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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q

(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2025
 or
¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______

Commission file number 814-01185

Hancock Park Corporate Income, Inc.
(Exact name of registrant as specified in its charter)
 
Maryland81-0850535
State or Other Jurisdiction ofI.R.S. Employer Identification No.
Incorporation or Organization
222 W. Adams Street, Suite 1850, Chicago, Illinois
60606
Address of Principal Executive OfficesZip Code
(847) 734-2000
Registrant’s Telephone Number, Including Area Code
10 South Wacker Drive, Suite 2500, Chicago, Illinois
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
NoneNoneNone
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x     No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x     No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer¨Accelerated filer¨
Non-accelerated filer
x
Smaller reporting company¨
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). 
Yes ¨ No x
The number of shares of the issuer’s common stock, $0.001 par value, outstanding as of May 6, 2025 was 1,620,078.



HANCOCK PARK CORPORATE INCOME, INC.
 
TABLE OF CONTENTS
 
Item 1.
 
 
 
 
 
Item 2.
Item 3.
Item 4.
  
Item 1.
Item 1A.
Item 2
Item 3.
Item 4.
Item 5.
Item 6.
SIGNATURES
OFS®, HPCI®, OFS Capital® and OFS Credit® are registered trademarks of Orchard First Source Asset Management, LLC.
OFS Capital Management™ is a trademark of Orchard First Source Asset Management, LLC.
All other trademarks or trade names referred to in this Quarterly Report on Form 10-Q are the property of their respective owners.






Defined Terms
We have used “we,” “us,” “our,” “our company,” and “the Company” to refer to Hancock Park Corporate Income, Inc. in this report. We also have used several other terms in this report, which are explained or defined below:
TermExplanation or Definition
1940 ActInvestment Company Act of 1940, as amended
Administration AgreementAdministration agreement between the Company and OFS Services, dated July 15, 2016
Advisers ActInvestment Advisers Act of 1940, as amended
Affiliated AccountAn account, other than the Company, managed by OFS Advisor or an affiliate of OFS Advisor
Affiliated Fund
Certain other funds, including other BDCs and registered investment companies managed by OFS Advisor or by registered investment advisers controlling, controlled by, or under common control with, OFS Advisor
ASCAccounting Standards Codification, as issued by the FASB
Banc of California Credit FacilityA senior secured revolving credit facility, as amended, with Banc of California (formerly known as Pacific Western Bank), as lender, that provides for borrowings to the Company in an aggregate principal amount up to $15,000,000
BDCBusiness Development Company under the 1940 Act
BLABusiness Loan Agreement, as amended, with Banc of California, as lender, which provides the Company with a senior secured revolving credit facility
BoardThe Company’s board of directors
CCOCCO Capital, LLC, a Delaware limited liability company and the Company’s dealer manager and an affiliate of OFS Advisor
CLOCollateralized Loan Obligation
CodeInternal Revenue Code of 1986, as amended
CompanyHancock Park Corporate Income, Inc. and its consolidated subsidiaries
Contractual Issuer ExpensesSalaries and direct expenses of OFS Advisor’s employees, employees of their affiliates and others while engaged in offering and other contractually-defined activities
Dealer Manager AgreementBroker-dealer management agreement dated August 3, 2020 by and among the Company, OFS Advisor, International Assets Advisory, LLC and CCO, and amended and restated on February 2, 2022
EBITDAEarnings before interest, taxes, depreciation, and amortization
ESA Termination AgreementAn agreement between OFS Advisor and the Company to terminate the Second Amended Expense Support Agreement, dated November 26, 2024
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
GAAPAccounting principles generally accepted in the United States
HPCI-MBHPCI-MB, Inc., a wholly owned subsidiary taxed under subchapter C of the Code that generally holds the equity investments of the Company that are taxed as pass-through entities
ICTIInvestment company taxable income, which is generally net ordinary income plus net short-term capital gains in excess of net long-term capital losses
Indicative PricesMarket quotations, prices from pricing services or bids from brokers or dealers
Investment Advisory AgreementInvestment Advisory and Management Agreement between the Company and OFS Advisor, dated July 15, 2016
NAVNet asset value. NAV is calculated as consolidated total assets less consolidated total liabilities, and can be expressed in the aggregate or on a per share basis
Net Loan FeesThe cumulative amount of fees, such as origination fees, discounts, premiums and amendment fees that are deferred and recognized as income over the life of the loan
Note Purchase AgreementThe Note Purchase Agreement, as amended between the Company and a qualified institutional investor, dated November 27, 2019, in which the Company sold in a private placement the Unsecured Note
OCCIOFS Credit Company, Inc., a Delaware corporation and a non-diversified, closed-end management investment company, for which OFS Advisor serves as investment adviser
OfferingContinuous offering of up to $200,000,000 of shares of the Company's common stock



TermExplanation or Definition
OFS AdvisorOFS Capital Management, LLC, a wholly owned subsidiary of OFSAM and registered investment advisor under the Advisers Act, focusing primarily on investments in middle market loans and broadly syndicated loans, debt and equity positions in CLOs and other structured credit investments
OFS CapitalOFS Capital Corporation, a Delaware corporation and publicly traded BDC, for which OFS Advisor serves as investment adviser
OFS ServicesOFS Capital Services, LLC, a wholly owned subsidiary of OFSAM and affiliate of OFS Advisor
OFSAMOrchard First Source Asset Management, LLC, a subsidiary of OFSAM Holdings, and a full-service provider of capital and leveraged finance solutions to U.S. corporations
OFSAM HoldingsOrchard First Source Asset Management Holdings, LLC, a holding company consisting of asset management businesses, including OFS Advisor, a registered investment adviser focusing primarily on investments in middle-market loans and broadly syndicated loans, debt and equity positions in CLOs and other structured credit investments, and OFS CLO Management, LLC, OFS CLO Management II, LLC and OFS CLO Management III, LLC, each a registered investment adviser focusing primarily on investments in broadly syndicated loans
OrderAn exemptive relief order from the SEC to permit us to co-invest in portfolio companies with Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions
PIKPayment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income
Portfolio Company InvestmentA debt or equity investment in a portfolio company. Portfolio Company Investments exclude Structured Finance Securities
Prime RateUnited States Prime interest rate
RICRegulated investment company under the Code
SECUnited States Securities and Exchange Commission
Second Amended Expense Support Agreement
Second Amended and Restated Expense Support and Conditional Reimbursement Agreement dated February 2, 2022, between the Company and OFS Advisor, agreed to and accepted by CIM Capital IC Management, LLC, and terminated effective January 1, 2025
Securities ActSecurities Act of 1933, as amended
SOFRSecured Overnight Financing Rate
Structured Finance SecuritiesCLO mezzanine debt, CLO subordinated notes, CLO loan accumulation facility securities and other CLO related investments
Unsecured NoteAn agreement, as amended, with The HCM Master Fund Limited, an exempted company incorporated with limited liability under the laws of the Cayman Islands in which the Company sold, in a private placement, an unsecured note in an aggregate principal amount of $15,000,000




Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our prospective portfolio investments, our industry, our beliefs, and our assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:
our ability and experience operating a BDC or maintaining our qualification as a RIC under the Code;
our dependence on key personnel;
our ability to maintain or develop referral relationships;
our ability to replicate historical results;
the ability of OFS Advisor to identify, invest in and monitor companies that meet our investment criteria;
the belief that the carrying amounts of our financial instruments, such as cash, cash equivalents, receivables and payables approximate the fair value of such items due to the short maturity of such instruments and that such financial instruments are held with high credit quality institutions to mitigate the risk of loss due to credit risk;
actual and potential conflicts of interest with OFS Advisor and other affiliates of OFSAM Holdings;
constraint on investment due to access to material nonpublic information;
restrictions on our ability to enter into transactions with our affiliates;
the use of borrowed money to finance a portion of our investments;
our ability to incur additional leverage pursuant to Section 61(a)(2) of the 1940 Act and the impact of such leverage on our net investment income and results of operations;
competition for investment opportunities;
the belief that the seniority of our debt investments in a borrower’s capital structure may provide greater downside protection against adverse economic changes, including those caused by the impacts of interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, instability in the U.S. and international banking systems, the agenda of the new U.S. presidential administration, including the impact of tariff enactment and tax reductions, the risk of recession or a shutdown of U.S. government services, and related market volatility on our business, our portfolio companies, our industry and the global economy;
the percentage of investments that bear interest on a floating rate or fixed rate basis;
our ability to raise debt or equity capital as a BDC;
the success of our current borrowings, and issuances of senior securities or future borrowings to fund the growth of our investment portfolio;
the timing, form and amount of any distributions from our portfolio companies;
the timing or amount of distribution payments to our stockholders;
the holding period of our investments;
the impact of alternative reference rates on our business, including potential additional interest rate reductions approved by the U.S. Federal Reserve, which may impact our investment income, cost of funding and the valuation of our investments;
the general economy and its impact on the industries in which we invest;
the impact of current political, economic and industry conditions, including changes in the interest rate environment, inflation, significant market volatility, supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, resource shortages and other conditions affecting the financial and capital markets, which, in turn, impacts our business prospects and the prospects of our portfolio companies;
the general uncertainty surrounding the financial and political stability of the United States, the United Kingdom, the European Union and China;
1


our ability to consummate credit facilities in the future on commercially reasonable terms, if at all;
the impact of information technology system failures, data security breaches, data privacy compliance, network disruptions, cybersecurity attacks and the increasing use of artificial intelligence and machine learning technology;
our ability to generate cash from: (i) the net proceeds of the Offering; (ii) cash flows from our operations; (iii) the Banc of California Credit Facility and any other financing arrangements we may enter into in the future; (iv) investment repayments or dispositions; and (v) any future offerings of our equity or debt securities;
the belief that we have sufficient levels of liquidity to operate our business and support our existing portfolio companies;
the belief that our cash and cash equivalent balances are not exposed to any significant credit risk;
the impact that environmental, social and governance matters could have on our brand and reputation and our portfolio companies;
the fluctuation of the fair value of our investments due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value; and
the effect of new or modified laws or regulations, including accounting pronouncements and rule issuances, governing our operations.
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Quarterly Report on Form 10-Q should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include, among others, those described or identified in “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 14, 2025. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q.
We have based the forward-looking statements on information available to us on the date of this Quarterly Report on Form 10-Q. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any additional disclosures that we may make directly to you or through reports that we may file with the SEC in the future, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The forward-looking statements and projections contained in this Quarterly Report on Form 10-Q are excluded from the safe harbor protection provided by Section 21E of the Exchange Act.
The following should be read in conjunction with our financial statements and the related notes thereto contained elsewhere in this Quarterly Report on Form 10-Q.
2


PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Hancock Park Corporate Income, Inc.
Consolidated Statements of Assets and Liabilities (unaudited)
March 31, 2025December 31, 2024
  
Assets:  
Non-control/non-affiliate investments, at fair value (amortized cost of $39,929,804 and $39,509,053, respectively)
$35,828,910 $36,054,042 
Cash and cash equivalents364,456 980,084 
Interest receivable220,825 163,585 
Receivable for investments sold 1,501,861 
Prepaid expenses and other assets81,862 84,137 
Total assets$36,496,053 $38,783,709 
Liabilities:  
Revolving line of credit$4,265,000 $5,265,000 
Unsecured note (net of discount and deferred debt issuance costs of $121,145 and $139,317, respectively)
14,878,855 14,860,683 
Payable for investments purchased 257,393 
Due to adviser and affiliates (Note 3)342,868 507,133 
Payable for repurchases of common stock448,381 294,331 
Distributions payable296,898 140,785 
Interest payable78,879 81,861 
Other liabilities259,665 385,519 
Total liabilities20,570,546 21,792,705 
Commitments and contingencies (Notes 3 and 6)
Net assets:
Common stock, par value of $0.001 per share; 20,000,000 shares authorized, 1,620,078 and 1,664,123 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively
1,620 1,664 
Paid-in capital in excess of par21,755,599 22,203,936 
Total accumulated losses(5,831,712)(5,214,596)
Total net assets15,925,507 16,991,004 
Total liabilities and net assets$36,496,053 $38,783,709 
Number of common shares outstanding1,620,078 1,664,123 
Net asset value per share$9.83 $10.21 
 
See Notes to Consolidated Financial Statements (unaudited).
3


Hancock Park Corporate Income, Inc.
Consolidated Statements of Operations (unaudited)
Three Months Ended March 31,
20252024
Investment income
Interest income$1,147,733 $1,548,674 
PIK interest income73,205 59,614 
Dividend income1,072 1,050 
Fee income2,170 29,335 
Total investment income
1,224,180 1,638,673 
Operating expenses
Interest expense334,244 423,419 
Base management fees115,524 130,722 
Incentive fees40,651 119,805 
Administrative fees170,422 187,477 
Professional fees183,263 192,168 
Transfer agent expenses38,177 53,162 
Other expenses43,283 52,699 
Contractual Issuer Expenses (Note 3)5,711 59,126 
Amortization of deferred offering costs1,683 7,353 
Total operating expenses932,958 1,225,931 
Net expense limitations under agreement with the adviser (Note 3)(7,394)(66,479)
Net operating expenses925,564 1,159,452 
Net investment income 298,616 479,221 
Net realized and unrealized gain (loss) on investments
Net realized loss on investments(267)(6,593)
Net unrealized appreciation (depreciation) on investments(645,883)31,227 
Deferred tax (expense) benefit on net unrealized appreciation (depreciation)27,316 (16,037)
Net gain (loss) on investments(618,834)8,597 
Net increase (decrease) in net assets resulting from operations$(320,218)$487,818 
Net investment income per common share – basic and diluted
$0.18 $0.26 
Net increase (decrease) in net assets resulting from operations per common share – basic and diluted$(0.19)$0.27 
Distributions declared per common share
$0.18 $0.25 
Basic and diluted weighted-average common shares outstanding1,661,676 1,832,927 

See Notes to Consolidated Financial Statements (unaudited).

4


Hancock Park Corporate Income, Inc.
Consolidated Statements of Changes in Net Assets (unaudited)
Common Stock
Number of sharesPar valuePaid-in capital in excess of parTotal accumulated lossesTotal net assets
Balances at December 31, 20231,835,599 $1,835 $23,990,525 $(4,744,874)$19,247,486 
Net increase in net assets resulting from operations:
Net investment income— — — 479,221 479,221 
Net realized loss on investments, net of taxes— — — (6,593)(6,593)
Net unrealized appreciation on investments, net of taxes— — — 15,190 15,190 
Repurchases of common stock(48,625)(48)(514,895)— (514,943)
Distributions to stockholders— — — (461,762)(461,762)
Net increase (decrease) for the three month period ended March 31, 2024(48,625)(48)(514,895)26,056 (488,887)
Balances at March 31, 20241,786,974 $1,787 $23,475,630 $(4,718,818)$18,758,599 

Balances at December 31, 20241,664,123 $1,664 $22,203,936 $(5,214,596)$16,991,004 
Net decrease in net assets resulting from operations:
   Net investment income— — — 298,616 298,616 
   Net realized loss on investments, net of taxes— — — (267)(267)
   Net unrealized depreciation on investments, net of taxes— — — (618,567)(618,567)
Repurchases of common stock (44,045)(44)(448,337)— (448,381)
Distributions to stockholders— — — (296,898)(296,898)
Net decrease for the three month period ended March 31, 2025(44,045)(44)(448,337)(617,116)(1,065,497)
Balances at March 31, 20251,620,078 $1,620 $21,755,599 $(5,831,712)$15,925,507 

See Notes to Consolidated Financial Statements (unaudited).

