The board of MSC Income Fund, a non-traded business development company previously known as HMS Income Fund, has declared a quarterly cash dividend of $0.10 per share. This dividend will be paid on April 1, 2021 to shareholders of record as of March 31, 2021.
The company had previously suspended dividends to its stockholders, citing the need to preserve financial flexibility and liquidity in response to the negative impacts of the COVID-19 pandemic.
“While we continue to work to improve the company’s operating results and financial condition after the impacts of the COVID-19 pandemic, we are pleased that we have significantly improved the company’s liquidity position and capital structure over the last few months and we are also pleased with how the company’s investment portfolio is performing,” said Dwayne L. Hyzak, chief executive officer.
He added, “We believe that these improvements to the company’s liquidity position and capital structure have positioned the company to continue to manage through the remaining challenges caused by the pandemic and to execute on our pipeline of attractive investment opportunities as we work to continue to improve the company’s operating results.”
Additionally, the BDC reinstated its share repurchase program. For the first repurchase beginning in April 2021, the company has determined that the total repurchase will equal 90 percent of the amount of DRIP proceeds resulting from the April 1, 2021 dividend payment.
The company has adopted an “opt in” dividend reinvestment plan for its stockholders. As a result, stockholders will receive dividends in cash unless they specifically “opt in” to the dividend reinvestment plan to have their cash dividend reinvested in additional shares of common stock.
MSC Income Fund is a specialty finance company that primarily provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.
The company was previously advised by a Hines affiliate and sub-advised by an affiliate of Main Street Capital Corporation (NYSE: MAIN). In October 2020, shareholders approved a new advisory agreement where Main Street would become the sole adviser of the fund.
The company’s initial offering ran from June 2012 until December 2015 and raised approximately $601.2 million in investor equity. It’s follow-on offering launched in May 2017 and closed in September 2017. Through September 30, 2020, the company raised approximately $250 million in the second offering, including proceeds from the distribution reinvestment plan of approximately $118.3 million. As of the third quarter of 2020, the BDC’s investment portfolio was valued at $902.7 million.