| 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 August 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 | | |
| - | | |
| - | | |
| 84,000 | | |
| 129,000 | |
| 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% 2029 Notes | |
| 25,000 | | |
| - | | |
| 25,000 | | |
| - | | |
| - | |
| 7.25% 2030 Notes | |
| 50,000 | | |
| - | | |
| - | | |
| 50,000 | | |
| - | |
| 7.50% 2031 Notes | |
| 100,000 | | |
| - | | |
| - | | |
| 100,000 | | |
| - | |
| 8.00% 2031 Notes | |
| 85,000 | | |
| - | | |
| - | | |
| 85,000 | | |
| - | |
| Total Long-Term Debt Obligations | |
$ | 902,375 | | |
$ | 218,000 | | |
$ | 236,375 | | |
$ | 319,000 | | |
$ | 129,000 | |
Off-Balance Sheet Arrangements
As of August 31, 2026 and February 28, 2026,
the Company’s off-balance sheet arrangements consisted of $181.1 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 August 31, 2026 and February 28, 2026 is shown in the table below (dollars in thousands):
| | |
August 31, 2026 | | |
February 28, 2026 | |
| At Company’s discretion | |
| | |
| |
| Angry Chickz, Inc. | |
| - | | |
$ | 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 | |
$ | 61,083 | | |
$ | 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 - Revolving Credit Facility | |
| - | | |
| 500 | |
| Better Impact USA Inc. | |
| 5,000 | | |
| 5,000 | |
| BQE Software, Inc. | |
| - | | |
| 250 | |
| Breezeway Homes, Inc. | |
| 4,000 | | |
| 4,000 | |
| Cloudpermit | |
| 8,000 | | |
| 8,500 | |
| Exigo, LLC - Revolving Credit Facility | |
| 625 | | |
| 625 | |
| Gen4 Dental Partners Holdings, LLC | |
| - | | |
| 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. - Revolving Credit Facility | |
| 1,850 | | |
| 3,600 | |
| Rewind Intermediate Inc. | |
| 24,100 | | |
| - | |
| Rewind Intermediate Inc. - Revolving Credit Facility | |
| 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 - Revolving Credit Facility | |
| 2,000 | | |
| 2,000 | |
| StockIQ Technologies, LLC | |
| 1,750 | | |
| 400 | |
| Vitana DSO, LLC | |
| 12,045 | | |
| - | |
| Yumi Ice Cream Company, LLC | |
| 3,839 | | |
| - | |
| Yumi Ice Cream Company, LLC - Revolving Credit Facility | |
| 3,571 | | |
| - | |
| Zollege PBC | |
| - | | |
| 1,500 | |
| | |
| 119,974 | | |
| 80,330 | |
| Total | |
$ | 181,057 | | |
$ | 153,063 | |
The Company believes its assets will provide
adequate coverage to satisfy these unfunded commitments. As of August 31, 2026, the Company had cash and cash equivalents of $80.1 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.
|