Attached files
| file | filename |
|---|---|
| EX-31.1 - EXHIBIT 31.1 - Newtek Business Services Corp. | newt-33115xexh311.htm |
| EX-31.2 - EXHIBIT 31.2 - Newtek Business Services Corp. | newt-33115xexh312.htm |
| EX-32.1 - EXHIBIT 32.1 - Newtek Business Services Corp. | newt-33115xexh321.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________
FORM 10-Q
____________________________________________
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2015
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____to_____
Commission file number: 814-01035
____________________________________________
NEWTEK BUSINESS SERVICES CORP.
____________________________________________
(Exact name of registrant as specified in its charter)
____________________________________________
Maryland | 46-3755188 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
212 West 35th Street, 2nd Floor New York, New York | 10001 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code: (212) 356-9500
____________________________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company (all as defined in Rule 12b-2 of the Exchange Act).
Large accelerated filer | ¨ | Accelerated filer | ¨ | ||
Non-accelerated filer | x | Smaller reporting company | ¨ | ||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
As of May 11, 2015 there were 10,206,301 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
TABLE OF CONTENTS
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF NET ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
March 31, 2015 | December 31, 2014 | ||||||
ASSETS | (Unaudited) | (Note 1) | |||||
Investments, at fair value | |||||||
SBA unguaranteed non-affiliate investments (cost of $138,811 and $131,093, respectively; includes $122,194 and $120,990, respectively, related to securitization trust VIE) | $ | 128,551 | $ | 121,477 | |||
Affiliate investments (cost of $17,965 and $18,065, respectively) | 84,899 | 77,499 | |||||
SBA guaranteed non-affiliate investments (cost of $12,993 and $28,057, respectively) | 14,724 | 31,486 | |||||
Investments in money market funds (cost of $6,000 and $3,000, respectively) | 6,000 | 3,000 | |||||
Total investments at fair value | 234,174 | 233,462 | |||||
Cash and cash equivalents | 8,593 | 17,813 | |||||
Restricted cash | 17,246 | 15,389 | |||||
Broker receivable | 12,959 | — | |||||
Due from related parties | 4,049 | 3,190 | |||||
Servicing assets, at fair value | 10,363 | 9,483 | |||||
Credits in lieu of cash | 1,889 | 2,229 | |||||
Other assets (includes $2,458 and $2,550, respectively, related to securitization trust VIE) | 15,702 | 20,266 | |||||
Total assets | $ | 304,975 | $ | 301,832 | |||
LIABILITIES AND NET ASSETS | |||||||
Liabilities: | |||||||
Notes payable | $ | 42,697 | $ | 43,023 | |||
Notes payable - Securitization trust VIE | 76,945 | 79,520 | |||||
Dividends payable | 3,985 | — | |||||
Due to related parties | 2,720 | 2,867 | |||||
Notes payable in credits in lieu of cash | 1,889 | 2,229 | |||||
Accounts payable, accrued expenses and other liabilities | 7,173 | 7,775 | |||||
Total liabilities | 135,409 | 135,414 | |||||
Commitments and contingencies | |||||||
Net Assets: | |||||||
Preferred stock (par value $0.02 per share; authorized 1,000 shares, no shares issued and outstanding) | — | — | |||||
Common stock (par value $0.02 per share; authorized 54,000 shares, 10,206 issued and outstanding at March 31, 2015 and December 31, 2014, respectively, not including 17 shares held in escrow) | 205 | 205 | |||||
Additional paid-in capital | 162,662 | 165,532 | |||||
Distributions in excess of net investment income | (8,984 | ) | (2,523 | ) | |||
Net unrealized appreciation on investments | 7,389 | 2,609 | |||||
Net realized gains on investments | 8,294 | 595 | |||||
Total net assets | 169,566 | 166,418 | |||||
Total liabilities and net assets | $ | 304,975 | $ | 301,832 | |||
Net asset value per common share | $ | 16.61 | $ | 16.31 | |||
1
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)
As a Business Development Company | Prior to becoming a Business Development Company | ||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||
Investment income: | |||||||
From non-controlled/non-affiliate investments | |||||||
Interest income | $ | 2,125 | $ | — | |||
Servicing income | 1,043 | — | |||||
Other income | 395 | — | |||||
Total investment income from non-controlled/non-affiliate investments | 3,563 | — | |||||
From controlled/affiliate investments | |||||||
Interest income | 88 | — | |||||
Dividend income | 1,087 | — | |||||
Other income | 12 | — | |||||
Total investment income from controlled/affiliate investments | 1,187 | — | |||||
Total investment income | 4,750 | — | |||||
Operating revenues: | |||||||
Electronic payment processing | — | 21,527 | |||||
Web hosting and design | — | 3,987 | |||||
Premium income | — | 5,137 | |||||
Interest income | — | 1,561 | |||||
Servicing fee income – NSBF portfolio | — | 832 | |||||
Servicing fee income – external portfolios | — | 1,793 | |||||
Income from tax credits | — | 13 | |||||
Insurance commissions | — | 385 | |||||
Other income | — | 852 | |||||
Total operating revenues | — | 36,087 | |||||
Net change in fair value of: | |||||||
SBA loans | — | (1,266 | ) | ||||
Credits in lieu of cash and notes payable in credits in lieu of cash | — | 1 | |||||
Total net change in fair value | — | (1,265 | ) | ||||
Expenses: | |||||||
Electronic payment processing costs | — | 18,362 | |||||
Salaries and benefits | 3,023 | 6,478 | |||||
Interest | 1,356 | 1,636 | |||||
Depreciation and amortization | 85 | 855 | |||||
Provision for loan losses | — | (205 | ) | ||||
Other general and administrative costs | 2,762 | 5,480 | |||||
Total expenses | 7,226 | 32,606 | |||||
Net investment loss | (2,476 | ) | — | ||||
Net realized and unrealized gain (loss): | |||||||
Net realized gain on non-affiliate investments | 7,699 | — | |||||
Net unrealized depreciation on SBA guaranteed non-affiliate investments | (1,698 | ) | — | ||||
2
As a Business Development Company | Prior to becoming a Business Development Company | ||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||
Net unrealized depreciation on SBA unguaranteed non-affiliate investments | (666 | ) | — | ||||
Net unrealized appreciation on affiliate investments | 7,500 | — | |||||
Net unrealized depreciation on servicing assets | (356 | ) | — | ||||
Net realized and unrealized gains | 12,479 | — | |||||
Income before income taxes | — | 2,216 | |||||
Net increase in net assets | $ | 10,003 | $ | — | |||
Provision for income taxes | — | 849 | |||||
Net income | — | 1,367 | |||||
Net loss attributable to non-controlling interests | — | 24 | |||||
Net income attributable to Newtek Business Services Corp. | $ | — | $ | 1,391 | |||
Weighted average common shares outstanding: | |||||||
Basic | — | 7,086 | |||||
Diluted | — | 7,677 | |||||
Basic income per share | $ | — | $ | 0.20 | |||
Diluted income per share | $ | — | $ | 0.18 | |||
Net increase in net assets per share | $ | 0.98 | $ | — | |||
Net investment loss per share | $ | (0.24 | ) | $ | — | ||
Dividends and distributions declared per common share | $ | 0.39 | $ | — | |||
Weighted average shares outstanding | 10,206 | — | |||||
See accompanying notes to unaudited condensed consolidated financial statements.
3
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
(In Thousands)
Number of Shares of Common Stock | Common Stock | Additional Paid-in Capital | Distributions in Excess of Net Investment Income | Net Unrealized Appreciation | Net Realized Gains | Total | |||||||||||||||||||
Balance at December 31, 2014 | 10,206 | $ | 205 | $ | 165,532 | $ | (2,523 | ) | $ | 2,609 | $ | 595 | $ | 166,418 | |||||||||||
Net increase in net assets from operations | — | — | — | (2,476 | ) | 4,780 | 7,699 | 10,003 | |||||||||||||||||
Distributions to stockholders | — | — | — | (3,985 | ) | — | — | (3,985 | ) | ||||||||||||||||
Reversal of deferred tax asset | — | — | (2,870 | ) | — | — | — | (2,870 | ) | ||||||||||||||||
Balance at March 31, 2015 | 10,206 | $ | 205 | $ | 162,662 | $ | (8,984 | ) | $ | 7,389 | $ | 8,294 | $ | 169,566 | |||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
4
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
