Filed Pursuant to Rule 497
Securities Act File No. 333-212436
NEWTEK BUSINESS SERVICES CORP.
Supplement No. 2, dated November 13, 2017
to
Prospectus Supplement, dated September 6, 2017
This supplement contains information which amends, supplements or modifies certain information contained in the Prospectus of Newtek Business Services Corp. (the “Company”), dated August 29, 2017 (the “Prospectus”), as supplemented by the Prospectus Supplement dated September 6, 2017 and the Prospectus Supplement dated October 20, 2017 (together, the “Prospectus Supplements”), which relate to the sale of shares of common stock of the Company in an “at the market” offering pursuant to an equity distribution agreement, dated as of September 6, 2017, with JMP Securities LLC, Compass Point Research & Trading, LLC, Ladenburg Thalmann & Co. Inc., and D.A. Davidson & Co. Capitalized terms used but not defined herein shall have the same meaning given them in the Prospectus Supplements or Prospectus, as applicable.
You should carefully consider the “Risk Factors” beginning on page 23 of the Prospectus before you decide to invest.
Status of Our Offerings
On March 20, 2017, we established an at the market program to which this Supplement No. 2, dated November 8, 2017, and the Prospectus Supplements relate, and through which we may sell, from time to time at our sole discretion, up to 2,900,000 shares of our common stock. As of the date hereof, we have sold 700,746 shares of our common stock for net proceeds of approximately $11,889,000, after sales commissions to the Placement Agents of $243,000 and offering costs, under the at the market program. As a result, 2,199,254 shares of our common stock remain available for sale under the at the market program.
Form 10-Q
On November 7, 2017, we filed our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (“Form 10-Q”) with the Securities and Exchange Commission. On November 8, 2017, we filed Amendment No. 1 on Form 10-Q/A (“Form 10-Q/A”) to amend our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017. Form 10-Q/A was filed to correct typographical errors related to portfolio company names in the Consolidated Schedule of Investments as of September 30, 2017 in the Form 10-Q. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, Item 1. “Financial Statements,” of Part I. “Financial Information,” of the Form 10-Q was amended and restated in its entirety. The 10-Q/A did not amend or otherwise update any other information in the Form 10-Q. Therefore, Form 10-Q/A should be read in conjunction with the Form 10-Q. Form 10-Q/A has not been updated to reflect events that occurred after the date of the Form 10-Q.
We have attached Form 10-Q/A as Annex A to this supplement.
Recent Developments
Newtek Declares Fourth Quarter Dividend of $0.44 per Share
Meets 2017 Annual Dividend Guidance of $1.64 per share
On November 9, 2017, the Company announced that its Board of Directors declared a fourth quarter 2017 cash dividend(1) of $0.44 per share, payable on December 28, 2017 to shareholders of record as of December 18, 2017. The payment of the fourth quarter dividend is in line with the Company’s 2017 annual dividend guidance of $1.64 per share, which represents an approximate 7.2% increase over the 2016 annual cash dividend of $1.53 per share.
Note regarding Dividend Payments: The Company’s Board of Directors expects to maintain a dividend policy with the objective of making quarterly distributions in an amount that approximates 90 - 100% of the Company’s annual taxable income.(2) The determination of the tax attributes of the Company’s distributions is made annually as of the end of the Company’s fiscal year based upon its taxable income for the full year and distributions paid for the full year.
| (1) | The dividend will be paid in cash, or shares of the Company’s Common Stock through participation in the Company’s dividend reinvestment program (“DRIP”), at the election of shareholders. |
| (2) | Amount and timing of dividends, if any, remain subject to the discretion of the Company’s Board of Directors. |
Newtek Business Services Corp. Assigned “A-” Rating from Egan-Jones
On November 9, 2017, the Company announced that it has been assigned a rating of “A-” from Egan-Jones Ratings Co. (“Egan-Jones”). Egan-Jones noted that its credit rating rationale was supported by, among other things, the Company’s strong loan portfolio, unique business model, state-of-the-art technology, and flexible, customizable financing solutions for seasoned small businesses.
Egan-Jones is a Nationally Recognized Statistical Rating Organization and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Egan-Jones is also certified by the European Securities and Markets Authority.
Annex A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(AMENDMENT NO.1)
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017
OR
¨ 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.) | |
| 1981 Marcus Avenue, Suite 130, Lake Success, New York | 11042 | |
| (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 ¨ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company (all as defined in Rule 12b-2 of the Exchange Act).
| Large accelerated filer | ¨ | Accelerated filer | x |
| Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
| Emerging growth company | ¨ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial or accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
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 November 7, 2017 there were 18,004,247 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
EXPLANATORY NOTE
Newtek Business Services Corp. is filing this Amendment No. 1 on Form 10-Q/A (the “Form 10-Q/A”) to amend its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (the “Form 10-Q”), originally filed with the Securities and Exchange Commission on November 7, 2017. This Form 10-Q/A is being filed to correct typographical errors related to portfolio company names in the Consolidated Schedule of Investments as of September 30, 2017 in the Form 10-Q. In accordance with Rule 12b-15 under the Securities Exchange Act of 1934, as amended, Item 1. “Financial Statements,” of Part I. “Financial Information,” of the Form 10-Q is hereby amended and restated in its entirety. This 10-Q/A does not amend or otherwise update any other information in the Form 10-Q. This Form 10-Q/A should be read in conjunction with the Form 10-Q. This Form 10-Q/A has not been updated to reflect events that occurred after the date of the Form 10-Q.
Updated certifications of our principal executive officer and principal financial officer are included as exhibits to this Form 10-Q/A.
TABLE OF CONTENTS
Defined Terms
We have used “we,” “us,” “our”, “our company”, and “the Company” to refer to Newtek Business Services Corp. and its subsidiaries in this report. We also have used several other terms in this report, which are explained or defined below:
| Terms | |
| 1940 Act | Investment Company Act of 1940, as amended |
| 2016-1 Trust | Newtek Small Business Loan Trust, Series 2016-1 |
| 2021 Notes | 7% Notes due 2021 |
| 2022 Notes | 7.5% Notes due 2022 |
| ASC | Accounting Standards Codification, as issued by the FASB |
| ASU | Accounting Standards Updates, as issued by the FASB |
| ATM Equity Distribution Agreement | At the Market equity distribution agreement dated March 20, 2017 with JMP Securities, LLC, Compass Point Research & Trading, LLC and Ladenburg Thalman & Co., Inc., each Placement Agents. Amended and restated on September 6, 2017 to include D.A. Davidson as a Placement Agent |
| BDC | Business Development Company under the 1940 Act |
| Board | The Company's board of directors |
| Capital One | Capital One Bank, N.A. |
| Code | Internal Revenue Code of 1986, as amended |
| DRIP | Dividend reinvestment plan |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
| Equity Incentive Plan | The Company's 2015 Equity Incentive Plan |
| Exchange Act | Securities and Exchange Act of 1934, as amended |
| FASB | Financial Accounting Standards Board |
| Goldman Facility | Credit and Guaranty Agreement between UPSW and NTS and GS Bank; amended on September 18, to include Premier as a borrower; amended on June 21, 2017 to include BSP and SBL as borrowers |
| Goldman Sachs | Goldman Sachs Bank |
| LIBOR | London Interbank Offered Rate |
| Related Party RLOC | Unsecured revolving line of credit agreement between UPSW, NTS, Premier, BSP and SBL as lenders and Newtek as borrower |
| PLP | Preferred Lender Program, as authorized by the SBA |
| RIC | Regulated investment company under the Code |
| S&P | Standard and Poor's |
| SBA | United States Small Business Administration |
| SEC | Securities and Exchange Commission |
| SMB | Small-and-medium sized businesses |
| Sterling | Sterling National Bank |
| Sterling 504 Facility | Loan and Security Agreement between NBCS and Sterling, as lender to fund SBA 504 loans |
| Sterling Receivable and Inventory Facility | Loan and Security Agreement between NBCS and Sterling, as lender to fund accounts receivable and inventory financing arrangements |
| Taxable Subsidiaries | Companies formed by Newtek which are taxed as corporations for income tax purposes |
| Trustee | U.S. Bank, N.A. |
| U.S. GAAP | Generally accepted accounting principles in the United States |
| Portfolio Companies and Subsidiaries | |
| NSBF | Newtek Small Business Finance, LLC, a consolidated subsidiary which operates as a nationally licensed SBA lender under the federal Section 7(a) program with PLP status |
| UPSW | Universal Processing Services of Wisconsin, LLC dba Newtek Merchant Solutions, a wholly-owned controlled portfolio company which markets credit and debit card processing services, check approval services, processing equipment and software |
| Premier | Premier Payments LLC, a wholly-owned controlled portfolio company which markets credit and debit card processing services, check approval services, processing equipment and software |
| NTS | Newtek Technology Solutions, Inc., a wholly-owned controlled portfolio company that provides website hosting, dedicated server hosting, cloud hosting, web design and development, internet marketing, ecommerce, data storage, backup and disaster recovery and other related services |
| IPM | International Professional Marketing, Inc., a wholly-owned controlled portfolio company which provides consulting, design and implementation of technology solutions for enterprise and commercial clients |
| SIDCO | SIDCO, LLC dba Cloud Nine, a wholly-owned controlled portfolio company which provides consulting, design and implementation of technology solutions for enterprise and commercial clients |
| EWS | Excel WebSolutions, LLC, a controlled portfolio company which provides web design services to SMB's |
| NBCS | CDS Business Services, Inc. dba Newtek Business Credit Solutions, a wholly-owned controlled portfolio company which provides receivable and inventory financing, management services and managerial assistance to SMBs and originates loans under the SBA 504 loan program |
| SBL | Small Business Lending, LLC, a wholly-owned controlled portfolio company which provides third-party loan services for SBA and non-SBA loans |
| BSP | ADR Partners, LLC dba banc-serv Partners, LLC, a wholly-owned controlled portfolio company which provides lending institutions with outsourced solutions for the entire SBA lending process, including credit analysis, structuring and eligibility, packaging, closing compliance and servicing |
| NPS | PMTWorks Payroll, LLC dba Newtek Payroll and Benefits Solutions, a wholly-owned controlled portfolio company which provides payroll management, payment and tax reporting services to SMBs |
| NIA | Newtek Insurance Agency, LLC, a wholly-owned controlled portfolio company which specializes in the sale of commercial and health/benefits insurance products to the SMB market as well as various personal lines of insurance |
| TAM | Titanium Asset Management LLC, a wholly-owned controlled portfolio company which provides 24/7 customer service and call center support |
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
| September 30, 2017 | December 31, 2016 | |||||||
| (Unaudited) | (Note 1) | |||||||
| ASSETS | ||||||||
| Investments, at fair value | ||||||||
| SBA unguaranteed non-affiliate investments (cost of $265,132 and $219,784, respectively; includes $176,934 and $197,927, respectively, related to securitization trusts) | $ | 257,136 | $ | 211,471 | ||||
| SBA guaranteed non-affiliate investments (cost of $21,637 and $10,262, respectively) | 24,088 | 11,512 | ||||||
| Controlled investments (cost of $58,891 and $41,001, respectively) | 136,949 | 121,302 | ||||||
| Non-control/non-affiliate investments (cost of $0 and $904, respectively) | — | 904 | ||||||
| Investments in money market funds (cost of $9 and $35, respectively) | 9 | 35 | ||||||
| Total investments at fair value | 418,182 | 345,224 | ||||||
| Cash and cash equivalents | 3,915 | 2,051 | ||||||
| Restricted cash | 26,602 | 20,845 | ||||||
| Broker receivable | 25,003 | 2,402 | ||||||
| Due from related parties | 2,553 | 3,748 | ||||||
| Servicing assets, at fair value | 19,092 | 16,246 | ||||||
| Other assets | 10,980 | 10,934 | ||||||
| Total assets | $ | 506,327 | $ | 401,450 | ||||
| LIABILITIES AND NET ASSETS | ||||||||
| Liabilities: | ||||||||
| Bank notes payable | $ | 66,146 | $ | 5,100 | ||||
| Notes due 2022 (Note 7) | 7,915 | 7,853 | ||||||
| Notes due 2021 (Note 7) | 39,027 | 38,767 | ||||||
| Notes payable - Securitization trusts (Note 7) | 95,376 | 118,122 | ||||||
| Notes payable - related parties | 20,541 | 1,400 | ||||||
| Due to related parties | 812 | 1,227 | ||||||
| Deferred tax liabilities | 5,240 | 5,983 | ||||||
| Accounts payable, accrued expenses and other liabilities | 15,658 | 13,904 | ||||||
| Total liabilities | 250,715 | 192,356 | ||||||
| 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 200,000 shares, 17,730 and 14,624 issued and outstanding, respectively) | 355 | 293 | ||||||
| Additional paid-in capital | 234,955 | 188,472 | ||||||
| (Distributions in excess of)/undistributed net investment income | (3,069 | ) | 8,092 | |||||
| Net unrealized appreciation, net of deferred taxes | 11,347 | 13,008 | ||||||
| Net realized gains/(losses) | 12,024 | (771 | ) | |||||
| Total net assets | 255,612 | 209,094 | ||||||
| Total liabilities and net assets | $ | 506,327 | $ | 401,450 | ||||
| Net asset value per common share | $ | 14.40 | $ | 14.30 | ||||
See accompanying notes to unaudited condensed consolidated financial statements.
1
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)
| Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
| Investment income: | ||||||||||||||||
| From non-affiliate investments: | ||||||||||||||||
| Interest income | $ | 4,363 | $ | 2,583 | $ | 13,233 | $ | 7,404 | ||||||||
| Servicing income | 1,794 | 1,551 | 5,163 | 4,581 | ||||||||||||
| Other income | 705 | 692 | 2,266 | 1,913 | ||||||||||||
| Total investment income from non-affiliate investments | 6,862 | 4,826 | 20,662 | 13,898 | ||||||||||||
| From controlled investments: | ||||||||||||||||
| Interest income | 188 | 92 | 456 | 251 | ||||||||||||
| Dividend income | 2,551 | 2,933 | 7,326 | 7,719 | ||||||||||||
| Other income | — | — | 54 | — | ||||||||||||
| Total investment income from controlled investments | 2,739 | 3,025 | 7,836 | 7,970 | ||||||||||||
| Total investment income | 9,601 | 7,851 | 28,498 | 21,868 | ||||||||||||
| Expenses: | ||||||||||||||||
| Salaries and benefits | 4,776 | 3,665 | 14,407 | 10,638 | ||||||||||||
| Interest | 2,986 | 2,341 | 8,133 | 5,804 | ||||||||||||
| Depreciation and amortization | 107 | 84 | 292 | 209 | ||||||||||||
| Professional fees | 605 | 807 | 2,054 | 2,519 | ||||||||||||
| Origination and servicing | 1,433 | 1,537 | 4,086 | 4,190 | ||||||||||||
| Change in fair value of contingent consideration liabilities | (748 | ) | — | (748 | ) | — | ||||||||||
| Other general and administrative costs | 1,634 | 1,542 | 5,239 | 6,094 | ||||||||||||
| Total expenses | 10,793 | 9,976 | 33,463 | 29,454 | ||||||||||||
| Net investment loss | (1,192 | ) | (2,125 | ) | (4,965 | ) | (7,586 | ) | ||||||||
| Net realized and unrealized gains (losses): | ||||||||||||||||
| Net realized gain on non-affiliate investments | 9,938 | 8,716 | 27,537 | 22,536 | ||||||||||||
| Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments | 1,151 | (78 | ) | 1,201 | 690 | |||||||||||
| Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments | (1,023 | ) | 1,418 | 238 | 869 | |||||||||||
| Net unrealized (depreciation) appreciation on controlled investments | (500 | ) | 4,638 | (2,243 | ) | 10,362 | ||||||||||
| Change in provision for deferred taxes on unrealized depreciation (appreciation) on investments | 335 | (2,028 | ) | 745 | (4,469 | ) | ||||||||||
| Net unrealized depreciation on non-control/non-affiliate investments | — | — | — | (43 | ) | |||||||||||
| Net unrealized depreciation on servicing assets | (632 | ) | (500 | ) | (1,601 | ) | (1,341 | ) | ||||||||
| Net unrealized depreciation on credits in lieu of cash and notes payable in credits in lieu of cash | — | (1 | ) | — | (2 | ) | ||||||||||
| Net realized and unrealized gains | 9,269 | 12,165 | 25,877 | 28,602 | ||||||||||||
| Net increase in net assets | $ | 8,077 | $ | 10,040 | $ | 20,912 | $ | 21,016 | ||||||||
| Net increase in net assets per share | $ | 0.46 | $ | 0.69 | $ | 1.22 | $ | 1.45 | ||||||||
| Net investment loss per share | $ | (0.07 | ) | $ | (0.15 | ) | $ | (0.29 | ) | $ | (0.52 | ) | ||||
| Dividends declared per common share | $ | 0.44 | $ | 0.43 | $ | 1.20 | $ | 1.13 | ||||||||
| Weighted average shares outstanding | 17,487 | 14,556 | 17,076 | 14,515 | ||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
2
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)
| Nine Months Ended September 30, 2017 | ||||
| Increase in net assets: | ||||
| Net investment loss | $ | (4,965 | ) | |
| Net realized gains on investments | 27,537 | |||
| Net change in unrealized depreciation on investments | (59 | ) | ||
| Net change in unrealized depreciation on servicing assets | (1,601 | ) | ||
| Net increase in net assets | 20,912 | |||
| Distributions to common stockholders: | ||||
| Dividends to common stockholders from net investment income | (6,151 | ) | ||
| Distributions to stockholders from net realized gains | (14,686 | ) | ||
| Total distributions to stockholders | (20,837 | ) | ||
| Capital share transactions: | ||||
| Issuance of common stock under dividend reinvestment plan | 475 | |||
| Stock-based compensation expense | 904 | |||
| Issuance of common stock in connection with investment in International Professional Marketing, Inc. | 1,000 | |||
| Purchase of vested stock for employee payroll tax withholding | (644 | ) | ||
| Issuance of common stock, net of offering costs | 44,708 | |||
| Net increase in net assets from capital share transactions | 46,443 | |||
| Total increase in net assets | 46,518 | |||
| Net assets at beginning of period | 209,094 | |||
| Net assets at end of period (includes $3,069 of distributions in excess of net investment income) | $ | 255,612 | ||
| Common shares outstanding at end of period | 17,750 | |||
| Capital share activity: | ||||
| Shares issued under dividend reinvestment plan | 30 | |||
| Shares issued in connection with public offerings | 3,043 | |||
| Shares issued in connection with investment in International Professional Marketing, Inc. | 61 | |||
| Purchase of vested stock for employee payroll tax withholding | (38 | ) | ||
| Restricted shares issued under Equity Incentive Plan, net of forfeitures | 10 | |||
| Net increase in capital activity | 3,106 | |||
See accompanying notes to unaudited condensed consolidated financial statements.
3
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
| Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net increase in net assets | $ | 20,912 | $ | 21,016 | ||||
| Adjustments to reconcile net increase in net assets to net cash used in operating activities: | ||||||||
| Net unrealized depreciation (appreciation) on controlled investments | 2,243 | (10,362 | ) | |||||
| Net unrealized appreciation on non-affiliate investments | (1,438 | ) | (1,516 | ) | ||||
| Net unrealized depreciation on servicing assets | 1,602 | 1,341 | ||||||
| Realized gains on non-affiliate investments | (27,668 | ) | (23,299 | ) | ||||
| Realized losses on non-affiliate investments | 131 | 763 | ||||||
| Loss on lease | 249 | 1,335 | ||||||
| Amortization of deferred financing costs | 1,075 | 921 | ||||||
| Change in fair value of contingent consideration liabilities | 748 | — | ||||||
| Deferred income taxes | (745 | ) | 4,469 | |||||
| Depreciation and amortization | 292 | 209 | ||||||
| Purchase of loan from SBA | (3,821 | ) | (2,057 | ) | ||||
| Purchase of SBA 7(a) loan portfolio | (175 | ) | — | |||||
| Funding of controlled investments | (27,000 | ) | (6,175 | ) | ||||
| Funding of non-control/non-affiliate investments | (3,255 | ) | (1,020 | ) | ||||
| Originations of SBA guaranteed non-affiliate investments | (200,620 | ) | (166,212 | ) | ||||
| Principal payments received from controlled investments | 12,332 | 1,800 | ||||||
| Principal payments received from non-control/non-affiliate investments | 3,255 | 910 | ||||||
| Return of investment from controlled investment | 50 | — | ||||||
| Proceeds from sale of SBA guaranteed non-affiliate investments | 217,016 | 183,452 | ||||||
| Originations of SBA unguaranteed non-affiliate investments | (62,185 | ) | (51,567 | ) | ||||
| Payments received on SBA non-affiliate investments | 20,327 | 15,336 | ||||||
| Other, net | 1,139 | 527 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Net decrease in investments in money market funds | 26 | — | ||||||
| Broker receivable | (22,601 | ) | 10,588 | |||||
| Due to/from related parties | 780 | 542 | ||||||
| Other assets | 437 | 470 | ||||||
| Accounts payable, accrued expenses and other liabilities | (133 | ) | 1,300 | |||||
| Change in restricted cash | (4,585 | ) | (1,923 | ) | ||||
| Capitalized servicing assets | (4,447 | ) | (3,919 | ) | ||||
| Other, net | (80 | ) | 23 | |||||
| Net cash used in operating activities | (76,139 | ) | (23,048 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of fixed assets | (345 | ) | (294 | ) | ||||
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)
| Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||
| Cash flows from financing activities: | ||||||||
| Net borrowings on bank lines of credit | 61,046 | 20,819 | ||||||
| Net borrowings on related party line of credit | 19,141 | 1,753 | ||||||
| Repurchase of common stock under share repurchase plan | — | (866 | ) | |||||
| Proceeds from common shares sold, net of offering costs | 44,708 | — | ||||||
| Purchase of vested stock for employee payroll tax withholding | (644 | ) | — | |||||
| Proceeds from Notes due 2021 | — | 40,250 | ||||||
| Dividends paid | (20,836 | ) | (22,168 | ) | ||||
| Payments on Notes Payable - Securitization Trusts | (23,414 | ) | (16,297 | ) | ||||
| Change in restricted cash related to securitization trusts | (1,172 | ) | 11 | |||||
| Additions to deferred financing costs | (480 | ) | (1,740 | ) | ||||
| Other, net | (1 | ) | (10 | ) | ||||
| Net cash provided by financing activities | 78,348 | 21,752 | ||||||
| Net increase (decrease) in cash and cash equivalents | 1,864 | (1,590 | ) | |||||
| Cash and cash equivalents—beginning of period | 2,051 | 4,308 | ||||||
| Cash and cash equivalents—end of period | $ | 3,915 | $ | 2,718 | ||||
| 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 | $ | — | $ | 652 | ||||
| Foreclosed real estate acquired | $ | 212 | $ | 387 | ||||
| Issuance of common shares in connection with investment in International Professional Marketing, Inc. | $ | 1,000 | $ | — | ||||
| Issuance of common stock under dividend reinvestment plan | $ | 477 | $ | 588 | ||||
| Fixed assets acquired from tenant improvement allowance | $ | — | $ | 1,288 | ||||
See accompanying notes to unaudited condensed consolidated financial statements.
5
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Performing SBA Unguaranteed Investments (1) | ||||||||||||||||||||||||
| Dan Cline Transport Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 9/29/2030 | $ | 1,005.5 | $ | 1,005.5 | $ | 895.1 | 0.35 | % | ||||||||||||
| Lone Star Hardware and Home Decor, LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/29/2027 | 72.5 | 72.5 | 62.8 | 0.02 | % | |||||||||||||||
| Threads of Time LLC | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 9/29/2042 | 137.5 | 137.5 | 136.6 | 0.05 | % | |||||||||||||||
| Miechella Suzette Decker | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/29/2042 | 100.0 | 100.0 | 105.6 | 0.04 | % | |||||||||||||||
| Harco Metal Products Inc | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 9/29/2042 | 489.0 | 489.0 | 467.3 | 0.18 | % | |||||||||||||||
| SSN GROUP LLC and Dockside Steel Processing LLC | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/29/2042 | 1,250.0 | 1,250.0 | 1,264.9 | 0.49 | % | |||||||||||||||
| Sashshel Corporation | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/29/2042 | 212.5 | 212.5 | 224.4 | 0.09 | % | |||||||||||||||
| Dr Richard Rolle JR, PLLC dba Rolle Oral & Facial Surgery PLLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/29/2042 | 875.0 | 875.0 | 864.0 | 0.34 | % | |||||||||||||||
| Cagwin Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 9/29/2042 | 325.0 | 325.0 | 336.8 | 0.13 | % | |||||||||||||||
| Pets A Go Go LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/28/2042 | 198.1 | 198.1 | 202.6 | 0.08 | % | |||||||||||||||
| Rhode Island Tennis Management LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/28/2042 | 550.0 | 550.0 | 545.3 | 0.21 | % | |||||||||||||||
| Nicholson Lumber Co Inc. | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/28/2030 | 215.0 | 215.0 | 211.5 | 0.08 | % | |||||||||||||||
| National Media Services, Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/28/2027 | 18.8 | 18.8 | 16.2 | 0.01 | % | |||||||||||||||
| Rhode Island Tennis Management LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/28/2042 | 383.0 | 383.0 | 379.7 | 0.15 | % | |||||||||||||||
| Moreno Brother's Inc. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/28/2027 | 15.0 | 15.0 | 12.9 | 0.01 | % | |||||||||||||||
| Complete Care IT LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/27/2027 | 15.0 | 15.0 | 12.9 | 0.01 | % | |||||||||||||||
| Technologist Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/27/2027 | 434.5 | 434.5 | 411.9 | 0.16 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
6
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Inspirations Food Design, Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/26/2042 | 466.0 | 466.0 | 468.5 | 0.18 | % | |||||||||||||||
| Rollins Construction & Trucking LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 9/26/2027 | 341.3 | 341.3 | 332.0 | 0.13 | % | |||||||||||||||
| JPS Arthur Kill Rd Bakery Corp dba Aunt Butches of Brooklyn | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/22/2027 | 22.5 | 22.5 | 19.6 | 0.01 | % | |||||||||||||||
| KB Waterjet Cutting LLC | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/22/2027 | 10.2 | 10.2 | 9.3 | — | % | |||||||||||||||
| Magnation Corporation | Utilities | Term Loan | Prime plus 2.75% | 9/22/2027 | 50.0 | 50.0 | 50.8 | 0.02 | % | |||||||||||||||
| Sallee Pro-Custom Fabrication Shop LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/21/2027 | 9.0 | 9.0 | 9.2 | — | % | |||||||||||||||
| Excel, RP Inc. | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 9/20/2027 | 100.0 | 100.0 | 92.2 | 0.04 | % | |||||||||||||||
| Denek Contracting Inc and Denek Leasing LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/20/2042 | 209.8 | 209.8 | 221.5 | 0.09 | % | |||||||||||||||
| Max Home Deliveries, Inc | Couriers and Messengers | Term Loan | Prime plus 2.75% | 9/20/2027 | 80.8 | 80.8 | 73.8 | 0.03 | % | |||||||||||||||
| CR Park Incorporated dba Define Body and Mind | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/20/2027 | 100.0 | 27.5 | 26.8 | 0.01 | % | |||||||||||||||
| Sound Manufacturing, Inc. & Monster Power Equipment, Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/20/2027 | 200.0 | 200.0 | 189.1 | 0.07 | % | |||||||||||||||
| Alpha Preparatory Academy LLC | Social Assistance | Term Loan | Prime plus 2.75% | 9/20/2042 | 162.5 | 162.5 | 160.7 | 0.06 | % | |||||||||||||||
| Montessori Community School | Social Assistance | Term Loan | Prime plus 2.75% | 9/20/2042 | 391.5 | 391.5 | 380.8 | 0.15 | % | |||||||||||||||
| NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 9/20/2027 | 1,027.5 | 1,027.5 | 978.6 | 0.38 | % | |||||||||||||||
| Imagine By Carleen, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/20/2027 | 7.5 | 7.5 | 7.3 | — | % | |||||||||||||||
| Alexander Pierce Corporation | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/20/2042 | 625.0 | 625.0 | 621.9 | 0.24 | % | |||||||||||||||
| Venus Pizza, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/20/2042 | 91.3 | 91.3 | 96.3 | 0.04 | % | |||||||||||||||
| Insight Diagnostic Technologist Services | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/20/2027 | 302.8 | 302.8 | 271.7 | 0.11 | % | |||||||||||||||
| Commonwealth Diagnostics International, Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/20/2027 | 1,250.0 | 1,250.0 | 1,271.2 | 0.50 | % | |||||||||||||||
| Stone's Construction and Remodeling, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/19/2027 | 5.3 | 5.3 | 4.5 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
7
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| CIS BIG DOG, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/19/2027 | 61.3 | 61.3 | 61.1 | 0.02 | % | |||||||||||||||
| Party By Design Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/18/2042 | 1,205.0 | 1,205.0 | 1,188.4 | 0.46 | % | |||||||||||||||
| Li Family Spokane LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/15/2042 | 384.5 | 384.5 | 395.6 | 0.15 | % | |||||||||||||||
| SD Kickboxing LLC dba CKO Kickboxing Dan Diego | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/15/2027 | 40.0 | 40.0 | 36.0 | 0.01 | % | |||||||||||||||
| Clark Realty LLC | Real Estate | Term Loan | Prime plus 2.75% | 9/15/2027 | 62.5 | 62.5 | 57.3 | 0.02 | % | |||||||||||||||
| Inglis Food Mart Inc. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/15/2027 | 22.5 | 22.5 | 22.3 | 0.01 | % | |||||||||||||||
| Clinton Food Market LLC | Gasoline Stations | Term Loan | Prime plus 2.75% | 9/15/2042 | 262.5 | 262.5 | 262.1 | 0.10 | % | |||||||||||||||
| Tarleton & Family Landscaping, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/15/2027 | 83.8 | 83.8 | 74.7 | 0.03 | % | |||||||||||||||
| Alaska Motor Home Inc | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 9/13/2027 | 331.5 | 331.5 | 285.7 | 0.11 | % | |||||||||||||||
| Fox Valley Rentals & Investments, LLC | Food Services and Drinking Places | Term Loan | Prime plus 3.75% | 9/13/2027 | 7.5 | 7.5 | 7.5 | — | % | |||||||||||||||
| Nails By Mercede LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/13/2027 | 14.3 | 14.3 | 13.3 | 0.01 | % | |||||||||||||||
| Town & Country Transportation Co. and Popco, LLC. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/12/2042 | 168.8 | 168.8 | 178.2 | 0.07 | % | |||||||||||||||
| Rajbai Maa Inc. dba Nara Lounge | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/12/2042 | 388.1 | 388.1 | 375.6 | 0.15 | % | |||||||||||||||
| Morgan Lynn Kerstetter dba Catherine School of Dance | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 9/11/2027 | 7.5 | 7.5 | 7.6 | — | % | |||||||||||||||
| Health & Performance Center, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/11/2027 | 20.4 | 20.4 | 17.6 | 0.01 | % | |||||||||||||||
| Foxtail, LLC and Tottly New Services Corp | Social Assistance | Term Loan | Prime plus 2.75% | 9/8/2042 | 291.3 | 291.3 | 291.8 | 0.11 | % | |||||||||||||||
| Desert Ribs, LLC and Famous Charlie, LLC and Famous Freddie, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/8/2042 | 1,250.0 | 1,250.0 | 1,177.4 | 0.46 | % | |||||||||||||||
| Echelon Planning Group, LLC dba Echelon Financial Services | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 9/8/2027 | 7.5 | 7.5 | 7.3 | — | % | |||||||||||||||
| South Fulton Landscape & Nursery, Inc. | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/7/2042 | 100.0 | 100.0 | 105.6 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
8
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Crazy Beatz Productions LLC | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 3.75% | 9/7/2027 | 5.3 | 5.3 | 5.0 | — | % | |||||||||||||||
| Dreaming Big Learning Center Inc | Social Assistance | Term Loan | Prime plus 2.75% | 9/5/2042 | 367.8 | 367.8 | 368.2 | 0.14 | % | |||||||||||||||
| Big Coop's Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 9/1/2027 | 100.0 | 100.0 | 93.8 | 0.04 | % | |||||||||||||||
| Blue Eagel Transport Inc | Couriers and Messengers | Term Loan | Prime plus 2.75% | 8/31/2027 | 383.5 | 383.5 | 330.6 | 0.13 | % | |||||||||||||||
| Evernook Valley Milk LLC | Animal Production and Aquaculture | Term Loan | Prime plus 2.75% | 8/31/2042 | 642.5 | 642.5 | 639.5 | 0.25 | % | |||||||||||||||
| Bark Life, Inc. | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/31/2027 | 22.5 | 22.5 | 19.4 | 0.01 | % | |||||||||||||||
| The Pink Alli, LLC dba The Alli | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/30/2027 | 18.0 | 18.0 | 16.1 | 0.01 | % | |||||||||||||||
| Busby Outdoor LLC | Real Estate | Term Loan | Prime plus 2.75% | 8/29/2042 | 700.0 | 700.0 | 631.0 | 0.25 | % | |||||||||||||||
| Busby Outdoor LLC | Real Estate | Term Loan | Prime plus 2.75% | 8/29/2042 | 550.0 | 550.0 | 495.8 | 0.19 | % | |||||||||||||||
| Lake County Tow LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 8/25/2042 | 87.5 | 87.5 | 87.0 | 0.03 | % | |||||||||||||||
| Parlay Disributors LLC | Educational Services | Term Loan | Prime plus 2.75% | 8/25/2027 | 112.5 | 112.5 | 98.5 | 0.04 | % | |||||||||||||||
| InUSA Ventures Inc dba InUSA Services | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 8/24/2027 | 25.0 | 25.0 | 21.5 | 0.01 | % | |||||||||||||||
| Genuine Ventures LLC and Seaweed Ventures LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/24/2030 | 557.8 | 557.8 | 521.4 | 0.20 | % | |||||||||||||||
| R & R Strength & Conditioning Corp dba Crossfit Light House Point | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 8/23/2042 | 82.5 | 82.5 | 87.1 | 0.03 | % | |||||||||||||||
| Delicias de Minas Restaurant, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/22/2027 | 206.3 | 206.3 | 201.2 | 0.08 | % | |||||||||||||||
| The Holder Grooup LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/22/2027 | 7.5 | 7.5 | 6.5 | — | % | |||||||||||||||
| L&V Auto Sales, Inc. | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 8/21/2027 | 18.0 | 18.0 | 18.3 | 0.01 | % | |||||||||||||||
| M.E. Interiors LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/21/2027 | 16.5 | 16.5 | 14.2 | 0.01 | % | |||||||||||||||
| Damiano Global Corp | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/21/2027 | 22.5 | 22.5 | 21.1 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
9
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Tier1Solutions, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/18/2027 | 18.8 | 18.8 | 16.8 | 0.01 | % | |||||||||||||||
| Tony Herring & Associates, Inc | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 8/17/2027 | 7.5 | 7.5 | 6.5 | — | % | |||||||||||||||
| Chester's World Enterprise LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 8/16/2027 | 22.5 | 22.5 | 20.3 | 0.01 | % | |||||||||||||||
| D'Amato & Sons Construction, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 8/11/2027 | 8.3 | 8.3 | 7.5 | — | % | |||||||||||||||
| HTP LLC dba Hot Tomatoes Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/11/2027 | 11.3 | 11.3 | 10.5 | — | % | |||||||||||||||
| Roundhay Partners LLC and Roundhay Farming LLC | Crop Production | Term Loan | Prime plus 2.75% | 8/8/2042 | 912.5 | 912.5 | 830.5 | 0.32 | % | |||||||||||||||
| Splashlight LLC, Splashlight Photographic and Digital Studios, LLC | Management of Companies and Enterprises | Term Loan | Prime plus 2.75% | 8/7/2027 | 500.0 | 500.0 | 446.8 | 0.17 | % | |||||||||||||||
| L & J Corporate Services Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/4/2027 | 7.5 | 7.4 | 6.5 | — | % | |||||||||||||||
| Furniture Masters Limited Liability Company | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/3/2027 | 9.0 | 9.0 | 7.8 | — | % | |||||||||||||||
| HMG Strategy LLC, | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/2/2027 | 50.0 | 50.0 | 43.1 | 0.02 | % | |||||||||||||||
| Hope Health Care, LLC | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 7/31/2027 | 10.5 | 10.4 | 9.0 | — | % | |||||||||||||||
| Bowl Mor LLC dba Bowl Mor Lanes | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/31/2027 | 7.5 | 7.5 | 6.4 | — | % | |||||||||||||||
| Royal Blue Investments, Inc. and Cleland Pharmacy LLC | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 7/31/2042 | 53.0 | 52.9 | 54.7 | 0.02 | % | |||||||||||||||
| Raffi's Inc dba Atlantic Auto Center | Repair and Maintenance | Term Loan | Prime plus 2.75% | 7/31/2027 | 14.3 | 14.2 | 14.1 | 0.01 | % | |||||||||||||||
| Sharon G McMillen, MA Psychologist, Inc. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 7/28/2027 | 18.6 | 18.5 | 15.9 | 0.01 | % | |||||||||||||||
| Work of Heart Inc.dba Little Nest Portraits | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/28/2027 | 50.0 | 21.4 | 18.7 | 0.01 | % | |||||||||||||||
| HQTRONIC LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 7/27/2027 | 22.5 | 22.4 | 19.3 | 0.01 | % | |||||||||||||||
| Oberon IT, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/26/2027 | 218.7 | 217.5 | 198.7 | 0.08 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
10
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Gilles Peress Studio LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/25/2027 | 62.5 | 62.1 | 53.6 | 0.02 | % | |||||||||||||||
| Ocean Trans LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 7/21/2027 | 37.5 | 37.3 | 32.1 | 0.01 | % | |||||||||||||||
| Obok LLC | Food Manufacturing | Term Loan | Prime plus 2.75% | 7/21/2027 | 12.0 | 11.9 | 11.1 | — | % | |||||||||||||||
| Lil Tots' Learning Center LLC | Social Assistance | Term Loan | Prime plus 2.75% | 7/21/2042 | 47.5 | 47.4 | 47.2 | 0.02 | % | |||||||||||||||
| Nova Solutions, Inc. | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 7/19/2027 | 25.0 | 24.9 | 24.3 | 0.01 | % | |||||||||||||||
| Webb Eye Associates, PA | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 7/19/2027 | 73.8 | 73.3 | 69.5 | 0.03 | % | |||||||||||||||
| Matrix Z LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 3.75% | 7/19/2027 | 7.5 | 7.5 | 7.6 | — | % | |||||||||||||||
| Aitheras Aviation Group, LLC, Aitheras Aviation Group, LLC | Air Transportation | Term Loan | Prime plus 2.75% | 7/18/2027 | 825.0 | 819.9 | 711.5 | 0.28 | % | |||||||||||||||
| Wildflour Bakery & Cafe, LLC | Food Manufacturing | Term Loan | Prime plus 2.75% | 7/17/2027 | 22.5 | 22.4 | 22.7 | 0.01 | % | |||||||||||||||
| Florida Home and Kitchen LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/14/2027 | 12.0 | 11.9 | 10.3 | — | % | |||||||||||||||
| Koep Companies dba Pipestone True value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 7/14/2042 | 326.5 | 326.1 | 318.4 | 0.12 | % | |||||||||||||||
| Rocks Auto Exchange LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 7/13/2027 | 15.0 | 14.9 | 12.9 | 0.01 | % | |||||||||||||||
| McCord Holdings, Inc. dba Fast Signs 176101 | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/7/2027 | 18.7 | 18.6 | 16.4 | 0.01 | % | |||||||||||||||
| Thrifty Market Inc dba Thrifty Foods | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 7/6/2027 | 102.5 | 101.9 | 92.1 | 0.04 | % | |||||||||||||||
| New Chicago Wholesale Bakery Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 6/30/2027 | 15.0 | 14.8 | 14.2 | 0.01 | % | |||||||||||||||
| The Country House Restaurant, LLC and Pelton Real Estate, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2042 | 50.0 | 49.9 | 51.4 | 0.02 | % | |||||||||||||||
| Qycell Corporation | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 6/30/2027 | 76.3 | 75.4 | 76.6 | 0.03 | % | |||||||||||||||
| Bone Bar & Grill LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2042 | 73.5 | 73.4 | 75.0 | 0.03 | % | |||||||||||||||
| J. T. O'Neill Company, L.L.C | Real Estate | Term Loan | Prime plus 2.75% | 6/30/2027 | 15.0 | 14.8 | 12.8 | 0.01 | % | |||||||||||||||
| Hamilton & Associates Real Estate and Investments Firm LLC | Real Estate | Term Loan | Prime plus 2.75% | 6/30/2042 | 54.0 | 53.9 | 54.5 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
11
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| J&M Civil Construction Services LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/30/2027 | 100.0 | 98.8 | 85.1 | 0.03 | % | |||||||||||||||
| BQRS, Inc. DBA Gresham Meineke Car Care Center | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/30/2027 | 62.5 | 61.8 | 54.3 | 0.02 | % | |||||||||||||||
| JWH Designs, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/30/2027 | 106.3 | 105.0 | 90.4 | 0.04 | % | |||||||||||||||
| Safeguard Construction Company, Inc. | Construction of Buildings | Term Loan | Prime plus 2.75% | 6/30/2027 | 76.3 | 75.4 | 64.9 | 0.03 | % | |||||||||||||||
| Veola's Day Spa and Wellness Center Inc. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/30/2027 | 9.1 | 9.0 | 8.1 | — | % | |||||||||||||||
| Steigelbauer Associates Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/29/2027 | 309.0 | 305.4 | 310.4 | 0.12 | % | |||||||||||||||
| Best Bees Company | Animal Production and Aquaculture | Term Loan | Prime plus 2.75% | 6/29/2027 | 22.5 | 22.2 | 19.2 | 0.01 | % | |||||||||||||||
| Greensboro Plastic Surgical Associates, PA | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/29/2042 | 578.0 | 576.9 | 572.0 | 0.22 | % | |||||||||||||||
| Ocean Trans LLC and Dehal Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 6/29/2027 | 602.5 | 595.5 | 512.9 | 0.20 | % | |||||||||||||||
| HG Ventures, Inc. dba Diamond Head Trucking | Truck Transportation | Term Loan | Prime plus 2.75% | 6/29/2030 | 1,006.7 | 1,000.4 | 870.4 | 0.34 | % | |||||||||||||||
| Malhame & Company Publishers & Importers Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/29/2027 | 90.0 | 89.1 | 76.9 | 0.03 | % | |||||||||||||||
| Intellixion LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/29/2027 | 3.7 | 3.7 | 3.2 | — | % | |||||||||||||||
| Oakhill Farms, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/29/2030 | 100.0 | 99.2 | 101.0 | 0.04 | % | |||||||||||||||
| ElKareh Brothers Investment, LLC (OC) Best Choice Meats Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 6/29/2027 | 448.7 | 443.5 | 450.8 | 0.18 | % | |||||||||||||||
| Miguel Fernando Borda PA dba BGR Dental | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/29/2027 | 50.0 | 49.4 | 44.2 | 0.02 | % | |||||||||||||||
| Foxhop Fitness, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/28/2027 | 91.3 | 91.3 | 79.4 | 0.03 | % | |||||||||||||||
| Akal Express Inc. dba Truck Trailer Service Stop | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/28/2042 | 60.0 | 59.8 | 61.9 | 0.02 | % | |||||||||||||||
| Old Dominion Transportation Group, Inc. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 6/28/2027 | 1,133.9 | 1,121.1 | 987.3 | 0.39 | % | |||||||||||||||
| Citibin, Inc. | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 6/27/2027 | 125.0 | 123.5 | 106.4 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
12
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Auxiliary Systems Inc.,Sharrick Company, LLC & KMN, LLC | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 6/27/2030 | 245.3 | 243.3 | 241.9 | 0.09 | % | |||||||||||||||
| WB Cleaners Inc. DBA $2.75 Cleaners | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/27/2027 | 22.5 | 22.2 | 21.9 | 0.01 | % | |||||||||||||||
| Four Seasons Laser Center Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/26/2042 | 216.3 | 216.3 | 215.8 | 0.08 | % | |||||||||||||||
| Ains Holding Company, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/26/2027 | 1,175.0 | 1,161.7 | 1,023.7 | 0.40 | % | |||||||||||||||
| Rustic LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/23/2042 | 18.8 | 18.7 | 16.8 | 0.01 | % | |||||||||||||||
| Vella Construction Enterprises, Inc. dba Vella Construction | Construction of Buildings | Term Loan | Prime plus 2.75% | 6/23/2027 | 22.5 | 22.2 | 19.2 | 0.01 | % | |||||||||||||||
| Northern Industries, LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 6/23/2042 | 57.8 | 57.6 | 60.8 | 0.02 | % | |||||||||||||||
| Birches Group, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/22/2027 | 50.0 | 49.4 | 42.6 | 0.02 | % | |||||||||||||||
| Tarver-Henley Inc. and Tar-Hen LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/21/2042 | 320.0 | 319.2 | 316.6 | 0.12 | % | |||||||||||||||
| 704 Meat Center Inc. dba El Mercado and La Plaza Mercado | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/20/2042 | 175.0 | 174.5 | 180.4 | 0.07 | % | |||||||||||||||
| Sanabi Investment ,,LLC dba Oscar's Moving and Storage | Truck Transportation | Term Loan | Prime plus 2.75% | 6/20/2027 | 124.0 | 122.6 | 111.2 | 0.04 | % | |||||||||||||||
| Scarlet Spartan Inc.dba FastSigns of Brighton | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/19/2027 | 55.0 | 55.0 | 48.5 | 0.02 | % | |||||||||||||||
| Don G. Timpton DDS & Associates PA and Indsaad Properties,LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/16/2042 | 400.0 | 399.0 | 383.4 | 0.15 | % | |||||||||||||||
| JAM Media Solutions, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/15/2027 | 62.5 | 61.8 | 53.2 | 0.02 | % | |||||||||||||||
| All Regional Recyclers of Wood LLC dba ARROW,Superior Carting, LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 6/15/2042 | 314.0 | 313.3 | 309.2 | 0.12 | % | |||||||||||||||
| Tele Tax Express Inc., El Rancho Paiso, LLC and Nestor Romero | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/14/2042 | 92.5 | 92.3 | 94.9 | 0.04 | % | |||||||||||||||
| Susan Hughes dba Aloha Junction B and B | Accommodation | Term Loan | Prime plus 2.75% | 6/14/2042 | 62.5 | 61.9 | 65.3 | 0.03 | % | |||||||||||||||
| ESA 365 Corp and Lucathor Realty LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/14/2042 | 22.5 | 22.4 | 22.7 | 0.01 | % | |||||||||||||||
| Hull's Kitchen, LLC and HK Too, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/14/2042 | 96.3 | 96.2 | 100.8 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
13
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Yachting Solutions LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 6/12/2027 | 118.8 | 117.4 | 110.2 | 0.04 | % | |||||||||||||||
| Refoleen Inc dba Spice and Tea Exchange | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/8/2027 | 3.5 | 3.5 | 3.0 | — | % | |||||||||||||||
| Earth First Recycling, LLC and 191 Clark Road, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/5/2027 | 354.5 | 352.3 | 351.6 | 0.14 | % | |||||||||||||||
| Skydive California, LLC | Educational Services | Term Loan | Prime plus 2.75% | 6/2/2027 | 55.0 | 54.5 | 55.4 | 0.02 | % | |||||||||||||||
| SCW, LLC dba Arthur Murray Dance Studio | Educational Services | Term Loan | Prime plus 2.75% | 6/2/2042 | 146.0 | 145.6 | 145.6 | 0.06 | % | |||||||||||||||
| Speaker City, Inc.and Speaker Town, LLC dba Rollin Thunder | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 6/1/2042 | 45.6 | 45.5 | 46.3 | 0.02 | % | |||||||||||||||
| Sage Oil LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 5/31/2027 | 22.5 | 22.1 | 19.0 | 0.01 | % | |||||||||||||||
| Impact Grounds Maintenance and Design, Inc.dba Impact Landscaping | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/31/2042 | 79.4 | 79.2 | 82.1 | 0.03 | % | |||||||||||||||
| Ricnet III, Inc. dba Edible Arrangements | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 5/31/2027 | 15.0 | 14.6 | 12.8 | 0.01 | % | |||||||||||||||
| Funtime, LLC and Universal Entertainment Group LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 5/31/2027 | 66.2 | 65.1 | 57.0 | 0.02 | % | |||||||||||||||
| Haroon Baig,Inc.dba US1 Petrol | Gasoline Stations | Term Loan | Prime plus 2.75% | 5/31/2042 | 264.0 | 263.0 | 277.5 | 0.11 | % | |||||||||||||||
| Eagle Wood Works LLC | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 5/26/2027 | 12.0 | 11.8 | 10.8 | — | % | |||||||||||||||
| Hurricane Group, Inc. | Other Information Services | Term Loan | Prime plus 2.75% | 5/26/2027 | 75.0 | 73.7 | 63.5 | 0.02 | % | |||||||||||||||
| Mitchell Auto Repair, LLC and and C&M Mitchell, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/26/2042 | 193.2 | 193.0 | 197.3 | 0.08 | % | |||||||||||||||
| Swantown Inn & Spa LLC | Accommodation | Term Loan | Prime plus 2.75% | 5/26/2042 | 116.0 | 28.4 | 30.0 | 0.01 | % | |||||||||||||||
| Chet Lemon Enterprises LLC dba All American Sports | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/26/2042 | 792.5 | 789.4 | 833.0 | 0.33 | % | |||||||||||||||
| Demand Printing Solutions Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/25/2027 | 213.3 | 209.5 | 197.3 | 0.08 | % | |||||||||||||||
| Beyond Waves A Unique Salon LLC and Lori Ann Carlson | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/25/2027 | 15.0 | 14.7 | 12.8 | 0.01 | % | |||||||||||||||
| Jung Design Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/25/2027 | 9.0 | 8.8 | 7.6 | — | % | |||||||||||||||
| Locavore LLC dba Paloma Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/25/2027 | 50.0 | 49.1 | 43.9 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
14
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Abdul Naushad MD PC dba Advanced Pain Centers | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/25/2042 | 393.8 | 392.2 | 403.0 | 0.16 | % | |||||||||||||||
| Shaffer Automotive Repair, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/24/2030 | 135.8 | 134.1 | 125.5 | 0.05 | % | |||||||||||||||
| Juliador Resources LLC DBA Cue Hair Salon and Skin Care | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/24/2027 | 22.5 | 22.1 | 19.0 | 0.01 | % | |||||||||||||||
| Innovim, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/24/2027 | 337.5 | 331.5 | 285.5 | 0.11 | % | |||||||||||||||
| Southeast Recycling, LLC and Southeast Land Holdings LLC dba 67 Motor | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 5/23/2042 | 181.4 | 180.7 | 188.8 | 0.07 | % | |||||||||||||||
| Gill Express Inc. and Gill Express 2 LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/23/2042 | 338.7 | 337.4 | 333.6 | 0.13 | % | |||||||||||||||
| Prestige Construction of Florida, LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 5/23/2042 | 336.4 | 335.1 | 326.1 | 0.13 | % | |||||||||||||||
| Enfield Tractor & Equipment Co. | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/19/2027 | 296.3 | 291.2 | 278.7 | 0.11 | % | |||||||||||||||
| PS Camping, Inc. dba Prospectors RV Resort | Accommodation | Term Loan | Prime plus 2.75% | 5/19/2042 | 257.7 | 256.7 | 269.3 | 0.11 | % | |||||||||||||||
| GEM2K, LLC dba Precision Precast Group | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 5/19/2027 | 162.5 | 159.6 | 143.2 | 0.06 | % | |||||||||||||||
| Hayden Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 5/19/2027 | 262.5 | 257.9 | 237.8 | 0.09 | % | |||||||||||||||
| Tres K Deli,Grocery,Fruit and Meat Inc. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 5/19/2027 | 8.3 | 8.1 | 7.5 | — | % | |||||||||||||||
| Iron Men Home Repair, Inc. and Ironmen House Lifting Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 5/19/2042 | 582.5 | 580.2 | 585.6 | 0.23 | % | |||||||||||||||
| J Harris Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 5/19/2027 | 19.5 | 19.2 | 18.2 | 0.01 | % | |||||||||||||||
| New Image Building Services, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/18/2027 | 150.8 | 148.1 | 132.4 | 0.05 | % | |||||||||||||||
| Bay Car Wash LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/18/2042 | 120.7 | 120.3 | 121.7 | 0.05 | % | |||||||||||||||
| Mr. B's Bicycles & Mopeds, Inc. | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 5/18/2042 | 146.7 | 146.2 | 146.7 | 0.06 | % | |||||||||||||||
| Waterford Plumbing Co, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 5/18/2027 | 50.0 | 49.1 | 43.1 | 0.02 | % | |||||||||||||||
| Computech Computers Inc. | Educational Services | Term Loan | Prime plus 2.75% | 5/17/2027 | 50.0 | 49.1 | 42.3 | 0.02 | % | |||||||||||||||
| Arco Electrical Contractors Inc. dba Arco Construction Group | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 5/16/2027 | 360.0 | 353.6 | 325.1 | 0.13 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
15
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| 5 Stars Learning Center Inc | Social Assistance | Term Loan | Prime plus 2.75% | 5/16/2042 | 61.8 | 61.5 | 61.9 | 0.02 | % | |||||||||||||||
| Batter & Company,LLC dba Batter Co. Dessert Collection | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 5/16/2027 | 53.8 | 52.8 | 46.5 | 0.02 | % | |||||||||||||||
| Band Sawn Lumber,LLC and Nathan Ryan Adams | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 5/15/2042 | 113.8 | 113.3 | 111.6 | 0.04 | % | |||||||||||||||
| Keys Armored Express, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/12/2027 | 40.0 | 39.3 | 35.3 | 0.01 | % | |||||||||||||||
| Sanderson Distribution Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 5/12/2027 | 10.5 | 10.3 | 8.9 | — | % | |||||||||||||||
| SG Linke LLC | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 5/12/2027 | 108.3 | 108.3 | 106.3 | 0.04 | % | |||||||||||||||
| B G F Bobby Q's Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/11/2027 | 7.5 | 7.4 | 7.2 | — | % | |||||||||||||||
| Estelle Finkel Educational Associates,LLC | Educational Services | Term Loan | Prime plus 2.75% | 5/11/2027 | 118.7 | 117.8 | 101.5 | 0.04 | % | |||||||||||||||
| Labmates,LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 5/10/2027 | 100.0 | 98.2 | 93.9 | 0.04 | % | |||||||||||||||
| NHS, LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/9/2027 | 88.5 | 86.9 | 78.2 | 0.03 | % | |||||||||||||||
| NHS, LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/9/2042 | 21.9 | 21.8 | 20.5 | 0.01 | % | |||||||||||||||
| Innovation Transport, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 5/9/2027 | 86.3 | 84.7 | 80.0 | 0.03 | % | |||||||||||||||
| 1872 Rosecrans, LLC dba Goodbar | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/9/2027 | 62.5 | 62.2 | 54.0 | 0.02 | % | |||||||||||||||
| Arclay ,LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 5/5/2030 | 145.9 | 144.1 | 132.8 | 0.05 | % | |||||||||||||||
| Benchmark Building, Inc. | Construction of Buildings | Term Loan | Prime plus 2.75% | 5/5/2027 | 22.5 | 22.1 | 19.0 | 0.01 | % | |||||||||||||||
| Cable Management LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 5/3/2027 | 59.6 | 58.5 | 54.9 | 0.02 | % | |||||||||||||||
| Fine Arts Center of Easley, Inc. dba Midtown Music | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 5/2/2042 | 116.3 | 116.1 | 122.5 | 0.05 | % | |||||||||||||||
| Zahmel Restaurant Suppliers Corp dba Cash & Carry | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 4/28/2027 | 88.8 | 86.6 | 75.6 | 0.03 | % | |||||||||||||||
| Love and Glory Learning Center, Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 4/28/2042 | 78.0 | 77.6 | 77.1 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
16
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Georgia Productions Services LLC | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 4/28/2027 | 91.2 | 89.1 | 81.8 | 0.03 | % | |||||||||||||||
| JMA Inc. dba Primecut and Mezzo; Primecut at Marquee | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/27/2042 | 222.5 | 221.3 | 233.6 | 0.09 | % | |||||||||||||||
| Sneads Ferry Foods, Inc. dba DQ Grill & Chill | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/27/2042 | 618.3 | 330.0 | 348.2 | 0.14 | % | |||||||||||||||
| Asheville's Fun Depot, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/26/2027 | 87.5 | 85.4 | 86.8 | 0.03 | % | |||||||||||||||
| Carl Joseph Johnston dba Viking Transport | Truck Transportation | Term Loan | Prime plus 2.75% | 4/26/2027 | 53.3 | 31.8 | 30.1 | 0.01 | % | |||||||||||||||
| Resident Research, LLC | Other Information Services | Term Loan | Prime plus 2.75% | 4/24/2027 | 100.0 | 97.6 | 84.1 | 0.03 | % | |||||||||||||||
| Getting Even LLC dba The Zoo Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/21/2027 | 7.5 | 7.3 | 6.6 | — | % | |||||||||||||||
| Ralph's Hair Salon, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/21/2042 | 50.0 | 49.7 | 50.6 | 0.02 | % | |||||||||||||||
| M.E. Interiors LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/20/2027 | 139.2 | 135.9 | 117.0 | 0.05 | % | |||||||||||||||
| MJ and M Home Improvements LLC DBA House Doctors | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/20/2027 | 20.5 | 20.0 | 17.6 | 0.01 | % | |||||||||||||||
| Condron Brothers LLC DBA Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/19/2027 | 116.0 | 116.0 | 105.0 | 0.04 | % | |||||||||||||||
| Affordable Auto Transport LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 4/17/2027 | 12.8 | 12.4 | 11.6 | — | % | |||||||||||||||
| Carpeteria (Markarian) Co. | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 4/13/2027 | 132.8 | 129.7 | 128.6 | 0.05 | % | |||||||||||||||
| Bloomer Machine & Fab, Inc and Dale Stertz Properties | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 4/13/2042 | 205.5 | 204.4 | 210.6 | 0.08 | % | |||||||||||||||
| Butternuts Beer and Ale LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 4/12/2027 | 73.7 | 72.0 | 73.2 | 0.03 | % | |||||||||||||||
| Citizens Lanes, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/31/2042 | 619.4 | 616.1 | 648.1 | 0.25 | % | |||||||||||||||
| The Altitude Group, LLC and Core Home Security, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/31/2027 | 50.0 | 48.6 | 41.4 | 0.02 | % | |||||||||||||||
| Golden Hen Inc. dba Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2027 | 64.8 | 62.9 | 54.4 | 0.02 | % | |||||||||||||||
| Shelter Harbor Inn, Inc. | Accommodation | Term Loan | Prime plus 2.75% | 3/31/2042 | 207.5 | 206.4 | 217.1 | 0.08 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
17
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Landmark Ventures USA, Inc. | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 3/31/2027 | 187.5 | 182.1 | 155.4 | 0.06 | % | |||||||||||||||
| MIT LLC | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 3/31/2042 | 87.5 | 87.0 | 91.6 | 0.04 | % | |||||||||||||||
| Applied Integrated Technologies, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/31/2027 | 125.0 | 121.4 | 103.7 | 0.04 | % | |||||||||||||||
| Bear Trail Lodge LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/31/2042 | 552.5 | 549.6 | 571.2 | 0.22 | % | |||||||||||||||
| KWG Industries LLC dba Peterson & Marsh Metal Industries | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 3/30/2027 | 30.0 | 29.1 | 28.4 | 0.01 | % | |||||||||||||||
| Sea Smoke Barbeque, Corp and Danwen LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/30/2042 | 236.5 | 233.6 | 235.0 | 0.09 | % | |||||||||||||||
| Signature Rooms, Inc dba Gallery Furniture | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 3/30/2042 | 495.8 | 493.1 | 514.8 | 0.20 | % | |||||||||||||||
| Schafer Fisheries Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/30/2042 | 258.6 | 251.5 | 257.2 | 0.10 | % | |||||||||||||||
| Douglas K. Soderblom . dba Loma Linda Optometry | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/29/2027 | 100.0 | 97.1 | 87.3 | 0.03 | % | |||||||||||||||
| Discount Price, LLC dba Robert's Market | Gasoline Stations | Term Loan | Prime plus 2.75% | 3/29/2042 | 206.3 | 205.2 | 208.2 | 0.08 | % | |||||||||||||||
| First Sail Group Inc. and Omen Board Industires LLC | Nonstore Retailers | Term Loan | Prime plus 2.75% | 3/29/2027 | 20.0 | 19.4 | 17.8 | 0.01 | % | |||||||||||||||
| Gauri Hospitality Group LLC dba Microtel Inns & Suites by Wyndham | Accommodation | Term Loan | Prime plus 2.75% | 3/29/2042 | 1,056.3 | 1,050.6 | 1,096.2 | 0.43 | % | |||||||||||||||
| H and H Hotshot Services, Inc. dba AA Hotshot & Logistics | Couriers and Messengers | Term Loan | Prime plus 2.75% | 3/29/2030 | 97.5 | 95.6 | 82.5 | 0.03 | % | |||||||||||||||
| New England Country Day School, Inc. and Thomas D. Walker | Social Assistance | Term Loan | Prime plus 2.75% | 3/28/2042 | 362.8 | 362.6 | 364.1 | 0.14 | % | |||||||||||||||
| American Pharmaceutical Innovation Company, LLC | Chemical Manufacturing | Term Loan | Prime plus 2.75% | 3/28/2027 | 30.0 | 29.1 | 25.0 | 0.01 | % | |||||||||||||||
| Heil & Hornik LLC dba Elysium Tennis | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/27/2042 | 928.6 | 923.6 | 921.1 | 0.36 | % | |||||||||||||||
| Pecos Entertainment LLC dba State Theater and Pecos Inn LLC | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 3/27/2042 | 582.9 | 137.2 | 144.3 | 0.06 | % | |||||||||||||||
| Ericon Inc. dba Quik Pik | Gasoline Stations | Term Loan | Prime plus 2.75% | 3/24/2027 | 62.5 | 60.7 | 58.3 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
18
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Robert Dixon PA dba Law Offices of Robert Dixon | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/24/2042 | 435.5 | 424.2 | 443.0 | 0.17 | % | |||||||||||||||
| Denton Bio Fuels LLC and American Bio Source LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 3/23/2027 | 59.3 | 57.5 | 52.3 | 0.02 | % | |||||||||||||||
| Color Graphic Press, Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 3/23/2027 | 120.0 | 116.5 | 118.0 | 0.05 | % | |||||||||||||||
| JBK Truck Trailer and Bus Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/23/2042 | 88.8 | 78.8 | 79.5 | 0.03 | % | |||||||||||||||
| Executive Fitness & Nutrition Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/23/2027 | 20.3 | 19.7 | 19.2 | 0.01 | % | |||||||||||||||
| Baton Rouge Cargo Services Inc. and 6507 Westport, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 3/22/2042 | 643.0 | 639.6 | 656.4 | 0.26 | % | |||||||||||||||
| Vehicle Safety supply LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/21/2027 | 22.5 | 21.8 | 18.7 | 0.01 | % | |||||||||||||||
| J Sivilis LLC dba Pet Wants | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/17/2027 | 12.3 | 12.0 | 10.5 | — | % | |||||||||||||||
