NEWT-6.30.15-10Q
Table of Contents

 
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 June 30, 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 July 31, 2015 there were 10,353,334 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
 


Table of Contents

TABLE OF CONTENTS
 
 
 
Page
 
 
 
 
 
 
Item 1.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
 
 
 
Item 1.
 
 
 
Item 1A.
 
 
 
Item 2.
 
 
 
Item 3.
 
 
 
Item 4.
 
 
 
Item 5.
 
 
 
Item 6.


Table of Contents


NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
 
June 30, 2015
 
December 31, 2014
ASSETS
(Unaudited)
 
(Note 1)
Investments, at fair value
 
 
 
SBA unguaranteed non-affiliate investments (cost of $147,654 and $131,093, respectively; includes $119,287 and $120,990, respectively, related to securitization trust VIE)
$
136,924

 
$
121,477

Controlled investments (cost of $13,172 and $18,065, respectively)
86,618

 
77,499

SBA guaranteed non-affiliate investments (cost of $2,253 and $28,057, respectively)
2,521

 
31,486

Investments in money market funds (cost of $226 and $3,000, respectively)
226

 
3,000

Total investments at fair value
226,289

 
233,462

Cash and cash equivalents
6,092

 
17,813

Restricted cash
18,498

 
15,389

Broker receivable
24,772

 

Due from related parties
3,992

 
3,190

Servicing assets, at fair value
11,275

 
9,483

Credits in lieu of cash
1,542

 
2,229

Other assets (includes $2,299 and $2,550, respectively, related to securitization trust VIE)
14,869

 
20,266

Total assets
$
307,329

 
$
301,832

LIABILITIES AND NET ASSETS
 
 
 
Liabilities:
 
 
 
Notes payable
$
26,322

 
$
43,023

Notes payable - Securitization trust VIE
72,312

 
79,520

Dividends payable
4,802

 

Notes payable - related parties
19,119

 

Due to related parties
3,204

 
2,867

Notes payable in credits in lieu of cash
1,542

 
2,229

Accounts payable, accrued expenses and other liabilities
10,404

 
7,775

Total liabilities
137,705

 
135,414

Commitments and contingencies (Note 8)
 
 
 
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 June 30, 2015 and December 31, 2014, not including 17 shares held in escrow)
205

 
205

Additional paid-in capital
162,646

 
165,532

Distributions in excess of net investment income
(7,294
)
 
(2,523
)
Net unrealized appreciation on investments
7,220

 
2,609

Net realized gains on investments
6,847

 
595

Total net assets
169,624

 
166,418

Total liabilities and net assets
$
307,329

 
$
301,832

Net asset value per common share
$
16.62

 
$
16.31

See accompanying notes to unaudited condensed consolidated financial statements.

1

Table of Contents

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
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
Investment income:
 
 
 
 
 
 
 
From non-affiliate investments
 
 
 
 
 
 
 
Interest income
$
2,231

 
$

 
$
4,356

 
$

Servicing income
1,068

 

 
2,111

 

Other income
464

 

 
859

 

Total investment income from non-affiliate investments
3,763

 

 
7,326

 

From controlled investments
 
 
 
 
 
 
 
Interest income
56

 

 
144

 

Dividend income
1,787

 

 
2,874

 

Other income

 

 
12

 

Total investment income from controlled investments
1,843

 

 
3,030

 

Total investment income
5,606

 

 
10,356

 

Operating revenues:
 
 
 
 
 
 
 
Electronic payment processing

 
23,163

 

 
44,690

Web hosting and design

 
4,114

 

 
8,101

Premium income

 
4,992

 

 
10,129

Interest income

 
1,568

 

 
3,129

Servicing fee income – NSBF portfolio

 
915

 

 
1,746

Servicing fee income – external portfolios

 
1,743

 

 
3,537

Income from tax credits

 
15

 

 
28

Insurance commissions

 
416

 

 
801

Other income

 
1,202

 

 
2,054

Total operating revenues

 
38,128

 

 
74,215

Net change in fair value of:
 
 
 
 
 
 
 
SBA loans

 
118

 

 
(1,147
)
Credits in lieu of cash and notes payable in credits in lieu of cash

 
(1
)
 

 