As a Business Development Company | Prior to becoming a Business Development Company | ||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||
Cash flows from operating activities: | |||||||
Net increase in net assets/net income | $ | 10,003 | $ | 1,367 | |||
Adjustments to reconcile net increase in net assets/net income to net cash provided by (used in) operating activities: | |||||||
Net unrealized appreciation on affiliate investments | (7,500 | ) | — | ||||
Net unrealized depreciation on non-affiliate investments | 2,364 | — | |||||
Net unrealized depreciation on servicing assets | 356 | — | |||||
Income from tax credits | (8 | ) | (13 | ) | |||
Accretion of interest expense | 8 | 14 | |||||
Fair value adjustments on SBA loans | — | 1,266 | |||||
Fair value adjustment of credits in lieu of cash and notes payable in credits in lieu of cash | — | (1 | ) | ||||
Deferred income taxes | — | (319 | ) | ||||
Depreciation and amortization | 85 | 855 | |||||
Funding of affiliate investments | (200 | ) | — | ||||
Originations of SBA guaranteed non-affiliate investments | (37,288 | ) | — | ||||
Principal payments received on affiliate investments | 300 | — | |||||
Proceeds from sale of SBA guaranteed non-affiliate investments | 52,349 | — | |||||
Originations of SBA unguaranteed non-affiliate investments | (12,340 | ) | — | ||||
Payments received on SBA unguaranteed non-affiliate investments | 4,193 | — | |||||
Accretion of discount | 49 | 70 | |||||
Provision for loan losses | — | (205 | ) | ||||
Other, net | 196 | 643 | |||||
Changes in operating assets and liabilities: | |||||||
Net increase in investments in money market funds | (3,000 | ) | — | ||||
Originations of SBA loans held for sale | — | (34,224 | ) | ||||
Proceeds from sale of SBA loans held for sale | — | 34,955 | |||||
Broker receivable | (12,959 | ) | 700 | ||||
Due to/from related parties | (1,006 | ) | — | ||||
Accounts receivable | 109 | (263 | ) | ||||
Prepaid expenses, accrued interest receivable and other assets | 1,673 | 4,636 | |||||
Accounts payable, accrued expenses, other liabilities and deferred revenue | (541 | ) | (778 | ) | |||
Change in restricted cash | (6,039 | ) | — | ||||
Capitalized servicing assets | (1,236 | ) | — | ||||
Other, net | — | (875 | ) | ||||
Net cash provided by (used in) operating activities | (10,432 | ) | 7,828 | ||||
Cash flows from investing activities: | |||||||
5
As a Business Development Company | Prior to becoming a Business Development Company | ||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||
Investments in qualified businesses | — | (72 | ) | ||||
Purchase of fixed assets and customer accounts | (12 | ) | (588 | ) | |||
SBA loans originated for investment, net | — | (11,385 | ) | ||||
Payments received on SBA loans | — | 2,159 | |||||
Net cash used in investing activities | (12 | ) | (9,886 | ) | |||
Cash flows from financing activities: | |||||||
Net borrowings/(repayments) on bank lines of credit | 91 | (3,977 | ) | ||||
Payments on bank term note payable | (417 | ) | (104 | ) | |||
Payments on senior notes | (2,624 | ) | (2,355 | ) | |||
Change in restricted cash related to securitization | 4,182 | 6,323 | |||||
Additions to deferred financing costs | (4 | ) | (11 | ) | |||
Other, net | (4 | ) | (92 | ) | |||
Net cash provided by (used in) financing activities | 1,224 | (216 | ) | ||||
Net decrease in cash and cash equivalents | (9,220 | ) | (2,274 | ) | |||
Cash and cash equivalents—beginning of period | 17,813 | 12,508 | |||||
Cash and cash equivalents—end of period | $ | 8,593 | $ | 10,234 | |||
Supplemental disclosure of cash flow activities: | |||||||
Non-cash investing and financing activities: | |||||||
Reduction of credits in lieu of cash and notes payable in credits in lieu of cash balances due to delivery of tax credits to Certified Investors | $ | 348 | $ | 417 | |||
Foreclosed real estate acquired by portfolio company | $ | 409 | $ | — | |||
Dividends declared | $ | 3,985 | $ | — | |||
Reversal of deferred tax asset | $ | 2,870 | $ | — | |||
See accompanying notes to unaudited condensed consolidated financial statements.
6
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) MARCH 31, 2015
(In Thousands)
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Performing SBA Unguaranteed Investments (1) | |||||||||||||||||||||||||
MMS Realty, LLC and Molecular MS Diagnostics, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/18/2040 | $ | 160.7 | $ | 160.7 | $ | 149.2 | 0.09 | % | |||||||||||||
Gurtej Singh and Ranjit Kaur dba Food Fair Market | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/18/2025 | 22.5 | 22.5 | 17.9 | 0.01 | % | ||||||||||||||||
R & R Security and Investigations Inc. dba Pardners Lake Buchanan | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/19/2040 | 85.4 | 85.4 | 85.7 | 0.05 | % | ||||||||||||||||
Shelton Incorporated dba Mrs. Winners | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/20/2040 | 112.5 | 112.5 | 111.6 | 0.07 | % | ||||||||||||||||
CML RW Security, LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 3/20/2025 | 575.0 | 575.0 | 458.3 | 0.27 | % | ||||||||||||||||
Jaymie Hazard dba Indigo Hair Studio and Day Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/20/2040 | 42.9 | 42.9 | 40.2 | 0.02 | % | ||||||||||||||||
GPG Enterprises, LLC dba Angel Animal Hospital & Boarding | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/24/2040 | 67.5 | 67.5 | 63.8 | 0.04 | % | ||||||||||||||||
Loriet, LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/24/2025 | 12.0 | 12.0 | 9.6 | 0.01 | % | ||||||||||||||||
Zero-In Media Inc. | Data Processing, Hosting, and Related Services | Term Loan | Prime plus 2.75% | 3/25/2025 | 22.5 | 22.5 | 17.9 | 0.01 | % | ||||||||||||||||
Geo Los Angeles, LLC dba Geo Film Group | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 3/26/2025 | 130.0 | 130.0 | 114.8 | 0.07 | % | ||||||||||||||||
Joyce Outdoor Advertising NJ, LLC and Joyce Outdoor Advertising, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/26/2040 | 54.0 | 54.0 | 54.2 | 0.03 | % | ||||||||||||||||
Carpet Exchange of North Texas Inc. and Clyde E. Cumbie Jr. | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 3/26/2040 | 810.0 | 810.0 | 801.0 | 0.47 | % | ||||||||||||||||
South Florida Air Conditioning and Refrigeration Corp. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/27/2040 | 155.5 | 155.5 | 152.3 | 0.09 | % | ||||||||||||||||
Shorr Enterprises Inc. dba New Design Furniture Manufacturers | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2025 | 106.5 | 106.5 | 94.8 | 0.06 | % | ||||||||||||||||
Shellhorn and Hill Inc. dba Total Fleet Service | Nonstore Retailers | Term Loan | Prime plus 2.75% | 3/27/2040 | 1,040.3 | 1,040.3 | 925.6 | 0.55 | % | ||||||||||||||||
Foresite Realty Partners, LLC and Foresite Real Estate Holdings, LLC | Real Estate | Term Loan | Prime plus 2.75% | 3/27/2025 | 1,238.3 | 1,238.3 | 987.0 | 0.58 | % | ||||||||||||||||
Sunset Marine Resort, LLC and GoXpeditions, LLC | Accommodation | Term Loan | Prime plus 2.75% | 3/27/2040 | 301.8 | 301.8 | 302.7 | 0.18 | % | ||||||||||||||||
7
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Balthazar Management Virgin Islands, LLC dba The Beach Café | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/27/2025 | 123.3 | 123.3 | 121.5 | 0.07 | % | ||||||||||||||||
Copper Beech Financial Group, LLC | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 3/30/2025 | 125.0 | 125.0 | 109.4 | 0.06 | % | ||||||||||||||||
Delta Aggrigate, LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 3/30/2025 | 90.0 | 90.0 | 88.8 | 0.05 | % | ||||||||||||||||
The Merrin Group, LLC dba Havana Central | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2025 | 250.0 | 250.0 | 239.5 | 0.14 | % | ||||||||||||||||
Advance Case RE Holdings, LLC and Advance Case Parts Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/31/2040 | 758.3 | 624.0 | 559.9 | 0.33 | % | ||||||||||||||||
T and B Boots Inc. dba Takkens | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 3/31/2025 | 807.8 | 807.8 | 722.3 | 0.43 | % | ||||||||||||||||
Quest Logic Investments, LLC and Kleiner Investments, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2025 | 22.5 | 22.5 | 22.2 | 0.01 | % | ||||||||||||||||
Mid-South Lumber Co. of Northwest Florida, Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/31/2040 | 428.8 | 428.8 | 381.5 | 0.22 | % | ||||||||||||||||
Jatcoia 60056, LLC dba Style Encore | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 3/31/2025 | 22.3 | 22.3 | 20.2 | 0.01 | % | ||||||||||||||||
Triangle Trash, LLC dba Bin There Dump That | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 2/18/2025 | 74.4 | 74.4 | 64.5 | 0.04 | % | ||||||||||||||||
Kiddie Steps 4 You Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 2/20/2040 | 61.8 | 61.8 | 56.9 | 0.03 | % | ||||||||||||||||
Nelson Financial Services, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/24/2025 | 12.5 | 12.5 | 9.9 | 0.01 | % | ||||||||||||||||
Pace Motor Lines, Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 2/26/2025 | 66.2 | 66.2 | 64.3 | 0.04 | % | ||||||||||||||||
Kingseal, LLC dba Desoto Health and Rehab Center | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 2/26/2040 | 1,250.0 | 1,250.0 | 1,253.8 | 0.74 | % | ||||||||||||||||
J&M Concessions Inc, dba A 1 Liquors | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/27/2025 | 87.5 | 87.4 | 75.2 | 0.04 | % | ||||||||||||||||
Calhoun Satellite Communications Inc. and Transmission Solutions Group | Broadcasting (except Internet) | Term Loan | Prime plus 2.75% | 2/27/2025 | 952.8 | 952.8 | 801.0 | 0.47 | % | ||||||||||||||||
Road to Sedona Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/27/2025 | 56.6 | 56.6 | 46.0 | 0.03 | % | ||||||||||||||||
Baystate Firearms and Training, LLC | Educational Services | Term Loan | Prime plus 2.75% | 2/27/2025 | 63.4 | 63.4 | 51.1 | 0.03 | % | ||||||||||||||||
Luigi's on Main, LLC and Luigi's Main Street Pizza Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/4/2025 | 11.3 | 11.3 | 11.1 | 0.01 | % | ||||||||||||||||
Douglas Printy Motorsports, Inc. dba Blackburn Trike | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/10/2040 | 191.8 | 191.8 | 178.0 | 0.10 | % | ||||||||||||||||
Summit Treatment Services Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 3/11/2025 | 22.5 | 22.5 | 18.8 | 0.01 | % | ||||||||||||||||
8
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Firm Foundations Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/13/2025 | 81.3 | 81.3 | 80.1 | 0.05 | % | ||||||||||||||||
BND Sebastian Limited Liability Company | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/16/2040 | 172.5 | 172.5 | 166.8 | 0.10 | % | ||||||||||||||||
Royal Crest Motors, LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/16/2040 | 91.3 | 91.3 | 86.6 | 0.05 | % | ||||||||||||||||
Jung Design Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 1/20/2022 | 8.4 | 8.3 | 6.6 | — | % | ||||||||||||||||
Palmabak Inc. dba Mami Nora's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/22/2025 | 21.5 | 21.3 | 20.8 | 0.01 | % | ||||||||||||||||
DocMagnet Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 1/23/2025 | 22.5 | 22.4 | 18.6 | 0.01 | % | ||||||||||||||||
Limameno, LLC dba Sal's Italian Ristorante | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/23/2025 | 83.3 | 82.7 | 68.4 | 0.04 | % | ||||||||||||||||
Dean 1021, LLC dba Pure Pita | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/29/2025 | 80.0 | 47.2 | 39.0 | 0.02 | % | ||||||||||||||||
DuCharme Realty, LLC and DuCharme Enterprises, LLC | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 2/2/2040 | 225.1 | 225.1 | 204.8 | 0.12 | % | ||||||||||||||||
Kostekos Inc. dba New York Style Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/6/2040 | 66.3 | 66.3 | 62.5 | 0.04 | % | ||||||||||||||||
740 Barry Street Realty, LLC and Wild Edibles Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 2/10/2040 | 492.5 | 492.5 | 494.0 | 0.29 | % | ||||||||||||||||
Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/11/2040 | 171.6 | 171.6 | 158.3 | 0.09 | % | ||||||||||||||||
B & W Towing, LLC and Boychucks Fuel, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/17/2039 | 164.5 | 164.0 | 151.0 | 0.09 | % | ||||||||||||||||
MM and M Management Inc. dba Pizza Artista | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/19/2025 | 46.3 | 46.3 | 37.8 | 0.02 | % | ||||||||||||||||
B.S. Ventures, LLC dba Dink's Market | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/19/2039 | 53.8 | 53.6 | 53.4 | 0.03 | % | ||||||||||||||||
Will Zac Management, LLC dba Papa John's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/19/2024 | 48.8 | 48.2 | 47.5 | 0.03 | % | ||||||||||||||||