| Reservoir International LLC | Educational Services | Term Loan | Prime plus 2.75% | 3/16/2027 | 100.0 | 97.1 | 89.8 | 0.04 | % | |||||||||||||||
| The Purple Cow House of Pancake Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/16/2042 | 162.5 | 160.9 | 169.2 | 0.07 | % | |||||||||||||||
| Texcor, Inc.dba Texas Corral,Texas Coral Restaurants II, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/16/2027 | 300.0 | 291.4 | 295.2 | 0.12 | % | |||||||||||||||
| Alive Design, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/13/2027 | 22.5 | 22.0 | 18.8 | 0.01 | % | |||||||||||||||
| 1MTX LLC and Sunrise Transportation and Logistics, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 3/13/2027 | 702.8 | 683.0 | 583.0 | 0.23 | % | |||||||||||||||
| Dwayne Bernard Tate | Truck Transportation | Term Loan | Prime plus 2.75% | 3/10/2027 | 10.5 | 10.2 | 9.3 | — | % | |||||||||||||||
| Elegant Occasions, LLC dba E Productions | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/10/2042 | 588.2 | 586.1 | 587.5 | 0.23 | % | |||||||||||||||
| Anthony LLC dba Star of Woodward Market | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/9/2042 | 115.0 | 114.5 | 120.4 | 0.05 | % | |||||||||||||||
| E & P Holdings 1 LLC and Evans & Paul Unlimited Corp. | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 3/9/2027 | 125.0 | 121.4 | 106.1 | 0.04 | % | |||||||||||||||
| Allegro Assisted Living Of Texas | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 3/6/2027 | 96.0 | 93.2 | 94.4 | 0.04 | % | |||||||||||||||
| Robbie E. Bakery and Cafe LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/3/2027 | 62.5 | 60.7 | 51.8 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
19
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Podium Auto Sales Inc and RRS Property, LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/3/2042 | 90.7 | 90.3 | 89.8 | 0.04 | % | |||||||||||||||
| SSI Refrigerated Express Inc. and Robert M Stallone dba SSI Express | Truck Transportation | Term Loan | Prime plus 2.75% | 2/28/2027 | 235.5 | 227.3 | 194.1 | 0.08 | % | |||||||||||||||
| Weeping Willow Kennels, Inc and Aileen N Black | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/28/2042 | 140.0 | 139.1 | 141.5 | 0.06 | % | |||||||||||||||
| Getting Even LLC dba The Zoo Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2027 | 96.3 | 92.9 | 82.7 | 0.03 | % | |||||||||||||||
| Total Document Solutions Inc and,TDS Services, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 2/27/2030 | 312.5 | 305.1 | 279.9 | 0.11 | % | |||||||||||||||
| Teracore Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/27/2027 | 163.7 | 158.0 | 134.9 | 0.05 | % | |||||||||||||||
| John Finn Associates LLC, Greenslate LLC, Finn Technology, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/27/2027 | 675.0 | 651.3 | 623.5 | 0.24 | % | |||||||||||||||
| McNally Enterprises Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 2/27/2027 | 65.0 | 62.7 | 55.8 | 0.02 | % | |||||||||||||||
| B & J Bicycle Shop Inc. | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 2/24/2027 | 15.0 | 14.5 | 14.7 | 0.01 | % | |||||||||||||||
| 3W Enterprises LLC | Textile Product Mills | Term Loan | Prime plus 2.75% | 2/24/2042 | 81.8 | 81.2 | 81.5 | 0.03 | % | |||||||||||||||
| TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/24/2027 | 106.3 | 103.7 | 96.4 | 0.04 | % | |||||||||||||||
| Victorian Restaurant and Tavern, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/22/2042 | 107.5 | 106.8 | 104.7 | 0.04 | % | |||||||||||||||
| DER Services, LLC dba A.K.A. Sports | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 2/17/2042 | 40.0 | 39.8 | 41.8 | 0.02 | % | |||||||||||||||
| Bike Slug, LLC, Bike Slug Holdings Inc. and Seven Rivers Group ,LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 2/17/2027 | 19.5 | 18.8 | 16.1 | 0.01 | % | |||||||||||||||
| Ameritube, LLC and Ravone Properties, LLC | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 2/14/2042 | 185.0 | 183.8 | 193.4 | 0.08 | % | |||||||||||||||
| R&S Barnes Enterprises, Inc. dba Massage Envy Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/10/2027 | 93.8 | 90.5 | 78.2 | 0.03 | % | |||||||||||||||
| Baton Rouge Cargo Services Inc. and 2808 Court Street, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 2/10/2042 | 247.5 | 245.8 | 252.3 | 0.10 | % | |||||||||||||||
| Sushiya Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/10/2027 | 18.8 | 18.1 | 16.0 | 0.01 | % | |||||||||||||||
| Select Propane & Fuel Inc. and Select Fuel & Convenience LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 2/10/2030 | 1,250.0 | 1,222.6 | 1,121.1 | 0.44 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
20
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Maximo Canot dba Wash and Dry Laundrymat | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/10/2042 | 137.5 | 136.7 | 140.7 | 0.06 | % | |||||||||||||||
| Marvic Enterprises Inc dba Jordan's Liquor | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/10/2042 | 219.0 | 217.6 | 221.8 | 0.09 | % | |||||||||||||||
| Harrison Logging Company LLC | Forestry and Logging | Term Loan | Prime plus 2.75% | 2/9/2027 | 106.3 | 102.5 | 92.6 | 0.04 | % | |||||||||||||||
| 8 Minute Oil Change Auto Repair & Tire Center and Jumir L.L.C. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 2/7/2042 | 327.5 | 325.5 | 319.9 | 0.13 | % | |||||||||||||||
| Christopher Borgia | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/6/2027 | 12.9 | 12.5 | 10.8 | — | % | |||||||||||||||
| Splashlight LLC, Splashlight Photographic & Digital Studios LLC | Management of Companies and Enterprises | Term Loan | Prime plus 2.75% | 2/2/2027 | 750.0 | 723.8 | 641.9 | 0.25 | % | |||||||||||||||
| DBMS Consulting, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/1/2042 | 185.0 | 183.8 | 180.6 | 0.07 | % | |||||||||||||||
| Brandco, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 1/31/2027 | 43.7 | 41.9 | 35.8 | 0.01 | % | |||||||||||||||
| Chidlren's House Learning, Inc and Tarps Investment Group | Social Assistance | Term Loan | Prime plus 2.75% | 1/31/2042 | 321.3 | 319.1 | 319.5 | 0.12 | % | |||||||||||||||
| Grand Center Inn L.P. dba Grand Center Inn | Accommodation | Term Loan | Prime plus 2.75% | 1/31/2027 | 15.0 | 14.4 | 14.6 | 0.01 | % | |||||||||||||||
| AP6 LLC and Amishp LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/30/2042 | 127.5 | 107.8 | 113.4 | 0.04 | % | |||||||||||||||
| Fave Realty, Inc. | Real Estate | Term Loan | Prime plus 2.75% | 1/30/2042 | 54.5 | 54.1 | 54.8 | 0.02 | % | |||||||||||||||
| ZMKNY Tires Inc dba Houston International Tires | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 1/27/2042 | 107.5 | 106.8 | 112.3 | 0.04 | % | |||||||||||||||
| House of Bread & Coffee Corp dba Casa Do Pao | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/27/2042 | 176.0 | 135.7 | 131.9 | 0.05 | % | |||||||||||||||
| SRC Publishing LLC | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 1/27/2027 | 22.5 | 21.6 | 18.4 | 0.01 | % | |||||||||||||||
| Return to Excellence Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 1/27/2027 | 17.7 | 17.0 | 17.2 | 0.01 | % | |||||||||||||||
| Sideways Sports Lounge and Jonathan E. McGrew and Patricia C. McGrew | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/23/2027 | 18.0 | 17.3 | 14.7 | 0.01 | % | |||||||||||||||
| Fox Valley Rentals & Investments LLC and Brian M Tomaszewski | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/20/2042 | 42.5 | 42.2 | 42.0 | 0.02 | % | |||||||||||||||
| Rhone Wolf Vineyard LLC, Goldline Brands Inc. and Myka Cellars, Inc. | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 1/19/2030 | 250.4 | 243.4 | 224.5 | 0.09 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
21
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Jolibe LLC and Jolibe Atelier LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 1/18/2027 | 10.5 | 10.1 | 8.9 | — | % | |||||||||||||||
| Eickmann Management Group LLC dba Jimmy Johns of Dundee | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/17/2027 | 93.7 | 93.0 | 91.3 | 0.04 | % | |||||||||||||||
| Ramjay Inc. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 1/13/2027 | 435.0 | 420.4 | 381.1 | 0.15 | % | |||||||||||||||
| Fullbro Trust dba Menemsha Blues | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 1/13/2027 | 22.5 | 21.6 | 21.9 | 0.01 | % | |||||||||||||||
| Echelon Enterprises, Inc | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 1/10/2027 | 50.0 | 48.0 | 48.6 | 0.02 | % | |||||||||||||||
| Fort Smith Wings Inc. dba Wing Stop | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/28/2026 | 19.5 | 18.6 | 16.6 | 0.01 | % | |||||||||||||||
| Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/27/2041 | 419.9 | 417.1 | 412.2 | 0.16 | % | |||||||||||||||
| Joshua L. Baker | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 12/23/2026 | 15.7 | 15.0 | 12.8 | 0.01 | % | |||||||||||||||
| Jacliff Investments Inc. dba International health Technologies | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 12/23/2026 | 125.0 | 119.1 | 101.6 | 0.04 | % | |||||||||||||||
| New Image Building Services, Inc.dba The Maids Servicing Oakland | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/21/2026 | 43.8 | 41.7 | 37.0 | 0.01 | % | |||||||||||||||
| Chestnut Street Associates, LLC and Metropolitan Solutions, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/19/2041 | 275.0 | 272.3 | 261.6 | 0.10 | % | |||||||||||||||
| Means Enterprises LLC dba FastFrame Frisco | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 12/16/2026 | 22.5 | 21.4 | 18.6 | 0.01 | % | |||||||||||||||
| Soon Im. Chin dba Stan C-Store | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/15/2041 | 212.5 | 210.4 | 217.6 | 0.09 | % | |||||||||||||||
| Sempco, Inc. | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 42.0 | 41.6 | 43.7 | 0.02 | % | |||||||||||||||
| Allied Welding Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 750.0 | 744.7 | 731.9 | 0.29 | % | |||||||||||||||
| Ericon, Inc. dba Quik Pik | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/15/2041 | 332.2 | 329.5 | 328.3 | 0.13 | % | |||||||||||||||
| White Hawk Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 12/15/2026 | 1,097.7 | 1,047.7 | 893.6 | 0.35 | % | |||||||||||||||
| Elita 7, LLC | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 12/15/2041 | 712.5 | 705.5 | 718.9 | 0.28 | % | |||||||||||||||
| New Chicago Wholesale Bakery, Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 452.7 | 448.3 | 442.6 | 0.17 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
22
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Techni-Pro Institute LLC | Educational Services | Term Loan | Prime plus 2.75% | 12/15/2026 | 190.0 | 181.0 | 159.2 | 0.06 | % | |||||||||||||||
| Trison Enterprises Inc.dba Lee's Automotive | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/14/2041 | 407.5 | 403.5 | 407.7 | 0.16 | % | |||||||||||||||
| Cardinal Homes Inc. and Bret A Berneche | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 12/14/2041 | 121.3 | 120.0 | 125.9 | 0.05 | % | |||||||||||||||
| HMG Strategy, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/14/2026 | 50.0 | 47.6 | 40.6 | 0.02 | % | |||||||||||||||
| D and E Hardware Co. and D and E Pump Sales and Service | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 12/14/2041 | 528.6 | 523.4 | 520.2 | 0.20 | % | |||||||||||||||
| Cardinal Homes Inc,.Alouette Holdings Inc. | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 12/14/2026 | 1,071.3 | 1,020.5 | 1,032.9 | 0.40 | % | |||||||||||||||
| AGG Management Team LLC dba Chevron | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/14/2041 | 287.5 | 284.7 | 299.3 | 0.12 | % | |||||||||||||||
| Wayfarer Bicycle LLC | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 12/13/2041 | 92.5 | 91.6 | 89.1 | 0.03 | % | |||||||||||||||
| Success Advertising Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/13/2041 | 466.5 | 461.9 | 478.5 | 0.19 | % | |||||||||||||||
| Roast Beef Levittown LLC dba Arby's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/13/2026 | 465.0 | 447.7 | 453.1 | 0.18 | % | |||||||||||||||
| Queen Express LLC | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/13/2041 | 187.5 | 185.6 | 192.5 | 0.08 | % | |||||||||||||||
| Recycling Revolution,LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/9/2041 | 92.2 | 91.3 | 90.7 | 0.04 | % | |||||||||||||||
| Myndshft Technologies LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/9/2026 | 775.0 | 738.3 | 657.7 | 0.26 | % | |||||||||||||||
| Mack Team Enterprises Inc.dba The UPS Store #6815 | Couriers and Messengers | Term Loan | Prime plus 2.75% | 12/9/2026 | 20.4 | 19.4 | 17.4 | 0.01 | % | |||||||||||||||
| ^New Life Hospital LLC | Hospitals | Term Loan | Prime plus 2.75% | 12/8/2041 | 1,195.5 | 1,184.9 | 1,245.8 | 0.49 | % | |||||||||||||||
| Imagine By Carleen Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/8/2041 | 52.5 | 52.0 | 52.1 | 0.02 | % | |||||||||||||||
| Hanson's Greeks LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/8/2026 | 11.3 | 10.7 | 10.8 | — | % | |||||||||||||||
| Yachting Solutions LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 12/7/2029 | 71.2 | 68.9 | 65.1 | 0.03 | % | |||||||||||||||
| T and B Boots Inc dba Takken's Shoes | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 12/7/2026 | 100.0 | 95.7 | 89.5 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
23
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Lan Doctors, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/7/2026 | 237.5 | 226.2 | 222.1 | 0.09 | % | |||||||||||||||
| Lilo Holdings LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/5/2026 | 15.9 | 15.1 | 13.7 | 0.01 | % | |||||||||||||||
| ^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites | Accommodation | Term Loan | Prime plus 2.75% | 12/5/2041 | 352.5 | 349.6 | 360.6 | 0.14 | % | |||||||||||||||
| ^Ericon, Inc. | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/1/2041 | 726.0 | 720.2 | 721.4 | 0.28 | % | |||||||||||||||
| Noso Development LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 12/1/2026 | 75.0 | 71.4 | 60.9 | 0.02 | % | |||||||||||||||
| ^Quick Ship, LLC | Couriers and Messengers | Term Loan | Prime plus 2.75% | 11/30/2026 | 10.5 | 9.9 | 8.5 | — | % | |||||||||||||||
| ^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 11/30/2041 | 67.5 | 66.7 | 70.2 | 0.03 | % | |||||||||||||||
| Sharaz Shah DBA Thomas Jewelers | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 11/30/2026 | 8.1 | 7.7 | 6.5 | — | % | |||||||||||||||
| Choe Trading Group, Inc.dba Rapid Printers of Monterey | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/30/2026 | 22.5 | 21.3 | 20.9 | 0.01 | % | |||||||||||||||
| Studio Find It Georgia, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/30/2026 | 7.5 | 7.1 | 6.2 | — | % | |||||||||||||||
| RD Management, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2026 | 213.8 | 202.3 | 174.8 | 0.07 | % | |||||||||||||||
| Imaginarium Foods LLC, | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2042 | 376.7 | 370.5 | 376.2 | 0.15 | % | |||||||||||||||
| B4 Fitness LLC dba The Zoo Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/30/2026 | 22.5 | 21.3 | 19.0 | 0.01 | % | |||||||||||||||
| ^Usman Jalil, LLC dba Food Mart | Gasoline Stations | Term Loan | Prime plus 2.75% | 11/29/2041 | 233.2 | 230.7 | 223.6 | 0.09 | % | |||||||||||||||
| Honor Mansion, Inc. | Accommodation | Term Loan | Prime plus 2.75% | 11/29/2026 | 87.5 | 82.8 | 83.8 | 0.03 | % | |||||||||||||||
| Access Staffing, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/29/2026 | 1,125.0 | 1,064.6 | 908.0 | 0.36 | % | |||||||||||||||
| Merchant Coterie, Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 11/23/2026 | 125.0 | 118.3 | 100.9 | 0.04 | % | |||||||||||||||
| CRK Mens, LLC dba Spiff for Men | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/23/2026 | 106.3 | 100.7 | 87.8 | 0.03 | % | |||||||||||||||
| WPN Recycling Company LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 11/23/2026 | 22.5 | 21.3 | 21.5 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
24
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901 | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/23/2026 | 60.0 | 56.8 | 49.1 | 0.02 | % | |||||||||||||||
| Rognes Corp dba RTS | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 11/22/2026 | 389.2 | 366.9 | 335.5 | 0.13 | % | |||||||||||||||
| Bouquet Restaurant LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/22/2041 | 125.0 | 123.6 | 124.6 | 0.05 | % | |||||||||||||||
| ^J.B.K Truck Trailer and Bus Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/22/2041 | 435.0 | 430.1 | 428.7 | 0.17 | % | |||||||||||||||
| 6E Technologies LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/22/2026 | 175.0 | 163.8 | 150.9 | 0.06 | % | |||||||||||||||
| Broms Asset Management LLC | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 11/22/2026 | 125.0 | 118.3 | 100.9 | 0.04 | % | |||||||||||||||
| Skaggs RV Outlet LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 11/21/2026 | 100.0 | 94.6 | 95.8 | 0.04 | % | |||||||||||||||
| Catherine Christine Morin dba Purr-Fect Pets | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/17/2026 | 18.7 | 17.7 | 15.1 | 0.01 | % | |||||||||||||||
| Stratmar Systems Inc dba Stratmar Retail Services | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/16/2026 | 68.5 | 64.8 | 65.6 | 0.03 | % | |||||||||||||||
| Hoosier Health Plus, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/15/2026 | 125.0 | 118.3 | 111.4 | 0.04 | % | |||||||||||||||
| ^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/10/2041 | 446.0 | 440.9 | 451.4 | 0.18 | % | |||||||||||||||
| Hackensack Steel Corporation and Luzerne Ironworks Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/10/2026 | 239.2 | 226.3 | 228.9 | 0.09 | % | |||||||||||||||
| ^Panther Ironworks and Rigging Solutions LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/10/2026 | 151.3 | 143.1 | 131.2 | 0.05 | % | |||||||||||||||
| ^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/10/2026 | 188.7 | 178.6 | 176.9 | 0.07 | % | |||||||||||||||
| MIK LLC dba Firehouse Subs | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/9/2026 | 200.0 | 192.9 | 166.8 | 0.07 | % | |||||||||||||||
| ^Rich's Food Stores LLC dba Hwy 55 of Wallace | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/9/2026 | 43.7 | 41.4 | 38.6 | 0.02 | % | |||||||||||||||
| ^Dyer Properties, LLC | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 11/9/2041 | 240.3 | 237.5 | 234.5 | 0.09 | % | |||||||||||||||
| ^Big Apple Entertainment Partners LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/9/2026 | 175.0 | 165.6 | 141.2 | 0.06 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
25
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Bovill Creative,LLC | Real Estate | Term Loan | Prime plus 2.75% | 11/9/2041 | 281.2 | 278.2 | 292.5 | 0.11 | % | |||||||||||||||
| Surgarloaf Concepts LLC dba Fat Biscuit | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/8/2026 | 168.8 | 165.0 | 167.0 | 0.07 | % | |||||||||||||||
| ^Fine Line Interiors, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/4/2041 | 87.5 | 82.4 | 86.7 | 0.03 | % | |||||||||||||||
| 131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/3/2041 | 127.5 | 125.1 | 127.8 | 0.05 | % | |||||||||||||||
| ^Veracruz Shabo, LLC; Waterfalls Quick Lube LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/1/2041 | 118.7 | 117.9 | 120.3 | 0.05 | % | |||||||||||||||
| Glocecol LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/1/2026 | 75.0 | 70.9 | 71.8 | 0.03 | % | |||||||||||||||
| Middlesex Auto Sales Corp | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 10/31/2041 | 125.0 | 123.5 | 126.3 | 0.05 | % | |||||||||||||||
| ^Moolchan Enterprises LLC dba Staying Green | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/31/2026 | 18.1 | 17.1 | 16.1 | 0.01 | % | |||||||||||||||
| ^Bloomquist Communications Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/31/2026 | 60.0 | 56.4 | 48.1 | 0.02 | % | |||||||||||||||
| ^Woodstock Enterprises Corp dba True Scent Candle Co. | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 10/31/2041 | 88.8 | 87.7 | 85.4 | 0.03 | % | |||||||||||||||
| ^Patina Investment, Inc and Ram & Sons, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/27/2041 | 175.0 | 172.8 | 181.6 | 0.07 | % | |||||||||||||||
| Elite Structures Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 10/27/2029 | 225.0 | 218.3 | 212.7 | 0.08 | % | |||||||||||||||
| ^FibAire Communications, LLC | Telecommunications | Term Loan | Prime plus 2.75% | 10/27/2026 | 107.5 | 101.0 | 92.7 | 0.04 | % | |||||||||||||||
| ^Bonita Stone LLC and Castone Creations Inc | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 10/25/2041 | 264.4 | 261.0 | 259.9 | 0.10 | % | |||||||||||||||
| ^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc. | Nonstore Retailers | Term Loan | Prime plus 2.75% | 10/25/2026 | 131.2 | 123.4 | 124.9 | 0.05 | % | |||||||||||||||
| Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 10/24/2026 | 425.0 | 399.5 | 398.7 | 0.16 | % | |||||||||||||||
| Eco Vehicle Systems LLC | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 10/21/2026 | 955.5 | 898.9 | 900.9 | 0.35 | % | |||||||||||||||
| Worldwide Estate, Inc. dba Washington Heights Manor | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 10/21/2041 | 225.0 | 221.7 | 233.1 | 0.09 | % | |||||||||||||||
| ^Gold Wind Logistics LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 10/20/2041 | 175.0 | 173.4 | 182.3 | 0.07 | % | |||||||||||||||
| ^Speaker City, Inc. dba Rollin Thunder | Electronics and Appliance Stores | Term Loan | Prime plus 2.75% | 10/14/2041 | 125.0 | 123.4 | 125.6 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
26
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Maine Service Corp | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 10/13/2026 | 206.3 | 192.5 | 180.6 | 0.07 | % | |||||||||||||||
| ^Justin Partlow | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 10/13/2026 | 19.5 | 18.3 | 15.6 | 0.01 | % | |||||||||||||||
| ^Reliable Recovery Services LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 10/7/2026 | 112.5 | 105.7 | 96.3 | 0.04 | % | |||||||||||||||
| ^Ailky Corporation | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 10/3/2026 | 250.0 | 235.0 | 206.0 | 0.08 | % | |||||||||||||||
| ^Wyspen Corporation dba Charlestown Ace | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 10/3/2026 | 36.0 | 33.8 | 28.9 | 0.01 | % | |||||||||||||||
| ^MegaPhase, LLC | Computer and Electronic Product Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2026 | 150.0 | 139.9 | 135.1 | 0.05 | % | |||||||||||||||
| ^Seaway LLC and Reklaw LLC dba Allure Lounge | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2041 | 137.5 | 135.4 | 142.3 | 0.06 | % | |||||||||||||||
| ^JJA Transportation Management Inc. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2026 | 52.5 | 49.0 | 41.7 | 0.02 | % | |||||||||||||||
| ^Adelwerth Bus Corp. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2041 | 242.8 | 239.3 | 237.0 | 0.09 | % | |||||||||||||||
| Adelwerth Bus Corporation, Transportation Leasing Corp. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2029 | 654.0 | 624.3 | 601.6 | 0.24 | % | |||||||||||||||
| Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/29/2029 | 671.5 | 640.3 | 600.1 | 0.23 | % | |||||||||||||||
| ^Las Casuelas Del Este Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/29/2041 | 800.0 | 791.6 | 814.7 | 0.32 | % | |||||||||||||||
| ^Thunderdome Racing Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/29/2026 | 19.0 | 17.8 | 17.6 | 0.01 | % | |||||||||||||||
| ^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 9/28/2041 | 850.0 | 836.9 | 879.5 | 0.34 | % | |||||||||||||||
| ^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Services | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/28/2041 | 405.8 | 400.1 | 382.5 | 0.15 | % | |||||||||||||||
| ^Beadon Inc | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/28/2026 | 22.5 | 21.0 | 21.0 | 0.01 | % | |||||||||||||||
| ^CNC Precision Machine, Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/28/2041 | 1,250.0 | 1,235.9 | 1,236.2 | 0.48 | % | |||||||||||||||
| ^CD Game Exchange Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/28/2026 | 22.5 | 21.0 | 17.9 | 0.01 | % | |||||||||||||||
| Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/28/2026 | 648.0 | 608.3 | 559.8 | 0.22 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
27
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Kyle M Walker DDS,PC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/27/2026 | 217.8 | 204.7 | 180.1 | 0.07 | % | |||||||||||||||
| Reynolds Fence & Guardrail Inc. | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/27/2026 | 629.6 | 587.1 | 560.5 | 0.22 | % | |||||||||||||||
| ^Luna Nueva LLC dba Bio Builders | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/27/2026 | 15.0 | 14.0 | 12.4 | — | % | |||||||||||||||
| ^Luv 2 Play Nor Cal, LLC dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/27/2026 | 52.5 | 49.0 | 43.8 | 0.02 | % | |||||||||||||||
| ^Sarah S Olelewe MD Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/26/2041 | 292.4 | 288.5 | 289.4 | 0.11 | % | |||||||||||||||
| ^TPFC,LLC dbaThe Picture Frame Company | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/26/2041 | 58.8 | 57.9 | 58.1 | 0.02 | % | |||||||||||||||
| ^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 9/26/2026 | 9.0 | 8.4 | 8.3 | — | % | |||||||||||||||
| ^PeopleBest Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/26/2026 | 15.0 | 14.0 | 11.9 | — | % | |||||||||||||||
| ^Mr. Mulch, Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/23/2041 | 405.7 | 399.5 | 375.3 | 0.15 | % | |||||||||||||||
| ^B4 Fitness LLC dba The Zoo Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/23/2026 | 87.5 | 81.6 | 72.7 | 0.03 | % | |||||||||||||||
| ^InformationTelevision Network Inc | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 9/22/2041 | 836.8 | 825.5 | 858.5 | 0.34 | % | |||||||||||||||
| ^GRA Financial Services Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/22/2026 | 12.0 | 11.2 | 9.5 | — | % | |||||||||||||||
| ^Wrecking Crew Media LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 9/21/2026 | 50.0 | 46.6 | 39.7 | 0.02 | % | |||||||||||||||
| ^Cuppiecakes LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/21/2041 | 22.5 | 22.2 | 22.2 | 0.01 | % | |||||||||||||||
| ^Benoit's Towing and Recovery LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 9/20/2026 | 12.0 | 11.2 | 9.7 | — | % | |||||||||||||||
| ^Consulting Solutions Inc. and Mark Luciani | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/20/2026 | 22.5 | 21.0 | 19.8 | 0.01 | % | |||||||||||||||
| ^Brittany Burns LLC dba Dreams Come True | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/19/2026 | 12.9 | 12.0 | 12.2 | — | % | |||||||||||||||
| ^Eyncon LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/16/2041 | 50.0 | 49.2 | 49.9 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
28
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Tresa S.Parris dba Wagging Tails Grooming | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/16/2026 | 8.0 | 7.6 | 6.5 | — | % | |||||||||||||||
| ^The Merrin Group LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/15/2026 | 175.0 | 163.2 | 157.0 | 0.06 | % | |||||||||||||||
| ^Rich's Food Stores LLC dba Hwy 55 of Wallace | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/14/2026 | 145.5 | 135.9 | 126.7 | 0.05 | % | |||||||||||||||
| ^Atlantic Alarm Systems and Services LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/14/2026 | 15.4 | 14.4 | 12.7 | — | % | |||||||||||||||
| ^Metropet Dog Center, Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/13/2041 | 109.2 | 107.6 | 109.3 | 0.04 | % | |||||||||||||||
| ^Marquis Cattle Company | Animal Production and Aquaculture | Term Loan | Prime plus 2.75% | 9/13/2026 | 50.0 | 47.1 | 47.6 | 0.02 | % | |||||||||||||||
| ^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/12/2041 | 82.5 | 81.2 | 79.6 | 0.03 | % | |||||||||||||||
| ^Artisan Infrastructure Holdings, LLC | Data Processing, Hosting, and Related Services | Term Loan | Prime plus 2.75% | 9/7/2026 | 125.0 | 116.6 | 99.3 | 0.04 | % | |||||||||||||||
| ^SRA Mechanicial Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/6/2041 | 43.8 | 43.1 | 45.1 | 0.02 | % | |||||||||||||||
| ^Sandia Enterprises Inc dba Massage Envy Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/6/2026 | 62.5 | 58.3 | 49.7 | 0.02 | % | |||||||||||||||
| ^Animal Intrusion Prevention Systems Holding Company, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/30/2026 | 125.0 | 115.9 | 101.5 | 0.04 | % | |||||||||||||||
| ^Suncrest Stone Products LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 8/29/2026 | 586.7 | 543.4 | 487.2 | 0.19 | % | |||||||||||||||
| ^Suncrest Stone Products LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 8/29/2041 | 649.6 | 638.7 | 595.9 | 0.23 | % | |||||||||||||||
| ^Clark Realty LLC | Real Estate | Term Loan | Prime plus 2.75% | 8/29/2041 | 237.5 | 233.5 | 224.8 | 0.09 | % | |||||||||||||||
| ^Raem Corporation dba Dryclean Express | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 8/29/2041 | 72.5 | 71.3 | 74.0 | 0.03 | % | |||||||||||||||
| ^Warren Dale Warrington dba Custom Paint and Body | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/26/2041 | 101.2 | 99.5 | 101.8 | 0.04 | % | |||||||||||||||
| ^TAGR Inc dba Miami Grill 137and John Nakis | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/26/2026 | 106.8 | 98.9 | 86.6 | 0.03 | % | |||||||||||||||
| ^Albert Basse Associates Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 8/25/2026 | 62.5 | 57.9 | 58.4 | 0.02 | % | |||||||||||||||
| ^Avery Management Inc. dba Whetstone Upholstery | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/25/2026 | 10.6 | 9.9 | 8.4 | — | % | |||||||||||||||
| ^Dean Technology Inc | Electrical Equipment, Appliance, and Component Manufacturing | Term Loan | Prime plus 2.75% | 8/25/2041 | 387.1 | 380.6 | 397.1 | 0.16 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
29
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Rosmel Pools Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/25/2026 | 22.5 | 20.8 | 18.2 | 0.01 | % | |||||||||||||||
| ^Tabadesa Associates Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/25/2026 | 22.5 | 20.8 | 17.8 | 0.01 | % | |||||||||||||||
| ^TR Companies LLC dba True Value Rental and Liberty Rental 4 U | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 8/25/2026 | 90.0 | 83.4 | 71.1 | 0.03 | % | |||||||||||||||
| Sambella Holdings, LLC and Strike Zone Entertainment Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/24/2041 | 500.0 | 492.0 | 513.3 | 0.20 | % | |||||||||||||||
| ^Tim's Tire & Automotive Center, LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 8/16/2026 | 816.6 | 768.3 | 697.1 | 0.27 | % | |||||||||||||||
| ^Luv 2 Play Temecula, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 8/15/2026 | 60.0 | 55.6 | 47.4 | 0.02 | % | |||||||||||||||
| Bear Creek Entertainment LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 8/12/2041 | 437.5 | 390.8 | 387.5 | 0.15 | % | |||||||||||||||
| ^2 Cool Beans LLC dba Menchies's Frozen Yogurt | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/11/2026 | 82.5 | 76.4 | 65.1 | 0.03 | % | |||||||||||||||
| ^Grayson O Company | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 8/10/2041 | 625.0 | 614.5 | 641.0 | 0.25 | % | |||||||||||||||
| ^Charal Investments LLC dba Orange Theory Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 8/10/2026 | 87.5 | 81.0 | 69.1 | 0.03 | % | |||||||||||||||
| ^PCNKC Inc dba Plato's Closet | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/10/2026 | 18.7 | 3.0 | 2.9 | — | % | |||||||||||||||
| ^Paul Belanger dba Paul Belanger Landscaping | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/9/2026 | 15.0 | 13.9 | 11.8 | — | % | |||||||||||||||
| ^Nicolette Reiser dba Comfort & Balance | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 7/29/2041 | 75.0 | 73.6 | 75.2 | 0.03 | % | |||||||||||||||
| ^USA General Investment LLC dba Braniff Paint and Body Shop | Repair and Maintenance | Term Loan | Prime plus 2.75% | 7/29/2026 | 22.5 | 20.7 | 18.2 | 0.01 | % | |||||||||||||||
| ^The Hungry Rhino LLC | Real Estate | Term Loan | Prime plus 2.75% | 7/29/2041 | 76.2 | 74.9 | 74.9 | 0.03 | % | |||||||||||||||
| ^303 Tower Drive LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 7/29/2041 | 400.3 | 392.9 | 404.0 | 0.16 | % | |||||||||||||||
| ^Little Tree Huggers Child Care LLC | Social Assistance | Term Loan | Prime plus 2.75% | 7/29/2041 | 140.0 | 137.4 | 144.2 | 0.06 | % | |||||||||||||||
| ^676 Club LP dba The Green Door Tavern/The Drifter | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/28/2041 | 670.0 | 657.7 | 682.3 | 0.27 | % | |||||||||||||||
| ^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/28/2041 | 587.0 | 576.2 | 579.4 | 0.23 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
30
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/28/2026 | 300.0 | 275.9 | 235.1 | 0.09 | % | |||||||||||||||
| ^MacIver Corporation dba Division Camera | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 7/28/2026 | 1,250.0 | 1,149.6 | 1,086.0 | 0.42 | % | |||||||||||||||
| ^J And G Group Services LLC and United Vending of Florida Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 7/28/2026 | 31.5 | 29.6 | 26.5 | 0.01 | % | |||||||||||||||
| ^Intrepid Trinity LLC | Nonstore Retailers | Term Loan | Prime plus 2.75% | 7/28/2041 | 62.5 | 61.4 | 62.5 | 0.02 | % | |||||||||||||||
| ^Apple Tree NC Inc dba Williams Farm & Garden Center | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 7/28/2041 | 337.0 | 330.8 | 327.9 | 0.13 | % | |||||||||||||||
| ^Kidtastic LLC dba The Little Gym of Audubon | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/27/2026 | 53.8 | 52.2 | 44.5 | 0.02 | % | |||||||||||||||
| ^GF Libations Inc dba Minuteman Press | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 7/27/2041 | 40.5 | 38.8 | 34.6 | 0.01 | % | |||||||||||||||
| ^EPEC Juice LLC dba Jamba Juice | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/27/2026 | 82.5 | 76.8 | 65.5 | 0.03 | % | |||||||||||||||
| ^Pinco Pizza LLC dba Jet's Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/27/2026 | 72.9 | 68.0 | 67.2 | 0.03 | % | |||||||||||||||
| ^Peckett's Inc | Crop Production | Term Loan | Prime plus 2.75% | 7/27/2041 | 225.0 | 219.6 | 230.7 | 0.09 | % | |||||||||||||||
| ^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/27/2026 | 125.0 | 115.0 | 98.0 | 0.04 | % | |||||||||||||||
| ^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 7/26/2026 | 91.0 | 83.6 | 76.4 | 0.03 | % | |||||||||||||||
| ^Gino Italian American Deli and Meat Market Inc | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 7/25/2041 | 536.8 | 530.2 | 527.9 | 0.21 | % | |||||||||||||||
| ^My Sainath Inc dba Motel 6 | Accommodation | Term Loan | Prime plus 2.75% | 7/22/2041 | 305.4 | 299.8 | 309.1 | 0.12 | % | |||||||||||||||
| ^Robert G Larson State Farm Insurance | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 7/22/2026 | 22.5 | 20.7 | 17.6 | 0.01 | % | |||||||||||||||
| ^J and D Resources LLC dba Aqua Science | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/19/2026 | 130.5 | 120.0 | 103.4 | 0.04 | % | |||||||||||||||
| ^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 7/18/2026 | 15.8 | 14.5 | 12.3 | — | % | |||||||||||||||
| Franklin Firm LLC dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/15/2041 | 173.3 | 170.6 | 171.7 | 0.07 | % | |||||||||||||||
| ^Billingsworks LLC dba Spoon Shine Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/15/2026 | 9.7 | 8.9 | 9.0 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
31
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Be Beautiful LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 7/14/2041 | 66.5 | 65.3 | 67.3 | 0.03 | % | |||||||||||||||
| ^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/13/2026 | 46.2 | 42.5 | 36.2 | 0.01 | % | |||||||||||||||
| ^Jacob Rugs LLC dba Rugs Outlet | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 7/13/2026 | 65.6 | 60.4 | 61.0 | 0.02 | % | |||||||||||||||
| ^RM Hawkins LLC dba Pure Water Tech West | Nonstore Retailers | Term Loan | Prime plus 2.75% | 7/7/2026 | 50.0 | 46.0 | 44.2 | 0.02 | % | |||||||||||||||
| ^Dino Smiles Children's Cosmetic Dentistry | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 7/7/2026 | 14.3 | 13.1 | 11.5 | — | % | |||||||||||||||
| Nevey's LLC dba Stark Food III | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/30/2041 | 293.9 | 289.1 | 299.1 | 0.12 | % | |||||||||||||||
| ^Soregard Inc | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 6/30/2041 | 278.8 | 273.2 | 262.0 | 0.10 | % | |||||||||||||||
| ^P L H Pharmaco Inc dba Farmacia San Jose | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 6/30/2026 | 175.0 | 159.8 | 158.4 | 0.06 | % | |||||||||||||||
| ^Martin Inventory Management LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/30/2026 | 105.8 | 96.6 | 97.6 | 0.04 | % | |||||||||||||||
| ^Desert Tacos LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2026 | 98.8 | 92.6 | 87.3 | 0.03 | % | |||||||||||||||
| ^VMA Technologies LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/30/2026 | 22.5 | 20.5 | 17.5 | 0.01 | % | |||||||||||||||
| ^Corning Lumber Company Inc and Frank R Close and Son Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/30/2029 | 195.5 | 183.8 | 187.5 | 0.07 | % | |||||||||||||||
| ^Castone Creations Inc | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 6/29/2026 | 87.5 | 79.9 | 71.3 | 0.03 | % | |||||||||||||||
| ^WGI, LLC dba Williams Grant Inn | Accommodation | Term Loan | Prime plus 2.75% | 6/29/2041 | 131.2 | 128.6 | 129.5 | 0.05 | % | |||||||||||||||
| ^KWG Industries, LLC dba Peterson & Marsh Metal Industries | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 6/29/2041 | 304.5 | 299.0 | 305.7 | 0.12 | % | |||||||||||||||
| ^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/29/2026 | 140.0 | 127.8 | 112.0 | 0.04 | % | |||||||||||||||
| ^Ninsa LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/29/2041 | 112.5 | 110.3 | 115.8 | 0.05 | % | |||||||||||||||
| ^E & P Holdings 1 LLC and Evans & Paul LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 6/28/2026 | 125.0 | 114.3 | 101.0 | 0.04 | % | |||||||||||||||
| ^MaidPro Marin dba MaidPro | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/28/2026 | 17.6 | 16.0 | 13.6 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
32
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^All Printing Solutions, Inc. dba Pryntcomm | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 6/27/2041 | 545.6 | 535.4 | 517.5 | 0.20 | % | |||||||||||||||
| ^Edge Pest Control LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/27/2026 | 750.0 | 684.9 | 583.2 | 0.23 | % | |||||||||||||||
| ^Jumbomarkets Inc dba Rines Jumbomarkets | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/24/2026 | 50.0 | 45.7 | 38.9 | 0.02 | % | |||||||||||||||
| ^El Basha Inc dba RPM West San Fernando Valley | Real Estate | Term Loan | Prime plus 2.75% | 6/24/2026 | 22.5 | 17.8 | 15.1 | 0.01 | % | |||||||||||||||
| ^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast | Accommodation | Term Loan | Prime plus 2.75% | 6/24/2041 | 101.2 | 99.2 | 104.2 | 0.04 | % | |||||||||||||||
| ^Yellow Cab Company of Kissimmee Inc | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 6/24/2041 | 56.8 | 55.7 | 53.5 | 0.02 | % | |||||||||||||||
| Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/23/2041 | 494.8 | 488.4 | 478.5 | 0.19 | % | |||||||||||||||
| ^Visual Advantage LLC dba Signs Now Perryberg | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/23/2041 | 91.2 | 89.4 | 89.2 | 0.03 | % | |||||||||||||||
| ^Long Island Comedy LLC dba Governors and New York Comedy, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/23/2041 | 187.5 | 183.8 | 185.5 | 0.07 | % | |||||||||||||||
| ^SNS of Central Alabama, LLC dba Steak N Shake dba Steak N Shake | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/21/2026 | 57.5 | 52.5 | 47.9 | 0.02 | % | |||||||||||||||
| ^Evergreen Investment & Property Management LLC ,Universal Kidney Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/20/2041 | 1,250.0 | 1,229.1 | 1,269.8 | 0.50 | % | |||||||||||||||
| ^Italian Heritage Tile and Stone Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/20/2026 | 62.5 | 57.1 | 48.6 | 0.02 | % | |||||||||||||||
| ^Bagelicious, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/17/2026 | 54.5 | 49.8 | 42.7 | 0.02 | % | |||||||||||||||
| ^T and B Boots Inc dba Takken's Shoes | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 6/17/2026 | 225.0 | 206.1 | 208.3 | 0.08 | % | |||||||||||||||
| ^NKJ Lusby Donuts LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/16/2026 | 22.5 | 20.5 | 17.5 | 0.01 | % | |||||||||||||||
| ^Winegirl Wines LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 6/16/2026 | 11.3 | 10.3 | 10.4 | — | % | |||||||||||||||
| ^Blue Eagle Transport Inc, Greeneagle Transport Inc and Golden Eagle Transport | Couriers and Messengers | Term Loan | Prime plus 2.75% | 6/16/2026 | 583.0 | 524.9 | 447.0 | 0.17 | % | |||||||||||||||
| ^Jai-Alexia Consulting, Inc. | Couriers and Messengers | Term Loan | Prime plus 2.75% | 6/15/2026 | 11.8 | 10.8 | 9.2 | — | % | |||||||||||||||
| ^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares | Social Assistance | Term Loan | Prime plus 2% | 6/15/2041 | 515.2 | 503.9 | 487.6 | 0.19 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
33
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Strag Industries LLC dba Meineke Car Care Center 841 | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/15/2026 | 15.0 | 13.7 | 12.7 | — | % | |||||||||||||||
| ^Luv 2 Play AZ LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/10/2026 | 62.5 | 57.1 | 56.0 | 0.02 | % | |||||||||||||||
| ^Refoleen Inc dba Spice and Tea Exchange | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/10/2026 | 85.0 | 79.1 | 67.3 | 0.03 | % | |||||||||||||||
| ^VBGB Uptown, LLC dba VBGB Beer Hall & Garden | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/8/2026 | 84.0 | 76.7 | 65.3 | 0.03 | % | |||||||||||||||
| ^ScimTech Industries Inc dba Archer Aerospace | Computer and Electronic Product Manufacturing | Term Loan | Prime plus 2.75% | 6/6/2026 | 12.0 | 11.0 | 9.3 | — | % | |||||||||||||||
| ^Larry H. Patterson and Rainbow Movers, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 6/6/2026 | 22.5 | 20.5 | 17.6 | 0.01 | % | |||||||||||||||
| ^Solvit Inc and Solvit North Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/3/2026 | 250.0 | 229.5 | 206.0 | 0.08 | % | |||||||||||||||
| ^AP5 LLC dba Krauser's Food Store | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/2/2041 | 242.5 | 237.7 | 240.5 | 0.09 | % | |||||||||||||||
| ^ATI Jet Inc | Air Transportation | Term Loan | Prime plus 2.75% | 5/31/2026 | 518.8 | 470.4 | 421.1 | 0.16 | % | |||||||||||||||
| ^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/31/2026 | 50.0 | 45.3 | 45.8 | 0.02 | % | |||||||||||||||
| Angelo Faia dba AVF Construction | Construction of Buildings | Term Loan | Prime plus 2.75% | 5/27/2041 | 100.0 | 97.4 | 97.8 | 0.04 | % | |||||||||||||||
| ^Premier Athletic Center of Ohio, Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/27/2026 | 87.5 | 79.3 | 80.2 | 0.03 | % | |||||||||||||||
| ^Mersada Holdings LLC | Nonstore Retailers | Term Loan | Prime plus 2.75% | 5/26/2026 | 337.5 | 306.0 | 309.3 | 0.12 | % | |||||||||||||||
| ^Jack Frost Firewood Inc. and David Dubinsky | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/26/2041 | 206.2 | 201.8 | 201.3 | 0.08 | % | |||||||||||||||
| ^Southwest Division Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 5/26/2026 | 8.3 | 7.5 | 6.8 | — | % | |||||||||||||||
| ^PennyLion LLC dba Creamistry | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/25/2026 | 81.0 | 74.4 | 65.3 | 0.03 | % | |||||||||||||||
| ^International Kitchen Supply LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 5/25/2026 | 186.7 | 169.3 | 152.9 | 0.06 | % | |||||||||||||||
| ^Groth Lumber Co. Inc. dba True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/25/2026 | 22.5 | 20.4 | 20.6 | 0.01 | % | |||||||||||||||
| ^Island Life Graphics Inc dba FASTSIGNS #576 | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 5/24/2026 | 22.5 | 20.4 | 17.7 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
34
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Powerspec Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/24/2026 | 87.5 | 79.4 | 67.6 | 0.03 | % | |||||||||||||||
| ^Horseshoe Barbecue, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/23/2029 | 15.0 | 12.8 | 13.1 | 0.01 | % | |||||||||||||||
| ^Elderfriend Inc dba Granny Nannies dba GN Live Scan | Social Assistance | Term Loan | Prime plus 2.75% | 5/20/2026 | 12.7 | 11.6 | 9.8 | — | % | |||||||||||||||
| ^National Air Cargo Holdings Inc | Air Transportation | Term Loan | Prime plus 2.75% | 5/20/2026 | 1,250.0 | 1,133.4 | 1,123.0 | 0.44 | % | |||||||||||||||
| ^Pro Auto Repair LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/20/2026 | 7.5 | 6.7 | 6.6 | — | % | |||||||||||||||
| ^HBA LLC dba Palmetto Twist-Vista | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/18/2026 | 22.5 | 17.7 | 15.5 | 0.01 | % | |||||||||||||||
| ^J&A Laundromat Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/18/2026 | 67.5 | 61.2 | 53.7 | 0.02 | % | |||||||||||||||
| ^Dedicated Incorporated | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/18/2041 | 46.5 | 45.5 | 46.2 | 0.02 | % | |||||||||||||||
| ^J Harris Trucking, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 5/13/2026 | 60.0 | 39.2 | 35.7 | 0.01 | % | |||||||||||||||
| ^FJN Catering Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/13/2041 | 262.5 | 257.3 | 268.3 | 0.10 | % | |||||||||||||||
| ^LED Lighting Enterprises LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 5/13/2026 | 22.5 | 20.4 | 17.9 | 0.01 | % | |||||||||||||||
| ^Studio Find It Georgia Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/13/2026 | 22.5 | 20.4 | 18.0 | 0.01 | % | |||||||||||||||
| ^Luv 2 Play OC Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/12/2026 | 62.5 | 60.8 | 51.8 | 0.02 | % | |||||||||||||||
| ^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano | Social Assistance | Term Loan | Prime plus 2.75% | 5/12/2041 | 132.5 | 129.7 | 129.9 | 0.05 | % | |||||||||||||||
| ^The Delon Group LLC dba I Love Juice Bar | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/12/2026 | 55.0 | 19.8 | 16.9 | 0.01 | % | |||||||||||||||
| ^Sabir Inc. dba Bear Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/11/2041 | 123.8 | 121.3 | 124.8 | 0.05 | % | |||||||||||||||
| ^Gator D'Lites LLC dba D'Lites Emporium | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 5/5/2026 | 22.5 | 20.4 | 17.4 | 0.01 | % | |||||||||||||||
| ^Warner Home Comfort, LLC dba Smith Piping | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 4/29/2041 | 82.5 | 80.6 | 80.9 | 0.03 | % | |||||||||||||||
| ^Keller, Fishback & Jackson LLP | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/29/2026 | 131.7 | 117.6 | 118.9 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
35
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/29/2026 | 22.5 | 20.3 | 17.2 | 0.01 | % | |||||||||||||||
| ^Euro Car Miami LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 4/29/2026 | 62.5 | 56.3 | 56.9 | 0.02 | % | |||||||||||||||
| ^Hard Exercise Works Winter Park LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/29/2026 | 40.8 | 36.7 | 31.2 | 0.01 | % | |||||||||||||||
| ^Loriet LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 4/29/2026 | 7.5 | 6.8 | 5.8 | — | % | |||||||||||||||
| ^La Nopalera Mexicano 2, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/29/2026 | 125.5 | 84.7 | 85.6 | 0.03 | % | |||||||||||||||
| ^May-Craft Fiberglass Products Inc | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 4/29/2041 | 247.5 | 241.8 | 254.0 | 0.10 | % | |||||||||||||||
| ^Alpha Omega Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 4/29/2041 | 175.7 | 171.9 | 180.6 | 0.07 | % | |||||||||||||||
| ^Empowerschool LLC and Empower Autism Academy, LLC | Social Assistance | Term Loan | Prime plus 2.75% | 4/29/2041 | 151.9 | 148.4 | 155.9 | 0.06 | % | |||||||||||||||
| ^Scoler LLC dba Gold's Gym | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/29/2026 | 262.5 | 236.3 | 211.8 | 0.08 | % | |||||||||||||||
| ^Inner Beauty Salon and Suite LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/28/2041 | 65.0 | 63.5 | 66.1 | 0.03 | % | |||||||||||||||
| ^Atlantic Restaurant Associates LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/28/2041 | 262.5 | 256.5 | 264.4 | 0.10 | % | |||||||||||||||
| ^Costume World Inc | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 4/28/2041 | 1,250.0 | 1,225.3 | 1,287.0 | 0.50 | % | |||||||||||||||
| ^Pecos Inn LLC dba Econo Lodge | Accommodation | Term Loan | Prime plus 2.75% | 4/28/2041 | 677.5 | 659.9 | 679.8 | 0.27 | % | |||||||||||||||
| ^North American Manufacturing Company | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 4/28/2026 | 160.0 | 144.0 | 145.6 | 0.06 | % | |||||||||||||||
| ^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma | Real Estate | Term Loan | Prime plus 2.75% | 4/28/2026 | 9.0 | 8.1 | 6.9 | — | % | |||||||||||||||
| ^Knowledge First Inc dba Magic Years of Learning | Social Assistance | Term Loan | Prime plus 2.75% | 4/27/2026 | 80.0 | 72.1 | 68.7 | 0.03 | % | |||||||||||||||
| ^Green Country Filter Manufacturing LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 4/27/2026 | 84.2 | 76.6 | 67.1 | 0.03 | % | |||||||||||||||
| ^Accent Comfort Services, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 4/26/2026 | 90.0 | 81.0 | 69.0 | 0.03 | % | |||||||||||||||
| ^Homecare Casa Rhoda 123 Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2% | 4/26/2041 | 675.0 | 657.8 | 645.8 | 0.25 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
36
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 4/22/2041 | 250.0 | 244.3 | 235.7 | 0.09 | % | |||||||||||||||
| ^McIntosh Trail Management Services Organization Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/22/2041 | 425.0 | 415.3 | 436.2 | 0.17 | % | |||||||||||||||
| ^Jande Graphics LLC dba FastSigns #103201 | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/21/2026 | 56.0 | 50.4 | 42.9 | 0.02 | % | |||||||||||||||
| ^AAA Mill Direct, Inc. dba Carpet Mill Outlets | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 4/21/2026 | 7.9 | 7.1 | 7.2 | — | % | |||||||||||||||
| ^Miguel Fernando Borda, P.A. dba BGR Dental | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/15/2026 | 22.5 | 20.3 | 17.9 | 0.01 | % | |||||||||||||||
| ^LE & JS dba Laredo Mercado Y Carniceria | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 4/13/2026 | 19.9 | 18.5 | 15.8 | 0.01 | % | |||||||||||||||
| ^Sushiya Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/12/2026 | 87.5 | 78.8 | 70.1 | 0.03 | % | |||||||||||||||
| ^Sierra Foothill Cremation & Funeral Service, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/7/2026 | 53.0 | 47.8 | 40.7 | 0.02 | % | |||||||||||||||
| ^Waterfalls Quick Lube LLC and Veracruz Shabo LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/6/2041 | 271.3 | 268.2 | 274.0 | 0.11 | % | |||||||||||||||
| ^KNS Early Learning Academy LLC | Social Assistance | Term Loan | Prime plus 2.75% | 4/6/2041 | 51.0 | 49.9 | 49.7 | 0.02 | % | |||||||||||||||
| ^Vehicle Safety Supply LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/31/2026 | 22.5 | 20.1 | 18.4 | 0.01 | % | |||||||||||||||
| ^Men of Steel Enterprises LLC and Vogelbacher Properties LLC | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 3/31/2041 | 393.5 | 383.9 | 384.3 | 0.15 | % | |||||||||||||||
| ^Gill Express Inc and Blue Speed LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/31/2041 | 518.0 | 505.4 | 524.2 | 0.21 | % | |||||||||||||||
| ^Dana A. Farley dba Independent Cabinets | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 3/31/2041 | 67.5 | 65.9 | 70.2 | 0.03 | % | |||||||||||||||
| ^Christian Soderquist dba Soderquist Plumbing and Heating LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/31/2041 | 56.8 | 55.4 | 59.0 | 0.02 | % | |||||||||||||||
| ^Duke's Cleaners Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/31/2026 | 47.0 | 42.0 | 40.7 | 0.02 | % | |||||||||||||||
| ^Cameo Carter, MD A Professional Corporation dba The Garden Pediatric Group | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/31/2026 | 75.0 | 67.0 | 61.4 | 0.02 | % | |||||||||||||||
| ^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant and Marvin | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2026 | 66.8 | 56.0 | 51.3 | 0.02 | % | |||||||||||||||
| ^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn | Accommodation | Term Loan | Prime plus 2.75% | 3/30/2026 | 22.5 | 20.4 | 20.8 | 0.01 | % | |||||||||||||||
| ^MTS Car Service LLC | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 3/30/2026 | 10.5 | 9.4 | 8.6 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
37
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^NOSO Development, LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 3/30/2026 | 187.5 | 167.5 | 153.5 | 0.06 | % | |||||||||||||||
| ^Wyldewood Cellars, Inc. | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 3/30/2041 | 986.7 | 974.2 | 987.2 | 0.39 | % | |||||||||||||||
| ^Tom Sawyer Country Restaurant LLC and AM 3208 LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/30/2041 | 257.5 | 252.0 | 266.1 | 0.10 | % | |||||||||||||||
| ^Beale Street Blues Company-West Palm Beach, LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 3/30/2026 | 93.7 | 83.8 | 78.2 | 0.03 | % | |||||||||||||||
| ^Barrocas Gym LLC dba Snap Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/29/2026 | 22.5 | 17.8 | 17.2 | 0.01 | % | |||||||||||||||
| ^Lust for Life Footwear, LLC | Leather and Allied Product Manufacturing | Term Loan | Prime plus 2.75% | 3/29/2026 | 375.0 | 335.1 | 307.0 | 0.12 | % | |||||||||||||||
| ^Vinmar Inc. dba Locanda Portofino | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/29/2026 | 81.3 | 72.6 | 66.5 | 0.03 | % | |||||||||||||||
| ^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2% | 3/29/2041 | 525.0 | 495.2 | 500.5 | 0.20 | % | |||||||||||||||
| ^Marathon Engineering Corporation | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 3/28/2041 | 45.0 | 43.9 | 46.1 | 0.02 | % | |||||||||||||||
| ^ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstry | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/28/2026 | 12.4 | 11.1 | 11.2 | — | % | |||||||||||||||
| ^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/28/2026 | 50.0 | 44.7 | 42.5 | 0.02 | % | |||||||||||||||
| ^Revolution Physical Therapy LLC dba Apex Network Physical Therapy | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/25/2026 | 22.5 | 20.4 | 19.0 | 0.01 | % | |||||||||||||||
| ^RCB Enterprises, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/25/2026 | 56.3 | 50.3 | 46.1 | 0.02 | % | |||||||||||||||
| ^Excel RP Inc | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 3/25/2026 | 125.0 | 111.7 | 106.7 | 0.04 | % | |||||||||||||||
| ^ActKnowledge, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/24/2026 | 125.0 | 111.7 | 113.9 | 0.04 | % | |||||||||||||||
| ^International Construction Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 3/24/2041 | 50.0 | 48.9 | 50.4 | 0.02 | % | |||||||||||||||
| ^Lowgap Grocery & Grill LLC | General Merchandise Stores | Term Loan | Prime plus 2.75% | 3/24/2041 | 167.5 | 163.4 | 174.2 | 0.07 | % | |||||||||||||||
| ^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/24/2026 | 50.0 | 44.8 | 45.0 | 0.02 | % | |||||||||||||||
| ^Acton Hardware LLC and Mark Allgood & Jamie Allgood | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/24/2041 | 498.6 | 486.8 | 496.1 | 0.19 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
38
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Magnation Corporation and Misha Family Trust | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/22/2041 | 101.3 | 99.1 | 105.6 | 0.04 | % | |||||||||||||||
| ^growth.period LLC and Potomac Recruiting LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/21/2026 | 156.3 | 139.6 | 127.9 | 0.05 | % | |||||||||||||||
| ^Precious Care LLC and Precious Care Management LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/21/2026 | 557.5 | 498.9 | 459.2 | 0.18 | % | |||||||||||||||
| ^Media Capital Partners, Inc | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 3/21/2026 | 22.5 | 20.5 | 18.8 | 0.01 | % | |||||||||||||||
| ^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/18/2041 | 80.7 | 78.8 | 83.5 | 0.03 | % | |||||||||||||||
| ^ERT Group Inc and Curt's Tools Inspection Inc | Support Activities for Mining | Term Loan | Prime plus 2.75% | 3/18/2041 | 1,250.0 | 1,229.9 | 1,272.0 | 0.50 | % | |||||||||||||||
| ^Kekoa Enterprises Inc dba Signarama Sandy | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/18/2026 | 49.5 | 44.2 | 40.5 | 0.02 | % | |||||||||||||||
| ^Mariam Diner Inc dba Country Kitchen Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/18/2026 | 52.5 | 46.9 | 43.0 | 0.02 | % | |||||||||||||||
| ^Brian T Rice dba BD Logging | Forestry and Logging | Term Loan | Prime plus 2.75% | 3/17/2026 | 15.8 | 14.1 | 13.5 | 0.01 | % | |||||||||||||||
| ^Auto and Property Insurance Solutions | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 3/16/2026 | 16.4 | 14.5 | 13.2 | 0.01 | % | |||||||||||||||
| ^Demand Printing Solutions Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 3/16/2026 | 21.8 | 19.4 | 19.2 | 0.01 | % | |||||||||||||||
| ^LAN Doctors Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/16/2026 | 55.0 | 49.2 | 50.2 | 0.02 | % | |||||||||||||||
| ^Evergreen Pallet LLC and Evergreen Recycle LLC | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 3/16/2026 | 1,039.2 | 931.4 | 886.2 | 0.35 | % | |||||||||||||||
| ^K Soles Corp dba Max Collections | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/16/2026 | 22.5 | 20.1 | 18.4 | 0.01 | % | |||||||||||||||
| ^R & D Enterprises Inc dba My Pool Man | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/15/2026 | 50.0 | 44.7 | 40.9 | 0.02 | % | |||||||||||||||
| ^Mustafa Inc and Raouf Properties LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/14/2041 | 75.0 | 73.2 | 77.4 | 0.03 | % | |||||||||||||||
| ^HEWZ, LLC dba Hard Exercise Works | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/14/2026 | 22.5 | 20.1 | 18.4 | 0.01 | % | |||||||||||||||
| ^Country Paint and Hardware Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/11/2026 | 87.4 | 78.1 | 72.6 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
39
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Wilban LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/11/2026 | 105.0 | 95.0 | 93.8 | 0.04 | % | |||||||||||||||
| ^Dupre Capital LLC dba Fastsigns | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 3/11/2026 | 58.4 | 52.2 | 47.8 | 0.02 | % | |||||||||||||||
| ^Magill Truck Line LLC and Jeff J. Ralls | Truck Transportation | Term Loan | Prime plus 2.75% | 3/11/2029 | 210.8 | 195.3 | 187.6 | 0.07 | % | |||||||||||||||
| ^Accuair Control Systems LLC dba Accuair Suspension | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 3/11/2026 | 150.0 | 134.0 | 124.7 | 0.05 | % | |||||||||||||||
| ^ABCs & 123s Infant and Child Care Center LP | Social Assistance | Term Loan | Prime plus 2.75% | 3/11/2026 | 11.2 | 10.1 | 9.2 | — | % | |||||||||||||||
| ^State Painting & Decorating Co., Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/10/2026 | 103.8 | 92.7 | 84.9 | 0.03 | % | |||||||||||||||
| ^B.P.T.M. of NV LLC and Agentis Bros., LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/9/2041 | 525.0 | 512.2 | 532.4 | 0.21 | % | |||||||||||||||
| ^Step Up Academy of the Arts LLC | Educational Services | Term Loan | Prime plus 2.75% | 3/9/2026 | 8.0 | 7.2 | 6.6 | — | % | |||||||||||||||
| ^A & A Auto Care LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/9/2026 | 12.1 | 10.9 | 10.9 | — | % | |||||||||||||||
| ^Faith Summit Supply Inc dba Summit Supply and Summit True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/9/2026 | 22.5 | 20.1 | 19.3 | 0.01 | % | |||||||||||||||
| ^Swerve Salon LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/8/2026 | 79.0 | 70.6 | 64.7 | 0.03 | % | |||||||||||||||
| ^J & W Hardwood Flooring Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/7/2026 | 7.5 | 6.7 | 6.1 | — | % | |||||||||||||||
| ^Labmates LLC and POV Holdings LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 3/4/2041 | 109.3 | 106.6 | 113.6 | 0.04 | % | |||||||||||||||
| ^Hueston and Company CPA LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/4/2026 | 8.3 | 7.3 | 6.8 | — | % | |||||||||||||||
| ^Almost Home Daycare LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/3/2026 | 50.0 | 45.0 | 45.3 | 0.02 | % | |||||||||||||||
| ^Miles of Smiles Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/2/2026 | 93.5 | 85.1 | 79.1 | 0.03 | % | |||||||||||||||
| ^Living Essentials HVAC Corp | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 2/28/2026 | 15.0 | 13.3 | 12.3 | — | % | |||||||||||||||
| ^Consulting Solutions, Inc. and Mark Luciani | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/28/2026 | 11.2 | 10.0 | 10.1 | — | % | |||||||||||||||
| ^Powerpits CS1, LLC dba Pita Pit | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2026 | 18.8 | 16.6 | 15.8 | 0.01 | % | |||||||||||||||
| ^Drug Detection Laboratories, Inc. and Minh Tran | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/28/2026 | 19.8 | 17.5 | 16.3 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
40
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Doxa Deo Inc dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2026 | 105.0 | 97.3 | 91.2 | 0.04 | % | |||||||||||||||
| ^The River Beas, LLC dba Subway and Punam Singh | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2041 | 135.9 | 132.7 | 140.4 | 0.05 | % | |||||||||||||||
| ^Blackstones Hairdressing LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/23/2026 | 52.0 | 46.5 | 42.9 | 0.02 | % | |||||||||||||||
| ^Aaradhya LLC dba Market Square Laundry | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/23/2026 | 80.0 | 70.9 | 65.0 | 0.03 | % | |||||||||||||||
| ^R-No-Landscaping LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/19/2026 | 8.3 | 7.3 | 6.8 | — | % | |||||||||||||||
| ^BER Enterprise 332 Inc dba Edible Arrangements | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/19/2026 | 22.5 | 20.0 | 18.4 | 0.01 | % | |||||||||||||||