5


Hancock Park Corporate Income, Inc.
Consolidated Statements of Cash Flows (unaudited)
Three Months Ended March 31,
20252024
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations$(320,218)$487,818 
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by operating activities:
Net unrealized (appreciation) depreciation on investments, net of deferred taxes618,567 (15,190)
Net realized loss on investments267 6,593 
Amortization of Net Loan Fees on investments(56,617)(108,126)
Amendment fees received4,640 2,962 
Amortization of deferred debt issuance costs38,396 43,538 
Accretion of interest income on Structured Finance Securities(229,409)(314,411)
Paid-in-kind interest income(73,205)(59,492)
Purchase of portfolio investments(657,392)(1,188,826)
Proceeds from principal payments on portfolio investments224,070 3,300,558 
Proceeds from distributions received from portfolio investments366,863 393,488 
Changes in operating assets and liabilities:
Interest receivable(57,240)(23,241)
Receivable for investment sold1,501,861  
Interest payable(2,982)1,278 
Due to adviser and affiliates(164,265)(463,515)
Payable for investments purchased(257,393) 
Other assets and liabilities(116,455)(12,302)
Net cash provided by operating activities819,488 2,051,132 
Cash flows from financing activities
Distributions paid to common stockholders(140,785)(465,876)
Borrowings under revolving line of credit500,000 1,300,000 
Repayments under revolving line of credit(1,500,000)(2,100,000)
Repurchases of common stock(294,331)(525,963)
Net cash used in financing activities(1,435,116)(1,791,839)
Net increase (decrease) in cash and cash equivalents(615,628)259,293 
Cash and cash equivalents
Beginning of period980,084 807,831 
End of period$364,456 $1,067,124 
Supplemental disclosure of cash flow information:
Amortization of deferred offering costs limited by investment advisor (see Note 3)$1,683 $7,353 
Cash paid for interest298,830 378,603 

See Notes to Consolidated Financial Statements (unaudited).
6

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments (unaudited)
March 31, 2025    
    
Portfolio Company(1)(8)
Investment Type
Industry
Interest Rate(3)
Spread Above
Index(3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Non-control/Non-affiliate Investments
Debt and Equity Investments
AIDC IntermediateCo 2, LLCComputer Systems Design Services
First Lien Debt9.82%SOFR+5.50%7/8/20227/22/2027$488,750 $483,113 $489,729 3.0 %
First Lien Debt9.82%SOFR+5.50%7/31/20237/22/202711,431 11,252 11,454 0.1 
500,181 494,365 501,183 3.1 
Allen Media, LLCCable and Other Subscription Programming
First Lien Debt9.95%SOFR+5.50%9/15/20222/10/20271,214,828 1,157,060 855,879 5.3 
Associated Springs, LLCSpring Manufacturing
First Lien Debt10.17%SOFR+5.75%12/10/20244/4/2030565,409 554,754 557,494 3.5 
First Lien Debt (Delayed Draw) (12)n/m (5)SOFR+5.75%12/10/20244/4/2030 (2,031)(6,034) 
565,409 552,723 551,460 3.5 
Asurion, LLC (9)Communication Equipment Repair and Maintenance
Second Lien Debt9.69%SOFR+5.25%8/20/20241/31/20281,500,000 1,423,561 1,425,000 8.9 
BayMark Health Services, Inc.Outpatient Mental Health and Substance Abuse Centers
Second Lien Debt13.06%SOFR+8.50%6/10/20216/11/20281,325,758 1,316,646 1,165,341 7.2 
Second Lien Debt13.06%SOFR+8.50%6/10/20216/11/2028357,657 355,176 314,380 2.0 
1,683,415 1,671,822 1,479,721 9.2 
BCPE North Star US Holdco 2, Inc. (F/K/A Dessert Holdings)Ice Cream and Frozen Dessert Manufacturing
Second Lien Debt11.69%SOFR+7.25%2/2/20226/8/20291,833,333 1,710,697 1,764,583 11.1 
Boca Home Care Holdings, Inc.Services for the Elderly and Persons with Disabilities
First Lien Debt10.92%SOFR+6.50%2/25/20222/25/2027939,435 933,399 939,435 5.9 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.50%2/25/20222/25/2027 (595)  
Common Equity (129 Class A units) (7)
2/25/2022129,032 67,912 0.4 
Preferred Equity (345 Class A units) 12.0% cash / 2.0% PIK
3/3/202334,464 35,940 0.2 
939,435 1,096,300 1,043,287 6.5 
Clevertech Bidco, LLCCommodity Contracts Dealing
First Lien Debt11.20%SOFR+6.75%11/3/202312/30/20271,353,202 1,326,378 1,339,669 8.4 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.75%11/3/202312/30/2027 (2,498)(1,260) 
1,353,202 1,323,880 1,338,409 8.4 
7

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments (unaudited)
March 31, 2025    
Portfolio Company(1)(8)
Investment Type
Industry
Interest Rate(3)
Spread Above
Index(3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Constellis Holdings, LLCOther Justice, Public Order, and Safety Activities
Common Equity (1,362 units) (7)
3/27/2020$46,403 $4,150  %
Convergint Technologies Holdings, LLCSecurity Systems Services (except Locksmiths)
Second Lien Debt11.19%SOFR+6.75%9/28/20183/30/2029$2,068,608 2,040,262 2,068,608 13.0 
DRS Imaging Services, LLCData Processing, Hosting, and Related Services
Common Equity (115 units) (7) (13)
3/8/2018115,154 187,578 1.2 
Excelin Home Health, LLCHome Health Care Services
Second Lien Debt
18.00% PIK
N/A10/25/201810/1/20261,464,283 1,450,892 1,256,355 7.9 
First Brands Group, LLC (9)Other Motor Vehicle Parts Manufacturing
First Lien Debt9.55%SOFR+5.00%8/23/20243/30/2027733,613 725,190 683,408 4.3 
First Lien Debt9.55%SOFR+5.00%8/26/20243/30/2027358,114 354,575 333,717 2.1 
1,091,727 1,079,765 1,017,125 6.4 
GoTo Group (F/K/A LogMeIn, Inc.) (9)Data Processing, Hosting, and Related Services
First Lien Debt9.19%SOFR+4.75%9/28/20224/28/2028609,561 609,561 286,494 1.8 
First Lien Debt9.19%SOFR+4.75%9/28/20224/28/2028441,407 441,407 410,877 2.6 
1,050,968 1,050,968 697,371 4.4 
Heritage Grocers Group, LLC (F/K/A Tony's Fresh Market / Cardenas Markets) (9)Supermarkets and Other Grocery (except Convenience) Stores
First Lien Debt11.15%SOFR+6.75%7/20/20228/1/20291,782,647 1,716,352 1,540,652 9.7 
Honor HN Buyer, IncServices for the Elderly and Persons with Disabilities
First Lien Debt10.20%SOFR+5.75%10/15/202110/15/2027832,663 825,661 832,663 5.2 
First Lien Debt10.20%SOFR+5.75%10/15/202110/15/2027526,577 521,367 526,577 3.3 
First Lien Debt (Revolver) (12)12.25%Prime +4.75%10/15/202110/15/202712,376 11,538 12,376 0.1 
First Lien Debt10.20%SOFR+5.75%3/31/202310/15/2027585,865 581,797 585,865 3.7 
1,957,481 1,940,363 1,957,481 12.3 
8

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments (unaudited)
March 31, 2025    
Portfolio Company(1)(8)
Investment Type
Industry
Interest Rate(3)
Spread Above
Index(3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Idera Inc.Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Second Lien Debt11.19%SOFR+6.75%1/27/20223/2/2029$670,732 $670,732 $633,171 4.0 %
Inergex Holdings, LLC (6)Other Computer Related Services
First Lien Debt
11.45% cash / 2.00% PIK
SOFR+7.00%10/1/201810/1/2026982,798 975,604 982,798 6.2 
First Lien Debt (Revolver)
11.30% cash / 2.00% PIK
SOFR+7.00%10/1/201810/1/2026156,250 156,250 156,250 1.0 
1,139,048 1,131,854 1,139,048 7.2 
Medrina LLCAll Other Outpatient Care Centers
First Lien Debt10.44%SOFR+6.00%10/20/202310/20/2029735,372 721,425 742,726 4.7 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.00%10/20/202310/20/2029 (2,018)  
First Lien Debt (Delayed Draw) (12)10.25%SOFR+6.00%10/20/202310/20/2029123,404 121,859 124,894 0.8 
858,776 841,266 867,620 5.5 
Metasource, LLCAll Other Business Support Services
First Lien Debt
10.81% cash / 0.50% PIK
SOFR+6.25%5/17/20225/17/2027684,329 676,946 650,112 4.1 
One GI LLCOffices of Other Holding Companies
First Lien Debt11.17%SOFR+6.75%12/13/202112/22/2025846,563 843,476 819,472 5.1 
First Lien Debt11.17%SOFR+6.75%12/13/202112/22/2025446,172 444,451 431,895 2.7 
First Lien Debt (Revolver)11.17%SOFR+6.75%12/13/202112/22/2025166,667 166,066 161,333 1.0 
1,459,402 1,453,993 1,412,700 8.8 
Redstone Holdco 2 LP (F/K/A RSA Security) Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Second Lien Debt12.30%SOFR+7.75%4/16/20214/27/20291,000,000 993,345 470,000 3.0 
RPLF Holdings, LLCSoftware Publishers
Common Equity (62,365 units) (7) (13)
1/17/2018 168,410 1.1 
9

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments (unaudited)
March 31, 2025    
Portfolio Company(1)(8)
Investment Type
Industry
Interest Rate(3)
Spread Above
Index(3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
RumbleOn, Inc. (11)Other Industrial Machinery Manufacturing
First Lien Debt (6)
11.30% cash / 1.50% PIK
SOFR+8.25%8/31/20218/31/2026$654,702 $640,498 $623,276 3.9 %
First Lien Debt (6)
11.30% cash / 1.50% PIK
SOFR+8.25%8/31/20218/31/2026197,580 194,932 188,096 1.2 
Warrants (warrants to purchase up to $55,000 in stock) (7)
8/31/20218/14/2028 (15)50,082 3,693  
852,282 885,512 815,065 5.1 
SS Acquisition, LLCSports and Recreation Instruction
First Lien Debt10.30%SOFR+6.00%12/20/202412/20/20291,353,750 1,347,359 1,333,444 8.4 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.00%12/20/202412/20/2029 (674)(2,143) 
1,353,750 1,346,685 1,331,301 8.4 
Tolemar Acquisition, Inc.Motorcycle, Bicycle, and Parts Manufacturing
First Lien Debt
10.42% cash/ 1.00% PIK
SOFR+6.00%10/14/202110/14/20261,311,525 1,307,509 1,232,834 7.7 
First Lien Debt (Revolver) (12)10.42%SOFR+6.00%10/14/202110/14/202688,235 87,829 80,294 0.5 
1,399,760 1,395,338 1,313,128 8.2 
TruGreen Limited PartnershipLandscaping Services
Second Lien Debt13.05%SOFR+8.50%5/13/202111/2/20281,500,000 1,522,675 1,416,000 8.9 
Wellful Inc. (F/K/A KNS Acquisition Corp.)Electronic Shopping and Mail-Order Houses
First Lien Debt9.44%SOFR+5.00%1/14/20254/19/2030406,334 406,334 398,208 2.5 
First Lien Debt (6)
8.94% cash / 1.75% PIK
SOFR+6.25%7/26/202110/19/2030623,122 623,122 473,572 3.0 
1,029,456 1,029,456 871,780 5.5 
Total Debt and Equity Investments$30,953,052 $30,818,369 $28,777,177 180.7 %
Structured Finance Securities (11)
Subordinated Notes, Mezzanine Debt and Other CLO-Equity Related Investments
Apex Credit CLO 2020 Ltd.
Subordinated Notes (2) (14)16.99%N/A11/16/20204/20/2035$3,650,000 $3,064,806 $2,407,946 15.1 %
Apex Credit CLO 2021 Ltd.
Subordinated Notes (2) (14)15.41%N/A5/28/20217/18/20341,480,000 1,064,778 840,831 5.3 
10

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments (unaudited)
March 31, 2025    
Portfolio Company(1)(8)
Investment Type
Industry
Interest Rate(3)
Spread Above
Index(3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Apex Credit CLO 2022-1 Ltd.
Subordinated Notes (2) (14)7.70%N/A4/28/20224/22/2033$1,892,824 $1,482,168 $1,070,813 6.7 %
CLO other (10) (14)2.19%N/A8,758 18,066 0.1 
Elevation CLO 2021-14, Ltd.
Subordinated Notes (2) (14)13.01%N/A9/21/202110/20/20342,894,659 1,684,985 1,284,825 8.1 
Elevation CLO 2021-15, Ltd.
Subordinated Notes (2) (14) 2.19%N/A12/6/20211/5/20351,250,000 824,359 429,266 2.7 
Monroe Capital MML CLO X, Ltd.
Mezzanine Debt - Class E-R13.07%SOFR+8.75%4/22/20225/20/20341,000,000 981,581 999,986 6.3 
Total Structured Finance Securities$12,167,483 $9,111,435 $7,051,733 44.3 %
Total Investments$43,120,535 $39,929,804 $35,828,910 225.0 %
(1)Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company’s investments are generally classified as “restricted securities” as such term is defined under Rule 6-03(f) of Regulation S-X or Rule 144 of the Securities Act.
(2)Amortized cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO subordinated note investments. CLO subordinated note investments are entitled to recurring distributions which are generally equal to the residual cash flow of payments received on underlying securities less contractual payments to debt holders and fund expenses.
(3)A majority of the Company’s debt investments and mezzanine debt investments bear interest at rates determined by reference to SOFR or Prime, and reset monthly, quarterly, or semi-annually. For all variable-rate investments, the schedule presents the spread over SOFR or Prime and the interest rate as of March 31, 2025. Unless otherwise noted with footnote 6, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.
(4)Unless otherwise noted in footnote 9, fair value was determined using significant unobservable inputs for all of the Company’s investments and are considered Level 3 under GAAP. See Note 5 for further details.
(5)Not meaningful as there is no outstanding balance on the revolver or delayed draw. The Company earns unfunded commitment fees on undrawn revolving lines of credit and delayed draw facility balances, which are reported in fee income. The Company considers undrawn amounts in the determination of fair value.
11

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments (unaudited)
March 31, 2025    
(6)The interest rate on these investments contains a PIK provision, whereby the issuer has the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision. The interest rate in the schedule represents the current interest rate in effect for these investments. The following table provides additional details on these PIK investments, including the maximum PIK interest rate allowed as of March 31, 2025:
Portfolio CompanyInvestment TypeMaximum PIK
Rate Allowed
Range of PIK
Option
Range of Cash
Option
Inergex Holdings, LLCFirst Lien Debt2.00%
0% to 2.00%
11.45% to 13.45%
Inergex Holdings, LLCFirst Lien Debt (Revolver)2.00%
0% to 2.00%
11.30% to 13.30%
RumbleOn, Inc.First Lien Debt1.50%
0% to 1.50%
11.30% to 12.80%
RumbleOn, Inc.First Lien Debt1.50%
0% to 1.50%
11.30% to 12.80%
Wellful Inc. (F/K/A KNS Acquisition Corp.)First Lien Debt1.75%
0% to 1.75%
8.94% to 10.69%
(7)Non-income producing. The Company has not recognized income on the security during the prior twelve-month period preceding the period-end date.
(8)Investments pledged as collateral under the Banc of California Credit Facility.
(9)Fair value was determined by reference to observable inputs other than quoted prices in active markets and are considered Level 2 under GAAP. See Note 5 for further details.
(10) Fair value represents discounted cash flows associated with fees earned from CLO equity related investments.
(11) Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of March 31, 2025, approximately 78% of the Company's assets were qualifying assets.
(12) Subject to unfunded commitments. The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans. See Note 6.
(13) Investment held by HPCI-MB, a wholly owned subsidiary of the Company subject to corporate income tax.
(14) The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter. The estimated effective yield is based upon projected amounts and timing of future distributions and the projected amounts and timing of terminal principal payments at the time of estimation. The estimated effective yield and investment cost may ultimately not be realized. Projected cash flows, including the amounts and timing of terminal principal payments, which generally are projected to occur prior to the contractual maturity date, were utilized in deriving the effective yield of the investments. The estimated yield and investment cost may ultimately not be realized.
(15) Represents expiration date of the warrants.



