HMS Decreases DRIP Price

March 3, 2020 | Luke Schmidt | Blue Vault

On February 28, 2020, HMS Income Fund, Inc. (“HMS”) decreased the price at which it issues shares of its common stock under its distribution reinvestment plan from $7.85 to $7.80, effective as of the distribution payable on March 2, 2020.  The reinvestment purchase price is determined by the Company’s board of directors such that it is (i) not less than the net asset value per share of common stock and (ii) not more than 2.5% greater than the net asset value per share.  The purpose of this decrease is to ensure that HMS does not issue shares under the distribution reinvestment plan at a price per share that is more than 2.5% greater than the net asset value per share.

HMS, a nontraded business development company, became effective in June of 2012.  Since inception and through the closing of its public offering in September of 2017, the Company raised cumulative capital of approximately $770 million.  HMS reported total assets of approximately $1.09 billion and total investments of $1.05 billion as of September 30, 2019.  The Company reported a total return through the first nine months of 2019 of 5.78%.

Source:  SEC, Blue Vault