Total net change in fair value

 
117

 

 
(1,147
)
Expenses:
 
 
 
 
 
 
 
Electronic payment processing costs

 
19,575

 

 
37,937

Salaries and benefits
3,133

 
6,823

 
6,156

 
13,301

Interest
1,728

 
3,589

 
3,084

 
5,225

Depreciation and amortization
85

 
896

 
170

 
1,751

Provision for loan losses

 
139

 

 
(66
)
Other general and administrative costs
2,955

 
4,934

 
5,717

 
10,415

Total expenses
7,901

 
35,956

 
15,127

 
68,563

Net investment loss
(2,295
)
 

 
(4,771
)
 

Net realized and unrealized gain (loss):
 
 
 
 
 
 
 

2

Table of Contents

 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
Net realized gain on non-affiliate investments
7,340

 

 
15,039

 

Net unrealized depreciation on SBA guaranteed non-affiliate investments
(1,464
)
 

 
(3,162
)
 

Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(470
)
 

 
(1,136
)
 

Net unrealized appreciation on controlled investments
2,019

 

 
9,519

 

Net unrealized depreciation on servicing assets
(256
)
 

 
(612
)
 

Net unrealized appreciation on credits in lieu of cash and notes payable in credits in lieu of cash
2

 

 
2

 

Net realized and unrealized gains
7,171

 

 
19,650

 

Income before income taxes

 
2,289

 
 
 
4,505

Net increase in net assets
$
4,876

 
$

 
$
14,879

 
$

Provision for income taxes

 
911

 

 
1,760

Net income

 
1,378

 

 
2,745

Net loss attributable to non-controlling interests

 
16

 

 
40

Net income attributable to Newtek Business Services Corp.
$

 
$
1,394

 
$

 
$
2,785

Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic

 
7,106

 

 
7,096

Diluted

 
7,695

 

 
7,692

Basic income per share
$

 
$
0.20

 
$

 
$
0.39

Diluted income per share
$

 
$
0.18

 
$

 
$
0.36

Net increase in net assets per share
$
0.48

 
$

 
$
1.46

 
$

Net investment loss per share
$
(0.22
)
 
$

 
$
(0.47
)
 
$

Dividends and distributions declared per common share
$
0.47

 
$

 
$
0.86

 
$

Weighted average shares outstanding
10,206

 

 
10,206

 

See accompanying notes to unaudited condensed consolidated financial statements.

3

Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(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

 

 

 
(4,771
)
 
4,611

 
15,039

14,879

Distributions to stockholders

 

 

 

 

 
(8,787
)
(8,787
)
Consolidation of Texas Whitestone Group, LLC and CCC Real Estate Holdings Co., LLC (1)

 

 
(33
)
 

 

 

(33
)
Adjustment to 2014 offering costs

 

 
17

 

 

 

17

Reversal of deferred tax asset

 

 
(2,870
)
 

 

 

(2,870
)
Balance at June 30, 2015
10,206

 
$
205

 
$
162,646

 
$
(7,294
)
 
$
7,220

 
$
6,847

$
169,624


(1) During the quarter ended June 30, 2015 it was determined that Texas Whitestone Group, LLC and CCC Real Estate Holdings Co., LLC are controlled operating companies whose businesses consist of providing services to the Company.
See accompanying notes to unaudited condensed consolidated financial statements.

4

Table of Contents

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
 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
Cash flows from operating activities:
 
 
 
Net increase in net assets/net income
$
14,879

 
$
2,745

Adjustments to reconcile net increase in net assets/net income to net cash provided by operating activities:
 
 
 
Net unrealized appreciation on controlled investments
(9,519
)
 

Net unrealized depreciation on non-affiliate investments
4,298

 

Net unrealized depreciation on servicing assets
612

 

Realized gains on non-affiliate investments
(15,439
)
 

Realized losses on non-affiliate investments
400

 

Income from tax credits
(6
)
 
(28
)
Amortization of deferred financing costs and debt discount related to debt refinancing

 
1,905

Accretion of interest expense
9

 
28

Fair value adjustments on SBA loans

 
1,147

Deferred income taxes

 
(565
)
Depreciation and amortization
170

 
1,751

Purchase of loan from SBA
(703
)
 

Funding of controlled investments
(200
)
 

Originations of SBA guaranteed non-affiliate investments
(79,070
)
 

Principal payments received from controlled investments
600

 

Proceeds from sale of SBA guaranteed non-affiliate investments
119,969

 

Originations of SBA unguaranteed non-affiliate investments
(24,441
)
 

Payments received on SBA unguaranteed non-affiliate investments
7,792

 

Loss on sale of other real estate owned
(244
)
 

Accretion of discount
101

 
285

Provision for loan losses

 
(66
)
Other, net
688

 
1,091

Changes in operating assets and liabilities:
 
 
 
Net decrease in investments in money market funds
2,774

 

Originations of SBA loans held for sale

 
(67,037
)
Proceeds from sale of SBA loans held for sale

 
68,322

Broker receivable
(24,772
)
 
4,126

Due to/from related parties
(465
)
 

Accounts receivable
121

 
700

Prepaid expenses, accrued interest receivable and other assets
2,773

 
4,132

Accounts payable, accrued expenses, other liabilities and deferred revenue
2,675

 
2,837

Change in restricted cash
2,835

 
(8,351
)

5

Table of Contents

 
As a Business Development Company
 
Prior to becoming a Business Development Company
 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
Capitalized servicing assets
(2,404
)
 
(1,670
)
Net cash provided by operating activities
3,433

 
11,352

Cash flows from investing activities:
 
 
 
Investments in qualified businesses

 
(72
)
Purchase of fixed assets and customer accounts
(70
)
 
(895
)
SBA loans originated for investment, net

 
(21,158
)
Payments received on SBA loans

 
5,095

Proceeds from sale of loan held for investment

 
500

Net cash used in investing activities
(70
)
 
(16,530
)
Cash flows from financing activities:
 
 
 
Net borrowings/(repayments) on bank lines of credit
(7,534
)
 
1,635

Proceeds from term loan

 
10,000

Proceeds from related party line of credit
19,119

 

Payments on bank term note payable
(9,167
)
 
(10,590
)
Dividends paid
(3,985
)
 

Payments on senior notes
(7,309
)
 
(5,329
)
Change in restricted cash related to securitization
(5,944
)
 
6,412

Additions to deferred financing costs
(253
)
 
(303
)
Other, net
(11
)
 
(154
)
Net cash (used in) provided by financing activities
(15,084
)
 
1,671

Net decrease in cash and cash equivalents
(11,721
)
 
(3,507
)
Cash and cash equivalents—beginning of period
17,813

 
12,508

Cash and cash equivalents—end of period
$
6,092

 
$
9,001

Supplemental disclosure of cash flow activities:
 
 
 
Non-cash operating, 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
$
696

 
$
765

Increase in additional paid in capital attributable to deferred tax adjustment on vested stock
$

 
$
166

Foreclosed real estate acquired
$
713

 
$

Dividends declared
$
4,802

 
$

Reversal of deferred tax asset
$
2,870

 
$

See accompanying notes to unaudited condensed consolidated financial statements.



6

Table of Contents

NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 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)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Medical Centers P.C. dba Advanced Skincare Medcenter
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
$
337.5

 
$
337.5

 
$
275.1

 
0.16
%
The Smiles Place LLC dba The Smile Place
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
283.9

 
283.9

 
272.3

 
0.16
%
Anglin Cultured Stone Products, LLC dba Anglin Construction
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
281.8

 
281.8

 
239.4

 
0.14
%
Thrifty Market, Inc.
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
6/30/2030

 
262.5

 
262.5

 
223.1

 
0.13
%
All About Smiles P A
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
237.7

 
237.7

 
228.0

 
0.13
%
BJ's Tavern, LLC and BJ's Cabana Bar Inc
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
212.5

 
212.5

 
203.0

 
0.12
%
Jonathan E Nichols and Nichols Fire and Security, LLC
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/30/2025

 
75.0

 
75.0

 
68.6

 
0.04
%
Home Again Restaurant, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
59.0

 
59.0

 
57.2

 
0.03
%
Danny V, LLC dba Hugo's Taproom
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/30/2040

 
54.0

 
54.0

 
47.9

 
0.03
%
Summit Beverage Group, LLC
 
Beverage and Tobacco Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/29/2030