See Notes to Consolidated Financial Statements (unaudited).
12

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments
December 31, 2024
Portfolio Company (1) (8)
Investment Type
Industry
Interest Rate(3)
Spread Above Index (3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Non-control/Non-affiliate Investments
AIDC IntermediateCo 2, LLCComputer Systems Design Services
First Lien Debt9.59%SOFR+5.25%7/22/20227/22/2027$490,000 $483,744 $490,000 2.9 %
First Lien Debt9.61%SOFR+5.25%7/31/20237/22/202711,460 11,262 11,460 0.1 
501,460 495,006 501,4603.0 
Allen Media, LLCCable and Other Subscription Programming
First Lien Debt9.98%SOFR+5.50%9/15/20222/10/20271,218,026 1,152,440 856,740 5.0 
Associated Springs, LLCSpring Manufacturing
First Lien Debt10.33%SOFR+5.75%12/10/20244/4/2030568,966 557,715 557,715 3.3 
First Lien Debt (Delayed Draw) (12)n/m (5)SOFR+5.75%12/10/20244/4/2030 (2,131)(2,131) 
568,966 555,584 555,584 3.3 
Asurion, LLC (9)Communication Equipment Repair and Maintenance
Second Lien Debt9.72%SOFR+5.25%8/20/20241/31/20281,500,000 1,416,914 1,469,468 8.6 
BayMark Health Services, Inc.Outpatient Mental Health and Substance Abuse Centers
Second Lien Debt13.09%SOFR+8.50%6/10/20216/11/20281,325,758 1,315,943 1,240,909 7.3 
Second Lien Debt13.12%SOFR+8.50%6/10/20216/11/2028357,657 354,984 334,767 2.0 
1,683,415 1,670,927 1,575,676 9.3 
BCPE North Star US Holdco 2, Inc. (F/K/A Dessert Holdings)Ice Cream and Frozen Dessert Manufacturing
Second Lien Debt11.72%SOFR+7.25%2/2/20226/8/20291,833,333 1,703,488 1,772,833 10.4 
Boca Home Care Holdings, Inc.Services for the Elderly and Persons with Disabilities
First Lien Debt10.96%SOFR+6.50%2/25/20222/25/2027962,742 956,678 956,003 5.6 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.50%2/25/20222/25/2027 (555)(903) 
Common Equity (129 Class A units) (7)
2/25/2022129,032 67,915 0.4 
Preferred Equity (345 Class A units) 12.0% cash / 2.0% PIK
34,464 35,763 0.2 
962,742 1,119,619 1,058,778 6.2 
Clevertech Bidco, LLCCommodity Contracts Dealing
First Lien Debt11.23%SOFR+6.75%11/3/202312/30/20271,356,662 1,327,357 1,339,026 7.9 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.75%11/3/202312/30/2027 (2,722)(1,638) 
1,356,662 1,324,635 1,337,388 7.9 
13

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments
December 31, 2024
Portfolio Company (1) (8)
Investment Type
Industry
Interest Rate(3)
Spread Above Index (3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Constellis Holdings, LLCOther Justice, Public Order, and Safety Activities
Common Equity (1,362 Common shares) (7)
3/27/2020$46,403 $4,026  %
Convergint Technologies Holdings, LLCSecurity Systems Services (except Locksmiths)
Second Lien Debt11.22%SOFR+6.75%9/28/20183/30/2029$2,068,608 2,038,513 2,068,608 12.2 
DRS Imaging Services, LLCData Processing, Hosting, and Related Services
Common Equity (115 units) (7) (13)
3/8/2018115,154 121,000 0.7 
Excelin Home Health, LLCHome Health Care Services
Second Lien Debt
18.00% PIK
N/A10/25/201810/1/20261,401,228 1,379,829 1,156,013 6.8 
First Brands Group, LLC (9)Other Motor Vehicle Parts Manufacturing
First Lien Debt9.85%SOFR+5.00%8/23/20243/30/2027735,523 726,035 692,620 4.1 
First Lien Debt9.85%SOFR+5.00%8/26/20243/30/2027358,961 354,976 337,201 2.0 
1,094,484 1,081,011 1,029,821 6.1 
GoTo Group (F/K/A LogMeIn, Inc.) (9)Data Processing, Hosting, and Related Services
First Lien Debt9.30%SOFR+4.75%9/28/20224/28/2028611,101 611,101 280,801 1.7 
First Lien Debt9.30%SOFR+4.75%9/28/20224/28/2028442,521 442,521 404,354 2.4 
1,053,622 1,053,622 685,155 4.1 
Heritage Grocers Group, LLC (F/K/A Tony's Fresh Market / Cardenas Markets) (9)Supermarkets and Other Grocery (except Convenience) Stores
First Lien Debt11.18%SOFR+6.75%7/20/20228/1/20291,787,218 1,716,975 1,706,051 10.0 
Honor HN Buyer IncServices for the Elderly and Persons with Disabilities
First Lien Debt10.23%SOFR+5.75%10/15/202110/15/2027834,815 827,106 834,815 4.9 
First Lien Debt10.23%SOFR+5.75%10/15/202110/15/2027527,928 522,205 527,928 3.1 
First Lien Debt (Revolver) (12)12.25%Prime+4.75%10/15/202110/15/202712,376 11,457 12,376 0.1 
First Lien Debt10.23%SOFR+5.75%4/28/202310/15/2027587,350 582,888 587,350 3.5 
1,962,469 1,943,656 1,962,469 11.6 
14

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments
December 31, 2024
Portfolio Company (1) (8)
Investment Type
Industry
Interest Rate(3)
Spread Above Index (3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
Idera Inc.Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Second Lien Debt11.47%SOFR+6.75%1/27/20223/2/2029$670,732 $670,732 $670,732 3.9 %
Inergex Holdings, LLC (2)Other Computer Related Services
First Lien Debt
11.47% cash / 2.0% PIK
SOFR+7.00%10/1/201810/1/2026985,595 977,219 985,595 5.8 
First Lien Debt (Revolver)
11.74% cash / 2.0% PIK
SOFR+7.00%10/1/201810/1/2026156,250 156,250 156,250 0.9 
1,141,845 1,133,469 1,141,845 6.7 
Medrina LLCAll Other Outpatient Care Centers
First Lien Debt10.44%SOFR+6.00%10/20/202310/20/2029737,234 722,494 744,606 4.4 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.00%10/20/202310/20/2029 (2,127)  
First Lien Debt (Delayed Draw) (12)n/m (5)SOFR+6.00%10/20/202310/20/2029 (370)1,489  
737,234 719,997 746,095 4.4 
Metasource, LLCAll Other Business Support Services
First Lien Debt
10.84% cash / 0.50% PIK
SOFR+6.25%5/17/20225/17/2027685,222 676,976 648,220 3.8 
One GI LLCOffices of Other Holding Companies
First Lien Debt11.21%SOFR+6.75%12/13/202112/22/2025848,750 844,595 824,136 4.9 
First Lien Debt11.21%SOFR+6.75%12/13/202112/22/2025447,310 445,005 434,338 2.6 
First Lien Debt (Revolver)11.25%SOFR+6.75%12/13/202112/22/2025166,667 165,862 161,833 1.0 
1,462,727 1,455,462 1,420,307 8.5 
Redstone Holdco 2 LP (F/K/A RSA Security)Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Second Lien Debt12.60%SOFR+7.75%4/16/20214/27/20291,000,000 992,942 576,000 3.3 
RPLF Holdings, LLCSoftware Publishers
Common Equity (62,365 Class A units) (7) (13)
1/17/2018 331,221 1.9 
15

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments
December 31, 2024
Portfolio Company (1) (8)
Investment Type
Industry
Interest Rate(3)
Spread Above Index (3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
RumbleOn, Inc. (11)Other Industrial Machinery Manufacturing
First Lien Debt (2)
12.10% Cash / 1.50% PIK
SOFR+8.75%8/31/20218/31/2026$652,202 $637,164 $618,940 3.6 %
First Lien Debt (2)
12.10% Cash / 1.50% PIK
SOFR+8.75%8/31/20218/31/2026196,825 194,387 186,787 1.1 
Warrants (warrants to purchase up to $55,000 in common stock) (7)
8/31/20218/14/2028 (6)50,082 8,521 0.1 
849,027 881,633 814,248 4.8 
SS Acquisition, LLCSports and Recreation Instruction
First Lien Debt10.35%SOFR+6.00%12/20/202412/20/20291,357,143 1,350,402 1,350,402 7.9 
First Lien Debt (Revolver) (12)n/m (5)SOFR+6.00%12/20/202412/20/2029 (710)(710) 
1,357,143 1,349,692 1,349,692 7.9 
Tolemar Acquisition, Inc.Motorcycle, Bicycle, and Parts Manufacturing
First Lien Debt
10.46% Cash / 1.00% PIK
SOFR+6.00%10/14/202110/14/20261,311,608 1,306,942 1,239,469 7.3 
First Lien Debt (Revolver) (12)10.55%SOFR+6.00%10/14/202110/14/202688,235 87,764 80,956 0.5 
1,399,843 1,394,706 1,320,425 7.8 
TruGreen Limited PartnershipLandscaping Services
Second Lien Debt13.35%SOFR+8.50%5/13/202111/2/20281,500,000 1,524,232 1,431,000 8.4 
Wellful Inc. (F/K/A KNS Acquisition Corp.)Electronic Shopping and Mail-Order Houses
First Lien Debt9.48%SOFR+5.00%12/19/20244/19/2030406,334 406,334 406,334 2.4 
First Lien Debt10.72%SOFR+6.25%7/26/202110/19/2030621,955 621,955 621,955 3.7 
1,028,289 1,028,289 1,028,289 6.1 
Total Debt and Equity Investments$30,824,295 $30,641,906 $29,339,144 172.7 %
Structured Finance Securities (11)
Apex Credit CLO 2020 Ltd.
Subordinated Notes (14) (15)18.21%N/A11/16/20204/20/2035$3,650,000 $3,092,684 $2,542,284 15.0 %
Apex Credit CLO 2021 Ltd.
Subordinated Notes (14) (15)18.66%N/A5/28/20217/18/20341,480,000 1,097,629 905,908 5.3 
Apex Credit CLO 2022-1 Ltd.
Subordinated Notes (14) (15)13.26%N/A4/28/20224/22/20331,892,824 1,517,260 1,096,334 6.5 
16

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments
December 31, 2024
Portfolio Company (1) (8)
Investment Type
Industry
Interest Rate(3)
Spread Above Index (3)
Initial Acquisition DateMaturityPrincipal
Amount
Amortized Cost
Fair Value(4)
Percent of
Net Assets
CLO other (10)4.84%N/A$10,348 $18,975 0.1 %
Elevation CLO 2021-14, Ltd.
Subordinated Notes (14) (15)4.77%N/A9/21/202110/20/2034$1,750,000 1,337,887 705,025 4.1 
Elevation CLO 2021-15, Ltd.
Subordinated Notes (14) (15)4.84%N/A12/6/20211/5/20351,250,000 833,762 446,404 2.6 
Monroe Capital MML CLO X, Ltd.
Mezzanine Debt - Class E-R13.27%SOFR+8.75%4/22/20225/20/20341,000,000 977,577 999,968 5.9 
Total Structured Finance Securities$11,022,824 $8,867,147 $6,714,898 39.5 %
Total Investments$41,847,119 $39,509,053 $36,054,042 212.2 %

(1) The Company's investments are generally classified as “restricted securities” as such term is defined under Rule 6-03(f) of Regulation S-X or Rule 144 of the Securities Act. Equity ownership may be held in shares or units of companies affiliated with the portfolio company.
(2) The interest rate on this investment contains a PIK provision, whereby the issuer has the option to make interest payments in cash or with the issuance of additional securities as payment of the entire PIK provision. The interest rate in the schedule represents the current interest rate in effect for this investment. The following table provides additional details on this PIK investment, including the maximum annual PIK interest rate allowed as of December 31, 2024:
Portfolio CompanyInvestment TypeMaximum PIK
Rate Allowed
Range of PIK
Option
Range of Cash
Option
Inergex Holdings, LLCFirst Lien Debt2.00%
0% to 2.00%
11.47% to 13.47%
Inergex Holdings, LLCFirst Lien Debt (Revolver)2.00%
0% to 2.00%
11.74% to 13.74%
RumbleOn, Inc.First Lien Debt1.50%
0% to 1.50%
12.10% to 13.60%
RumbleOn, Inc.First Lien Debt1.50%
0% to 1.50%
12.10% to 13.60%
(3) A majority of the debt investments bear interest at rates determined by reference to SOFR or Prime, and reset monthly, quarterly, or semi-annually. For each variable-rate investment, the Company has provided the spread over the reference rate and current interest rate in effect at December 31, 2024.
(4) Unless otherwise noted in footnote 9, fair value was determined using significant unobservable inputs for all of the Company’s investments and are considered Level 3 under GAAP. See Note 5 for further details.
(5) Not meaningful as there is no outstanding balance on the revolver or delayed draw loan. The Company generally earns unfunded commitment fees on undrawn revolving lines of credit and delayed draw term loan balances, which are reported in fee income.
(6) Represents expiration date of the warrants.
(7) Non-income producing.
17

Hancock Park Corporate Income, Inc.
Consolidated Schedule of Investments
December 31, 2024
(8) Investments pledged as collateral under the Banc of California Credit Facility.
(9) Fair value was determined by reference to observable inputs other than quoted prices in active markets and are considered Level 2 under GAAP. See Note 5 for further details.
(10) Fair value represents discounted cash flows associated with fees earned from CLO equity related investments.
(11) Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets as defined in Section 55 of the 1940 Act must represent at least 70% of the Company's assets immediately following the acquisition of any additional non-qualifying assets. As of December 31, 2024, approximately 82% of the Company's assets were qualifying assets.
(12) Subject to unfunded commitments. The Company considers undrawn amounts in the determination of fair value on revolving lines of credit and delayed draw term loans. See Note 6.
(13) Investment held by HPCI-MB, a wholly owned subsidiary subject to corporate income tax.
(14) The rate disclosed on subordinated note investments is the estimated effective yield, generally established at purchase, and reevaluated upon the receipt of the initial distribution and each subsequent quarter thereafter. The estimated effective yield is based upon projected amounts and timing of future distributions and the projected amounts and timing of terminal principal payments at the time of estimation. The estimated effective yield and investment cost may ultimately not be realized. Projected cash flows, including the amounts and timing of terminal principal payments, which generally are projected to occur prior to the contractual maturity date, were utilized in deriving the effective yield of the investments.
(15) Amortized cost reflects accretion of effective yield less any cash distributions received or entitled to be received from CLO subordinated note investments. CLO subordinated note positions are entitled to recurring distributions, which are generally equal to the residual cash flow of payments received on underlying securities less contractual payments to debt holders and fund expenses.

See Notes to Consolidated Financial Statements (unaudited).
18

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)


Note 1. Organization
The Company is a Maryland corporation formed on December 8, 2015 as an externally managed, non-diversified, closed-end investment company. The Company has elected to be regulated as a BDC under the 1940 Act and as a RIC under Subchapter M of the Code.
The Company’s objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments, primarily in middle-market companies located principally in the United States. In addition, the Company may make investments in Structured Finance Securities.
OFS Advisor, an affiliate of the Company and a registered investment adviser, manages the day-to-day operations of, and provides investment advisory services to, the Company. In addition, OFS Advisor serves as the investment adviser to OFS Capital, a publicly traded BDC with an investment strategy similar to that of the Company. OFS Advisor also serves as the investment adviser to OCCI, a non-diversified, externally managed, closed-end management investment company that is registered as an investment company under the 1940 Act and primarily invests in Structured Finance Securities. Additionally, OFS Advisor serves as the investment adviser to separately-managed accounts and sub-adviser to investment companies managed by an affiliate.
The Company intends to raise up to $200,000,000 through offering shares of its common stock to investors in a continuous offering in reliance on exemptions from the registration requirements of the Securities Act. Since August 3, 2020, CCO has served as the dealer manager in the Offering. From time to time, the Company may enter into agreements with placement agents to sell, distribute and market shares of its common stock in the Offering. The Company may pay certain placement or “finder’s” fees to placement agents engaged by the Company in connection with the Offering. In addition, investors who are purchasing shares through a placement agent may be required to pay a fee or commission directly to the placement agent.
The Company may make investments through HPCI-MB, a wholly owned and consolidated subsidiary taxed under subchapter C of the Code that generally holds the Company’s equity investments in portfolio companies that are taxed as pass-through entities. Under normal market conditions, the Company will invest at least 80% of its total assets in “corporate income-related investments.” “Corporate income-related investments” are defined as loans, bonds and securities, such as subordinated debt and stock, where the counterparty is a corporate entity and the investment is expected to provide the Company with income over time. The Company intends for “corporate income related investments” to consist of investments in: (i) floating and fixed rate senior secured loans, which are comprised of first lien, second lien and unitranche loans of United States middle-market companies; (ii) broadly syndicated senior secured corporate loans; (iii) unsecured loans; (iv) collateralized loan obligation debt, subordinated debt, income notes and loan accumulation facility positions; (v) opportunistic credit investments, including stressed and distressed credit situations and long/short credit investments; and (vi) warrants and other equity securities of United States middle-market companies.
Note 2. Summary of Significant Accounting Policies
Basis of presentation: The accompanying interim consolidated financial statements of the Company and related financial information have been prepared in accordance with GAAP in the United States of America for interim financial information and pursuant to ASC Topic 946, Financial Services–Investment Companies, the requirements for reporting on Form 10-Q, and Articles 6, 10 and 12 of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. However, in the opinion of management, the consolidated financial statements include all adjustments, consisting only of normal and recurring accruals and adjustments, necessary for fair presentation as of, and for, the periods presented. These consolidated financial statements and notes hereto should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10 K for the year ended December 31, 2024, filed on March 14, 2025. The results of operations for any interim period are not necessarily indicative of the results of operations to be expected for the full year.
Significant Accounting Policies: The following information supplements the description of significant accounting policies contained in Note 2 to the Company's financial statements included in the Company's Annual Report on Form 10 K for the year ended December 31, 2024.
Reclassifications: Certain prior period amounts may have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes thereto. Reclassifications did not impact net increase (decrease) in net assets resulting from operations, total assets, total liabilities or total net assets, or consolidated statements of changes in net assets and consolidated statements of cash flows classifications.
Use of estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of investment income, expenses, gains and losses during the reporting period. Actual results could differ significantly from those estimates.
19

