Hines BDC Launches Follow-on Offering

HMS Income Fund Inc., a non-traded business development company sponsored by Hines, launched a follow-on offering for up to $1.5 billion of common stock for $9.00 per share.

The initial minimum permitted purchase price is $2,500 in shares. Investors will pay a sales load of 10 percent and offering expenses of up to 1.5 percent.

HMS Income Fund invests primarily in senior secured term loans, second lien loans and mezzanine debt and selected equity investments issued by lower middle market and middle market companies.

Lower middle market companies generally have annual revenues between $10 million and $150 million, while middle market companies have annual revenues between $10 million and $3 billion.

The company is currently invested in 83 middle market debt investments, 20 private loan debt investments, 14 lower middle market debt investments, 16 lower middle market equity investments, two private loan equity investments and two other portfolio investments with a total value of approximately $876.7 million, a cost basis of approximately $902 million, and a weighted average effective annual yield of approximately 8.3 percent.

HMS Income Fund’s original offering was declared effective in June 2012, and through December 31, 2015, had raised approximately $611.4 million in investor equity, including the value from its initial formation transaction of $10.1 million and gross sales and distribution reinvestment plan proceeds of approximately $601.2 million