The Jewelers Inc. dba The Jewelers of Las Vegas | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 12/19/2024 | 1,250.0 | 1,235.2 | 997.1 | 0.59 | % | ||||||||||||||||
Beale Street Blues Company-West Palm Beach, LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 12/22/2024 | 187.5 | 185.2 | 157.1 | 0.09 | % | ||||||||||||||||
The Lodin Group, LLC and Lodin Health Imaging Inc. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/23/2039 | 530.3 | 528.7 | 472.1 | 0.28 | % | ||||||||||||||||
401 JJS Corporation and G Randazzo's Trattoria Corporation | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/23/2039 | 473.5 | 411.3 | 409.1 | 0.24 | % | ||||||||||||||||
9
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Thermoplastic Services Inc. and Paragon Plastic Sheet, Inc | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 12/23/2039 | 500.0 | 498.5 | 500.0 | 0.29 | % | ||||||||||||||||
Winter Ventures Inc. dba Qualitybargainbooks and Qualitybargainmall | Nonstore Retailers | Term Loan | Prime plus 2.75% | 12/23/2024 | 156.1 | 154.2 | 131.1 | 0.08 | % | ||||||||||||||||
Carolina Flicks Inc. dba The Howell Theater | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 12/23/2032 | 163.3 | 162.4 | 149.4 | 0.09 | % | ||||||||||||||||
Atlantis of Daytona. LLC and Ocean Club Sportswear Inc. | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 12/23/2039 | 240.0 | 239.3 | 240.0 | 0.14 | % | ||||||||||||||||
Bowlerama, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/24/2039 | 1,202.5 | 1,200.7 | 1,200.4 | 0.71 | % | ||||||||||||||||
Bear Creek Entertainment, LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 12/30/2024 | 106.3 | 104.9 | 103.5 | 0.06 | % | ||||||||||||||||
Evans and Paul, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/30/2024 | 223.8 | 221.0 | 205.7 | 0.12 | % | ||||||||||||||||
First Prevention and Dialysis Center, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/30/2024 | 238.3 | 120.4 | 118.8 | 0.07 | % | ||||||||||||||||
Grand Blanc Lanes, Inc. and H, H and H, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/31/2039 | 133.0 | 132.6 | 130.3 | 0.08 | % | ||||||||||||||||
FHJE Ventures, LLC and Eisenreich II Inc. dba Breakneck Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/31/2039 | 245.5 | 200.8 | 198.0 | 0.12 | % | ||||||||||||||||
MLM Enterprises, LLC and Demand Printing Solutions Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/18/2024 | 70.5 | 69.2 | 62.3 | 0.04 | % | ||||||||||||||||
DC Real, LLC and DC Enterprises, LTD dba Lakeview True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/20/2039 | 119.4 | 113.9 | 110.4 | 0.07 | % | ||||||||||||||||
Legacy Estate Planning Inc. dba American Casket Enterprises | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/21/2024 | 42.0 | 41.2 | 32.9 | 0.02 | % | ||||||||||||||||
J&D Resources, LLC dba Aqua Science | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/21/2024 | 767.9 | 753.8 | 616.4 | 0.36 | % | ||||||||||||||||
DeRidder Chiropractic, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/25/2024 | 13.2 | 13.0 | 12.3 | 0.01 | % | ||||||||||||||||
Teamnewman Enterprises, LLC dba Newmans at 988 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/25/2039 | 148.8 | 148.1 | 138.1 | 0.08 | % | ||||||||||||||||
Stormrider Inc. dba Shirley's Stormrider, Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 11/25/2024 | 150.0 | 147.2 | 117.4 | 0.07 | % | ||||||||||||||||
Modern Manhattan, LLC | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 11/25/2024 | 220.0 | 215.9 | 175.1 | 0.10 | % | ||||||||||||||||
Meridian Hotels, LLC dba Best Western Jonesboro | Accommodation | Term Loan | Prime plus 2.75% | 11/25/2039 | 228.0 | 228.0 | 228.6 | 0.13 | % | ||||||||||||||||
Trading Group 3, Inc. | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 11/26/2024 | 22.5 | 22.1 | 17.6 | 0.01 | % | ||||||||||||||||
10
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
The Red Pill Management Inc. dba UFC Gym Matthews | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 11/26/2024 | 54.3 | 53.8 | 44.6 | 0.03 | % | ||||||||||||||||
Homegrown For Good, LLC | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 11/26/2024 | 230.0 | 228.6 | 201.2 | 0.12 | % | ||||||||||||||||
