HOUSTON, July 2, 2020 /PRNewswire/ -- Main Street
Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to
announce that MSC Adviser I, LLC ("MSC Adviser"), a wholly owned
subsidiary of Main Street and the current investment sub-adviser to
the current investment adviser and administrator to HMS Income
Fund, Inc. (the "Fund"), has entered into a definitive asset
purchase agreement under which MSC Adviser will become the sole
investment adviser and administrator to the Fund, subject to
certain closing conditions. The parties expect the transaction to
be completed in the fourth quarter of 2020.
"We are excited about the opportunity to serve as the sole
investment adviser to HMS Income Fund," said Dwayne L. Hyzak, Chief Executive Officer of Main
Street. "Assuming this role is a natural progression from our role
as investment sub-adviser to the fund. Since HMS Income Fund
was launched in 2012, we have sourced each of the fund's
investments and are the right party to successfully position the
fund for the future."
Following the closing of the transaction, MSC Adviser will
replace HMS Adviser LP, a wholly owned affiliate of Hines Interests
Limited Partnership ("Hines"), as the investment adviser and
administrator to the Fund. MSC Adviser's proposed investment
advisory agreement is intended to benefit the Fund's stockholders
as the management fee rate will be reduced from 2.00% to 1.75%,
with no changes to the incentive fee calculations. The new
advisory agreement with MSC Adviser, which has been unanimously
approved by the board of directors of the Fund, including all of
the independent directors, remains subject to approval by the
stockholders of the Fund.
Consummation of the transactions contemplated by the asset
purchase agreement is subject to approval of the new investment
advisory agreement by stockholders of the Fund and other customary
closing conditions. Post-closing, the Fund is expected to
change its name to MSC Income Fund, Inc.
ABOUT MAIN STREET CAPITAL CORPORATION
Main
Street (www.mainstcapital.com) is a principal investment firm that
primarily provides long-term debt and equity capital to lower
middle market companies and debt capital to middle market
companies. Main Street's portfolio investments are typically
made to support management buyouts, recapitalizations, growth
financings, refinancings and acquisitions of companies that operate
in diverse industry sectors. Main Street seeks to partner
with entrepreneurs, business owners and management teams and
generally provides "one stop" financing alternatives within its
lower middle market portfolio. Main Street's lower middle
market companies generally have annual revenues between
$10 million and $150 million. Main Street's middle market
debt investments are made in businesses that are generally larger
in size than its lower middle market portfolio companies.
ABOUT HMS INCOME FUND, INC.
HMS Income Fund,
Inc. is a specialty finance company sponsored by Hines that makes
debt and equity investments in middle market companies, which it
defines as companies with annual revenues generally between
$10 million and $3 billion and in lower middle market companies,
which it defines as companies with annual revenues generally
between $10 million and $150 million. The Fund is an externally managed,
non-diversified closed-end management investment company that has
elected to be treated as a business development company under the
Investment Company Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS
This press release
contains certain forward-looking statements, including but not
limited to those relating to potential approval of the new
investment advisory agreement with MSC Adviser by the Fund's
stockholders, completion of other closing conditions to the asset
purchase agreement, consummation of the transactions contemplated
thereby and MSC Adviser becoming the sole investment adviser and
administrator to the Fund. Any such statements other than
statements of historical fact are likely to be affected by other
unknowable future events and conditions, including elements of the
future that are or are not under Main Street's control, and that
Main Street may or may not have considered; accordingly, such
statements cannot be guarantees or assurances of any aspect of
future performance or events. Actual performance, results and
events could vary materially from these estimates and projections
of the future as a result of a number of factors, risks and
uncertainties, including, but not limited to, (i) the satisfaction
or waiver of certain closing conditions specified in the asset
purchase agreement relating to the proposed transactions, including
the consents of certain third parties and the approval by the
Fund's stockholders of the new investment advisory agreement, (ii)
the parties' ability to successfully close the proposed transaction
and the timing of such closing, (iii) the possibility that
competing offers or acquisition proposals related to the proposed
transaction will be made and, if made, could be successful and (iv)
those described from time to time in Main Street's filings with the
Securities and Exchange Commission. Such statements speak
only as of the time when made and are based on information
available to Main Street as of the date hereof and are qualified in
their entirety by this cautionary statement. Main Street
assumes no obligation to revise or update any such statement now or
in the future.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO,
dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard Lascar Investor
Relations
Ken Dennard |
ken@dennardlascar.com
Zach Vaughan |
zvaughan@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation