Msc Income Fund, Inc. · NYSE:MSIF
Msc Income Fund — HMS Income Fund — Shareholder Meeting (August 2013)
12 slides from Msc Income Fund's shareholder meeting presentation, Aug 7, 2013
Slide 1: 2013 Stockholder Meeting
2013 Stockholder Meeting INVEST IN THE POWER OF AMERICAN INGENUITY. ™ INVEST IN AMERICAN BUSINESSES. President and CEO Sherri Schugart
Slide 2: Hines: Adviser, Sponsor; Main Street: Sub-Adviser
HMS Income Fund - 2013 Stockholder Meeting Hines: Adviser, Sponsor Hines is responsible for all aspects of our capital raising and corporate administration, including accounting and compliance with SEC regulations. Hines has the ultimate authority on all investment decisions. Main Street: Sub - Advi
Slide 3: Hines: The Sponsor
HMS Income Fund - 2013 Stockholder Meeting Hines: The Sponsor ▪ 55+ years of experience in commercial real estate investment, development and management ▪ Experience in credit evaluation and underwriting tenants across industries and markets ▪ Assets under management of approximately $24 billion as
Slide 4: Main Street
HMS Income Fund - 2013 Stockholder Meeting Main Street 3 ▪ Extensive experience analyzing, valuing, structuring and closing complex financing transactions ▪ Unique group of professionals has more than 100 collective years of experience at private and investment banks, investment funds, and other fin
Slide 5: Investment Strategy Overview
HMS Income Fund - 2013 Stockholder Meeting 4 Investment Strategy Overview ▪ Primary objective: Generate income through debt and equity investments ▪ The secondary objective is to generate long - term capital appreciation through such investments ▪ Moderate leverage ▪ Total Return • Pay regular cash
Slide 6: Fund Overview as of June 30, 2013
HMS Income Fund - 2013 Stockholder Meeting 5 ▪ Raised $16.9 million in current public offering including proceeds from the distribution reinvestment plan ▪ Leverage – 28 %, cost of borrowing – 3% ▪ NAV per share – $ 8.83 ▪ Distributions • 7 % annualized distribution rate based on $10 share price. ▪
Slide 7: Flexible Investment Strategy
HMS Income Fund - 2013 Stockholder Meeting 6 Typical BDCs Loans of: Large - Market Firms $3B - $25B revenue POTENTIAL RETURN HMS Income Fund Loans of : Self - originated loans to: POTENTIAL RETURN Income from interest earned on loans Income from interest earned on loans Income potential from dividen
Slide 8: Target Investments
HMS Income Fund - 2013 Stockholder Meeting 7 ▪ Established companies with histories of positive and stable free cash flow with focus on basic industries that are integral to the American economy ▪ Firms with experienced and committed management teams ▪ Strong franchises with sustainable competitive
Slide 9: Portfolio Update as of June 30, 2013
HMS Income Fund - 2013 Stockholder Meeting 8 Portfolio Update as of June 30, 2013 ▪ Aggregate fair value, $29.8 million; cost basis, $29.6 million ▪ 32 Portfolio Companies • 30 Syndicated Investments (95% at Fair Value) • 2 Lower Middle Market Investments (5% at Fair Value) ▪ Weighted average effect
Slide 10: Industry Diversification as of 6/30/13
HMS Income Fund - 2013 Stockholder Meeting 9 IT Services - 10% Services and Leasing - 7% Specialty Retail - 7% Textiles, Apparel, & Luxury Goods - 6% Software - 5% Construction & Engineering - 5% Education - 4% Healthcare Equipment and Supplies - 4% Communications Equipment - 3% Metals and Mining -
Slide 11: Current Priorities
HMS Income Fund - 2013 Stockholder Meeting 10 Current Priorities ▪ Continue to raise capital and invest in attractive opportunities ▪ Obtain SEC approval on the Exemptive Relief Application ▪ Provide stockholders with liquidity through the share repurchase program
Slide 12: This must be read in conjunction with the current prospectus in order to understand
This must be read in conjunction with the current prospectus in order to understand fully all of the implications and risks o f a n investment in HMS Income Fund. A copy of the prospectus must be made available to your clients in connection with this offering. You and your clients should read the pr