 
291.9

 
291.9

 
254.4

 
0.15
%
R2 Tape Inc. dba Presto Tape
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
176.3

 
176.3

 
161.8

 
0.10
%
North Atlanta RV Rentals, LLC
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
144.3

 
144.3

 
115.0

 
0.07
%
Myclean Inc.
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/29/2025

 
15.9

 
15.9

 
12.7

 
0.01
%
Jihan Inc, dba ARCO AM/PM and Diana Inc dba Diana's Recycling
 
Gasoline Stations
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
380.0

 
380.0

 
359.4

 
0.21
%
CEM Autobody, LLC dba Dawn's Autobody
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/26/2040

 
135.5

 
135.5

 
126.4

 
0.07
%
SofRep, Inc. dba Force 12 Media
 
Other Information Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
66.3

 
66.3

 
52.8

 
0.03
%
E & G Enterprises, LLC dba Comfort Keepers
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/26/2025

 
22.5

 
22.5

 
18.0

 
0.01
%
TJU-DGT, Inc. dba The Lorenz Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/26/2029

 
20.6

 
20.6

 
20.1

 
0.01
%
Ohs Auto Body, Inc. dba Ohs Body Shop
 
Repair and Maintenance
 
Term Loan
 
7.62%
 
6/25/2040

 
1,207.5

 
1,207.5

 
1,120.9

 
0.66
%

7

Table of Contents

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Wolf Enviro Interests, LLC and Enviromax Services Inc.
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/25/2040

 
246.5

 
246.5

 
217.9

 
0.13
%
Amboy Group, LLC dba Tommy's Moloney's
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
454.0

 
454.0

 
447.7

 
0.26
%
Evinger PA One, Inc. dba Postal Annex, Falcon
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
6/24/2025

 
22.5

 
22.5

 
19.3

 
0.01
%
Northeast Arkansas Pizza, Inc. dba Domino’s Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
608.0

 
608.0

 
488.8

 
0.29
%
Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/23/2040

 
551.8

 
551.8

 
553.4

 
0.33
%
RJI Services, Inc.
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/23/2025

 
37.5

 
37.5

 
29.9

 
0.02
%
Real Help, LLC dba Real Help Decorative Concrete
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
53.1

 
53.1

 
50.1

 
0.03
%
Balthazar Management Virgin Islands, LLC dba The Beach Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/22/2025

 
15.8

 
15.8

 
15.5

 
0.01
%
KRN Logistics, LLC, Newsome Trucking, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
543.5

 
543.5

 
473.8

 
0.28
%
New Paltz Dental Care, PLLC dba Ariel Dental Care
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
100.0

 
100.0

 
92.8

 
0.05
%
PM Cassidy Enterprises, Inc. dba Junk King
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
6/19/2025

 
14.9

 
14.9

 
11.9

 
0.01
%
Inverted Healthcare Staffing of Florida, LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
61.3

 
61.3

 
48.8

 
0.03
%
Square Deal Siding Company, LLC dba Square Deal Siding Company
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/18/2025

 
22.5

 
22.5

 
22.2

 
0.01
%
Flooring Liquidators Co Borrowers Flooring Liquidators of Mt Kisco LL
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/17/2025

 
437.5

 
437.5

 
416.6

 
0.25
%
AM PM Properties, LLC and AM PM Willington, LLC
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/17/2040

 
87.1

 
87.1

 
85.4

 
0.05
%
Nelson Sargsyan dba HDA Trucking
 
Support Activities for Transportation
 
Term Loan
 
Prime plus 2.75%
 
6/16/2025

 
130.5

 
130.5

 
104.0

 
0.06
%
Mirage Plastering Inc and Mpire LLC and Mpire II LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
338.8

 
338.8

 
279.5

 
0.16
%
Anturio Marketing Inc dba Logic Consulting
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/12/2040

 
290.3

 
290.3

 
291.1

 
0.17
%
Bizzare Foods Inc dba Trooper Foods
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/12/2025

 
125.0

 
125.0

 
99.6

 
0.06
%
Eldredge Tavern LLC dba Gonyea's Tavern
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/8/2040

