Hines BDC to Close Offering Early Next Year
The board of directors of HMS Income Fund Inc., a publicly registered non-traded business development company sponsored by Hines, has authorized the closing of the company’s continuous public offering on March 31, 2017, according to a filing with the Securities and Exchange Commission. No reason was given for the closing.
HMS Income Fund’s initial public offering went effective in June 2012 and closed in December 2015 after raising approximately $601.2 million. A $1.5 billion follow-on offering was declared effective at the beginning of 2016, and as of June 30, 2016, the company raised approximately $54.8 million in its secondary offering. Shares were originally sold for between $10.00 and $8.60 per share, and last month, the price per share increased to $8.90.
Final approval on the specific terms of the closing is retained by the board, and they may choose to accelerate the closing or continue the public offering if they determine it to be in the best interests of the company and its stockholders.
HMS Income Fund makes debt and equity investments in middle market companies, with annual revenues generally between $10 million and $3 billion, and in lower middle market companies, with annual revenues between $10 million and $150 million. As of June 30th, the company’s portfolio had a total value of approximately $930.4 million and a weighted average effective annual yield of approximately 8.4 percent.