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Cash and cash equivalents: The Company’s cash and cash equivalent balances are maintained with a member bank of the Federal Deposit Insurance Corporation (“FDIC”) and such balances generally exceed the FDIC insurance limits. The Company does not believe its cash and cash equivalent balances are exposed to any significant credit risk. Cash and cash equivalent balances are held in a US Bank Trust Company, National Association money market deposit account.
Concentration of credit risk: Aside from the Company’s investments, financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at financial institutions. At various times during the year, the Company exceeds the federally insured limit. The Company places cash deposits only with high credit quality institutions that it believes will mitigate the risk of loss due to credit risk. If borrowers completely fail to perform according to the terms of the contracts, the amount of loss due to credit risk from the Company’s investments is equal to the sum of the Company’s recorded investments and the unfunded commitments disclosed in Note 6.
Note 3. Related Party Transactions
Investment Advisory and Management Agreement: OFS Advisor manages the day-to-day operations of, and provides investment advisory services to, the Company pursuant to an Investment Advisory Agreement, which became effective on August 30, 2016. Under the terms of the Investment Advisory Agreement, which are in accordance with the 1940 Act and subject to the overall supervision of the Board, OFS Advisor is responsible for sourcing potential investments, conducting research and diligence on potential investments and equity sponsors, analyzing investment opportunities, structuring investments, and monitoring investments and portfolio companies on an ongoing basis. OFS Advisor is a subsidiary of OFSAM and a registered investment advisor under the Advisers Act.
OFS Advisor’s services under the Investment Advisory Agreement are not exclusive to the Company and OFS Advisor is free to furnish similar services to other entities, including other funds advised or sub-advised by OFS Advisor, so long as its services to the Company are not impaired. OFS Advisor also serves as the investment adviser or sub-adviser to various clients, including OFS Capital and OCCI.
OFS Advisor receives fees for providing services to the Company, consisting of two components: a base management fee and an incentive fee. The base management fee is calculated at an annual rate of 1.25% and based on the average value of the Company’s total assets (other than cash and cash equivalents, but including assets purchased with borrowed amounts and including assets owned by any consolidated entity) at the end of the two most recently completed calendar quarters.
The incentive fee has two parts. The first part of the incentive fee (“Income Incentive Fee”) is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the immediately preceding calendar quarter. For this purpose, pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination and sourcing, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies, but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee, any expenses payable under the Administration Agreement and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee). Pre-incentive fee net investment income includes, in the case of investments with a deferred interest or dividend feature (such as OID, debt instruments with PIK interest, equity investments with accruing or PIK dividend and zero coupon securities), accrued income that the Company has not yet received in cash.
Pre-incentive fee net investment income is expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter. The incentive fee with respect to pre-incentive fee net income is 100.0% of the amount, if any, by which the pre-incentive fee net investment income for the immediately preceding calendar quarter exceeds a 1.75% (or 7.0% annualized) “hurdle rate” but is less than 2.1875% (or 8.75% annually), referred to as the “catch-up” provision, and 20.0% of the amount of pre-incentive fee net investment income, if any, that exceeds 2.1875%. The “catch-up” is meant to provide OFS Advisor with 20.0% of the pre-incentive fee net investment income as if a hurdle rate did not apply if pre-incentive fee net investment income exceeds 2.1875% in any calendar quarter. The Income Incentive Fee is calculated before the determination of any operating expense limitation under the Second Amended Expense Support Agreement, as further described below.
Pre-incentive fee net investment income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter in which the Company incurs a loss. For example, if the Company receives pre-incentive fee net investment income in excess of the quarterly minimum hurdle rate, the Company will pay the applicable incentive fee even if the Company has incurred a loss in that quarter due to realized and unrealized capital losses. The Company’s net investment income used to calculate this part of the incentive fee is also included in the amount of the Company’s gross assets used to calculate the base management fee. These calculations are appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during such quarter.
20

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

The second part of the incentive fee (the “Capital Gain Fee”) is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement, as of the termination date), and will equal 20.0% of the Company’s aggregate realized capital gains, if any, on a cumulative basis through the end of each calendar year, computed net of all realized capital losses, income taxes from realized capital gains and unrealized capital depreciation through the end of such year, less all previous amounts paid in respect of the Capital Gain Fee.
The Company accrues the Capital Gain Fee if, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) is positive. An accrued Capital Gain Fee relating to net unrealized appreciation is deferred, and not due to OFS Advisor, until the close of the year in which such gains are realized. If, on a cumulative basis, the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation) decreases during a period, the Company will reverse any excess Capital Gain Fee previously accrued such that the amount of Capital Gain Fee accrued is no more than 20% of the sum of net realized capital gains (losses) plus net unrealized appreciation (depreciation). Since inception through March 31, 2025, the Company has not made a Capital Gain Fee payment.
The Investment Advisory Agreement will remain in effect from year-to-year upon annual approval by the Board or by the affirmative vote of the holders of a majority of the Company’s outstanding voting securities, and, in either case, if also approved by a majority of the Company’s directors who are not “interested persons” as defined in the 1940 Act. The Board most recently approved the continuation of the Investment Advisory Agreement on April 3, 2025. The Investment Advisory Agreement will automatically terminate in the event of its assignment, as defined in the 1940 Act, and may be terminated by the Company or OFS Advisor without penalty upon not less than 60 days written notice to the other. The holders of a majority of our outstanding voting securities may also terminate the Investment Advisory Agreement without penalty upon not less than 60 days written notice.
Dealer Manager Agreement: Pursuant to the Dealer Manager Agreement, CCO provides certain sales, promotional and marketing services to the Company in connection with the Offering. The Company pays CCO an aggregate dealer manager fee of an amount up to 3.0% of the gross proceeds from sales of the Offering. CCO may, in its discretion, reallow a portion of the dealer manager fee to participating broker-dealers in support of the Offering.
Administration Agreement: OFS Services furnishes the Company with office facilities and equipment, necessary software licenses and subscriptions, and clerical, bookkeeping and record keeping services at such facilities pursuant to the Administration Agreement. The Board most recently approved the continuation of the Administration Agreement on April 3, 2025. Under the Administration Agreement, OFS Services performs, or oversees the performance of, the Company’s required administrative services, which include being responsible for the financial records that the Company is required to maintain and preparing reports to its stockholders and all other reports and materials required to be filed with the SEC or any other regulatory authority. In addition, OFS Services assists the Company in determining and publishing its net asset value, oversees the preparation and filing of its tax returns and the printing and dissemination of reports to its stockholders, and generally oversees the payment of the Company’s expenses and the performance of administrative and professional services rendered to the Company by others. Under the Administration Agreement, OFS Services also provides managerial assistance on the Company’s behalf to those portfolio companies that have accepted the Company’s offer to provide such assistance. Payment under the Administration Agreement is equal to an amount based upon the Company’s allocable portion of OFS Services’s overhead in performing its obligations under the Administration Agreement, including, but not limited to, rent, information technology services and the Company’s allocable portion of the cost of its officers, including its chief executive officer, chief financial officer, chief compliance officer, chief accounting officer, and their respective staffs. To the extent that OFS Services outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to OFS Services. Amounts charged under the Administration Agreement exclude Contractual Issuer Expenses.
Equity Ownership: As of March 31, 2025, affiliates of OFS Advisor held 74,084 shares of common stock, which is approximately 4.6% of the Company’s outstanding shares of common stock.
Expenses recognized under agreements with OFS Advisor and OFS Services and distributions paid to affiliates for the three months ended March 31, 2025 and 2024 are presented below:
Three Months Ended March 31,
20252024
Base management fees$115,524 $130,722 
Incentive fees(1)
40,651 119,805 
Administrative fees170,422 187,477 
Distributions paid to affiliates13,335 18,803 
(1) During the three months ended March 31, 2025 and 2024, incentives fees were comprised of Income Incentive Fees.
21

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Expense Limitation Agreements:
Expenses Limited under the Investment Advisory Agreement
The Investment Advisory Agreement provides expense support in regard to offering-related expenses, including Contractual Issuer Expenses and the amortization of deferred offering costs. Contractual Issuer Expenses are expensed as incurred and offering costs are deferred and amortized over the twelve-months following the period incurred on a straight-line basis. OFS Advisor’s obligation to provide expense support to the Company under the Investment Advisory Agreement can be terminated at any time.
Expense limitation provided under the Investment Advisory Agreement for the three months ended March 31, 2025 and 2024, is presented below:
Three Months Ended March 31,
20252024
Net offering costs and Contractual Issuer Expenses limitations$7,394 $66,479 
The Company is conditionally liable for offering costs and Contractual Issuer Expenses that OFS Advisor and affiliates have incurred, or OFS Advisor expects to incur, on its behalf, throughout the Offering. The Investment Advisory Agreement entitles OFS Advisor to receive up to 1.5% of the gross proceeds raised in the Offering until all reimbursable offering costs and Contractual Issuer Expenses paid have been recovered.
As of March 31, 2025 and December 31, 2024, the Company is conditionally obligated under the Investment Advisory Agreement to reimburse OFS Advisor for expense support as follows:
March 31, 2025December 31, 2024
Unreimbursed offering costs and Contractual Issuer Expenses$840,795 $875,049 
Unreimbursed offering costs and Contractual Issuer Expenses subject to conditional reimbursement as of March 31, 2025, are summarized below based on the period in which the costs were incurred:
Period IncurredUnreimbursed
Total
Expiration of Reimbursement
Eligibility(1)
Three months ended June 30, 2022$167,789 June 30, 2025
Three months ended September 30, 2022107,017 September 30, 2025
Three months ended December 31, 202261,052 December 31, 2025
Year ended December 31, 2023395,986 December 31, 2026
Year ended December 31, 2024103,240 December 31, 2027
Three months ended March 31, 20255,711 March 31, 2028
Total unreimbursed offering costs and Contractual Issuer Expenses$840,795 
(1) Expenses are pooled monthly for the determination of their reimbursement expiration date and are summarized into quarterly and yearly pools for presentation purposes. Expiration of reimbursement eligibility for portions of each pool occurs at each month-end within the periods presented above.
Expenses Limited under the Second Amended Expense Support Agreement
The Second Amended Expense Support Agreement provided expense support for all operating expenses not supported under the Investment Advisory Agreement through December 31, 2024.
On November 26, 2024, the Company and OFS Advisor entered into the ESA Termination Agreement to terminate the Second Amended Expense Support Agreement. Pursuant to the ESA Termination Agreement, the Company and OFS Advisor agreed to: (i) terminate the expense support provided by OFS Advisor effective January 1, 2025; and (ii) waive payment by the Company to OFS Advisor for any accrued and unpaid reimbursement payments (other than any reimbursement payments with respect to the quarter ending December 31, 2024, for which there were none).
In accordance with the ESA Termination Agreement, effective January 1, 2025, the Company was no longer conditionally obligated to reimburse OFS Advisor for previously provided operating support of $144,315.
No operating expense payments or reimbursements were provided for the three months ended March 31, 2025 and 2024.
22

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Note 4. Investments
As of March 31, 2025, the Company had loans to 25 portfolio companies, of which 63% were first lien loans and 37% were second lien loans, at fair value, respectively. The Company also had equity investments in five portfolio companies and investments in six Structured Finance Securities.
As of March 31, 2025, the Company’s investments consisted of the following:
Percentage of TotalPercentage of Total
Amortized CostAmortized CostNet AssetsFair ValueFair ValueNet Assets
First lien debt investments(1)
$18,959,248 47.4 %119.1 %$17,796,056 49.7 %111.8 %
Second lien debt investments11,483,986 28.8 72.1 10,513,438 29.3 66.0 
Preferred equity investments34,464 0.1 0.2 35,940 0.1 0.2 
Common equity and warrant investments340,671 0.9 2.1 431,743 1.2 2.7 
Total debt and equity investments30,818,369 77.2 193.5 28,777,177 80.3 180.7 
Structured Finance Securities9,111,435 22.8 57.2 7,051,733 19.7 44.3 
Total investments$39,929,804 100.0 %250.7 %$35,828,910 100.0 %225.0 %
(1) Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $12,211,489 and $11,919,661, respectively.
As of March 31, 2025, all of the Company’s debt and equity investments were domiciled in the United States, while its Structured Finance Securities were domiciled in the Cayman Islands. These CLO investments generally hold underlying portfolios of debt investments of United States domiciled companies. Geographic composition is determined by the location of the corporate headquarters of the portfolio company. The industry compositions of the Company’s portfolio were as follows:
Percentage of TotalPercentage of Total
IndustryAmortized CostAmortized CostNet AssetsFair ValueFair ValueNet Assets
Administrative and Support and Waste Management and Remediation Services$4,239,883 10.6 %26.7 %$4,134,720 11.6 %26.0 %
Education Services1,346,685 3.4 8.5 1,331,301 3.7 8.4 
Finance and Insurance1,323,880 3.3 8.3 1,338,409 3.7 8.4 
Health Care and Social Assistance7,000,643 17.5 44.0 6,604,464 18.5 41.5 
Information2,323,182 5.8 14.6 1,909,238 5.3 12.0 
Management of Companies and Enterprises1,453,993 3.6 9.1 1,412,700 3.9 8.9 
Manufacturing5,624,035 14.1 35.3 5,461,361 15.2 34.3 
Other Services (except Public Administration)1,423,561 3.6 8.9 1,425,000 4.0 8.9 
Professional, Scientific, and Technical Services1,626,219 4.1 10.2 1,640,231 4.6 10.3 
Public Administration46,403 0.1 0.3 4,150   
Retail Trade2,745,808 6.9 17.2 2,412,432 6.7 15.1 
Wholesale Trade1,664,077 4.2 10.4 1,103,171 3.1 6.9 
Total debt and equity investments$30,818,369 77.2 %193.5 %$28,777,177 80.3 %180.7 %
Structured Finance Securities9,111,435 22.8 57.2 7,051,733 19.7 44.3 
Total investments$39,929,804 100.0 %250.7 %$35,828,910 100.0 %225.0 %

23

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

As of December 31, 2024, the Company had loans to 25 portfolio companies, of which 63% were first lien loans and 37% were second lien loans, at fair value, respectively. The Company also had equity investments in five portfolio companies and six investments in Structured Finance Securities.
As of December 31, 2024, the Company's investments consisted of the following:
Percentage of TotalPercentage of Total
Amortized CostAmortized CostNet AssetsFair ValueFair ValueNet Assets
First lien debt investments(1)
$18,869,194 47.8 %111.0 %$18,050,368 50.1 %106.3 %
Second lien debt investments11,397,577 28.8 67.1 10,720,330 29.7 63.1 
Preferred equity investments34,464 0.1 0.2 35,763 0.1 0.2 
Common equity and warrant investments340,671 0.9 2.0 532,683 1.5 3.1 
Total debt and equity investments30,641,906 77.6 180.3 29,339,144 81.4 172.7 
Structured Finance Securities8,867,147 22.4 52.2 6,714,898 18.6 39.5 
Total investments$39,509,053 100.0 %232.5 %$36,054,042 100.0 %212.2 %
(1) Includes unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $12,118,634 and $12,008,672, respectively.
As of December 31, 2024, all of the Company’s debt and equity investments were domiciled in the United States, while its Structured Finance Securities were domiciled in the Cayman Islands. These CLO investments generally hold underlying portfolios of debt investments of United States domiciled companies. Geographic composition is determined by the location of the corporate headquarters of the portfolio company.
The industry compositions of the Company’s portfolio were as follows:
Percentage of TotalPercentage of Total
IndustryAmortized CostAmortized CostNet AssetsFair ValueFair ValueNet Assets
Administrative and Support and Waste Management and Remediation Services$4,239,721 10.8 %24.9 %$4,147,828 11.6 %24.4 %
Education Services1,349,692 3.4 7.9 1,349,692 3.7 7.9 
Finance and Insurance1,324,635 3.4 7.8 1,337,388 3.7 7.9 
Health Care and Social Assistance6,834,028 17.3 40.1 6,499,031 18.0 38.3 
Information2,321,216 5.9 13.7 1,994,116 5.5 11.7 
Management of Companies and Enterprises1,455,462 3.7 8.6 1,420,307 3.9 8.4 
Manufacturing5,616,422 14.2 33.1 5,492,911 15.2 32.4 
Other Services (except Public Administration)1,416,914 3.6 8.3 1,469,468 4.1 8.6 
Professional, Scientific, and Technical Services1,628,475 4.1 9.6 1,643,305 4.6 9.7 
Public Administration46,403 0.1 0.3 4,026   
Retail Trade2,745,264 6.9 16.2 2,734,340 7.6 16.1 
Wholesale Trade1,663,674 4.2 9.8 1,246,732 3.5 7.3 
Total debt and equity investments$30,641,906 77.6 %180.3 %$29,339,144 81.4 %172.7 %
Structured Finance Securities8,867,147 22.4 52.2 6,714,898 18.6 39.5 
Total investments$39,509,053 100.0 %232.5 %$36,054,042 100.0 %212.2 %
Non-Accrual Loans: Management reviews, for placement on non-accrual status, all loans and CLO mezzanine debt investments that become past due on principal and interest, and/or when there is reasonable doubt that principal or interest will be collected. When a loan is placed on non-accrual status, accrued and unpaid cash interest is reversed. Additionally, Net Loan Fees are no longer recognized as of the date the loan is placed on non-accrual status. Depending upon management’s judgment, interest payments subsequently received on non-accrual investments may be recognized as interest income or applied as a reduction to amortized cost. Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments and, in the judgment of management, it is probable that the Company will collect all principal and interest from the investment.
As of March 31, 2025 and December 31, 2024, the Company had no loans on non-accrual status.
24