 
56.3

 
56.3

 
56.4

 
0.03
%
ViAr Visual Communications, Inc. dba Fastsigns 281701
 
Miscellaneous Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
62.0

 
62.0

 
50.9

 
0.03
%

8

Table of Contents

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
6/5/2025

 
16.1

 
16.1

 
12.8

 
0.01
%
Nicor LLC dba Fibrenew Sacramento
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
6/5/2022

 
13.8

 
13.8

 
11.0

 
0.01
%
Video Vault & Tanning LLC and Mosaic Salon LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
6/4/2040

 
90.5

 
90.5

 
90.4

 
0.05
%
Medworxs LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
6/3/2025

 
125.0

 
125.0

 
100.7

 
0.06
%
DTM Parts Supply Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
6/2/2025

 
62.8

 
62.8

 
50.0

 
0.03
%
XCESSIVE THROTTLE, INC dba Jake's Roadhouse
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/29/2025

 
8.3

 
8.3

 
6.6

 
%
God is Good LLC dba BurgerFi
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
67.3

 
67.3

 
58.3

 
0.03
%
Villela CPA PL
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/27/2025

 
9.0

 
9.0

 
7.4

 
%
Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
5/20/2040

 
174.1

 
174.1

 
168.7

 
0.10
%
Pen Tex Inc dba The UPS Store
 
Administrative and Support Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
22.0

 
22.0

 
17.6

 
0.01
%
Opes Campitor Corporation dba Frux Documents
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
5/20/2025

 
16.5

 
16.5

 
13.4

 
0.01
%
Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/15/2025

 
717.3

 
717.3

 
584.7

 
0.34
%
15 McArdle LLC and No Other Impressions Inc
 
Printing and Related Support Activities
 
Term Loan
 
Prime plus 2.75%
 
5/15/2040

 
257.1

 
257.1

 
233.6

 
0.14
%
E-Z Box Storage, Inc.
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
5/11/2025

 
89.3

 
89.3

 
88.0

 
0.05
%
Guard Dogs MFS LLC
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
65.0

 
65.0

 
52.4

 
0.03
%
Homegrown For Good LLC
 
Apparel Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/8/2025

 
60.0

 
60.0

 
50.7

 
0.03
%
George S Cochran DDS Inc
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
5/7/2025

 
130.0

 
130.0

 
104.0

 
0.06
%
South Park Properties LLC and Midlothian Hardware LLC dba Gril
 
Building Material and Garden Equipment and Supplies Dealers
 
Term Loan
 
Prime plus 2.75%
 
5/6/2040

 
170.2

 
170.2

 
169.5

 
0.10
%
200 North 8th Street Associates LLC and Enchanted Acres Fa
 
Food Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
5/4/2028

 
494.6

 
494.6

 
490.4

 
0.29
%
Matthew Taylor and Landon Farm LLC
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
5/4/2040

 
23.6

 
23.6

 
23.5

 
0.01
%
Cares Inc dba Dumpling Grounds Day Care Center
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
5/1/2040

 
79.7

 
79.7

 
79.9

 
0.05
%

9

Table of Contents

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Eastern Energy Systems Inc and Solar Town LLC
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
4/30/2025

 
74.5

 
74.5

 
60.1

 
0.04
%
Capitol Compliance Associates Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
4/30/2025

 
15.8

 
15.8

 
12.6

 
0.01
%
RDRhonehouse ENT. LLC dba Chill Skinz
 
Miscellaneous Store Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
88.3

 
88.3

 
70.4

 
0.04
%
Orchid Enterprises Inc dba Assisting Hands of Sussex County
 
Ambulatory Health Care Services
 
Term Loan
 
Prime plus 2.75%
 
4/24/2025

 
14.9

 
14.9

 
11.9

 
0.01
%
Ragazza Restaurant Group, Inc. dba Bambolina
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.4

 
22.4

 
18.9

 
0.01
%
Diamond Solutions LLC
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
4/21/2025

 
22.4

 
22.4

 
17.8

 
0.01
%
Giacchino Maritime Consultants Inc
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
4/17/2025

 
22.4

 
22.4

 
17.8

 
0.01
%
Sound Coaching Inc
 
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
4/14/2025

 
44.2

 
44.2

 
35.2

 
0.02
%
Carolina Beefs, LLC dba Beef O'Brady's
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/13/2025

