HMS Income Fund Decreases DRP Price to $7.90
January 2, 2020
On January 2, 2020, HMS Income Fund, Inc. decreased the price at which it issues shares of its common stock under its distribution reinvestment plan (the “DRP”) from $7.95 to $7.90, effective as of the distribution payable on January 2, 2020. As previously disclosed by the Company, the Reinvestment Purchase Price is determined by the Company’s board of directors or a committee thereof, in its sole discretion, such that it is (i) not less than the net asset value per share of common stock determined in good faith by the Company’s board of directors or a committee thereof, in its sole discretion, within forty-eight hours prior to the payment of a distribution (the “NAV Per Share”) and (ii) not more than 2.5% greater than the NAV Per Share. The purpose of this decrease is to ensure that the Company does not issue shares under the DRP at a price per share that is more than 2.5% greater than the NAV Per Share.
HMS Income Fund, Inc., an externally managed, non-diversified, closed-end management investment company incorporated in Maryland that has elected to be regulated as a business development company )”BDC”) under the Investment Company Act of 1940, as amended, filed a tender offer to purchase up to an estimated 773,847.59 shares of its issued and outstanding common stock, at the net asset value per share as of February 19, 2020. The number of shares available to be repurchased is dependent upon the purchase price. By way of example, if calculated as of the date of this filing using the Company’s net asset value per share as of November 20, 2019 (which was the date of the Company’s most recently published net asset value per share), the purchase price would be $7.86 per share and the number of shares available for repurchase would be 773,847.59. The net asset value per share as of February 19, 2020, may be higher or lower than such amount.
The Company’s offer pursuant to this Tender Offer Statement on Schedule TO is being made upon the terms and subject to the conditions set forth in the Offer to Purchase, dated December 30, 2019.
Source: SEC