| ^R & K Contracting Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 2/18/2026 | 15.8 | 14.1 | 14.1 | 0.01 | % | |||||||||||||||
| ^Pacific Coast Medical Group LLC dba Celebrity Laser Spa and Advanced | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/17/2026 | 245.0 | 217.3 | 221.6 | 0.09 | % | |||||||||||||||
| ^B for Blonde, LLC dba Blo Blow Dry Bar | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/12/2026 | 62.0 | 55.7 | 51.1 | 0.02 | % | |||||||||||||||
| ^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/12/2029 | 310.3 | 286.3 | 277.9 | 0.11 | % | |||||||||||||||
| ^Ei3 Corporation | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/12/2026 | 326.9 | 289.9 | 295.7 | 0.12 | % | |||||||||||||||
| ^Jersey Shore Marina & Boat Sales, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/12/2041 | 625.0 | 609.7 | 650.0 | 0.25 | % | |||||||||||||||
| ^Base USA, Inc. | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 2/2/2026 | 50.0 | 44.4 | 45.3 | 0.02 | % | |||||||||||||||
| ^Zouk Ltd dba Palma | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/29/2026 | 22.5 | 19.8 | 20.2 | 0.01 | % | |||||||||||||||
| ^Tammy Lavertue | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 1/28/2026 | 11.3 | 9.9 | 9.9 | — | % | |||||||||||||||
| ^SuzyQue's LLC dba SuzyQue's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/28/2026 | 22.5 | 19.8 | 20.2 | 0.01 | % | |||||||||||||||
| ^Wildflour Bakery & Cafe LLC | Social Assistance | Term Loan | Prime plus 2.75% | 1/28/2026 | 62.5 | 55.0 | 55.5 | 0.02 | % | |||||||||||||||
| ^New Image Building Services, Inc. dba The Maids serving Oakland | Administrative and Support Services | Term Loan | Prime plus 2.75% | 1/19/2026 | 83.1 | 73.2 | 69.3 | 0.03 | % | |||||||||||||||
| ^Oak Tree Storage LLC | Other Information Services | Term Loan | Prime plus 2.75% | 1/19/2026 | 78.8 | 69.3 | 64.3 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
41
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Gendron Funeral and Cremation Services, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 1/11/2041 | 112.5 | 108.0 | 115.1 | 0.05 | % | |||||||||||||||
| ^Dolarian Realty LLC and OV's Restaurant Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/5/2041 | 67.8 | 66.0 | 70.4 | 0.03 | % | |||||||||||||||
| ^Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/29/2025 | 112.5 | 98.3 | 92.4 | 0.04 | % | |||||||||||||||
| ^MCF Forte LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/29/2025 | 18.8 | 16.4 | 15.1 | 0.01 | % | |||||||||||||||
| ^Panditos LLC dba White Lotus Home | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 12/28/2025 | 15.9 | 13.9 | 12.7 | — | % | |||||||||||||||
| ^Bright Dialysis LLC and Ft Pierce Kidney Care LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/28/2025 | 1,250.0 | 1,092.1 | 1,002.2 | 0.39 | % | |||||||||||||||
| ^V2 Tango LLC dba Palette 22 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/23/2025 | 250.0 | 218.4 | 204.3 | 0.08 | % | |||||||||||||||
| ^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/23/2040 | 102.5 | 99.5 | 103.9 | 0.04 | % | |||||||||||||||
| ^Optima Health Care Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/23/2025 | 62.5 | 54.6 | 55.7 | 0.02 | % | |||||||||||||||
| ^800 on the Trax LLC and Matrix Z LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 12/23/2040 | 240.0 | 234.1 | 243.4 | 0.10 | % | |||||||||||||||
| ^Joyce Outdoor Advertising Chicago LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/22/2040 | 300.0 | 293.1 | 303.6 | 0.12 | % | |||||||||||||||
| ^The LAX Shop Inc | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 12/22/2025 | 125.0 | 85.4 | 87.1 | 0.03 | % | |||||||||||||||
| ^Premier Athletic Center of Ohio Inc. and Gates Investments | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/22/2028 | 882.0 | 804.8 | 829.2 | 0.32 | % | |||||||||||||||
| ^Hattingh Incorporated dba Prosthetic Care Facility | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/21/2025 | 18.0 | 15.7 | 14.9 | 0.01 | % | |||||||||||||||
| ^G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC and ANA | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/18/2040 | 1,025.0 | 994.8 | 1,060.0 | 0.41 | % | |||||||||||||||
| ^Trip Consultants U.S.A. Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/18/2025 | 175.0 | 152.9 | 140.0 | 0.05 | % | |||||||||||||||
| ^Jay Kevin Gremillion dba Dino Smiles Children’s Cosmetic Dentistry | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/18/2025 | 73.0 | 65.4 | 61.1 | 0.02 | % | |||||||||||||||
| ^Capital Scrap Metal LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/18/2025 | 36.0 | 30.4 | 28.2 | 0.01 | % | |||||||||||||||
| ^Accent Tag and Label Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 12/18/2040 | 665.8 | 644.4 | 671.7 | 0.26 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
42
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Labmates LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 12/18/2040 | 162.5 | 157.7 | 168.0 | 0.07 | % | |||||||||||||||
| ^Abbondanza Market LLC dba Hampton Falls Village Market | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/18/2025 | 73.7 | 58.8 | 55.0 | 0.02 | % | |||||||||||||||
| ^Mustafa Inc dba Adiba Grocery | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/17/2025 | 103.8 | 91.2 | 92.9 | 0.04 | % | |||||||||||||||
| ^Learning Skills LLC and Christopher Shrope | Educational Services | Term Loan | Prime plus 2.75% | 12/17/2025 | 10.8 | 9.4 | 8.6 | — | % | |||||||||||||||
| ^New York Home Health Care Equipment, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/16/2025 | 875.0 | 767.0 | 775.6 | 0.30 | % | |||||||||||||||
| ^Moments to Remember USA LLC dba Retain Loyalty | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/16/2025 | 75.0 | 65.6 | 64.2 | 0.03 | % | |||||||||||||||
| ^Swalm Sreet LLC and New York Home Health Care Equipment LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/16/2040 | 375.0 | 365.3 | 385.8 | 0.15 | % | |||||||||||||||
| ^Abitino's JFK LLC dba Abitino's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/16/2022 | 125.0 | 102.0 | 96.2 | 0.04 | % | |||||||||||||||
| ^JAG Unit 1, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/16/2025 | 250.0 | 218.4 | 200.0 | 0.08 | % | |||||||||||||||
| ^SDA Holdings LLC and Les Cheveux Salon Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/15/2040 | 428.8 | 418.2 | 431.3 | 0.17 | % | |||||||||||||||
| ^Evans & Paul LLC and E&P Holdings I LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2025 | 125.0 | 109.2 | 102.3 | 0.04 | % | |||||||||||||||
| ^Basista Family Limited Partnership and UPE, Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/14/2040 | 342.5 | 332.4 | 345.5 | 0.14 | % | |||||||||||||||
| ^DC Enterprises Ltd. dba Lakeview True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 12/14/2025 | 22.5 | 19.7 | 19.5 | 0.01 | % | |||||||||||||||
| ^Tri-State Remodeling & Investments, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/11/2025 | 15.9 | 13.9 | 13.9 | 0.01 | % | |||||||||||||||
| ^AGR Foodmart Inc dba Nashua Road Mobil | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/11/2025 | 22.5 | 19.7 | 19.4 | 0.01 | % | |||||||||||||||
| ^Alexandra Afentoulides dba Vi's Pizza Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/11/2040 | 46.3 | 44.9 | 47.8 | 0.02 | % | |||||||||||||||
| ^Cares, Inc. dba Dumpling Grounds Day Care Center | Social Assistance | Term Loan | Prime plus 2.75% | 12/10/2025 | 7.5 | 6.6 | 6.7 | — | % | |||||||||||||||
| ^Custom Exteriors, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/9/2025 | 100.0 | 87.4 | 82.0 | 0.03 | % | |||||||||||||||
| ^Sushiya, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/8/2025 | 108.7 | 95.0 | 89.4 | 0.03 | % | |||||||||||||||
| ^My Jewels, LLC dba The UPS Store #6712 | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/7/2025 | 56.3 | 30.9 | 28.3 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
43
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Food & Fuel Company LLC dba Lowery Food Mart | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/4/2040 | 122.5 | 118.9 | 126.7 | 0.05 | % | |||||||||||||||
| ^Blue Ox Trucking Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 12/4/2025 | 12.3 | 4.7 | 4.7 | — | % | |||||||||||||||
| ^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/4/2040 | 502.5 | 488.4 | 512.4 | 0.20 | % | |||||||||||||||
| ^American Campgrounds LLC dba Whit’s End Campground | Accommodation | Term Loan | Prime plus 2.75% | 12/4/2040 | 293.0 | 284.4 | 298.8 | 0.12 | % | |||||||||||||||
| ^Tariq, LLC dba 76 Food Mart | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/2/2040 | 375.0 | 363.9 | 382.2 | 0.15 | % | |||||||||||||||
| ^401 JJS, Corp and G. Randazzo's Trattoria Corporation | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/1/2040 | 52.7 | 51.5 | 53.5 | 0.02 | % | |||||||||||||||
| ^Delta Aggregate, LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 11/30/2025 | 100.0 | 90.8 | 92.6 | 0.04 | % | |||||||||||||||
| ^Block and Grinder LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2025 | 200.0 | 55.3 | 56.4 | 0.02 | % | |||||||||||||||
| ^Hurshell Leon Dutton dba High Jump Party Rentals | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 11/30/2025 | 17.6 | 15.2 | 15.4 | 0.01 | % | |||||||||||||||
| ^Japp Business Inc dba Pick and Eat and Japp Drink Corp. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2025 | 125.0 | 108.9 | 103.3 | 0.04 | % | |||||||||||||||
| ^Smokeyard Inc dba Smokeyard BBQ and Chop Shop | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2025 | 125.0 | 108.4 | 100.7 | 0.04 | % | |||||||||||||||
| ^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad | Electrical Equipment, Appliance, and Component Manufacturing | Term Loan | Prime plus 2.75% | 11/25/2025 | 22.5 | 19.5 | 17.9 | 0.01 | % | |||||||||||||||
| ^DWeb Studio, Inc. | Educational Services | Term Loan | Prime plus 2.75% | 11/25/2025 | 11.3 | 9.8 | 8.9 | — | % | |||||||||||||||
| ^State Painting and Decorating Co Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/25/2025 | 100.0 | 62.7 | 57.4 | 0.02 | % | |||||||||||||||
| ^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/23/2040 | 750.0 | 738.3 | 782.8 | 0.31 | % | |||||||||||||||
| ^Play and Learn Child Care and School Inc | Social Assistance | Term Loan | Prime plus 2.75% | 11/23/2025 | 11.1 | 9.6 | 9.8 | — | % | |||||||||||||||
| ^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 11/20/2025 | 89.0 | 78.2 | 72.6 | 0.03 | % | |||||||||||||||
| ^Haven Hospitality Group Inc. dba Haven Gastropub | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/20/2025 | 132.5 | 114.9 | 106.5 | 0.04 | % | |||||||||||||||
| ^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/20/2040 | 244.4 | 237.1 | 238.0 | 0.09 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
44
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^S.B.B. Enterprises Inc dba Williamston Hardware | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/19/2040 | 108.8 | 105.1 | 105.8 | 0.04 | % | |||||||||||||||
| ^Key Pix Productions Inc. dba Air Bud Entertainment | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 11/18/2040 | 839.8 | 813.6 | 867.0 | 0.34 | % | |||||||||||||||
| ^RDT Enterprises, L.L.C. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/12/2025 | 22.5 | 19.5 | 19.2 | 0.01 | % | |||||||||||||||
| ^E.S.F.P. LLC dba Volusia Van and Storage | Truck Transportation | Term Loan | Prime plus 2.75% | 11/11/2025 | 91.3 | 77.2 | 71.8 | 0.03 | % | |||||||||||||||
| ^Green Life Lawnscapes LLC dba Green Life Lawn Care | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/6/2025 | 127.3 | 110.3 | 111.1 | 0.04 | % | |||||||||||||||
| ^Jumbomarkets Inc dba Rines Jumbomarkets | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 11/4/2025 | 306.2 | 265.5 | 266.6 | 0.10 | % | |||||||||||||||
| ^Bisson Transportation Inc dba I & R Associates and Document Secutiry | Truck Transportation | Term Loan | Prime plus 2.75% | 10/30/2025 | 22.5 | 19.3 | 19.0 | 0.01 | % | |||||||||||||||
| ^L.M. Jury Enterprises, Inc dba Midwest Monograms | Textile Product Mills | Term Loan | Prime plus 2.75% | 10/28/2025 | 77.0 | 66.2 | 61.5 | 0.02 | % | |||||||||||||||
| ^Top Cat Ready Mix, LLC, Ples Investments LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 10/28/2025 | 711.3 | 611.6 | 574.7 | 0.22 | % | |||||||||||||||
| ^Financial Network Recovery | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/26/2025 | 40.0 | 34.4 | 31.5 | 0.01 | % | |||||||||||||||
| ^Windsor Direct Distribution LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 10/26/2025 | 14.2 | 12.3 | 11.2 | — | % | |||||||||||||||
| ^Tannehill Enterprises Inc dba Hobbytown USA Folsom | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 10/14/2025 | 87.4 | 75.1 | 68.8 | 0.03 | % | |||||||||||||||
| ^ADMO Inc dba Mid States Equipment | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 10/8/2025 | 22.5 | 19.3 | 18.0 | 0.01 | % | |||||||||||||||
| ^Recycling Consultants, Inc. and Prairie State Salvage and Recycling Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/30/2027 | 767.5 | 679.9 | 651.9 | 0.26 | % | |||||||||||||||
| ^Bat Bridge Investments Inc dba Kalologie 360 Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/30/2025 | 85.5 | 74.4 | 68.1 | 0.03 | % | |||||||||||||||
| ^Binky's Vapes LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/30/2025 | 22.5 | 19.2 | 17.6 | 0.01 | % | |||||||||||||||
| ^SCJEN Management Inc dba Bowl of Heaven | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2025 | 71.2 | 61.4 | 56.2 | 0.02 | % | |||||||||||||||
| ^Naeem Khan LTD | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2025 | 125.0 | 106.6 | 97.5 | 0.04 | % | |||||||||||||||
| ^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/30/2028 | 66.5 | 59.7 | 60.1 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
45
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 9/30/2040 | 143.0 | 138.1 | 146.9 | 0.06 | % | |||||||||||||||
| ^R.H. Hummer Jr., Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 9/30/2025 | 375.0 | 335.1 | 332.6 | 0.13 | % | |||||||||||||||
| ^Greensward of Marco Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/28/2040 | 87.5 | 84.5 | 87.5 | 0.03 | % | |||||||||||||||
| ^RIM Investments LLC and RIM Architects LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/28/2040 | 399.0 | 385.3 | 397.8 | 0.16 | % | |||||||||||||||
| ^The Grasso Companies LLC and Grasso Pavement Maintenance LLC | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/28/2025 | 518.7 | 438.2 | 446.2 | 0.17 | % | |||||||||||||||
| ^South Towne Dental Center, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/25/2025 | 50.0 | 42.7 | 43.5 | 0.02 | % | |||||||||||||||
| ^Sandlot Ventures LLC and Sandbox Ventures LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/25/2040 | 442.5 | 430.0 | 439.6 | 0.17 | % | |||||||||||||||
| ^Yachting Solutions LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/25/2040 | 962.5 | 929.5 | 949.4 | 0.37 | % | |||||||||||||||
| ^Prestigious LifeCare for Seniors LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/25/2025 | 9.8 | 8.4 | 8.1 | — | % | |||||||||||||||
| ^Daniel W. Stark dba Mountain Valley Lodge and RV Park | Accommodation | Term Loan | Prime plus 2.75% | 9/25/2040 | 13.5 | 13.0 | 13.9 | 0.01 | % | |||||||||||||||
| ^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/24/2025 | 21.0 | 18.0 | 18.3 | 0.01 | % | |||||||||||||||
| ^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn | Accommodation | Term Loan | Prime plus 2.75% | 9/24/2040 | 625.0 | 603.5 | 628.6 | 0.25 | % | |||||||||||||||
| ^Hagerstown Muffler, Inc. and JMS Muffler, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/24/2040 | 327.5 | 316.3 | 336.8 | 0.13 | % | |||||||||||||||
| ^Rutledge Enterprises Inc dba BLC Property Management | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/23/2040 | 62.5 | 59.9 | 62.4 | 0.02 | % | |||||||||||||||
| ^Finish Strong Inc dba FASTSIGNS St Peters | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 9/23/2025 | 50.0 | 42.7 | 39.0 | 0.02 | % | |||||||||||||||
| ^J3K LLC dba Ronan True Value Hardware | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/23/2025 | 152.5 | 130.1 | 119.0 | 0.05 | % | |||||||||||||||
| ^Nova Solutions Inc | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 9/22/2040 | 320.0 | 309.0 | 322.1 | 0.13 | % | |||||||||||||||
| ^Pine Belt Wood Products LLC | Forestry and Logging | Term Loan | Prime plus 2.75% | 9/22/2040 | 163.7 | 158.1 | 156.6 | 0.06 | % | |||||||||||||||
| ^IIoka Inc dba New Cloud Networks | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/21/2025 | 665.0 | 570.1 | 521.4 | 0.20 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
46
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| 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% | 9/21/2025 | 50.0 | 42.7 | 40.5 | 0.02 | % | |||||||||||||||
| ^MiJoy Inc dba Imo's Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/18/2025 | 8.2 | 7.0 | 6.4 | — | % | |||||||||||||||
| ^Vanderhoof LLC dba Soxfords | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 9/18/2025 | 15.9 | 13.6 | 12.4 | — | % | |||||||||||||||
| ^Naeem Khan LTD | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 9/17/2025 | 125.0 | 106.6 | 97.5 | 0.04 | % | |||||||||||||||
| ^Import Car Connection Inc dba Car Connection | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/16/2040 | 407.5 | 393.5 | 416.2 | 0.16 | % | |||||||||||||||
| ^FirstVitals Health and Wellness Inc | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/15/2025 | 150.0 | 128.0 | 117.0 | 0.05 | % | |||||||||||||||
| ^Almost Home Daycare LLC | Social Assistance | Term Loan | Prime plus 2.75% | 9/11/2025 | 62.5 | 53.7 | 54.5 | 0.02 | % | |||||||||||||||
| ^Veliu LLC dba FASTSIGNS #15901 | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 9/10/2025 | 50.0 | 43.2 | 40.3 | 0.02 | % | |||||||||||||||
| ^B and A Friction Materials Inc | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/9/2025 | 102.5 | 85.2 | 77.9 | 0.03 | % | |||||||||||||||
| ^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 9/8/2040 | 140.0 | 135.2 | 144.0 | 0.06 | % | |||||||||||||||
| ^AIG Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/4/2040 | 363.8 | 351.3 | 356.0 | 0.14 | % | |||||||||||||||
| ^Empower Autism Academy | Social Assistance | Term Loan | Prime plus 2.75% | 9/4/2040 | 685.0 | 661.5 | 704.4 | 0.28 | % | |||||||||||||||
| ^Higher Grounds Community Coffeehouse, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/2/2025 | 8.3 | 7.0 | 6.6 | — | % | |||||||||||||||
| ^Delray Scrap Recycling LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 8/31/2025 | 22.5 | 18.8 | 17.2 | 0.01 | % | |||||||||||||||
| ^The Camera House Inc | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 8/31/2025 | 1,250.0 | 1,057.8 | 1,022.6 | 0.40 | % | |||||||||||||||
| ^LAN Doctors Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/28/2025 | 81.2 | 68.8 | 66.1 | 0.03 | % | |||||||||||||||
| ^Elite Institute LLC dba Huntington Learning Center | Educational Services | Term Loan | Prime plus 2.75% | 8/28/2025 | 15.0 | 12.9 | 11.8 | — | % | |||||||||||||||
| ^J and K Fitness L.L.C. dba Physiques Womens Fitness Center | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2041 | 93.7 | 91.5 | 96.2 | 0.04 | % | |||||||||||||||
| ^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 8/28/2025 | 81.3 | 71.3 | 66.2 | 0.03 | % | |||||||||||||||
| ^B and J Catering Inc dba Culinary Solutions | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/27/2040 | 547.5 | 532.9 | 546.2 | 0.21 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
47
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^3000 CSI Property LLC and Consulting Solutions Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/20/2040 | 137.5 | 132.6 | 140.0 | 0.05 | % | |||||||||||||||
| ^God Be Glorified Inc dba GBG Inc | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 8/20/2025 | 53.0 | 44.9 | 41.0 | 0.02 | % | |||||||||||||||
| ^GDP Gourmet LLC dba Joe and John's Pizza Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/19/2040 | 145.0 | 139.8 | 145.0 | 0.06 | % | |||||||||||||||
| ^Gold Jet Corp. | Couriers and Messengers | Term Loan | Prime plus 2.75% | 8/14/2025 | 68.3 | 61.0 | 58.6 | 0.02 | % | |||||||||||||||
| ^SKJ Inc dba Subway | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/13/2025 | 84.8 | 71.7 | 66.2 | 0.03 | % | |||||||||||||||
| ^LP Industries Inc dba Childforms | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 7/29/2025 | 125.0 | 105.2 | 103.1 | 0.04 | % | |||||||||||||||
| ^Pauley Tree and Lawn Care Inc | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/28/2025 | 65.8 | 56.1 | 53.4 | 0.02 | % | |||||||||||||||
| ^Beale Street Blues Company-West Palm Beach LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 7/24/2025 | 66.3 | 55.6 | 52.2 | 0.02 | % | |||||||||||||||
| ^Forever & Always of Naples Inc dba Island Animal Hospital | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/24/2025 | 107.5 | 82.9 | 80.2 | 0.03 | % | |||||||||||||||
| ^Smart Artists Inc. | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 7/23/2025 | 22.5 | 18.9 | 17.3 | 0.01 | % | |||||||||||||||
| ^Pooh's Corner Realty LLC and Pooh's Corner Inc | Social Assistance | Term Loan | Prime plus 2.75% | 7/23/2040 | 103.8 | 100.3 | 106.4 | 0.04 | % | |||||||||||||||
| ^Free Ion Advisors LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/21/2025 | 64.3 | 53.9 | 49.3 | 0.02 | % | |||||||||||||||
| ^Murrayville Donuts, Inc dba Dunkin' Donuts | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 7/15/2040 | 344.5 | 335.4 | 343.5 | 0.13 | % | |||||||||||||||
| ^Union 2 LLC dba The Standard | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/10/2025 | 91.5 | 82.9 | 80.2 | 0.03 | % | |||||||||||||||
| ^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 | 204.2 | 212.6 | 0.08 | % | |||||||||||||||
| ^Jonathan E Nichols and Nichols Fire and Security LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/30/2025 | 75.0 | 62.4 | 61.9 | 0.02 | % | |||||||||||||||
| ^Thrifty Market, Inc. dba Thrifty Foods | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/30/2030 | 262.5 | 237.8 | 228.2 | 0.09 | % | |||||||||||||||
| ^Danny V, LLC dba Hugo's Taproom | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2040 | 54.0 | 45.7 | 46.1 | 0.02 | % | |||||||||||||||
| ^Anglin Cultured Stone Products LLC dba Anglin Construction | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/30/2025 | 281.7 | 234.5 | 221.3 | 0.09 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
48
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/29/2025 | 337.5 | 280.9 | 260.0 | 0.10 | % | |||||||||||||||
| ^Summit Beverage Group LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 8/29/2030 | 291.9 | 264.9 | 257.8 | 0.10 | % | |||||||||||||||
| ^Myclean Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/29/2025 | 15.9 | 13.2 | 12.1 | — | % | |||||||||||||||
| ^E & G Enterprises LLC dba Comfort Keepers | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/26/2025 | 22.5 | 18.7 | 17.2 | 0.01 | % | |||||||||||||||
| ^SofRep, Inc dba Force 12 Media | Other Information Services | Term Loan | Prime plus 2.75% | 6/26/2025 | 66.3 | 55.1 | 50.4 | 0.02 | % | |||||||||||||||
| ^TJU-DGT Inc dba The Lorenz Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/26/2029 | 20.6 | 18.5 | 19.1 | 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 | 365.1 | 378.2 | 0.15 | % | |||||||||||||||
| ^CEM Autobody LLC dba Dawn's Autobody | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/26/2040 | 135.5 | 130.2 | 133.9 | 0.05 | % | |||||||||||||||
| ^Wolf Enviro Interests, LLC and Enviromax Services Inc | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/25/2040 | 246.5 | 237.2 | 237.4 | 0.09 | % | |||||||||||||||
| ^Ohs Auto Body, Inc. dba Ohs Body Shop | Repair and Maintenance | Term Loan | 7.47% | 6/25/2040 | 1,207.5 | 1,172.3 | 1,204.2 | 0.47 | % | |||||||||||||||
| ^Evinger PA One, Inc. dba Postal Annex, Falcon | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 6/24/2025 | 22.5 | 18.7 | 17.9 | 0.01 | % | |||||||||||||||
| ^Amboy Group, LLC dba Tommy's Moloney's | Food Manufacturing | Term Loan | Prime plus 2.75% | 6/24/2025 | 454.0 | 387.4 | 394.2 | 0.15 | % | |||||||||||||||
| ^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/23/2040 | 551.7 | 530.1 | 564.2 | 0.22 | % | |||||||||||||||
| ^RJI Services, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/23/2025 | 22.5 | 18.6 | 17.0 | 0.01 | % | |||||||||||||||
| ^Real Help LLC dba Real Help Decorative Concrete | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/22/2025 | 53.1 | 44.2 | 44.7 | 0.02 | % | |||||||||||||||
| ^PM Cassidy Enterprises, Inc. dba Junk King | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 6/19/2025 | 14.9 | 12.4 | 11.3 | — | % | |||||||||||||||
| ^KRN Logistics, LLC and Newsome Trucking, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 6/19/2025 | 543.5 | 455.7 | 438.7 | 0.17 | % | |||||||||||||||
| ^Inverted Healthcare Staffing of Florida LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/18/2025 | 61.3 | 51.0 | 46.6 | 0.02 | % | |||||||||||||||
| ^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/17/2025 | 437.5 | 378.7 | 383.3 | 0.15 | % | |||||||||||||||
| ^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 | 83.4 | 88.1 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
49
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Nelson Sargsyan dba HDA Trucking | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 6/16/2025 | 130.5 | 108.6 | 99.2 | 0.04 | % | |||||||||||||||
| ^Mirage Plastering Inc and Mpire LLC and Mpire II LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/12/2040 | 338.8 | 133.3 | 130.4 | 0.05 | % | |||||||||||||||
| ^Bizzare Foods Inc dba Trooper Foods | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 6/12/2025 | 125.0 | 99.0 | 90.5 | 0.04 | % | |||||||||||||||
| ^Anturio Marketing Inc dba Logic Consulting | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/12/2040 | 290.2 | 278.9 | 296.8 | 0.12 | % | |||||||||||||||
| ^Eldredge Tavern LLC dba Gonyea's Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/8/2040 | 56.3 | 54.0 | 57.5 | 0.02 | % | |||||||||||||||
| ^Nicor LLC dba Fibrenew Sacramento | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/5/2022 | 13.8 | 10.1 | 9.2 | — | % | |||||||||||||||
| ^Chitalian Fratelli LLC dba Francesca Brick Oven Pizza and Pasta | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/5/2025 | 16.0 | 13.1 | 11.9 | — | % | |||||||||||||||
| ^ViAr Visual Communications, Inc. dba Fastsigns 281701 | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 6/5/2025 | 62.0 | 51.6 | 48.0 | 0.02 | % | |||||||||||||||
| ^Video Vault & Tanning LLC and Mosaic Salon LLC | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 6/4/2040 | 90.5 | 87.1 | 92.7 | 0.04 | % | |||||||||||||||
| ^Medworxs LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/3/2025 | 125.0 | 104.0 | 95.7 | 0.04 | % | |||||||||||||||
| ^XCESSIVE THROTTLE, INC dba Jake's Roadhouse | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/29/2025 | 8.2 | 6.8 | 6.2 | — | % | |||||||||||||||
| ^God is Good LLC dba BurgerFi | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/27/2025 | 67.2 | 11.7 | 11.9 | — | % | |||||||||||||||
| ^Villela CPA PL | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/27/2025 | 9.0 | 7.4 | 7.0 | — | % | |||||||||||||||
| ^Pen Tex Inc dba The UPS Store | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/20/2025 | 22.0 | 18.2 | 16.6 | 0.01 | % | |||||||||||||||
| ^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse | Accommodation | Term Loan | Prime plus 2.75% | 5/20/2040 | 174.1 | 167.0 | 175.2 | 0.07 | % | |||||||||||||||
| ^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/15/2025 | 717.2 | 594.5 | 553.0 | 0.22 | % | |||||||||||||||
| ^15 McArdle LLC and No Other Impressions Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/15/2040 | 257.1 | 246.6 | 250.3 | 0.10 | % | |||||||||||||||
| ^Guard Dogs MFS LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/8/2025 | 65.0 | 53.6 | 49.3 | 0.02 | % | |||||||||||||||
| ^George S Cochran DDS Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/7/2025 | 130.0 | 107.9 | 98.8 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
50
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^South Park Properties LLC and Midlothian Hardware LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/6/2040 | 170.5 | 162.4 | 172.9 | 0.07 | % | |||||||||||||||
| ^Matthew Taylor and Landon Farm LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/4/2040 | 100.0 | 96.6 | 95.1 | 0.04 | % | |||||||||||||||
| ^Cares Inc dba Dumpling Grounds Day Care Center | Social Assistance | Term Loan | Prime plus 2.75% | 5/1/2040 | 81.9 | 77.7 | 82.7 | 0.03 | % | |||||||||||||||
| ^Orchid Enterprises Inc dba Assisting Hands of Sussex County | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/24/2025 | 15.0 | 12.3 | 11.2 | — | % | |||||||||||||||
| ^Ragazza Restaurant Group, Inc. dba Bambolina | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/21/2025 | 22.5 | 18.2 | 17.2 | 0.01 | % | |||||||||||||||
| ^Diamond Solutions LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 4/21/2025 | 22.5 | 17.6 | 16.0 | 0.01 | % | |||||||||||||||
| ^Giacchino Maritime Consultants Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/17/2025 | 22.5 | 18.4 | 16.8 | 0.01 | % | |||||||||||||||
| ^Sound Coaching Inc | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 4/14/2025 | 44.4 | 36.3 | 33.2 | 0.01 | % | |||||||||||||||
| ^Faramarz Nikourazm dba Car Clinic Center | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/3/2040 | 73.8 | 70.4 | 72.9 | 0.03 | % | |||||||||||||||
| ^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 | 707.0 | 751.3 | 0.29 | % | |||||||||||||||
| ^T and B Boots Inc dba Takken's Shoes | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 3/31/2025 | 807.8 | 130.3 | 134.1 | 0.05 | % | |||||||||||||||
| ^HAVANA CENTRAL NJ1, LLC dba Havana Central | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2025 | 250.0 | 218.9 | 225.1 | 0.09 | % | |||||||||||||||
| ^Mid-South Lumber Co. of Northwest Florida, Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/31/2040 | 428.7 | 409.8 | 434.7 | 0.17 | % | |||||||||||||||
| ^Copper Beech Financial Group LLC | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 3/30/2025 | 125.0 | 101.4 | 102.4 | 0.04 | % | |||||||||||||||
| ^Delta Aggregate LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 3/30/2025 | 90.0 | 79.2 | 81.5 | 0.03 | % | |||||||||||||||
| ^Sunset Marine Resort LLC and GoXpeditions LLC and Lavon Gomes and Trac | Accommodation | Term Loan | Prime plus 2.75% | 3/27/2040 | 301.8 | 288.4 | 312.6 | 0.12 | % | |||||||||||||||
| ^Shorr Enterprises Inc dba New Design Furniture Manufacturers | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2025 | 106.5 | 86.4 | 87.6 | 0.03 | % | |||||||||||||||
| ^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC | Real Estate | Term Loan | Prime plus 2.75% | 3/27/2025 | 1,238.3 | 1,004.5 | 993.7 | 0.39 | % | |||||||||||||||
| ^Shellhorn and Hill Inc dba Total Fleet Service | Nonstore Retailers | Term Loan | Prime plus 2.75% | 3/27/2040 | 1,040.2 | 990.4 | 1,050.6 | 0.41 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
51
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Geo Los Angeles LLC dba Geo Film Group | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 3/26/2025 | 130.0 | 105.5 | 106.8 | 0.04 | % | |||||||||||||||
| ^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 | 51.6 | 55.8 | 0.02 | % | |||||||||||||||
| ^Zero-In Media Inc | Data Processing, Hosting, and Related Services | Term Loan | Prime plus 2.75% | 3/25/2025 | 22.5 | 18.3 | 18.1 | 0.01 | % | |||||||||||||||
| ^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 | 810.0 | 774.2 | 838.2 | 0.33 | % | |||||||||||||||
| ^Loriet LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/24/2025 | 12.0 | 9.7 | 9.6 | — | % | |||||||||||||||
| ^Shelton Incorporated dba Mrs. Winners | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/20/2040 | 112.5 | 107.5 | 116.5 | 0.05 | % | |||||||||||||||
| ^Jaymie Hazard dba Indigo Hair Studio and Day Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/20/2040 | 42.9 | 41.1 | 44.0 | 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 | 85.4 | 81.7 | 88.5 | 0.03 | % | |||||||||||||||
| ^MMS Realty, LLC and Molecular MS Diagnostics LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/18/2040 | 160.7 | 153.6 | 164.3 | 0.06 | % | |||||||||||||||
| ^Royal Crest Motors LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/16/2040 | 91.2 | 87.2 | 93.6 | 0.04 | % | |||||||||||||||
| ^BND Sebastian Limited Liability Company and Sebastian Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/16/2040 | 172.5 | 164.9 | 177.7 | 0.07 | % | |||||||||||||||
| ^Douglas Printy Motorsports, Inc. dba Blackburn Trike | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/9/2040 | 191.8 | 183.3 | 196.0 | 0.08 | % | |||||||||||||||
| ^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 | 9.1 | 9.4 | — | % | |||||||||||||||
| ^Baystate Firearms and Training, LLC | Educational Services | Term Loan | Prime plus 2.75% | 2/27/2025 | 63.4 | 50.8 | 50.4 | 0.02 | % | |||||||||||||||
| ^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 | 1,192.7 | 1,292.8 | 0.51 | % | |||||||||||||||
| ^Pace Motor Lines, Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 2/26/2025 | 66.2 | 53.1 | 54.7 | 0.02 | % | |||||||||||||||
| ^Nelson Financial Services LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/24/2025 | 12.4 | 10.0 | 9.9 | — | % | |||||||||||||||
| ^Kiddie Steps 4 You Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 2/19/2040 | 61.7 | 59.0 | 63.0 | 0.02 | % | |||||||||||||||
| ^Triangle Trash LLC dba Bin There Dump That | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 2/18/2025 | 74.4 | 59.7 | 60.2 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
52
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Silva Realty Holdings, LLC and MF-Silva Enterprises, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/31/2018 | 171.5 | 163.8 | 162.1 | 0.06 | % | |||||||||||||||
| ^740 Barry Street Realty LLC and Wild Edibles Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 2/10/2040 | 492.5 | 469.9 | 509.4 | 0.20 | % | |||||||||||||||
| ^Kostekos Inc dba New York Style Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/6/2040 | 66.2 | 63.3 | 67.9 | 0.03 | % | |||||||||||||||
| ^DuCharme Realty LLC and DuCharme Enterprises LLC | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 2/2/2040 | 225.1 | 214.8 | 228.8 | 0.09 | % | |||||||||||||||
| ^Dean 1021 LLC dba Pure Pita | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/29/2025 | 80.0 | 64.3 | 64.0 | 0.03 | % | |||||||||||||||
| ^Limameno LLC dba Sal's Italian Ristorante | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/23/2025 | 83.3 | 66.3 | 66.1 | 0.03 | % | |||||||||||||||
| ^Palmabak Inc dba Mami Nora's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/22/2025 | 21.5 | 13.3 | 13.7 | 0.01 | % | |||||||||||||||
| ^Jung Design Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 1/20/2022 | 8.4 | 5.7 | 5.6 | — | % | |||||||||||||||
| ^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 | 126.9 | 137.1 | 0.05 | % | |||||||||||||||
| ^Bear Creek Entertainment, LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 12/30/2024 | 106.3 | 86.2 | 88.6 | 0.03 | % | |||||||||||||||
| ^Evans and Paul LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/30/2024 | 223.7 | 176.7 | 180.8 | 0.07 | % | |||||||||||||||
| ^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/30/2039 | 245.5 | 234.8 | 249.5 | 0.10 | % | |||||||||||||||
| ^First Prevention and Dialysis Center, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/30/2024 | 273.3 | 228.1 | 232.2 | 0.09 | % | |||||||||||||||
| ^Bowlerama Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/24/2039 | 1,202.5 | 1,145.0 | 1,240.3 | 0.49 | % | |||||||||||||||
| ^The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/23/2039 | 530.3 | 504.1 | 534.8 | 0.21 | % | |||||||||||||||
| ^401 JJS Corporation and G. Randazzo Corporation | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/23/2039 | 473.5 | 454.9 | 490.3 | 0.19 | % | |||||||||||||||
| ^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 12/23/2039 | 500.0 | 475.4 | 515.0 | 0.20 | % | |||||||||||||||
| ^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 | 197.2 | 213.6 | 0.08 | % | |||||||||||||||
| ^Beale Street Blues Company-West Palm Beach, LLC dba Lafayette Music Hall | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 12/22/2024 | 187.5 | 148.1 | 148.3 | 0.06 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
53
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^MM and M Management Inc dba Pizza Artista | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/19/2025 | 46.3 | 37.6 | 37.4 | 0.01 | % | |||||||||||||||
| ^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 | 987.5 | 978.5 | 0.38 | % | |||||||||||||||
| ^B.S. Ventures LLC dba Dink's Market | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/19/2039 | 53.8 | 51.1 | 55.4 | 0.02 | % | |||||||||||||||
| ^B & W Towing, LLC and Boychucks Fuel LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/17/2039 | 164.5 | 156.7 | 167.2 | 0.07 | % | |||||||||||||||
| ^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 | 315.8 | 317.0 | 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 | 131.6 | 139.9 | 0.05 | % | |||||||||||||||
| ^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 | 43.2 | 43.2 | 0.02 | % | |||||||||||||||
| ^Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/25/2039 | 148.7 | 141.7 | 151.5 | 0.06 | % | |||||||||||||||
| ^DeRidder Chiropractic LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/25/2024 | 13.2 | 10.3 | 10.6 | — | % | |||||||||||||||
| ^Modern Manhattan LLC | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 11/25/2024 | 220.0 | 172.1 | 170.8 | 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 | 32.9 | 32.5 | 0.01 | % | |||||||||||||||
| ^J&D Resources, LLC dba Aqua Science | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/21/2024 | 767.9 | 594.9 | 591.1 | 0.23 | % | |||||||||||||||
| ^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 | 113.8 | 122.6 | 0.05 | % | |||||||||||||||
| ^MLM Enterprises LLC and Demand Printing Solutions Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/18/2024 | 70.5 | 55.2 | 56.0 | 0.02 | % | |||||||||||||||
| ^JEJE Realty LLC and La Familia Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/10/2039 | 205.8 | 172.3 | 185.0 | 0.07 | % | |||||||||||||||
| ^Joey O's LLC and Jennifer Olszewski | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/7/2024 | 13.1 | 0.7 | 0.7 | — | % | |||||||||||||||
| ^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 | 453.8 | 488.4 | 0.19 | % | |||||||||||||||
| ^Golden Transaction Corporation dba Bleh Sunoco | Gasoline Stations | Term Loan | Prime plus 2.75% | 10/30/2039 | 156.7 | 148.4 | 160.2 | 0.06 | % | |||||||||||||||
| ^Seelan Inc dba Candleridge Market | Gasoline Stations | Term Loan | Prime plus 2.75% | 10/27/2039 | 90.5 | 85.7 | 91.7 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
54
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^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 | 84.5 | 89.8 | 0.04 | % | |||||||||||||||
| ^One Hour Jewelry Repair Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/14/2024 | 20.6 | 15.9 | 15.7 | 0.01 | % | |||||||||||||||
| ^DNT Storage and Properties LLC | Real Estate | Term Loan | Prime plus 2.75% | 10/10/2039 | 101.7 | 96.4 | 104.1 | 0.04 | % | |||||||||||||||
| ^Sound Manufacturing Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 10/10/2024 | 187.5 | 145.3 | 145.4 | 0.06 | % | |||||||||||||||
| ^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 | 1,198.8 | 1,298.6 | 0.51 | % | |||||||||||||||
| ^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 | 56.8 | 61.1 | 0.02 | % | |||||||||||||||
| ^Doctors Express Management of Central Texas LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 10/8/2024 | 105.0 | 72.0 | 73.6 | 0.03 | % | |||||||||||||||
| ^Michael Rey Jr. and Lynn J. Williams and GIG Petcare | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 10/3/2039 | 126.9 | 117.7 | 126.9 | 0.05 | % | |||||||||||||||
| ^Sumad LLC dba BrightStar Care of Encinitas | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/2/2024 | 92.5 | 41.2 | 42.3 | 0.02 | % | |||||||||||||||
| ^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 | 241.8 | 258.0 | 0.10 | % | |||||||||||||||
| ^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 | 94.6 | 102.3 | 0.04 | % | |||||||||||||||
| ^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 | 308.9 | 334.4 | 0.13 | % | |||||||||||||||
| ^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC | Accommodation | Term Loan | Prime plus 2.75% | 9/29/2039 | 513.3 | 489.6 | 530.0 | 0.21 | % | |||||||||||||||
| ^Keys Phase One LLC dba The Grand Guesthouse | Accommodation | Term Loan | Prime plus 2.75% | 9/26/2039 | 736.2 | 696.2 | 749.8 | 0.29 | % | |||||||||||||||
| ^Gordon E Rogers dba Stonehouse Motor Inn | Accommodation | Term Loan | Prime plus 2.75% | 9/26/2039 | 57.5 | 54.4 | 58.9 | 0.02 | % | |||||||||||||||
| ^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 | 17.3 | 17.2 | 0.01 | % | |||||||||||||||
| ^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 | 432.6 | 457.1 | 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 | 159.2 | 150.7 | 162.2 | 0.06 | % | |||||||||||||||
| ^R A Johnson Inc dba Rick Johnson Auto and Tire | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/23/2039 | 301.2 | 284.9 | 308.4 | 0.12 | % | |||||||||||||||
| ^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 | 37.7 | 25.6 | 25.3 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
55
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/17/2039 | 145.5 | 137.8 | 149.2 | 0.06 | % | |||||||||||||||
| ^Modern Leather Goods Repair Shop Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/17/2024 | 58.8 | 44.6 | 44.1 | 0.02 | % | |||||||||||||||
| ^RDT Enterprises LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/15/2027 | 162.7 | 136.9 | 141.8 | 0.06 | % | |||||||||||||||
| ^Tavern Properties LLC and Wildwood Tavern LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/15/2039 | 425.0 | 404.5 | 435.0 | 0.17 | % | |||||||||||||||
| ^Animal Intrusion Prevention Systems Holding Company, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/15/2024 | 272.5 | 211.9 | 212.5 | 0.08 | % | |||||||||||||||
| ^KW Zion, LLC and Key West Gallery Inc | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/12/2039 | 1,250.0 | 1,182.1 | 1,272.7 | 0.50 | % | |||||||||||||||
| ^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 | 484.0 | 478.5 | 0.19 | % | |||||||||||||||
| ^B&P Diners LLC dba Engine House Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/10/2024 | 80.0 | 61.4 | 60.6 | 0.02 | % | |||||||||||||||
| ^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 | 39.9 | 39.6 | 0.02 | % | |||||||||||||||
| ^Delta Aggregate LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 8/28/2039 | 911.2 | 859.0 | 929.9 | 0.36 | % | |||||||||||||||
| ^Lamjam LLC (EPC) Goldsmith Lambros Inc | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 8/27/2024 | 133.8 | 102.7 | 105.5 | 0.04 | % | |||||||||||||||
| ^Orange County Cleaning Inc | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/27/2024 | 41.2 | 24.3 | 24.0 | 0.01 | % | |||||||||||||||
| ^Qycell Corporation | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 8/26/2024 | 121.0 | 92.0 | 92.7 | 0.04 | % | |||||||||||||||
| ^Atlas Auto Body Inc dba Atlas Auto Sales | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/22/2039 | 51.6 | 48.7 | 52.0 | 0.02 | % | |||||||||||||||
| ^Katie Senior Care LLC dba Home Instead Senior Care | Social Assistance | Term Loan | Prime plus 2.75% | 8/15/2024 | 124.3 | 94.5 | 93.3 | 0.04 | % | |||||||||||||||
| ^Alpha Preparatory Academy LLC | Social Assistance | Term Loan | Prime plus 2.75% | 8/15/2039 | 145.2 | 137.6 | 149.0 | 0.06 | % | |||||||||||||||
| ^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/15/2039 | 433.5 | 388.3 | 420.3 | 0.16 | % | |||||||||||||||
| ^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook | Motor Vehicle and Parts Dealers | Term Loan | 6% | 8/8/2039 | 188.4 | 177.0 | 191.6 | 0.07 | % | |||||||||||||||
| ^Almost Home Property LLC and Almost Home Daycare LLC | Social Assistance | Term Loan | Prime plus 2.75% | 8/7/2039 | 715.8 | 677.8 | 731.8 | 0.29 | % | |||||||||||||||
| ^AGV Enterprises LLC dba Jet's Pizza #42 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/31/2024 | 54.8 | 41.3 | 41.0 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
56
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^iFood, Inc. dba Steak N Shake | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/31/2024 | 379.1 | 296.7 | 298.8 | 0.12 | % | |||||||||||||||
| ^575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/30/2039 | 22.5 | 20.6 | 22.3 | 0.01 | % | |||||||||||||||
| ^Honeyspot Investors LLP and Pace Motor Lines Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 7/24/2039 | 150.0 | 141.3 | 152.9 | 0.06 | % | |||||||||||||||
| ^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/17/2039 | 100.0 | 96.3 | 103.4 | 0.04 | % | |||||||||||||||
| ^AMG Holding, LLC and Stetson Automotive, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/30/2039 | 208.0 | 195.6 | 211.6 | 0.08 | % | |||||||||||||||
| ^Highway Striping Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 6/30/2024 | 53.1 | 39.6 | 39.6 | 0.02 | % | |||||||||||||||
| ^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/30/2024 | 100.0 | 74.5 | 76.5 | 0.03 | % | |||||||||||||||
| ^iFood, Inc. dba Steak N Shake | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2039 | 629.8 | 594.0 | 628.4 | 0.25 | % | |||||||||||||||
| ^Honeyspot Investors LLP and Pace Motor Lines Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 6/30/2039 | 875.3 | 824.3 | 891.5 | 0.35 | % | |||||||||||||||
| ^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/27/2039 | 321.8 | 302.7 | 324.9 | 0.13 | % | |||||||||||||||
| ^Zinger Hardware and General Merchant Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/26/2024 | 110.5 | 82.4 | 83.5 | 0.03 | % | |||||||||||||||
| ^JPM Investments LLC and Carolina Family Foot Care P.A. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/26/2039 | 136.1 | 132.6 | 142.6 | 0.06 | % | |||||||||||||||
| ^Nikobella Properties LLC and JPO Inc dba Village Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/25/2039 | 476.3 | 449.3 | 482.8 | 0.19 | % | |||||||||||||||
| ^Big Sky Plaza LLC and Strickland, Incorporated dba Livingston True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/20/2039 | 233.4 | 219.5 | 235.6 | 0.09 | % | |||||||||||||||
| ^510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/19/2024 | 332.0 | 256.2 | 262.9 | 0.10 | % | |||||||||||||||
| ^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn | Accommodation | Term Loan | Prime plus 2.75% | 6/17/2039 | 920.3 | 865.5 | 936.2 | 0.37 | % | |||||||||||||||
| ^Hotels of North Georgia LLC dba Comfort Inn and Suites | Accommodation | Term Loan | Prime plus 2.75% | 6/17/2039 | 837.5 | 787.6 | 852.0 | 0.33 | % | |||||||||||||||
| ^Global Educational Delivery Services LLC | Educational Services | Term Loan | Prime plus 2.75% | 6/16/2024 | 60.0 | 45.3 | 46.5 | 0.02 | % | |||||||||||||||
| ^Rainbow Dry Cleaners | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/13/2024 | 122.5 | 91.4 | 91.5 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
57
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^NVR Corporation dba Discount Food Mart | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/11/2039 | 68.3 | 62.1 | 67.2 | 0.03 | % | |||||||||||||||
| ^Sico & Walsh Insurance Agency Inc and The AMS Trust | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 6/6/2039 | 250.0 | 88.4 | 95.6 | 0.04 | % | |||||||||||||||
| ^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/3/2024 | 22.5 | 16.8 | 16.7 | 0.01 | % | |||||||||||||||
| ^Long Island Barber + Beauty LLC | Educational Services | Term Loan | Prime plus 2.75% | 6/2/2039 | 55.5 | 52.2 | 55.9 | 0.02 | % | |||||||||||||||
| ^CJR LLC and PowerWash Plus, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/30/2024 | 53.0 | 39.1 | 39.9 | 0.02 | % | |||||||||||||||
| ^Pocono Coated Products, LLC | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/30/2024 | 22.5 | 16.6 | 17.0 | 0.01 | % | |||||||||||||||
| ^Wilton Dental Care P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/29/2024 | 128.1 | 96.5 | 95.5 | 0.04 | % | |||||||||||||||
| ^EGM Food Services Inc dba Gold Star Chili | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/29/2024 | 19.2 | 14.2 | 14.2 | 0.01 | % | |||||||||||||||
| ^R. A. Johnson, Inc. dba Rick Johnson Auto & Tire | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 5/29/2039 | 943.8 | 522.0 | 564.6 | 0.22 | % | |||||||||||||||
| ^Jonesboro Health Food Center LLC | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 5/27/2024 | 60.0 | 44.3 | 43.8 | 0.02 | % | |||||||||||||||
| ^Bay State Funeral Services, LLC and Riley Funeral Home Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/21/2039 | 134.9 | 127.0 | 137.4 | 0.05 | % | |||||||||||||||
| ^Hae M. and Jin S. Park dba Buford Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/15/2039 | 166.5 | 155.6 | 166.0 | 0.06 | % | |||||||||||||||
| ^Moochie's LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/13/2024 | 100.5 | 75.1 | 74.6 | 0.03 | % | |||||||||||||||
| ^The River Beas LLC and Punam Singh | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/8/2039 | 90.3 | 85.3 | 91.5 | 0.04 | % | |||||||||||||||
| ^AS Boyals LLC dba Towne Liquors | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 4/29/2039 | 117.5 | 102.0 | 110.4 | 0.04 | % | |||||||||||||||
| ^Complete Body & Paint, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/23/2039 | 20.8 | 19.5 | 21.1 | 0.01 | % | |||||||||||||||
| ^Gerami Realty, LC Sherrill Universal City Corral, LP | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/23/2027 | 78.7 | 64.0 | 66.5 | 0.03 | % | |||||||||||||||
| ^Island Wide Realty LLC and Long Island Partners, Inc. | Real Estate | Term Loan | Prime plus 2.75% | 4/22/2039 | 103.8 | 97.3 | 105.3 | 0.04 | % | |||||||||||||||
| ^Wilshire Media Systems Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 4/17/2024 | 186.2 | 136.2 | 135.5 | 0.05 | % | |||||||||||||||
| ^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/9/2039 | 137.5 | 127.9 | 137.7 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
58
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Little People's Village II LLC and Iliopoulos Realty LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/31/2039 | 92.1 | 86.7 | 93.9 | 0.04 | % | |||||||||||||||
| ^Dantanna's Tavern LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2024 | 164.3 | 121.2 | 124.0 | 0.05 | % | |||||||||||||||
| ^Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 3/31/2039 | 449.0 | 419.9 | 456.5 | 0.18 | % | |||||||||||||||
| ^RDT Enterprises, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/31/2028 | 141.2 | 119.0 | 125.0 | 0.05 | % | |||||||||||||||
| ^Little People's Village II LLC and Iliopoulos Realty LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/31/2039 | 101.5 | 95.6 | 103.5 | 0.04 | % | |||||||||||||||
| ^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 3/31/2024 | 750.0 | 542.5 | 556.8 | 0.22 | % | |||||||||||||||
| ^Kemmer, LLC and Pitts Package Store, Inc. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/31/2039 | 117.5 | 110.1 | 118.8 | 0.05 | % | |||||||||||||||
| ^Lake Area Autosound LLC and Ryan H. Whittington | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 7/28/2039 | 125.0 | 118.6 | 128.9 | 0.05 | % | |||||||||||||||
| ^Wilban LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/28/2039 | 427.5 | 402.7 | 437.5 | 0.17 | % | |||||||||||||||
| ^Hascher Gabelstapler Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/26/2024 | 143.2 | 107.7 | 110.6 | 0.04 | % | |||||||||||||||
| ^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox | Social Assistance | Term Loan | Prime plus 2.75% | 3/21/2039 | 145.0 | 135.8 | 147.2 | 0.06 | % | |||||||||||||||
| ^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 3/20/2039 | 497.5 | 74.9 | 81.5 | 0.03 | % | |||||||||||||||
| ^Cormac Enterprises and Wyoming Valley Beverage Incorporated | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/20/2039 | 110.8 | 103.7 | 113.0 | 0.04 | % | |||||||||||||||
| ^Kinisi, Inc. dba The River North UPS Store | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/18/2024 | 41.3 | 21.5 | 22.1 | 0.01 | % | |||||||||||||||
| ^SE Properties 39 Old Route 146, LLC SmartEarly Clifton Park LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/14/2039 | 408.0 | 382.7 | 416.7 | 0.16 | % | |||||||||||||||
| ^Tortilla King Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/14/2039 | 216.9 | 203.7 | 220.5 | 0.09 | % | |||||||||||||||
| ^Tortilla King, Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/14/2029 | 1,033.1 | 888.4 | 929.4 | 0.36 | % | |||||||||||||||
| ^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/13/2039 | 223.5 | 209.0 | 227.6 | 0.09 | % | |||||||||||||||
| ^Avayaan2 LLC dba Island Cove | Gasoline Stations | Term Loan | Prime plus 2.75% | 3/7/2039 | 157.5 | 147.3 | 160.0 | 0.06 | % | |||||||||||||||
| ^Onofrio's Fresh Cut Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/6/2024 | 75.0 | 54.2 | 55.8 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
59
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/28/2039 | 417.5 | 389.8 | 423.1 | 0.17 | % | |||||||||||||||
| ^Summit Beverage Group LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 2/28/2024 | 350.6 | 251.0 | 257.5 | 0.10 | % | |||||||||||||||
| ^Faith Memorial Chapel LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/28/2039 | 214.2 | 200.3 | 217.1 | 0.08 | % | |||||||||||||||
| ^952 Boston Post Road Realty, LLC and HNA LLC dba Styles International | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/28/2039 | 211.0 | 197.0 | 213.6 | 0.08 | % | |||||||||||||||
| ^Choe Trade Group Inc dba Rapid Printers of Monterey | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 2/28/2024 | 159.3 | 114.0 | 117.5 | 0.05 | % | |||||||||||||||
| ^96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/12/2039 | 141.2 | 132.4 | 144.2 | 0.06 | % | |||||||||||||||
| ^JWB Industries, Inc. dba Carteret Die Casting | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 2/11/2024 | 280.0 | 200.4 | 204.4 | 0.08 | % | |||||||||||||||
| ^Awesome Pets II Inc dba Mellisa's Pet Depot | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 2/7/2024 | 83.2 | 60.3 | 61.5 | 0.02 | % | |||||||||||||||
| ^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/7/2039 | 99.1 | 92.9 | 100.9 | 0.04 | % | |||||||||||||||
| ^Sarah Sibadan dba Sibadan Agency | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 1/27/2039 | 129.4 | 120.5 | 131.1 | 0.05 | % | |||||||||||||||
| ^JDR Industries Inc dba CST-The Composites Store, JetCat USA | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 1/21/2024 | 140.3 | 99.3 | 101.6 | 0.04 | % | |||||||||||||||
| ^Icore Enterprises Inc dba Air Flow Filters Inc | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 1/15/2024 | 21.8 | 15.4 | 15.9 | 0.01 | % | |||||||||||||||
| ^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2027 | 712.5 | 587.9 | 614.6 | 0.24 | % | |||||||||||||||
| ^Nutmeg North Associates LLC; Steeltech Building Products Inc | Construction of Buildings | Term Loan | Prime plus 2.75% | 12/31/2038 | 897.8 | 853.3 | 924.3 | 0.36 | % | |||||||||||||||
| ^Shane M. Howell and Buck Hardware and Garden Center, LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 12/27/2038 | 322.5 | 300.4 | 325.2 | 0.13 | % | |||||||||||||||
| ^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/27/2023 | 656.2 | 481.1 | 495.0 | 0.19 | % | |||||||||||||||
| ^KK International Trading Corporation | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/23/2028 | 190.0 | 158.1 | 165.7 | 0.06 | % | |||||||||||||||
| ^Kurtis Sniezek dba Wolfe's Foreign Auto | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/20/2038 | 88.9 | 82.6 | 89.9 | 0.04 | % | |||||||||||||||
| ^Mosley Auto Group LLC dba America's Automotive | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/20/2038 | 221.5 | 206.0 | 223.9 | 0.09 | % | |||||||||||||||
| ^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/19/2038 | 555.2 | 516.3 | 559.6 | 0.22 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
60
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Lefont Theaters Inc. | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 12/19/2023 | 14.4 | 10.1 | 10.3 | — | % | |||||||||||||||
| ^TAK Properties LLC and Kinderland Inc | Social Assistance | Term Loan | Prime plus 2.75% | 12/18/2038 | 405.0 | 377.1 | 409.0 | 0.16 | % | |||||||||||||||
| ^TOL LLC dba Wild Birds Unlimited | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 12/13/2023 | 18.0 | 13.0 | 13.3 | 0.01 | % | |||||||||||||||
| ^920 CHR Realty LLC and V. Garofalo Carting Inc | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 12/10/2038 | 418.1 | 388.8 | 423.0 | 0.17 | % | |||||||||||||||
| ^DKB Transport Corp | Truck Transportation | Term Loan | Prime plus 2.75% | 12/5/2038 | 138.8 | 129.0 | 140.4 | 0.05 | % | |||||||||||||||
| ^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/3/2038 | 104.2 | 96.9 | 104.7 | 0.04 | % | |||||||||||||||
| ^Spectrum Development LLC and Solvit Inc & Solvit North, Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/2/2023 | 387.3 | 276.2 | 282.5 | 0.11 | % | |||||||||||||||
| ^BVIP Limousine Service LTD | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 11/27/2038 | 76.5 | 71.0 | 77.1 | 0.03 | % | |||||||||||||||
| ^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 11/27/2023 | 67.2 | 46.6 | 47.4 | 0.02 | % | |||||||||||||||
| ^Wallace Holdings LLC and GFA International Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.5% | 11/25/2023 | 125.0 | 86.3 | 87.2 | 0.03 | % | |||||||||||||||
| ^AcuCall LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/21/2023 | 15.8 | 10.9 | 11.0 | — | % | |||||||||||||||
| ^Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/18/2023 | 45.0 | 31.8 | 32.4 | 0.01 | % | |||||||||||||||
| ^Yousef Khatib dba Y&M Enterprises | Wholesale Electronic Markets and Agents and Brokers | Term Loan | Prime plus 2.75% | 11/15/2023 | 75.0 | 52.0 | 52.9 | 0.02 | % | |||||||||||||||
| ^Howell Gun Works LLC | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 11/14/2023 | 8.3 | 4.6 | 4.7 | — | % | |||||||||||||||
| ^Polpo Realty, LLC and Polpo Restaurant, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/6/2038 | 62.5 | 57.8 | 62.9 | 0.02 | % | |||||||||||||||
| ^Twinsburg Hospitality Group LLC dba Comfort Suites | Accommodation | Term Loan | Prime plus 2.75% | 10/31/2038 | 945.0 | 878.8 | 952.4 | 0.37 | % | |||||||||||||||
| ^Mid-Land Sheet Metal Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 10/31/2038 | 137.5 | 127.6 | 138.6 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
61
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Master CNC Inc & Master Properties LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/31/2038 | 596.6 | 552.6 | 597.6 | 0.23 | % | |||||||||||||||
| ^Janice B. McShan and The Metropolitan Day School, LLC | Social Assistance | Term Loan | Prime plus 2.75% | 10/31/2023 | 42.7 | 30.1 | 31.0 | 0.01 | % | |||||||||||||||
| ^1 North Restaurant Corp dba 1 North Steakhouse | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 10/31/2038 | 212.5 | 196.8 | 213.9 | 0.08 | % | |||||||||||||||
| ^New Image Building Services Inc. dba New Image Repair Services | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/29/2023 | 331.2 | 227.0 | 231.5 | 0.09 | % | |||||||||||||||
| ^Greenbrier Technical Services, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/24/2023 | 240.1 | 150.0 | 154.3 | 0.06 | % | |||||||||||||||
| ^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 10/24/2038 | 246.3 | 228.1 | 247.0 | 0.10 | % | |||||||||||||||
| ^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/18/2023 | 87.5 | 60.0 | 61.2 | 0.02 | % | |||||||||||||||
| ^First Steps Real Estate Company, LLC and First Steps Preschool | Social Assistance | Term Loan | Prime plus 2.75% | 9/30/2038 | 97.6 | 90.2 | 97.5 | 0.04 | % | |||||||||||||||
| ^Lenoir Business Partners LLC (EPC) LP Industries, Inc dba Childforms | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2038 | 322.7 | 273.2 | 296.6 | 0.12 | % | |||||||||||||||
| ^Top Properties LLC and LP Industries, Inc dba Childforms | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2038 | 120.0 | 111.4 | 121.1 | 0.05 | % | |||||||||||||||
| ^Onofrios Enterprises LLC and Onofrios Fresh Cut, Inc | Food Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2038 | 312.5 | 289.9 | 314.6 | 0.12 | % | |||||||||||||||
| ^Discount Wheel and Tire | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/30/2038 | 223.8 | 206.7 | 223.9 | 0.09 | % | |||||||||||||||
| ^Cencon Properties LLC and Central Connecticut Warehousing Company, Inc | Warehousing and Storage | Term Loan | Prime plus 2.75% | 9/30/2038 | 344.5 | 318.7 | 346.5 | 0.14 | % | |||||||||||||||
| ^Gabrielle Realty, LLC | Gasoline Stations | Term Loan | Prime plus 2.75% | 9/27/2038 | 757.6 | 699.8 | 757.9 | 0.30 | % | |||||||||||||||
| ^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/27/2038 | 335.1 | 309.5 | 335.6 | 0.13 | % | |||||||||||||||
| ^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Home | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/26/2038 | 100.0 | 92.4 | 100.4 | 0.04 | % | |||||||||||||||
| ^Eastside Soccer Dome, Inc . | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/26/2038 | 463.7 | 428.3 | 465.7 | 0.18 | % | |||||||||||||||
| ^HJ & Edward Enterprises, LLC dba Sky Zone | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/26/2023 | 262.5 | 183.7 | 188.3 | 0.07 | % | |||||||||||||||
| ^Southeast Chicago Soccer, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/26/2038 | 51.3 | 47.3 | 51.5 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
62
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Kiddie Steps 4 You Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 9/25/2038 | 89.2 | 83.5 | 90.3 | 0.04 | % | |||||||||||||||
| ^Diamond Memorials Incorporated | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/25/2023 | 14.2 | 8.5 | 8.6 | — | % | |||||||||||||||
| ^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta | Educational Services | Term Loan | Prime plus 2.75% | 9/20/2023 | 46.2 | 31.5 | 32.1 | 0.01 | % | |||||||||||||||