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Portfolio Concentration: The following table presents the Company’s issuers based on fair value that comprise greater than 10% of the Company’s total net assets as of March 31, 2025.
Percentage of Total
Issuer NameInvestment TypeIndustryAmortized CostFair ValueFair ValueNet Assets
Apex Credit CLO 2020 Ltd.(1)
Subordinated NoteStructured Finance Securities$3,064,806 $2,407,946 6.7 %15.1 %
Convergint Technologies Holdings, LLCSecond Lien DebtAdministrative and Support and Waste Management and Remediation Services2,040,262 2,068,608 5.8 13.0 
Honor HN Buyer, Inc.(2)
First Lien DebtHealth Care and Social Assistance1,940,363 1,957,481 5.5 12.3 
BCPE North Star US Holdco 2, Inc. (F/K/A Dessert Holdings)Second Lien DebtIce Cream and Frozen Dessert Manufacturing1,710,697 1,764,583 4.9 11.1 
(1) As of March 31, 2025, approximately 12% and 27% of the Company’s total portfolio at fair value and its net assets, respectively, were comprised of Structured Finance Securities managed by a single adviser.
(2) As of March 31, 2025, the Company had an outstanding commitment of $86,634 related to the portfolio company’s revolver facility.
Note 5. Fair Value of Financial Instruments
The Company’s investments are carried at fair value and determined in accordance with ASC 820 and a documented valuation policy that is applied in a consistent manner. Pursuant to Rule 2a-5 of the 1940 Act (“Rule 2a-5”), the Board designated OFS Advisor as the valuation designee to perform fair value determinations relating to the Company’s investments, and the Board maintains oversight of OFS Advisor in its capacity as valuation designee, as prescribed in Rule 2a-5. The Company engages third-party valuation firms to provide assistance to OFS Advisor in determining the fair value for a majority of its investments.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values are determined with models or other valuation techniques, valuation inputs, and assumptions that market participants would use in pricing an asset or liability. Valuation inputs are organized in a hierarchy that gives the highest priority to prices for identical assets or liabilities quoted in active markets (Level 1) and the lowest priority to fair values based on unobservable inputs (Level 3). The three levels of inputs in the fair value hierarchy are described below:
Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.
Level 2: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability, and situations where there is little, if any, market activity for the asset or liability at the measurement date.
The inputs into the determination of fair value are based upon the best information under the circumstances and may require management to exercise significant judgment or estimation. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment. The Company generally categorizes its investment portfolio into Level 3, and to a lesser extent Level 2, of the hierarchy.
25

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

The Company assesses the levels of the investments at each measurement date, and transfers between levels are recognized on the measurement date. The following table presents the Company’s transfers of Level 2 and Level 3 debt investments for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31,
20252024
Transfers from Level 2 to Level 3$ $902,919 
Transfers from Level 3 to Level 2 2,807,458 
Transfers between levels during the reporting periods were due to the availability of reliable Indicative Prices in those periods. The Company classifies loan investments as Level 2 when sufficient Indicative Prices are available, and the depth of the market is sufficient, in management's judgment, to transact at those prices in amounts approximating the Company’s investment position at the measurement date.
Due to the inherent uncertainty of determining the fair value of Level 3 investments, the fair value of the investments may differ significantly from the values that would have been used had a ready market or observable inputs existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions, or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company might realize significantly less than the value at which such investment had previously been recorded and incur a realized capital loss. The Company’s investments are subject to market risk as a result of economic and political developments, including impacts from interest rate and inflation rate changes, the ongoing war between Russia and Ukraine, instability in the U.S. and international banking systems, the agenda of the new U.S. presidential administration, including the impact of tariff enactment and tax reductions, the risk of recession or a shutdown of U.S. government services and related market volatility. Market risk is directly impacted by the volatility and liquidity in the markets in which certain investments are traded and can affect the fair value of the Company’s investments. The Company’s investments are also subject to interest rate risk. Changes in interest rates, including potential additional interest rate reductions approved by the U.S. Federal Reserve, may impact its investment income, cost of funding and the valuation of its investment portfolio.
The following tables present the Company’s investment portfolio measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024, respectively:
SecurityLevel 1Level 2Level 3Fair Value as of March 31, 2025
Debt investments$ $4,680,148 $23,629,346 $28,309,494 
Equity investments  467,683 467,683 
Structured Finance Securities  7,051,733 7,051,733 
$ $4,680,148 $31,148,762 $35,828,910 
SecurityLevel 1Level 2Level 3Fair Value as of December 31, 2024
Debt investments$ $4,890,495 $23,880,203 $28,770,698 
Equity investments  568,446 568,446 
Structured Finance Securities  6,714,898 6,714,898 
$ $4,890,495 $31,163,547 $36,054,042 
26

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

The following tables provide the primary quantitative information about valuation techniques and the Company’s unobservable inputs to its Level 3 fair value measurements as of March 31, 2025 and December 31, 2024. The Company may make changes to the valuation techniques, among techniques otherwise commonly utilized in accordance with its valuation policies, and/or the weighting of techniques used for particular investments based on changes in facts-and-circumstances and depending on the availability of, or changes in, information in order to produce the best estimate of fair value as of the measurement date. In addition to the techniques and unobservable inputs noted in the tables below and in accordance with OFS Advisor’s valuation policy, OFS Advisor, as valuation designee, may also use other valuation techniques and methodologies when determining the fair value measurements of the Company’s investment assets. The tables are not intended to be all-inclusive and only present the most significant unobservable input(s) relevant to the valuation designee’s determination of fair value.
Fair Value as of March 31, 2025Valuation techniquesUnobservable inputRange
(Weighted average)
Debt investments:
First Lien$14,540,908 Discounted cash flowDiscount rates
8.78% - 35.00% (13.82%)
Second Lien6,067,500 Discounted cash flowDiscount rates
10.84% - 43.65% (16.42%)
1,256,355 Market approachEBITDA multiples
8.25x - 8.25x (8.25x)
1,764,583 Market approachTransaction Price
Structured Finance Securities(1):
Subordinated notes and other CLO equity related investments6,051,747 Discounted cash flowDiscount rates
9.94% - 32.50% (24.50%)
Constant default rate
2.00% - 2.00% (2.00%)
Recovery rate
65.00% - 65.00% (65.00%)
Mezzanine debt999,986 Discounted cash flowDiscount margin
8.75% - 8.75% (8.75%)
Constant default rate
3.00% - 3.00% (3.00%)
Recovery rate
65.00% - 65.00% (65.00%)
Equity investments:
Preferred equity35,940 Market approachEBITDA multiples
7.00x - 7.00x (7.00x)
Common equity and warrants431,743 Market approachEBITDA multiples
5.75x - 15.25x (9.71x)
$31,148,762 
(1) The cash flows utilized in the discounted cash flow calculations assume: (i) immediate liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.
27

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Fair Value as of December 31, 2024Valuation techniquesUnobservable inputsRange
(Weighted average)
Debt investments:
First lien$12,724,065 Discounted cash flowDiscount rates
9.01% - 32.50% (13.75%)
1,905,276 Market approachTransaction Price
Second lien8,094,849 Discounted cash flowDiscount rates
10.84% - 33.45% (14.56%)
1,156,013 Market approachEBITDA multiples
8.04x - 8.04x (8.04x)
Structured Finance Securities(1):
Subordinated notes and other CLO equity related investments5,714,930 Discounted cash flowDiscount rates
9.94% - 32.00% (25.81%)
Constant default rate
2.00% - 2.00% (2.00%)
Recovery rate
65.00% - 65.00% (65.00%)
Mezzanine debt999,968 Discounted cash flowDiscount margin
8.75% - 8.75% (8.75%)
Constant default rate
3.00% - 3.00% (3.00%)
Recovery rate
65.00% - 65.00% (65.00%)
Equity investments:
Preferred equity35,763 Market ApproachEBITDA multiples
7.00x - 7.00x (7.00x)
Common equity and warrants532,683 Market approachEBITDA multiples
5.85x - 15.75x (12.27x)
$31,163,547 
(1)    The cash flows utilized in the discounted cash flow calculations assume: (i) liquidation of (a) certain distressed investments and (b) all investments currently in default held by the issuing CLO at their current market prices; and (ii) redeployment of proceeds at the issuing CLO’s assumed reinvestment rate.
Averages in the preceding two tables were weighted by the fair value of the related instruments.
Changes in market credit spreads or events impacting the credit quality of the underlying portfolio company (both of which could impact the discount rate), as well as changes in enterprise value and/or EBITDA multiples, among other things, could have a significant impact on fair values, with the fair value of a particular debt investment susceptible to change in inverse relation to the changes in the discount rate. Changes in enterprise value and/or EBITDA multiples, as well as changes in the discount rate, could have a significant impact on fair values, with the fair value of an equity investment susceptible to change in tandem with the changes in enterprise value and/or EBITDA multiples, and in inverse relation to changes in the discount rate. Due to the wide range of approaches in developing input assumptions to these valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.
28

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

The following tables present changes in the investments measured at fair value using Level 3 inputs for the three months ended March 31, 2025 and 2024, respectively:
First Lien Debt InvestmentsSecond Lien Debt InvestmentsPreferred EquityCommon Equity and WarrantsStructured Finance SecuritiesTotal
Level 3 assets, December 31, 2024$14,629,341 $9,250,862 $35,763 $532,683 $6,714,898 $31,163,547 
Net realized losses on investments(267)    (267)
Net unrealized appreciation (depreciation) on investments(183,043)(242,184)177 (100,940)92,547 (433,443)
Amortization of Net Loan Fees23,799 16,705   4,005 44,509 
Capitalized PIK interest10,150 63,055    73,205 
Accretion of interest income on Structured Finance Securities    229,409 229,409 
Purchase of portfolio investments279,655    377,737 657,392 
Proceeds from principal payments on portfolio investments(214,087)    (214,087)
Proceeds from distributions received from portfolio investments    (366,863)(366,863)
Amendment fees received(4,640)    (4,640)
Level 3 assets, March 31, 2025
$14,540,908 $9,088,438 $35,940 $431,743 $7,051,733 $31,148,762 
First Lien Debt InvestmentsSecond Lien Debt InvestmentsPreferred EquityCommon Equity and WarrantsStructured Finance NotesTotal
Level 3 assets, December 31, 2023$19,960,500 $11,486,832 $34,410 $356,733 $7,096,541 $38,935,016 
Net unrealized appreciation (depreciation) on investments39,918 157,854 678 39,596 (149,476)88,570 
Amortization of Net Loan Fees28,494 12,612   4,049 45,155 
Capitalized PIK interest6,687 52,805    59,492 
Accretion of interest income on Structured Finance Securities    314,411 314,411 
Purchase of portfolio investments1,188,826     1,188,826 
Proceeds from principal payments on portfolio investments(146,246)(1,593,220)   (1,739,466)
Proceeds from distributions received from portfolio investments    (393,488)(393,488)
Amendment fees received(2,962)    (2,962)
Transfers from Level 3 to Level 2(2,807,458)    (2,807,458)
Transfers from Level 2 to Level 3902,919     902,919 
Level 3 assets, March 31, 2024
$19,170,678 $10,116,883 $35,088 $396,329 $6,872,037 $36,591,015 
29

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

The net unrealized appreciation (depreciation) reported in the Company’s consolidated statements of operations for the three months ended March 31, 2025 and 2024, attributable to the Company’s Level 3 assets still held at those respective period ends, was as follows:
Three Months Ended March 31,
20252024
Debt investments$(425,196)$223,862 
Equity investments(100,763)40,274 
Structured Finance Securities92,547 (149,476)
Net unrealized appreciation (depreciation) on investments held$(433,412)$114,660 
Other Financial Assets and Liabilities
GAAP requires disclosure of the fair value of financial instruments for which it is practical to estimate such values. The Company believes that the carrying amounts of its other financial instruments, such as cash, cash equivalents, receivables and payables, approximate the fair value of such items due to the short maturity of such financial instruments. The Banc of California Credit Facility is a variable rate instrument and fair value approximates book value as of March 31, 2025 and December 31, 2024.
The following tables present the fair value measurements of the Company’s debt and the level within the fair value hierarchy of the significant unobservable inputs used to determine such fair values as of March 31, 2025 and December 31, 2024:
March 31, 2025
DescriptionLevel 1Level 2
Level 3(1)
Total
Banc of California Credit Facility$ $ $4,265,000 $4,265,000 
Unsecured Note  14,495,673 14,495,673 
Total debt, at fair value$ $ $18,760,673 $18,760,673 
December 31, 2024
DescriptionLevel 1Level 2
Level 3(1)
Total
Banc of California Credit Facility$ $ $5,265,000 $5,265,000 
Unsecured Note  14,386,806 14,386,806 
Total debt, at fair value$ $ $19,651,806 $19,651,806 
(1) For Level 3 measurements, fair value is estimated by discounting remaining payments using current market rates for similar instruments at the measurement date and considering such factors as the legal maturity date.

The following table sets forth the carrying values and fair values of the Company’s debt as of March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
Description
Carrying Value(1)
Fair Value
Carrying Value(1)
Fair Value
Banc of California Credit Facility$4,265,000 $4,265,000 $5,265,000 $5,265,000 
Unsecured Note14,878,855 14,495,673 14,860,683 14,386,806 
Total debt$19,143,855 $18,760,673 $20,125,683 $19,651,806 
(1) Carrying value of the Unsecured Note is calculated as the outstanding principal amount less unamortized deferred debt issuance costs.
The information presented should not be interpreted as an estimate of the fair value of the entire Company since fair value measurements are only required for a portion of the Company’s assets and liabilities. Due to the wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.
30

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Note 6. Commitments and Contingencies
The following table presents the Company’s outstanding commitments to fund investments to portfolio companies as of March 31, 2025:
Portfolio CompanyInvestment TypeCommitment
Associated Springs, LLCFirst Lien Debt (Delayed Draw)$431,034 
Boca Home Care Holdings, Inc.First Lien Debt (Revolver)129,032 
Clevertech Bidco, LLCFirst Lien Debt (Revolver)126,033 
Honor HN Buyer Inc.First Lien Debt (Revolver)86,634 
Medrina LLCFirst Lien Debt (Revolver)106,383 
Medrina LLCFirst Lien Debt (Delayed Draw)25,532 
SS Acquisition, LLCFirst Lien Debt (Revolver)142,857 
Tolemar Acquisition, Inc.First Lien Debt (Revolver)44,118 
$1,091,623 
As of March 31, 2025, the Company had cash and cash equivalents of $364,456 and an unused commitment of $10,735,000 under the Banc of California Credit Facility, subject to the terms of the borrowing base, to fund these outstanding commitments to portfolio companies.
The following table shows the Company’s outstanding commitments to fund investments to portfolio companies as of December 31, 2024:
Portfolio CompanyInvestment TypeCommitment
Associated Springs, LLCFirst Lien Debt (Delayed Draw)$431,035 
Boca Home Care Holdings, Inc.First Lien Debt (Revolver)129,032 
Clevertech Bidco, LLCFirst Lien Debt (Revolver)126,033 
Honor HN Buyer Inc.First Lien Debt (Revolver)86,634 
Medrina LLCFirst Lien Debt (Revolver)106,383 
Medrina LLCFirst Lien Debt (Delayed Draw)148,936 
SS Acquisition, LLCFirst Lien Debt (Revolver)142,857 
Tolemar Acquisition, Inc.First Lien Debt (Revolver)44,118 
$1,215,028 
Legal and regulatory proceedings: From time to time, the Company is involved in legal proceedings in the normal course of its business. Although the outcome of such litigation cannot be predicted with any certainty, management is of the opinion, based on the advice of legal counsel, that final disposition of any litigation should not have a material adverse effect on the financial position of the Company as of March 31, 2025.
Additionally, the Company is subject to periodic inspection by regulators to assess compliance with applicable BDC regulations.
Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. The Company believes the risk of any material obligation under these indemnifications to be low.
Note 7. Borrowings
Banc of California Credit Facility: On September 12, 2018, the Company entered into the Banc of California Credit Facility. The Banc of California Credit Facility currently bears interest at a variable rate of the Prime Rate plus a 0.25% margin, with a 5.0% floor, and includes an annual commitment fee of 0.50% (based upon the current maximum principal amount of the facility). The Banc of California Credit Facility is scheduled to mature on February 28, 2026.
31

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

On December 17, 2024, the Company amended the Banc of California Credit Facility to, among other things: (i) decrease the maximum commitment amount from $20,000,000 to $15,000,000; (ii) decrease the minimum tangible net asset value covenant from $15,000,000 to $12,000,000; and (iii) decrease the covenant requiring minimum quarterly net investment income after management/incentive fees from $300,000 to $200,000.
The maximum availability of the Banc of California Credit Facility is equal to 50% of the aggregate outstanding principal amount of eligible loans included in the borrowing base, which typically excludes Structured Finance Securities and as otherwise specified in the BLA, subject to an overall maximum principal amount of $15,000,000. The Company has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.
As of March 31, 2025 and December 31, 2024, the Company had outstanding debt under the Banc of California Credit Facility of $4,265,000 and $5,265,000, respectively. As of March 31, 2025, the unused commitment under the Banc of California Credit Facility was $10,735,000, subject to the terms of the borrowing base and other covenants.
For the three months ended March 31, 2025 and 2024, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the Banc of California Credit Facility were as follows:
Three Months Ended March 31,
20252024
Stated interest expense$89,598 $173,631 
Amortization of debt issuance costs20,224 25,366 
Total interest and debt financing costs$109,822 $198,997 
Cash paid for interest expense$92,580 $172,353 
Effective interest rate9.46 %10.14 %
Average outstanding balance$4,709,444 $7,850,714 
Unsecured Note: On November 27, 2019, the Company entered into the Note Purchase Agreement under which the Company sold the Unsecured Note. The Unsecured Note bears interest at a fixed rate of 5.50% and matures on November 27, 2026.
The Company may, at its option, upon notice to the purchaser, redeem at any time all, or from time to time, any part of, the Unsecured Note, in an amount not less than 10% of the aggregate principal amount of the Unsecured Note then outstanding in the case of a partial redemption, at 100% of the principal amount so redeemed, together with interest on such Unsecured Note accrued to, but excluding, the date of redemption, and with no redemption settlement amount paid by the Company in connection with any such redemption. Fees and legal costs incurred with the Unsecured Note are amortized over the life of the facility.
The Note Purchase Agreement, as amended, contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants, such as information reporting, maintenance of the Company’s status as a business development company within the meaning of the 1940 Act and a minimum asset coverage ratio. The Note Purchase Agreement, as amended, also contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, certain judgements and orders and certain events of bankruptcy.
On each of March 31, 2025 and December 31, 2024, the Company’s Unsecured Note had an aggregate outstanding principal of $15,000,000.
For the three months ended March 31, 2025 and 2024, the components of interest expense, cash paid for interest, average interest rates and average outstanding balances for the Unsecured Note were as follows:
Three Months Ended March 31,
20252024
Stated interest expense$206,250 $206,250 
Amortization of debt issuance costs18,172 18,172 
   Total interest and debt financing costs$224,422 $224,422 
Cash paid for interest expense$206,250 $206,250 
Effective interest rate5.98 %5.98 %
Average outstanding balance$15,000,000 $15,000,000 
32