 
19.4

 
19.4

 
15.4

 
0.01
%
Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
4/3/2029

 
135.6

 
135.6

 
113.3

 
0.07
%
Faramarz Nikourazm dba Car Clinic Center
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
4/3/2040

 
73.6

 
73.6

 
69.4

 
0.04
%
T and B Boots Inc dba Takkens
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
797.9

 
797.9

 
730.2

 
0.43
%
Advance Case Parts RE Holdings LLC and Advance Case Parts Inc
 
Repair and Maintenance
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
758.3

 
758.3

 
679.7

 
0.40
%
Mid-South Lumber Co. of Northwest Florida, Inc.
 
Merchant Wholesalers, Durable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/31/2040

 
427.5

 
427.5

 
380.4

 
0.22
%
HAVANA CENTRAL NJ1, 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
%
Quest Logic Investments LLC and Kleiner Investments LLC dba Dairy Quee
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
22.2

 
22.2

 
21.9

 
0.01
%
Jatcoia 60056, LLC dba Style Encore
 
Clothing and Clothing Accessories Stores
 
Term Loan
 
Prime plus 2.75%
 
3/31/2025

 
21.7

 
21.7

 
19.7

 
0.01
%
Copper Beech Financial Group LLC
 
Insurance Carriers and Related Activities
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
123.5

 
123.5

 
108.2

 
0.06
%
Delta Aggrigate LLC
 
Mining (except Oil and Gas)
 
Term Loan
 
Prime plus 2.75%
 
3/30/2025

 
90.0

 
90.0

 
88.7

 
0.05
%
Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
 
Real Estate
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
1,222.9

 
1,222.9

 
975.0

 
0.57
%

10

Table of Contents

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
Shellhorn and Hill Inc dba Total Fleet Service
 
Nonstore Retailers
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
1,037.2

 
1,037.2

 
923.0

 
0.54
%
Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac
 
Accommodation
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
300.9

 
300.9

 
301.7

 
0.18
%
South Florida Air Conditioning and Refrigeration Corp.
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/27/2040

 
155.1

 
155.1

 
151.9

 
0.09
%
Balthazar Management Virgin Islands LLC dba The Beach Cafe
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
121.7

 
121.7

 
120.0

 
0.07
%
Shorr Enterprises Inc dba New Design Furniture Manufacturers
 
Furniture and Related Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
3/27/2025

 
105.2

 
105.2

 
93.8

 
0.06
%
Geo Los Angeles LLC dba Geo Film Group
 
Rental and Leasing Services
 
Term Loan
 
Prime plus 2.75%
 
3/26/2025

 
128.4

 
128.4

 
113.6

 
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

 
53.8

 
53.8

 
53.8

 
0.03
%
Carpet Exchange of North Texas Inc and Clyde E. Cumbie Jr
 
Furniture and Home Furnishings Stores
 
Term Loan
 
Prime plus 2.75%
 
3/25/2040

 
807.6

 
807.6

 
798.9

 
0.47
%
Zero-In Media Inc
 
Data Processing, Hosting, and Related Services
 
Term Loan
 
Prime plus 2.75%
 
3/25/2025

 
22.2

 
22.2

 
17.7

 
0.01
%
Loriet LLC
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
3/24/2025

 
11.9

 
11.9

 
9.4

 
0.01
%
CML RW Security, LLC
 
Construction of Buildings
 
Term Loan
 
Prime plus 2.75%
 
3/20/2025

 
567.9

 
567.9

 
452.7

 
0.27
%
Shelton Incorporated dba Mrs. Winners
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
112.2

 
112.2

 
111.0

 
0.07
%
Jaymie Hazard dba Indigo Hair Studio and Day Spa
 
Personal and Laundry Services
 
Term Loan
 
Prime plus 2.75%
 
3/20/2040

 
42.8

 
42.8

 
40.1

 
0.02
%
R & R Security and Investigations Inc dba Pardners Lake Buchanan
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
3/19/2040

 
85.2

 
85.2

 
85.4

 
0.05
%
MMS Realty, LLC and Molecular MS Diagnostics LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
3/18/2040

 
160.3

 
160.3

 
148.8

 
0.09
%
Gurtej Singh and Ranjit Kaur dba Food Fair Market
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
3/18/2025

