| 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, 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) | |
| Valley
Bank credit facility | |
$ | 32,500 | | |
$ | - | | |
$ | 32,500 | | |
$ | - | | |
$ | - | |
| Live
Oak credit facility | |
| 37,500 | | |
| 37,500 | | |
| - | | |
| - | | |
| - | |
| SBA
debentures | |
| 213,000 | | |
| - | | |
| - | | |
| 99,000 | | |
| 114,000 | |
| 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 | | |
| - | | |
| - | |
| 8.5%
2028 Notes | |
| 57,500 | | |
| - | | |
| 57,500 | | |
| - | | |
| - | |
| 7.25%
2029 Notes | |
| 25,000 | | |
| - | | |
| 25,000 | | |
| - | | |
| - | |
| 7.25%
2030 Notes | |
| 50,000 | | |
| - | | |
| - | | |
| 50,000 | | |
| - | |
| 7.50%
2031 Notes | |
| 100,000 | | |
| - | | |
| - | | |
| 100,000 | | |
| - | |
| Total
Long-Term Debt Obligations | |
$ | 817,375 | | |
$ | 218,000 | | |
$ | 236,375 | | |
$ | 249,000 | | |
$ | 114,000 | |
Off-Balance Sheet Arrangements
As of May 31, 2026 and February 28, 2026, the
Company’s off-balance sheet arrangements consisted of $185.2 million and $153.1 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, 2026 and February 28, 2026 is shown in the table below (dollars in thousands):
| | |
May 31,
2026 | | |
February 28,
2026 | |
| At Company’s discretion | |
| | |
| |
| Angry Chickz, Inc. | |
$ | 4,000 | | |
$ | 4,000 | |
| Artemis Wax Corp. | |
| - | | |
| 7,500 | |
| Better Impact USA Inc. | |
| 5,000 | | |
| 5,000 | |
| Haystack Team Inc. | |
| 5,000 | | |
| 5,000 | |
| JDXpert | |
| 4,500 | | |
| 4,500 | |
| LFR Chicken LLC | |
| 10,000 | | |
| 10,000 | |
| Pepper Palace, Inc. | |
| 900 | | |
| 800 | |
| Saratoga Senior Loan Fund I JV, LLC | |
| 6,933 | | |
| 6,933 | |
| SAI Systems Health, LLC | |
| 4,000 | | |
| 4,000 | |
| Source 44 LLC | |
| 20,000 | | |
| 20,000 | |
| StockIQ Technologies, LLC | |
| 3,250 | | |
| 5,000 | |
| Zollege PBC | |
| 1,500 | | |
| - | |
| Total | |
$ | 65,083 | | |
$ | 72,733 | |
| | |
| | | |
| | |
| At portfolio company’s discretion
- satisfaction of certain financial and nonfinancial covenants required | |
| | | |
| | |
| Angry Chickz, Inc. | |
| 2,100 | | |
| 2,100 | |
| Axero Holdings, LLC - Revolver | |
| 500 | | |
| 500 | |
| Better Impact USA Inc. | |
| 5,000 | | |
| 5,000 | |
| BQE Software, Inc. | |
| - | | |
| 250 | |
| Breezeway Homes, Inc. | |
| 4,000 | | |
| 4,000 | |
| Cloudpermit | |
| 8,500 | | |
| 8,500 | |
| Exigo - Revolver | |
| 625 | | |
| 625 | |
| Gen4 Dental Partners Holdings, LLC | |
| 476 | | |
| 2,381 | |
| Innergy, Inc. | |
| 2,120 | | |
| 1,500 | |
| Inspect Point Holdings, LLC | |
| 2,000 | | |
| 4,000 | |
| LFR Chicken LLC | |
| 25,000 | | |
| 25,000 | |
| Ludi, Inc. - Revolver | |
| 2,100 | | |
| 3,600 | |
| Rewind Intermediate Inc. | |
| 24,100 | | |
| - | |
| Rewind Intermediate Inc. - Revolver | |
| 3,000 | | |
| - | |
| SAI Systems Health, LLC | |
| 1,474 | | |
| 1,474 | |
| SmartAC.com, LLC | |
| 17,000 | | |
| 17,000 | |
| Source 44 LLC | |
| 500 | | |
| 500 | |
| Source 44 LLC - Revolver | |
| 2,000 | | |
| 2,000 | |
| StockIQ Technologies, LLC | |
| 1,750 | | |
| 400 | |
| VetnCare MSO, LLC | |
| 5,364 | | |
| - | |
| Vitana DSO, LLC | |
| 12,500 | | |
| - | |
| Zollege PBC | |
| - | | |
| 1,500 | |
| | |
| 120,109 | | |
| 80,330 | |
| Total | |
$ | 185,192 | | |
$ | 153,063 | |
The Company believes its assets will provide adequate coverage to satisfy
these unfunded commitments. As of May 31, 2026, the Company had cash and cash equivalents of $46.1 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 $46.0 million available SBA debentures that can be used for any commitments held by SBIC III LP.
|