Kemmer, LLC and Apples Tree Top Liquors, LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/4/2039 | 138.4 | 138.0 | 124.9 | 0.07 | % | ||||||||||||||||
The Conibear Corporation and Conibear Trucking, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 12/5/2024 | 12.0 | 11.9 | 10.4 | 0.01 | % | ||||||||||||||||
All American Games, LLC and Sportslink - The Game, LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 12/10/2024 | 400.0 | 395.0 | 337.8 | 0.20 | % | ||||||||||||||||
3 F Management, LLC and ATC Port Charlotte, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 10/17/2024 | 131.3 | 128.0 | 109.1 | 0.06 | % | ||||||||||||||||
185 Summerfield Inc. and Valcon Contracting Corp. | Construction of Buildings | Term Loan | Prime plus 2.75% | 10/24/2039 | 162.3 | 161.3 | 156.7 | 0.09 | % | ||||||||||||||||
Navdeep B Martins and Busy Bubbles, LLC dba Wishy Washy | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 10/24/2039 | 89.0 | 88.6 | 80.3 | 0.05 | % | ||||||||||||||||
Seelan Inc. dba Candleridge Market | Gasoline Stations | Term Loan | Prime plus 2.75% | 10/27/2039 | 90.5 | 90.0 | 83.8 | 0.05 | % | ||||||||||||||||
Kantz, LLC and Kantz Auto, LLC dba Kantz's Hometown Auto | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 10/29/2039 | 68.1 | 67.7 | 64.9 | 0.04 | % | ||||||||||||||||
Golden Transaction Corporation dba Bleh Sunoco | Gasoline Stations | Term Loan | Prime plus 2.75% | 10/30/2039 | 156.7 | 155.8 | 152.2 | 0.09 | % | ||||||||||||||||
Heartland American Properties, LLC and Skaggs RV Outlet, LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 10/31/2039 | 479.0 | 476.2 | 458.2 | 0.27 | % | ||||||||||||||||
Frontier Bulk Solutions, LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 10/31/2024 | 1,250.0 | 1,218.9 | 1,025.3 | 0.60 | % | ||||||||||||||||
M and C Renovations Inc. | Construction of Buildings | Term Loan | Prime plus 2.75% | 10/31/2024 | 20.3 | 19.8 | 15.9 | 0.01 | % | ||||||||||||||||
Laura L. Smith dba Lisa Smith Studio | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/3/2024 | 15.0 | 14.6 | 11.7 | 0.01 | % | ||||||||||||||||
Joey O's, LLC and Jennifer Olszewski | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/7/2024 | 13.1 | 12.7 | 10.1 | 0.01 | % | ||||||||||||||||
JEJE Realty, LLC and La Familia Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/10/2039 | 205.8 | 204.9 | 191.4 | 0.11 | % | ||||||||||||||||
Ryan Crick and Pamela J. Crick and Crick Enterprises Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/17/2039 | 145.5 | 144.4 | 144.5 | 0.09 | % | ||||||||||||||||
Modern Leather Goods Repair Shop Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/17/2024 | 58.8 | 56.5 | 44.3 | 0.03 | % | ||||||||||||||||
Play and Stay, LLC dba Zoom Room Tinton Falls | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/18/2024 | 42.1 | 41.3 | 32.4 | 0.02 | % | ||||||||||||||||
Utek Corporation dba Arcade Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/22/2039 | 405.5 | 403.2 | 398.6 | 0.24 | % | ||||||||||||||||
11
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Andrene's, LLC dba Andrene's Caribbean Soul Food Carry Out | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/23/2024 | 37.8 | 36.8 | 29.0 | 0.02 | % | ||||||||||||||||
R A Johnson Inc. dba Rick Johnson Auto and Tire | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/23/2039 | 301.3 | 299.0 | 299.1 | 0.18 | % | ||||||||||||||||
North Columbia, LLC and Loop Liquor and Convenience Store, LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/24/2039 | 159.3 | 158.1 | 152.0 | 0.09 | % | ||||||||||||||||
6 Price Avenue, LLC and Pauley Tree & Lawn Care, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/24/2039 | 452.5 | 449.2 | 390.4 | 0.23 | % | ||||||||||||||||
Keys Phase One, LLC dba The Grand Guesthouse | Accommodation | Term Loan | Prime plus 2.75% | 9/26/2039 | 736.3 | 730.9 | 704.8 | 0.42 | % | ||||||||||||||||
Auto Shine Carwash Inc. and AKM R. Hossain and Jessica F. Masud | Gasoline Stations | Term Loan | Prime plus 2.75% | 9/26/2024 | 22.5 | 21.8 | 18.0 | 0.01 | % | ||||||||||||||||
Gordon E Rogers dba Stonehouse Motor Inn | Accommodation | Term Loan | Prime plus 2.75% | 9/26/2039 | 57.5 | 57.1 | 57.1 | 0.03 | % | ||||||||||||||||
Colts V, LLC and Nowatzke Service Center, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/26/2039 | 601.8 | 597.3 | 572.8 | 0.34 | % | ||||||||||||||||