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

For the three months ended March 31, 2025 and 2024, the average dollar borrowings and weighted average effective interest rate on the Company’s outstanding borrowings were as follows:
Three Months Ended March 31,
20252024
Average dollar borrowings$19,709,444 $22,850,714 
Weighted average effective interest rate6.88 %7.41 %
Note 8. Financial Highlights
The following is a schedule of financial highlights for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31,
20252024
Per Share Operating Performance:
Net asset value per share at beginning of period
$10.21 $10.49 
Net investment income(1)
0.18 0.26 
Net realized loss, net of taxes(1)(9)
  
Net unrealized appreciation (depreciation) on investments, net of deferred taxes(1)
(0.37)0.01 
Total net income (loss) from operations(1)
(0.19)0.27 
Distributions(2)
(0.18)(0.25)
Repurchase of common stock(1)(3)
(0.01)(0.01)
Net asset value per share at end of period$9.83 $10.50 
Total return based on net asset value(4)(5)
(2.0)%2.5 %
Shares outstanding at end of period1,620,078 1,786,974 
Weighted average shares outstanding1,661,676 1,832,927 
Ratio/Supplemental Data
Average net asset value(6)
$16,458,256 $19,003,043 
Net asset value at end of period
$15,925,507 $18,758,599 
Net investment income
$298,616 $479,221 
Ratio of net operating expenses to average net assets(7)
22.5 %24.4 %
Ratio of net investment income to average net assets(7)
7.3 %10.1 %
Portfolio turnover(8)
1.6 %2.9 %
(1)Calculated on the average share method.
(2)The per share data for distributions is the actual amount of distributions declared per share during the period. The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI for the full year and distributions paid for the full year.
(3)The repurchase of common stock on a per share basis reflects the incremental net asset value change as a result of the retirement of shares from the Company’s repurchases of common stock, the dilutive or anti-dilutive impact from significant changes in weighted-average shares outstanding during the period, and the difference between the per share amount distributed to common stockholders of record and the per share amount distributed based on the weighted-average shares of common stock outstanding during the applicable period.
(4)Calculated as ending net asset value less beginning net asset value, adjusting for cumulative monthly distributions reinvested at the Company’s quarter-end net asset value.
(5)Not annualized.
(6)Based on the average of the net asset value at the beginning and end of the indicated period and, if applicable, the preceding calendar quarters.
(7)Annualized.
(8)Portfolio turnover rate is calculated using the lesser of period-to-date sales, portfolio investment distributions and principal payments or period-to-date purchases over the average of the total investments at fair value.
(9)For the three months ended March 31, 2025 and 2024, net realized loss, net of taxes, rounds to less than $0.01 per common share.
33

Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Note 9. Capital Transactions
Common Stock Transactions
During the three months ended March 31, 2025 and 2024, the Company did not sell or issue any share shares of common stock in the Offering.
Repurchases of Shares
The following table summarizes the common stock repurchases by the Company for the three months ended March 31, 2025 and 2024:
Three Months Ended March 31,
20252024
SharesAmountSharesAmount
Repurchase of common stock44,045 $448,381 48,625 $514,943 
All repurchased shares were retired upon acquisition.
Distributions
The following table reflects the cash distributions per share that the Company declared on its common stock during the three months ended March 31, 2025 and 2024. Stockholders of record as of each respective record date were entitled to receive the distribution.
Date DeclaredRecord DatesPayment DatePer Share AmountCash Distribution
Three Months Ended March 31, 2025
January 29, 2025January 29, 2025April 15, 2025$0.06 $99,846 
February 26, 2025February 26, 2025April 15, 20250.06 99,846 
March 27, 2025March 27, 2025April 15, 20250.06 97,206 
Total$0.18 $296,898 
Three Months Ended March 31, 2024
January 27, 2024January 29, 2024February 5, 2024$0.0846 $155,292 
February 27, 2024February 27, 2024March 5, 20240.0846 155,292 
March 27, 2024March 27, 2024April 5, 20240.0846 151,178 
Total$0.2538 $461,762 
The Second Amended Expense Support Agreement was designed to ensure no portion of the Company’s distribution to stockholders were paid from Offering proceeds (i.e., no return of capital), and provided expense reduction payments to the Company in any quarterly period in which the Company’s aggregate distributions to stockholders exceeds the Company’s cumulative ICTI and net realized gains.
On November 26, 2024, the Company and OFS Advisor entered into the ESA Termination Agreement to terminate the Second Amended Expense Support Agreement effective January 1, 2025. Effective upon the termination date, OFS Advisor is no longer obligated to provide expense support payments to the Company under the Second Amended Expense Support Agreement.
The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its estimated ICTI for the full year and distributions paid for the full year. Each year, a statement on Form 1099-DIV identifying the tax character of distributions is mailed to the Company’s stockholders.
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Hancock Park Corporate Income, Inc.
Notes to Consolidated Financial Statements (unaudited)

Note 10. Subsequent Events Not Disclosed Elsewhere
On April 26, 2025, the Board declared a distribution of $0.06 per common share, which represents a 6.5% annualized distribution yield based on the Company’s common stock offering price as of April 29, 2025, which will be paid on July 15, 2025 to stockholders of record on April 28, 2025.
On May 7, 2025, the Board approved a tender offer, commencing on May 29, 2025, to purchase 2.5% of the weighted average number of shares of the outstanding common stock for the trailing 12-month period ending March 31, 2025.
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Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes thereto contained elsewhere in this Quarterly Report on Form 10-Q. For additional overview information on the Company, see “Item 1. Business” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 14, 2025.
Overview
Key performance metrics per common share are presented below:
March 31, 2025December 31, 2024
Net asset value$9.83 $10.21 
Three Months Ended
March 31, 2025December 31, 2024
Net investment income $0.18 $0.23 
Net increase (decrease) in net assets resulting from operations(0.19)0.46 
Distributions declared0.18 0.25 
Our NAV per common share decreased from $10.21 at December 31, 2024 to $9.83 at March 31, 2025, primarily due to a net loss on investments of $0.37 per common share.
For the three months ended March 31, 2025, total investment income decreased $165,419 compared to the prior quarter, primarily attributable to the impact of lower SOFR rates driven by the U.S. Federal Reserve rate cuts enacted in the fourth quarter of 2024. See “—Results of Operations” for additional information.
For the three months ended March 31, 2025, we recognized a net loss on investments of $618,834, primarily due to net unrealized depreciation of $645,883. The net unrealized depreciation was comprised of net unrealized depreciation of $738,431 on our debt and equity securities, partially offset by net unrealized appreciation of $92,547 on our Structured Finance Securities.
As of March 31, 2025, we had no loans on non-accrual status. See “—Portfolio Composition and Investment Activity” for additional information.
Our total outstanding debt decreased from $20,265,000 at December 31, 2024 to $19,265,000 at March 31, 2025. For the three months ended March 31, 2025, our weighted-average debt interest costs of 6.9% remained stable, compared to 7.0% during the prior quarter. As of March 31, 2025, 78% of our total outstanding debt was fixed rate and of our total outstanding debt 100% contractually matures in 2026.
As of March 31, 2025, our asset coverage ratio of 183% exceeded the minimum asset coverage requirement of 150% under the 1940 Act, and we remained in compliance with all applicable covenants under our outstanding debt facilities. As of March 31, 2025, we had an unused commitment of $10,735,000 under our Banc of California Credit Facility, subject to the terms of the borrowing base and other covenants. As of March 31, 2025, we had unfunded commitments of $1,091,623 to fund various undrawn revolvers and other portfolio investments. We continue to believe that we have sufficient levels of liquidity to support our commitments to existing portfolio companies and selectively deploy capital in new investment opportunities. See “—Liquidity and Capital Resources” for additional information.
On April 26, 2025, our Board declared a distribution of $0.06 per common share, which represents a 6.5% annualized distribution yield based on our common stock offering price as of April 29, 2025, which will be paid on July 15, 2025 to stockholders of record on April 28, 2025.
On May 7, 2025, our Board approved a tender offer, commencing on May 29, 2025, to purchase 2.5% of the weighted average number of shares of the outstanding common stock for the trailing 12-month period ending March 31, 2025.
Related Party Transactions
We have entered into a number of business relationships with affiliated or related parties, including the following:
The Investment Advisory Agreement with OFS Advisor to manage our operating and investment activities. Under the Investment Advisory Agreement, we have agreed to pay OFS Advisor an annual base management fee based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity) as well as an
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incentive fee based on our investment performance. See “Item 1. Financial Statements––Notes to Consolidated Financial Statements— Note 3.”
The Dealer Manager Agreement with CCO, an affiliate of OFS Advisor, to provide sales, promotional and marketing services to us in connection with the Offering. See “Item 1. Financial Statements––Notes to Consolidated Financial Statements— Note 3.”
The Administration Agreement with OFS Services, an affiliate of OFS Advisor, to provide us with the office facilities and administrative services necessary to conduct our operations. See “Item 1. Financial Statements—Notes to Consolidated Financial Statements—Note 3.”
Expense Limitation Agreement: OFS Advisor limits certain of our incurred expenses under the Investment Advisory Agreement which contains provisions limiting organization and offering costs and Contractual Issuer Expenses. The agreement contains conditions pursuant to which we may become obligated to reimburse OFS Advisor for expense limitation provided thereunder. See “Item 1. Financial Statements—Notes to Consolidated Financial Statements—Note 3.
The Second Amended Expense Support Agreement limited certain operating expenses. On November 26, 2024, we entered into the ESA Termination Agreement with OFS Advisor to terminate the Second Amended Expense Support Agreement effective January 1, 2025.
OFS Advisor’s services under the Investment Advisory Agreement are not exclusive to us and OFS Advisor is free to furnish similar services to other entities, including other funds advised or sub-advised by OFS Advisor, so long as its services to us are not impaired. OFS Advisor also serves as the investment adviser to other funds, including OFS Capital and OCCI. Additionally, OFS Advisor provides sub-advisory services to: (i) CMFT Securities Investments, LLC, a wholly owned subsidiary of CIM Real Estate Finance Trust, Inc., a corporation that qualifies as a real estate investment trust; and (ii) CIM Real Assets & Credit Fund, an externally managed registered investment company that operates as an interval fund that invests primarily in a combination of real estate, credit and related investments. 
The 1940 Act generally prohibits BDCs from making certain negotiated co-investments with certain affiliates absent an order from the SEC permitting the BDC to do so. On August 4, 2020, we received our existing Order, which superseded a previous order that we received on October 12, 2016, and provides us with greater flexibility to enter into co-investment transactions with certain Affiliated Funds in a manner consistent with our investment objective, positions, policies, strategies and restrictions as well as regulatory requirements and other pertinent factors, subject to compliance with certain conditions. We are generally permitted to co-invest with Affiliated Funds if, under the terms of the Order, a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including that: (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned; (2) the transaction is consistent with the interests of our stockholders and is consistent with our investment objective and strategies; (3) the investment by our affiliates would not disadvantage us, and our participation would not be on a basis different from or less advantageous than that on which our affiliates are investing; and (4) the proposed investment by us would not benefit OFS Advisor, the other Affiliated Funds that are participating in the investment, or any affiliated person of any of them (other than parties to the transaction), except to the extent permitted by the exemptive relief and applicable law, including the limitations set forth in Section 57(k) of the 1940 Act.
In addition, we may file an application for an amendment to our existing Order to permit us to co-invest in our existing portfolio companies with certain affiliates that are private funds even if such other funds had not previously invested in such existing portfolio companies, subject to certain conditions. However, if filed, there is no guarantee that such application will be granted.
Conflicts may arise when an account managed by OFS Advisor makes an investment in conjunction with an investment being made by an Affiliated Account, or in a transaction where an Affiliated Account has already made an investment. Investment opportunities are, from time to time, appropriate for more than one account in the same, different or overlapping securities of a portfolio company’s capital structure. Conflicts arise in determining the terms of investments, particularly where these accounts may invest in different types of securities in a single portfolio company. Potential conflicts arise when addressing, among other things, questions as to whether payment obligations and covenants should be enforced, modified or waived, or whether debt should be restructured, modified or refinanced. For additional information see “Item 1. Business—Regulation—Conflicts of Interest” and “Item 1A. Risk Factors—Risks Related to OFS Advisor and its Affiliates—We have potential conflicts of interest related to obligations that OFS Advisor or its affiliates may have to other clients” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 14, 2025.
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Critical Accounting Policies and Estimates
Our critical accounting policies and estimates are those relating to revenue recognition, expense limitation agreements and fair value estimates. Management has discussed the development and selection of each critical accounting policy and estimate with the Audit Committee of the Board. For descriptions of our revenue recognition and fair value policies, see “Item 8. Financial Statements—Notes to Consolidated Financial Statements—Note 2” and “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations— Critical Accounting Policies and Significant Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 14, 2025.
The following table illustrates the impact of our fair value measures if we selected the low or high end of the range of values for all investments as of March 31, 2025:
Fair Value as of March 31, 2025Range of Fair Value
Investment Type
Low-endHigh-end
Debt investments:   
First lien$17,796,056 $17,523,858 $18,064,759 
Second lien10,513,438 10,277,737 10,746,995 
Structured Finance Securities:
Subordinated notes and other CLO equity related investments6,051,747 5,746,292 6,357,204 
Mezzanine debt999,986 980,531 1,019,441 
Equity investments:
Preferred equity35,940 35,940 35,940 
Common equity and warrants431,743 379,561 484,034 
$35,828,910 $34,943,919 $36,708,373 
Portfolio Composition and Investment Activity
Portfolio Composition
The following table summarizes the composition of our investment portfolio as of March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
Amortized CostFair ValueAmortized CostFair Value
First lien debt investments(1)
$18,959,248 $17,796,056 $18,869,194 $18,050,368 
Second lien debt investments11,483,986 10,513,438 11,397,577 10,720,330 
Preferred equity investments34,464 35,940 34,464 35,763 
Common equity and warrant investments340,671 431,743 340,671 532,683 
Total Portfolio Company Investments30,818,369 28,777,177 30,641,906 29,339,144 
Structured Finance Securities9,111,435 7,051,733 8,867,147 6,714,898 
Total Investments$39,929,804 $35,828,910 $39,509,053 $36,054,042 
Total number of Portfolio Companies and Structured Finance Securities 34 34 34 34 
(1) As of March 31, 2025 and December 31, 2024, first lien debt investments include unitranche investments (which are loans that combine both senior and subordinated debt, in a first lien position) with an amortized cost and fair value of $12,211,489 and $11,919,661, respectively, and $12,118,634 and $12,008,672, respectively.

