| 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 November 30, 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) |
|
| Valley Bank credit facility |
|
$ |
32,500 |
|
|
$ |
- |
|
|
$ |
32,500 |
|
|
$ |
- |
|
|
$ |
- |
|
| Live Oak credit facility |
|
|
37,500 |
|
|
|
- |
|
|
|
37,500 |
|
|
|
- |
|
|
|
- |
|
| SBA debentures |
|
|
170,000 |
|
|
|
- |
|
|
|
- |
|
|
|
26,000 |
|
|
|
144,000 |
|
| 4.375% 2026 Notes |
|
|
175,000 |
|
|
|
175,000 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| 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 |
|
|
|
- |
|
|
|
- |
|
| Total Long-Term Debt Obligations |
|
$ |
774,375 |
|
|
$ |
175,000 |
|
|
$ |
429,375 |
|
|
$ |
26,000 |
|
|
$ |
144,000 |
|
Off-Balance Sheet Arrangements
As of November 30, 2025 and February 28, 2025,
the Company’s off-balance sheet arrangements consisted of $138.1 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 November
30, 2025 and February 28, 2025 is shown in the table below (dollars in thousands):
| | |
November 30,
2025 | | |
February 28,
2025 | |
| At Company’s discretion | |
| | |
| |
| ActiveProspect, Inc. | |
$ | 10,000 | | |
$ | 10,000 | |
| Angry Chickz, Inc. | |
| 10,000 | | |
| - | |
| Artemis Wax Corp. | |
| - | | |
| 23,500 | |
| Ascend Software, LLC | |
| - | | |
| 5,000 | |
| C2 Educational Systems | |
| - | | |
| 2,000 | |
| Davisware, LLC | |
| - | | |
| 1,000 | |
| JDXpert | |
| 4,500 | | |
| 4,500 | |
| Lee’s Famous Recipe Chicken | |
| 10,000 | | |
| 10,000 | |
| Pepper Palace, Inc. | |
| 800 | | |
| 1,200 | |
| Saratoga Senior Loan Fund I JV, LLC | |
| 6,933 | | |
| 8,548 | |
| SAI Systems Health, LLC | |
| 4,000 | | |
| - | |
| Source 44 LLC | |
| 20,000 | | |
| - | |
| VetnCare MSO, LLC | |
| - | | |
| 10,000 | |
| StockIQ Technologies, LLC | |
| 5,000 | | |
| - | |
| Total | |
$ | 71,233 | | |
$ | 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 | |
| BQE Software, Inc. | |
| 250 | | |
| 2,250 | |
| Cloudpermit Intermediate Holding Company | |
| 5,000 | | |
| 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. | |
| 3,000 | | |
| 5,000 | |
| Inspect Point Holding, LLC | |
| 4,000 | | |
| 1,500 | |
| Lee’s Famous Recipe Chicken | |
| 25,000 | | |
| - | |
| Modis Dental Partners OpCo, LLC | |
| - | | |
| 8,900 | |
| Pepper Palace, Inc. - Revolver | |
| - | | |
| 600 | |
| SAI Systems Health, LLC | |
| 1,474 | | |
| - | |
| Source 44 LLC | |
| 2,000 | | |
| - | |
| Source 44 LLC - Revolver | |
| 2,000 | | |
| - | |
| Stretch Zone Franchising, LLC | |
| - | | |
| 1,500 | |
| VetnCare MSO, LLC | |
| - | | |
| 7,319 | |
| StockIQ Technologies, LLC | |
| 1,500 | | |
| - | |
| SmartAC.com, Inc. | |
| 17,000 | | |
| - | |
| | |
| 66,830 | | |
| 50,938 | |
| Total | |
$ | 138,063 | | |
$ | 126,686 | |
The Company believes its assets will provide
adequate coverage to satisfy these unfunded commitments. As of November 30, 2025, the Company had $52.3 million in cash and cash
equivalents, $52.5 million in available borrowings under the Valley Credit Facility, and $37.5 million in available borrowings
under the Live Oak Credit Facility.
|