| ^Faith Memorial Chapel LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/20/2038 | 268.4 | 248.3 | 269.2 | 0.11 | % | |||||||||||||||
| ^Westville Seafood LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/19/2038 | 112.3 | 103.7 | 112.4 | 0.04 | % | |||||||||||||||
| ^Maynard Enterprises Inc dba Fastsigns of Texarkana | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/18/2023 | 16.0 | 11.0 | 11.2 | — | % | |||||||||||||||
| ^Grafio Inc dba Omega Learning Center-Acworth | Educational Services | Term Loan | Prime plus 2.75% | 9/13/2023 | 156.2 | 112.4 | 114.5 | 0.04 | % | |||||||||||||||
| ^Sound Manufacturing Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/12/2028 | 54.8 | 44.9 | 46.8 | 0.02 | % | |||||||||||||||
| ^The Berlerro Group, LLC dba Sky Zone | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/12/2023 | 421.3 | 295.0 | 300.3 | 0.12 | % | |||||||||||||||
| ^Prospect Kids Academy Inc | Educational Services | Term Loan | Prime plus 2.75% | 9/11/2038 | 124.3 | 114.8 | 124.6 | 0.05 | % | |||||||||||||||
| ^Alma J. and William R. Walton (EPC) and Almas Child Day Care Center | Social Assistance | Term Loan | Prime plus 2.75% | 9/11/2038 | 39.5 | 36.5 | 39.7 | 0.02 | % | |||||||||||||||
| ^B for Brunette dba Blo | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/10/2023 | 53.4 | 36.6 | 37.2 | 0.01 | % | |||||||||||||||
| ^Schmaltz Holdings, LLC and Schmaltz Operations, LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/4/2038 | 224.2 | 205.8 | 223.0 | 0.09 | % | |||||||||||||||
| ^Excel RP Inc | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 8/30/2023 | 130.2 | 87.3 | 89.7 | 0.04 | % | |||||||||||||||
| ^IlOKA Inc dba Microtech Tel and NewCloud Networks | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/30/2023 | 687.5 | 460.7 | 470.0 | 0.18 | % | |||||||||||||||
| ^ACI Northwest Inc. | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 8/30/2023 | 906.3 | 410.9 | 422.2 | 0.17 | % | |||||||||||||||
| ^Gulfport Academy Child Care and Learning Center, Inc. and Jennifer Sis | Social Assistance | Term Loan | Prime plus 2.75% | 8/30/2023 | 43.3 | 29.0 | 29.8 | 0.01 | % | |||||||||||||||
| ^Ramard Inc and Advanced Health Sciences Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 8/28/2023 | 187.5 | 125.7 | 127.4 | 0.05 | % | |||||||||||||||
| ^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins | Nonstore Retailers | Term Loan | Prime plus 2.75% | 8/26/2023 | 85.8 | 54.3 | 55.8 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
63
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^JSIL LLC dba Blackstones Hairdressing | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 8/16/2023 | 19.5 | 12.9 | 13.1 | 0.01 | % | |||||||||||||||
| ^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 8/14/2038 | 445.0 | 320.9 | 347.1 | 0.14 | % | |||||||||||||||
| ^Caribbean Concepts, Inc. dba Quick Bleach | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 8/12/2023 | 22.5 | 15.1 | 15.4 | 0.01 | % | |||||||||||||||
| ^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/26/2038 | 190.0 | 174.8 | 189.3 | 0.07 | % | |||||||||||||||
| ^Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/24/2023 | 11.2 | 7.7 | 7.9 | — | % | |||||||||||||||
| ^Angkor Restaurant Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/19/2038 | 93.0 | 85.7 | 93.1 | 0.04 | % | |||||||||||||||
| ^Harbor Ventilation Inc and Estes Investment, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/19/2038 | 92.1 | 3.8 | 4.1 | — | % | |||||||||||||||
| ^Tri County Heating and Cooling Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/19/2023 | 87.8 | 58.1 | 59.7 | 0.02 | % | |||||||||||||||
| ^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 7/17/2023 | 53.7 | 35.6 | 36.1 | 0.01 | % | |||||||||||||||
| ^Maxiflex LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 6/28/2023 | 153.5 | 100.0 | 102.7 | 0.04 | % | |||||||||||||||
| ^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/28/2038 | 97.5 | 89.5 | 97.2 | 0.04 | % | |||||||||||||||
| ^JRA Holdings LLC (EPC) Jasper County Cleaners Inc dba Superior Cleaner | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/28/2038 | 121.0 | 109.6 | 119.1 | 0.05 | % | |||||||||||||||
| ^2161 Highway 6 Trail, LLC and R. H. Hummer JR., Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 6/19/2026 | 1,250.0 | 722.4 | 751.3 | 0.29 | % | |||||||||||||||
| ^Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 6/18/2028 | 875.0 | 705.0 | 739.2 | 0.29 | % | |||||||||||||||
| ^KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 6/14/2023 | 343.8 | 225.0 | 228.4 | 0.09 | % | |||||||||||||||
| ^Elite Structures Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 6/12/2038 | 932.8 | 835.3 | 907.4 | 0.35 | % | |||||||||||||||
| ^Willowbrook Properties LLC Grove Gardens Landscaping Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/5/2038 | 186.3 | 171.1 | 185.5 | 0.07 | % | |||||||||||||||
| ^Absolute Desire LLC and Mark H. Szierer Sophisticated Smile | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/5/2038 | 188.3 | 173.0 | 186.9 | 0.07 | % | |||||||||||||||
| ^RXSB, Inc dba Medicine Shoppe | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 5/30/2023 | 186.3 | 120.5 | 122.1 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
64
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/28/2023 | 63.5 | 41.6 | 42.5 | 0.02 | % | |||||||||||||||
| ^Ryan D. Thornton and Thornton & Associates LLC | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 5/24/2023 | 68.7 | 32.2 | 32.6 | 0.01 | % | |||||||||||||||
| ^PowerWash Plus, Inc. and CJR, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/30/2038 | 550.0 | 503.8 | 545.2 | 0.21 | % | |||||||||||||||
| ^Peanut Butter & Co., Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 4/30/2023 | 100.0 | 63.5 | 64.4 | 0.03 | % | |||||||||||||||
| ^Brothers International Desserts | Food Manufacturing | Term Loan | Prime plus 2.75% | 4/26/2023 | 230.0 | 146.9 | 150.2 | 0.06 | % | |||||||||||||||
| ^Kidrose, LLC dba Kidville Riverdale | Educational Services | Term Loan | Prime plus 2.75% | 4/22/2023 | 78.7 | 50.9 | 51.9 | 0.02 | % | |||||||||||||||
| ^1258 Hartford TPKE, LLC and Phelps and Sons, Inc | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 3/29/2038 | 124.6 | 113.7 | 123.8 | 0.05 | % | |||||||||||||||
| ^Capital Scrap Metal, LLC and Powerline Investment, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/29/2038 | 500.0 | 434.7 | 474.2 | 0.19 | % | |||||||||||||||
| ^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/29/2038 | 336.0 | 307.2 | 334.1 | 0.13 | % | |||||||||||||||
| ^Neyra Industries, Inc. and Edward Neyra | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2023 | 217.5 | 137.2 | 140.9 | 0.06 | % | |||||||||||||||
| ^A & M Commerce, Inc. dba Cranberry Sunoco | Gasoline Stations | Term Loan | Prime plus 2.75% | 3/27/2038 | 330.3 | 301.3 | 328.4 | 0.13 | % | |||||||||||||||
| ^Xela Pack, Inc. and Aliseo and Catherine Gentile | Paper Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2028 | 271.8 | 215.4 | 226.5 | 0.09 | % | |||||||||||||||
| ^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/25/2038 | 537.4 | 490.6 | 534.2 | 0.21 | % | |||||||||||||||
| ^Michael A.and HeatherR. Welsch dba Art & FrameEtc. | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 3/22/2038 | 67.5 | 61.6 | 67.1 | 0.03 | % | |||||||||||||||
| ^M & H Pine Straw Inc and Harris L. Maloy | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/21/2023 | 288.7 | 198.8 | 204.1 | 0.08 | % | |||||||||||||||
| ^Truth Technologies Inc dba Truth Technologies Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/21/2023 | 79.5 | 50.1 | 51.3 | 0.02 | % | |||||||||||||||
| ^J. Kinderman & Sons Inc., dba BriteStar Inc. | Electrical Equipment, Appliance, and Component Manufacturing | Term Loan | Prime plus 2.75% | 3/20/2023 | 181.2 | 116.7 | 119.9 | 0.05 | % | |||||||||||||||
| ^Stellar Environmental LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 3/18/2023 | 56.3 | 35.5 | 36.5 | 0.01 | % | |||||||||||||||
| ^Sound Manufacturing, Inc. and Monster Power Equipment Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 3/15/2023 | 523.0 | 328.5 | 336.9 | 0.13 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
65
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Golden Gate Lodging LLC | Accommodation | Term Loan | Prime plus 2.75% | 3/12/2038 | 115.0 | 105.0 | 114.4 | 0.04 | % | |||||||||||||||
| ^Bakhtar Group LLC dba Malmaison | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2023 | 103.8 | 65.2 | 66.6 | 0.03 | % | |||||||||||||||
| ^River Club Golf Course Inc dba The River Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2038 | 475.2 | 432.8 | 471.5 | 0.18 | % | |||||||||||||||
| ^Osceola River Mill, LLC and Ironman Machine, Inc. | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 2/20/2038 | 86.2 | 78.6 | 85.6 | 0.03 | % | |||||||||||||||
| ^Java Warung, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/19/2038 | 51.0 | 46.5 | 50.7 | 0.02 | % | |||||||||||||||
| ^Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 2/15/2038 | 106.2 | 96.8 | 105.5 | 0.04 | % | |||||||||||||||
| ^Outcome Driven Innovation, Inc. dba ODI | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 2/12/2023 | 84.9 | 52.2 | 53.3 | 0.02 | % | |||||||||||||||
| ^Knits R Us, Inc. dba NYC Sports / Mingle | Textile Mills | Term Loan | Prime plus 2.75% | 2/11/2038 | 125.0 | 114.0 | 124.4 | 0.05 | % | |||||||||||||||
| ^North Country Transport, LLC | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 2/6/2023 | 15.0 | 9.3 | 9.6 | — | % | |||||||||||||||
| ^MJD Investments, LLC dba The Community Day School | Social Assistance | Term Loan | Prime plus 2.75% | 1/31/2038 | 258.2 | 234.8 | 255.7 | 0.10 | % | |||||||||||||||
| ^Sherill Universal City dba Golden Corral | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/28/2038 | 440.5 | 402.0 | 437.8 | 0.17 | % | |||||||||||||||
| ^Macho LLC Madelaine Chocolate Novelties Inc | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/31/2037 | 500.0 | 455.9 | 497.0 | 0.19 | % | |||||||||||||||
| ^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/31/2022 | 97.5 | 59.2 | 60.5 | 0.02 | % | |||||||||||||||
| ^Babie Bunnie Enterprises Inc dba Triangle Mothercare | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/28/2027 | 46.3 | 32.8 | 34.2 | 0.01 | % | |||||||||||||||
| ^John Duffy Fuel Co., Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/28/2022 | 513.8 | 312.2 | 320.4 | 0.13 | % | |||||||||||||||
| ^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/27/2037 | 517.5 | 470.2 | 512.6 | 0.20 | % | |||||||||||||||
| ^Martin L Hopp, MD PHD A Medical Cor dba Tower ENT | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/21/2022 | 66.3 | 40.0 | 40.9 | 0.02 | % | |||||||||||||||
| ^Ezzo Properties, LLC and Great Lakes Cleaning, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/20/2027 | 389.6 | 303.6 | 317.4 | 0.12 | % | |||||||||||||||
| ^United Woodworking, Inc | Wood Product Manufacturing | Term Loan | 6% | 12/20/2022 | 17.2 | 11.1 | 11.4 | — | % | |||||||||||||||
| ^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 12/20/2022 | 225.0 | 136.1 | 139.4 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
66
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/30/2037 | 286.5 | 262.0 | 285.4 | 0.11 | % | |||||||||||||||
| ^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 11/28/2037 | 223.8 | 204.2 | 222.6 | 0.09 | % | |||||||||||||||
| ^D&L Rescources, Inc. dba The UPS Store | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 11/27/2022 | 9.8 | 5.8 | 6.0 | — | % | |||||||||||||||
| ^Richmond Hill Mini Market, LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 11/27/2037 | 185.3 | 167.8 | 182.7 | 0.07 | % | |||||||||||||||
| ^DRV Enterprise, Inc. dba Cici's Pizza # 339 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/26/2022 | 65.0 | 36.2 | 37.2 | 0.01 | % | |||||||||||||||
| ^U & A Food and Fuel, Inc. dba Express Gas & Food Mart | Gasoline Stations | Term Loan | Prime plus 2.75% | 11/21/2037 | 96.2 | 87.1 | 95.0 | 0.04 | % | |||||||||||||||
| ^Pioneer Windows Manufacturing Corp, Pioneer Windows | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 11/21/2022 | 275.0 | 164.2 | 168.1 | 0.07 | % | |||||||||||||||
| ^R & J Petroleum LLC Manar USA, Inc. | Gasoline Stations | Term Loan | Prime plus 2.75% | 11/20/2037 | 180.0 | 162.9 | 177.5 | 0.07 | % | |||||||||||||||
| ^St Judes Physical Therapy P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/19/2022 | 21.0 | 12.6 | 12.9 | 0.01 | % | |||||||||||||||
| ^Hi-Def Imaging, Inc. dba SpeedPro Imaging | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/9/2022 | 22.2 | 13.3 | 13.6 | 0.01 | % | |||||||||||||||
| ^Reidville Hydraulics Mfg Inc dba Summit | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 11/2/2037 | 265.9 | 240.7 | 261.5 | 0.10 | % | |||||||||||||||
| ^Big Apple Entertainment Partners, LLC dba Ripley's Believe It or Not | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 10/26/2022 | 180.0 | 108.9 | 111.1 | 0.04 | % | |||||||||||||||
| ^LA Diner Inc dba Loukas L A Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/28/2037 | 677.5 | 618.7 | 673.8 | 0.26 | % | |||||||||||||||
| ^University Park Retreat, LLC dba Massage Heights | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/27/2022 | 76.0 | 44.2 | 45.3 | 0.02 | % | |||||||||||||||
| ^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/26/2037 | 183.8 | 166.9 | 181.5 | 0.07 | % | |||||||||||||||
| ^LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/21/2037 | 252.3 | 227.3 | 247.2 | 0.10 | % | |||||||||||||||
| ^O'Rourkes Diner LLC dba O'Rourke's Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/19/2037 | 65.5 | 59.0 | 64.1 | 0.03 | % | |||||||||||||||
| ^AJK Enterprise LLC dba AJK Enterprise LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 8/27/2022 | 16.5 | 9.4 | 9.7 | — | % | |||||||||||||||
| ^New Image Building Services, Inc. dba New Image Repair Services | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/23/2037 | 285.7 | 257.0 | 278.9 | 0.11 | % | |||||||||||||||
| ^Suncoast Aluminum Furniture, Inc | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 8/17/2037 | 360.0 | 323.9 | 352.8 | 0.14 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
67
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Georgia Safe Sidewalks LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/27/2022 | 15.0 | 8.4 | 8.6 | — | % | |||||||||||||||
| ^Hofgard & Co., Inc. dba HofgardBenefits | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 7/27/2022 | 107.2 | 60.7 | 62.1 | 0.02 | % | |||||||||||||||
| ^Central Tire, Inc. dba Cooper Tire & Auto Services | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/29/2037 | 288.5 | 258.1 | 280.4 | 0.11 | % | |||||||||||||||
| ^WPI, LLC | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 6/29/2024 | 129.5 | 84.8 | 87.5 | 0.03 | % | |||||||||||||||
| ^Havana Central (NY) 5, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/29/2022 | 1,166.8 | 736.2 | 753.5 | 0.29 | % | |||||||||||||||
| ^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/27/2037 | 69.7 | 62.4 | 67.8 | 0.03 | % | |||||||||||||||
| ^KIND-ER-ZZ Inc dba Kidville | Educational Services | Term Loan | Prime plus 2.75% | 6/15/2022 | 50.0 | 27.6 | 28.1 | 0.01 | % | |||||||||||||||
| ^Graphish Studio, Inc. and Scott Fishoff | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/14/2022 | 20.2 | 11.3 | 11.5 | — | % | |||||||||||||||
| ^ALF, LLC (EPC) Mulit-Service Eagle Tires | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 5/31/2037 | 62.9 | 56.2 | 61.1 | 0.02 | % | |||||||||||||||
| ^Craig R Freehauf dba Lincoln Theatre | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 5/31/2022 | 47.9 | 19.4 | 19.9 | 0.01 | % | |||||||||||||||
| ^Lefont Theaters, Inc. | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 5/30/2022 | 137.0 | 75.3 | 77.0 | 0.03 | % | |||||||||||||||
| ^Christou Real Estate Holdings LLC dba Tops American Grill | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/17/2037 | 284.0 | 253.2 | 275.5 | 0.11 | % | |||||||||||||||
| ^Tracey Vita-Morris dba Tracey Vita's School of Dance | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 5/10/2022 | 22.5 | 12.4 | 12.6 | — | % | |||||||||||||||
| ^Bisson Transportation, Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 5/7/2037 | 588.1 | 550.0 | 597.0 | 0.23 | % | |||||||||||||||
| ^Bisson Moving & Storage Company Bisson Transportation Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 5/7/2022 | 528.7 | 331.6 | 339.3 | 0.13 | % | |||||||||||||||
| ^Fair Deal Food Mart Inc dba Neighbors Market | Gasoline Stations | Term Loan | Prime plus 2.75% | 5/3/2037 | 381.3 | 340.3 | 370.3 | 0.14 | % | |||||||||||||||
| ^Tanner Optical, Inc. dba Murphy Eye Care | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/27/2022 | 8.2 | 4.4 | 4.5 | — | % | |||||||||||||||
| ^Zane Filippone Co Inc dba Culligan Water Conditioning | Nonstore Retailers | Term Loan | Prime plus 2.75% | 4/12/2022 | 558.2 | 302.4 | 309.3 | 0.12 | % | |||||||||||||||
| ^Indoor Playgrounds Limited Liability Company dba Kidville | Educational Services | Term Loan | Prime plus 2.75% | 4/5/2022 | 19.5 | 5.8 | 6.0 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
68
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Access Staffing, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/30/2022 | 187.5 | 99.9 | 101.9 | 0.04 | % | |||||||||||||||
| ^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/30/2031 | 231.5 | 189.5 | 201.9 | 0.08 | % | |||||||||||||||
| ^Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/29/2037 | 755.4 | 674.1 | 734.2 | 0.29 | % | |||||||||||||||
| ^DC Realty, LLC dba FOGO Data Centers | Professional, Scientific, and Technical Services | Term Loan | 6% | 3/23/2037 | 3,133.8 | 2,623.4 | 2,857.6 | 1.12 | % | |||||||||||||||
| ^DC Realty, LLC dba FOGO Data Centers | Professional, Scientific, and Technical Services | Term Loan | 6.25% | 3/23/2022 | 1,540.0 | 771.7 | 789.6 | 0.31 | % | |||||||||||||||
| ^Manuel P. Barrera and Accura Electrical Contractor, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/23/2028 | 103.7 | 78.9 | 82.8 | 0.03 | % | |||||||||||||||
| ^Shweiki Media, Inc. dba Study Breaks Magazine | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 3/22/2027 | 1,178.8 | 868.8 | 908.9 | 0.36 | % | |||||||||||||||
| ^ATI Jet, Inc. | Air Transportation | Term Loan | Prime plus 2.75% | 12/28/2026 | 852.8 | 604.2 | 631.8 | 0.25 | % | |||||||||||||||
| ^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 12/22/2036 | 495.0 | 443.5 | 482.7 | 0.19 | % | |||||||||||||||
| ^K's Salon, LLC d/b/a K's Salon | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/20/2021 | 73.6 | 37.4 | 38.0 | 0.01 | % | |||||||||||||||
| ^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 12/16/2021 | 250.0 | 125.1 | 127.7 | 0.05 | % | |||||||||||||||
| ^M & H Pinestraw, Inc. and Harris L. Maloy | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/15/2021 | 238.2 | 135.5 | 138.3 | 0.05 | % | |||||||||||||||
| ^Taylor Transport, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 12/8/2021 | 515.5 | 157.7 | 161.2 | 0.06 | % | |||||||||||||||
| ^MRM Supermarkets, Inc. dba Constantin's Breads | Food Manufacturing | Term Loan | Prime plus 2.75% | 11/10/2021 | 137.5 | 68.5 | 70.0 | 0.03 | % | |||||||||||||||
| ^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 10/26/2021 | 58.7 | 29.2 | 29.8 | 0.01 | % | |||||||||||||||
| ^28 Cornelia Street Properties, LLC and Zouk, Ltd. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 10/25/2021 | 22.5 | 11.0 | 11.2 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
69
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^39581 Garfield, LLC and Tri County Neurological Associates, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/30/2036 | 83.3 | 72.9 | 79.2 | 0.03 | % | |||||||||||||||
| ^PTK, Incorporated dba Night N Day 24 HR Convenience Store | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/30/2036 | 137.5 | 120.5 | 131.0 | 0.05 | % | |||||||||||||||
| ^Robert E. Caves, Sr. and American Plank dba Caves Enterprises | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/30/2021 | 302.5 | 145.3 | 148.3 | 0.06 | % | |||||||||||||||
| ^39581 Garfield, LLC and Tricounty Neurological Associates, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/30/2036 | 28.4 | 24.8 | 26.9 | 0.01 | % | |||||||||||||||
| ^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/28/2021 | 1,070.0 | 507.7 | 516.6 | 0.20 | % | |||||||||||||||
| ^Equity National Capital LLC & Chadbourne Road Capital, LLC | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 9/26/2021 | 62.5 | 30.1 | 30.7 | 0.01 | % | |||||||||||||||
| ^Bryan Bantry Inc. | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 9/8/2021 | 400.0 | 40.3 | 41.0 | 0.02 | % | |||||||||||||||
| ^Michael S. Decker & Janet Decker dba The Hen House Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/30/2036 | 16.4 | 14.3 | 15.5 | 0.01 | % | |||||||||||||||
| ^Qycell Corporation | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 8/19/2021 | 187.5 | 83.7 | 85.3 | 0.03 | % | |||||||||||||||
| ^Trademark Equipment Company Inc and David A. Daniel | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/19/2036 | 133.6 | 116.8 | 126.9 | 0.05 | % | |||||||||||||||
| ^Valiev Ballet Academy, Inc | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 8/12/2036 | 91.5 | 37.1 | 40.3 | 0.02 | % | |||||||||||||||
| ^A & A Auto Care, LLC dba A & A Auto Care, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/12/2036 | 101.0 | 89.0 | 96.8 | 0.04 | % | |||||||||||||||
| ^LaHoBa, LLC dba Papa John's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/3/2036 | 77.5 | 67.3 | 73.2 | 0.03 | % | |||||||||||||||
| ^Kelly Chon LLC dba Shi-Golf | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 7/29/2021 | 17.5 | 4.7 | 4.8 | — | % | |||||||||||||||
| ^MTV Bowl, Inc. dba Legend Lanes | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/30/2036 | 248.5 | 218.4 | 237.0 | 0.09 | % | |||||||||||||||
| ^Lavertue Properties LLP dba Lavertue Properties | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 6/29/2036 | 44.7 | 39.1 | 42.5 | 0.02 | % | |||||||||||||||
| ^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/29/2036 | 338.1 | 305.9 | 332.2 | 0.13 | % | |||||||||||||||
| ^Pierce Developments, Inc. dba Southside Granite | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/13/2036 | 256.1 | 222.7 | 241.5 | 0.09 | % | |||||||||||||||
| ^Major Queens Body & Fender Corp | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/10/2021 | 28.6 | 13.0 | 13.2 | 0.01 | % | |||||||||||||||
| ^J&K Fitness, LLC dba Physiques Womens Fitness Center | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/8/2036 | 449.3 | 401.0 | 435.4 | 0.17 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
70
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Peanut Butter & Co., Inc. d/b/a Peanut Butter & Co. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 6/3/2021 | 65.5 | 28.5 | 29.0 | 0.01 | % | |||||||||||||||
| ^Demand Printing Solutions, Inc. and MLM Enterprises, LLC | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/27/2021 | 16.5 | 7.3 | 7.5 | — | % | |||||||||||||||
| ^Modern on the Mile, LLC dba Ligne Roset | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 5/25/2021 | 212.5 | 93.5 | 95.1 | 0.04 | % | |||||||||||||||
| ^Profile Performance, Inc. and Eidak Real Estate, L.L.C. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/20/2036 | 127.5 | 110.3 | 119.9 | 0.05 | % | |||||||||||||||
| ^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store | Nonstore Retailers | Term Loan | Prime plus 2.75% | 4/18/2036 | 129.5 | 114.1 | 124.0 | 0.05 | % | |||||||||||||||
| ^Michael S. Korfe dba North Valley Auto Repair | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/24/2036 | 15.5 | 13.4 | 14.5 | 0.01 | % | |||||||||||||||
| ^Actknowledge,Inc dba Actknowledge | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/21/2021 | 57.3 | 24.5 | 25.0 | 0.01 | % | |||||||||||||||
| ^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/10/2021 | 153.0 | 65.6 | 66.8 | 0.03 | % | |||||||||||||||
| ^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/25/2023 | 63.0 | 32.5 | 33.5 | 0.01 | % | |||||||||||||||
| ^SuzyQue’s LLC dba Suzy Que’s | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/11/2036 | 61.0 | 52.7 | 57.3 | 0.02 | % | |||||||||||||||
| ^Little People’s Village, LLC dba Little People’s Village | Social Assistance | Term Loan | Prime plus 2.75% | 1/31/2036 | 31.1 | 26.7 | 29.0 | 0.01 | % | |||||||||||||||
| ^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc. | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 1/28/2036 | 113.4 | 97.4 | 105.9 | 0.04 | % | |||||||||||||||
| ^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/29/2020 | 7.6 | 2.9 | 3.0 | — | % | |||||||||||||||
| Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown | Support Activities for Transportation | Term Loan | 5.25% | 12/28/2035 | 145.9 | 131.7 | 143.0 | 0.06 | % | |||||||||||||||
| Groundworks Unlimited LLC | Specialty Trade Contractors | Term Loan | 6% | 12/17/2023 | 120.0 | 74.1 | 76.6 | 0.03 | % | |||||||||||||||
| ^Shree OM Lodging, LLC dba Royal Inn | Accommodation | Term Loan | Prime plus 2.75% | 12/17/2035 | 27.7 | 23.7 | 25.8 | 0.01 | % | |||||||||||||||
| ^Lodin Medical Imaging, LLC dba Watson Imaging Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/1/2020 | 66.4 | 26.2 | 26.6 | 0.01 | % | |||||||||||||||
| ^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/30/2035 | 34.0 | 29.1 | 31.6 | 0.01 | % | |||||||||||||||
| ^West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/12/2035 | 148.7 | 127.2 | 138.1 | 0.05 | % | |||||||||||||||
| ^Lincoln Park Physical Therapy | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 10/20/2020 | 43.5 | 14.2 | 14.5 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
71
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^K9 Bytes, Inc & Epazz, Inc | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 9/30/2020 | 18.5 | 7.0 | 7.1 | — | % | |||||||||||||||
| ^Elan Realty, LLC and Albert Basse Asociates, Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 9/30/2035 | 228.2 | 194.1 | 210.6 | 0.08 | % | |||||||||||||||
| ^Success Express,Inc. dba Success Express | Couriers and Messengers | Term Loan | Prime plus 2.75% | 9/29/2020 | 91.8 | 33.6 | 34.1 | 0.01 | % | |||||||||||||||
| ^Modern Manhattan, LLC | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 9/20/2020 | 204.0 | 76.2 | 77.4 | 0.03 | % | |||||||||||||||
| ^Dirk's Trucking, L.L.C. dba Dirk's Trucking | Truck Transportation | Term Loan | Prime plus 2.75% | 9/17/2020 | 17.7 | 6.4 | 6.5 | — | % | |||||||||||||||
| ^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/2/2035 | 50.1 | 42.5 | 46.1 | 0.02 | % | |||||||||||||||
| ^Newsome Trucking Inc and Kevin Newsome | Truck Transportation | Term Loan | Prime plus 2.75% | 9/2/2035 | 423.1 | 206.1 | 223.6 | 0.09 | % | |||||||||||||||
| ^California College of Communications, Inc. | Educational Services | Term Loan | Prime plus 2.75% | 11/2/2020 | 172.5 | 66.0 | 67.1 | 0.03 | % | |||||||||||||||
| ^DDLK Investments LLC dba Smoothie King | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/30/2020 | 7.5 | 1.7 | 1.7 | — | % | |||||||||||||||
| ^Members Only Software | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/30/2020 | 40.2 | 14.3 | 14.5 | 0.01 | % | |||||||||||||||
| ^ActKnowledge,Inc dba ActKnowledge | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/30/2020 | 50.0 | 17.3 | 17.6 | 0.01 | % | |||||||||||||||
| ^I-90 RV & Auto Supercenter | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 6/29/2035 | 74.9 | 63.1 | 68.5 | 0.03 | % | |||||||||||||||
| ^Zouk, Ltd. dba Palma | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/25/2020 | 27.5 | 9.9 | 10.1 | — | % | |||||||||||||||
| ^CJ Park Inc. dba Kidville Midtown West | Educational Services | Term Loan | Prime plus 2.75% | 6/25/2020 | 26.4 | 7.2 | 7.3 | — | % | |||||||||||||||
| ^Tanner Optical Inc. dba Murphy Eye Care | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/22/2035 | 94.6 | 80.2 | 86.9 | 0.03 | % | |||||||||||||||
| ^M & H Pine Straw, Inc.and Harris Maloy | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 7/10/2020 | 67.5 | 28.2 | 28.6 | 0.01 | % | |||||||||||||||
| ^Excel RP, Inc./Kevin and Joann Foley | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 7/8/2028 | 50.0 | 36.2 | 38.2 | 0.01 | % | |||||||||||||||
| ValleyStar, Inc. dba BrightStar HealthCare | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/28/2020 | 6.1 | 2.1 | 2.1 | — | % | |||||||||||||||
| ^ValleyStar, Inc. dba BrightStar Healthcare | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/28/2020 | 7.5 | 2.6 | 2.6 | — | % | |||||||||||||||
| ^Diag, LLC dba Kidville | Educational Services | Term Loan | Prime plus 2.75% | 6/21/2020 | 37.5 | 12.5 | 12.7 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
72
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^M & H Pine Straw, Inc and Harris L. Maloy | Support Activities for Agriculture and Forestry | Term Loan | 6% | 4/30/2020 | 183.3 | 57.0 | 57.9 | 0.02 | % | |||||||||||||||
| ^New Economic Methods LLC dba Rita's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/15/2020 | 24.8 | 0.6 | 0.6 | — | % | |||||||||||||||
| ^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/26/2020 | 6.3 | 2.0 | 2.0 | — | % | |||||||||||||||
| ^Lahoba,LLC dba Papa John's Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/30/2034 | 42.5 | 35.4 | 38.3 | 0.01 | % | |||||||||||||||
| ^Animal Intrusion Prevention Systems Holding Company, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/29/2024 | 126.5 | 26.6 | 27.5 | 0.01 | % | |||||||||||||||
| ^David A. Nusblatt, D.M.D, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/11/2019 | 9.0 | 2.5 | 2.6 | — | % | |||||||||||||||
| ^CMA Consulting dba Construction Management Associates | Construction of Buildings | Term Loan | Prime plus 2.75% | 12/11/2019 | 58.5 | 14.9 | 15.1 | 0.01 | % | |||||||||||||||
| ^KMC RE, LLC & B&B Kennels | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/19/2034 | 58.3 | 48.4 | 52.4 | 0.02 | % | |||||||||||||||
| ^Demand Printing Solutions, Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 12/12/2019 | 10.0 | 2.8 | 2.8 | — | % | |||||||||||||||
| ^Demand Printing Solutions, Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 10/29/2034 | 147.5 | 122.0 | 132.1 | 0.05 | % | |||||||||||||||
| Rover Repairs | Repair and Maintenance | Term Loan | Prime plus 2.5% | 11/28/2029 | 72.5 | 52.1 | 37.8 | 0.01 | % | |||||||||||||||
| ^Supreme Screw Products | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 4/17/2019 | 308.2 | 60.8 | 61.3 | 0.02 | % | |||||||||||||||
| ^Gray Tree Service, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/18/2018 | 50.0 | 7.4 | 7.5 | — | % | |||||||||||||||
| ^Gourmet to You, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2019 | 12.1 | 2.4 | 2.4 | — | % | |||||||||||||||
| ^The Alba Financial Group, Inc. | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | 6% | 1/10/2019 | 22.5 | 10.2 | 10.3 | — | % | |||||||||||||||
| ^Grapevine Professional Services, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 1/22/2019 | 8.2 | 1.3 | 1.3 | — | % | |||||||||||||||
| ^Inflate World Corporation | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/30/2018 | 7.5 | 0.7 | 0.8 | — | % | |||||||||||||||
| ^Peter Thomas Roth Labs LL | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/26/2018 | 425.0 | 54.5 | 54.8 | 0.02 | % | |||||||||||||||
| ^CBA D&A Pope, LLC dba Christian Brothers Automotive | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/14/2018 | 144.9 | 15.5 | 15.6 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
73
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Gilbert Chiropractic Clinic, Inc. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/7/2018 | 22.5 | 0.5 | 0.5 | — | % | |||||||||||||||
| ^D & D's Divine Beauty School of Esther, LLC | Educational Services | Term Loan | 6% | 8/1/2031 | 57.7 | 49.6 | 53.0 | 0.02 | % | |||||||||||||||
| Bwms Management, LLC | Food Services and Drinking Places | Term Loan | —% | 3/1/2018 | 5.1 | 0.2 | 0.2 | — | % | |||||||||||||||
| Bliss Coffee and Wine Bar, LLC | Food Services and Drinking Places | Term Loan | 6% | 8/31/2019 | 87.5 | 68.6 | 69.4 | 0.03 | % | |||||||||||||||
| ^Zog Inc. | Other Information Services | Term Loan | 6% | 3/17/2018 | 97.5 | 52.0 | 52.2 | 0.02 | % | |||||||||||||||
| ^Saan M.Saelee dba Saelee's Delivery Service | Truck Transportation | Term Loan | Prime plus 2.75% | 3/12/2018 | 9.8 | 0.7 | 0.7 | — | % | |||||||||||||||
| Integrity Sports Group, LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | 6% | 3/6/2018 | 75.0 | 30.9 | 31.0 | 0.01 | % | |||||||||||||||
| ^Enewhere Custom Canvas, LLC | Textile Product Mills | Term Loan | Prime plus 2.75% | 2/15/2018 | 12.0 | 0.8 | 0.8 | — | % | |||||||||||||||
| ^A & A Acquisition, Inc. dba A & A International | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 2/15/2018 | 100.0 | 4.3 | 4.3 | — | % | |||||||||||||||
| ^All American Printing | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 10/26/2032 | 69.7 | 36.5 | 39.3 | 0.02 | % | |||||||||||||||
| ^Seo's Paradise Cleaners, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 1/19/2018 | 9.7 | 0.2 | 0.2 | — | % | |||||||||||||||
| Connect Litigation Technology, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2% | 10/18/2025 | 150.6 | 25.8 | 18.4 | 0.01 | % | |||||||||||||||
| ^Margab, Inc. dba Smoothie King | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/28/2017 | 44.0 | 1.4 | 1.4 | — | % | |||||||||||||||
| ^RCB Enterprises, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/18/2017 | 21.1 | 0.9 | 0.9 | — | % | |||||||||||||||
| ^Tammy's Bakery, Inc. dba Tammy's Bakery | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/10/2017 | 71.8 | 3.1 | 3.1 | — | % | |||||||||||||||
| ^Kings Laundry,LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 10/30/2017 | 64.5 | 0.7 | 0.7 | — | % | |||||||||||||||
| ^1911 East Main Street Holdings, Corp | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/18/2032 | 15.8 | 12.0 | 12.9 | 0.01 | % | |||||||||||||||
| ^Water Works Laundromat, LLC | Personal and Laundry Services | Term Loan | Prime plus 2.25% | 9/7/2027 | 267.3 | 173.3 | 178.1 | 0.07 | % | |||||||||||||||
| ^Dave Kris, and MDK Ram Corp. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/5/2026 | 52.6 | 30.2 | 31.6 | 0.01 | % | |||||||||||||||
| ^Gill Express Inc. dba American Eagle Truck Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 1/5/2027 | 286.9 | 177.3 | 186.0 | 0.07 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
74
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Smooth Grounds, Inc. | Food Services and Drinking Places | Term Loan | 7.75% | 12/31/2018 | 64.5 | 28.3 | 28.5 | 0.01 | % | |||||||||||||||
| ^Fran-Car Corporation dba Horizon Landscape Management | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/3/2028 | 244.7 | 65.7 | 69.2 | 0.03 | % | |||||||||||||||
| ^Head To Toe Personalized Pampering, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 1/27/2031 | 12.0 | 8.7 | 9.3 | — | % | |||||||||||||||
| ^Christopher F. Bohon & Pamela D. Bohon | Social Assistance | Term Loan | Prime plus 2.75% | 10/28/2026 | 5.1 | 3.1 | 3.2 | — | % | |||||||||||||||
| Mogas Limited | Gasoline Stations | Term Loan | Prime plus 2.75% | 5/31/2030 | 100.0 | 70.7 | 54.0 | 0.02 | % | |||||||||||||||
| ^Shree Om Lodging, LLC dba Royal Inn | Accommodation | Term Loan | Prime plus 2.75% | 5/2/2030 | 76.9 | 62.4 | 66.3 | 0.03 | % | |||||||||||||||
| ^Pedzik's Pets, LLC | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 3/31/2030 | 12.3 | 8.7 | 9.2 | — | % | |||||||||||||||
| ^Nancy Carapelluci & A & M Seasonal Corner Inc. | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/1/2025 | 25.1 | 13.5 | 14.0 | 0.01 | % | |||||||||||||||
| Patricia Hughes Jones, MD PC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 1/13/2020 | 18.0 | 4.1 | 2.9 | — | % | |||||||||||||||
| ^Moonlight Multi Media Production, Inc. | Other Information Services | Term Loan | 5.3% | 2/1/2025 | 7.0 | 2.9 | 3.0 | — | % | |||||||||||||||
| David M. Goens dba Superior Auto Paint & Body, Inc. | Repair and Maintenance | Term Loan | 6% | 8/26/2024 | 32.2 | 16.3 | 16.9 | 0.01 | % | |||||||||||||||
| ^McCallister Venture Group, LLC and Maw's Vittles, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/30/2029 | 17.2 | 11.1 | 11.8 | — | % | |||||||||||||||
| ^Computer Renaissance dba Dante IT Services, Inc. | Electronics and Appliance Stores | Term Loan | Prime plus 3.75% | 3/1/2018 | 13.5 | 0.6 | 0.6 | — | % | |||||||||||||||
| ^Chong Hun Im dba Kim's Market | Food and Beverage Stores | Term Loan | Prime plus 2.5% | 2/27/2024 | 18.3 | 8.6 | 8.8 | — | % | |||||||||||||||
| Whirlwind Car Wash, Inc. | Repair and Maintenance | Term Loan | Prime plus 2% | 4/9/2029 | 76.9 | 65.2 | 66.5 | 0.03 | % | |||||||||||||||
| ^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge | Amusement, Gambling, and Recreation Industries | Term Loan | 6% | 6/5/2026 | 1,076.7 | 836.0 | 874.3 | 0.34 | % | |||||||||||||||
| ^Center-Mark Car Wash, Ltd | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 5/18/2024 | 52.3 | 25.6 | 26.5 | 0.01 | % | |||||||||||||||
| ^Shuttle Car Wash, Inc. dba Shuttle Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.25% | 11/10/2028 | 25.3 | 16.4 | 17.0 | 0.01 | % | |||||||||||||||
| ^Min Hui Lin | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/30/2028 | 28.8 | 16.6 | 17.5 | 0.01 | % | |||||||||||||||
| ^Delta Partners, LLC dba Delta Carwash | Repair and Maintenance | Term Loan | Prime plus 2.5% | 4/5/2029 | 61.1 | 40.8 | 42.6 | 0.02 | % | |||||||||||||||
| ^Auto Sales, Inc. | Motor Vehicle and Parts Dealers | Term Loan | 6% | 8/17/2023 | 17.2 | 7.0 | 7.3 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
75
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^B & J Manufacturing Corporation and Benson Realty Trust | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2% | 3/30/2021 | 57.2 | 16.6 | 16.7 | 0.01 | % | |||||||||||||||
| ^RAB Services, Inc. & Professional Floor Installations | Specialty Trade Contractors | Term Loan | Prime plus 2.5% | 1/31/2023 | 14.3 | 6.3 | 6.4 | — | % | |||||||||||||||
| ^Taste of Inverness, Inc. dba China Garden | Food Services and Drinking Places | Term Loan | Prime plus 2% | 6/29/2025 | 16.9 | 8.2 | 8.3 | — | % | |||||||||||||||
| ^Ralph Werner dba Werner Transmissions | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/29/2021 | 6.0 | 2.0 | 2.1 | — | % | |||||||||||||||
| ^M. Krishna, Inc. dba Super 8 Motel | Accommodation | Term Loan | Prime plus 2% | 3/20/2025 | 53.2 | 8.8 | 8.9 | — | % | |||||||||||||||
| ^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | 6% | 9/14/2023 | 39.8 | 30.1 | 31.1 | 0.01 | % | |||||||||||||||
| ^OrthoQuest, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2% | 3/12/2022 | 13.0 | 3.7 | 3.7 | — | % | |||||||||||||||
| ^CPN Motel, L.L.C. dba American Motor Lodge | Accommodation | Term Loan | Prime plus 2.25% | 4/30/2024 | 68.1 | 28.2 | 28.8 | 0.01 | % | |||||||||||||||
| ^Track Side Collision & Tire, Inc. | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 6/16/2025 | 10.2 | 4.6 | 4.7 | — | % | |||||||||||||||
| ^Duttakrupa, LLC dba Birmingham Motor Court | Accommodation | Term Loan | Prime plus 2.25% | 9/8/2023 | 22.6 | 11.1 | 11.3 | — | % | |||||||||||||||
| ^Deesha Corporation, Inc. dba Best Inn & Suites | Accommodation | Term Loan | Prime plus 2.25% | 2/14/2025 | 53.2 | 25.4 | 26.0 | 0.01 | % | |||||||||||||||
| ^Maruti, Inc | Accommodation | Term Loan | Prime plus 2.25% | 11/25/2024 | 50.4 | 23.5 | 24.0 | 0.01 | % | |||||||||||||||
| Willington Hills Equestrian Center LLC | Animal Production and Aquaculture | Term Loan | Prime plus 2.75% | 10/19/2022 | 19.5 | 12.5 | 12.9 | 0.01 | % | |||||||||||||||
| ^LABH, Inc. t/a Ramada Ltd. | Accommodation | Term Loan | Prime plus 2.25% | 9/27/2024 | 85.1 | 37.7 | 38.5 | 0.02 | % | |||||||||||||||
| ^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 3/13/2023 | 15.7 | 6.3 | 6.5 | — | % | |||||||||||||||
| ^Gain Laxmi, Inc. dba Super 8 Motel | Accommodation | Term Loan | Prime plus 2.25% | 5/31/2023 | 46.4 | 18.1 | 18.4 | 0.01 | % | |||||||||||||||
| ^Naseeb Corporation | Accommodation | Term Loan | Prime plus 2.25% | 3/31/2024 | 62.9 | 27.3 | 27.8 | 0.01 | % | |||||||||||||||
| ^Stillwell Ave Prep School | Social Assistance | Term Loan | Prime plus 2.75% | 1/14/2023 | 17.1 | 5.7 | 5.9 | — | % | |||||||||||||||
| ^Karis, Inc. | Accommodation | Term Loan | Prime plus 2% | 12/22/2023 | 34.1 | 12.2 | 12.3 | — | % | |||||||||||||||
| ^Five Corners, Ltd. | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/11/2019 | 19.5 | 3.6 | 3.7 | — | % | |||||||||||||||
| ^Alyssa Corp dba Knights Inn | Accommodation | Term Loan | Prime plus 2.25% | 9/30/2023 | 65.7 | 39.5 | 40.2 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
76
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| ^Bhailal Patel dba New Falls Motel | Accommodation | Term Loan | Prime plus 2.75% | 3/27/2023 | 22.9 | 3.2 | 3.3 | — | % | |||||||||||||||
| ^Pegasus Automotive, Inc. | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/23/2022 | 25.8 | 9.8 | 10.1 | — | % | |||||||||||||||
| ^Delyannis Iron Works | Fabricated Metal Product Manufacturing | Term Loan | 6% | 12/8/2022 | 68.4 | 12.1 | 12.5 | — | % | |||||||||||||||
| ^P. Agrino, Inc. dba Andover Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/18/2021 | 32.6 | 7.5 | 7.6 | — | % | |||||||||||||||
| ^RJS Service Corporation | Gasoline Stations | Term Loan | Prime plus 2.75% | 8/20/2021 | 18.1 | 5.3 | 5.4 | — | % | |||||||||||||||
| Total Performing SBA Unguaranteed Investments | $ | 276,970.7 | $ | 245,799.2 | $ | 247,346.8 | 96.77 | % | ||||||||||||||||
| Non-Performing SBA Unguaranteed Investments (3) | ||||||||||||||||||||||||
| *^200 North 8th Street Associates LLC and Enchanted Acres Farm | Food Manufacturing | Term Loan | 6.25% | 5/4/2028 | 468.8 | 469.3 | 450.4 | 0.18 | % | |||||||||||||||
| *^214 North Franklin, LLC and Winter Ventures, Inc. | Nonstore Retailers | Term Loan | 6% | 11/29/2037 | 81.7 | 81.7 | — | — | % | |||||||||||||||
| *^A + Quality Home Health Care, Inc. | Ambulatory Health Care Services | Term Loan | 6% | 8/1/2016 | 1.1 | 1.1 | 1.0 | — | % | |||||||||||||||
| *^Advanced Machine & Technology, Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 7/29/2025 | 67.1 | 67.3 | 37.7 | 0.01 | % | |||||||||||||||
| *^Aegis Creative Communications, Inc. | Professional, Scientific, and Technical Services | Term Loan | 6.5% | 11/30/2022 | 245.9 | 246.5 | 243.1 | 0.10 | % | |||||||||||||||
| *^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc | Motor Vehicle and Parts Dealers | Term Loan | 6.75% | 11/25/2040 | 68.3 | 68.4 | 42.0 | 0.02 | % | |||||||||||||||
| *^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc | Motor Vehicle and Parts Dealers | Term Loan | 6.25% | 9/18/2040 | 129.3 | 129.5 | 106.9 | 0.04 | % | |||||||||||||||
| *^AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc. | Ambulatory Health Care Services | Term Loan | 6% | 3/14/2038 | 305.3 | 305.7 | — | — | % | |||||||||||||||
| *AWA Fabrication & Construction, L.L.C. | Fabricated Metal Product Manufacturing | Term Loan | 6% | 4/30/2025 | 34.7 | 34.8 | — | — | % | |||||||||||||||
| *^B&B Fitness and Barbell, Inc. dba Elevations Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | 6% | 6/22/2035 | 187.9 | 188.2 | 193.2 | 0.08 | % | |||||||||||||||
| *Baker Sales, Inc. dba Baker Sales, Inc. | Nonstore Retailers | Term Loan | 6% | 3/29/2036 | 177.0 | 177.4 | 77.1 | 0.03 | % | |||||||||||||||
| *^Fieldstone Quick Stop LLC Barber Investments LLC Thadius M B | Gasoline Stations | Term Loan | 6% | 9/30/2038 | 406.2 | 407.3 | 4.7 | — | % | |||||||||||||||
| *^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar | Gasoline Stations | Term Loan | 6.25% | 8/15/2039 | 146.0 | 146.3 | — | — | % | |||||||||||||||
| *^Calhoun Satellite Communications Inc and Transmission Solutions Group | Broadcasting (except Internet) | Term Loan | Prime plus 2.75% | 2/27/2025 | 809.7 | 811.7 | 437.2 | 0.17 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
77
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| *Calhoun Satellite Communications, Inc. | Telecommunications | Term Loan | Prime plus 2.75% | 12/2/2026 | 188.7 | 189.1 | 170.2 | 0.07 | % | |||||||||||||||
| *^Carolina Beefs, LLC dba Beef O'Brady's | Food Services and Drinking Places | Term Loan | 6.75% | 4/13/2025 | 16.5 | 16.5 | — | — | % | |||||||||||||||
| *^Chickamauga Properties, Inc., MSW Enterprises, LLP | Amusement, Gambling, and Recreation Industries | Term Loan | 6.25% | 12/22/2035 | 59.0 | 59.0 | 56.6 | 0.02 | % | |||||||||||||||
| *^Chickamauga Properties, Inc. and MSW Enterprises, LLP | Amusement, Gambling, and Recreation Industries | Term Loan | 6.25% | 10/19/2022 | 43.4 | 43.5 | — | — | % | |||||||||||||||
| *^CM Lab Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/20/2026 | 165.7 | 166.1 | 155.1 | 0.06 | % | |||||||||||||||
| *^Custom Software, Inc. a Colorado Corporation dba M-33 Access | Professional, Scientific, and Technical Services | Term Loan | 6.25% | 6/17/2021 | 274.0 | 274.7 | 241.4 | 0.09 | % | |||||||||||||||
| *^Custom Software, Inc. a Colorado Corporation dba M-33 Access | Broadcasting (except Internet) | Term Loan | 6.25% | 4/30/2022 | 94.1 | 94.3 | — | — | % | |||||||||||||||
| *^D&G Capital LLC dba Miami Grill 277 | Food Services and Drinking Places | Term Loan | 6.5% | 12/16/2025 | 81.8 | 82.0 | 53.3 | 0.02 | % | |||||||||||||||
| *^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/29/2018 | 0.7 | 0.7 | 0.6 | — | % | |||||||||||||||
| *^Danjam Enterprises, LLC dba Ariel Dental Care | Ambulatory Health Care Services | Term Loan | 6% | 3/31/2035 | 125.8 | 126.0 | 119.2 | 0.05 | % | |||||||||||||||
| *^Danjam Enterprises, LLC dba Ariel Dental Care | Ambulatory Health Care Services | Term Loan | 6% | 3/29/2023 | 64.7 | 64.8 | 61.3 | 0.02 | % | |||||||||||||||
| *^Dill Street Bar and Grill Inc and WO Entertainment, Inc | Food Services and Drinking Places | Term Loan | 6% | 9/27/2027 | 78.2 | 78.4 | — | — | % | |||||||||||||||
| *Dr. Francis E. Anders, DVM | Professional, Scientific, and Technical Services | Term Loan | 6% | 8/9/2015 | 1.6 | 1.6 | 1.5 | — | % | |||||||||||||||
| *^DTM Parts Supply Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/2/2025 | 54.7 | 54.8 | 42.0 | 0.02 | % | |||||||||||||||
| *^E & I Holdings, LP & PA Farm Products, LLC | Food Manufacturing | Term Loan | 6% | 4/30/2030 | 4,874.0 | 4,923.2 | 2,836.0 | 1.11 | % | |||||||||||||||
| *^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc | Professional, Scientific, and Technical Services | Term Loan | 6.75% | 4/25/2024 | 386.4 | 386.8 | 87.2 | 0.03 | % | |||||||||||||||
| *^ENI Inc. dba ENI Group, Inc | Other Information Services | Term Loan | 6.75% | 12/11/2025 | 32.8 | 32.8 | — | — | % | |||||||||||||||
| *^Europlast Ltd | Plastics and Rubber Products Manufacturing | Term Loan | 6% | 9/26/2022 | 315.0 | 315.8 | 48.5 | 0.02 | % | |||||||||||||||
| *^Europlast Ltd | Plastics and Rubber Products Manufacturing | Term Loan | 6% | 5/31/2023 | 107.2 | 107.4 | 64.4 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
78
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| *^Event Mecca LLC | Other Information Services | Term Loan | 6% | 4/10/2023 | 12.3 | 12.3 | 9.5 | — | % | |||||||||||||||
| *^EZ Towing, Inc. | Support Activities for Transportation | Term Loan | 6% | 1/31/2023 | 86.2 | 86.4 | 8.3 | — | % | |||||||||||||||
| *^Gator Communications Group LLC dba Harvard Printing Group | Printing and Related Support Activities | Term Loan | 6.25% | 3/30/2022 | 232.9 | 233.5 | 25.8 | 0.01 | % | |||||||||||||||
| *^Gator Communications Group LLC dba Harvard Printing Group | Printing and Related Support Activities | Term Loan | 6.25% | 4/25/2022 | 157.4 | 157.8 | — | — | % | |||||||||||||||
| *^Gator Communications Group, LLC dba Harvard Printing Group | Printing and Related Support Activities | Term Loan | 6.25% | 3/27/2023 | 13.3 | 13.3 | — | — | % | |||||||||||||||
| *^Grand Manor Realty, Inc. & Kevin LaRoe | Real Estate | Term Loan | 6% | 2/20/2023 | 18.9 | 19.0 | 17.7 | 0.01 | % | |||||||||||||||
| *Guzman Group,LLC | Rental and Leasing Services | Term Loan | 6% | 9/30/2019 | 182.8 | 183.3 | 167.6 | 0.07 | % | |||||||||||||||
| *Harrelson Materials Management,Inc | Waste Management and Remediation Services | Term Loan | 6% | 6/24/2021 | 464.0 | 465.2 | 25.0 | 0.01 | % | |||||||||||||||
| *^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC | Ambulatory Health Care Services | Term Loan | 6.25% | 6/30/2026 | 476.5 | 477.6 | 45.6 | 0.02 | % | |||||||||||||||
| *^Hemingway Custom Cabinetry LLC | Furniture and Related Product Manufacturing | Term Loan | 6.5% | 9/25/2025 | 198.1 | 198.6 | 71.7 | 0.03 | % | |||||||||||||||
| *^Home Again Restaurant LLC | Food Services and Drinking Places | Term Loan | 6.25% | 6/30/2040 | 58.7 | 58.8 | 47.6 | 0.02 | % | |||||||||||||||
| *^J Olson Enterprises LLC and Olson Trucking Direct, Inc. | Truck Transportation | Term Loan | 6% | 6/28/2025 | 626.9 | 628.4 | 79.0 | 0.03 | % | |||||||||||||||
| *^J&M Concessions, Inc.dba A-1 Liquors | Food and Beverage Stores | Term Loan | 6.25% | 3/3/2039 | 130.2 | 130.6 | 64.7 | 0.03 | % | |||||||||||||||
| *^J&M Concessions Inc dba A 1 Liquors | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/27/2025 | 79.8 | 80.0 | 20.2 | 0.01 | % | |||||||||||||||
| *^Jacksonville Beauty Institute Inc. dba Beauty Institute's | Educational Services | Term Loan | Prime plus 2.75% | 10/23/2025 | 43.6 | 43.7 | 40.8 | 0.02 | % | |||||||||||||||
| *Jenny's Wunderland, Inc. | Social Assistance | Term Loan | 6% | 6/29/2036 | 128.5 | 128.8 | 32.0 | 0.01 | % | |||||||||||||||
| *^Karykion, Corporation dba Karykion Corporation | Professional, Scientific, and Technical Services | Term Loan | 6% | 6/28/2022 | 144.4 | 144.8 | 135.2 | 0.05 | % | |||||||||||||||
| *^Kantz LLC and Kantz Auto LLC dba Kantz's Hometown Auto | Motor Vehicle and Parts Dealers | Term Loan | 6.25% | 10/29/2039 | 64.1 | 64.2 | 57.5 | 0.02 | % | |||||||||||||||
| *^Kids at Heart,LLC dba Monster Mini Golf | Amusement, Gambling, and Recreation Industries | Term Loan | 6.75% | 9/22/2026 | 21.5 | 21.6 | 12.5 | — | % | |||||||||||||||
| *Krishna of Orangeburg, Inc. | Accommodation | Term Loan | 6% | 2/20/2032 | 10.3 | 10.3 | 5.7 | — | % | |||||||||||||||
| *^Kup's Auto Spa Inc | Repair and Maintenance | Term Loan | 6.25% | 11/15/2038 | 365.9 | 366.8 | 342.5 | 0.13 | % | |||||||||||||||
| *Kup’s Auto Spa, Inc. | Repair and Maintenance | Term Loan | 6.25% | 10/23/2025 | 54.6 | 54.7 | 51.1 | 0.02 | % | |||||||||||||||
| *^Las Torres Development LLC dba Houston Event Centers | Real Estate | Term Loan | 6% | 8/27/2028 | 51.0 | 51.0 | — | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
79
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| *^M and C Renovations Inc | Construction of Buildings | Term Loan | Prime plus 2.75% | 10/31/2024 | 13.7 | 13.8 | 10.7 | — | % | |||||||||||||||
| *^Matchless Transportation LLC dba First Class Limo | Transit and Ground Passenger Transportation | Term Loan | 6.25% | 8/3/2022 | 125.6 | 125.9 | 111.8 | 0.04 | % | |||||||||||||||
| *^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution | Merchant Wholesalers, Durable Goods | Term Loan | 6% | 6/10/2036 | 25.6 | 25.6 | — | — | % | |||||||||||||||
| *^Mojo Brands Media, LLC | Broadcasting (except Internet) | Term Loan | 6% | 8/28/2023 | 723.1 | 725.0 | 340.6 | 0.13 | % | |||||||||||||||
| *Morris Glass and Construction | Specialty Trade Contractors | Term Loan | 6% | 3/7/2021 | 44.8 | 44.8 | 2.7 | — | % | |||||||||||||||
| *Municipal Hydro Sevices Inc. | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 3/30/2027 | 258.4 | 259.0 | 159.0 | 0.06 | % | |||||||||||||||
| *^New Paltz Dental Care, PLLC dba Ariel Dental Care | Ambulatory Health Care Services | Term Loan | 6% | 6/19/2025 | 97.3 | 97.5 | 59.8 | 0.02 | % | |||||||||||||||
| *^Colts V LLC and Nowatzke Service Center, Inc | Repair and Maintenance | Term Loan | 6.75% | 9/26/2039 | 576.2 | 577.6 | 546.7 | 0.21 | % | |||||||||||||||
| *^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer | Repair and Maintenance | Term Loan | Prime plus 2.75% | 1/29/2026 | 96.7 | 96.9 | 91.8 | 0.04 | % | |||||||||||||||
| *Our Two Daughters L.L.C. dba Washington's Restaurant | Food Services and Drinking Places | Term Loan | 6% | 6/18/2026 | 674.2 | 681.0 | 65.3 | 0.03 | % | |||||||||||||||
| *^Planet Verte, LLC dba Audio Unlimited | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/20/2020 | 16.4 | 16.4 | 13.9 | 0.01 | % | |||||||||||||||
| *Professional Systems, LLC and Professional Cleaning | Administrative and Support Services | Term Loan | 6% | 7/30/2020 | 131.6 | 131.8 | 2.4 | — | % | |||||||||||||||
| *^Route 130 SCPI Holdings LLC Route 130 SCPI Operations LLC | Food Services and Drinking Places | Term Loan | 6.25% | 9/30/2039 | 535.1 | 536.4 | 306.4 | 0.12 | % | |||||||||||||||
| *^Scoville Plumbing & Heating Inc and Thomas P. Scoville | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/25/2022 | 32.0 | 32.1 | 30.4 | 0.01 | % | |||||||||||||||
| *^Shivsakti, LLC dba Knights Inn | Accommodation | Term Loan | 6.25% | 12/20/2032 | 8.0 | 8.0 | — | — | % | |||||||||||||||
| *^Sourceco Limited Liability Company | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/17/2025 | 44.9 | 45.0 | 43.2 | 0.02 | % | |||||||||||||||
| *^Sovereign Communications LLC | Broadcasting (except Internet) | Term Loan | Prime plus 2.75% | 2/7/2024 | 707.3 | 709.1 | 671.2 | 0.26 | % | |||||||||||||||
| *^Square Deal Siding Company, LLC dba Square Deal Siding Company | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/18/2025 | 20.2 | 20.3 | 19.4 | 0.01 | % | |||||||||||||||
| *^STK Ventures Inc dba JP Dock Service & Supply | Specialty Trade Contractors | Term Loan | 6% | 5/9/2037 | 31.6 | 31.6 | — | — | % | |||||||||||||||
| *^Stormrider Inc dba Shirley's Stormrider Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 9/23/2025 | 60.2 | 60.3 | — | — | % | |||||||||||||||
| *^Stormrider Inc dba Shirley's Stormrider, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 11/25/2024 | 119.1 | 119.4 | 43.4 | 0.02 | % | |||||||||||||||
| *Stormwise South Florida dba Stormwise Shutters | Specialty Trade Contractors | Term Loan | 6% | 11/7/2036 | 110.9 | 111.2 | — | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
80
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| *The Law Office of Joseph A. Foistner Esquire and Affiliates,PC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/26/2027 | 62.3 | 62.5 | — | — | % | |||||||||||||||
| *^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/16/2021 | 34.3 | 34.3 | 32.5 | 0.01 | % | |||||||||||||||
| *Transmission Solutions Group, Inc. and Calhoun Satellite Communications | Telecommunications | Term Loan | Prime plus 2.75% | 12/2/2041 | 140.9 | 141.3 | 72.0 | 0.03 | % | |||||||||||||||
| *^Will Zac Management LLC dba Papa John's | Food Services and Drinking Places | Term Loan | 6.25% | 12/19/2024 | 42.4 | 42.5 | 39.7 | 0.02 | % | |||||||||||||||
| *^Winter Ventures Inc and 214 N Franklin LLC | Nonstore Retailers | Term Loan | 6% | 4/29/2024 | 56.5 | 56.6 | — | — | % | |||||||||||||||
| *^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall | Nonstore Retailers | Term Loan | 6% | 12/23/2024 | 149.1 | 149.3 | — | — | % | |||||||||||||||
| *^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall | Nonstore Retailers | Term Loan | 6% | 4/3/2029 | 134.4 | 134.5 | — | — | % | |||||||||||||||
| *^Wired LLC and Moulison North Corporation | Specialty Trade Contractors | Term Loan | 6.25% | 6/30/2024 | 320.6 | 321.4 | 312.7 | 0.12 | % | |||||||||||||||
| *^Wired LLC and Moulison North Corporation | Specialty Trade Contractors | Term Loan | 6.25% | 7/3/2024 | 137.9 | 138.3 | 23.0 | 0.01 | % | |||||||||||||||
| Total Non-Performing Unguaranteed SBA Investments | $ | 19,246.5 | $ | 19,332.8 | $ | 9,789.2 | 3.83 | % | ||||||||||||||||
| Total Unguaranteed SBA Investments | $ | 296,217.2 | $ | 265,132.0 | $ | 257,136.0 | 100.60 | % | ||||||||||||||||
| Performing SBA Guaranteed Investments (4) | ||||||||||||||||||||||||
| Party By Design Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/18/2042 | 3,615.0 | 3,615.0 | 4,075.9 | 1.59 | % | |||||||||||||||
| NY Tent LLC & NY Tent Parent, LLC dba Tent Company of New York | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 9/20/2027 | 3,082.5 | 3,082.5 | 3,391.5 | 1.33 | % | |||||||||||||||
| SSN GROUP LLC and Dockside Steel Processing LLC | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/29/2042 | 3,750.0 | 3,750.0 | 4,125.9 | 1.61 | % | |||||||||||||||
| Dan Cline Transport Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 9/29/2030 | 3,016.5 | 3,016.5 | 3,272.9 | 1.28 | % | |||||||||||||||
| Harco Metal Products Inc | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 9/29/2042 | 4,401.0 | 4,401.0 | 4,945.6 | 1.93 | % | |||||||||||||||
| JBK Truck Trailer and Bus Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/23/2042 | 236.3 | 236.3 | 269.0 | 0.11 | % | |||||||||||||||
| Pecos Entertainment LLC dba State Theater and Pecos Inn LLC | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 3/27/2042 | 411.5 | 411.5 | 465.8 | 0.18 | % | |||||||||||||||
| Swantown Inn & Spa LLC | Accommodation | Term Loan | Prime plus 2.75% | 5/26/2042 | 85.3 | 85.3 | 97.1 | 0.04 | % | |||||||||||||||
| Bear Creek Entertainment LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 8/12/2041 | 1,172.3 | 1,172.3 | 1,329.1 | 0.52 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
81
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| House of Bread & Coffee Corp dba Casa Do Pao | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/27/2042 | 407.1 | 407.1 | 463.5 | 0.18 | % | |||||||||||||||
| CR Park Incorporated dba Define Body and Mind | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/20/2027 | 82.5 | 82.5 | 91.6 | 0.04 | % | |||||||||||||||
| AP6 LLC and Amishp LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/30/2042 | 323.3 | 323.3 | 368.1 | 0.14 | % | |||||||||||||||
| Sneads Ferry Foods, Inc. dba DQ Grill & Chill | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/27/2042 | 989.9 | 989.9 | 1,120.7 | 0.44 | % | |||||||||||||||
| Work of Heart Inc.dba Little Nest Portraits | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/28/2027 | 64.1 | 64.1 | 71.2 | 0.03 | % | |||||||||||||||
| Total SBA Guaranteed Performing Investments | $ | 21,637.3 | $ | 21,637.3 | $ | 24,088.0 | 9.42 | % | ||||||||||||||||
| Total SBA Unguaranteed and Guaranteed Investments | $ | 317,854.5 | $ | 286,769.3 | $ | 281,224.0 | 110.02 | % | ||||||||||||||||
| Controlled Investments (5) | ||||||||||||||||||||||||
| *Advanced Cyber Security Systems, LLC (6), (18) | Data processing, hosting and related services. | 50% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Term Loan | 3% | December 2014 | 1,120.0 | 381.0 | — | — | % | |||||||||||||||||
| *Automated Merchant Services, Inc. (7), (18) | Data processing, hosting and related services. | 100% Common Stock | —% | — | — | — | — | — | % | |||||||||||||||
| CDS Business Services, Inc. (8) | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 100% Common Stock | —% | — | — | 4,428.0 | 5,500.0 | 2.15 | % | |||||||||||||||
| Line of Credit | Prime plus 2.5% | August 2018 | 7,895.0 | 7,895.0 | 7,895.0 | 3.09 | % | |||||||||||||||||
| Newtek Technology Solutions, Inc. (11) | Data processing, hosting and related services. | 100% Common Stock | —% | — | — | 8,384.0 | 16,000.0 | 6.26 | % | |||||||||||||||
| *Fortress Data Management, LLC (18) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Newtek Insurance Agency, LLC (13), (18) | Insurance Carriers and Related Activities | 100% Membership Interest | —% | — | — | — | 2,500.0 | 0.98 | % | |||||||||||||||
| *PMTWorks Payroll, LLC (9) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | 725.1 | — | — | % | |||||||||||||||
| Term Loan | 10%-12% | Various maturities through July 2019 | 2,685.0 | 2,685.0 | — | — | % | |||||||||||||||||
| Secure CyberGateway Services, LLC (10), (18) | Data processing, hosting and related services. | 66.7% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Term Loan | 7% | June 2017 | 2,400.0 | 300.0 | — | — | % | |||||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
82
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2017 (UNAUDITED)
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | %
of Net Assets | ||||||||||||||||
| Small Business Lending, LLC (12), (18) | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 100% Membership Interest | —% | — | — | — | 2,500.0 | 0.98 | % | |||||||||||||||
| *Summit Systems and Designs, LLC (14), (18) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| ADR Partners, LLC dba banc-serv Partners, LLC (12) | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 100% Membership Interest | —% | — | — | 5,260.3 | 3,400.0 | 1.33 | % | |||||||||||||||
| Premier Payments LLC (11) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | 16,438.0 | 21,000.0 | 8.22 | % | |||||||||||||||
| International Professional Marketing, Inc. (17) | Professional, Scientific, and Technical Services | 100% Common Stock | —% | — | — | 8,800.0 | 8,800.0 | 3.44 | % | |||||||||||||||
| Line of Credit | Prime plus 0.5% | April 2018 | 200.0 | 200.0 | 200.0 | 0.08 | % | |||||||||||||||||
| SIDCO, LLC (17) | Professional, Scientific, and Technical Services | 100% Membership Interest | —% | — | — | 2,320.0 | 2,320.0 | 0.91 | % | |||||||||||||||
| Line of Credit | Prime plus 0.5% | — | 345.0 | 345.0 | 345.0 | 0.13 | % | |||||||||||||||||
| Universal Processing Services of Wisconsin, LLC (11) (18) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | — | 66,000.0 | 25.82 | % | |||||||||||||||
| Titanium Asset Management, LLC (15) | Administrative and Support Services | Term Loan | 3% | July 2017 | 2,200.0 | 193.9 | — | — | % | |||||||||||||||
| 100% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||||
| Excel WebSolutions, LLC (16) | Data processing, hosting and related services. | Term Loan | 10% | September 2018 | 1,020.2 | 535.4 | 489.0 | 0.19 | % | |||||||||||||||
| 50% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||||
| Total Controlled Investments | $ | 17,865.2 | $ | 58,890.7 | $ | 136,949.0 | 53.58 | % | ||||||||||||||||
| Investments in Money Market Funds | ||||||||||||||||||||||||
| UBS Select Treasury Institutional Fund - 0.84% yield | $ | 9.4 | $ | 9.4 | $ | 9.4 | — | % | ||||||||||||||||
| Total Investments | $ | 335,729.1 | $ | 345,669.4 | $ | 418,182.4 | 163.60 | % | ||||||||||||||||
^ Denotes investment has been pledged as collateral under the Securitization Trusts.
