HMS Income Fund Reduces Reinvestment Purchase Price
June 1, 2020
On May 29, 2020, HMS Income Fund, Inc. (the “Company”) decreased the Reinvestment Purchase Price, the price at which it issues shares of common stock under its distribution reinvestment plan, a decision made by the Company’s board of directors. The price decreased from $6.55 to $6.50 and is effective as of June 1, 2020. The board, or a committee of board members, makes pricing decisions that are:
• not less than the net asset value per share of common stock determined in good faith by the Board or a committee thereof, in its sole discretion, within forty-eight hours prior to the payment of a distribution (the “NAV Per Share”) and
• not more than 2.5% greater than the NAV Per Share.
This reduction was made in a response to the current volatility of the financial markets in the wake of COVID-19, as there are no guarantees that the market conditions will not worsen and further negatively impact the Company and the NAV Per Share. 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.
Source: SEC
