Business Context and Reporting Period
This Form 8-K Current Report is filed by HMS Income Fund, Inc. (MSC Income Fund, Inc.) on June 27, 2013, covering events occurring on June 28, 2013. The filing details an amendment to a conditional fee waiver agreement and the declaration of distributions for the third quarter of 2013.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or debt metrics. The only specific financial data disclosed relates to distribution policy:
- Distribution Rate: $0.00191781 per share, per day.
- Period: July 1, 2013, through September 30, 2013.
- Annualized Yield: 7% (based on a public offering price of $10.00 per share).
- Payment Method: Cash or reinvestment in stock via the distribution reinvestment plan.
Material Changes
The primary material change reported is the extension of the conditional fee waiver period:
- Agreement Amendment: On June 28, 2013, the Fund entered into an amendment with HMS Adviser LP, Main Street Capital Corporation, and Main Street Capital Partners, LLC.
- Extension: The fee waiver period is extended through December 31, 2013.
- Waiver Conditions: Advisers may waive fees at their sole discretion if they deem it necessary, including instances where a distribution might represent a return of capital for U.S. federal income tax purposes. There is no automatic trigger for the waiver.
- Expiration: The obligation to waive fees ends on December 31, 2013, unless further extended.
Guidance, Outlook, and Risks
The filing contains forward-looking statements regarding the timing of distribution payments and future business decisions. Management notes that actual results may differ materially due to economic, competitive, and market conditions. Specific risks are referenced in the "Risk Factors" section of the Fund's Annual Report on Form 10-K for the year ended December 31, 2012. No specific financial guidance or outlook beyond the declared distribution rate is provided in this document.
Investor Verification Checklist
- Verify the full terms of the Second Amendment to the Conditional Fee Waiver Agreement (Exhibit 10.1) to understand the specific discretion held by the Advisers.
- Confirm the Fund's current public offering price to validate the 7% annualized yield calculation.
- Review the Fund's Form 10-K for the year ended December 31, 2012, for detailed risk factors affecting distribution sustainability.
- Monitor future filings to determine if the fee waiver period is extended beyond December 31, 2013.