* Denotes non-income producing security.
See accompanying notes to unaudited condensed consolidated financial statements.
83
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded PLP status from the SBA. The portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to qualified investors.
(2) Prime Rate is equal to 4.25% as of September 30, 2017.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 18.35% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 31.8% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(9) 25% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by Exponential business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 66.7% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco 1, Inc. (a subsidiary of Newtek Business Services Corp.).
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Banc-Serv Acquisition, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 30% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 17.8% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(16) 36.2% owned by Wilshire New York Partners V, LLC and 13.8% owned by Wilshire New York Partners IV, LLC (both subsidiaries of Newtek Business Services Corp.), 50% owned by non-affiliate.
(17) 100% owned by Newtek Business Services Holdco 2, Inc. (a subsidiary of Newtek Business Services Corp.). During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $8,800,000 and $2,320,000, respectively. Refer to Note 3.
(18) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were expensed when incurred.
(19) All of the Company's investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(20) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At September 30, 2017, 4.9% of total assets are non-qualifying assets.
See accompanying notes to unaudited condensed consolidated financial statements.
84
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Performing SBA Unguaranteed Investments (1) | ||||||||||||||||||||||||
| Fort Smith Wings Inc. dba Wing Stop | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/28/2026 | 19.5 | 19.5 | 17.4 | 0.01 | % | |||||||||||||||
| Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/27/2041 | 419.9 | 419.9 | 409.7 | 0.20 | % | |||||||||||||||
| Joshua L. Baker | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 12/23/2026 | 15.8 | 15.8 | 13.4 | 0.01 | % | |||||||||||||||
| Jacliff Investments Inc. dba International health Technologies | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 12/23/2026 | 125.0 | 125.0 | 106.7 | 0.05 | % | |||||||||||||||
| New Image Building Services, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/21/2026 | 43.8 | 43.8 | 38.7 | 0.02 | % | |||||||||||||||
| Chestnut Street Associates, LLC and Metropolitan Solutions, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/19/2041 | 275.0 | 275.0 | 261.1 | 0.12 | % | |||||||||||||||
| Means Enterprises LLC dba FastFrame Frisco | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 12/16/2026 | 22.5 | 22.5 | 19.5 | 0.01 | % | |||||||||||||||
| New Chicago Wholesale Bakery, Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 452.8 | 452.8 | 443.6 | 0.21 | % | |||||||||||||||
| Soon Im. Chin dba Stan C-Store | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/15/2041 | 212.5 | 212.5 | 216.6 | 0.10 | % | |||||||||||||||
| Sempco, Inc. | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 42.0 | 42.0 | 43.6 | 0.02 | % | |||||||||||||||
| Allied Welding Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 750.0 | 750.0 | 727.9 | 0.35 | % | |||||||||||||||
| Ericon, Inc. dba Quik Pik | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/15/2041 | 332.2 | 332.2 | 328.4 | 0.16 | % | |||||||||||||||
| White Hawk Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 12/15/2026 | 1,097.8 | 1,097.8 | 937.2 | 0.45 | % | |||||||||||||||
| Elita 7, LLC | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 12/15/2041 | 712.5 | 712.5 | 716.0 | 0.34 | % | |||||||||||||||
| Techni-Pro Institute LLC | Educational Services | Term Loan | Prime plus 2.75% | 12/15/2026 | 190.0 | 190.0 | 166.9 | 0.08 | % | |||||||||||||||
| HMG Strategy, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/14/2026 | 50.0 | 50.0 | 42.7 | 0.02 | % | |||||||||||||||
| Cardinal Homes Inc. and Bret A Berneche | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 12/14/2041 | 121.3 | 121.3 | 125.3 | 0.06 | % | |||||||||||||||
| Trison Enterprises Inc.dba Lee's Automotive | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/14/2041 | 407.5 | 407.5 | 406.2 | 0.19 | % | |||||||||||||||
| AGG Management Team LLC dba Chevron | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/14/2041 | 287.5 | 287.5 | 298.3 | 0.14 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
85
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| Cardinal Homes Inc,.Alouette Holdings Inc. | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 12/14/2026 | 1,071.3 | 1,071.3 | 1,074.5 | 0.51 | % | |||||||||||||||
| D and E Hardware Co. and D and E Pump Sales and Service | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 12/14/2041 | 528.6 | 528.6 | 518.6 | 0.25 | % | |||||||||||||||
| Wayfarer Bicycle LLC | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 12/13/2041 | 92.5 | 92.5 | 88.9 | 0.04 | % | |||||||||||||||
| Success Advertising Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/13/2041 | 466.5 | 466.5 | 476.4 | 0.23 | % | |||||||||||||||
| Roast Beef Levittown LLC dba Arby's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/13/2026 | 465.0 | 54.6 | 55.0 | 0.03 | % | |||||||||||||||
| Queen Express LLC | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/13/2041 | 187.5 | 187.5 | 191.6 | 0.09 | % | |||||||||||||||
| Mack Team Enterprises Inc.dba The UPS Store #6815 | Couriers and Messengers | Term Loan | Prime plus 2.75% | 12/9/2026 | 20.4 | 20.4 | 18.2 | 0.01 | % | |||||||||||||||
| Recycling Revolution,LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/9/2041 | 92.2 | 92.2 | 90.4 | 0.04 | % | |||||||||||||||
| Myndshft Technologies LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/9/2026 | 775.0 | 775.0 | 731.8 | 0.35 | % | |||||||||||||||
| ^New Life Hospital LLC | Hospitals | Term Loan | Prime plus 2.75% | 12/8/2041 | 1,195.5 | 1,195.5 | 1,240.3 | 0.59 | % | |||||||||||||||
| Imagine By Carleen Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/8/2041 | 52.5 | 52.5 | 53.3 | 0.03 | % | |||||||||||||||
| Hanson's Greeks LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/8/2026 | 11.3 | 11.3 | 11.3 | 0.01 | % | |||||||||||||||
| Yachting Solutions LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 12/7/2029 | 71.3 | 71.3 | 67.4 | 0.03 | % | |||||||||||||||
| T & B Boots, Inc. dba Takken's Shoes | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 12/7/2026 | 100.0 | 100.0 | 93.0 | 0.04 | % | |||||||||||||||
| Lan Doctors, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/7/2026 | 237.5 | 237.5 | 230.8 | 0.11 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
86
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites | Accommodation | Term Loan | Prime plus 2.75% | 12/5/2041 | 352.5 | 352.5 | 358.5 | 0.17 | % | |||||||||||||||
| Lilo Holdings LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/5/2026 | 15.9 | 15.9 | 14.3 | 0.01 | % | |||||||||||||||
| Transmission Solutions Group, Inc. and Calhoun Satellite Communications | Telecommunications | Term Loan | Prime plus 2.75% | 12/2/2041 | 141.3 | 141.3 | 130.2 | 0.06 | % | |||||||||||||||
| Calhoun Satellite Communications, Inc. | Telecommunications | Term Loan | Prime plus 2.75% | 12/2/2026 | 192.5 | 192.5 | 171.7 | 0.08 | % | |||||||||||||||
| Noso Development LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 12/1/2026 | 75.0 | 75.0 | 64.0 | 0.03 | % | |||||||||||||||
| ^Ericon, Inc. | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/1/2041 | 726.1 | 726.1 | 717.8 | 0.34 | % | |||||||||||||||
| ^Pebble Wood Lane, LLC and Good Sam's Assisted Living Resiidence,LLC | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 11/30/2041 | 67.5 | 67.5 | 70.0 | 0.03 | % | |||||||||||||||
| Sharaz Shah DBA Thomas Jewelers | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 11/30/2026 | 8.1 | 8.1 | 6.9 | — | % | |||||||||||||||
| Choe Trading Group, Inc.dba Rapid Printers of Monterey | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/30/2026 | 22.5 | 22.5 | 21.9 | 0.01 | % | |||||||||||||||
| Studio Find It Georgia, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/30/2026 | 7.5 | 7.5 | 6.5 | — | % | |||||||||||||||
| ^Quick Ship, LLC | Couriers and Messengers | Term Loan | Prime plus 2.75% | 11/30/2026 | 10.5 | 10.5 | 9.0 | — | % | |||||||||||||||
| B4 Fitness LLC dba The Zoo Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/30/2026 | 22.5 | 22.5 | 20.0 | 0.01 | % | |||||||||||||||
| Imaginarium Foods LLC, | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2042 | 376.7 | 124.4 | 129.2 | 0.06 | % | |||||||||||||||
| RD Management, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2026 | 213.8 | 213.8 | 184.7 | 0.09 | % | |||||||||||||||
| ^Usman Jalil, LLC dba Food Mart | Gasoline Stations | Term Loan | Prime plus 2.75% | 11/29/2041 | 233.3 | 233.3 | 223.3 | 0.11 | % | |||||||||||||||
| Honor Mansion, Inc. | Accommodation | Term Loan | Prime plus 2.75% | 11/29/2026 | 87.5 | 87.5 | 88.1 | 0.04 | % | |||||||||||||||
| Access Staffing, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/29/2026 | 1,125.0 | 1,125.0 | 960.4 | 0.46 | % | |||||||||||||||
| WPN Recycling Company LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 11/23/2026 | 22.5 | 22.5 | 22.7 | 0.01 | % | |||||||||||||||
| Hafa Adai Signs and Graphics LLC dba Fastsigns of Auburn -#281901 | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/23/2026 | 60.0 | 60.0 | 51.9 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
87
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| CRK Mens, LLC dba Spiff for Men | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/23/2026 | 106.3 | 106.3 | 92.5 | 0.04 | % | |||||||||||||||
| Merchant Coterie, Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 11/23/2026 | 125.0 | 125.0 | 106.7 | 0.05 | % | |||||||||||||||
| 6E Technologies LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/22/2026 | 175.0 | 175.0 | 160.2 | 0.08 | % | |||||||||||||||
| Broms Asset Management LLC | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 11/22/2026 | 125.0 | 125.0 | 106.7 | 0.05 | % | |||||||||||||||
| Rognes Corp dba RTS | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 11/22/2026 | 389.3 | 389.3 | 354.1 | 0.17 | % | |||||||||||||||
| Bouquet Restaurant LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/22/2041 | 125.0 | 125.0 | 124.9 | 0.06 | % | |||||||||||||||
| ^J.B.K Truck Trailer and Bus Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/22/2041 | 435.0 | 435.0 | 427.8 | 0.20 | % | |||||||||||||||
| Skaggs RV Outlet LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 11/21/2026 | 100.0 | 100.0 | 100.7 | 0.05 | % | |||||||||||||||
| Catherine Christine Morin dba Purr-Fect Pets | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/17/2026 | 18.8 | 18.8 | 16.0 | 0.01 | % | |||||||||||||||
| Stratmar Systems Inc dba Stratmar Retail Services | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/16/2026 | 68.5 | 68.5 | 69.0 | 0.03 | % | |||||||||||||||
| Hoosier Health Plus, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/15/2026 | 125.0 | 125.0 | 116.8 | 0.06 | % | |||||||||||||||
| ^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/10/2041 | 446.0 | 446.0 | 450.1 | 0.22 | % | |||||||||||||||
| Hackensack Steel Corporation and Luzerne Ironworks Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/10/2026 | 239.2 | 239.2 | 238.8 | 0.11 | % | |||||||||||||||
| ^Panther Ironworks and Rigging Solutions LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/10/2026 | 151.3 | 151.3 | 138.0 | 0.07 | % | |||||||||||||||
| ^J. A. Kohlhepp Sons, Inc. dba Kohlhepp's True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/10/2026 | 188.8 | 188.8 | 184.8 | 0.09 | % | |||||||||||||||
| ^Bovill Creative,LLC | Real Estate | Term Loan | Prime plus 2.75% | 11/9/2041 | 281.2 | 281.1 | 291.7 | 0.14 | % | |||||||||||||||
| ^Big Apple Entertainment Partners LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/9/2026 | 175.0 | 175.0 | 149.4 | 0.07 | % | |||||||||||||||
| ^Dyer Properties, LLC and Bayview Pharmacy, Inc. | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 11/9/2041 | 240.3 | 240.3 | 234.1 | 0.11 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
88
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Rich's Food Stores LLC dba Hwy 55 of Wallace | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/9/2026 | 43.8 | 43.8 | 40.5 | 0.02 | % | |||||||||||||||
| MIK LLC dba Firehouse Subs | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/9/2026 | 200.0 | 163.3 | 141.6 | 0.07 | % | |||||||||||||||
| Surgarloaf Concepts LLC dba Fat Biscuit | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/8/2026 | 168.8 | 95.9 | 96.6 | 0.05 | % | |||||||||||||||
| ^Fine Line Interiors, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/4/2041 | 87.5 | 87.5 | 90.8 | 0.04 | % | |||||||||||||||
| ^Pig-Sty BBQ, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/3/2026 | 71.3 | 71.3 | 71.8 | 0.03 | % | |||||||||||||||
| 131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/3/2041 | 127.5 | 35.8 | 37.2 | 0.02 | % | |||||||||||||||
| ^Veracruz Shabo, LLC, Waterfalls Quick Lube LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/1/2041 | 118.8 | 118.8 | 119.6 | 0.06 | % | |||||||||||||||
| Glocecol LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/1/2026 | 75.0 | 75.0 | 75.5 | 0.04 | % | |||||||||||||||
| Middlesex Auto Sales Corp | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 10/31/2041 | 125.0 | 47.5 | 49.3 | 0.02 | % | |||||||||||||||
| ^Bloomquist Communications Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/31/2026 | 60.0 | 59.6 | 50.9 | 0.02 | % | |||||||||||||||
| ^Moolchan Enterprises LLC dba Staying Green | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/31/2026 | 18.2 | 18.0 | 16.9 | 0.01 | % | |||||||||||||||
| ^Woodstock Enterprises Corp dba True Scent Candle Company | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 10/31/2041 | 88.8 | 88.6 | 85.2 | 0.04 | % | |||||||||||||||
| ^Patina Investment, Inc and Ram & Sons, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/27/2041 | 175.0 | 174.8 | 181.3 | 0.09 | % | |||||||||||||||
| Elite Structures Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 10/27/2029 | 225.0 | 225.0 | 217.4 | 0.10 | % | |||||||||||||||
| ^FibAire Communications, LLC | Telecommunications | Term Loan | Prime plus 2.75% | 10/27/2026 | 107.5 | 106.8 | 97.6 | 0.05 | % | |||||||||||||||
| ^Bonita Stone LLC and Castone Creations Inc | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 10/25/2041 | 264.4 | 264.0 | 259.4 | 0.12 | % | |||||||||||||||
| ^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc. | Nonstore Retailers | Term Loan | Prime plus 2.75% | 10/25/2026 | 131.3 | 130.5 | 131.4 | 0.06 | % | |||||||||||||||
| Blakeslee Arpaia Chapman Inc and Chapman Construction Services LLC | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 10/24/2026 | 425.0 | 422.4 | 416.6 | 0.20 | % | |||||||||||||||
| Eco Vehicle Systems LLC | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 10/21/2026 | 955.5 | 949.8 | 940.4 | 0.45 | % | |||||||||||||||
| Worldwide Estate, Inc. dba Washington Heights Manor | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 10/21/2041 | 225.0 | 155.8 | 161.6 | 0.08 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
89
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Gold Wind Logistics LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 10/20/2041 | 175.0 | 175.0 | 181.6 | 0.09 | % | |||||||||||||||
| ^Speaker City, Inc. dba Rollin Thunder | Electronics and Appliance Stores | Term Loan | Prime plus 2.75% | 10/14/2041 | 125.0 | 124.8 | 125.3 | 0.06 | % | |||||||||||||||
| ^Maine Service Corp | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 10/13/2026 | 206.3 | 204.3 | 190.3 | 0.09 | % | |||||||||||||||
| ^Justin Partlow | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 10/13/2026 | 19.5 | 19.4 | 16.5 | 0.01 | % | |||||||||||||||
| ^Reliable Recovery Services LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 10/7/2026 | 112.5 | 111.8 | 101.4 | 0.05 | % | |||||||||||||||
| ^Ailky Corporation | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 10/3/2026 | 250.0 | 248.5 | 217.5 | 0.10 | % | |||||||||||||||
| ^Wyspen Corporation dba Charlestown Ace | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 10/3/2026 | 36.0 | 35.8 | 30.5 | 0.01 | % | |||||||||||||||
| ^JJA Transportation Management Inc. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2026 | 52.5 | 51.9 | 44.3 | 0.02 | % | |||||||||||||||
| ^MegaPhase, LLC | Computer and Electronic Product Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2026 | 150.0 | 148.2 | 141.8 | 0.07 | % | |||||||||||||||
| ^Seaway LLC and Reklaw LLC dba Allure Lounge | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2041 | 137.5 | 137.1 | 142.2 | 0.07 | % | |||||||||||||||
| ^Adelworth Bus Corp. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2041 | 242.8 | 242.1 | 236.6 | 0.11 | % | |||||||||||||||
| Adelwerth Bus Corporation, Transportation Leasing Corp. | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2029 | 654.0 | 648.5 | 619.6 | 0.30 | % | |||||||||||||||
| ^Las Casuelas Del Este Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/29/2041 | 800.0 | 799.4 | 811.3 | 0.39 | % | |||||||||||||||
| ^Thunderdome Racing Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/29/2026 | 19.1 | 18.8 | 18.4 | 0.01 | % | |||||||||||||||
| Vision Automotive LLC dba Vision Chrysler Jeep Dodge Ram of Defiance | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/29/2029 | 671.5 | 665.8 | 619.7 | 0.30 | % | |||||||||||||||
| Paragon Fabricators Inc, Paragon Field Services, Inc and Paragon Global | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/28/2026 | 648.0 | 640.1 | 586.2 | 0.28 | % | |||||||||||||||
| ^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Service | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/28/2041 | 405.8 | 404.6 | 382.3 | 0.18 | % | |||||||||||||||
| ^Graphics,Type and Color Enterprises Inc dba Clubflyers.com and GTC Med | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 9/28/2041 | 850.0 | 847.6 | 879.0 | 0.42 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
90
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Beadon Inc | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/28/2026 | 22.5 | 22.2 | 22.0 | 0.01 | % | |||||||||||||||
| ^CD Game Exchange Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/28/2026 | 22.5 | 22.2 | 19.0 | 0.01 | % | |||||||||||||||
| ^CNC Precision Machine, Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/28/2041 | 1,250.0 | 1,246.5 | 1,230.6 | 0.59 | % | |||||||||||||||
| ^Kyle M Walker DDS,PC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/27/2026 | 217.8 | 215.1 | 189.0 | 0.09 | % | |||||||||||||||
| ^Luna Nueva LLC dba Bio Builders | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/27/2026 | 15.0 | 14.8 | 13.0 | 0.01 | % | |||||||||||||||
| Reynolds Fence & Guardrail Inc. | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/27/2026 | 629.6 | 621.9 | 596.4 | 0.29 | % | |||||||||||||||
| ^Luv 2 Play Nor Call, LLC dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/27/2026 | 52.5 | 51.9 | 46.3 | 0.02 | % | |||||||||||||||
| ^Sarah S Olelewe MD Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/26/2041 | 292.4 | 292.2 | 289.2 | 0.14 | % | |||||||||||||||
| ^TPFC,LLC dbaThe Picture Frame Company | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/26/2041 | 58.8 | 58.6 | 58.1 | 0.03 | % | |||||||||||||||
| ^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 9/26/2026 | 9.0 | 8.9 | 8.7 | — | % | |||||||||||||||
| ^PeopleBest Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/26/2026 | 15.0 | 14.8 | 12.6 | 0.01 | % | |||||||||||||||
| ^Mr. Mulch, Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/23/2041 | 405.8 | 404.6 | 375.8 | 0.18 | % | |||||||||||||||
| ^B4 Fitness LLC dba The Zoo Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/23/2026 | 87.5 | 86.4 | 76.8 | 0.04 | % | |||||||||||||||
| ^InformationTelevision Network Inc | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 9/22/2041 | 836.8 | 835.6 | 856.4 | 0.41 | % | |||||||||||||||
| ^Kids at Heart,LLC dba Monster Mini Golf | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/22/2026 | 22.5 | 22.3 | 19.3 | 0.01 | % | |||||||||||||||
| ^GRA Financial Services Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/22/2026 | 12.0 | 11.9 | 10.1 | — | % | |||||||||||||||
| ^Wrecking Crew Media LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 9/21/2026 | 50.0 | 49.4 | 42.1 | 0.02 | % | |||||||||||||||
| ^Cuppiecakes LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/21/2041 | 22.5 | 22.4 | 22.1 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
91
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Benoit's Towing and Recovery LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 9/20/2026 | 12.0 | 11.9 | 10.3 | — | % | |||||||||||||||
| ^Consulting Solutions Inc. and Mark Luciani | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/20/2026 | 22.5 | 22.3 | 20.8 | 0.01 | % | |||||||||||||||
| ^Brittany Burns LLC dba Dreams Come True | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/19/2026 | 12.9 | 12.7 | 12.8 | 0.01 | % | |||||||||||||||
| ^Eyncon LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/16/2041 | 50.0 | 49.9 | 49.8 | 0.02 | % | |||||||||||||||
| ^Tresa S.Parris dba Wagging Tails Grooming | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/16/2026 | 8.0 | 7.9 | 6.8 | — | % | |||||||||||||||
| ^The Merrin Group LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/15/2026 | 175.0 | 172.9 | 164.8 | 0.08 | % | |||||||||||||||
| ^Rich's Food Stores LLC dba Hwy 55 of Wallace | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/14/2026 | 145.5 | 143.7 | 133.2 | 0.06 | % | |||||||||||||||
| ^Atlantic Alarm Systems and Services LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/14/2026 | 15.5 | 15.3 | 13.4 | 0.01 | % | |||||||||||||||
| ^Metropet Dog Center, Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/13/2041 | 109.3 | 108.9 | 109.2 | 0.05 | % | |||||||||||||||
| ^Marquis Cattle Company | Animal Production and Aquaculture | Term Loan | Prime plus 2.75% | 9/13/2026 | 50.0 | 49.7 | 50.1 | 0.02 | % | |||||||||||||||
| ^Bingham Enterprises, Inc and Full Belli Deli and Sausage Company | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/12/2041 | 82.5 | 82.3 | 79.6 | 0.04 | % | |||||||||||||||
| ^Artisan Infrastructure Holdings, LLC | Data Processing, Hosting, and Related Services | Term Loan | Prime plus 2.75% | 9/7/2026 | 125.0 | 123.5 | 105.4 | 0.05 | % | |||||||||||||||
| ^SRA Mechanicial Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/6/2041 | 43.8 | 43.6 | 45.0 | 0.02 | % | |||||||||||||||
| ^Sandia Enterprises Inc dba Massage Envy Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/6/2026 | 62.5 | 61.7 | 52.7 | 0.03 | % | |||||||||||||||
| ^Animal Intrusion Prevention Systems Holding Company, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/30/2026 | 125.0 | 123.0 | 107.7 | 0.05 | % | |||||||||||||||
| ^Suncrest Stone Products LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 8/29/2026 | 586.8 | 576.0 | 514.8 | 0.25 | % | |||||||||||||||
| ^Clark Realty LLC | Real Estate | Term Loan | Prime plus 2.75% | 8/29/2041 | 237.5 | 236.5 | 225.0 | 0.11 | % | |||||||||||||||
| ^Raem Corporation dba Dryclean Express | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 8/29/2041 | 72.5 | 72.2 | 73.9 | 0.04 | % | |||||||||||||||
| ^Suncrest Stone Products LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 8/29/2041 | 649.6 | 646.9 | 596.9 | 0.29 | % | |||||||||||||||
| ^TAGR Inc dba Miami Grill 137and John Nakis | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/26/2026 | 106.8 | 104.8 | 91.7 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
92
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Warren Dale Warrington dba Custom Paint and Body | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/26/2041 | 101.3 | 100.8 | 101.6 | 0.05 | % | |||||||||||||||
| ^Albert Basse Associates Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 8/25/2026 | 62.5 | 61.4 | 61.1 | 0.03 | % | |||||||||||||||
| ^Dean Technology Inc | Electrical Equipment, Appliance, and Component Manufacturing | Term Loan | Prime plus 2.75% | 8/25/2041 | 387.1 | 385.5 | 396.3 | 0.19 | % | |||||||||||||||
| ^Rosmel Pools Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/25/2026 | 22.5 | 22.1 | 19.3 | 0.01 | % | |||||||||||||||
| ^Avery Management Inc. dba Whetstone Upholstery | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/25/2026 | 10.7 | 10.5 | 8.9 | — | % | |||||||||||||||
| ^TR Companies LLC dba True Value Rental and Liberty Rental 4 U | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 8/25/2026 | 90.0 | 88.4 | 75.4 | 0.04 | % | |||||||||||||||
| ^Tabadesa Associates Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/25/2026 | 22.5 | 22.1 | 18.8 | 0.01 | % | |||||||||||||||
| Sambella Holdings, LLC and Strike Zone Entertainment Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/24/2041 | 500.0 | 366.5 | 380.2 | 0.18 | % | |||||||||||||||
| ^Tim's Tire & Automotive Center, LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 8/16/2026 | 816.6 | 797.7 | 721.6 | 0.35 | % | |||||||||||||||
| ^Luv 2 Play Temecula, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 8/15/2026 | 60.0 | 58.9 | 50.3 | 0.02 | % | |||||||||||||||
| Bear Creek Entertainment LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 8/12/2041 | 437.5 | 279.1 | 284.3 | 0.14 | % | |||||||||||||||
| ^2 Cool Beans LLC dba Menchies's Frozen Yogurt | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/11/2026 | 82.5 | 81.0 | 69.1 | 0.03 | % | |||||||||||||||
| ^Grayson O Company | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 8/10/2041 | 625.0 | 622.4 | 639.7 | 0.31 | % | |||||||||||||||
| ^Charal Investments LLC dba Orange Theory Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 8/10/2026 | 87.5 | 85.9 | 73.3 | 0.04 | % | |||||||||||||||
| ^PCNKC Inc dba Plato's Closet | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/10/2026 | 18.8 | 18.5 | 16.2 | 0.01 | % | |||||||||||||||
| ^Paul Belanger dba Paul Belanger Landscaping | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/9/2026 | 15.0 | 14.7 | 12.6 | 0.01 | % | |||||||||||||||
| ^R Performance LLC dba Performance Automotive of San Diego | Repair and Maintenance | Term Loan | Prime plus 2.75% | 7/29/2026 | 15.0 | 14.6 | 12.8 | 0.01 | % | |||||||||||||||
| ^The Hungry Rhino LLC | Real Estate | Term Loan | Prime plus 2.75% | 7/29/2041 | 76.3 | 75.8 | 74.9 | 0.04 | % | |||||||||||||||
| ^Nicolette Reiser dba Comfort & Balance | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 7/29/2041 | 75.0 | 74.6 | 75.1 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
93
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^USA General Investment LLC dba Braniff Paint and Body Shop | Repair and Maintenance | Term Loan | Prime plus 2.75% | 7/29/2026 | 22.5 | 21.9 | 19.3 | 0.01 | % | |||||||||||||||
| ^Little Tree Huggers Child Care LLC | Social Assistance | Term Loan | Prime plus 2.75% | 7/29/2041 | 140.0 | 139.2 | 143.9 | 0.07 | % | |||||||||||||||
| ^303 Tower Drive LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 7/29/2041 | 400.3 | 398.0 | 403.4 | 0.19 | % | |||||||||||||||
| ^KJCKD Inc dba Camelot Print & Copy Centers/Copy A Second | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/28/2041 | 587.0 | 583.7 | 578.9 | 0.28 | % | |||||||||||||||
| ^Big Apple Entertainment Partners LLC dba Ripley's Believe It or Not | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/28/2026 | 300.0 | 292.6 | 249.7 | 0.12 | % | |||||||||||||||
| ^676 Club LP dba The Green Door Tavern/The Drifter | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/28/2041 | 670.0 | 665.0 | 679.9 | 0.33 | % | |||||||||||||||
| ^MacIver Corporation dba Division Camera | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 7/28/2026 | 1,250.0 | 1,219.3 | 1,143.1 | 0.55 | % | |||||||||||||||
| ^J And G Group Services LLC and United Vending of Florida Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 7/28/2026 | 31.5 | 30.8 | 27.5 | 0.01 | % | |||||||||||||||
| ^Intrepid Trinity LLC | Nonstore Retailers | Term Loan | Prime plus 2.75% | 7/28/2041 | 62.5 | 62.1 | 62.4 | 0.03 | % | |||||||||||||||
| ^Apple Tree NC Inc dba Williams Farm & Garden Center | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 7/28/2041 | 337.0 | 335.1 | 327.8 | 0.16 | % | |||||||||||||||
| ^Kidtastic LLC dba The Little Gym of Audubon | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/27/2026 | 53.8 | 52.8 | 45.0 | 0.02 | % | |||||||||||||||
| ^GF Libations Inc dba Minuteman Press | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 7/27/2041 | 40.5 | 39.5 | 34.9 | 0.02 | % | |||||||||||||||
| ^EPEC Juice LLC dba Jamba Juice | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/27/2026 | 82.5 | 81.5 | 69.5 | 0.03 | % | |||||||||||||||
| ^Pinco Pizza LLC dba Jet's Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/27/2026 | 72.9 | 72.0 | 70.4 | 0.03 | % | |||||||||||||||
| ^Peckett's Inc | Crop Production | Term Loan | Prime plus 2.75% | 7/27/2041 | 225.0 | 224.7 | 233.0 | 0.11 | % | |||||||||||||||
| ^JAG Unit 1, LLC dba Arooga's Grille House and Sports Bar | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/27/2026 | 125.0 | 121.9 | 104.1 | 0.05 | % | |||||||||||||||
| ^The Grasso Companies, LLC and Grasso Pavement Maintenance, LLC | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 7/26/2026 | 91.0 | 88.9 | 80.9 | 0.04 | % | |||||||||||||||
| ^Gino Italian American Deli and Meat Market Inc | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 7/25/2041 | 536.8 | 534.2 | 525.0 | 0.25 | % | |||||||||||||||
| ^My Sainath Inc dba Motel 6 | Accommodation | Term Loan | Prime plus 2.75% | 7/22/2041 | 305.4 | 303.7 | 308.6 | 0.15 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
94
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Robert G Larson State Farm Insurance | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 7/22/2026 | 22.5 | 21.9 | 18.7 | 0.01 | % | |||||||||||||||
| ^J and D Resources LLC dba Aqua Science | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/19/2026 | 130.5 | 127.3 | 109.7 | 0.05 | % | |||||||||||||||
| ^Robert P Daniels dba Ginger and Friend's Peppermint Village Gift Shop | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 7/18/2026 | 15.8 | 15.4 | 13.1 | 0.01 | % | |||||||||||||||
| Franklin Firm LLC dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/15/2041 | 173.3 | 172.9 | 171.6 | 0.08 | % | |||||||||||||||
| ^Billingsworks LLC dba Spoon Shine Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/15/2026 | 9.7 | 9.4 | 9.5 | — | % | |||||||||||||||
| ^Be Beautiful LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 7/14/2041 | 66.5 | 66.1 | 67.2 | 0.03 | % | |||||||||||||||
| ^Takeuchi Commercial Cleaning Services, LLC dba We Clean San Diego | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/13/2026 | 46.3 | 45.1 | 38.5 | 0.02 | % | |||||||||||||||
| ^Jacob Rugs LLC dba Rugs Outlet | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 7/13/2026 | 65.6 | 64.0 | 64.5 | 0.03 | % | |||||||||||||||
| ^RM Hawkins LLC dba Pure Water Tech West | Nonstore Retailers | Term Loan | Prime plus 2.75% | 7/7/2026 | 50.0 | 48.9 | 46.5 | 0.02 | % | |||||||||||||||
| ^Dino Smiles Children's Cosmetic Dentistry | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 7/7/2026 | 14.3 | 13.9 | 12.2 | 0.01 | % | |||||||||||||||
| Nevey's LLC dba Stark Food III | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/30/2041 | 293.9 | 246.6 | 254.5 | 0.12 | % | |||||||||||||||
| ^P L H Pharmaco Inc dba Farmacia San Jose | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 6/30/2026 | 175.0 | 169.7 | 165.5 | 0.08 | % | |||||||||||||||
| ^Soregard Inc | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 6/30/2041 | 278.8 | 276.8 | 260.2 | 0.12 | % | |||||||||||||||
| ^Martin Inventory Management LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/30/2026 | 105.8 | 102.5 | 102.8 | 0.05 | % | |||||||||||||||
| ^Desert Tacos LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2026 | 98.8 | 98.3 | 91.3 | 0.04 | % | |||||||||||||||
| ^VMA Technologies LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/30/2026 | 22.5 | 21.8 | 18.4 | 0.01 | % | |||||||||||||||
| ^Corning Lumber Company Inc and Frank R Close and Son Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/30/2029 | 195.5 | 191.3 | 193.4 | 0.09 | % | |||||||||||||||
| ^Castone Creations Inc | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 6/29/2026 | 87.5 | 84.8 | 74.7 | 0.04 | % | |||||||||||||||
| ^WGI, LLC dba Williams Grant Inn | Accommodation | Term Loan | Prime plus 2.75% | 6/29/2041 | 131.3 | 130.3 | 128.8 | 0.06 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
95
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^O.D.S. Inc dba Four Seasons Health & Racquet and Step 'N' Motion, Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/29/2026 | 140.0 | 135.7 | 117.5 | 0.06 | % | |||||||||||||||
| ^KWG Industries, LLC dba Peterson & Marsh Metal Industries | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 6/29/2041 | 304.5 | 302.8 | 303.9 | 0.15 | % | |||||||||||||||
| ^Ninsa LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/29/2041 | 112.5 | 111.7 | 115.5 | 0.06 | % | |||||||||||||||
| ^E & P Holdings 1 LLC and Evans & Paul LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 6/28/2026 | 125.0 | 121.4 | 105.9 | 0.05 | % | |||||||||||||||
| ^MaidPro Marin dba MaidPro | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/28/2026 | 17.6 | 17.0 | 14.3 | 0.01 | % | |||||||||||||||
| ^Edge Pest Control LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/27/2026 | 750.0 | 726.9 | 612.0 | 0.29 | % | |||||||||||||||
| ^All Printing Solutions, Inc. dba Pryntcomm | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 6/27/2041 | 545.6 | 542.4 | 513.8 | 0.25 | % | |||||||||||||||
| ^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast | Accommodation | Term Loan | Prime plus 2.75% | 6/24/2041 | 101.3 | 100.5 | 103.9 | 0.05 | % | |||||||||||||||
| ^Jumbomarkets Inc dba Rines Jumbomarkets | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/24/2026 | 50.0 | 48.5 | 40.8 | 0.02 | % | |||||||||||||||
| ^Yellow Cab Company of Kissimmee Inc | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 6/24/2041 | 56.8 | 56.4 | 53.2 | 0.03 | % | |||||||||||||||
| ^El Basha Inc dba RPM West San Fernando Valley | Real Estate | Term Loan | Prime plus 2.75% | 6/24/2026 | 22.5 | 20.8 | 17.5 | 0.01 | % | |||||||||||||||
| ^Long Island Comedy LLC dba Governors and New York Comedy, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/23/2041 | 187.5 | 186.2 | 184.4 | 0.09 | % | |||||||||||||||
| ^Visual Advantage LLC dba Signs Now Perryberg | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/23/2041 | 91.3 | 90.6 | 88.7 | 0.04 | % | |||||||||||||||
| Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/23/2041 | 375.0 | 375.0 | 370.9 | 0.18 | % | |||||||||||||||
| ^SNS of Central Alabama, LLC dba Steak N Shake | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/21/2026 | 57.5 | 55.7 | 50.2 | 0.02 | % | |||||||||||||||
| ^Italian Heritage Tile and Stone Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/20/2026 | 62.5 | 60.6 | 51.0 | 0.02 | % | |||||||||||||||
| ^Evergreen Investment & Property Management LLC ,Universal Kidney Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/20/2041 | 1,250.0 | 1,243.2 | 1,261.1 | 0.60 | % | |||||||||||||||
| ^Bagelicious, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/17/2026 | 54.6 | 52.9 | 44.8 | 0.02 | % | |||||||||||||||
| ^T and B Boots Inc dba Takken's Shoes | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 6/17/2026 | 225.0 | 218.4 | 217.4 | 0.10 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
96
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^NKJ Lusby Donuts LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/16/2026 | 22.5 | 21.8 | 18.4 | 0.01 | % | |||||||||||||||
| ^Winegirl Wines LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 6/16/2026 | 11.3 | 10.9 | 10.9 | 0.01 | % | |||||||||||||||
| ^Blue Eagle Transport Inc, Greeneagle Transport Inc | Couriers and Messengers | Term Loan | Prime plus 2.75% | 6/16/2026 | 583.0 | 560.1 | 471.5 | 0.23 | % | |||||||||||||||
| ^Jai-Alexia Consulting, Inc. | Couriers and Messengers | Term Loan | Prime plus 2.75% | 6/15/2026 | 11.8 | 11.5 | 9.6 | — | % | |||||||||||||||
| ^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares | Social Assistance | Term Loan | Prime plus 2% | 6/15/2041 | 515.3 | 511.2 | 484.8 | 0.23 | % | |||||||||||||||
| ^Strag Industries LLC dba Meineke Car Care Center 841 | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/15/2026 | 15.0 | 14.5 | 13.3 | 0.01 | % | |||||||||||||||
| ^Luv 2 Play AZ LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/10/2026 | 62.5 | 60.6 | 58.5 | 0.03 | % | |||||||||||||||
| ^Refoleen Inc dba Spice and Tea Exchange | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/10/2026 | 85.0 | 83.9 | 70.7 | 0.03 | % | |||||||||||||||
| ^VBGB Uptown, LLC dba VBGB Beer Hall & Garden | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/8/2026 | 84.0 | 81.4 | 68.5 | 0.03 | % | |||||||||||||||
| ^ScimTech Industries Inc dba Archer Aerospace | Computer and Electronic Product Manufacturing | Term Loan | Prime plus 2.75% | 6/6/2026 | 12.0 | 11.6 | 9.8 | — | % | |||||||||||||||
| ^Larry H. Patterson and Rainbow Movers, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 6/6/2026 | 22.5 | 21.8 | 18.5 | 0.01 | % | |||||||||||||||
| ^Solvit Inc and Solvit North Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/3/2026 | 250.0 | 242.3 | 214.7 | 0.10 | % | |||||||||||||||
| ^AP5 LLC dba Krauser's Food Store | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/2/2041 | 242.5 | 240.8 | 239.1 | 0.11 | % | |||||||||||||||
| ^ATI Jet Inc | Air Transportation | Term Loan | Prime plus 2.75% | 5/31/2026 | 518.8 | 499.9 | 441.7 | 0.21 | % | |||||||||||||||
| ^Farmer Boy Diner Inc dba Farmer Boy Diner & Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/31/2026 | 50.0 | 48.1 | 48.3 | 0.02 | % | |||||||||||||||
| Angelo Faia dba AVF Construction | Construction of Buildings | Term Loan | Prime plus 2.75% | 5/27/2041 | 100.0 | 98.7 | 97.3 | 0.05 | % | |||||||||||||||
| ^Premier Athletic Center of Ohio, Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/27/2026 | 87.5 | 84.3 | 84.6 | 0.04 | % | |||||||||||||||
| ^MNM Printing and Marketing Solutions LLC dba AlphaGraphics of Saint Louis | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/27/2026 | 18.8 | 18.1 | 15.2 | 0.01 | % | |||||||||||||||
| ^Mersada Holdings LLC | Nonstore Retailers | Term Loan | Prime plus 2.75% | 5/26/2026 | 337.5 | 325.0 | 326.1 | 0.16 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
97
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Jack Frost Firewood Inc. and David Dubinsky | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/26/2041 | 206.3 | 204.5 | 200.1 | 0.10 | % | |||||||||||||||
| ^Southwest Division Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 5/26/2026 | 8.3 | 7.9 | 7.1 | — | % | |||||||||||||||
| ^International Kitchen Supply LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 5/25/2026 | 186.8 | 179.8 | 160.3 | 0.08 | % | |||||||||||||||
| ^PennyLion LLC dba Creamistry | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/25/2026 | 81.0 | 81.0 | 70.1 | 0.03 | % | |||||||||||||||
| ^Groth Lumber Co. Inc. dba True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/25/2026 | 22.5 | 21.7 | 21.7 | 0.01 | % | |||||||||||||||
| ^Island Life Graphics Inc dba FASTSIGNS #576 | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 5/24/2026 | 22.5 | 21.7 | 18.5 | 0.01 | % | |||||||||||||||
| ^Powerspec Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/24/2026 | 87.5 | 84.3 | 71.0 | 0.03 | % | |||||||||||||||
| ^Horseshoe Barbecue, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/23/2029 | 15.0 | 14.2 | 14.4 | 0.01 | % | |||||||||||||||
| ^Pro Auto Repair LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/20/2026 | 7.5 | 7.2 | 6.9 | — | % | |||||||||||||||
| ^Elderfriend Inc dba Granny Nannies dba GN Live Scan | Social Assistance | Term Loan | Prime plus 2.75% | 5/20/2026 | 12.8 | 12.3 | 10.3 | — | % | |||||||||||||||
| ^CM Lab Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/20/2026 | 172.6 | 169.5 | 156.1 | 0.07 | % | |||||||||||||||
| ^National Air Cargo Holdings Inc | Air Transportation | Term Loan | Prime plus 2.75% | 5/20/2026 | 1,250.0 | 1,205.2 | 1,174.9 | 0.56 | % | |||||||||||||||
| ^J&A Laundromat Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/18/2026 | 67.5 | 65.0 | 56.3 | 0.03 | % | |||||||||||||||
| ^HBA LLC dba Palmetto Twist-Vista | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/18/2026 | 22.5 | 21.7 | 18.7 | 0.01 | % | |||||||||||||||
| ^Dedicated Incorporated | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/18/2041 | 46.5 | 46.1 | 45.9 | 0.02 | % | |||||||||||||||
| ^Studio Find It Georgia Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/13/2026 | 22.5 | 21.7 | 18.9 | 0.01 | % | |||||||||||||||
| ^FJN Catering Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/13/2041 | 262.5 | 260.7 | 266.9 | 0.13 | % | |||||||||||||||
| ^LED Lighting Enterprises LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 5/13/2026 | 22.5 | 21.7 | 18.8 | 0.01 | % | |||||||||||||||
| ^J. Harris Trucking, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 5/13/2026 | 60.0 | 41.6 | 37.4 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
98
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Luv 2 Play OC Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 5/12/2026 | 62.5 | 62.5 | 52.6 | 0.03 | % | |||||||||||||||
| ^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano | Social Assistance | Term Loan | Prime plus 2.75% | 5/12/2041 | 132.5 | 131.4 | 129.1 | 0.06 | % | |||||||||||||||
| ^The Delon Group LLC dba I Love Juice Bar | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/12/2026 | 55.0 | 53.0 | 44.6 | 0.02 | % | |||||||||||||||
| ^Sabir Inc. dba Bear Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/11/2041 | 123.8 | 122.9 | 124.1 | 0.06 | % | |||||||||||||||
| ^Gator D'Lites LLC dba D'Lites Emporium | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 5/5/2026 | 22.5 | 21.7 | 18.2 | 0.01 | % | |||||||||||||||
| ^Warner Home Comfort, LLC dba Smith Piping | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 4/29/2041 | 82.5 | 81.7 | 80.4 | 0.04 | % | |||||||||||||||
| ^Keller, Fishback & Jackson LLP | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/29/2026 | 131.8 | 125.1 | 125.5 | 0.06 | % | |||||||||||||||
| ^Marc S. Rosenberg P.C. dba Mammuth and Rosenberg | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/29/2026 | 22.5 | 21.5 | 18.1 | 0.01 | % | |||||||||||||||
| ^May-Craft Fiberglass Products Inc | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 4/29/2041 | 247.5 | 245.0 | 253.3 | 0.12 | % | |||||||||||||||
| ^Alpha Omega Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 4/29/2041 | 175.8 | 174.7 | 180.6 | 0.09 | % | |||||||||||||||
| ^Scoler LLC dba Gold's Gym | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/29/2026 | 262.5 | 251.1 | 222.2 | 0.11 | % | |||||||||||||||
| ^Loriet LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 4/29/2026 | 7.5 | 7.2 | 6.1 | — | % | |||||||||||||||
| ^La Nopalera Mexicano 2, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/29/2026 | 125.5 | 123.0 | 123.5 | 0.06 | % | |||||||||||||||
| ^Euro Car Miami LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 4/29/2026 | 62.5 | 59.9 | 60.1 | 0.03 | % | |||||||||||||||
| ^Hard Exercise Works Winter Park LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/29/2026 | 40.8 | 39.0 | 32.8 | 0.02 | % | |||||||||||||||
| ^Empowerschool LLC and Empower Autism Academy, LLC | Social Assistance | Term Loan | Prime plus 2.75% | 4/29/2041 | 151.9 | 150.4 | 155.2 | 0.07 | % | |||||||||||||||
| ^Inner Beauty Salon and Suite LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/28/2041 | 65.0 | 64.4 | 65.8 | 0.03 | % | |||||||||||||||
| ^Atlantic Restaurant Associates LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/28/2041 | 262.5 | 259.9 | 263.0 | 0.13 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
99
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Costume World Inc | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 4/28/2041 | 1,250.0 | 1,239.6 | 1,281.2 | 0.61 | % | |||||||||||||||
| ^Pecos Inn LLC dba Econo Lodge | Accommodation | Term Loan | Prime plus 2.75% | 4/28/2041 | 677.5 | 670.8 | 678.0 | 0.32 | % | |||||||||||||||
| ^North American Manufacturing Company | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 4/28/2026 | 160.0 | 153.1 | 153.6 | 0.07 | % | |||||||||||||||
| ^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma | Real Estate | Term Loan | Prime plus 2.75% | 4/28/2026 | 9.0 | 8.6 | 7.2 | — | % | |||||||||||||||
| ^Knowledge First Inc dba Magic Years of Learning | Social Assistance | Term Loan | Prime plus 2.75% | 4/27/2026 | 80.0 | 76.5 | 71.8 | 0.03 | % | |||||||||||||||
| ^Green Country Filter Manufacturing LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 4/27/2026 | 84.3 | 80.6 | 69.8 | 0.03 | % | |||||||||||||||
| ^Accent Comfort Services, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 4/26/2026 | 90.0 | 86.1 | 72.5 | 0.03 | % | |||||||||||||||
| ^Homecare Casa Rhoda 123 Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2% | 4/26/2041 | 675.0 | 667.4 | 642.3 | 0.31 | % | |||||||||||||||
| ^McIntosh Trail Management Services Organization Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/22/2041 | 425.0 | 420.8 | 434.9 | 0.21 | % | |||||||||||||||
| ^Automotive Core Recycling, LLC and 828 Old Colony Road, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 4/22/2041 | 250.0 | 247.5 | 234.1 | 0.11 | % | |||||||||||||||
| ^AAA Mill Direct, Inc. dba Carpet Mill Outlets | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 4/21/2026 | 7.9 | 7.5 | 7.6 | — | % | |||||||||||||||
| ^Jande Graphics LLC dba FastSigns #103201 | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/21/2026 | 56.0 | 53.6 | 45.1 | 0.02 | % | |||||||||||||||
| ^Miguel Fernando Borda, P.A. dba BGR Dental | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/15/2026 | 22.5 | 21.5 | 18.7 | 0.01 | % | |||||||||||||||
| ^LE & JS dba Laredo Mercado Y Carniceria | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 4/13/2026 | 20.0 | 19.1 | 16.1 | 0.01 | % | |||||||||||||||
| ^Sushiya Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/12/2026 | 87.5 | 83.8 | 73.6 | 0.04 | % | |||||||||||||||
| ^Sierra Foothill Cremation & Funeral Service, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/7/2026 | 53.0 | 50.8 | 42.8 | 0.02 | % | |||||||||||||||
| ^Waterfalls Quick Lube LLC and Veracruz Shabo LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/6/2041 | 271.3 | 269.3 | 270.3 | 0.13 | % | |||||||||||||||
| ^KNS Early Learning Academy LLC | Social Assistance | Term Loan | Prime plus 2.75% | 4/6/2041 | 51.0 | 50.5 | 49.4 | 0.02 | % | |||||||||||||||
| ^Duke's Cleaners Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/31/2026 | 47.0 | 44.7 | 41.0 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
100
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Cameo Carter, MD A Professional Corporation | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/31/2026 | 75.0 | 71.3 | 60.0 | 0.03 | % | |||||||||||||||
| ^Farhad Brothers LLC dba Lulu's Pizzeria & Family Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2026 | 66.8 | 59.6 | 50.1 | 0.02 | % | |||||||||||||||
| ^Christian Soderquist dba Soderquist Plumbing and Heating LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/31/2041 | 56.8 | 56.1 | 57.7 | 0.03 | % | |||||||||||||||
| ^Vehicle Safety Supply LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/31/2026 | 22.5 | 21.4 | 18.0 | 0.01 | % | |||||||||||||||
| ^Men of Steel Enterprises LLC and Vogelbacher Properties LLC | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 3/31/2041 | 393.5 | 389.0 | 362.2 | 0.17 | % | |||||||||||||||
| ^Gill Express Inc and Blue Speed LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/31/2041 | 518.0 | 512.1 | 505.3 | 0.24 | % | |||||||||||||||
| ^Dana A. Farley dba Independent Cabinets | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 3/31/2041 | 67.5 | 66.7 | 68.9 | 0.03 | % | |||||||||||||||
| ^NOSO Development, LLC | Construction of Buildings | Term Loan | Prime plus 2.75% | 3/30/2026 | 187.5 | 178.2 | 149.9 | 0.07 | % | |||||||||||||||
| ^Wyldewood Cellars, Inc. | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 3/30/2041 | 986.8 | 985.8 | 936.7 | 0.45 | % | |||||||||||||||
| ^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn | Accommodation | Term Loan | Prime plus 2.75% | 3/30/2026 | 22.5 | 21.6 | 21.7 | 0.01 | % | |||||||||||||||
| ^Beale Street Blues Company-West Palm Beach, LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 3/30/2026 | 93.8 | 89.1 | 77.1 | 0.04 | % | |||||||||||||||
| ^Tom Sawyer Country Restaurant LLC and AM 3208 LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/30/2041 | 257.5 | 254.6 | 258.5 | 0.12 | % | |||||||||||||||
| ^MTS Car Service LLC | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 3/30/2026 | 10.5 | 10.0 | 8.4 | — | % | |||||||||||||||
| ^Atlantis of Daytona LLC and Pierre Mamane and Eva Mamane | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2% | 3/29/2041 | 525.0 | 513.5 | 505.1 | 0.24 | % | |||||||||||||||
| ^Barrocas Gym LLC dba Snap Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/29/2026 | 22.5 | 21.1 | 19.1 | 0.01 | % | |||||||||||||||
| ^Vinmar Inc. dba Locanda Portofino | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/29/2026 | 81.3 | 77.2 | 65.0 | 0.03 | % | |||||||||||||||
| ^Lust for Life Footwear, LLC | Leather and Allied Product Manufacturing | Term Loan | Prime plus 2.75% | 3/29/2026 | 375.0 | 356.4 | 299.9 | 0.14 | % | |||||||||||||||
| ^Marathon Engineering Corporation | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 3/28/2041 | 45.0 | 44.5 | 44.7 | 0.02 | % | |||||||||||||||
| ^PHCDC1 LLC dba Quarter + Glory and Public House Collective, Corp. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/28/2026 | 50.0 | 47.5 | 42.5 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
101
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^ReNew Interior Surface Cleaning LLC dba Randy's Carpet Care and Upholstery | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/28/2026 | 12.4 | 11.8 | 11.5 | 0.01 | % | |||||||||||||||
| ^RCB Enterprises, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/25/2026 | 56.3 | 53.5 | 45.0 | 0.02 | % | |||||||||||||||
| ^Revolution Physical Therapy LLC dba Apex Network Physical Therapy | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/25/2026 | 22.5 | 21.6 | 18.7 | 0.01 | % | |||||||||||||||
| ^Excel RP Inc | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 3/25/2026 | 125.0 | 118.8 | 106.7 | 0.05 | % | |||||||||||||||
| ^Lowgap Grocery & Grill LLC | General Merchandise Stores | Term Loan | Prime plus 2.75% | 3/24/2041 | 167.5 | 165.6 | 171.1 | 0.08 | % | |||||||||||||||
| ^ActKnowledge, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/24/2026 | 125.0 | 118.8 | 119.1 | 0.06 | % | |||||||||||||||
| ^International Construction Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 3/24/2041 | 50.0 | 49.5 | 48.4 | 0.02 | % | |||||||||||||||
| ^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/24/2026 | 50.0 | 47.5 | 46.2 | 0.02 | % | |||||||||||||||
| ^Acton Hardware LLC and Mark Allgood & Jamie Allgood | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/24/2041 | 498.6 | 492.9 | 472.6 | 0.23 | % | |||||||||||||||
| ^The Youth Fountain LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/23/2026 | 47.5 | 45.2 | 38.0 | 0.02 | % | |||||||||||||||
| ^Magnation Corporation and Misha Family Trust | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/22/2041 | 101.3 | 100.4 | 103.7 | 0.05 | % | |||||||||||||||
| ^growth.period LLC and Potomac Recruiting LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/21/2026 | 156.3 | 148.5 | 124.9 | 0.06 | % | |||||||||||||||
| ^Precious Care LLC and Precious Care Management LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/21/2026 | 557.5 | 529.8 | 449.0 | 0.21 | % | |||||||||||||||
| ^Media Capital Partners, Inc | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 3/21/2026 | 22.5 | 21.4 | 18.0 | 0.01 | % | |||||||||||||||
| ^Pro Tech Technology LLC | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 3/18/2026 | 7.5 | 7.1 | 6.0 | — | % | |||||||||||||||
| ^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/18/2041 | 80.8 | 79.8 | 81.5 | 0.04 | % | |||||||||||||||
| ^ERT Group Inc and Curt's Tools Inspection Inc | Support Activities for Mining | Term Loan | Prime plus 2.75% | 3/18/2041 | 1,250.0 | 1,237.6 | 1,216.3 | 0.58 | % | |||||||||||||||
| ^Kekoa Enterprises Inc dba Signarama Sandy | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/18/2026 | 49.5 | 47.0 | 39.6 | 0.02 | % | |||||||||||||||
| ^Mariam Diner Inc dba Country Kitchen Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/18/2026 | 52.5 | 49.9 | 42.0 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
102
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^Brian T Rice dba BD Logging | Forestry and Logging | Term Loan | Prime plus 2.75% | 3/17/2026 | 15.8 | 15.0 | 13.5 | 0.01 | % | |||||||||||||||
| ^Auto and Property Insurance Solutions | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 3/16/2026 | 16.4 | 15.4 | 12.9 | 0.01 | % | |||||||||||||||
| ^Demand Printing Solutions Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 3/16/2026 | 21.8 | 20.7 | 19.5 | 0.01 | % | |||||||||||||||