Orange County Insurance Brokerage Inc. dba Beaty Insurance Agency | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 9/29/2039 | 325.1 | 323.7 | 323.8 | 0.19 | % | ||||||||||||||||
The Woods at Bear Creek, LLC and Bear Creek Entertainment, LLC | Accommodation | Term Loan | Prime plus 2.75% | 9/29/2039 | 513.3 | 510.3 | 510.4 | 0.30 | % | ||||||||||||||||
Roccos, LLC and Sullo Pantalone Inc. dba Rocco's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2039 | 255.8 | 253.9 | 232.5 | 0.14 | % | ||||||||||||||||
Keller Holdings, LLC and David H Keller III and Carie C Keller | Scenic and Sightseeing Transportation | Term Loan | Prime plus 2.75% | 9/30/2039 | 100.0 | 99.3 | 97.9 | 0.06 | % | ||||||||||||||||
Route 130 SCPI Holdings LLC, (EPC) Route 130 SCPI Operations, LLC (OC) | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2039 | 538.8 | 538.8 | 491.1 | 0.29 | % | ||||||||||||||||
Sumad, LLC dba BrightStar Care of Encinitas | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/2/2024 | 92.5 | 90.8 | 88.6 | 0.05 | % | ||||||||||||||||
Michael Rey Jr. and Lynn J. Williams (EPC) and GIG Petcare | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 10/3/2039 | 126.9 | 125.9 | 121.4 | 0.07 | % | ||||||||||||||||
Smith Spinal Care Center P.C. and James C. Smith | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 10/8/2039 | 60.0 | 59.7 | 56.7 | 0.03 | % | ||||||||||||||||
Doctors Express Management of Central Texas, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 10/8/2024 | 105.0 | 90.6 | 83.2 | 0.05 | % | ||||||||||||||||
Boilermaker Industries, LLC dba PostNet | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/9/2024 | 18.8 | 18.5 | 16.5 | 0.01 | % | ||||||||||||||||
DNT Storage and Properties, LLC | Real Estate | Term Loan | Prime plus 2.75% | 10/10/2039 | 101.8 | 101.2 | 98.6 | 0.06 | % | ||||||||||||||||
Capitol Waste and Recycling Services, LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 10/10/2024 | 257.8 | 251.3 | 214.5 | 0.13 | % | ||||||||||||||||
Return to Excellence, Inc. dba The Waynesville Inn Golf & Spa | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 10/10/2039 | 1,250.0 | 1,249.0 | 1,249.6 | 0.74 | % | ||||||||||||||||
12
Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | |||||||||||||||||
Sound Manufacturing Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 10/10/2024 | 187.5 | 183.1 | 152.7 | 0.09 | % | ||||||||||||||||
One Hour Jewelry Repair Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/14/2024 | 20.6 | 20.0 | 15.7 | 0.01 | % | ||||||||||||||||
Grey Light Realty, LLC (EPC) NH Precision Metal Fabricators Inc. (OC) | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 8/21/2039 | 1,226.0 | 1,215.2 | 1,191.4 | 0.70 | % | ||||||||||||||||
Atlas Auto Body Inc. dba Atlas Auto Sales | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/22/2039 | 51.6 | 51.1 | 47.4 | 0.03 | % | ||||||||||||||||
Qycell Corporation | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 8/26/2024 | 121.0 | 116.6 | 101.0 | 0.06 | % | ||||||||||||||||
Orange County Cleaning Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/27/2024 | 41.3 | 39.7 | 31.2 | 0.02 | % | ||||||||||||||||
Lamjam, LLC (EPC) Goldsmith Lambros Inc. (OC) | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 8/27/2024 | 133.8 | 129.0 | 126.8 | 0.07 | % | ||||||||||||||||
Delta Aggrigate, LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 8/28/2039 | 911.3 | 906.1 | 906.3 | 0.53 | % | ||||||||||||||||
Alberti and Cardoni, LLC dba Menchie's | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 8/29/2024 | 77.3 | 75.8 | 62.4 | 0.04 | % | ||||||||||||||||
Feel The World Inc. dba Xero Shoes and Invisible Shoes | Leather and Allied Product Manufacturing | Term Loan | Prime plus 2.75% | 9/5/2024 | 51.9 | 50.3 | 40.9 | 0.02 | % | ||||||||||||||||
B&P Diners, LLC dba Engine House Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/10/2024 | 80.0 | 77.5 | 60.8 | 0.04 | % | ||||||||||||||||
Indy East Smiles Youth Dentistry, LLC dba Prime Smile East | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/11/2024 | 630.2 | 610.6 | 482.8 | 0.28 | % | ||||||||||||||||
KW Zion, LLC and Key West Gallery Inc. | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/12/2039 | 1,250.0 | 1,240.8 | |||||||||||||||||||