| 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 February 28, 2026:
| | |
| | |
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) | |
| Live Oak credit facility | |
| 37,500 | | |
| - | | |
| 37,500 | | |
| - | | |
| - | |
| Valley Bank Credit Facility | |
| 32,500 | | |
| - | | |
| 32,500 | | |
| - | | |
| - | |
| SBA debentures | |
| 160,000 | | |
| - | | |
| - | | |
| 99,000 | | |
| 61,000 | |
| 4.35% 2027 Notes | |
| 75,000 | | |
| 75,000 | | |
| - | | |
| - | | |
| - | |
| 6.00% 2027 Notes | |
| 105,500 | | |
| - | | |
| 105,500 | | |
| - | | |
| - | |
| 6.25% 2027 Notes | |
| 15,000 | | |
| - | | |
| 15,000 | | |
| - | | |
| - | |
| 8.00% 2027 Notes | |
| 46,000 | | |
| - | | |
| 46,000 | | |
| - | | |
| - | |
| 8.125% 2027 Notes | |
| 60,375 | | |
| - | | |
| 60,375 | | |
| - | | |
| - | |
| 8.50% 2028 Notes | |
| 57,500 | | |
| - | | |
| 57,500 | | |
| - | | |
| - | |
| 7.25% 2030 Notes | |
| 50,000 | | |
| - | | |
| - | | |
| 50,000 | | |
| | |
| 7.50% 2031 Notes | |
| 100,000 | | |
| - | | |
| - | | |
| 100,000 | | |
| | |
| Total Long-Term Debt Obligations | |
$ | 739,375 | | |
$ | 75,000 | | |
$ | 354,375 | | |
$ | 249,000 | | |
$ | 61,000 | |
Off-balance Sheet Arrangements
At February 28, 2026 and February 28, 2025, the
Company’s off-balance sheet arrangements consisted of $153.1 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 February 28, 2026 and February 28, 2025 is shown in the table below (dollars in thousands):
| | |
February 28,
2026 | | |
February 28,
2025 | |
| At Company’s discretion | |
| | |
| |
| ActiveProspect, Inc. | |
$ | - | | |
$ | 10,000 | |
| Angry Chickz, Inc. | |
| 4,000 | | |
$ | - | |
| Artemis Wax Corp. | |
| 7,500 | | |
| 23,500 | |
| Ascend Software, LLC | |
| - | | |
| 5,000 | |
| Better Impact USA, Inc. | |
| 5,000 | | |
| - | |
| C2 Educational Systems, Inc. | |
| - | | |
| 2,000 | |
| Davisware, LLC | |
| - | | |
| 1,000 | |
| Haystack Team Inc. | |
| 5,000 | | |
| - | |
| JDXpert | |
| 4,500 | | |
| 4,500 | |
| LFR Chicken LLC | |
| 10,000 | | |
| 10,000 | |
| Pepper Palace, Inc. | |
| 800 | | |
| 1,200 | |
| Procurement Partners, LLC | |
| - | | |
| - | |
| Saratoga Senior Loan Fund I JV, LLC | |
| 6,933 | | |
| 8,548 | |
| SAI Systems Health, LLC | |
| 4,000 | | |
| - | |
| Source 44 LLC | |
| 20,000 | | |
| - | |
| StockIQ Technologies, LLC | |
| 5,000 | | |
| - | |
| VetnCare MSO, LLC | |
| - | | |
| 10,000 | |
| Total | |
$ | 72,733 | | |
$ | 75,748 | |
| | |
| | | |
| | |
| At portfolio company’s discretion
- satisfaction of certain financial and nonfinancial covenants required | |
| | | |
| | |
| Angry Chickz, Inc. | |
$ | 2,100 | | |
$ | - | |
| Axero Holdings, LLC - Revolver | |
| 500 | | |
| 500 | |
| Axiom Medical Consulting, LLC | |
| - | | |
| 1,500 | |
| Better Impact USA, Inc. | |
| 5,000 | | |
| - | |
| BQE Software, Inc. | |
| 250 | | |
| 2,250 | |
| Breezeway Homes, Inc. | |
| 4,000 | | |
| - | |
| Cloudpermit | |
| 8,500 | | |
| 5,000 | |
| Davisware, LLC | |
| - | | |
| 1,750 | |
| Exigo, LLC - Revolver | |
| 625 | | |
| 625 | |
| Gen4 Dental Partners Holdings, LLC | |
| 2,381 | | |
| 2,857 | |
| Granite Comfort, LP | |
| - | | |
| 11,637 | |
| Innergy, Inc. | |
| 1,500 | | |
| 5,000 | |
| Inspect Point Holdings, LLC | |
| 4,000 | | |
| 1,500 | |
| LFR Chicken LLC | |
| 25,000 | | |
| - | |
| Ludi, Inc. - Revolver | |
| 3,600 | | |
| - | |
| Modis Dental Partners OpCo, LLC | |
| - | | |
| 8,900 | |
| Pepper Palace, Inc. - Revolver | |
| - | | |
| 600 | |
| SAI Systems Health, LLC | |
| 1,474 | | |
| - | |
| SmartAC.com, Inc. | |
| 17,000 | | |
| - | |
| Source 44 LLC | |
| 500 | | |
| - | |
| Source 44 LLC - Revolver | |
| 2,000 | | |
| - | |
| StockIQ Technologies, LLC | |
| 400 | | |
| - | |
| Stretch Zone Franchising, LLC | |
| - | | |
| 1,500 | |
| VetnCare MSO, LLC | |
| - | | |
| 7,319 | |
| Zollege PBC | |
| 1,500 | | |
| - | |
| | |
| 80,330 | | |
| 50,938 | |
| Total | |
$ | 153,063 | | |
$ | 126,686 | |
The Company believes its assets will provide adequate
coverage to satisfy these unfunded commitments. As of February 28, 2026, the Company had cash and cash equivalents of $1.7 million, $52.5
million in available borrowings under the Valley Credit Facility, and $37.5 million in available borrowings under the Live Oak Credit
Facility. The Company also has $99.0 million available SBA debentures that can be used for any commitments held in SBIC III LP.
|