| ^LAN Doctors Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/16/2026 | 55.0 | 52.3 | 52.4 | 0.03 | % | |||||||||||||||
| ^Evergreen Pallet LLC and Evergreen Recycle LLC | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 3/16/2026 | 1,039.3 | 988.2 | 882.4 | 0.42 | % | |||||||||||||||
| ^K Soles Corp dba Max Collections | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/16/2026 | 22.5 | 21.4 | 18.0 | 0.01 | % | |||||||||||||||
| ^R & D Enterprises Inc dba My Pool Man | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/15/2026 | 50.0 | 47.5 | 40.0 | 0.02 | % | |||||||||||||||
| ^HEWZ, LLC dba Hard Exercise Works | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/14/2026 | 22.5 | 21.4 | 18.0 | 0.01 | % | |||||||||||||||
| ^Mustafa Inc and Raouf Properties LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/14/2041 | 75.0 | 74.1 | 75.4 | 0.04 | % | |||||||||||||||
| ^Country Paint and Hardware Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/11/2026 | 87.4 | 83.0 | 71.5 | 0.03 | % | |||||||||||||||
| ^Wilban LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/11/2026 | 105.0 | 100.2 | 94.8 | 0.05 | % | |||||||||||||||
| ^ABCs & 123s Infant and Child Care Center LP | Social Assistance | Term Loan | Prime plus 2.75% | 3/11/2026 | 11.3 | 10.7 | 9.0 | — | % | |||||||||||||||
| ^Accuair Control Systems LLC dba Accuair Suspension | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 3/11/2026 | 150.0 | 142.6 | 122.8 | 0.06 | % | |||||||||||||||
| ^Dupre Capital LLC dba Fastsigns | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 3/11/2026 | 58.4 | 55.5 | 46.7 | 0.02 | % | |||||||||||||||
| ^Magill Truck Line LLC and Jeff J. Ralls | Truck Transportation | Term Loan | Prime plus 2.75% | 3/11/2029 | 210.8 | 203.6 | 183.0 | 0.09 | % | |||||||||||||||
| ^Fayette Computer Consulting Company | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/10/2026 | 22.5 | 21.4 | 18.9 | 0.01 | % | |||||||||||||||
| ^State Painting & Decorating Co., Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/10/2026 | 103.8 | 98.6 | 83.0 | 0.04 | % | |||||||||||||||
| ^B.P.T.M. of NV LLC and Agentis Bros., LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/9/2041 | 525.0 | 519.0 | 513.8 | 0.25 | % | |||||||||||||||
| ^Step Up Academy of the Arts LLC | Educational Services | Term Loan | Prime plus 2.75% | 3/9/2026 | 8.0 | 7.6 | 6.4 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
103
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type of Investment | Interest Rate (2) | Maturity | Principal | Cost | Fair Value | % of Net Assets | ||||||||||||||||
| ^A & A Auto Care LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/9/2026 | 12.2 | 11.5 | 11.0 | 0.01 | % | |||||||||||||||
| ^Faith Summit Supply Inc dba Summit Supply and Summit True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/9/2026 | 22.5 | 21.4 | 19.4 | 0.01 | % | |||||||||||||||
| ^Swerve Salon LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/8/2026 | 79.0 | 75.1 | 63.2 | 0.03 | % | |||||||||||||||
| ^J & W Hardwood Flooring Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/7/2026 | 7.5 | 7.1 | 6.0 | — | % | |||||||||||||||
| ^Labmates LLC and POV Holdings LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 3/4/2041 | 109.3 | 108.0 | 111.6 | 0.05 | % | |||||||||||||||
| ^Hueston and Company CPA LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/4/2026 | 8.3 | 7.7 | 6.7 | — | % | |||||||||||||||
| ^Almost Home Daycare LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/3/2026 | 50.0 | 47.5 | 46.3 | 0.02 | % | |||||||||||||||
| ^Miles of Smiles Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/2/2026 | 93.5 | 90.5 | 77.9 | 0.04 | % | |||||||||||||||
| ^Johnson & Dugan Insurance Services Corp | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 2/28/2026 | 62.5 | 59.0 | 49.7 | 0.02 | % | |||||||||||||||
| ^Living Essentials HVAC Corp | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 2/28/2026 | 15.0 | 14.2 | 12.1 | 0.01 | % | |||||||||||||||
| ^Consulting Solutions, Inc. and Mark Luciani | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/28/2026 | 11.3 | 10.6 | 10.4 | — | % | |||||||||||||||
| ^Doxa Deo Inc dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2026 | 105.0 | 103.5 | 90.3 | 0.04 | % | |||||||||||||||
| ^The River Beas, LLC dba Subway and Punam Singh | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2041 | 135.9 | 134.1 | 136.7 | 0.07 | % | |||||||||||||||
| ^Drug Detection Laboratories, Inc. and Minh Tran | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/28/2026 | 19.8 | 18.7 | 16.0 | 0.01 | % | |||||||||||||||
| ^Powerpits CS1, LLC dba Pita Pit | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2026 | 18.8 | 17.7 | 15.8 | 0.01 | % | |||||||||||||||
| ^Blackstones Hairdressing LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/23/2026 | 52.0 | 49.4 | 42.0 | 0.02 | % | |||||||||||||||
| ^Aaradhya LLC dba Market Square Laundry | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/23/2026 | 80.0 | 75.5 | 63.5 | 0.03 | % | |||||||||||||||
| ^R-No-Landscaping LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/19/2026 | 8.3 | 7.8 | 6.7 | — | % | |||||||||||||||
| ^BER Enterprise 332 Inc dba Edible Arrangements | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/19/2026 | 22.5 | 21.3 | 18.1 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
104
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^R & K Contracting Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 2/18/2026 | 15.8 | 15.0 | 14.5 | 0.01 | % | |||||||||||||||
| ^Pacific Coast Medical Group LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/17/2026 | 245.0 | 231.3 | 231.9 | 0.11 | % | |||||||||||||||
| ^B for Blonde, LLC dba Blo Blow Dry Bar | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/12/2026 | 62.0 | 59.3 | 50.0 | 0.02 | % | |||||||||||||||
| ^Gilmore Heights Dental Holdings, LTD and Chas Rob LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/12/2029 | 310.3 | 298.6 | 272.7 | 0.13 | % | |||||||||||||||
| ^Ei3 Corporation | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/12/2026 | 326.9 | 308.6 | 309.5 | 0.15 | % | |||||||||||||||
| ^Jersey Shore Marina & Boat Sales, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/12/2041 | 625.0 | 617.7 | 638.2 | 0.31 | % | |||||||||||||||
| ^Base USA, Inc. | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 2/2/2026 | 50.0 | 47.2 | 47.4 | 0.02 | % | |||||||||||||||
| ^Nowatzke Service Center Inc dba Nowatzke Truck and Trailer | Repair and Maintenance | Term Loan | Prime plus 2.75% | 1/29/2026 | 105.0 | 98.6 | 98.9 | 0.05 | % | |||||||||||||||
| ^Zouk Ltd dba Palma | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/29/2026 | 22.5 | 21.1 | 21.2 | 0.01 | % | |||||||||||||||
| ^Tammy Lavertue | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 1/28/2026 | 11.3 | 10.5 | 10.2 | — | % | |||||||||||||||
| ^SuzyQue's LLC dba SuzyQue's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/28/2026 | 22.5 | 21.2 | 21.2 | 0.01 | % | |||||||||||||||
| ^Wildflour Bakery & Cafe LLC | Social Assistance | Term Loan | Prime plus 2.75% | 1/28/2026 | 62.5 | 58.6 | 57.2 | 0.03 | % | |||||||||||||||
| ^New Image Building Services, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 1/19/2026 | 83.1 | 78.0 | 69.1 | 0.03 | % | |||||||||||||||
| ^Oak Tree Storage LLC | Other Information Services | Term Loan | Prime plus 2.75% | 1/19/2026 | 78.8 | 73.8 | 63.4 | 0.03 | % | |||||||||||||||
| ^Gendron Funeral and Cremation Services, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 1/11/2041 | 112.5 | 109.4 | 113.0 | 0.05 | % | |||||||||||||||
| ^Dolarian Realty LLC and OV's Restaurant Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/5/2041 | 67.8 | 66.9 | 69.1 | 0.03 | % | |||||||||||||||
| ^Lemonberry Food Stores Inc dba Lemonberry Frozen Yogurt | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/29/2025 | 112.5 | 104.8 | 91.8 | 0.04 | % | |||||||||||||||
| ^MCF Forte LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/29/2025 | 18.8 | 17.5 | 14.9 | 0.01 | % | |||||||||||||||
| ^Panditos LLC dba White Lotus Home | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 12/28/2025 | 15.9 | 14.8 | 12.5 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
105
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Bright Dialysis LLC and Ft Pierce Kidney Care LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/28/2025 | 1,250.0 | 1,164.4 | 982.9 | 0.47 | % | |||||||||||||||
| ^V2 Tango LLC dba Palette 22 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/23/2025 | 250.0 | 232.9 | 202.5 | 0.10 | % | |||||||||||||||
| ^Ridge Road Equestrian LLC dba Ricochet Ridge Ranch Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/23/2040 | 102.5 | 100.8 | 100.7 | 0.05 | % | |||||||||||||||
| ^800 on the Trax LLC and Matrix Z LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 12/23/2040 | 240.0 | 237.2 | 235.1 | 0.11 | % | |||||||||||||||
| ^Optima Health Care Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/23/2025 | 62.5 | 58.2 | 58.4 | 0.03 | % | |||||||||||||||
| ^B&B Organics LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 12/22/2040 | 375.0 | 368.9 | 381.0 | 0.18 | % | |||||||||||||||
| ^Joyce Outdoor Advertising Chicago LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/22/2040 | 300.0 | 297.0 | 292.6 | 0.14 | % | |||||||||||||||
| ^The LAX Shop Inc | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 12/22/2025 | 125.0 | 91.4 | 91.6 | 0.04 | % | |||||||||||||||
| ^Premier Athletic Center of Ohio Inc. and Gates Investments and Wade Gates | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/22/2028 | 882.0 | 840.0 | 848.3 | 0.41 | % | |||||||||||||||
| ^Hattingh Incorporated dba Prosthetic Care Facility | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/21/2025 | 18.0 | 16.8 | 14.9 | 0.01 | % | |||||||||||||||
| ^G.W. Fitness Centers, LLC and J.G. Fitness LLC and NP Gym LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/18/2040 | 1,025.0 | 1,008.3 | 1,041.3 | 0.50 | % | |||||||||||||||
| ^Trip Consultants U.S.A. Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/18/2025 | 175.0 | 163.0 | 137.1 | 0.07 | % | |||||||||||||||
| ^Jay Kevin Gremillion dba Dino Smiles Children's Cosmetic Dentistry | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/18/2025 | 73.0 | 69.8 | 60.5 | 0.03 | % | |||||||||||||||
| ^Accent Tag and Label Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 12/18/2040 | 665.8 | 652.2 | 649.1 | 0.31 | % | |||||||||||||||
| ^Abbondanza Market LLC dba Hampton Falls Village Market | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/18/2025 | 73.8 | 62.7 | 54.7 | 0.03 | % | |||||||||||||||
| ^Capital Scrap Metal LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/18/2025 | 36.0 | 33.5 | 28.7 | 0.01 | % | |||||||||||||||
| ^Labmates LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 12/18/2040 | 162.5 | 159.9 | 165.1 | 0.08 | % | |||||||||||||||
| ^Sourceco Limited Liability Company | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/17/2025 | 62.5 | 58.3 | 51.0 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
106
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Mustafa Inc dba Adiba Grocery | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/17/2025 | 103.8 | 96.7 | 96.2 | 0.05 | % | |||||||||||||||
| ^Learning Skills LLC and Christopher Shrope | Educational Services | Term Loan | Prime plus 2.75% | 12/17/2025 | 10.8 | 10.1 | 8.5 | — | % | |||||||||||||||
| ^New York Home Health Care Equipment, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/16/2025 | 875.0 | 817.8 | 801.9 | 0.38 | % | |||||||||||||||
| ^Moments to Remember USA LLC dba Retain Loyalty | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/16/2025 | 75.0 | 70.0 | 65.3 | 0.03 | % | |||||||||||||||
| ^Swalm Sreet LLC and New York Home Health Care Equipment LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/16/2040 | 375.0 | 370.1 | 376.1 | 0.18 | % | |||||||||||||||
| ^JAG Unit 1, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/16/2025 | 250.0 | 233.3 | 196.2 | 0.09 | % | |||||||||||||||
| ^D&G Capital LLC dba Miami Grill 277 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/16/2025 | 83.8 | 87.2 | 80.6 | 0.04 | % | |||||||||||||||
| ^Abitino's JFK LLC dba Abitino's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/16/2022 | 125.0 | 113.8 | 100.8 | 0.05 | % | |||||||||||||||
| ^SDA Holdings LLC and Les Cheveux Salon Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/15/2040 | 428.8 | 421.1 | 412.2 | 0.20 | % | |||||||||||||||
| ^Evans & Paul LLC and E&P Holdings I LLC | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2025 | 125.0 | 116.4 | 101.5 | 0.05 | % | |||||||||||||||
| ^Basista Family Limited Partnership and UPE, Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/14/2040 | 342.5 | 336.9 | 333.8 | 0.16 | % | |||||||||||||||
| ^DC Enterprises Ltd. dba Lakeview True Value | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 12/14/2025 | 22.5 | 21.0 | 19.9 | 0.01 | % | |||||||||||||||
| ^Tri-State Remodeling & Investments, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/11/2025 | 15.9 | 14.8 | 14.3 | 0.01 | % | |||||||||||||||
| ^Alexandra Afentoulides dba Vi's Pizza Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/11/2040 | 46.3 | 45.5 | 47.0 | 0.02 | % | |||||||||||||||
| ^AGR Foodmart Inc dba Nashua Road Mobil | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/11/2025 | 22.5 | 21.0 | 19.9 | 0.01 | % | |||||||||||||||
| ^ENI Inc. dba ENI Group, Inc | Other Information Services | Term Loan | Prime plus 2.75% | 12/11/2025 | 36.0 | 33.5 | 29.7 | 0.01 | % | |||||||||||||||
| ^Cares, Inc dba Dumpling Grounds Day Care Center | Social Assistance | Term Loan | Prime plus 2.75% | 12/10/2025 | 7.5 | 7.0 | 6.9 | — | % | |||||||||||||||
| ^Custom Exteriors, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/9/2025 | 100.0 | 93.2 | 81.5 | 0.04 | % | |||||||||||||||
| ^Sushiya, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/8/2025 | 108.8 | 101.3 | 88.9 | 0.04 | % | |||||||||||||||
| ^My Jewels, LLC dba The UPS Store #6712 | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/7/2025 | 56.3 | 33.2 | 27.9 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
107
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Food & Fuel Company LLC dba Lowery Food Mart | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/4/2040 | 122.5 | 120.5 | 124.2 | 0.06 | % | |||||||||||||||
| ^Blue Ox Trucking Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 12/4/2025 | 12.3 | 11.5 | 11.5 | 0.01 | % | |||||||||||||||
| ^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/4/2040 | 502.5 | 494.3 | 497.1 | 0.24 | % | |||||||||||||||
| ^American Campgrounds LLC dba Whit's End Campground | Accommodation | Term Loan | Prime plus 2.75% | 12/4/2040 | 293.0 | 288.2 | 290.4 | 0.14 | % | |||||||||||||||
| ^Tariq, LLC dba 76 Food Mart | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/2/2040 | 375.0 | 368.9 | 371.4 | 0.18 | % | |||||||||||||||
| ^401 JJS, Corp and G. Randazzo's Trattoria Corporation | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/1/2040 | 52.8 | 52.1 | 51.6 | 0.02 | % | |||||||||||||||
| ^Delta Aggregate, LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 11/30/2025 | 100.0 | 95.4 | 95.7 | 0.05 | % | |||||||||||||||
| ^Block and Grinder LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2025 | 200.0 | 187.5 | 186.6 | 0.09 | % | |||||||||||||||
| ^Hurshell Leon Dutton dba High Jump Party Rentals | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 11/30/2025 | 17.6 | 16.2 | 16.0 | 0.01 | % | |||||||||||||||
| ^Japp Business Inc dba Pick and Eat and Japp Drink Corp. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2025 | 125.0 | 115.6 | 102.7 | 0.05 | % | |||||||||||||||
| ^Smokeyard Inc dba Smokeyard BBQ and Chop Shop | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/30/2025 | 125.0 | 115.6 | 99.6 | 0.05 | % | |||||||||||||||
| ^Alejandro Rico dba Rico Motors and Golden West Motel and Alrima Co Inc | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 11/25/2040 | 146.3 | 143.9 | 148.4 | 0.07 | % | |||||||||||||||
| ^State Painting and Decorating Co Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/25/2025 | 100.0 | 92.5 | 77.8 | 0.04 | % | |||||||||||||||
| ^Medeiros Holdings Inc dba Outdoor Lighting Perspectives of the Triad | Electrical Equipment, Appliance, and Component Manufacturing | Term Loan | Prime plus 2.75% | 11/25/2025 | 22.5 | 20.7 | 17.4 | 0.01 | % | |||||||||||||||
| ^DWeb Studio, Inc. | Educational Services | Term Loan | Prime plus 2.75% | 11/25/2025 | 11.3 | 10.4 | 8.7 | — | % | |||||||||||||||
| ^Sambella Holdings, LLC and Strike Zone Entertainment Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/23/2040 | 750.0 | 747.7 | 764.6 | 0.37 | % | |||||||||||||||
| ^Play and Learn Child Care and School Inc | Social Assistance | Term Loan | Prime plus 2.75% | 11/23/2025 | 11.1 | 10.3 | 10.3 | — | % | |||||||||||||||
| ^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 11/20/2025 | 89.0 | 83.4 | 71.7 | 0.03 | % | |||||||||||||||
| ^Haven Hospitality Group Inc. dba Haven Gastropub | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/20/2025 | 132.5 | 122.6 | 105.2 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
108
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^CNYP 717 Irondequoit LLC and CNYP 2002 Ontario LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/20/2040 | 244.4 | 240.0 | 224.7 | 0.11 | % | |||||||||||||||
| ^S.B.B. Enterprises Inc dba Williamston Hardware | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/19/2040 | 108.8 | 106.6 | 100.1 | 0.05 | % | |||||||||||||||
| ^Key Pix Productions Inc. dba Air Bud Entertainment | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 11/18/2040 | 839.8 | 824.8 | 851.8 | 0.41 | % | |||||||||||||||
| ^Holloway & CO. P.L.L.C. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/16/2025 | 75.0 | 69.4 | 69.5 | 0.03 | % | |||||||||||||||
| ^RDT Enterprises, L.L.C. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/12/2025 | 22.5 | 20.8 | 19.5 | 0.01 | % | |||||||||||||||
| ^E.S.F.P. LLC dba Volusia Van and Storage | Truck Transportation | Term Loan | Prime plus 2.75% | 11/11/2025 | 91.3 | 84.4 | 72.8 | 0.03 | % | |||||||||||||||
| ^Green Life Lawnscapes LLC dba Green Life Lawn Care | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/6/2025 | 127.3 | 117.7 | 114.7 | 0.05 | % | |||||||||||||||
| ^Joseph Nich and Tina M. Nich dba Vic's Greenhouses | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 11/4/2025 | 62.5 | 58.2 | 58.3 | 0.03 | % | |||||||||||||||
| ^Jumbomarkets Inc dba Rines Jumbomarkets | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 11/4/2025 | 306.3 | 283.3 | 274.8 | 0.13 | % | |||||||||||||||
| ^Bisson Transportation Inc dba I & R Associates and Document Secutiry | Truck Transportation | Term Loan | Prime plus 2.75% | 10/30/2025 | 22.5 | 20.7 | 19.4 | 0.01 | % | |||||||||||||||
| ^Top Cat Ready Mix, LLC, Ples Investments LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 10/28/2025 | 711.3 | 653.6 | 572.5 | 0.27 | % | |||||||||||||||
| ^L.M. Jury Enterprises, Inc dba Midwest Monograms | Textile Product Mills | Term Loan | Prime plus 2.75% | 10/28/2025 | 77.0 | 70.6 | 60.8 | 0.03 | % | |||||||||||||||
| ^Windsor Direct Distribution LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 10/26/2025 | 14.3 | 13.0 | 11.0 | 0.01 | % | |||||||||||||||
| ^Financial Network Recovery | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/26/2025 | 40.0 | 36.8 | 30.9 | 0.01 | % | |||||||||||||||
| ^Insurance Fire & Water Restorations, LLC | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 10/23/2025 | 22.5 | 20.7 | 19.6 | 0.01 | % | |||||||||||||||
| ^Jacksonville Beauty Institute Inc. | Educational Services | Term Loan | Prime plus 2.75% | 10/23/2025 | 50.0 | 45.9 | 38.6 | 0.02 | % | |||||||||||||||
| ^Werthan Packaging Inc. | Paper Manufacturing | Term Loan | Prime plus 2.75% | 10/14/2025 | 1,162.5 | 1,104.0 | 1,030.3 | 0.49 | % | |||||||||||||||
| ^Tannehill Enterprises Inc dba Hobbytown USA Folsom | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 10/14/2025 | 87.4 | 80.2 | 67.5 | 0.03 | % | |||||||||||||||
| ^ADMO Inc dba Mid States Equipment | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 10/8/2025 | 22.5 | 20.7 | 17.9 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
109
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^SCJEN Management Inc dba Bowl of Heaven | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2025 | 71.3 | 65.7 | 55.2 | 0.03 | % | |||||||||||||||
| ^Naeem Khan LTD | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2025 | 125.0 | 114.0 | 95.8 | 0.05 | % | |||||||||||||||
| ^Accent Homes Services LLC dba Benjamin Franklin Plumbing of Kansas City | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/30/2028 | 66.5 | 62.4 | 60.4 | 0.03 | % | |||||||||||||||
| ^Recycling Consultants, Inc. and Prairie State Salvage and Recycling | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/30/2027 | 767.5 | 714.8 | 643.3 | 0.31 | % | |||||||||||||||
| ^Barub Realty LLC and Barub LLC dba Woodlawn Cabinets | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 9/30/2040 | 143.0 | 140.0 | 143.9 | 0.07 | % | |||||||||||||||
| ^R.H. Hummer Jr., Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 9/30/2025 | 375.0 | 354.3 | 338.4 | 0.16 | % | |||||||||||||||
| ^Bat Bridge Investments Inc dba Kalologie 360 Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/30/2025 | 85.5 | 79.5 | 66.8 | 0.03 | % | |||||||||||||||
| ^Binky's Vapes LLC | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/30/2025 | 22.5 | 20.5 | 17.2 | 0.01 | % | |||||||||||||||
| ^Joyce Outdoor Advertising LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/29/2040 | 234.8 | 231.0 | 235.0 | 0.11 | % | |||||||||||||||
| ^Greensward of Marco Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/28/2040 | 87.5 | 85.7 | 84.4 | 0.04 | % | |||||||||||||||
| ^RIM Investments LLC and RIM Architects LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/28/2040 | 399.0 | 390.7 | 383.0 | 0.18 | % | |||||||||||||||
| ^The Grasso Companies LLC and Grasso Pavement Maintenance LLC | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 9/28/2025 | 518.8 | 469.8 | 469.2 | 0.22 | % | |||||||||||||||
| ^South Towne Dental Center, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/25/2025 | 50.0 | 45.6 | 45.7 | 0.02 | % | |||||||||||||||
| ^Hemingway Custom Cabinetry LLC | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 9/25/2025 | 220.0 | 200.6 | 172.8 | 0.08 | % | |||||||||||||||
| ^Daniel W. Stark dba Mountain Valley Lodge and RV Park | Accommodation | Term Loan | Prime plus 2.75% | 9/25/2040 | 13.5 | 13.2 | 13.6 | 0.01 | % | |||||||||||||||
| ^Sandlot Ventures LLC and Sandbox Ventures LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/25/2040 | 442.5 | 433.9 | 418.9 | 0.20 | % | |||||||||||||||
| ^Yachting Solutions LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/25/2040 | 962.5 | 942.4 | 908.0 | 0.43 | % | |||||||||||||||
| ^Prestigious LifeCare for Seniors LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/25/2025 | 9.8 | 9.0 | 8.2 | — | % | |||||||||||||||
| ^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn | Accommodation | Term Loan | Prime plus 2.75% | 9/24/2040 | 625.0 | 611.9 | 608.5 | 0.29 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
110
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Hagerstown Muffler, Inc. and JMS Muffler, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/24/2040 | 327.5 | 320.7 | 331.0 | 0.16 | % | |||||||||||||||
| ^J.R. Wheeler Corporation dba Structurz Exhibits and Graphics | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/24/2025 | 21.0 | 19.2 | 19.2 | 0.01 | % | |||||||||||||||
| ^Rutledge Enterprises Inc dba BLC Property Management | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/23/2040 | 62.5 | 60.7 | 60.4 | 0.03 | % | |||||||||||||||
| ^Finish Strong Inc dba FASTSIGNS St Peters | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 9/23/2025 | 50.0 | 45.6 | 38.3 | 0.02 | % | |||||||||||||||
| ^J3K LLC dba Ronan True Value Hardware | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 9/23/2025 | 152.5 | 139.1 | 116.9 | 0.06 | % | |||||||||||||||
| ^Stormrider Inc dba Shirley's Stormrider Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 9/23/2025 | 67.5 | 62.6 | 52.6 | 0.03 | % | |||||||||||||||
| ^Frozen Treats of Hollywood FL, LLC dba Sub Zero Ice Cream | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/22/2025 | 15.8 | 14.4 | 12.8 | 0.01 | % | |||||||||||||||
| ^Nova Solutions Inc | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 9/22/2040 | 320.0 | 313.3 | 311.9 | 0.15 | % | |||||||||||||||
| ^Pine Belt Wood Products LLC | Forestry and Logging | Term Loan | Prime plus 2.75% | 9/22/2040 | 163.8 | 160.3 | 146.9 | 0.07 | % | |||||||||||||||
| ^IIoka Inc dba New Cloud Networks | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/21/2025 | 665.0 | 609.3 | 512.1 | 0.24 | % | |||||||||||||||
| ^Sound Manufacturing Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/21/2025 | 50.0 | 45.6 | 40.6 | 0.02 | % | |||||||||||||||
| ^MiJoy Inc dba Imo's Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/18/2025 | 8.3 | 7.5 | 6.3 | — | % | |||||||||||||||
| ^Vanderhoof LLC dba Soxfords | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 9/18/2025 | 15.9 | 14.5 | 12.2 | 0.01 | % | |||||||||||||||
| ^Naeem Khan LTD | Apparel Manufacturing | Term Loan | Prime plus 2.75% | 9/17/2025 | 125.0 | 114.0 | 95.8 | 0.05 | % | |||||||||||||||
| ^Import Car Connection Inc dba Car Connection | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/16/2040 | 407.5 | 399.0 | 406.5 | 0.19 | % | |||||||||||||||
| ^FirstVitals Health and Wellness Inc | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/15/2025 | 150.0 | 136.8 | 114.9 | 0.05 | % | |||||||||||||||
| ^Johnson Carwash LLC and Johnson Petroleum LLC | Gasoline Stations | Term Loan | Prime plus 2.75% | 9/14/2040 | 340.0 | 334.8 | 345.1 | 0.17 | % | |||||||||||||||
| ^Almost Home Daycare LLC | Social Assistance | Term Loan | Prime plus 2.75% | 9/11/2025 | 62.5 | 57.0 | 56.3 | 0.03 | % | |||||||||||||||
| ^Veliu LLC dba FASTSIGNS #15901 | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 9/10/2025 | 50.0 | 46.2 | 40.0 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
111
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^B and A Friction Materials Inc | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/9/2025 | 102.5 | 92.7 | 77.9 | 0.04 | % | |||||||||||||||
| ^Gardner's Wharf Holdings LLC and Gardner's Wharf Seafood Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 9/8/2040 | 140.0 | 137.1 | 141.5 | 0.07 | % | |||||||||||||||
| ^AIG Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/4/2040 | 363.8 | 356.1 | 338.8 | 0.16 | % | |||||||||||||||
| ^Empower Autism Academy | Social Assistance | Term Loan | Prime plus 2.75% | 9/4/2040 | 685.0 | 670.7 | 692.4 | 0.33 | % | |||||||||||||||
| ^Higher Grounds Community Coffeehouse, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/2/2025 | 8.3 | 7.5 | 6.6 | — | % | |||||||||||||||
| ^Delray Scrap Recycling LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 8/31/2025 | 22.5 | 20.1 | 16.9 | 0.01 | % | |||||||||||||||
| ^The Camera House Inc | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 8/31/2025 | 1,250.0 | 1,131.6 | 1,036.9 | 0.50 | % | |||||||||||||||
| ^LAN Doctors Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/28/2025 | 81.3 | 73.6 | 66.8 | 0.03 | % | |||||||||||||||
| ^Elite Institute LLC dba Huntington Learning Center | Educational Services | Term Loan | Prime plus 2.75% | 8/28/2025 | 15.0 | 13.7 | 11.6 | 0.01 | % | |||||||||||||||
| ^Zephyr Seven Series LLC dba 18/8 Fine Men's Salon | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 8/28/2025 | 81.3 | 76.2 | 65.7 | 0.03 | % | |||||||||||||||
| ^J and K Fitness L.L.C. dba Physiques Womens Fitness Center | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2041 | 93.8 | 92.7 | 93.5 | 0.04 | % | |||||||||||||||
| ^Trading Group 3 Inc | Nonstore Retailers | Term Loan | Prime plus 2.75% | 8/28/2025 | 50.0 | 45.3 | 38.0 | 0.02 | % | |||||||||||||||
| ^B and J Catering Inc dba Culinary Solutions | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/27/2040 | 547.5 | 540.3 | 523.4 | 0.25 | % | |||||||||||||||
| ^God Be Glorified Inc dba GBG Inc | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 8/20/2025 | 53.0 | 48.0 | 40.3 | 0.02 | % | |||||||||||||||
| ^3000 CSI Property LLC and Consulting Solutions Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/20/2040 | 137.5 | 134.4 | 136.7 | 0.07 | % | |||||||||||||||
| ^GDP Gourmet LLC dba Joe and John's Pizza Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/19/2040 | 145.0 | 141.7 | 140.1 | 0.07 | % | |||||||||||||||
| ^Screenmobile Management Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 8/14/2025 | 47.0 | 42.5 | 36.1 | 0.02 | % | |||||||||||||||
| ^Gold Jet Corp. | Couriers and Messengers | Term Loan | Prime plus 2.75% | 8/14/2025 | 68.3 | 65.3 | 59.2 | 0.03 | % | |||||||||||||||
| ^SKJ Inc dba Subway | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/13/2025 | 84.8 | 76.8 | 65.5 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
112
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^LP Industries Inc dba Childforms | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 7/29/2025 | 125.0 | 114.5 | 107.0 | 0.05 | % | |||||||||||||||
| ^Advanced Machine & Technology, Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 7/29/2025 | 90.3 | 81.1 | 74.8 | 0.04 | % | |||||||||||||||
| ^Pauley Tree and Lawn Care Inc | Administrative and Support Services | Term Loan | Prime plus 2.75% | 7/28/2025 | 65.8 | 59.2 | 53.0 | 0.03 | % | |||||||||||||||
| ^Beale Street Blues Company-West Palm Beach LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 7/24/2025 | 66.3 | 59.5 | 52.2 | 0.02 | % | |||||||||||||||
| ^Forever & Always of Naples Inc dba Island Animal Hospital | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/24/2025 | 107.5 | 96.6 | 88.0 | 0.04 | % | |||||||||||||||
| ^C& D Medical of Naples, Inc and Forever & Always of Naples, Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/24/2040 | 135.0 | 131.8 | 123.2 | 0.06 | % | |||||||||||||||
| ^Pooh's Corner Realty LLC and Pooh's Corner Inc | Social Assistance | Term Loan | Prime plus 2.75% | 7/23/2040 | 103.8 | 101.4 | 103.8 | 0.05 | % | |||||||||||||||
| ^Smart Artists Inc. | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 7/23/2025 | 22.5 | 20.2 | 17.0 | 0.01 | % | |||||||||||||||
| ^Free Ion Advisors LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 7/21/2025 | 64.3 | 57.7 | 48.5 | 0.02 | % | |||||||||||||||
| ^Murrayville Donuts, Inc dba Dunkin' Donuts | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 7/15/2040 | 344.5 | 340.4 | 329.4 | 0.16 | % | |||||||||||||||
| ^Union 2 LLC dba The Standard | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/10/2025 | 91.5 | 85.9 | 79.1 | 0.04 | % | |||||||||||||||
| ^The Smile Place LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/30/2040 | 283.9 | 276.6 | 282.4 | 0.14 | % | |||||||||||||||
| ^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 | 207.1 | 210.9 | 0.10 | % | |||||||||||||||
| ^Jonathan E Nichols and Nichols Fire and Security LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/30/2025 | 75.0 | 66.9 | 65.2 | 0.03 | % | |||||||||||||||
| ^Thrifty Market, Inc. dba Thrifty Foods | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/30/2030 | 262.5 | 246.5 | 231.3 | 0.11 | % | |||||||||||||||
| ^All About Smiles P A | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/30/2040 | 237.7 | 231.6 | 236.4 | 0.11 | % | |||||||||||||||
| ^Danny V, LLC dba Hugo's Taproom | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2040 | 54.0 | 50.1 | 49.0 | 0.02 | % | |||||||||||||||
| ^Anglin Cultured Stone Products LLC dba Anglin Construction | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/30/2025 | 281.8 | 251.3 | 232.6 | 0.11 | % | |||||||||||||||
| ^Advanced Skincare Medcenter Inc dba Advanced Skincare Surgery | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/29/2025 | 337.5 | 301.0 | 273.0 | 0.13 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
113
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Summit Beverage Group LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 8/29/2030 | 291.9 | 274.4 | 261.4 | 0.13 | % | |||||||||||||||
| ^Myclean Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/29/2025 | 15.9 | 14.2 | 12.7 | 0.01 | % | |||||||||||||||
| ^E & G Enterprises LLC dba Comfort Keepers | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/26/2025 | 22.5 | 20.1 | 18.0 | 0.01 | % | |||||||||||||||
| ^SofRep, Inc dba Force 12 Media | Other Information Services | Term Loan | Prime plus 2.75% | 6/26/2025 | 66.3 | 59.1 | 52.9 | 0.03 | % | |||||||||||||||
| ^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 | 370.3 | 374.9 | 0.18 | % | |||||||||||||||
| ^TJU-DGT Inc dba The Lorenz Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/26/2029 | 20.6 | 19.2 | 19.5 | 0.01 | % | |||||||||||||||
| ^CEM Autobody LLC dba Dawn's Autobody | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/26/2040 | 135.5 | 132.0 | 132.6 | 0.06 | % | |||||||||||||||
| ^Wolf Enviro Interests, LLC and Enviromax Services Inc | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/25/2040 | 246.5 | 240.2 | 234.0 | 0.11 | % | |||||||||||||||
| ^Ohs Auto Body, Inc. dba Ohs Body Shop | Repair and Maintenance | Term Loan | 7.28% | 6/25/2040 | 1,207.5 | 1,187.4 | 1,190.9 | 0.57 | % | |||||||||||||||
| ^Evinger PA One, Inc. dba Postal Annex, Falcon | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 6/24/2025 | 22.5 | 20.1 | 18.8 | 0.01 | % | |||||||||||||||
| ^Amboy Group, LLC dba Tommy's Moloney's | Food Manufacturing | Term Loan | Prime plus 2.75% | 6/24/2025 | 454.0 | 406.2 | 410.1 | 0.20 | % | |||||||||||||||
| ^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/23/2040 | 551.8 | 537.6 | 561.8 | 0.27 | % | |||||||||||||||
| ^RJI Services, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/23/2025 | 22.5 | 19.9 | 17.8 | 0.01 | % | |||||||||||||||
| ^Real Help LLC dba Real Help Decorative Concrete | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/22/2025 | 53.1 | 47.4 | 47.1 | 0.02 | % | |||||||||||||||
| ^PM Cassidy Enterprises, Inc. dba Junk King | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 6/19/2025 | 14.9 | 13.3 | 11.9 | 0.01 | % | |||||||||||||||
| ^KRN Logistics, LLC,Newsome Trucking, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 6/19/2025 | 543.5 | 484.8 | 458.5 | 0.22 | % | |||||||||||||||
| ^Inverted Healthcare Staffing of Florida LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/18/2025 | 61.3 | 54.7 | 49.0 | 0.02 | % | |||||||||||||||
| ^Square Deal Siding Company,LLC dba Square Deal Siding Company | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/18/2025 | 22.5 | 20.4 | 20.6 | 0.01 | % | |||||||||||||||
| ^Flooring Liquidators Inc and Flooring Liquidators of Mt Kisco LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/17/2025 | 437.5 | 390.2 | 390.4 | 0.19 | % | |||||||||||||||
| ^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 | 84.6 | 87.5 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
114
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Nelson Sargsyan dba HDA Trucking | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 6/16/2025 | 130.5 | 117.0 | 104.7 | 0.05 | % | |||||||||||||||
| ^Mirage Plastering Inc and Mpire LLC and Mpire II LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 6/12/2040 | 338.8 | 135.2 | 128.3 | 0.06 | % | |||||||||||||||
| ^Bizzare Foods Inc dba Trooper Foods | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 6/12/2025 | 125.0 | 108.7 | 97.3 | 0.05 | % | |||||||||||||||
| ^Anturio Marketing Inc dba Logic Consulting | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/12/2040 | 290.3 | 282.8 | 295.5 | 0.14 | % | |||||||||||||||
| ^Eldredge Tavern LLC dba Gonyea's Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/8/2040 | 56.3 | 54.8 | 57.3 | 0.03 | % | |||||||||||||||
| ^Nicor LLC dba Fibrenew Sacramento | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/5/2022 | 13.8 | 11.4 | 10.2 | — | % | |||||||||||||||
| ^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 | 14.0 | 12.5 | 0.01 | % | |||||||||||||||
| ^ViAr Visual Communications, Inc. dba Fastsigns 281701 | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 6/5/2025 | 62.0 | 55.3 | 50.4 | 0.02 | % | |||||||||||||||
| ^Video Vault & Tanning LLC and Mosaic Salon LLC | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 6/4/2040 | 90.5 | 88.4 | 92.3 | 0.04 | % | |||||||||||||||
| ^Medworxs LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/3/2025 | 125.0 | 111.5 | 100.4 | 0.05 | % | |||||||||||||||
| ^DTM Parts Supply Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/2/2025 | 62.8 | 56.0 | 50.1 | 0.02 | % | |||||||||||||||
| ^XCESSIVE THROTTLE, INC dba Jake's Roadhouse | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/29/2025 | 8.3 | 7.3 | 6.5 | — | % | |||||||||||||||
| ^God is Good LLC dba BurgerFi | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/27/2025 | 67.3 | 16.6 | 16.7 | 0.01 | % | |||||||||||||||
| ^Villela CPA PL | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 5/27/2025 | 9.0 | 8.0 | 7.3 | — | % | |||||||||||||||
| ^Pen Tex Inc dba The UPS Store | Administrative and Support Services | Term Loan | Prime plus 2.75% | 5/20/2025 | 22.0 | 19.5 | 17.5 | 0.01 | % | |||||||||||||||
| ^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse | Accommodation | Term Loan | Prime plus 2.75% | 5/20/2040 | 174.1 | 169.4 | 173.9 | 0.08 | % | |||||||||||||||
| ^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/15/2025 | 717.3 | 638.0 | 581.7 | 0.28 | % | |||||||||||||||
| ^15 McArdle LLC and No Other Impressions Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/15/2040 | 257.1 | 250.1 | 247.5 | 0.12 | % | |||||||||||||||
| ^E-Z Box Storage, Inc. | Real Estate | Term Loan | Prime plus 2.75% | 5/11/2025 | 89.3 | 73.3 | 74.0 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
115
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Guard Dogs MFS LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/8/2025 | 65.0 | 57.5 | 51.8 | 0.02 | % | |||||||||||||||
| ^George S Cochran DDS Inc | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/7/2025 | 130.0 | 115.5 | 103.6 | 0.05 | % | |||||||||||||||
| ^South Park Properties LLC and Midlothian Hardware LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 5/6/2040 | 170.5 | 164.8 | 172.1 | 0.08 | % | |||||||||||||||
| ^Matthew Taylor and Landon Farm LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/4/2040 | 100.0 | 98.0 | 93.7 | 0.04 | % | |||||||||||||||
| ^Cares Inc dba Dumpling Grounds Day Care Center | Social Assistance | Term Loan | Prime plus 2.75% | 5/1/2040 | 81.9 | 78.8 | 82.4 | 0.04 | % | |||||||||||||||
| ^RDRhonehouse ENT. LLC dba Chill Skinz | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 4/29/2025 | 88.9 | 79.8 | 71.5 | 0.03 | % | |||||||||||||||
| ^Orchid Enterprises Inc dba Assisting Hands of Sussex County | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/24/2025 | 15.0 | 13.2 | 11.8 | 0.01 | % | |||||||||||||||
| ^Ragazza Restaurant Group, Inc. dba Bambolina | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/21/2025 | 22.5 | 19.8 | 18.3 | 0.01 | % | |||||||||||||||
| ^Diamond Solutions LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 4/21/2025 | 22.5 | 19.3 | 17.3 | 0.01 | % | |||||||||||||||
| ^Giacchino Maritime Consultants Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 4/17/2025 | 22.5 | 19.8 | 17.7 | 0.01 | % | |||||||||||||||
| ^Sound Coaching Inc | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 4/14/2025 | 44.4 | 39.0 | 34.9 | 0.02 | % | |||||||||||||||
| ^Carolina Beefs, LLC dba Beef O'Brady's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/13/2025 | 19.5 | 17.1 | 15.3 | 0.01 | % | |||||||||||||||
| ^Faramarz Nikourazm dba Car Clinic Center | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/3/2040 | 73.8 | 71.5 | 72.3 | 0.03 | % | |||||||||||||||
| ^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 | 737.4 | 723.8 | 0.35 | % | |||||||||||||||
| ^T and B Boots Inc dba Takkens | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 3/31/2025 | 807.8 | 705.6 | 688.1 | 0.33 | % | |||||||||||||||
| ^HAVANA CENTRAL NJ1, LLC dba Havana Central | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/31/2025 | 250.0 | 225.0 | 225.6 | 0.11 | % | |||||||||||||||
| ^Mid-South Lumber Co. of Northwest Florida, Inc. | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/31/2040 | 428.8 | 415.7 | 406.4 | 0.19 | % | |||||||||||||||
| ^Copper Beech Financial Group LLC | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 3/30/2025 | 125.0 | 109.0 | 103.4 | 0.05 | % | |||||||||||||||
| ^Delta Aggregate LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 3/30/2025 | 90.0 | 83.7 | 84.5 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
116
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Sunset Marine Resort LLC and GoXpeditions LLC | Accommodation | Term Loan | Prime plus 2.75% | 3/27/2040 | 301.8 | 292.6 | 305.6 | 0.15 | % | |||||||||||||||
| ^Shorr Enterprises Inc dba New Design Furniture Manufacturers | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2025 | 106.5 | 92.9 | 89.1 | 0.04 | % | |||||||||||||||
| ^South Florida Air Conditioning and Refrigeration Corp. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/27/2040 | 155.5 | 150.8 | 155.8 | 0.07 | % | |||||||||||||||
| ^Shellhorn and Hill Inc dba Total Fleet Service | Nonstore Retailers | Term Loan | Prime plus 2.75% | 3/27/2040 | 1,040.3 | 1,004.8 | 982.4 | 0.47 | % | |||||||||||||||
| ^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC | Real Estate | Term Loan | Prime plus 2.75% | 3/27/2025 | 1,238.3 | 1,079.5 | 965.3 | 0.46 | % | |||||||||||||||
| ^Geo Los Angeles LLC dba Geo Film Group | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 3/26/2025 | 130.0 | 113.4 | 108.2 | 0.05 | % | |||||||||||||||
| ^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 | 52.4 | 54.2 | 0.03 | % | |||||||||||||||
| ^Zero-In Media Inc | Data Processing, Hosting, and Related Services | Term Loan | Prime plus 2.75% | 3/25/2025 | 22.5 | 19.6 | 17.5 | 0.01 | % | |||||||||||||||
| ^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 | 810.0 | 785.4 | 816.3 | 0.39 | % | |||||||||||||||
| ^Loriet LLC | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/24/2025 | 12.0 | 10.5 | 9.4 | — | % | |||||||||||||||
| ^Shelton Incorporated dba Mrs. Winners | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/20/2040 | 112.5 | 109.1 | 113.6 | 0.05 | % | |||||||||||||||
| ^Jaymie Hazard dba Indigo Hair Studio and Day Spa | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/20/2040 | 42.9 | 41.6 | 41.9 | 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 | 85.4 | 82.9 | 86.5 | 0.04 | % | |||||||||||||||
| ^MMS Realty, LLC and Molecular MS Diagnostics LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/18/2040 | 160.7 | 155.8 | 156.1 | 0.07 | % | |||||||||||||||
| ^Royal Crest Motors LLC | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/16/2040 | 91.3 | 88.5 | 89.8 | 0.04 | % | |||||||||||||||
| ^BND Sebastian Limited Liability Company and Sebastian Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/16/2040 | 172.5 | 167.3 | 171.6 | 0.08 | % | |||||||||||||||
| ^Douglas Printy Motorsports, Inc. dba Blackburn Trike | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 3/9/2040 | 191.8 | 185.9 | 186.2 | 0.09 | % | |||||||||||||||
| ^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 | 9.8 | 9.9 | — | % | |||||||||||||||
| ^Calhoun Satellite Communications Inc and Transmission Solutions Group | Broadcasting (except Internet) | Term Loan | Prime plus 2.75% | 2/27/2025 | 952.8 | 825.3 | 763.2 | 0.37 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
117
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Road to Sedona Inc dba Thirteen | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/27/2025 | 56.6 | 49.0 | 44.3 | 0.02 | % | |||||||||||||||
| ^Baystate Firearms and Training, LLC | Educational Services | Term Loan | Prime plus 2.75% | 2/27/2025 | 63.4 | 54.7 | 49.3 | 0.02 | % | |||||||||||||||
| ^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 | 1,210.1 | 1,263.9 | 0.60 | % | |||||||||||||||
| ^Pace Motor Lines, Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 2/26/2025 | 66.2 | 57.3 | 57.8 | 0.03 | % | |||||||||||||||
| ^Nelson Financial Services LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 2/24/2025 | 12.5 | 10.8 | 9.6 | — | % | |||||||||||||||
| ^Kiddie Steps 4 You Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 2/19/2040 | 61.8 | 59.7 | 59.6 | 0.03 | % | |||||||||||||||
| ^Triangle Trash LLC dba Bin There Dump That | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 2/18/2025 | 74.4 | 64.3 | 60.6 | 0.03 | % | |||||||||||||||
| ^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 | 166.3 | 166.0 | 0.08 | % | |||||||||||||||
| ^740 Barry Street Realty LLC and Wild Edibles Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 2/10/2040 | 492.5 | 476.7 | 498.0 | 0.24 | % | |||||||||||||||
| ^Kostekos Inc dba New York Style Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/6/2040 | 66.3 | 64.1 | 64.8 | 0.03 | % | |||||||||||||||
| ^DuCharme Realty LLC and DuCharme Enterprises LLC | Wood Product Manufacturing | Term Loan | Prime plus 2.75% | 2/2/2040 | 225.1 | 217.9 | 215.7 | 0.10 | % | |||||||||||||||
| ^Limameno LLC dba Sal's Italian Ristorante | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/23/2025 | 83.3 | 71.4 | 65.4 | 0.03 | % | |||||||||||||||
| ^Palmabak Inc dba Mami Nora's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/22/2025 | 21.5 | 15.9 | 16.1 | 0.01 | % | |||||||||||||||
| ^Jung Design Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 1/20/2022 | 8.4 | 6.5 | 5.8 | — | % | |||||||||||||||
| ^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 | 128.5 | 133.0 | 0.06 | % | |||||||||||||||
| ^Bear Creek Entertainment, LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 12/30/2024 | 106.3 | 90.7 | 91.4 | 0.04 | % | |||||||||||||||
| ^Evans and Paul LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/30/2024 | 223.8 | 190.5 | 188.1 | 0.09 | % | |||||||||||||||
| ^FHJE Ventures LLC and Eisenreich II Inc dba Breakneck Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/30/2039 | 245.5 | 238.2 | 234.6 | 0.11 | % | |||||||||||||||
| ^First Prevention and Dialysis Center, LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/30/2024 | 273.3 | 248.4 | 241.4 | 0.12 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
118
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Bowlerama Inc | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/24/2039 | 1,202.5 | 1,161.9 | 1,213.0 | 0.58 | % | |||||||||||||||
| ^401 JJS Corporation and G. Randazzo Corporation | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/23/2039 | 473.5 | 460.9 | 473.5 | 0.23 | % | |||||||||||||||
| ^The Lodin Group LLC and Lodin Health Imaging Inc dba Highlands Breast | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/23/2039 | 530.3 | 511.6 | 500.9 | 0.24 | % | |||||||||||||||
| ^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 12/23/2039 | 500.0 | 482.4 | 503.6 | 0.24 | % | |||||||||||||||
| ^Carolina Flicks Inc dba The Howell Theater | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 12/23/2032 | 163.3 | 153.0 | 151.0 | 0.07 | % | |||||||||||||||
| ^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 | 214.8 | 224.3 | 0.11 | % | |||||||||||||||
| ^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 | 159.6 | 148.4 | 0.07 | % | |||||||||||||||
| ^MM and M Management Inc dba Pizza Artista | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/19/2025 | 46.3 | 40.4 | 36.7 | 0.02 | % | |||||||||||||||
| ^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 | 1,063.3 | 959.5 | 0.46 | % | |||||||||||||||
| ^B.S. Ventures LLC dba Dink's Market | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/19/2039 | 53.8 | 51.9 | 54.1 | 0.03 | % | |||||||||||||||
| ^B & W Towing, LLC and Boychucks Fuel LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/17/2039 | 164.5 | 160.0 | 159.4 | 0.08 | % | |||||||||||||||
| ^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 | 340.4 | 318.1 | 0.15 | % | |||||||||||||||
| ^Kemmer LLC and Apples Tree Top Liquors LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/4/2039 | 138.4 | 133.5 | 131.8 | 0.06 | % | |||||||||||||||
| ^Trading Group 3, Inc. | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 11/26/2024 | 22.5 | 19.0 | 17.0 | 0.01 | % | |||||||||||||||
| ^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 | 46.6 | 43.2 | 0.02 | % | |||||||||||||||
| ^Teamnewman Enterprises LLC dba Newmans at 988 and John H. Newman | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/25/2039 | 148.8 | 143.3 | 143.9 | 0.07 | % | |||||||||||||||
| ^DeRidder Chiropractic LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/25/2024 | 13.2 | 11.1 | 11.2 | 0.01 | % | |||||||||||||||
| ^Modern Manhattan LLC | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 11/25/2024 | 220.0 | 185.8 | 167.8 | 0.08 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
119
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Stormrider Inc dba Shirley's Stormrider, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 11/25/2024 | 150.0 | 129.1 | 115.3 | 0.06 | % | |||||||||||||||
| ^Meridian Hotels, LLC dba Best Western Jonesboro | Accommodation | Term Loan | Prime plus 2.75% | 11/25/2039 | 228.0 | 220.6 | 230.3 | 0.11 | % | |||||||||||||||
| ^Legacy Estate Planning Inc dba American Casket Enterprises | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/21/2024 | 42.0 | 35.5 | 31.7 | 0.02 | % | |||||||||||||||
| ^J&D Resources, LLC dba Aqua Science | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/21/2024 | 767.9 | 641.4 | 582.5 | 0.28 | % | |||||||||||||||
| ^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 | 115.5 | 118.5 | 0.06 | % | |||||||||||||||
| ^MLM Enterprises LLC and Demand Printing Solutions Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/18/2024 | 70.5 | 59.5 | 57.5 | 0.03 | % | |||||||||||||||
| ^JEJE Realty LLC and La Familia Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/10/2039 | 205.8 | 197.1 | 198.2 | 0.09 | % | |||||||||||||||
| ^Joey O's LLC and Jennifer Olszewski | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/7/2024 | 13.1 | 0.9 | 0.8 | — | % | |||||||||||||||
| ^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 | 460.6 | 471.0 | 0.23 | % | |||||||||||||||
| ^Golden Transaction Corporation dba Bleh Sunoco | Gasoline Stations | Term Loan | Prime plus 2.75% | 10/30/2039 | 156.7 | 150.7 | 155.4 | 0.07 | % | |||||||||||||||
| ^Seelan Inc dba Candleridge Market | Gasoline Stations | Term Loan | Prime plus 2.75% | 10/27/2039 | 90.5 | 87.0 | 87.3 | 0.04 | % | |||||||||||||||
| ^185 Summerfield Inc and Valcon Contracting Corp | Construction of Buildings | Term Loan | Prime plus 2.75% | 10/24/2039 | 162.3 | 156.0 | 160.5 | 0.08 | % | |||||||||||||||
| ^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 | 85.7 | 84.6 | 0.04 | % | |||||||||||||||
| ^3 F Management LLC and ATC Port Charlotte LLC dba Around The Clock Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 10/17/2024 | 131.3 | 109.9 | 102.5 | 0.05 | % | |||||||||||||||
| ^One Hour Jewelry Repair Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/14/2024 | 20.6 | 17.2 | 15.4 | 0.01 | % | |||||||||||||||
| ^DNT Storage and Properties LLC | Real Estate | Term Loan | Prime plus 2.75% | 10/10/2039 | 101.8 | 97.8 | 101.0 | 0.05 | % | |||||||||||||||
| ^Capitol Waste and Recycling Services LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 10/10/2024 | 257.8 | 215.8 | 202.7 | 0.10 | % | |||||||||||||||
| ^Sound Manufacturing Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 10/10/2024 | 187.5 | 157.1 | 145.6 | 0.07 | % | |||||||||||||||
| ^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 | 1,216.5 | 1,270.0 | 0.61 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
120
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Boilermaker Industries LLC dba PostNet | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/9/2024 | 18.8 | 5.7 | 5.8 | — | % | |||||||||||||||
| ^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 | 57.7 | 58.8 | 0.03 | % | |||||||||||||||
| ^Doctors Express Management of Central Texas LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 10/8/2024 | 105.0 | 77.8 | 76.5 | 0.04 | % | |||||||||||||||
| ^Michael Rey Jr. and Lynn J. Williams and GIG Petcare dba Hickory | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 10/3/2039 | 126.9 | 120.2 | 123.6 | 0.06 | % | |||||||||||||||
| ^Sumad LLC dba BrightStar Care of Encinitas | Administrative and Support Services | Term Loan | Prime plus 2.75% | 10/2/2024 | 92.5 | 44.5 | 44.9 | 0.02 | % | |||||||||||||||
| ^Roccos LLC and Sullo Pantalone Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/30/2039 | 255.8 | 245.5 | 244.8 | 0.12 | % | |||||||||||||||
| ^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 | 96.0 | 99.7 | 0.05 | % | |||||||||||||||
| ^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 | 313.1 | 326.7 | 0.16 | % | |||||||||||||||
| ^The Woods at Bear Creek LLC and Bear Creek Entertainment LLC | Accommodation | Term Loan | Prime plus 2.75% | 9/29/2039 | 513.3 | 495.1 | 516.6 | 0.25 | % | |||||||||||||||
| ^Keys Phase One LLC dba The Grand Guesthouse | Accommodation | Term Loan | Prime plus 2.75% | 9/26/2039 | 736.3 | 706.7 | 725.2 | 0.35 | % | |||||||||||||||
| ^Gordon E Rogers dba Stonehouse Motor Inn | Accommodation | Term Loan | Prime plus 2.75% | 9/26/2039 | 57.5 | 55.2 | 57.6 | 0.03 | % | |||||||||||||||
| ^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 | 18.7 | 17.2 | 0.01 | % | |||||||||||||||
| ^Colts V LLC and Nowatzke Service Center, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/26/2039 | 601.8 | 578.6 | 591.7 | 0.28 | % | |||||||||||||||