 
22.2

 
22.2

 
17.7

 
0.01
%
BND Sebastian Limited Liability Company and Sebastian Fitness L
 
Amusement, Gambling, and Recreation Industries
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
172.0

 
172.0

 
166.4

 
0.10
%
Royal Crest Motors LLC
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/16/2040

 
91.0

 
91.0

 
86.4

 
0.05
%
Firm Foundations Inc
 
Specialty Trade Contractors
 
Term Loan
 
Prime plus 2.75%
 
3/13/2025

 
80.2

 
80.2

 
78.6

 
0.05
%
Summit Treatment Services Inc
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
3/11/2025

 
22.2

 
22.2

 
18.5

 
0.01
%
Douglas Printy Motorsports, Inc. dba Blackburn Trike
 
Motor Vehicle and Parts Dealers
 
Term Loan
 
Prime plus 2.75%
 
3/9/2040

 
191.2

 
191.2

 
177.5

 
0.10
%

11

Table of Contents

Portfolio Company
 
Industry
 
Type of Investment
 
Interest Rate (2)
 
Maturity
 
Principal
 
Cost
 
Fair Value
 
% of Net Assets
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

 
11.1

 
11.1

 
10.9

 
0.01
%
Calhoun Satellite Communications Inc and Transmission Solutions Group
 
Broadcasting (except Internet)
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
934.4

 
934.4

 
786.5

 
0.46
%
J&M Concessions Inc dba A 1 Liquors
 
Food and Beverage Stores
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
85.7

 
85.7

 
73.9

 
0.04
%
Baystate Firearms and Training, LLC
 
Educational Services
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
62.1

 
62.1

 
50.1

 
0.03
%
Road to Sedona Inc dba Thirteen
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/27/2025

 
55.6

 
55.6

 
45.2

 
0.03
%
Kingseal LLC dba Desoto Health and Rehab Center
 
Nursing and Residential Care Facilities
 
Term Loan
 
Prime plus 2.75%
 
2/26/2040

 
1,244.5

 
1,244.5

 
1,248.0

 
0.74
%
Pace Motor Lines, Inc.
 
Truck Transportation
 
Term Loan
 
Prime plus 2.75%
 
2/26/2025

 
65.1

 
65.1

 
63.4

 
0.04
%
Nelson Financial Services LLC
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
2/24/2025

 
12.2

 
12.2

 
9.7

 
0.01
%
Kiddie Steps 4 You Inc.
 
Social Assistance
 
Term Loan
 
Prime plus 2.75%
 
2/19/2040

 
61.7

 
61.7

 
56.8

 
0.03
%
Triangle Trash LLC dba Bin There Dump That
 
Waste Management and Remediation Services
 
Term Loan
 
Prime plus 2.75%
 
2/18/2025

 
73.0

 
73.0

 
63.4

 
0.04
%
Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc. dba T
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/11/2040

 
170.8

 
170.8

 
157.7

 
0.09
%
740 Barry Street Realty LLC and Wild Edibles Inc
 
Merchant Wholesalers, Nondurable Goods
 
Term Loan
 
Prime plus 2.75%
 
2/10/2040

 
490.3

 
490.3

 
491.7

 
0.29
%
Kostekos Inc dba New York Style Pizza
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
2/6/2040

 
66.0

 
66.0

 
62.2

 
0.04
%
DuCharme Realty LLC and DuCharme Enterprises LLC dba Specialty
 
Wood Product Manufacturing
 
Term Loan
 
Prime plus 2.75%
 
2/2/2040

 
224.1

 
224.1

 
203.9

 
0.12
%
Dean 1021 LLC dba Pure Pita
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
4/29/2025

 
80.0

 
80.0

 
65.1

 
0.04
%
Limameno LLC dba Sal's Italian Ristorante
 
Food Services and Drinking Places
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
81.2

 
81.2

 
67.1

 
0.04
%
DocMagnet Inc
 
Professional, Scientific, and Technical Services
 
Term Loan
 
Prime plus 2.75%
 
1/23/2025

 
21.9

 
21.9

 
18.2

 
0.01
%
Palmabak Inc dba Mami Nora's
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