| Commitments and Contingencies |
Note 9. Commitments and Contingencies
Contractual Obligations
The following table shows our payment obligations for repayment of
debt and other contractual obligations at May 31, 2025:
| | |
| | |
Payment Due by Period | |
| Long-Term Debt Obligations | |
Total | | |
Less Than
1 Year | | |
1 - 3
Years | | |
3 - 5
Years | | |
More Than
5 Years | |
| | |
($ in thousands) | |
| Encina Credit Facility | |
$ | 32,500 | | |
$ | 32,500 | | |
$ | - | | |
$ | - | | |
$ | - | |
| Live Oak Credit Facility | |
$ | 37,500 | | |
$ | - | | |
$ | 37,500 | | |
$ | - | | |
$ | - | |
| SBA debentures | |
| 170,000 | | |
| - | | |
| - | | |
| 20,000 | | |
| 150,000 | |
| 6.25% 2025 Notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 8.75% 2025 Notes | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| 7.75% 2025 Notes | |
| 5,000 | | |
| 5,000 | | |
| - | | |
| - | | |
| - | |
| 4.375% 2026 Notes | |
| 175,000 | | |
| 175,000 | | |
| - | | |
| - | | |
| - | |
| 4.35% 2027 Notes | |
| 75,000 | | |
| - | | |
| 75,000 | | |
| - | | |
| - | |
| 6.25% 2027 Notes | |
| 15,000 | | |
| - | | |
| 15,000 | | |
| - | | |
| - | |
| 6.00% 2027 Notes | |
| 105,500 | | |
| - | | |
| 105,500 | | |
| - | | |
| - | |
| 8.00% 2027 Notes | |
| 46,000 | | |
| - | | |
| 46,000 | | |
| - | | |
| - | |
| 8.125% 2027 Notes | |
| 60,375 | | |
| - | | |
| 60,375 | | |
| - | | |
| - | |
| 8.5% 2028 Notes | |
| 57,500 | | |
| - | | |
| 57,500 | | |
| - | | |
| - | |
| 7.00% 2025 Notes | |
| 12,000 | | |
| 12,000 | | |
| - | | |
| - | | |
| - | |
| Total Long-Term Debt Obligations | |
$ | 791,375 | | |
$ | 224,500 | | |
$ | 396,875 | | |
$ | 20,000 | | |
$ | 150,000 | |
Off-Balance Sheet Arrangements
As of May 31, 2025 and February 28, 2025, the
Company’s off-balance sheet arrangements consisted of $136.4 million and $126.7 million, respectively, of unfunded commitments outstanding
to provide debt financing to its portfolio companies or to fund limited partnership interests. Such commitments are generally up to the
Company’s discretion to approve, or the satisfaction of certain financial and nonfinancial covenants and involve, to varying degrees,
elements of credit risk in excess of the amount recognized in the Company’s consolidated statements of assets and liabilities and
are not reflected in the Company’s consolidated statements of assets and liabilities.
A summary of the unfunded commitments outstanding as of May 31, 2025
and February 28, 2025 is shown in the table below (dollars in thousands):
| | |
May 31,
2025 | | |
February 28,
2025 | |
| At Company’s discretion | |
| | |
| |
| ActiveProspect, Inc. | |
$ | 10,000 | | |
$ | 10,000 | |
| Artemis Wax Corp. | |
| 23,500 | | |
| 23,500 | |
| Ascend Software, LLC | |
| 5,000 | | |
| 5,000 | |
| C2 Educational Systems, Inc. | |
| - | | |
| 2,000 | |
| Davisware, LLC | |
| - | | |
| 1,000 | |
| JDXpert | |
| 4,500 | | |
| 4,500 | |
| LFR Chicken LLC | |
| 10,000 | | |
| 10,000 | |
| Pepper Palace, Inc. | |
| 1,200 | | |
| 1,200 | |
| Procurement Partners, LLC | |
| - | | |
| - | |
| Saratoga Senior Loan Fund I JV, LLC | |
| 8,548 | | |
| 8,548 | |
| VetnCare MSO, LLC | |
| 10,000 | | |
| 10,000 | |
| StockIQ Technologies, LLC | |
| 5,000 | | |
| - | |
| Total | |
$ | 77,748 | | |
$ | 75,748 | |
| | |
| | | |
| | |
| At portfolio company’s discretion - satisfaction of certain financial and nonfinancial covenants required | |
| | | |
| | |
| Axero Holdings, LLC – Revolving Credit Facility | |
| 500 | | |
| 500 | |
| Axiom Medical Consulting, LLC | |
| 1,000 | | |
| 1,500 | |
| BQE Software, Inc. | |
| 250 | | |
| 2,250 | |
| Cloudpermit Intermediate Holding Company | |
| 5,000 | | |
| 5,000 | |
| Davisware, LLC | |
| - | | |
| 1,750 | |
| Exigo, LLC – Revolving Credit Facility | |
| 625 | | |
| 625 | |
| Gen4 Dental Partners Holdings, LLC | |
| 2,381 | | |
| 2,857 | |
| Granite Comfort, LP | |
| 11,637 | | |
| 11,637 | |
| Innergy, Inc. | |
| 5,000 | | |
| 5,000 | |
| Inspect Point Holding, LLC | |
| 2,000 | | |
| 1,500 | |
| Modis Dental Partners OpCo, LLC | |
| 4,500 | | |
| 8,900 | |
| Pepper Palace, Inc. – Revolving Credit Facility | |
| - | | |
| 600 | |
| Stretch Zone Franchising, LLC | |
| - | | |
| 1,500 | |
| VetnCare MSO, LLC | |
| 6,709 | | |
| 7,319 | |
| StockIQ Technologies, LLC | |
| 2,000 | | |
| - | |
| SmartAC.com, Inc. | |
| 17,000 | | |
| - | |
| | |
| 58,602 | | |
| 50,938 | |
| Total | |
$ | 136,350 | | |
$ | 126,686 | |
The Company believes its assets will provide
adequate coverage to satisfy these unfunded commitments. As of May 31, 2025, the Company had cash and cash equivalents of $131.6 million,
$32.5 million in available borrowings under the Encina Credit Facility, and $37.5 million in available borrowings under the Live Oak
Credit Facility.
|