| ^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 | 152.9 | 156.6 | 0.07 | % | |||||||||||||||
| ^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 | 435.8 | 422.4 | 0.20 | % | |||||||||||||||
| ^R A Johnson Inc dba Rick Johnson Auto and Tire | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/23/2039 | 301.3 | 289.2 | 301.8 | 0.14 | % | |||||||||||||||
| ^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 | 29.5 | 26.4 | 0.01 | % | |||||||||||||||
| ^Play and Stay LLC dba Zoom Room Tinton Falls | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/18/2024 | 42.1 | 35.4 | 31.6 | 0.02 | % | |||||||||||||||
| ^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/17/2039 | 145.5 | 139.7 | 145.7 | 0.07 | % | |||||||||||||||
| ^Modern Leather Goods Repair Shop Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/17/2024 | 58.8 | 48.3 | 43.2 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
121
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Tavern Properties LLC and Wildwood Tavern LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/15/2039 | 425.0 | 410.7 | 419.6 | 0.20 | % | |||||||||||||||
| ^RDT Enterprises LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 9/15/2027 | 162.8 | 143.6 | 143.5 | 0.07 | % | |||||||||||||||
| ^Animal Intrusion Prevention Systems Holding Company, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 9/15/2024 | 272.5 | 226.3 | 211.6 | 0.10 | % | |||||||||||||||
| ^KW Zion, LLC and Key West Gallery Inc | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/12/2039 | 1,250.0 | 1,199.9 | 1,230.5 | 0.59 | % | |||||||||||||||
| ^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 | 523.3 | 469.6 | 0.22 | % | |||||||||||||||
| ^B&P Diners LLC dba Engine House Restaurant | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/10/2024 | 80.0 | 66.4 | 59.3 | 0.03 | % | |||||||||||||||
| ^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 | 43.1 | 39.3 | 0.02 | % | |||||||||||||||
| ^Delta Aggregate LLC | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 8/28/2039 | 911.3 | 862.4 | 900.0 | 0.43 | % | |||||||||||||||
| ^Lamjam LLC, Goldsmith Lambros Inc | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 8/27/2024 | 133.8 | 110.4 | 111.2 | 0.05 | % | |||||||||||||||
| ^Orange County Cleaning Inc | Administrative and Support Services | Term Loan | Prime plus 2.75% | 8/27/2024 | 41.3 | 34.0 | 30.3 | 0.01 | % | |||||||||||||||
| ^Qycell Corporation | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 8/26/2024 | 121.0 | 99.7 | 94.5 | 0.05 | % | |||||||||||||||
| ^Atlas Auto Body Inc dba Atlas Auto Sales | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/22/2039 | 51.6 | 49.4 | 49.6 | 0.02 | % | |||||||||||||||
| ^Katie Senior Care LLC dba Home Instead Senior Care | Social Assistance | Term Loan | Prime plus 2.75% | 8/15/2024 | 124.3 | 102.3 | 91.3 | 0.04 | % | |||||||||||||||
| ^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/15/2039 | 433.5 | 404.3 | 421.9 | 0.20 | % | |||||||||||||||
| ^Alpha Preparatory Academy LLC | Social Assistance | Term Loan | Prime plus 2.75% | 8/15/2039 | 145.2 | 139.7 | 145.8 | 0.07 | % | |||||||||||||||
| ^Almost Home Property LLC and Almost Home Daycare LLC | Social Assistance | Term Loan | Prime plus 2.75% | 8/7/2039 | 715.8 | 686.9 | 710.4 | 0.34 | % | |||||||||||||||
| ^AGV Enterprises LLC dba Jet's Pizza #42 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/31/2024 | 54.8 | 44.8 | 40.8 | 0.02 | % | |||||||||||||||
| ^iFood, Inc. dba Steak N Shake | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/31/2024 | 379.1 | 321.6 | 304.2 | 0.15 | % | |||||||||||||||
| ^575 Columbus Avenue Holding Company, LLC and LA-ZE LLC dba EST EST EST | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/30/2039 | 22.5 | 21.2 | 22.1 | 0.01 | % | |||||||||||||||
| ^L&S Insurance & Financial Services Inc | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 7/25/2024 | 22.5 | 18.4 | 16.6 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
122
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Honeyspot Investors LLP and Pace Motor Lines Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 7/24/2039 | 150.0 | 143.6 | 149.5 | 0.07 | % | |||||||||||||||
| ^Miss Cranston Diner II, LLC and Miss Cranston II Realty LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/17/2039 | 100.0 | 96.6 | 98.4 | 0.05 | % | |||||||||||||||
| ^AMG Holding, LLC and Stetson Automotive, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/30/2039 | 208.0 | 198.7 | 211.2 | 0.10 | % | |||||||||||||||
| ^Highway Striping Inc | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 6/30/2024 | 53.1 | 43.0 | 42.7 | 0.02 | % | |||||||||||||||
| ^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/30/2024 | 100.0 | 81.0 | 82.6 | 0.04 | % | |||||||||||||||
| ^Honeyspot Investors LLP and Pace Motor Lines Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 6/30/2039 | 875.3 | 837.8 | 890.1 | 0.43 | % | |||||||||||||||
| ^iFood, Inc. dba Steak N Shake | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2039 | 629.8 | 602.1 | 626.0 | 0.30 | % | |||||||||||||||
| ^FHJE Ventures LLC and Eisenreich II Inc. dba Breakneck Tavern | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/27/2039 | 321.8 | 307.3 | 324.1 | 0.16 | % | |||||||||||||||
| ^Zinger Hardware and General Merchant Inc | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/26/2024 | 110.5 | 89.4 | 89.9 | 0.04 | % | |||||||||||||||
| ^JPM Investments LLC and Carolina Family Foot Care P.A. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/26/2039 | 136.1 | 132.6 | 140.2 | 0.07 | % | |||||||||||||||
| ^Nikobella Properties LLC and JPO Inc dba Village Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/25/2039 | 476.3 | 456.1 | 481.5 | 0.23 | % | |||||||||||||||
| ^Big Sky Plaza LLC and Strickland, Incorporated | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 6/20/2039 | 233.4 | 222.9 | 235.1 | 0.11 | % | |||||||||||||||
| ^510 ROK Realty LLC dba ROK Health and Fitness and Robert N. D'urso | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/19/2024 | 332.0 | 269.1 | 274.3 | 0.13 | % | |||||||||||||||
| ^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn | Accommodation | Term Loan | Prime plus 2.75% | 6/17/2039 | 920.3 | 878.8 | 934.4 | 0.45 | % | |||||||||||||||
| ^Hotels of North Georgia LLC dba Comfort Inn and Suites | Accommodation | Term Loan | Prime plus 2.75% | 6/17/2039 | 837.5 | 799.8 | 850.4 | 0.41 | % | |||||||||||||||
| ^Global Educational Delivery Services LLC | Educational Services | Term Loan | Prime plus 2.75% | 6/16/2024 | 60.0 | 49.2 | 50.2 | 0.02 | % | |||||||||||||||
| ^Rainbow Dry Cleaners | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/13/2024 | 122.5 | 99.1 | 98.7 | 0.05 | % | |||||||||||||||
| ^NVR Corporation dba Discount Food Mart | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/11/2039 | 68.3 | 63.5 | 67.5 | 0.03 | % | |||||||||||||||
| ^Sico & Walsh Insurance Agency Inc and The AMS Trust | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 6/6/2039 | 250.0 | 89.2 | 94.9 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
123
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Sujata Inc dba Stop N Save Food Mart and Dhruvesh Patel | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/3/2024 | 22.5 | 18.2 | 18.1 | 0.01 | % | |||||||||||||||
| ^Long Island Barber + Beauty LLC | Educational Services | Term Loan | Prime plus 2.75% | 6/2/2039 | 55.5 | 53.0 | 55.7 | 0.03 | % | |||||||||||||||
| ^CJR LLC and PowerWash Plus, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/30/2024 | 53.0 | 42.5 | 43.0 | 0.02 | % | |||||||||||||||
| ^Pocono Coated Products, LLC | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/30/2024 | 22.5 | 18.0 | 18.3 | 0.01 | % | |||||||||||||||
| ^EGM Food Services Inc dba Gold Star Chili | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/29/2024 | 19.2 | 15.4 | 15.3 | 0.01 | % | |||||||||||||||
| ^R. A. Johnson, Inc. dba Rick Johnson Auto & Tire | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 5/29/2039 | 943.8 | 899.8 | 956.7 | 0.46 | % | |||||||||||||||
| ^Wilton Dental Care P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/29/2024 | 128.1 | 105.0 | 103.4 | 0.05 | % | |||||||||||||||
| ^Jonesboro Health Food Center LLC | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 5/27/2024 | 60.0 | 48.1 | 47.3 | 0.02 | % | |||||||||||||||
| ^USI Properties LLC dba U Store It | Real Estate | Term Loan | Prime plus 2.75% | 5/23/2039 | 144.6 | 137.9 | 146.4 | 0.07 | % | |||||||||||||||
| ^Bay State Funeral Services, LLC and Riley Funeral Home Inc | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 5/21/2039 | 134.9 | 129.0 | 137.1 | 0.07 | % | |||||||||||||||
| ^Hae M. and Jin S. Park dba Buford Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/15/2039 | 166.5 | 158.0 | 165.6 | 0.08 | % | |||||||||||||||
| ^Moochie's LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/13/2024 | 100.5 | 81.6 | 80.6 | 0.04 | % | |||||||||||||||
| ^The River Beas LLC and Punam Singh | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/8/2039 | 90.3 | 86.0 | 90.7 | 0.04 | % | |||||||||||||||
| ^AS Boyals LLC dba Towne Liquors | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 4/29/2039 | 117.5 | 111.8 | 118.9 | 0.06 | % | |||||||||||||||
| ^ENI Inc, Event Networks Inc, ENI Worldwide LLC and Spot Shop Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/25/2024 | 500.0 | 397.5 | 390.5 | 0.19 | % | |||||||||||||||
| ^Gerami Realty, LC Sherrill Universal City Corral, LP | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/23/2027 | 78.8 | 67.5 | 69.6 | 0.03 | % | |||||||||||||||
| ^Complete Body & Paint, Inc. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/23/2039 | 20.8 | 19.9 | 21.1 | 0.01 | % | |||||||||||||||
| ^Island Wide Realty LLC and Long Island Partners, Inc. | Real Estate | Term Loan | Prime plus 2.75% | 4/22/2039 | 103.8 | 98.8 | 105.1 | 0.05 | % | |||||||||||||||
| ^Wilshire Media Systems Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 4/17/2024 | 186.3 | 148.3 | 146.7 | 0.07 | % | |||||||||||||||
| ^1899 Tavern & Tap LLC and Ale House Tavern & Tap LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/9/2039 | 137.5 | 129.9 | 137.4 | 0.07 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
124
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Hodges Properties LLC and Echelon Enterprises Inc dba Treads Bicycle | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 3/31/2039 | 449.0 | 426.5 | 450.8 | 0.22 | % | |||||||||||||||
| ^Dantanna's Tavern LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2024 | 164.3 | 131.5 | 130.9 | 0.06 | % | |||||||||||||||
| ^Little People's Village II LLC and Iliopoulos Realty LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/31/2039 | 92.1 | 88.1 | 91.9 | 0.04 | % | |||||||||||||||
| ^RDT Enterprises, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/31/2028 | 141.2 | 123.9 | 128.3 | 0.06 | % | |||||||||||||||
| ^Little People's Village II LLC and Iliopoulos Realty LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/31/2039 | 101.5 | 97.1 | 101.4 | 0.05 | % | |||||||||||||||
| ^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 3/31/2024 | 1,250.0 | 590.9 | 602.4 | 0.29 | % | |||||||||||||||
| ^Kemmer, LLC and Pitts Package Store, Inc. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/31/2039 | 117.5 | 111.8 | 115.7 | 0.06 | % | |||||||||||||||
| ^Wilban LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/28/2039 | 427.5 | 407.2 | 429.7 | 0.21 | % | |||||||||||||||
| ^Lake Area Autosound LLC and Ryan H. Whittington | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 7/28/2039 | 125.0 | 120.5 | 126.7 | 0.06 | % | |||||||||||||||
| ^Hascher Gabelstapler Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/26/2024 | 143.3 | 114.5 | 115.4 | 0.06 | % | |||||||||||||||
| ^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox | Social Assistance | Term Loan | Prime plus 2.75% | 3/21/2039 | 145.0 | 138.0 | 144.6 | 0.07 | % | |||||||||||||||
| ^Cormac Enterprises and Wyoming Valley Beverage Incorporated | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/20/2039 | 110.8 | 105.4 | 112.0 | 0.05 | % | |||||||||||||||
| ^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co. | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 3/20/2039 | 497.5 | 477.3 | 507.2 | 0.24 | % | |||||||||||||||
| ^Kinisi, Inc. dba The River North UPS Store | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/18/2024 | 41.3 | 26.2 | 26.4 | 0.01 | % | |||||||||||||||
| ^SE Properties 39 Old Route 146, LLC, SmartEarly Clifton Park LLC | Social Assistance | Term Loan | Prime plus 2.75% | 3/14/2039 | 408.0 | 388.7 | 413.0 | 0.20 | % | |||||||||||||||
| ^Tortilla King Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/14/2039 | 216.9 | 206.9 | 216.0 | 0.10 | % | |||||||||||||||
| ^Tortilla King, Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/14/2029 | 1,033.1 | 926.1 | 943.6 | 0.45 | % | |||||||||||||||
| ^Bowl Mor, LLC dba Bowl Mor Lanes / Spare Lounge, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/13/2039 | 223.5 | 212.3 | 225.6 | 0.11 | % | |||||||||||||||
| ^Avayaan2 LLC dba Island Cove | Gasoline Stations | Term Loan | Prime plus 2.75% | 3/7/2039 | 157.5 | 149.6 | 157.8 | 0.08 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
125
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Onofrio's Fresh Cut Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/6/2024 | 75.0 | 59.1 | 59.9 | 0.03 | % | |||||||||||||||
| ^R & R Boyal LLC dba Cap N Cat Clam Bar and Little Ease Tavern | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/28/2039 | 417.5 | 396.0 | 416.4 | 0.20 | % | |||||||||||||||
| ^Summit Beverage Group LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 2/28/2024 | 350.6 | 273.7 | 275.2 | 0.13 | % | |||||||||||||||
| ^952 Boston Post Road Realty, LLC and HNA LLC dba Styles International | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/28/2039 | 211.0 | 200.1 | 209.9 | 0.10 | % | |||||||||||||||
| ^Choe Trade Group Inc dba Rapid Printers of Monterey | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 2/28/2024 | 159.3 | 124.4 | 126.8 | 0.06 | % | |||||||||||||||
| ^Faith Memorial Chapel LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 2/28/2039 | 214.2 | 203.6 | 213.3 | 0.10 | % | |||||||||||||||
| ^96 Mill Street LLC, Central Pizza LLC and Jason Bikakis George Bikaki | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/12/2039 | 141.3 | 134.5 | 142.9 | 0.07 | % | |||||||||||||||
| ^JWB Industries, Inc. dba Carteret Die Casting | Primary Metal Manufacturing | Term Loan | Prime plus 2.75% | 2/11/2024 | 280.0 | 218.6 | 216.4 | 0.10 | % | |||||||||||||||
| ^Awesome Pets II Inc dba Mellisa's Pet Depot | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 2/7/2024 | 83.2 | 65.7 | 65.2 | 0.03 | % | |||||||||||||||
| ^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/7/2039 | 99.1 | 94.4 | 99.5 | 0.05 | % | |||||||||||||||
| ^Sovereign Communications LLC | Broadcasting (except Internet) | Term Loan | Prime plus 2.75% | 2/7/2024 | 907.8 | 712.6 | 702.2 | 0.34 | % | |||||||||||||||
| ^Sarah Sibadan dba Sibadan Agency | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 1/27/2039 | 129.4 | 122.5 | 129.7 | 0.06 | % | |||||||||||||||
| ^3Fmanagement LLC and ATC Fitness Cape Coral, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 1/24/2024 | 425.0 | 328.7 | 326.6 | 0.16 | % | |||||||||||||||
| ^JDR Industries Inc dba CST-The Composites Store, JetCat USA | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 1/21/2024 | 140.3 | 108.5 | 108.2 | 0.05 | % | |||||||||||||||
| ^Icore Enterprises Inc dba Air Flow Filters Inc | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 1/15/2024 | 21.8 | 16.8 | 17.1 | 0.01 | % | |||||||||||||||
| ^Carl R. Bieber, Inc. dba Bieber Tourways/Bieber Transportation/Bieber | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/30/2027 | 712.5 | 616.3 | 635.8 | 0.30 | % | |||||||||||||||
| ^Nutmeg North Associates LLC Steeltech Building Products Inc | Construction of Buildings | Term Loan | Prime plus 2.75% | 12/31/2038 | 897.8 | 868.1 | 909.1 | 0.43 | % | |||||||||||||||
| ^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/27/2023 | 656.3 | 511.4 | 521.0 | 0.25 | % | |||||||||||||||
| ^Shane M. Howell and Buck Hardware and Garden Center, LLC | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 12/27/2038 | 322.5 | 304.7 | 318.7 | 0.15 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
126
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^KK International Trading Corporation | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/23/2028 | 190.0 | 165.0 | 169.4 | 0.08 | % | |||||||||||||||
| ^Kurtis Sniezek dba Wolfe's Foreign Auto | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/20/2038 | 88.9 | 84.0 | 89.2 | 0.04 | % | |||||||||||||||
| ^Mosley Auto Group LLC dba America's Automotive | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/20/2038 | 221.5 | 209.3 | 221.5 | 0.11 | % | |||||||||||||||
| ^Lefont Theaters Inc. | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 12/19/2023 | 14.4 | 11.0 | 11.0 | 0.01 | % | |||||||||||||||
| ^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/19/2038 | 555.3 | 524.6 | 550.6 | 0.26 | % | |||||||||||||||
| ^TAK Properties LLC and Kinderland Inc | Social Assistance | Term Loan | Prime plus 2.75% | 12/18/2038 | 405.0 | 383.2 | 402.7 | 0.19 | % | |||||||||||||||
| ^Any Garment Cleaner-East Brunswick, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/18/2023 | 53.8 | 41.4 | 41.9 | 0.02 | % | |||||||||||||||
| ^TOL LLC dba Wild Birds Unlimited | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 12/13/2023 | 18.0 | 14.3 | 14.2 | 0.01 | % | |||||||||||||||
| ^8 Minute Oil Change of Springfield Corporation and John Nino | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/12/2038 | 196.8 | 182.0 | 192.9 | 0.09 | % | |||||||||||||||
| ^920 CHR Realty LLC V. Garofalo Carting Inc | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 12/10/2038 | 418.1 | 395.0 | 419.6 | 0.20 | % | |||||||||||||||
| ^DKB Transport Corp | Truck Transportation | Term Loan | Prime plus 2.75% | 12/5/2038 | 138.8 | 131.1 | 139.2 | 0.07 | % | |||||||||||||||
| ^Firm Foundations Inc David S Gaitan Jr and Christopher K Daigle | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/3/2038 | 104.3 | 98.5 | 102.3 | 0.05 | % | |||||||||||||||
| ^Spectrum Development LLC and Solvit Inc & Solvit North, Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/2/2023 | 387.3 | 296.6 | 296.7 | 0.14 | % | |||||||||||||||
| ^BVIP Limousine Service LTD | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 11/27/2038 | 76.5 | 72.1 | 76.2 | 0.04 | % | |||||||||||||||
| ^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 11/27/2023 | 67.2 | 51.0 | 50.4 | 0.02 | % | |||||||||||||||
| ^Wallace Holdings LLC,GFA International Inc | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.5% | 11/25/2023 | 125.0 | 94.5 | 92.5 | 0.04 | % | |||||||||||||||
| ^AcuCall LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/21/2023 | 15.8 | 11.9 | 11.6 | 0.01 | % | |||||||||||||||
| ^Seven Peaks Mining Inc and Cornerstone Industrial Minerals Corporation | Mining (except Oil and Gas) | Term Loan | Prime plus 2.75% | 11/18/2038 | 1,250.0 | 1,175.6 | 1,218.3 | 0.58 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
127
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Kids in Motion of Springfield LLC dba The Little Gym of Springfield IL | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 11/18/2023 | 45.0 | 34.8 | 34.3 | 0.02 | % | |||||||||||||||
| ^Yousef Khatib dba Y&M Enterprises | Wholesale Electronic Markets and Agents and Brokers | Term Loan | Prime plus 2.75% | 11/15/2023 | 75.0 | 56.9 | 56.2 | 0.03 | % | |||||||||||||||
| ^Howell Gun Works LLC | Sporting Goods, Hobby, Musical Instrument, and Book Stores | Term Loan | Prime plus 2.75% | 11/14/2023 | 8.3 | 6.4 | 6.2 | — | % | |||||||||||||||
| ^Polpo Realty, LLC, Polpo Restaurant, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/6/2038 | 62.5 | 58.9 | 62.5 | 0.03 | % | |||||||||||||||
| ^Twinsburg Hospitality Group LLC dba Comfort Suites | Accommodation | Term Loan | Prime plus 2.75% | 10/31/2038 | 945.0 | 893.7 | 937.8 | 0.45 | % | |||||||||||||||
| ^Mid-Land Sheet Metal Inc | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 10/31/2038 | 137.5 | 129.6 | 136.9 | 0.07 | % | |||||||||||||||
| ^Master CNC Inc & Master Properties LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 10/31/2038 | 596.6 | 561.6 | 585.4 | 0.28 | % | |||||||||||||||
| ^Janice B. McShan and The Metropolitan Day School, LLC | Social Assistance | Term Loan | Prime plus 2.75% | 10/31/2023 | 42.8 | 33.1 | 33.7 | 0.02 | % | |||||||||||||||
| ^1 North Restaurant Corp dba 1 North Steakhouse | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 10/31/2038 | 212.5 | 200.0 | 211.6 | 0.10 | % | |||||||||||||||
| ^Meridian Hotels LLC dba Best Western Jonesboro | Accommodation | Term Loan | Prime plus 2.75% | 10/29/2038 | 664.5 | 625.3 | 664.1 | 0.32 | % | |||||||||||||||
| ^New Image Building Services Inc. dba New Image Repair Services | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/29/2023 | 331.3 | 248.9 | 247.0 | 0.12 | % | |||||||||||||||
| ^Greenbrier Technical Services, Inc | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/24/2023 | 240.1 | 164.4 | 167.5 | 0.08 | % | |||||||||||||||
| ^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 10/24/2038 | 246.3 | 231.8 | 242.6 | 0.12 | % | |||||||||||||||
| ^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 10/18/2023 | 87.5 | 65.7 | 65.3 | 0.03 | % | |||||||||||||||
| ^Cencon Properties LLC and Central Connecticut Warehousing Company | Warehousing and Storage | Term Loan | Prime plus 2.75% | 9/30/2038 | 344.5 | 324.0 | 343.7 | 0.16 | % | |||||||||||||||
| ^Onofrios Enterprises LLC Onofrios Fresh Cut, Inc | Food Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2038 | 312.5 | 294.6 | 310.8 | 0.15 | % | |||||||||||||||
| ^Discount Wheel and Tire | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 9/30/2038 | 223.8 | 210.1 | 220.5 | 0.11 | % | |||||||||||||||
| ^First Steps Real Estate Company, LLC and First Steps Preschool | Social Assistance | Term Loan | Prime plus 2.75% | 9/30/2038 | 97.6 | 91.7 | 95.7 | 0.05 | % | |||||||||||||||
| ^Lenoir Business Partners LLC LP Industries, Inc dba Childforms | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2038 | 322.7 | 308.0 | 324.4 | 0.16 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
128
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Top Properties LLC and LP Industries, Inc dba Childforms | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 9/30/2038 | 120.0 | 114.3 | 121.4 | 0.06 | % | |||||||||||||||
| ^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/27/2038 | 335.1 | 314.6 | 331.2 | 0.16 | % | |||||||||||||||
| ^Gabrielle Realty, LLC | Gasoline Stations | Term Loan | Prime plus 2.75% | 9/27/2038 | 757.6 | 711.3 | 746.0 | 0.36 | % | |||||||||||||||
| ^Anthony C Dinoto and Susan S P Dinoto and Anthony C Dinoto Funeral Homes | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/26/2038 | 100.0 | 94.0 | 99.8 | 0.05 | % | |||||||||||||||
| ^Eastside Soccer Dome, Inc . | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/26/2038 | 463.8 | 435.4 | 462.1 | 0.22 | % | |||||||||||||||
| ^Southeast Chicago Soccer, Inc. | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/26/2038 | 51.3 | 48.1 | 51.1 | 0.02 | % | |||||||||||||||
| ^HJ & Edward Enterprises, LLC dba Sky Zone | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/26/2023 | 262.5 | 201.7 | 203.3 | 0.10 | % | |||||||||||||||
| ^Kiddie Steps 4 You Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 9/25/2038 | 89.3 | 85.6 | 89.5 | 0.04 | % | |||||||||||||||
| ^Diamond Memorials Incorporated | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/25/2023 | 14.3 | 9.7 | 9.5 | — | % | |||||||||||||||
| ^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta | Educational Services | Term Loan | Prime plus 2.75% | 9/20/2023 | 46.3 | 34.6 | 34.2 | 0.02 | % | |||||||||||||||
| ^Faith Memorial Chapel LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/20/2038 | 268.4 | 252.8 | 266.1 | 0.13 | % | |||||||||||||||
| ^Westville Seafood LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/19/2038 | 112.3 | 105.4 | 110.7 | 0.05 | % | |||||||||||||||
| ^Maynard Enterprises Inc dba Fastsigns of Texarkana | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 9/18/2023 | 16.1 | 12.1 | 12.0 | 0.01 | % | |||||||||||||||
| ^Grafio Inc dba Omega Learning Center-Acworth | Educational Services | Term Loan | Prime plus 2.75% | 9/13/2023 | 156.3 | 123.3 | 122.2 | 0.06 | % | |||||||||||||||
| ^Sound Manufacturing Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 9/12/2028 | 54.8 | 46.9 | 47.7 | 0.02 | % | |||||||||||||||
| ^The Berlerro Group, LLC dba Sky Zone | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/12/2023 | 421.3 | 323.5 | 320.0 | 0.15 | % | |||||||||||||||
| ^Prospect Kids Academy Inc | Educational Services | Term Loan | Prime plus 2.75% | 9/11/2038 | 124.3 | 116.4 | 122.8 | 0.06 | % | |||||||||||||||
| ^Alma J. and William R. Walton and Almas Child Day Care Center | Social Assistance | Term Loan | Prime plus 2.75% | 9/11/2038 | 39.5 | 37.1 | 39.4 | 0.02 | % | |||||||||||||||
| ^B for Brunette dba Blo | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/10/2023 | 53.4 | 40.3 | 39.5 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
129
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Schmaltz Holdings, LLC and Schmaltz Operations, LLC dba Companio | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/4/2038 | 224.2 | 208.8 | 219.1 | 0.10 | % | |||||||||||||||
| ^Excel RP Inc | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 8/30/2023 | 130.3 | 96.0 | 97.5 | 0.05 | % | |||||||||||||||
| ^IlOKA Inc dba Microtech Tel and NewCloud Networks | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/30/2023 | 687.5 | 506.6 | 504.2 | 0.24 | % | |||||||||||||||
| ^ACI Northwest Inc. | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 8/30/2023 | 906.3 | 452.8 | 459.3 | 0.22 | % | |||||||||||||||
| ^Spectrum Radio Fairmont, LLC | Broadcasting (except Internet) | Term Loan | Prime plus 2.75% | 8/30/2023 | 187.5 | 164.3 | 167.0 | 0.08 | % | |||||||||||||||
| ^Gulfport Academy Child Care and Learning Center, Inc. | Social Assistance | Term Loan | Prime plus 2.75% | 8/30/2023 | 43.3 | 31.9 | 32.3 | 0.02 | % | |||||||||||||||
| ^Ramard Inc and Advanced Health Sciences Inc | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 8/28/2023 | 187.5 | 138.2 | 135.3 | 0.06 | % | |||||||||||||||
| ^RM Hawkins LLC dba Pure Water Tech West and Robert M Hawkins | Nonstore Retailers | Term Loan | Prime plus 2.75% | 8/26/2023 | 85.8 | 59.8 | 60.9 | 0.03 | % | |||||||||||||||
| ^JSIL LLC dba Blackstones Hairdressing | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 8/16/2023 | 19.5 | 14.2 | 14.1 | 0.01 | % | |||||||||||||||
| ^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 8/14/2038 | 445.0 | 326.6 | 341.3 | 0.16 | % | |||||||||||||||
| ^Caribbean Concepts, Inc. dba Quick Bleach | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 8/12/2023 | 22.5 | 16.7 | 16.4 | 0.01 | % | |||||||||||||||
| ^209 North 3rd Street, LLC, Yuster Insurance Group Inc | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 7/29/2038 | 83.9 | 78.5 | 82.7 | 0.04 | % | |||||||||||||||
| ^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/26/2038 | 190.0 | 177.7 | 186.2 | 0.09 | % | |||||||||||||||
| ^Daniel W and Erin H Gordon and Silver Lining Stables CT, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/24/2023 | 11.3 | 8.2 | 8.4 | — | % | |||||||||||||||
| ^Angkor Restaurant Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/19/2038 | 93.0 | 87.1 | 92.1 | 0.04 | % | |||||||||||||||
| ^Harbor Ventilation Inc and Estes Investment, LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/19/2038 | 92.1 | 22.4 | 23.7 | 0.01 | % | |||||||||||||||
| ^Tri County Heating and Cooling Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/19/2023 | 87.8 | 64.0 | 65.0 | 0.03 | % | |||||||||||||||
| ^Morning Star Trucking LLC and Morning Star Equipment and Leasing LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 7/17/2023 | 53.8 | 39.2 | 38.4 | 0.02 | % | |||||||||||||||
| ^Maxiflex LLC | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 6/28/2023 | 153.5 | 110.5 | 112.9 | 0.05 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
130
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^GIA Realty LLC and VRAJ GIA LLC dba Lakeview Laundromat | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/28/2038 | 97.5 | 91.0 | 97.1 | 0.05 | % | |||||||||||||||
| ^JRA Holdings LLC, Jasper County Cleaners Inc dba Superior Cleaner | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/28/2038 | 121.0 | 112.0 | 119.4 | 0.06 | % | |||||||||||||||
| ^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 6/19/2026 | 1,250.0 | 788.0 | 812.6 | 0.39 | % | |||||||||||||||
| ^CBlakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services | Heavy and Civil Engineering Construction | Term Loan | Prime plus 2.75% | 6/18/2028 | 875.0 | 737.8 | 765.6 | 0.37 | % | |||||||||||||||
| ^KDP LLC and KDP Investment Advisors, Inc and KDP Asset Management, Inc | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 6/14/2023 | 343.8 | 248.2 | 249.4 | 0.12 | % | |||||||||||||||
| ^Elite Structures Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 6/12/2038 | 932.8 | 847.9 | 904.0 | 0.43 | % | |||||||||||||||
| ^Willowbrook Properties LLC, Grove Gardens Landscaping Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 6/5/2038 | 186.3 | 173.9 | 184.9 | 0.09 | % | |||||||||||||||
| ^Absolute Desire LLC and Mark H. Szierer, Sophisticated Smile | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/5/2038 | 188.3 | 175.9 | 186.1 | 0.09 | % | |||||||||||||||
| ^RKP Service dba Rainbow Carwash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/31/2023 | 300.0 | 216.7 | 218.1 | 0.10 | % | |||||||||||||||
| ^RXSB, Inc dba Medicine Shoppe | Health and Personal Care Stores | Term Loan | Prime plus 2.75% | 5/30/2023 | 186.3 | 133.3 | 133.7 | 0.06 | % | |||||||||||||||
| ^Gregory P Jellenek OD and Associates PC dba Gregory P Jellenek OD | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 5/28/2023 | 63.5 | 45.3 | 45.8 | 0.02 | % | |||||||||||||||
| ^Ryan D. Thornton and Thornton & Associates LLC | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 5/24/2023 | 68.8 | 37.3 | 37.4 | 0.02 | % | |||||||||||||||
| ^PowerWash Plus, Inc. and CJR, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/30/2038 | 550.0 | 512.3 | 543.3 | 0.26 | % | |||||||||||||||
| ^Peanut Butter & Co., Inc. | Food Manufacturing | Term Loan | Prime plus 2.75% | 4/30/2023 | 100.0 | 70.3 | 70.6 | 0.03 | % | |||||||||||||||
| ^Brothers International Desserts | Food Manufacturing | Term Loan | Prime plus 2.75% | 4/26/2023 | 230.0 | 162.6 | 164.9 | 0.08 | % | |||||||||||||||
| ^Kidrose, LLC dba Kidville Riverdale | Educational Services | Term Loan | Prime plus 2.75% | 4/22/2023 | 78.8 | 56.3 | 56.9 | 0.03 | % | |||||||||||||||
| ^Vernon & Stephanie Scott and Little Stars Day Care Center, Inc. | Educational Services | Term Loan | Prime plus 2.75% | 4/18/2038 | 151.0 | 140.5 | 149.8 | 0.07 | % | |||||||||||||||
| ^1258 Hartford TPKE, LLC and Phelps and Sons, Inc | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 3/29/2038 | 124.6 | 115.7 | 122.4 | 0.06 | % | |||||||||||||||
| ^Capital Scrap Metal, LLC and Powerline Investment, LLC | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 3/29/2038 | 500.0 | 441.7 | 470.7 | 0.23 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
131
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads; | Food Manufacturing | Term Loan | Prime plus 2.75% | 3/29/2038 | 336.0 | 312.5 | 330.0 | 0.16 | % | |||||||||||||||
| ^Neyra Industries, Inc. and Edward Neyra | Nonmetallic Mineral Product Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2023 | 217.5 | 152.1 | 155.1 | 0.07 | % | |||||||||||||||
| ^A & M Commerce, Inc. dba Cranberry Sunoco | Gasoline Stations | Term Loan | Prime plus 2.75% | 3/27/2038 | 330.3 | 306.4 | 325.7 | 0.16 | % | |||||||||||||||
| ^Xela Pack, Inc. and Aliseo and Catherine Gentile | Paper Manufacturing | Term Loan | Prime plus 2.75% | 3/27/2028 | 271.8 | 225.8 | 234.1 | 0.11 | % | |||||||||||||||
| ^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 3/25/2038 | 537.5 | 499.0 | 528.7 | 0.25 | % | |||||||||||||||
| ^Michael A.and HeatherR. Welsch dba Art & FrameEtc. | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 3/22/2038 | 67.5 | 62.7 | 66.6 | 0.03 | % | |||||||||||||||
| ^M & H Pine Straw Inc and Harris L. Maloy | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 3/21/2023 | 288.8 | 201.8 | 205.1 | 0.10 | % | |||||||||||||||
| ^Truth Technologies Inc dba Truth Technologies Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 3/21/2023 | 79.5 | 55.6 | 55.9 | 0.03 | % | |||||||||||||||
| ^J. Kinderman & Sons Inc., dba BriteStar Inc. | Electrical Equipment, Appliance, and Component Manufacturing | Term Loan | Prime plus 2.75% | 12/31/2018 | 181.3 | 129.5 | 129.8 | 0.06 | % | |||||||||||||||
| ^Stellar Environmental LLC | Waste Management and Remediation Services | Term Loan | Prime plus 2.75% | 3/18/2023 | 56.3 | 39.4 | 40.1 | 0.02 | % | |||||||||||||||
| ^Sound Manufacturing, Inc. and Monster Power Equipment Inc. | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 3/15/2023 | 523.0 | 364.8 | 369.5 | 0.18 | % | |||||||||||||||
| ^Golden Gate Lodging LLC | Accommodation | Term Loan | Prime plus 2.75% | 3/12/2038 | 115.0 | 106.8 | 113.4 | 0.05 | % | |||||||||||||||
| ^Bakhtar Group LLC dba Malmaison | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2023 | 103.8 | 72.4 | 72.6 | 0.03 | % | |||||||||||||||
| ^River Club Golf Course Inc dba The River Club | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2038 | 475.2 | 440.2 | 467.2 | 0.22 | % | |||||||||||||||
| ^Osceola River Mill, LLC(EPC) Ironman Machine, Inc. | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 2/20/2038 | 86.3 | 79.9 | 84.9 | 0.04 | % | |||||||||||||||
| ^Java Warung, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/19/2038 | 51.0 | 47.3 | 50.3 | 0.02 | % | |||||||||||||||
| ^Nancy & Karl Schmidt(EPC) Moments to Remember USA, LLC | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 2/15/2038 | 106.3 | 98.5 | 104.6 | 0.05 | % | |||||||||||||||
| ^Orient Direct, Inc. dba Spracht, Celltek, ODI | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 2/12/2023 | 84.9 | 58.0 | 58.1 | 0.03 | % | |||||||||||||||
| ^Knits R Us, Inc. dba NYC Sports | Textile Mills | Term Loan | Prime plus 2.75% | 2/11/2038 | 125.0 | 116.0 | 123.6 | 0.06 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
132
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^North Country Transport, LLC | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 2/6/2023 | 15.0 | 10.4 | 10.6 | 0.01 | % | |||||||||||||||
| ^MJD Investments, LLC dba The Community Day School | Social Assistance | Term Loan | Prime plus 2.75% | 1/31/2038 | 258.3 | 238.9 | 253.2 | 0.12 | % | |||||||||||||||
| ^Sherill Universal City dba Golden Corral | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/28/2038 | 440.5 | 409.0 | 433.7 | 0.21 | % | |||||||||||||||
| ^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 12/31/2022 | 97.5 | 66.0 | 66.2 | 0.03 | % | |||||||||||||||
| ^Macho LLC Madelaine Chocolate Novelties Inc dba The Madelai | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/31/2037 | 500.0 | 463.9 | 494.1 | 0.24 | % | |||||||||||||||
| ^WI130, LLC & Lakeland Group, Inc dba Lakeland Electrical | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 12/31/2028 | 271.5 | 226.7 | 233.0 | 0.11 | % | |||||||||||||||
| ^Babie Bunnie Enterprises Inc dba Triangle Mothercare | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/28/2027 | 46.3 | 34.4 | 35.0 | 0.02 | % | |||||||||||||||
| ^John Duffy Fuel Co., Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/28/2022 | 513.8 | 348.0 | 354.7 | 0.17 | % | |||||||||||||||
| ^Polpo Realty LLC & Polpo Restaurant LLC dba Polpo Restauran | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/27/2037 | 517.5 | 479.6 | 510.7 | 0.24 | % | |||||||||||||||
| ^Martin L Hopp, MD PHD A Medical Corp dba Tower ENT | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/21/2022 | 66.3 | 44.7 | 45.1 | 0.02 | % | |||||||||||||||
| ^United Woodworking, Inc | Wood Product Manufacturing | Term Loan | 6% | 12/20/2022 | 17.3 | 11.7 | 11.9 | 0.01 | % | |||||||||||||||
| ^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 12/20/2022 | 225.0 | 152.3 | 154.0 | 0.07 | % | |||||||||||||||
| ^Ezzo Properties, LLC and Great Lakes Cleaning, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/20/2027 | 389.6 | 318.7 | 326.0 | 0.16 | % | |||||||||||||||
| ^The Amendments Group LLC dba Brightstar | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/17/2022 | 22.5 | 15.2 | 15.5 | 0.01 | % | |||||||||||||||
| ^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/30/2037 | 286.5 | 265.0 | 281.5 | 0.13 | % | |||||||||||||||
| ^Aegis Creative Communications, Inc. | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 11/30/2022 | 387.5 | 252.3 | 252.6 | 0.12 | % | |||||||||||||||
| ^Daniel Gordon and Erin Gordon and Silver Lining Stables CT, LLC | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 11/28/2037 | 223.8 | 206.2 | 219.5 | 0.10 | % | |||||||||||||||
| ^D&L Rescources, Inc. dba The UPS Store | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 11/27/2022 | 9.8 | 6.5 | 6.5 | — | % | |||||||||||||||
| ^Richmond Hill Mini Market, LLC | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 11/27/2037 | 185.3 | 170.7 | 181.3 | 0.09 | % | |||||||||||||||
| ^DRV Enterprise, Inc. dba Cici's Pizza # 339 | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/26/2022 | 65.0 | 40.5 | 41.3 | 0.02 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
133
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Clean Brothers Company Inc dba ServPro of North Washington County | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/21/2022 | 17.0 | 7.7 | 7.8 | — | % | |||||||||||||||
| ^U & A Food and Fuel, Inc. dba Express Gas & Food Mart | Gasoline Stations | Term Loan | Prime plus 2.75% | 11/21/2037 | 96.3 | 88.7 | 94.4 | 0.05 | % | |||||||||||||||
| ^Pioneer Windows Manufacturing Corp, Pioneer Windows | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 11/21/2022 | 275.0 | 184.0 | 186.0 | 0.09 | % | |||||||||||||||
| ^R & J Petroleum LLC Manar USA, Inc. | Gasoline Stations | Term Loan | Prime plus 2.75% | 11/20/2037 | 180.0 | 165.8 | 176.3 | 0.08 | % | |||||||||||||||
| ^St Judes Physical Therapy P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/19/2022 | 21.0 | 14.0 | 14.3 | 0.01 | % | |||||||||||||||
| ^Hi-Def Imaging, Inc. dba SpeedPro Imaging | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 11/9/2022 | 22.2 | 14.9 | 15.0 | 0.01 | % | |||||||||||||||
| ^Reidville Hydraulics Mfg Inc dba Summit | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 11/2/2037 | 265.9 | 245.2 | 258.7 | 0.12 | % | |||||||||||||||
| ^Big Apple Entertainment Partners, LLC dba Ripley's Believe It or Not | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 10/26/2022 | 180.0 | 121.8 | 122.0 | 0.06 | % | |||||||||||||||
| ^LA Diner Inc dba Loukas L A Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/28/2037 | 677.5 | 625.7 | 666.0 | 0.32 | % | |||||||||||||||
| ^ATC Fitness LLC dba Around the Clock Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/28/2022 | 180.0 | 120.7 | 122.5 | 0.06 | % | |||||||||||||||
| ^University Park Retreat, LLC dba Massage Heights | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 9/27/2022 | 76.0 | 49.6 | 50.5 | 0.02 | % | |||||||||||||||
| ^Forno Italiano Di Nonna Randazzo, LLC dba Nonna Randazzo's Bakery | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/26/2037 | 183.8 | 169.9 | 180.0 | 0.09 | % | |||||||||||||||
| ^LaSalle Market and Deli EOK Inc and Rugen Realty LLC dba LaSalle Mark | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/21/2037 | 252.3 | 231.4 | 245.0 | 0.12 | % | |||||||||||||||
| ^O'Rourkes Diner LLC dba O'Rourke's Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 9/19/2037 | 65.5 | 60.1 | 63.5 | 0.03 | % | |||||||||||||||
| ^Michael J. Speeney & Joyce Speeney and R2 Tape, Inc. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 8/31/2037 | 367.5 | 336.4 | 358.1 | 0.17 | % | |||||||||||||||
| ^AJK Enterprise LLC dba AJK Enterprise LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 8/27/2022 | 16.5 | 10.6 | 10.8 | 0.01 | % | |||||||||||||||
| ^New Image Building Services, Inc. dba New Image Repair Services | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/23/2037 | 285.7 | 261.6 | 275.7 | 0.13 | % | |||||||||||||||
| ^Suncoast Aluminum Furniture, Inc | Furniture and Related Product Manufacturing | Term Loan | Prime plus 2.75% | 8/17/2037 | 360.0 | 329.8 | 351.0 | 0.17 | % | |||||||||||||||
| ^Hofgard & Co., Inc. dba HofgardBenefits | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 7/27/2022 | 107.3 | 68.3 | 69.3 | 0.03 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
134
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Georgia Safe Sidewalks LLC | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/27/2022 | 15.0 | 9.4 | 9.5 | — | % | |||||||||||||||
| ^Scoville Plumbing & Heating Inc and Thomas P. Scoville | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 7/25/2022 | 50.0 | 33.5 | 34.1 | 0.02 | % | |||||||||||||||
| ^Central Tire, Inc. dba Cooper Tire & Auto Services | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/29/2037 | 288.5 | 262.8 | 280.1 | 0.13 | % | |||||||||||||||
| ^WPI, LLC | Transportation Equipment Manufacturing | Term Loan | Prime plus 2.75% | 6/29/2024 | 129.5 | 92.0 | 94.2 | 0.05 | % | |||||||||||||||
| ^Havana Central (NY) 5, LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/29/2022 | 1,166.8 | 766.6 | 780.9 | 0.37 | % | |||||||||||||||
| ^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/27/2037 | 69.8 | 63.5 | 67.8 | 0.03 | % | |||||||||||||||
| ^KIND-ER-ZZ Inc dba Kidville | Educational Services | Term Loan | Prime plus 2.75% | 6/15/2022 | 50.0 | 31.2 | 31.6 | 0.02 | % | |||||||||||||||
| ^Graphish Studio, Inc. and Scott Fishoff | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 6/14/2022 | 20.3 | 12.7 | 12.9 | 0.01 | % | |||||||||||||||
| ^ALF, LLC, Mulit-Service Eagle Tires | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 5/31/2037 | 62.9 | 57.2 | 61.1 | 0.03 | % | |||||||||||||||
| ^Craig R Freehauf dba Lincoln Theatre | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 5/31/2022 | 47.9 | 22.0 | 22.4 | 0.01 | % | |||||||||||||||
| ^Lefont Theaters, Inc. | Motion Picture and Sound Recording Industries | Term Loan | Prime plus 2.75% | 5/30/2022 | 137.0 | 85.2 | 86.6 | 0.04 | % | |||||||||||||||
| ^Christou Real Estate Holdings LLC dba Tops American Grill | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 5/17/2037 | 284.0 | 257.9 | 275.4 | 0.13 | % | |||||||||||||||
| ^Tracey Vita-Morris dba Tracey Vita's School of Dance | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 5/10/2022 | 22.5 | 14.0 | 14.2 | 0.01 | % | |||||||||||||||
| ^Bisson Transportation, Inc. | Truck Transportation | Term Loan | Prime plus 2.75% | 5/7/2037 | 588.1 | 553.0 | 588.9 | 0.28 | % | |||||||||||||||
| ^Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real | Truck Transportation | Term Loan | Prime plus 2.75% | 5/7/2022 | 528.8 | 350.0 | 356.3 | 0.17 | % | |||||||||||||||
| ^Fair Deal Food Mart Inc dba Neighbors Market | Gasoline Stations | Term Loan | Prime plus 2.75% | 5/3/2037 | 381.3 | 346.5 | 370.3 | 0.18 | % | |||||||||||||||
| ^Tanner Optical, Inc. dba Murphy Eye Care | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 4/27/2022 | 8.3 | 5.0 | 5.1 | — | % | |||||||||||||||
| ^Zane Filippone Co Inc dba Culligan Water Conditioning | Nonstore Retailers | Term Loan | Prime plus 2.75% | 4/12/2022 | 558.2 | 344.0 | 350.0 | 0.17 | % | |||||||||||||||
| ^Indoor Playgrounds Limited Liability Company dba Kidville | Educational Services | Term Loan | Prime plus 2.75% | 4/5/2022 | 19.5 | 8.4 | 8.6 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
135
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Brandywine Picnic Park, Inc. and B.Ross Capps & Linda Capps | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/30/2031 | 231.5 | 195.9 | 205.8 | 0.10 | % | |||||||||||||||
| ^Access Staffing, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/30/2022 | 187.5 | 113.6 | 114.8 | 0.05 | % | |||||||||||||||
| ^Willow Springs Golf Course, Inc. & JC Lindsey Family Limited Partners | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 3/29/2037 | 755.4 | 696.2 | 743.5 | 0.36 | % | |||||||||||||||
| ^Manuel P. Barrera and Accura Electrical Contractor, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 3/23/2028 | 103.7 | 82.0 | 84.9 | 0.04 | % | |||||||||||||||
| ^Shweiki Media, Inc. dba Study Breaks Magazine | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 3/22/2027 | 1,178.8 | 916.7 | 947.4 | 0.45 | % | |||||||||||||||
| ^ATC Fitness, LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2022 | 10.2 | 6.1 | 6.2 | — | % | |||||||||||||||
| ^ATI Jet, Inc. | Air Transportation | Term Loan | Prime plus 2.75% | 12/28/2026 | 852.8 | 643.1 | 664.9 | 0.32 | % | |||||||||||||||
| ^J. Kinderman & Sons, Inc. dba Brite Star Manufacturing Company | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 12/22/2036 | 495.0 | 452.5 | 482.9 | 0.23 | % | |||||||||||||||
| ^K's Salon, LLC d/b/a K's Salon | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/20/2021 | 73.6 | 42.8 | 43.2 | 0.02 | % | |||||||||||||||
| ^15 Frederick Place LLC & Pioneer Windows Holdings Inc & Subs | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 12/16/2021 | 250.0 | 144.1 | 146.2 | 0.07 | % | |||||||||||||||
| ^M & H Pinestraw, Inc. and Harris L. Maloy | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 12/15/2021 | 238.3 | 138.6 | 140.5 | 0.07 | % | |||||||||||||||
| ^Taylor Transport, Inc | Truck Transportation | Term Loan | Prime plus 2.75% | 12/8/2021 | 515.5 | 219.2 | 223.1 | 0.11 | % | |||||||||||||||
| ^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc. | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 11/16/2021 | 62.5 | 35.6 | 36.3 | 0.02 | % | |||||||||||||||
| ^MRM Supermarkets, Inc. dba Constantin's Breads | Food Manufacturing | Term Loan | Prime plus 2.75% | 11/10/2021 | 137.5 | 79.0 | 80.2 | 0.04 | % | |||||||||||||||
| ^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 10/26/2021 | 58.8 | 34.4 | 34.8 | 0.02 | % | |||||||||||||||
| ^28 Cornelia Street Properties, LLC and Zouk, Ltd.dba Palma | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 10/25/2021 | 22.5 | 12.5 | 12.7 | 0.01 | % | |||||||||||||||
| ^PTK, Incorporated dba Night N Day 24 HR Convenience Store | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 9/30/2036 | 137.5 | 122.9 | 131.0 | 0.06 | % | |||||||||||||||
| ^39581 Garfield, LLC and Tricounty Neurological Associates, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/30/2036 | 28.5 | 25.3 | 26.9 | 0.01 | % | |||||||||||||||
| ^39581 Garfield, LLC and Tri County Neurological Associates, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 9/30/2036 | 83.3 | 74.3 | 79.1 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
136
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Robert E. Caves, Sr. and American Plank dba Caves Enterprises | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/30/2021 | 302.5 | 165.5 | 168.3 | 0.08 | % | |||||||||||||||
| ^Big Apple Entertainment Partners, LLC dba Ripley's Believe it or Not | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/28/2021 | 1,070.0 | 589.1 | 594.4 | 0.28 | % | |||||||||||||||
| ^Polymer Sciences, Inc. dba Polymer Sciences, Inc. | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 9/28/2036 | 422.6 | 377.3 | 402.4 | 0.19 | % | |||||||||||||||
| ^Equity National Capital LLC & Chadbourne Road Capital, LLC | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 9/26/2021 | 62.5 | 34.8 | 35.2 | 0.02 | % | |||||||||||||||
| ^Bryan Bantry Inc. | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 9/8/2021 | 400.0 | 148.1 | 149.4 | 0.07 | % | |||||||||||||||
| ^SBR Technologies d/b/a Color Graphics | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/31/2021 | 806.2 | 433.9 | 441.2 | 0.21 | % | |||||||||||||||
| ^Michael S. Decker & Janet Decker dba The Hen House Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/30/2036 | 16.4 | 14.7 | 15.6 | 0.01 | % | |||||||||||||||
| ^Qycell Corporation | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 8/19/2021 | 187.5 | 97.1 | 98.2 | 0.05 | % | |||||||||||||||
| ^Trademark Equipment Company Inc and David A. Daniel | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 8/19/2036 | 133.6 | 119.1 | 126.8 | 0.06 | % | |||||||||||||||
| ^Valiev Ballet Academy, Inc | Performing Arts, Spectator Sports, and Related Industries | Term Loan | Prime plus 2.75% | 8/12/2036 | 91.5 | 37.8 | 40.3 | 0.02 | % | |||||||||||||||
| ^A & A Auto Care, LLC dba A & A Auto Care, LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 8/12/2036 | 101.0 | 90.1 | 96.0 | 0.05 | % | |||||||||||||||
| ^LaHoBa, LLC dba Papa John's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/3/2036 | 77.5 | 68.6 | 73.2 | 0.04 | % | |||||||||||||||
| ^Kelly Chon LLC dba Shi-Golf | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 7/29/2021 | 17.5 | 6.9 | 7.0 | — | % | |||||||||||||||
| ^MTV Bowl, Inc. dba Legend Lanes | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/30/2036 | 248.5 | 223.0 | 237.7 | 0.11 | % | |||||||||||||||
| ^Lavertue Properties LLP dba Lavertue Properties | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | Prime plus 2.75% | 6/29/2036 | 44.8 | 39.8 | 42.5 | 0.02 | % | |||||||||||||||
| ^Lisle Lincoln II Limited Partnership dba Lisle Lanes LP | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/29/2036 | 338.1 | 312.0 | 332.9 | 0.16 | % | |||||||||||||||
| ^Pierce Developments, Inc. dba Southside Granite | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 6/13/2036 | 256.1 | 227.3 | 242.2 | 0.12 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
137
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Major Queens Body & Fender Corp | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/10/2021 | 28.6 | 15.2 | 15.4 | 0.01 | % | |||||||||||||||
| ^J&K Fitness, LLC dba Physiques Womens Fitness Center | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/8/2036 | 449.3 | 407.6 | 434.9 | 0.21 | % | |||||||||||||||
| ^Peanut Butter & Co., Inc. dba Peanut Butter & Co. | Merchant Wholesalers, Nondurable Goods | Term Loan | Prime plus 2.75% | 6/3/2021 | 65.5 | 33.6 | 34.0 | 0.02 | % | |||||||||||||||
| ^Demand Printing Solutions, Inc. and MLM Enterprises, LLC dba Demand | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 5/27/2021 | 16.5 | 8.6 | 8.7 | — | % | |||||||||||||||
| ^Modern on the Mile, LLC dba Ligne Roset | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 5/25/2021 | 212.5 | 110.0 | 111.4 | 0.05 | % | |||||||||||||||
| ^Music Mountain Water Company, LLC | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 4/25/2036 | 138.1 | 121.4 | 129.6 | 0.06 | % | |||||||||||||||
| ^Profile Performance, Inc. and Eidak Real Estate, L.L.C. | Repair and Maintenance | Term Loan | Prime plus 2.75% | 4/20/2036 | 127.5 | 112.6 | 120.2 | 0.06 | % | |||||||||||||||
| ^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store | Nonstore Retailers | Term Loan | Prime plus 2.75% | 4/18/2036 | 129.5 | 116.5 | 124.4 | 0.06 | % | |||||||||||||||
| ^Michael S. Korfe dba North Valley Auto Repair | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/24/2036 | 15.5 | 13.7 | 14.6 | 0.01 | % | |||||||||||||||
| ^Actknowledge,Inc dba Actknowledge | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 3/21/2021 | 57.3 | 29.0 | 29.4 | 0.01 | % | |||||||||||||||
| ^Food & Beverage Associates Of N.J. Inc | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/11/2021 | 10.0 | 4.4 | 4.5 | — | % | |||||||||||||||
| ^Key Products I&II, Inc. dba Dunkin' Donuts/Baskin-Robbins | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 3/10/2021 | 153.0 | 77.5 | 78.4 | 0.04 | % | |||||||||||||||
| ^Stephen Frank, Patricia Frank and Suds Express LLC dba Frank Chiropra | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 2/25/2023 | 63.0 | 36.2 | 37.1 | 0.02 | % | |||||||||||||||
| ^SuzyQue’s LLC dba Suzy Que’s | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/11/2036 | 61.0 | 53.8 | 57.4 | 0.03 | % | |||||||||||||||
| ^Little People’s Village, LLC dba Little People’s Village | Social Assistance | Term Loan | Prime plus 2.75% | 1/31/2036 | 31.1 | 27.3 | 29.1 | 0.01 | % | |||||||||||||||
| ^Seagate Group Holdings, Inc. dba Seagate Logistics, Inc. | Support Activities for Transportation | Term Loan | Prime plus 2.75% | 1/28/2036 | 113.4 | 99.4 | 106.1 | 0.05 | % | |||||||||||||||
| ^Patrageous Enterprises, LLC dba Incredibly Edible Delites of Laurel | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 12/29/2020 | 7.6 | 3.5 | 3.5 | — | % | |||||||||||||||
| Dixie Transport, Inc. & Johnny D. Brown & Jimmy Brown & Maudain Brown | Support Activities for Transportation | Term Loan | 5.25% | 12/28/2035 | 145.9 | 137.4 | 146.2 | 0.07 | % | |||||||||||||||
| ^Shree OM Lodging, LLC dba Royal Inn | Accommodation | Term Loan | Prime plus 2.75% | 12/17/2035 | 27.7 | 24.2 | 25.8 | 0.01 | % | |||||||||||||||
| Groundworks Unlimited LLC | Specialty Trade Contractors | Term Loan | 6% | 12/17/2023 | 120.0 | 81.2 | 83.4 | 0.04 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
138
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Lodin Medical Imaging, LLC dba Watson Imaging Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/1/2020 | 66.4 | 30.7 | 31.1 | 0.01 | % | |||||||||||||||
| ^Robert F. Schuler and Lori A. Schuler dba Bob’s Service Center | Repair and Maintenance | Term Loan | Prime plus 2.75% | 11/30/2035 | 34.0 | 29.7 | 31.6 | 0.02 | % | |||||||||||||||
