevailing interest rates may affect the fair value of our fixed rate debt instruments and result in changes in unrealized gains and losses, and may also affect a net increase or decrease in net assets resulting from operations. Such changes in unrealized appreciation and depreciation will materialize into realized gains and losses if we sell our investments before their respective debt maturity dates.

Further, because we borrow money to make investments, our net investment income is partially dependent upon the difference between the interest rate at which we invest borrowed funds and the interest rate at which we borrow funds. In periods of rising interest rates and when we have borrowed capital with floating interest rates, our interest expense will increase, which will increase our financing costs and reduce our net investment income, especially to the extent we hold fixed-rate debt investments. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.
 
The following table shows the approximate annualized increase or decrease (dollars in thousands) in the components of net investment income due to hypothetical interest rate index changes, assuming no changes in our investments and borrowings as of March 31, 2018.2019.
Change in interest rates 
Increase (Decrease) in
Interest Income
 
Increase (Decrease) in
Interest Expense
 
Net Increase (Decrease) in Net
Investment Income
 
Increase (Decrease) in
Interest Income
 
Increase (Decrease) in
Interest Expense
 
Net Increase (Decrease) in Net
Investment Income
Down 200 basis points $(12,838) $(10,000) (2,838)
Down 100 basis points $(8,174) $(4,580) $(3,594) (8,653) (5,000) (3,653)
Down 50 basis points (4,315) (2,290) (2,025) (4,380) (2,500) (1,880)
Up 50 basis points 4,328
 2,290
 2,038
 4,388
 2,500
 1,888
Up 100 basis points 8,656
 4,580
 4,076
 8,777
 5,000
 3,777
Up 200 basis points 17,312
 9,160
 8,152
 17,553
 10,000
 7,553
Up 300 basis points 25,967
 13,740
 12,227

Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowing under the Credit Facilities or other borrowings, that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.

If deemed prudent, we may use interest rate risk management techniques in an effort to minimize our exposure to interest rate fluctuations. These techniques may include various interest rate hedging activities to the extent permitted by the 1940 Act. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations. As of March 31, 2018,2019, we had not entered into any interest rate hedging arrangements.
 


Item 4.    Controls and Procedures.
 
In accordance with the Exchange Act, Rules 13a-15 and 15d-15, we carried out an evaluation, under the supervision and with the participation of management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2018,2019 to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

No change occurred in our internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act), during the three months ended March 31, 20182019 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.



PART II — OTHER INFORMATION
 
Item 1.    Legal Proceedings.
 
We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be party to certain legal proceedings, including proceedings relating to the enforcement of our rights under contracts with our portfolio companies. While the outcome of any legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material adverse effect upon our financial condition or results of operations.
 
Item 1A. Risk Factors.
 
In addition to the below risk factor and other information set forth in this report, you should carefully consider the “Risk Factors” discussed in our annual report on Form 10-K (as amended) for the year ended December 31, 20172018, which could materially affect our business, financial condition and/or operating results. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially affect our business, financial condition and/or operating results.

Recently passed legislation may allow us to incur additional leverage.

A BDC has historically been able to issue “senior securities,” including borrowing money from banks or other financial institutions, only in amounts such that its asset coverage, as defined in the 1940 Act, equals at least 200% after such incurrence or issuance. In March 2018, the SBCAA was enacted into law. The SBCAA, among other things, amended the 1940 Act to reduce the asset coverage requirements applicable to BDCs from 200% to 150% so long as the BDC meets certain disclosure requirements and obtains certain approvals. Effectiveness of the reduced asset coverage requirements to a BDC requires approval by either (1) a “required majority” (as defined in Section 57(o) of the 1940 Act) of such BDC’s board of directors with effectiveness one year after the date of such approval or (2) a majority of the votes cast at a special or annual meeting of such BDC’s stockholders at which a quorum is present, which is effective the day after such stockholder approval. In addition, as a BDC that does not have its common stock listed on a national securities exchange, we would be required to offer each stockholder of record as of the approval date of the reduced asset coverage requirement the opportunity for us to repurchase such stockholder’s shares held on such date. As a result, if we receive the relevant approval and we comply with the applicable disclosure requirements, we would be able to incur additional indebtedness, which may increase the risk of investing in us. In addition, since our base management fee is payable based upon our gross assets, which includes any borrowings for investment purposes, the base management fee expenses will increase if we incur additional leverage.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
 
Issuer Purchases of Equity Securities

Repurchases of our common stock pursuant to our tender offer are as follows:
 
Period Total Number of Shares Purchased Average Price per Share Cumulative Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
      
  
January 1, 2018 through January 31, 2018 
 $
 
 
February 1, 2018 through February 28, 2018 
 
 
 
March 1, 2018 through March 31, 2018 1,147,067.146
 8.20
 1,147,067.146
 
Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)
      
  
January 1, 2019 through January 31, 2019 
 $
 
 
February 1, 2019 through February 28, 2019 820,174.35
 7.99
 820,174.35
 
March 1, 2019 through March 31, 2019 
 
 
 
Total 820,174.35
 7.99
 820,174.35
 

Item 3.    Defaults upon Senior Securities.
 
None.
 
Item 4.    Mine Safety Disclosures.
 
Not applicable.
 


Item 5.    Other Information.
 
Not applicable.


Item 6.    Exhibits.

Exhibit No. Description
 Fourth Quarter 20172018 Conditional Income Incentive Fee Waiver Agreement, dated as of January 31, 2018,March 4, 2019, by and among the Registrant, HMS Adviser LP and MSC Adviser I, LLC (Filed as Exhibit 10.1 to the Registrant’s current report on Form 8-K, filed on January 31, 2018March 4, 2019 (File No. 814-00939) and incorporated herein by reference).
 Certification of Chief Executive Officer of the Registrant, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
 Certification of Chief Financial Officer of the Registrant, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Filed herewith).
 Certification of Chief Executive Officer and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Filed herewith).



SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  HMS INCOME FUND, INC.
    
Date:May 15, 201814, 2019By:/s/ SHERRI W. SCHUGART
   Sherri W. Schugart
   Chairman, Chief Executive Officer and President
    
Date:May 15, 201814, 2019By:/s/ RYAN T. SIMS
   Ryan T. Sims
   Chief Financial Officer and Secretary


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