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As of March 31, 2025, 100% and 79% of our loan portfolio and total portfolio consisted of first lien and second lien debt investments, respectively, based on fair value.
As of March 31, 2025, the three largest industries of our Portfolio Company Investments by fair value, were: (1) Health Care and Social Assistance of 23.0%; (2) Manufacturing of 19.0%; and (3) Administrative and Support and Waste Management and Remediation Services of 14.4%, totaling an aggregate of approximately 56.4% of our debt and equity investment portfolio. For a full summary of our investment portfolio by industry, see “Item 1. Financial Statements—Note 4.”
The following table presents our ten largest investments by issuer based on fair value as of March 31, 2025:
Issuer NameTypeAmortized CostFair Value% of Total Portfolio, at Fair Value% of Net Assets, at Fair Value
Apex Credit CLO 2020 Ltd.(1)
Structured Finance Security$3,064,806 $2,407,946 6.7 %15.1 %
Convergint Technologies Holdings, LLCDebt2,040,262 2,068,608 5.8 13.0 
Honor HN Buyer, Inc.Debt1,940,363 1,957,481 5.5 12.3 
BCPE North Star US Holdco 2, Inc. (F/K/A Dessert Holdings)Debt1,710,697 1,764,583 4.9 11.1 
Heritage Grocers Group, LLC (F/K/A Tony's Fresh Market / Cardenas Markets)Debt1,716,352 1,540,652 4.3 9.7 
BayMark Health Services, Inc.Debt1,671,822 1,479,721 4.1 9.2 
Asurion, LLCDebt1,423,561 1,425,000 4.0 8.9 
TruGreen Limited PartnershipDebt1,522,675 1,416,000 4.0 8.9 
One GI LLCDebt1,453,993 1,412,700 3.9 8.8 
Clevertech Bidco, LLCDebt1,323,880 1,338,409 3.7 8.4 
  Total$17,868,411 $16,811,100 46.9 %105.4 %
(1) As of March 31, 2025, approximately 12.1% and 27.1% of our total portfolio at fair value and net assets, respectively, were comprised of Structured Finance Securities managed by a single adviser.
A deterioration or improvement in the operating performance of these portfolio investments, or other factors underlying the valuation of these investments, could have a material impact on our NAV.
Structured Finance Securities
The following table summarizes the composition of our Structured Finance Securities as of March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
Amortized CostFair ValueAmortized CostFair Value
Subordinated notes and other CLO equity related investments$8,129,854 $6,051,747 $7,889,570 $5,714,930 
Mezzanine debt981,581 999,986 977,577 999,968 
Total Structured Finance Securities$9,111,435 $7,051,733 $8,867,147 $6,714,898 
Number of Structured Finance Security Issuers
Non-performing Structured Finance Securities are securities that have not been optionally redeemed and have an effective yield of 0.0%, as remaining residual distributions are anticipated to be recognized as a return of capital. As of March 31, 2025, we had no non-performing Structured Finance Securities.

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Portfolio Yields
The following table presents weighted-average yield metrics for our investment portfolio for the three months ended March 31, 2025 and December 31, 2024:
For the Three Months Ended
March 31, 2025December 31, 2024
Weighted-average performing income yield(1):
Debt investments12.5 %13.2 %
Structured Finance Securities11.9 13.4 
Interest-bearing investments12.3 %13.2 %
Weighted-average realized yield(2):
Interest-bearing investments12.3 %13.2 %
(1)    Performing income yield is calculated as (a) the actual amount earned on performing interest-bearing investments, including interest, prepayment fees and amortization of Net Loan Fees, divided by (b) the weighted-average of total performing interest-bearing investments at amortized cost.
(2)    Realized yield is calculated as (a) the actual amount earned on interest-bearing investments, including interest, prepayment fees and amortization of Net Loan Fees, divided by (b) the weighted-average of total interest-bearing investments at amortized cost, in each case, including debt investments on non-accrual status and non-performing Structured Finance Securities.
For the three months ended March 31, 2025, the weighted average performing income yield on interest-bearing investments decreased to 12.3% from 13.2% during the prior quarter, primarily due to an aggregate 50 basis point reduction in the U.S. Federal Reserve target federal funds rate enacted during the prior quarter. As of March 31, 2025, 96% of our total loan portfolio, at fair value, consisted of variable rate investments, generally indexed to SOFR. See additional information under “Item 3. Quantitative and Qualitative Disclosures About Market Risk”.
Weighted-average yields of our investments are not the same as a return on investment for our stockholders, but rather the gross investment income from our investment portfolio before the payment of all of our fees and expenses. There can be no assurance that the weighted average yields will remain at their current levels.
Investment Activity
The following is a summary of our investment activity for the three months ended March 31, 2025 and March 31, 2024:
For the Three Months Ended
March 31, 2025March 31, 2024
Investments in debt and equity securities$279,655 $1,188,826 
Investments in Structured Finance Securities377,737 — 
Total investment purchases and originations$657,392 $1,188,826 
Proceeds from principal payments on portfolio investments$224,070 $3,300,558 
Proceeds from distributions received from portfolio investments366,863 393,488 
Total proceeds from principal payments and distributions received from portfolio investments$590,933 $3,694,046 

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We categorize debt investments into seven risk categories based on relevant information about the ability of borrowers to service their debt. For additional information regarding our risk categories, see “Item 1. Business—Portfolio Review/Risk Monitoring” in our Annual Report on Form 10-K for the year ended December 31, 2024. The following table shows the classification of our debt securities, excluding Structured Finance Securities, by credit risk rating as of March 31, 2025 and December 31, 2024:
Debt Investments
March 31, 2025December 31, 2024
Risk CategoryAmortized CostFair Value% of Debt Investments, at Fair ValueAmortized CostFair Value% of Debt Investments, at Fair Value
1 (Low Risk)$— $— — %$— $— — %
2 (Below Average Risk)
— — — — — — 
3 (Average)23,095,563 22,593,077 79.8 22,994,301 22,906,190 79.6 
4 (Special Mention)7,347,671 5,716,417 20.2 7,272,470 5,864,508 20.4 
5 (Substandard)— — — — — — 
6 (Doubtful)— — — — — — 
7 (Loss)— — — — — — 
$30,443,234 $28,309,494 100.0 %$30,266,771 $28,770,698 100.0 %
Non-Accrual Loans
Management reviews, for placement on non-accrual status, all loans and CLO mezzanine debt investments that become past due on principal and interest, and/or when there is reasonable doubt that principal or interest will be collected. When a loan is placed on non-accrual status, accrued and unpaid cash interest is reversed. Additionally, Net Loan Fees are no longer recognized as of the date the loan is placed on non-accrual status. Depending upon management’s judgment, interest payments subsequently received on non-accrual investments may be recognized as interest income or applied as a reduction to amortized cost. Interest accruals and Net Loan Fee amortization are resumed on non-accrual investments only when they are brought current with respect to principal and interest payments and, in the judgment of management, it is probable that the Company will collect all principal and interest from the investment. For the three months ended March 31, 2025, no loans were placed on non-accrual status.
As of March 31, 2025 and December 31, 2024, we had no debt investments on non-accrual status.
Results of Operations
Our key financial measures are described in “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Key Financial Measures” in our Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 14, 2025. The following is a discussion of the key financial measures that management uses in reviewing the performance of our operations.
We do not believe that our historical operating performance is necessarily indicative of our future results of operations. We are primarily focused on debt investments in middle-market and larger companies in the United States and, to a lesser extent, equity investments, including warrants and other minority equity securities. In addition, we may make investments in Structured Finance Securities. Moreover, as a BDC and a RIC, we are also subject to certain constraints on our operations, including, but not limited to, limitations imposed by the 1940 Act and the Code. For the reasons described above, the results of operations described below may not necessarily be indicative of the results we expect to report in future periods.
Net increase (decrease) in net assets resulting from operations can vary substantially from period to period for various reasons, including the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, comparisons of net increase (decrease) in net assets resulting from operations may not be meaningful.
The following analysis compares our quarterly results of operations to the preceding quarter, as well as our year-to-date results of operations to the corresponding period in the prior year. We believe a comparison of our current quarterly results to the preceding quarter is more meaningful and transparent than a comparison to the corresponding prior-year quarter as our results of operations are not influenced by seasonal factors the latter comparison is designed to elicit and highlight.
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Comparison of the three months ended March 31, 2025, December 31, 2024 and March 31, 2024
Three Months Ended
March 31, 2025December 31, 2024March 31, 2024
Interest income$1,147,733 $1,286,489 $1,548,674 
PIK interest income73,205 68,584 59,614 
Dividend income1,072 1,066 1,050 
Fee income2,170 33,460 29,335 
Total investment income1,224,180 1,389,599 1,638,673 
Total operating expenses932,958 1,005,254 1,225,931 
Net expense limitation(7,394)(6,294)(66,479)
Net investment income298,616 390,639 479,221 
Net gain (loss) on investments(618,834)394,660 8,597 
Net increase (decrease) in net assets resulting from operations$(320,218)$785,299 $487,818 
Investment Income
For the three months ended March 31, 2025, interest income decreased $138,756 compared to the prior quarter, primarily attributable to the impact of lower SOFR rates driven by the U.S. Federal Reserve rate cuts enacted in the fourth quarter of 2024.
For the three months ended March 31, 2025, fee income decreased $31,290 compared to the prior quarter, primarily due to no syndication or prepayment fees recognized during the current quarter.
Operating Expenses
Total operating expenses for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024 are presented below:
Three Months Ended
March 31, 2025December 31, 2024March 31, 2024
Expenses subject to limitation under the Investment Advisory Agreement:
Contractual Issuer Expenses$5,711 $4,574 $59,126 
Amortization of deferred offering costs1,683 1,720 7,353 
Total expenses subject to limitation under the Investment Advisory Agreement
7,394 6,294 66,479 
Other operating expenses:
 Interest expense334,244 361,867 423,419 
 Base management fees115,524 119,152 130,722 
 Incentive fees40,651 97,660 119,805 
 Administrative fees170,422 157,817 187,477 
 Professional fees183,263 148,443 192,168 
 Transfer agent expenses38,177 65,821 53,162 
 Other expenses43,283 48,200 52,699 
  Total other operating expenses
925,564 998,960 1,159,452 
Total operating expenses$932,958 $1,005,254 $1,225,931 
Expenses Limited under the Investment Advisory Agreement
OFS Advisor did not incur any offering costs on our behalf during the three months ended March 31, 2025, and December 31, 2024.
Contractual Issuer Expenses relate to the direct involvement of OFS Advisor’s employees and employees of its affiliates in the Offering process. OFS Advisor incurred, on our behalf, Contractual Issuer Expenses of $5,711 and $4,574 during the three months ended March 31, 2025 and December 31, 2024, respectively. For the three months ended March 31,
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2025, Contractual Issuer Expenses decreased $53,415 compared to the corresponding period in the prior year, primarily due to a decrease in activity under the Offering process.
We are conditionally obligated to pay OFS Advisor up to 1.5% of the gross proceeds raised in the Offering until all reimbursable offering costs and Contractual Issuer Expenses paid by OFS Advisor and their affiliates have been recovered. During the three months ended March 31, 2025 and December 31, 2024, we did not reimburse OFS Advisor for any offering costs and Contractual Issuer Expenses due to no sales of common stock under the Offering. As of March 31, 2025, reimbursable offering costs and Contractual Issuer Expenses were $840,795. See “Item 1. Financial Statements—Notes to Consolidated Financial Statements—Note 3” for additional information.
Other Operating Expenses
For the three months ended March 31, 2025 and December 31, 2024
For the three months ended March 31, 2025, total other operating expenses decreased $73,396 compared to the prior quarter, primarily due to decreases in interest expense and incentive fees.
Interest expense for the three months ended March 31, 2025 decreased $27,623 compared to the prior quarter, primarily due to a reduction in our average outstanding debt balance and the reduction in the U.S. Federal Reserve target federal funds rate effected during the prior quarter, reducing the cost of debt on our Banc of California Credit Facility.
Incentive fees for the three months ended March 31, 2025 decreased $57,009 compared to the prior quarter, primarily due to a decrease in net investment income return on net assets in the current quarter.
For the three months ended March 31, 2025 and 2024
For the three months ended March 31, 2025, total expenses decreased $233,888 compared to the corresponding period in the prior year, primarily due to a decrease of $89,175 in interest expense related to the reduction in our average outstanding debt balances.
For the three months ended March 31, 2025, expenses payable to OFS Advisor and affiliates (base management fees, incentive fees and administrative fees) decreased $63,375 compared to the corresponding period in the prior year due to a smaller investment portfolio.
Net realized and unrealized gain (loss) on investments
Net gain (loss) on investments for the three months ended March 31, 2025 and December 31, 2024
For the three months ended March 31, 2025, net loss on investments of $618,834 was primarily due to net unrealized depreciation of $645,883. The net unrealized depreciation was comprised of net unrealized depreciation of $738,431 on our debt and equity securities, partially offset by net unrealized appreciation of $92,547 on our Structured Finance Securities.
For the three months ended December 31, 2024, our portfolio experienced net gains of $394,660, primarily due to net unrealized appreciation of $517,478, partially offset by net realized losses of $118,979. For the three months ended December 31, 2024, we recognized a net realized loss of $151,552 on the restructuring of a first lien debt investment.
Liquidity and Capital Resources
As of March 31, 2025, we held cash of $364,456 and had an unused commitment of $10,735,000 under our Banc of California Credit Facility, subject to the terms of the borrowing base and other covenants. As of March 31, 2025, we had unfunded commitments of $1,091,623 to fund various undrawn revolvers and other portfolio investments. We continue to believe that we have sufficient levels of liquidity to support our commitments to existing portfolio companies and selectively deploy capital in new investment opportunities.
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Sources and Uses of Cash
We expect to generate cash primarily from: (i) the net proceeds of the Offering; (ii) cash flows from our operations; (iii) the Banc of California Credit Facility and any other financing arrangements we may enter into in the future; (iv) investment repayments or dispositions; and (v) any future offerings of our equity or debt securities. We may fund a portion of our investments through borrowings from banks, including the Banc of California Credit Facility, and issuances of senior securities. Our primary use of cash will be for: (i) investments in portfolio companies and other investments to comply with certain portfolio diversification requirements; (ii) the cost of operations (including paying OFS Advisor); (iii) debt service of any borrowings, including the Unsecured Note; and (iv) cash distributions to the holders of our stock. These principal sources and uses of cash and liquidity are presented below:
Three Months Ended March 31,
20252024
Cash from net investment income(1)
$(129,112)$(139,677)
Net repayments of portfolio investments(1)
948,600 2,190,809 
Net cash provided by operating activities819,488 2,051,132 
Distributions paid to common stockholders(140,785)(465,876)
Net repayments under revolving line of credit(1,000,000)(800,000)
Repurchases of common stock(294,331)(525,963)
Net cash used in financing activities(1,435,116)(1,791,839)
Net change in cash and cash equivalents$(615,628)$259,293 
(1) Cash from net investment income includes all other cash flows from operating activities reported in our statements of cash flows. Net purchases and originations/repayments and sales of portfolio investments includes the purchase and origination of portfolio investments, proceeds from principal payments on portfolio investments, proceeds from sale or redemption of portfolio investments, changes in receivables for investments sold, payable from investments purchased as reported in our statements of cash flows, as well as the excess of proceeds from distributions received from Structured Finance Securities over accretion of interest income on Structured Finance Securities.
Our operating activities provided $819,488 and $2,051,132 in cash for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, the principal source of operating liquidity was the sale and repayment of portfolio investments. Net cash provided by operating activities benefited from the positive cash flow impact of expense limitation under the Investment Advisory Agreement of $7,394 and $66,479 for the three months ended March 31, 2025 and 2024, respectively, which reduced the net amount paid to OFS Advisor. Expense support and limitation under the Investment Advisory Agreement is cancelable at any time.
Net purchases and origination of portfolio investments relates to the investment activity of our portfolio. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Portfolio Composition and Investment Activity.”
During the three months ended March 31, 2025 and 2024, we paid $294,331 and $525,963, respectively, in connection with our tender offers to repurchase shares of our common stock. Subsequent to March 31, 2025, we paid $448,381 in connection with our first quarter 2025 tender offer to repurchase shares of our common stock.
During the three months ended March 31, 2025, we paid $140,785 in dividends to common stockholders and, subsequent to March 31, 2025 and through May 5, 2025, we paid $296,898 in dividends to our common stockholders.
Borrowings
Banc of California Credit Facility. The Banc of California Credit Facility is available for general corporate purposes, including investment funding, and is scheduled to mature on February 28, 2026. On December 17, 2024, we amended the Banc of California Credit Facility to, among other things: (i) decrease the maximum commitment amount from $20,000,000 to $15,000,000; (ii) decrease the minimum tangible net asset value covenant from $15,000,000 to $12,000,000; and (iii) decrease the covenant requiring minimum quarterly net investment income after management/incentive fees from $300,000 to $200,000. The maximum amount available to borrow under the Banc of California Credit Facility is equal to 50% of the aggregate
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outstanding principal amount of eligible loans included in the borrowing base, which typically excludes Structured Finance Securities and as otherwise specified in the BLA, subject to a maximum principal amount of $15,000,000.
The Banc of California Credit Facility currently bears interest at a variable Prime Rate plus a 0.25% margin, with a 5.00% floor, and includes an annual commitment fee equal to 0.50% of the maximum principal amount of the facility. As of March 31, 2025, the stated interest rate on the Banc of California Credit Facility was 7.75%. As of March 31, 2025, the Banc of California Credit Facility bore an effective interest rate of 9.56%, inclusive of interest on the outstanding balance, deferred financing cost amortization and commitment fees.
As of March 31, 2025, we had $4,265,000 outstanding and an unused commitment of $10,735,000 under the Banc of California Credit Facility, subject to a borrowing base and other covenants. As of March 31, 2025, we were in compliance in all material respects with the applicable covenants under the Banc of California Credit Facility.
Unsecured Note. On November 27, 2019, we entered into the Note Purchase Agreement pursuant to which we issued a $15,000,000 Unsecured Note. The purchase price of the Unsecured Note was $14,700,000 after deducting the offering price discount. Interest on the Unsecured Note is due quarterly. We are obligated to repay the Unsecured Note at par if certain change in control events occur. The Unsecured Note is a general unsecured obligation that ranks pari passu with all outstanding and future unsecured unsubordinated indebtedness we may issue.
On September 23, 2021, we executed an amendment to the Note Purchase Agreement. The amendment, among other things: (i) extended the scheduled maturity date of the Unsecured Note from November 27, 2024 to November 27, 2026; (ii) reduced the coupon rate of the Unsecured Note from 6.50% to 5.50%; and (iii) reduced the default rate of the Unsecured Note, if applicable, from 8.50% to 7.50%. In addition, under the Note Purchase Agreement, as amended, we may, at our option, upon notice to the purchaser, redeem at any time all, or from time to time any part of, the Unsecured Note, in an amount not less than 10% of the aggregate principal amount of the Unsecured Note then outstanding in the case of a partial redemption, at 100% of the principal amount so redeemed, together with interest on such Unsecured Note accrued to, but excluding, the date of redemption, and with no redemption settlement amount paid by us in connection with any such redemption.
The Note Purchase Agreement contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, affirmative and negative covenants such as information reporting, maintenance of our status as a business development company within the meaning of the 1940 Act and a minimum asset coverage ratio. The Note Purchase Agreement also contains customary events of default with customary cure and notice periods, including, without limitation, nonpayment, incorrect representation in any material respect, certain judgments and orders, and certain events of bankruptcy. As of March 31, 2025, we were in compliance in all material respects with the applicable covenants under the Note Purchase Agreement.
As of March 31, 2025, the Unsecured Note had the following terms and balances:
PrincipalUnamortized Discount and Issuance CostsStated Interest Rate
Effective Interest Rate(1)
Maturity
Unsecured Note$15,000,000 $121,145 5.50 %5.98 %11/27/2026
(1) The effective interest rate on the Unsecured Note includes deferred debt issuance cost amortization.
Other Liquidity Matters
We expect to fund the growth of our investment portfolio through the private placement of our common shares and issuances of senior securities or future borrowings to the extent permitted by the 1940 Act. We cannot assure stockholders that our plans to raise capital will be successful. In addition, we intend to distribute to our stockholders substantially all of our taxable income in order to satisfy the requirements applicable to RICs under Subchapter M of the Code. Consequently, we may not have the ability to fund new investments or make additional investments in our portfolio companies. The illiquidity of certain of our portfolio investments may make it difficult for us to sell these investments when desired and, if we are required to sell these investments, we may realize significantly less than their current fair value and incur significant realized losses on our invested capital.
From time to time, we may enter into agreements with placement agents to sell, distribute and market shares of our common stock in the Offering. We may pay certain placement or “finder’s” fees to placement agents engaged by us in connection with the Offering. In addition, investors who are purchasing shares through a placement agent may be required to pay a fee or commission directly to the placement agent.
BDCs are generally required to meet a coverage ratio of total assets, less liabilities and indebtedness not represented by senior securities, to total senior securities. Our required asset coverage ratio of 150% limits the amount that we may borrow. To fund growth in our investment portfolio in the future, we anticipate needing to raise additional capital from various sources,
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including the equity markets and the securitization or other debt-related markets, which may or may not be available on favorable terms, if at all.
As of March 31, 2025, the aggregate amount of senior securities outstanding was $19,265,000, for which our asset coverage was 183%. The asset coverage ratio for a class of senior securities representing indebtedness is calculated by aggregating our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior securities representing indebtedness.
In addition, as a BDC, we must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our assets, as defined by the 1940 Act, are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Under the relevant SEC rules, the term “eligible portfolio company” includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than $250 million, in each case organized in the United States. Conversely, we may invest up to 30% of our portfolio in opportunistic investments not otherwise eligible under BDC regulations. Specifically, as part of this 30% basket, we may consider investments in investment funds that are operating pursuant to certain exceptions to the 1940 Act and in advisers to similar investment funds, as well as in debt or equity of middle-market portfolio companies located outside of the United States and debt and equity of public companies that do not meet the definition of eligible portfolio companies because their market capitalization of publicly traded equity securities exceeds the levels provided for in the 1940 Act. We have made, and may continue to make, opportunistic investments in Structured Finance Securities and other non-qualifying assets, consistent with our investment strategy. Investments in Structured Finance Securities are generally made in non-U.S. entities and therefore are generally deemed to be non-qualifying. As of March 31, 2025, approximately 78% of our investments were qualifying assets.
We continue to monitor the current banking environment. If the banks and financial institutions with whom we have credit facilities enter into receivership, undergo consolidation or become insolvent in the future, our liquidity may be reduced significantly. At various times, our cash and cash equivalent balances at third-party financial institutions exceed the federally insured limit. Our cash balances are retained in custodian accounts with U.S. Bank Trust Company, National Association, and we do not believe they are exposed to any significant credit risk. We continue to monitor our portfolio and believe the deposit risk and counterparty risk to be minimal.
Contractual Obligations
We, with approval of our Board, entered into the Investment Advisory Agreement, the Dealer Manager Agreement and the Administration Agreement. See “Item 1. Financial Statements—Notes to Consolidated Financial Statements—Note 1 and Note 3."
As of March 31, 2025, we had $364,456 of cash and cash equivalents and an unused commitment of $10,735,000 under our Banc of California Credit Facility, subject to the terms of the borrowing base and other covenants, to meet our short-term contractual obligations, such as $1,091,623 in outstanding commitments to fund investments under various undrawn revolvers and other portfolio company credit facilities. As of March 31, 2025, our Banc of California Credit Facility that matures on February 28, 2026 and had $4,265,000 outstanding, and our Unsecured Note that matures in November 2026 and had $15,000,000 outstanding, could be repaid by selling portfolio investments that have a fair value of $35,828,910. We cannot, however, be certain that this source of funds will be available and upon terms acceptable to us in sufficient amounts in the future. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than its current fair value and incur significant realized losses on our invested capital.
We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized on the balance sheet. There is no guarantee that these amounts will be funded to the borrowing party now or in the future. We continue to believe that we have sufficient levels of liquidity to support our existing portfolio companies and will meet these unfunded commitments by using our cash on hand or utilizing our available borrowings under the Banc of California Credit Facility. In addition, a portion of our portfolio includes more liquid broadly syndicated loans in larger portfolio companies that can be sold over a relatively short period to generate cash.
Off-Balance Sheet Arrangements
Amounts Conditionally Reimbursable to OFS Advisor. OFS Advisor and affiliates have incurred offering costs and Contractual Issuer Expenses, of which $840,795 and $875,049 were unreimbursed as of March 31, 2025 and December 31,
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2024, respectively. We remain conditionally liable to OFS Advisor for organization and offering costs incurred on our behalf. See “Item 1. Financial Statements—Notes to Consolidated Financial Statements—Note 3.”
Distributions
We have elected to be taxed as a RIC under Subchapter M of the Code. In order to maintain our status as a RIC, we are required to distribute annually to our stockholders at least 90% of our ICTI, as defined by the Code. Additionally, to avoid a 4% excise tax on undistributed earnings we are required to distribute each calendar year the sum of: (i) 98% of our ordinary income for such calendar year; (ii) 98.2% of our net capital gains for the one-year period ending October 31 of that calendar year; and (iii) any income recognized, but not distributed, in preceding years and on which we paid no federal income tax. Maintenance of our RIC status also requires adherence to certain source of income and asset diversification requirements. Generally, a RIC is entitled to deduct dividends it pays to its stockholders from its income to determine “taxable income.” Taxable income includes our taxable interest, dividend and fee income, and taxable net capital gains. Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses, and generally excludes net unrealized appreciation or depreciation, as gains or losses are not included in taxable income until they are realized. In addition, gains realized for financial reporting purposes may differ from gains included in taxable income as a result of our election to recognize gains using installment sale treatment, which generally results in the deferment of gains for tax purposes until notes or other amounts, including amounts held in escrow received as consideration from the sale of investments, are collected in cash. Taxable income includes non-cash income, such as changes in accrued and reinvested interest and dividends, which includes contractual PIK interest, and the amortization of discounts and fees. Cash collections of income resulting from contractual PIK interest and dividends or the amortization of discounts and fees generally occur upon the repayment of the loans or debt securities that include such items. Non-cash taxable income is reduced by non-cash expenses, such as realized losses and depreciation, and amortization expense.
Our Board maintains a variable dividend policy with the objective of distributing twelve monthly distributions in an amount not less than 90% of our annual taxable income for a particular year. In addition, during the year, we may pay a special dividend, such that we may distribute approximately all of our annual taxable income in the year it was earned, while maintaining the option to spill over our excess taxable income to a following year. We may choose to retain a portion of our taxable income in any year and pay the 4% U.S. federal excise tax on the retained amounts. Each year, a statement on Form 1099-DIV identifying the source of the distribution is mailed to the Company’s stockholders.
Certain historical distributions were supported by expense limitation payments under the Second Amended Expense Support Agreement to ensure no portion of our distributions to stockholders were paid from Offering proceeds (i.e., no return of capital). On November 26, 2024, we entered into the ESA Termination Agreement with OFS Advisor to terminate the Second Amended Expense Support Agreement effective January 1, 2025.
Share Repurchases
Since November 2018, the Board has approved quarterly tender offers to purchase shares of our outstanding common stock. Since November 2019, we have conducted quarterly tender offers to purchase, in each case, 2.5% of the weighted average number of shares of the outstanding common stock for the trailing 12-month period. The repurchase offers allowed our stockholders to sell their shares back to us at a price equal to the most recently determined net asset value per share of our common stock immediately prior to the date of repurchase. See “Item 1. Financial Statements—Notes to Consolidated Financial Statements—Note 9” for details on share repurchases.
Recent Developments
On April 26, 2025, our Board declared a distribution of $0.06 per common share, which represents a 6.5% annualized distribution yield based on our common stock offering price as of April 29, 2025, which will be paid on July 15, 2025 to stockholders of record on April 28, 2025.
On May 7, 2025, our Board approved a tender offer, commencing on May 29, 2025, to purchase 2.5% of the weighted average number of shares of the outstanding common stock for the trailing 12-month period ending March 31, 2025.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
We are subject to financial market risks, including changes in interest rates and the valuations of our investment portfolio. The economic effects of the ongoing war between Russia and Ukraine, interest rate and inflation rate changes, ongoing supply chain and labor market disruptions, including those as a result of strikes, work stoppages or accidents, the agenda of the new U.S. presidential administration, including the impact of tariff enactment and tax reductions, instability in the U.S. and international banking systems and the risk of recession or a shutdown of U.S. government services has introduced significant volatility in the financial markets, and the effects of this volatility has impacted and could continue to impact our market risks. For additional information concerning risks and their potential impact on our business and our operating results,
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seePart I—Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on March 14, 2025.
Investment Valuation Risk
Because there is not a readily available market value for most of the investments in our portfolio, we value a significant portion of our portfolio investments at fair value as determined in good faith by OFS Advisor, as valuation designee, based, in part, on independent third-party valuation firms that have been engaged at the direction of OFS Advisor to assist in the valuation of most portfolio investments without a readily available market quotation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period. Additionally, the fair value of our investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that we may ultimately realize. Further, some investments may be subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than its current fair value. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Significant Estimates” as well as Notes 2 and 5 to our consolidated financial statements for the three months ended March 31, 2025 for more information relating to our investment valuation.
Interest Rate Risk
As of March 31, 2025, we held loans and mezzanine debt investments with an aggregate fair value of $28.1 million that bore interest at floating interest rates and contained interest rate reset provisions that adjust applicable interest rates to current rates on a periodic basis. The aggregate 100 basis point reduction in the U.S. Federal Reserve target federal funds rate enacted from September 2024 through December 2024 influences SOFR-based rates, to which our variable rate debt investments are generally indexed. These rate decreases resulted in our variable rate debt investments generating less interest income during the three months ended March 31, 2025. Changes in interest rates, including potential additional interest rate reductions approved by the U.S. Federal Reserve, may impact our investment income, cost of funding and the valuation of our investments. Additional reductions in interest rates would reduce our interest income, which could in turn decrease our net investment income if such decreases in base interest rates are not offset by other factors, such as increases in the spread over such base interest rates or decreases in our operating expenses.
Our outstanding Unsecured Note bears interest at a fixed rate, which may result in net interest margin compression in a period of falling rates. Our Banc of California Credit Facility has a floating interest rate provision based on the Prime Rate, which resulted in a stated interest rate of 7.75% as of March 31, 2025.
Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates as of March 31, 2025. As of March 31, 2025, 1-month and 3-month SOFR were 4.32% and 4.29%, respectively. Assuming that the interim, unaudited Statement of Assets and Liabilities as of March 31, 2025 were to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates:
Basis point increaseInterest incomeInterest expenseNet change
25$72,962 $(10,663)$62,299 
50150,242 (21,325)128,917 
75227,523 (31,988)195,535 
100304,803 (42,650)262,153 
125382,084 (53,313)328,771 
Basis point decreaseInterest incomeInterest expenseNet change
25$(81,599)$10,663 $(70,936)
50(158,880)21,325 (137,555)
75(236,161)31,988 (204,173)
100(313,441)42,650 (270,791)
125(390,722)53,313 (337,409)
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Although we believe that the foregoing analysis is indicative of our net interest margin sensitivity to interest rate changes as of March 31, 2025, it does not adjust for potential changes in the credit market, credit quality, size and composition of the assets in our portfolio, and other business developments, including borrowings under our credit facilities, that could affect net increase (decrease) in net assets resulting from operations, or net income. Accordingly, no assurances can be given that actual results would not differ materially from the table above.
Item 4.  Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, 2025. The term “disclosure controls and procedures” (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of the Company’s disclosure controls and procedures as of March 31, 2025, our Chief Executive Officer and Chief Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.
Changes in Internal Control over Financial Reporting
During the quarter ended March 31, 2025, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
 
