Business Context and Reporting Period
Company: HMS Income Fund, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: December 28, 2018
Event: Adjustment to the Distribution Reinvestment Plan (DRP) pricing.
Key Financial Metrics
This filing does not contain comprehensive financial statements, revenue, profit, cash flow, or debt metrics. The only specific financial data points provided relate to the DRP pricing:
- Previous Reinvestment Purchase Price: $8.35 per share
- New Reinvestment Purchase Price: $8.25 per share
- Effective Date: Distribution payable on January 2, 2019
Material Changes
The Company decreased the price at which it issues shares under its DRP by $0.10 per share. This change was implemented to ensure the issuance price remains within the regulatory and policy limit of not exceeding 2.5% greater than the Net Asset Value (NAV) per share.
Guidance, Outlook, and Management Commentary
Management Rationale: The Board of Directors or a committee thereof exercises sole discretion to set the Reinvestment Purchase Price. The price must be (i) not less than the NAV per share and (ii) not more than 2.5% greater than the NAV per share. The decrease was necessary to maintain compliance with the 2.5% cap relative to the current NAV.
Risks and Contingencies: No new risks or contingencies were disclosed in this specific filing.
Investor Verification Checklist
- Verify the current Net Asset Value (NAV) per share to confirm the $8.25 price is within the 2.5% premium limit.
- Confirm the impact of the price reduction on the number of shares issued to participants in the DRP for the January 2, 2019 distribution.
- Review subsequent filings for any further adjustments to the DRP pricing or NAV calculations.