Item 1.  Legal Proceedings
We, OFS Advisor and OFS Services, are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us. From time to time, we may be a party to certain legal proceedings incidental to the normal course of our business, including the enforcement of our rights under contracts with our portfolio companies. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. Our business is also subject to extensive regulation, which may result in regulatory proceedings against us. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our financial condition or results of operations.
Item 1A. Risk Factors
Investing in our common stock may be speculative and involves a high degree of risk. In addition to the other information contained in this Quarterly Report on Form 10-Q, including our financial statements, and the related notes, schedules and exhibits, you should carefully consider the risk factors described in “Part I— Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed on March 14, 2025 (the “Annual Report on Form 10-K”), which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition and/or operating results.
There have been no material changes from the risk factors previously disclosed in “Part I—Item 1A. Risk Factors” in our Annual Report on Form 10-K. The risks previously disclosed in our Annual Report on Form 10-K should be read together with the other information disclosed elsewhere in this Quarterly Report on Form 10-Q and our other reports filed with the SEC.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Sales of Unregistered Securities, Use of Proceeds
During the three months ended March 31, 2025, we did not sell any shares of our common stock.
Because shares of our common stock have been acquired by investors in one or more transactions “not involving a public offering”, they are “restricted securities” and may be required to be held indefinitely. Our common stock may not be sold, transferred, assigned, pledged or otherwise disposed of unless: (i) the transferor provides OFS Advisor with at least 10 days written notice of the transfer; (ii) the transfer is made in accordance with applicable securities laws; and (iii) the transferee agrees in writing to be bound by these restrictions and the other restrictions imposed on the common stock and to execute such other instruments or certifications as are reasonably required by us. Accordingly, an investor must be willing to bear the economic risk of investment in the common stock until we are liquidated. No sale, transfer, assignment, pledge or other disposition, whether voluntary or involuntary, of the common shares may be made except by registration of the transfer on our books.
Issuer Purchases of Equity Securities
Since November 2018, the Board has approved quarterly tender offers to purchase shares of our outstanding common stock. Since November 2019, we have conducted quarterly tender offers to purchase, in each case, 2.5% of the weighted average number of shares of the outstanding common stock for the trailing 12-month period. The repurchase offers allowed our stockholders to sell their shares back to us at a price equal to the most recently determined net asset value per share of our common stock immediately prior to the date of repurchase.
The following table summarizes the common stock repurchases by us for the three months ended March 31, 2025:
Three Months Ended March 31, 2025Number of SharesAmount
January 1, 2025 through January 31, 2025— $— 
February 1, 2025 through February 28, 2025— — 
March 1, 2025 through March 31, 202544,045 448,381 

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Item 3.  Defaults Upon Senior Securities
Not applicable.
Item 4.  Mine Safety Disclosures
Not applicable.
Item 5.  Other Information
(a)    Not applicable.
(b)    Not applicable.
(c)    During the three months ended March 31, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
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Item 6.  Exhibits
Listed below are the exhibits that are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):
Incorporated by Reference
Exhibit
Number
DescriptionForm and SEC File No.Filing Date with SECFiled with this 10-Q
3.1Form 10-12G (000-55552)December 21, 2015
3.2Form 10-12G/A (000-55552)February 8, 2016
3.38-K (814-001185)August 24, 2017
31.1*
31.2*
32.1
32.2
101Inline XBRL Document Set for the consolidated financial statements and accompanying notes in Part I, Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.*
104Cover Page Interactive Data File (embedded within the Inline XBRL document)*
 
*Filed herewith.
Furnished herewith.
 
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SIGNATURES
 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: May 9, 2025HANCOCK PARK CORPORATE INCOME, INC.
   
 By:/s/ Bilal Rashid
 Name:Bilal Rashid
 Title:Chief Executive Officer
   
 By:/s/ Kyle Spina
 Name:Kyle Spina
 Title:Chief Financial Officer

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