| ^Any Garment Cleaner-East Brunswick, Inc dba Any Garment Cleaner | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/18/2020 | 42.5 | 16.9 | 17.1 | 0.01 | % | |||||||||||||||
| ^West Cobb Enterprises, Inc and Advanced Eye Associates, L.L.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 11/12/2035 | 148.7 | 129.9 | 138.3 | 0.07 | % | |||||||||||||||
| ^Lincoln Park Physical Therapy | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 10/20/2020 | 43.5 | 19.9 | 20.2 | 0.01 | % | |||||||||||||||
| ^K9 Bytes, Inc & Epazz, Inc | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 9/30/2020 | 18.5 | 8.7 | 8.8 | — | % | |||||||||||||||
| ^Elan Realty, LLC and Albert Basse Asociates, Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 9/30/2035 | 228.2 | 198.3 | 211.3 | 0.10 | % | |||||||||||||||
| ^Success Express,Inc. dba Success Express | Couriers and Messengers | Term Loan | Prime plus 2.75% | 9/29/2020 | 91.8 | 41.1 | 41.4 | 0.02 | % | |||||||||||||||
| ^Modern Manhattan, LLC | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 9/20/2020 | 204.0 | 92.5 | 93.5 | 0.04 | % | |||||||||||||||
| ^Dirk's Trucking, L.L.C. dba Dirk's Trucking | Truck Transportation | Term Loan | Prime plus 2.75% | 9/17/2020 | 17.7 | 7.9 | 8.0 | — | % | |||||||||||||||
| ^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery | Repair and Maintenance | Term Loan | Prime plus 2.75% | 9/2/2035 | 50.1 | 43.4 | 46.3 | 0.02 | % | |||||||||||||||
| ^Newsome Trucking Inc and Kevin Newsome | Truck Transportation | Term Loan | Prime plus 2.75% | 9/2/2035 | 423.1 | 208.3 | 221.6 | 0.11 | % | |||||||||||||||
| ^California College of Communications, Inc. | Educational Services | Term Loan | Prime plus 2.75% | 11/2/2020 | 172.5 | 79.7 | 80.5 | 0.04 | % | |||||||||||||||
| ^DDLK Investments LLC dba Smoothie King | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/30/2020 | 7.5 | 2.6 | 2.6 | — | % | |||||||||||||||
| ^Planet Verte,LLC dba Audio Unlimited | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 9/20/2020 | 40.0 | 17.9 | 18.0 | 0.01 | % | |||||||||||||||
| ^Members Only Software | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 8/30/2020 | 40.3 | 17.6 | 17.8 | 0.01 | % | |||||||||||||||
| ^ActKnowledge,Inc dba ActKnowledge | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 6/30/2020 | 50.0 | 21.4 | 21.6 | 0.01 | % | |||||||||||||||
| ^I-90 RV & Auto Supercenter | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 6/29/2035 | 74.9 | 64.6 | 68.9 | 0.03 | % | |||||||||||||||
| ^WeaverVentures, Inc dba The UPS Store | Postal Service | Term Loan | Prime plus 2.75% | 7/28/2020 | 23.8 | 10.3 | 10.5 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
139
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^CJ Park Inc. dba Kidville Midtown West | Educational Services | Term Loan | Prime plus 2.75% | 6/25/2020 | 26.4 | 8.9 | 9.0 | — | % | |||||||||||||||
| ^Zouk, Ltd. dba Palma | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 8/25/2020 | 27.5 | 12.2 | 12.3 | 0.01 | % | |||||||||||||||
| ^Tanner Optical Inc. dba Murphy Eye Care | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/22/2035 | 94.6 | 81.7 | 87.1 | 0.04 | % | |||||||||||||||
| ^M & H Pine Straw, Inc.and Harris Maloy | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 7/10/2020 | 67.5 | 29.2 | 29.6 | 0.01 | % | |||||||||||||||
| ^Excel RP, Inc., Kevin and Joann Foley | Machinery Manufacturing | Term Loan | Prime plus 2.75% | 7/8/2028 | 50.0 | 37.9 | 39.6 | 0.02 | % | |||||||||||||||
| ValleyStar, Inc. dba BrightStar HealthCare | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/28/2020 | 0.6 | 2.6 | 2.6 | — | % | |||||||||||||||
| ^ValleyStar, Inc. dba BrightStar Healthcare | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/28/2020 | 7.5 | 3.2 | 3.2 | — | % | |||||||||||||||
| ^Diag, LLC dba Kidville | Educational Services | Term Loan | Prime plus 2.75% | 6/21/2020 | 37.5 | 15.6 | 15.8 | 0.01 | % | |||||||||||||||
| ^M & H Pine Straw, Inc and Harris L. Maloy | Support Activities for Agriculture and Forestry | Term Loan | 6% | 4/30/2020 | 183.3 | 59.4 | 60.2 | 0.03 | % | |||||||||||||||
| ^New Economic Methods LLC dba Rita's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/15/2020 | 24.8 | 0.7 | 0.7 | — | % | |||||||||||||||
| ^Cocoa Beach Parasail Corp. dba Cocoa Beach Parasail | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 4/26/2020 | 6.3 | 2.5 | 2.6 | — | % | |||||||||||||||
| ^Vortex Automotive LLC | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/5/2035 | 76.6 | 65.8 | 70.1 | 0.03 | % | |||||||||||||||
| ^ATC Fitness LLC dba Around the Clock Fitness | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 2/28/2019 | 15.0 | 4.5 | 4.5 | — | % | |||||||||||||||
| ^Lahoba,LLC dba Papa John's Pizza | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/30/2034 | 42.5 | 36.2 | 38.6 | 0.02 | % | |||||||||||||||
| ^Music Mountain Water Company,LLC dba Music Mountain Water Co. | Beverage and Tobacco Product Manufacturing | Term Loan | Prime plus 2.75% | 12/29/2019 | 185.4 | 69.1 | 69.9 | 0.03 | % | |||||||||||||||
| ^Animal Intrusion Prevention Systems Holding Company, LLC | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/29/2024 | 126.5 | 29.0 | 29.9 | 0.01 | % | |||||||||||||||
| ^David A. Nusblatt, D.M.D, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 12/11/2019 | 9.0 | 3.3 | 3.3 | — | % | |||||||||||||||
| ^CMA Consulting dba Construction Management Associates | Construction of Buildings | Term Loan | Prime plus 2.75% | 12/11/2019 | 58.5 | 19.5 | 19.7 | 0.01 | % | |||||||||||||||
| ^KMC RE, LLC & B&B Kennels | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/19/2034 | 58.3 | 49.5 | 52.7 | 0.03 | % | |||||||||||||||
| ^Demand Printing Solutions, Inc. | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 12/12/2019 | 10.0 | 3.6 | 3.7 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
140
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Planet Verte, LLC dba Audio Unlimited of Oceanside | Administrative and Support Services | Term Loan | Prime plus 2.75% | 11/28/2019 | 57.0 | 20.3 | 20.5 | 0.01 | % | |||||||||||||||
| ^Demand Printing Solutions, Inc | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 10/29/2034 | 147.5 | 124.9 | 132.9 | 0.06 | % | |||||||||||||||
| ^Supreme Screw Products | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 4/17/2019 | 308.2 | 87.6 | 88.4 | 0.04 | % | |||||||||||||||
| ^Gray Tree Service, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/18/2018 | 50.0 | 12.4 | 12.5 | 0.01 | % | |||||||||||||||
| ^Envy Salon & Spa LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 12/4/2018 | 20.3 | 4.9 | 4.9 | — | % | |||||||||||||||
| ^Gourmet to You, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2019 | 12.1 | 3.3 | 3.3 | — | % | |||||||||||||||
| ^The Alba Financial Group, Inc. | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | Term Loan | 6% | 1/10/2019 | 22.5 | 12.1 | 12.2 | 0.01 | % | |||||||||||||||
| ^Grapevine Professional Services, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 1/22/2019 | 8.2 | 2.0 | 2.0 | — | % | |||||||||||||||
| ^Inflate World Corporation | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 9/30/2018 | 7.5 | 1.3 | 1.3 | — | % | |||||||||||||||
| ^Peter Thomas Roth Labs LL | Merchant Wholesalers, Durable Goods | Term Loan | Prime plus 2.75% | 9/26/2018 | 425.0 | 93.3 | 93.9 | 0.04 | % | |||||||||||||||
| ^Dream Envy, Ltd. dba Massage Envy | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 11/9/2018 | 88.0 | 20.6 | 20.7 | 0.01 | % | |||||||||||||||
| ^CBA D&A Pope, LLC dba Christian Brothers Automotive | Repair and Maintenance | Term Loan | Prime plus 2.75% | 6/14/2018 | 144.9 | 28.8 | 28.9 | 0.01 | % | |||||||||||||||
| ^Gilbert Chiropractic Clinic, Inc. | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/7/2018 | 22.5 | 4.0 | 4.1 | — | % | |||||||||||||||
| ^D & D's Divine Beauty School of Esther, LLC | Educational Services | Term Loan | 6% | 8/1/2031 | 57.7 | 51.3 | 54.1 | 0.03 | % | |||||||||||||||
| ^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service | Repair and Maintenance | Term Loan | Prime plus 2.75% | 3/29/2018 | 9.4 | 1.6 | 1.6 | — | % | |||||||||||||||
| ^Burks & Sons Development LLC dba Tropical Smoothie Cafe | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 3/22/2018 | 49.8 | 8.0 | 8.0 | — | % | |||||||||||||||
| Bliss Coffee and Wine Bar, LLC | Food Services and Drinking Places | Term Loan | 6% | 3/19/2018 | 87.5 | 69.9 | 70.2 | 0.03 | % | |||||||||||||||
| ^Zog Inc. | Other Information Services | Term Loan | 6% | 3/17/2018 | 97.5 | 62.1 | 62.3 | 0.03 | % | |||||||||||||||
| ^Saan M.Saelee dba Saelee's Delivery Service | Truck Transportation | Term Loan | Prime plus 2.75% | 3/12/2018 | 9.8 | 1.6 | 1.6 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
141
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| Integrity Sports Group, LLC | Performing Arts, Spectator Sports, and Related Industries | Term Loan | 6% | 3/6/2018 | 75.0 | 31.7 | 31.8 | 0.02 | % | |||||||||||||||
| ^Enewhere Custom Canvas, LLC | Textile Product Mills | Term Loan | Prime plus 2.75% | 2/15/2018 | 12.0 | 1.9 | 1.9 | — | % | |||||||||||||||
| ^A & A Acquisition, Inc. dba A & A International | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 2/15/2018 | 100.0 | 14.8 | 14.9 | 0.01 | % | |||||||||||||||
| ^All American Printing | Printing and Related Support Activities | Term Loan | Prime plus 2.75% | 10/26/2032 | 69.8 | 37.6 | 39.8 | 0.02 | % | |||||||||||||||
| ^Seo's Paradise Cleaners, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 1/19/2018 | 9.8 | 0.6 | 0.6 | — | % | |||||||||||||||
| ^Margab, Inc. dba Smoothie King | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/28/2017 | 44.0 | 5.7 | 5.7 | — | % | |||||||||||||||
| ^RCB Enterprises, Inc. | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/18/2017 | 21.2 | 3.4 | 3.4 | — | % | |||||||||||||||
| ^Timothy S. Strange dba Strange's Mobile Apperance Reconditioning Service | Repair and Maintenance | Term Loan | Prime plus 2.75% | 12/17/2017 | 8.4 | 0.8 | 0.8 | — | % | |||||||||||||||
| ^Parties By Pat, Inc. and Jose M. Martinez Jr. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/11/2017 | 93.1 | 11.8 | 11.8 | 0.01 | % | |||||||||||||||
| ^Tammy's Bakery, Inc. dba Tammy's Bakery | Food Manufacturing | Term Loan | Prime plus 2.75% | 12/10/2017 | 71.8 | 9.9 | 10.0 | — | % | |||||||||||||||
| ^Maria C. Sathre and David N. Sathre dba Black Forest Liquor Store | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 11/28/2017 | 18.6 | 2.2 | 2.2 | — | % | |||||||||||||||
| ^MJ Mortgage & Tax Services, Inc. | Credit Intermediation and Related Activities | Term Loan | Prime plus 2.75% | 11/14/2017 | 6.9 | 0.4 | 0.4 | — | % | |||||||||||||||
| ^Kings Laundry,LLC | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 10/30/2017 | 64.5 | 7.1 | 7.1 | — | % | |||||||||||||||
| ^Quality Engraving Services Inc. and Ian M. Schnaitman | Miscellaneous Store Retailers | Term Loan | Prime plus 2.75% | 10/17/2017 | 15.0 | 1.7 | 1.7 | — | % | |||||||||||||||
| ^Louis B. Smith dba LAQ Funeral Coach | Transit and Ground Passenger Transportation | Term Loan | Prime plus 2.75% | 9/15/2017 | 12.6 | 1.2 | 1.2 | — | % | |||||||||||||||
| ^1911 East Main Street Holdings, Corp | Repair and Maintenance | Term Loan | Prime plus 2.75% | 5/18/2032 | 15.8 | 12.3 | 13.1 | 0.01 | % | |||||||||||||||
| ^Metano IBC Services, Inc. and Stone Brook Leasing, LLC | Rental and Leasing Services | Term Loan | Prime plus 2.75% | 8/17/2017 | 315.0 | 25.2 | 25.3 | 0.01 | % | |||||||||||||||
| ^Mala Iyer, MD dba Child and Family Wellness Center | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 8/11/2017 | 50.0 | 4.8 | 4.9 | — | % | |||||||||||||||
| ^Twietmeyer Dentistry PA | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/30/2017 | 148.9 | 9.9 | 9.9 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
142
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Water Works Laundromat, LLC | Personal and Laundry Services | Term Loan | Prime plus 2.25% | 9/7/2027 | 267.3 | 184.0 | 187.1 | 0.09 | % | |||||||||||||||
| ^Dave Kris, and MDK Ram Corp. | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/5/2026 | 221.0 | 32.3 | 33.4 | 0.02 | % | |||||||||||||||
| ^No Thirst Software LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/26/2017 | 6.8 | 0.2 | 0.2 | — | % | |||||||||||||||
| ^CCIPTA, LLC | Clothing and Clothing Accessories Stores | Term Loan | Prime plus 2.75% | 1/17/2017 | 47.0 | 0.2 | 0.2 | — | % | |||||||||||||||
| ^Gill Express Inc. dba American Eagle Truck Wash | Repair and Maintenance | Term Loan | Prime plus 2.75% | 1/5/2027 | 286.9 | 187.3 | 194.8 | 0.09 | % | |||||||||||||||
| ^Spain Street LLC | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/29/2017 | 63.0 | 0.9 | 0.9 | — | % | |||||||||||||||
| ^Kyoshi Enterprises, LLC | Educational Services | Term Loan | Prime plus 2.75% | 12/29/2016 | 22.5 | — | — | — | % | |||||||||||||||
| ^Nora A. Palma and Julio O Villcas | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/27/2017 | 56.3 | 0.1 | 0.1 | — | % | |||||||||||||||
| ^Smooth Grounds, Inc. | Food Services and Drinking Places | Term Loan | 7.75% | 12/31/2018 | 64.5 | 30.6 | 30.8 | 0.01 | % | |||||||||||||||
| ^Fran-Car Corporation dba Horizon Landscape Management | Administrative and Support Services | Term Loan | Prime plus 2.75% | 3/3/2028 | 407.8 | 161.0 | 168.0 | 0.08 | % | |||||||||||||||
| ^Head To Toe Personalized Pampering, Inc. | Personal and Laundry Services | Term Loan | Prime plus 2.75% | 1/27/2031 | 52.0 | 9.0 | 9.5 | — | % | |||||||||||||||
| ^Maxwell Place, LLC | Nursing and Residential Care Facilities | Term Loan | 6.5% | 12/31/2018 | 1,076.8 | 772.5 | 779.2 | 0.37 | % | |||||||||||||||
| ^Christopher F. Bohon & Pamela D. Bohon | Social Assistance | Term Loan | Prime plus 2.75% | 10/28/2026 | 14.2 | 3.2 | 3.4 | — | % | |||||||||||||||
| ^Shree Om Lodging, LLC dba Royal Inn | Accommodation | Term Loan | Prime plus 2.75% | 5/2/2030 | 333.3 | 64.1 | 67.4 | 0.03 | % | |||||||||||||||
| ^Pedzik's Pets, LLC | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 3/31/2030 | 53.5 | 9.0 | 9.4 | — | % | |||||||||||||||
| ^Nancy Carapelluci & A & M Seasonal Corner Inc. | Building Material and Garden Equipment and Supplies Dealers | Term Loan | Prime plus 2.75% | 3/1/2025 | 106.9 | 14.5 | 15.0 | 0.01 | % | |||||||||||||||
| ^Moonlight Multi Media Production, Inc. | Other Information Services | Term Loan | 5.3% | 2/1/2025 | 19.7 | 3.3 | 3.4 | — | % | |||||||||||||||
| David M. Goens dba Superior Auto Paint & Body, Inc. | Repair and Maintenance | Term Loan | 6% | 8/26/2024 | 250.0 | 17.5 | 18.1 | 0.01 | % | |||||||||||||||
| ^McCallister Venture Group, LLC and Maw's Vittles, Inc. | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/30/2029 | 75.0 | 11.6 | 12.1 | 0.01 | % | |||||||||||||||
| ^Computer Renaissance dba Dante IT Services, Inc. | Electronics and Appliance Stores | Term Loan | Prime plus 3.75% | 3/1/2018 | 100.0 | 1.6 | 1.6 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
143
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Chong Hun Im dba Kim's Market | Food and Beverage Stores | Term Loan | Prime plus 2.5% | 2/27/2024 | 80.0 | 9.5 | 9.7 | — | % | |||||||||||||||
| Whirlwind Car Wash, Inc. | Repair and Maintenance | Term Loan | Prime plus 2% | 4/9/2029 | 333.3 | 65.5 | 65.8 | 0.03 | % | |||||||||||||||
| ^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge | Amusement, Gambling, and Recreation Industries | Term Loan | 6% | 6/5/2026 | 1,333.0 | 863.5 | 895.8 | 0.43 | % | |||||||||||||||
| ^Center-Mark Car Wash, Ltd | Specialty Trade Contractors | Term Loan | Prime plus 2.75% | 5/18/2024 | 221.3 | 27.9 | 28.7 | 0.01 | % | |||||||||||||||
| ^Shuttle Car Wash, Inc. dba Shuttle Car Wash | Repair and Maintenance | Term Loan | Prime plus 2.25% | 11/10/2028 | 109.8 | 17.2 | 17.5 | 0.01 | % | |||||||||||||||
| ^Min Hui Lin | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 1/30/2028 | 134.3 | 17.5 | 18.2 | 0.01 | % | |||||||||||||||
| ^Delta Partners, LLC dba Delta Carwash | Repair and Maintenance | Term Loan | Prime plus 2.5% | 4/5/2029 | 280.9 | 42.5 | 44.0 | 0.02 | % | |||||||||||||||
| ^Auto Sales, Inc. | Motor Vehicle and Parts Dealers | Term Loan | 6% | 8/17/2023 | 75.0 | 7.8 | 8.0 | — | % | |||||||||||||||
| ^B & J Manufacturing Corporation and Benson Realty Trust | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2% | 3/30/2021 | 250.0 | 18.8 | 18.8 | 0.01 | % | |||||||||||||||
| ^RAB Services, Inc. & Professional Floor Installations | Specialty Trade Contractors | Term Loan | Prime plus 2.5% | 1/31/2023 | 62.5 | 7.0 | 7.1 | — | % | |||||||||||||||
| ^Ralph Werner dba Werner Transmissions | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/29/2021 | 26.6 | 2.3 | 2.4 | — | % | |||||||||||||||
| ^Taste of Inverness, Inc. dba China Garden | Food Services and Drinking Places | Term Loan | Prime plus 2% | 6/29/2025 | 73.8 | 8.8 | 8.8 | — | % | |||||||||||||||
| ^M. Krishna, Inc. dba Super 8 Motel | Accommodation | Term Loan | Prime plus 2% | 3/20/2025 | 250.0 | 9.4 | 9.5 | — | % | |||||||||||||||
| ^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | 6% | 9/14/2023 | 185.8 | 31.5 | 32.3 | 0.02 | % | |||||||||||||||
| ^OrthoQuest, P.C. | Ambulatory Health Care Services | Term Loan | Prime plus 2% | 3/12/2022 | 56.8 | 4.3 | 4.3 | — | % | |||||||||||||||
| ^CPN Motel, L.L.C. dba American Motor Lodge | Accommodation | Term Loan | Prime plus 2.25% | 4/30/2024 | 379.0 | 30.8 | 31.1 | 0.01 | % | |||||||||||||||
| ^Track Side Collision & Tire, Inc. | Plastics and Rubber Products Manufacturing | Term Loan | Prime plus 2.75% | 6/16/2025 | 44.8 | 4.9 | 5.0 | — | % | |||||||||||||||
| ^Duttakrupa, LLC dba Birmingham Motor Court | Accommodation | Term Loan | Prime plus 2.25% | 9/8/2023 | 98.8 | 12.2 | 12.3 | 0.01 | % | |||||||||||||||
| ^Deesha Corporation, Inc. dba Best Inn & Suites | Accommodation | Term Loan | Prime plus 2.25% | 2/14/2025 | 250.0 | 27.4 | 27.8 | 0.01 | % | |||||||||||||||
| ^Maruti, Inc | Accommodation | Term Loan | Prime plus 2.25% | 11/25/2024 | 220.0 | 25.4 | 25.7 | 0.01 | % | |||||||||||||||
| Willington Hills Equestrian Center LLC | Animal Production and Aquaculture | Term Loan | Prime plus 2.75% | 10/19/2022 | 85.0 | 12.8 | 13.1 | 0.01 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
144
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^LABH, Inc. | Accommodation | Term Loan | Prime plus 2.25% | 9/27/2024 | 555.0 | 40.8 | 41.3 | 0.02 | % | |||||||||||||||
| ^Randall D. & Patricia D. Casaburi dba Pat's Pizzazz | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 3/13/2023 | 68.8 | 7.0 | 7.2 | — | % | |||||||||||||||
| ^Gain Laxmi, Inc. dba Super 8 Motel | Accommodation | Term Loan | Prime plus 2.25% | 5/31/2023 | 202.5 | 20.0 | 20.2 | 0.01 | % | |||||||||||||||
| ^Naseeb Corporation | Accommodation | Term Loan | Prime plus 2.25% | 3/31/2024 | 402.5 | 29.8 | 30.2 | 0.01 | % | |||||||||||||||
| ^Stillwell Ave Prep School | Social Assistance | Term Loan | Prime plus 2.75% | 1/14/2023 | 72.0 | 6.4 | 6.5 | — | % | |||||||||||||||
| ^Karis, Inc. | Accommodation | Term Loan | Prime plus 2% | 12/22/2023 | 148.8 | 13.4 | 13.4 | 0.01 | % | |||||||||||||||
| ^Five Corners, Ltd. | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/11/2019 | 85.0 | 4.7 | 4.8 | — | % | |||||||||||||||
| ^Alyssa Corp dba Knights Inn | Accommodation | Term Loan | Prime plus 2.25% | 9/30/2023 | 350.0 | 42.0 | 42.4 | 0.02 | % | |||||||||||||||
| ^Bhailal Patel dba New Falls Motel | Accommodation | Term Loan | Prime plus 2.75% | 3/27/2023 | 100.0 | 3.7 | 3.8 | — | % | |||||||||||||||
| ^Pegasus Automotive, Inc. | Gasoline Stations | Term Loan | Prime plus 2.75% | 12/23/2022 | 112.5 | 10.9 | 11.2 | 0.01 | % | |||||||||||||||
| ^Delyannis Iron Works | Fabricated Metal Product Manufacturing | Term Loan | 6% | 12/8/2022 | 16.0 | 1.0 | 1.1 | — | % | |||||||||||||||
| ^P. Agrino, Inc. dba Andover Diner | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 7/18/2021 | 150.0 | 8.9 | 9.1 | — | % | |||||||||||||||
| ^Golden Elevator Co., Inc. | Support Activities for Agriculture and Forestry | Term Loan | Prime plus 2.75% | 1/31/2022 | 50.0 | 0.4 | 0.4 | — | % | |||||||||||||||
| ^RJS Service Corporation | Gasoline Stations | Term Loan | Prime plus 2.75% | 8/20/2021 | 79.0 | 6.2 | 6.3 | — | % | |||||||||||||||
| Chez Rurene Bakery | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/20/2017 | 150.0 | 9.2 | 9.2 | — | % | |||||||||||||||
| Total Performing SBA Unguaranteed Investments | $ | 235,664.6 | $ | 204,850.6 | $ | 202,886.6 | 97.03 | % | ||||||||||||||||
| Non-Performing SBA Unguaranteed Investments (3) | ||||||||||||||||||||||||
| ^200 North 8th Street Associates LLC and Enchanted Acres Fa | Food Manufacturing | Term Loan | Prime plus 2.75% | 5/4/2028 | $ | 468.8 | $ | 469.3 | $ | 441.3 | 0.21 | % | ||||||||||||
| ^214 North Franklin, LLC and Winter Ventures, Inc. | Nonstore Retailers | Term Loan | 6% | 11/29/2037 | 81.7 | 81.7 | 29.7 | 0.01 | % | |||||||||||||||
| ^A + Quality Home Health Care, Inc. | Ambulatory Health Care Services | Term Loan | 6% | 8/1/2016 | 1.3 | 1.3 | 1.2 | — | % | |||||||||||||||
| Almeria Marketing 1, Inc. | Personal and Laundry Services | Term Loan | 7.75% | 10/15/2015 | 4.3 | 4.3 | 0.6 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
145
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Al-Mustafa Enterprise, Inc. and Al-Mustafa Enterprise Inc | Motor Vehicle and Parts Dealers | Term Loan | 6.25% | 9/18/2040 | 129.3 | 129.5 | 109.0 | 0.05 | % | |||||||||||||||
| ^AUM Estates, LLC and Sculpted Figures Plastic Surgery Inc. | Ambulatory Health Care Services | Term Loan | 6% | 3/14/2038 | 305.3 | 305.7 | 28.8 | 0.01 | % | |||||||||||||||
| AWA Fabrication & Construction, L.L.C. | Fabricated Metal Product Manufacturing | Term Loan | 6% | 4/30/2025 | 34.7 | 34.8 | 19.4 | 0.01 | % | |||||||||||||||
| ^B&B Fitness and Barbell, Inc. dba Elevations Health Club | Amusement, Gambling, and Recreation Industries | Term Loan | 6% | 6/22/2035 | 206.4 | 206.7 | 201.6 | 0.10 | % | |||||||||||||||
| Baker Sales, Inc. d/b/a Baker Sales, Inc. | Nonstore Retailers | Term Loan | 6% | 3/29/2036 | 177.0 | 177.4 | 80.2 | 0.04 | % | |||||||||||||||
| ^Fieldstone Quick Stop LLC(OC) Barber Investments LLC (EPC) Thadius M B | Gasoline Stations | Term Loan | 6% | 9/30/2038 | 646.4 | 648.0 | 327.6 | 0.16 | % | |||||||||||||||
| ^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar D | Gasoline Stations | Term Loan | Prime plus 2.75% | 8/15/2039 | 146.0 | 146.3 | — | — | % | |||||||||||||||
| Bwms Management, LLC | Food Services and Drinking Places | Term Loan | 0% | 3/1/2018 | 5.1 | 5.1 | 4.9 | — | % | |||||||||||||||
| ^Chickamauga Properties, Inc., MSW Enterprises, LLP | Amusement, Gambling, and Recreation Industries | Term Loan | 6.25% | 12/22/2035 | 59.0 | 59.0 | 56.4 | 0.03 | % | |||||||||||||||
| ^Chickamauga Properties, Inc. and MSW Enterprises, LLP | Amusement, Gambling, and Recreation Industries | Term Loan | 6.25% | 10/19/2022 | 43.4 | 43.5 | — | — | % | |||||||||||||||
| ^Custom Software, Inc. a Colorado Corporation dba M-33 Access | Professional, Scientific, and Technical Services | Term Loan | 6.25% | 6/17/2021 | 285.5 | 286.2 | 43.1 | 0.02 | % | |||||||||||||||
| ^Custom Software, Inc. a Colorado Corporation dba M-33 Access | Broadcasting (except Internet) | Term Loan | 6.25% | 4/30/2022 | 94.1 | 94.3 | — | — | % | |||||||||||||||
| ^Danjam Enterprises, LLC dba Ariel Dental Care | Ambulatory Health Care Services | Term Loan | 6% | 3/31/2035 | 172.8 | 173.0 | 158.3 | 0.08 | % | |||||||||||||||
| ^Danjam Enterprises, LLC dba Ariel Dental Care | Ambulatory Health Care Services | Term Loan | 6% | 3/29/2023 | 64.7 | 64.8 | 58.6 | 0.03 | % | |||||||||||||||
| ^DC Realty, LLC dba FOGO Data Centers | Professional, Scientific, and Technical Services | Term Loan | 6% | 3/23/2037 | 2,646.6 | 2,673.3 | 2,609.4 | 1.25 | % | |||||||||||||||
| ^DC Realty, LLC dba FOGO Data Centers | Professional, Scientific, and Technical Services | Term Loan | 6.25% | 3/23/2022 | 178.9 | 179.3 | 169.4 | 0.08 | % | |||||||||||||||
| ^Dean 1021 LLC dba Pure Pita | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 4/29/2025 | 63.9 | 64.0 | 49.6 | 0.02 | % | |||||||||||||||
| ^Dill Street Bar and Grill Inc and WO Entertainment, Inc | Food Services and Drinking Places | Term Loan | 6% | 9/27/2027 | 78.2 | 78.4 | 1.2 | — | % | |||||||||||||||
| Dr. Francis E. Anders, DVM | Professional, Scientific, and Technical Services | Term Loan | 6% | 8/9/2015 | 1.6 | 1.6 | 1.5 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
146
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Europlast Ltd | Plastics and Rubber Products Manufacturing | Term Loan | 6% | 9/26/2022 | 316.1 | 316.9 | 36.5 | 0.02 | % | |||||||||||||||
| ^Europlast Ltd | Plastics and Rubber Products Manufacturing | Term Loan | 6% | 5/31/2023 | 155.2 | 155.6 | 114.8 | 0.05 | % | |||||||||||||||
| ^Event Mecca LLC | Other Information Services | Term Loan | 6% | 4/10/2023 | 12.6 | 12.6 | 9.4 | — | % | |||||||||||||||
| ^EZ Towing, Inc. | Support Activities for Transportation | Term Loan | 6% | 1/31/2023 | 123.2 | 123.5 | 107.1 | 0.05 | % | |||||||||||||||
| ^Gator Communications Group LLC dba Harvard Printing Group | Printing and Related Support Activities | Term Loan | 6.25% | 3/30/2022 | 232.9 | 233.5 | 22.7 | 0.01 | % | |||||||||||||||
| ^Gator Communications Group LLC dba Harvard Printing Group | Printing and Related Support Activities | Term Loan | 6.25% | 4/25/2022 | 157.4 | 157.8 | — | — | % | |||||||||||||||
| ^Gator Communications Group, LLC dba Harvard Printing Group | Printing and Related Support Activities | Term Loan | 6.25% | 3/27/2023 | 13.3 | 13.3 | — | — | % | |||||||||||||||
| ^Grand Manor Realty, Inc. & Kevin LaRoe | Real Estate | Term Loan | 6% | 2/20/2023 | 18.9 | 19.0 | 17.8 | 0.01 | % | |||||||||||||||
| Guzman Group,LLC | Rental and Leasing Services | Term Loan | 6% | 1/30/2016 | 189.7 | 190.2 | 154.5 | 0.07 | % | |||||||||||||||
| ^Hamer Road Auto Salvage, LLC and Scott T. Cook and Nikki J. Cook | Motor Vehicle and Parts Dealers | Term Loan | 6% | 8/8/2039 | 176.7 | 177.1 | 156.6 | 0.07 | % | |||||||||||||||
| Harrelson Materials Management,Inc | Waste Management and Remediation Services | Term Loan | 6% | 6/24/2021 | 464.2 | 465.4 | 36.4 | 0.02 | % | |||||||||||||||
| ^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC | Ambulatory Health Care Services | Term Loan | Prime plus 2.75% | 6/30/2026 | 478.9 | 480.1 | 127.1 | 0.06 | % | |||||||||||||||
| ^Home Again Restaurant LLC | Food Services and Drinking Places | Term Loan | 6.25% | 6/30/2040 | 58.7 | 58.8 | 52.9 | 0.03 | % | |||||||||||||||
| ^J Olson Enterprises LLC and Olson Trucking Direct, Inc. | Truck Transportation | Term Loan | 6% | 6/28/2025 | 647.5 | 649.1 | 226.8 | 0.11 | % | |||||||||||||||
| ^J&M Concessions, Inc.dba A-1 Liquors | Food and Beverage Stores | Term Loan | 6.25% | 3/3/2039 | 130.2 | 130.6 | 91.9 | 0.04 | % | |||||||||||||||
| ^J&M Concessions Inc dba A 1 Liquors | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 2/27/2025 | 79.8 | 80.0 | 11.7 | 0.01 | % | |||||||||||||||
| Jenny's Wunderland, Inc. | Social Assistance | Term Loan | 6% | 6/29/2036 | 149.7 | 150.1 | 52.2 | 0.02 | % | |||||||||||||||
| ^Karykion, Corporation dba Karykion Corporation | Professional, Scientific, and Technical Services | Term Loan | 6% | 6/28/2022 | 144.4 | 144.8 | 140.4 | 0.07 | % | |||||||||||||||
| ^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 | 63.4 | 63.5 | 57.2 | 0.03 | % | |||||||||||||||
| Krishna of Orangeburg, Inc. | Accommodation | Term Loan | 6% | 2/20/2032 | 10.3 | 10.3 | 5.6 | — | % | |||||||||||||||
| ^Kup's Auto Spa Inc | Repair and Maintenance | Term Loan | 6.25% | 11/15/2038 | 373.2 | 374.1 | 351.8 | 0.17 | % | |||||||||||||||
| Kup’s Auto Spa, Inc. | Repair and Maintenance | Term Loan | 6.25% | 10/23/2025 | 59.1 | 59.3 | 55.7 | 0.03 | % | |||||||||||||||
| ^Las Torres Development LLC dba Houston Event Centers | Real Estate | Term Loan | 6% | 8/27/2028 | 51.0 | 51.0 | 4.0 | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
147
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^M and C Renovations Inc | Construction of Buildings | Term Loan | Prime plus 2.75% | 10/31/2024 | 15.9 | 16.0 | 12.1 | 0.01 | % | |||||||||||||||
| ^Matchless Transportation LLC dba First Class Limo | Transit and Ground Passenger Transportation | Term Loan | 6.25% | 8/3/2022 | 126.4 | 126.7 | 17.5 | 0.01 | % | |||||||||||||||
| ^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution | Merchant Wholesalers, Durable Goods | Term Loan | 6% | 6/10/2036 | 152.8 | 152.9 | 140.3 | 0.07 | % | |||||||||||||||
| ^Mojo Brands Media, LLC | Broadcasting (except Internet) | Term Loan | 6% | 8/28/2023 | 723.1 | 725.0 | 486.9 | 0.23 | % | |||||||||||||||
| Morris Glass and Construction | Specialty Trade Contractors | Term Loan | 6% | 3/7/2021 | 44.8 | 44.8 | 3.0 | — | % | |||||||||||||||
| ^New Paltz Dental Care, PLLC dba Ariel Dental Care | Ambulatory Health Care Services | Term Loan | 6% | 6/19/2025 | 97.3 | 97.5 | 88.4 | 0.04 | % | |||||||||||||||
| Our Two Daughters L.L.C. dba Washington's Restaurant | Food Services and Drinking Places | Term Loan | 6% | 6/18/2026 | 169.8 | 170.3 | 22.7 | 0.01 | % | |||||||||||||||
| ^E & I Holdings, LP & PA Farm Products, LLC | Food Manufacturing | Term Loan | 6% | 4/30/2030 | 1,227.7 | 1,230.8 | 436.4 | 0.21 | % | |||||||||||||||
| ^NB & T Services, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 4/27/2026 | 36.5 | 36.6 | — | — | % | |||||||||||||||
| Professional Systems, LLC and Professional Cleaning | Administrative and Support Services | Term Loan | 6% | 7/30/2020 | 132.0 | 132.1 | 7.2 | — | % | |||||||||||||||
| ^Route 130 SCPI Holdings LLC (EPC) Route 130 SCPI Operations LLC (OC) d | Food Services and Drinking Places | Term Loan | 6.25% | 9/30/2039 | 535.1 | 536.4 | 368.5 | 0.18 | % | |||||||||||||||
| ^Seven Stars Enterprises, Inc. dba Atlanta Bread Company | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 6/30/2018 | 18.8 | 18.8 | 18.5 | 0.01 | % | |||||||||||||||
| Sheikh M Tariq dba Selbyville Foodrite | Gasoline Stations | Term Loan | 6% | 3/13/2023 | 21.2 | 21.2 | — | — | % | |||||||||||||||
| ^Shivsakti, LLC dba Knights Inn | Accommodation | Term Loan | 6.25% | 12/20/2032 | 69.7 | 69.9 | 62.9 | 0.03 | % | |||||||||||||||
| ^STK Ventures Inc dba JP Dock Service & Supply | Specialty Trade Contractors | Term Loan | 6% | 5/9/2037 | 31.6 | 31.6 | 2.3 | — | % | |||||||||||||||
| Stormwise South Florida dba Stormwise Shutters | Specialty Trade Contractors | Term Loan | 6% | 11/7/2036 | 403.1 | 404.1 | 324.8 | 0.16 | % | |||||||||||||||
| Stormwise South Florida dba Stormwise Shutters | Specialty Trade Contractors | Term Loan | 6% | 8/26/2024 | 201.1 | 201.6 | — | — | % | |||||||||||||||
| Tequila Beaches, LLC dba Fresco Restaurant | Food Services and Drinking Places | Term Loan | 6% | 9/16/2021 | 0.2 | 0.2 | 0.2 | — | % | |||||||||||||||
| ^The Conibear Corporation and Conibear Trucking, LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 12/5/2024 | 7.9 | 7.9 | 0.9 | — | % | |||||||||||||||
| The Lucky Coyote, LLC | Miscellaneous Manufacturing | Term Loan | 6% | 5/8/2017 | 6.2 | 6.2 | 2.3 | — | % | |||||||||||||||
| ^Will Zac Management LLC dba Papa John's | Food Services and Drinking Places | Term Loan | 6.25% | 12/19/2024 | 42.4 | 42.5 | 41.3 | 0.02 | % | |||||||||||||||
| ^Winter Ventures Inc and 214 N Franklin LLC | Nonstore Retailers | Term Loan | 6% | 4/29/2024 | 56.5 | 56.6 | — | — | % | |||||||||||||||
| ^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall | Nonstore Retailers | Term Loan | 6% | 12/23/2024 | 149.1 | 149.3 | — | — | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| ^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall | Nonstore Retailers | Term Loan | 6% | 4/3/2029 | 134.4 | 134.5 | — | — | % | |||||||||||||||
| ^Wired LLC and Moulison North Corporation | Specialty Trade Contractors | Term Loan | 6.25% | 6/30/2024 | 325.2 | 326.0 | 306.6 | 0.15 | % | |||||||||||||||
| ^Wired LLC and Moulison North Corporation | Specialty Trade Contractors | Term Loan | 6.25% | 7/3/2024 | 137.9 | 138.3 | 13.8 | 0.01 | % | |||||||||||||||
| Woody's Trucking LLC | Truck Transportation | Term Loan | Prime plus 2.75% | 1/12/2026 | 11.7 | 11.7 | 3.1 | — | % | |||||||||||||||
| Total Non-Performing SBA Unguaranteed Investments | $ | 14,879.8 | $ | 14,933.6 | $ | 8,584.6 | 4.11 | % | ||||||||||||||||
| Total SBA Unguaranteed Investments | $ | 250,544.4 | $ | 219,784.2 | $ | 211,471.2 | 101.14 | % | ||||||||||||||||
| Performing SBA Guaranteed Investments (4) | ||||||||||||||||||||||||
| HMG Strategy, LLC | Professional, Scientific, and Technical Services | Term Loan | Prime plus 2.75% | 12/14/2026 | 200.0 | 150.0 | 165.9 | 0.08 | % | |||||||||||||||
| Techni-Pro Institute LLC | Educational Services | Term Loan | Prime plus 2.75% | 12/15/2026 | 760.0 | 570.0 | 630.6 | 0.30 | % | |||||||||||||||
| Sempco, Inc. | Miscellaneous Manufacturing | Term Loan | Prime plus 2.75% | 12/15/2041 | 168.0 | 126.0 | 142.3 | 0.07 | % | |||||||||||||||
| Means Enterprises LLC dba FastFrame Frisco | Furniture and Home Furnishings Stores | Term Loan | Prime plus 2.75% | 12/16/2026 | 150.0 | 127.5 | 141.1 | 0.07 | % | |||||||||||||||
| New Image Building Services, Inc.dba The Maids Servicing Oakland &Maco | Administrative and Support Services | Term Loan | Prime plus 2.75% | 12/21/2026 | 175.0 | 131.3 | 145.2 | 0.07 | % | |||||||||||||||
| Jacliff Investments Inc. dba International health Technologies | Publishing Industries (except Internet) | Term Loan | Prime plus 2.75% | 12/23/2026 | 500.0 | 375.0 | 414.9 | 0.20 | % | |||||||||||||||
| Joshua L. Baker | Insurance Carriers and Related Activities | Term Loan | Prime plus 2.75% | 12/23/2026 | 105.0 | 89.3 | 98.7 | 0.05 | % | |||||||||||||||
| Sand Hill Associates, Ltd. dba Charlie O's Tavern on the Point | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/27/2041 | 1,679.5 | 1,259.6 | 1,420.2 | 0.68 | % | |||||||||||||||
| Fort Smith Wings Inc. dba Wing Stop | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/28/2026 | 130.0 | 110.5 | 122.2 | 0.06 | % | |||||||||||||||
| Elite Structures Inc | Fabricated Metal Product Manufacturing | Term Loan | Prime plus 2.75% | 10/27/2029 | 900.0 | 675.0 | 754.3 | 0.36 | % | |||||||||||||||
| Angelo Faia dba AVF Construction | Construction of Buildings | Term Loan | Prime plus 2.75% | 5/27/2041 | 394.9 | 296.1 | 334.3 | 0.16 | % | |||||||||||||||
| Franklin Firm LLC dba Luv 2 Play | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 7/15/2041 | 691.5 | 518.7 | 585.4 | 0.28 | % | |||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
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NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| Shooting Sports Academy LLC and Jetaa LLC dba Shooting Sports Academy | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 6/23/2041 | 1,500.0 | 1,125.0 | 1,268.4 | 0.61 | % | |||||||||||||||
| Worldwide Estate, Inc. dba Washington Heights Manor | Nursing and Residential Care Facilities | Term Loan | Prime plus 2.75% | 10/21/2041 | 900.0 | 467.3 | 527.7 | 0.25 | % | |||||||||||||||
| Bear Creek Entertainment LLC dba The Woods at Bear Creek | Accommodation | Term Loan | Prime plus 2.75% | 8/12/2041 | 1,750.0 | 837.3 | 944.0 | 0.45 | % | |||||||||||||||
| Nevey's LLC dba Stark Food III | Food and Beverage Stores | Term Loan | Prime plus 2.75% | 6/30/2041 | 1,175.5 | 739.7 | 833.0 | 0.40 | % | |||||||||||||||
| Sambella Holdings, LLC and Strike Zone Entertainment Center LLC | Amusement, Gambling, and Recreation Industries | Term Loan | Prime plus 2.75% | 12/24/2041 | 2,000.0 | 1,099.4 | 1,240.3 | 0.59 | % | |||||||||||||||
| Middlesex Auto Sales Corp | Motor Vehicle and Parts Dealers | Term Loan | Prime plus 2.75% | 10/31/2041 | 500.0 | 142.5 | 160.9 | 0.08 | % | |||||||||||||||
| 131 Miles LLC and Ohm Shubh Laxmi, LLC. dba Mr Hero | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/3/2041 | 510.1 | 107.5 | 121.1 | 0.06 | % | |||||||||||||||
| Surgarloaf Concepts LLC dba Fat Biscuit | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/8/2026 | 675.0 | 287.6 | 317.9 | 0.15 | % | |||||||||||||||
| MIK LLC dba Firehouse Subs | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 11/9/2026 | 800.0 | 490.0 | 542.1 | 0.26 | % | |||||||||||||||
| Roast Beef Levittown LLC dba Arby's | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 12/13/2026 | 1,860.0 | 163.7 | 180.8 | 0.09 | % | |||||||||||||||
| Imaginarium Foods LLC, | Food Services and Drinking Places | Term Loan | Prime plus 2.75% | 2/28/2042 | 1,506.9 | 373.3 | 421.0 | 0.20 | % | |||||||||||||||
| Total SBA Guaranteed Performing Investments | $ | 19,031.4 | $ | 10,262.3 | $ | 11,512.3 | 5.51 | % | ||||||||||||||||
| Total SBA Unguaranteed and Guaranteed Investments | $ | 269,575.8 | $ | 230,046.5 | $ | 222,983.5 | 106.64 | % | ||||||||||||||||
| Controlled Investments (5) | ||||||||||||||||||||||||
| Advanced Cyber Security Systems, LLC (6) (16) | Data processing, hosting and related services. | 50% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Term Loan | 3% | December 2014 | 1,120.0 | 381.0 | — | — | % | |||||||||||||||||
| *Automated Merchant Services, Inc. (7) (16) | Data processing, hosting and related services. | 100% Common Stock | —% | — | — | — | — | — | % | |||||||||||||||
| CDS Business Services, Inc. (8) | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 100% Common Stock | —% | — | — | 4,428.0 | 750.0 | 0.36 | % | |||||||||||||||
| Line of Credit | Prime Plus 2.5% | August 2018 | 2,690.0 | 2,690.0 | 2,690.0 | 1.29 | % | |||||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
150
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| CrystalTech Web Hosting, Inc. (11) | Data processing, hosting and related services. | 100% Common Stock | —% | — | — | 8,434.0 | 20,109.0 | 9.62 | % | |||||||||||||||
| *Fortress Data Management, LLC (16) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Newtek Insurance Agency, LLC (13) (16) | Insurance Carriers and Related Activities | 100% Membership Interests | —% | — | — | — | 2,500.0 | 1.20 | % | |||||||||||||||
| PMTWorks Payroll, LLC (9) | Data processing, hosting and related services. | 100% Membership Interests | —% | — | — | 725.1 | 860.0 | 0.41 | % | |||||||||||||||
| Term Loan | 10%-12% | Various maturities through May 2018 | 1,685.0 | 1,685.0 | 1,185.0 | 0.57 | % | |||||||||||||||||
| Secure CyberGateway Services, LLC (10) (16) | Data processing, hosting and related services. | 66.7% Membership Interests | —% | — | — | — | — | — | % | |||||||||||||||
| Term Loan | 7% | June 2017 | 2,400.0 | 300.0 | — | — | % | |||||||||||||||||
| Small Business Lending, LLC. (12) (16) | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 100% Membership Interest | —% | — | — | — | 3,300.0 | 1.58 | % | |||||||||||||||
| Titanium Asset Management LLC (15) (16) | Administrative and Support Services | 100% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Term Loan | 3% | July 2017 | 2,200.0 | 660.4 | 508.1 | 0.24 | % | |||||||||||||||||
| ADR Partners, LLC dba banc-serv Partners, LLC (12) | Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 100% Membership Interest | —% | — | — | 5,260.3 | 5,400.0 | 2.58 | % | |||||||||||||||
| *Summit Systems and Designs, LLC (14) (16) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | — | — | — | % | |||||||||||||||
| Premier Payments LLC (11) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | 16,438.0 | 21,000.0 | 10.04 | % | |||||||||||||||
| Universal Processing Services of Wisconsin, LLC (11) (16) | Data processing, hosting and related services. | 100% Membership Interest | —% | — | — | — | 63,000.0 | 30.13 | % | |||||||||||||||
| Total Controlled Investments | $ | 10,095.0 | $ | 41,001.8 | $ | 121,302.1 | 58.01 | % | ||||||||||||||||
| Non-control/Non-affiliate Investments | ||||||||||||||||||||||||
| Excel WebSolutions, LLC | Data processing, hosting and related services. | Term Loan | 10% | September 2018 | $ | 1,020.2 | $ | 903.5 | $ | 903.5 | 0.43 | % | ||||||||||||
| Warrants | —% | — | — | — | — | — | % | |||||||||||||||||
| $ | 1,020.2 | $ | 903.5 | $ | 903.5 | 0.43 | % | |||||||||||||||||
| Investments in Money Market Funds | ||||||||||||||||||||||||
| UBS Select Treasury Institutional Fund - 0.29% yield | $ | 9.6 | $ | 9.6 | $ | 9.6 | — | % | ||||||||||||||||
See accompanying notes to unaudited condensed consolidated financial statements.
151
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
DECEMBER 31, 2016
(In Thousands)
| Portfolio Company | Industry | Type
of Investment | Interest
Rate (2) | Maturity | Principal | Cost | Fair
Value | %
of Net Assets | ||||||||||||||||
| Peapack Gladstone High Yield IMMA - 0.30% yield | 25.8 | 25.8 | 25.8 | 0.01 | % | |||||||||||||||||||
| Total Money Market Funds | $ | 35.4 | $ | 35.4 | $ | 35.4 | 0.02 | % | ||||||||||||||||
| Total Investments | $ | 280,726.4 | $ | 271,987.2 | $ | 345,224.5 | 165.10 | % | ||||||||||||||||
^ Denotes investment that has been pledged as collateral under the Securitization Trusts.
* Denotes non-income producing security.
(1) Newtek values each unguaranteed portion of SBA 7(a) performing loans (“Loan”) using a discounted cash flow analysis which projects future cash flows and incorporates projections for Loan pre-payments and Loan defaults using historical portfolio data. The data predicts future prepayment and default probability on curves which are based on Loan age. The recovery assumption for each Loan is specific to the discounted valuation of the collateral supporting that Loan. Each Loan’s cash flow is discounted at a rate which approximates a market yield. The Loans were originated under the SBA 7(a) program and conform to the underwriting guidelines in effect at their time of origination. Newtek has been awarded Preferred Lender Program (“PLP”) status from the SBA. The portions of these Loans are not guaranteed by the SBA. Individual loan participations can be sold to institutions which have been granted an SBA 750 license. Loans can also be sold as a pool of loans in a security form to qualified investors.
(2) Prime Rate is equal to 3.50% as of December 31, 2016.
(3) Newtek values non-performing SBA 7(a) loans using a discounted cash flow analysis of the underlying collateral which supports the loan. Net recovery of collateral, (fair value less cost to liquidate) is applied to the discounted cash flow analysis based upon a time to liquidate estimate. Modified loans are valued based upon current payment streams and are re-amortized at the end of the modification period.
(4) Newtek values guaranteed performing SBA 7(a) loans using the secondary SBA 7(a) market as a reference point. Newtek routinely sells performing SBA 7(a) loans into this secondary market. Guaranteed portions of SBA 7(a) loans partially funded as of the valuation date are valued using level two inputs as disclosed in Note 6.
(5) Controlled Investments are disclosed above as equity investments (except as otherwise noted) in those companies that are “Controlled Investments” of the Company as defined in the Investment Company Act of 1940. A company is deemed to be a “Controlled Investment” of Newtek Business Services Corp. if Newtek Business Services Corp. or its subsidiaries owns more than 25% of the voting securities of such company.
(6) 50% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), 50% owned by non-affiliate. The term loan is past its original maturity date and currently in default. As such, the fair value of the investment is zero.
(7) 96.11% owned by Wilshire Partners, LLC (a subsidiary of Newtek Business Services Corp.), 3.89% owned by Newtek Business Services Corp.
(8) 18.35% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), 31.8% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.) and 49.85% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(9) 25% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 65% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.), and 10% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.).
(10) 66.7% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.), 33.3% owned by non-affiliate.
(11) 100% owned by Newtek Business Services Holdco 1, Inc. (a subsidiary of Newtek Business Services Corp.).
See accompanying notes to unaudited condensed consolidated financial statements.
152
(12) 100% owned by Newtek LSP Holdco, LLC (a subsidiary of Wilshire Holdings I, Inc. and Banc-Serv Acquisition, Inc., both subsidiaries of Newtek Business Services Corp.).
(13) 100% owned by Wilshire Holdings I, Inc. (a subsidiary of Newtek Business Services Corp.).
(14) 100% owned by The Whitestone Group, LLC (a subsidiary of Wilshire Holdings I, Inc., a subsidiary of Newtek Business Services Corp.).
(15) 50% owned by Exponential Business Development Co., Inc. (a subsidiary of Newtek Business Services Corp.), 30% owned by Wilshire New York Partners V, LLC (a subsidiary of Newtek Business Services Corp.), 17.8% owned by Wilshire New York Partners IV, LLC (a subsidiary of Newtek Business Services Corp.), and 2.2% owned by Wilshire New York Advisers II, LLC (a subsidiary of Newtek Business Services Corp.).
(16) Zero cost basis is reflected as the portfolio company was organized by the Company and incurred internal legal costs to organize the entity and immaterial external filing fees which were expensed when incurred.
(17) All of the Company's investments are in entities which are organized under the Laws of the United States and have a principal place of business in the United States.
(18) Under the Investment Company Act of 1940, as amended, the Company may not acquire any non-qualifying assets unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. At December 31, 2016, 5.5% of total assets are non-qualifying assets. As of December 31, 2016, the federal tax cost of investments was $263,179,000 resulting in estimated gross unrealized gains and losses of $99,380,000 and $17,335,000, respectively.
See accompanying notes to unaudited condensed consolidated financial statements.
153
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION:
Newtek Business Services Corp. is a Maryland corporation which was formed in August 2013 and is an internally managed, closed end, non-diversified investment company. The Company’s investment strategy is to maximize the investment portfolio’s return by generating current income from the debt investments the Company makes and generate dividend income from equity investments in controlled portfolio companies.
The Company has formed certain Taxable Subsidiaries, which are taxed as corporations for federal income tax purposes. These Taxable Subsidiaries allow the Company to hold equity securities of portfolio companies organized as pass-through entities while continuing to satisfy the requirements of a RIC under the Code.
The following wholly-owned subsidiaries are consolidated in the financial statements of the Company:
| • | Newtek Small Business Finance, LLC |
| • | Newtek Asset Backed Securities, LLC |
| • | The Whitestone Group, LLC |
| • | Wilshire Colorado Partners, LLC |
| • | Wilshire DC Partners, LLC |
| • | Wilshire Holdings I, Inc. |
| • | Wilshire Louisiana Bidco, LLC |
| • | Wilshire Louisiana Partners II, LLC |
| • | Wilshire Louisiana Partners III, LLC |
| • | Wilshire Louisiana Partners IV, LLC |
| • | Wilshire New York Advisers II, LLC |
| • | Wilshire New York Partners III, LLC |
| • | Wilshire New York Partners IV, LLC |
| • | Wilshire New York Partners V, LLC |
| • | Wilshire Partners, LLC |
| • | CCC Real Estate Holdings, LLC |
| • | Banc-Serv Acquisition, Inc. |
| • | Exponential Business Development Co., Inc. |
| • | Newtek LSP Holdco, LLC |
154
| • | Newtek Business Services Holdco 1, Inc. |
| • | Newtek Business Services Holdco 2, Inc. |
The accompanying notes to the unaudited condensed consolidated financial statements should be read in conjunction with Newtek’s Annual Report for the year ended December 31, 2016 on Form 10-K. The unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 10 of Regulation S-X and, therefore, omit or condense certain footnotes and other information normally included in financial statements prepared in accordance with U.S. GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments and reclassifications that are necessary for the fair presentation of financial results as of and for the periods presented. The results of operations for an interim period may not give a true indication of the results for the entire year. The December 31, 2016 consolidated statement of assets and liabilities has been derived from the audited financial statements as of that date. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.
Except as otherwise noted, all financial information included in the tables in the following footnotes is stated in thousands, except per share data.
NOTE 2—SIGNIFICANT ACCOUNTING POLICIES:
Fair Value
The Company applies fair value accounting to certain of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurement (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.
The availability of observable inputs can vary depending on the financial instrument and is affected by a wide variety of factors, including, for example, the type of product, whether the product is new, whether the product is traded on an active exchange or in the secondary market and the current market conditions. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for financial instruments classified as Level 3.
Any changes to the valuation methodology are reviewed by management and the Board to confirm that the changes are appropriate. As markets change, new products develop and the pricing for products becomes more or less transparent, the Company will continue to refine its valuation methodologies. See further description of fair value methodology in Note 6.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. The level of uncertainty in estimates and assumptions increases with the length of time until the underlying transactions are complete. Actual results could differ from those estimates.
155
Consolidation
As provided under Regulation S-X and ASC Topic 946, the Company will generally not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company.
Assets related to transactions that do not meet ASC Topic 860 — Transfers and Servicing (“ASC Topic 860”) requirements for accounting sale treatment are reflected in the Company’s condensed consolidated statements of assets and liabilities as investments. Those assets are owned by the securitization trusts, and are included in the Company’s condensed consolidated financial statements. The creditors of the special purpose entities have received security interests in such assets and such assets are not intended to be available to the creditors of the Company.
Distributions
Dividends and distributions to the Company's common stockholders are recorded on the declaration date. The timing and amount to be paid out as a dividend or distribution is determined by the Company's Board each quarter and is generally based upon the taxable earnings estimated by management.
Cash and Cash Equivalents
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments. As of September 30, 2017, cash deposits in excess of insured amounts totaled $11,068,000. The Company has not experienced any losses with respect to cash balances in excess of insured amounts and management does not believe there was a significant concentration of risk with respect to cash balances as of September 30, 2017.
Restricted Cash
Restricted cash includes amounts due on SBA loan-related remittances to third parties, cash reserves established as part of a voluntary agreement with the SBA, and cash reserves associated with securitization transactions. As of September 30, 2017, total restricted cash was $26,602,000.
Broker Receivable
Broker receivable represents amounts due from third parties for loans which have been traded at period end but have not yet settled.
Income Taxes
Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.
The Company’s U.S. federal and state income tax returns prior to fiscal year 2014 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.
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The Company has elected to be treated as a RIC under the Code beginning with the 2015 tax year and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC tax return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not included in the RIC tax return. In order to maintain its RIC tax treatment, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its stockholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal income taxes with respect to any income that is distributed to its stockholders as dividends.
Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions, and would distribute such taxable income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the three and nine months ended September 30, 2017 and 2016, no U.S. federal excise taxes were due.
The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the net unrealized appreciation generated by the controlled investments held by the Taxable Subsidiaries. Such deferred tax liabilities amounted to $5,240,000 and $5,983,000 at September 30, 2017 and December 31, 2016, respectively, and are recorded as a deferred tax liabilities on the condensed consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net unrealized appreciation (depreciation) on investments in the condensed consolidated statements of operations.
Investment Income
Interest on debt investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.
Dividend income is recognized on an accrual basis for preferred equity securities to the extent that such amounts are expected to be collected or realized. In determining the amount of dividend income to recognize, if any, from cash distributions on common equity securities, we will assess many factors including a portfolio company’s cumulative undistributed income and operating cash flow. Cash distributions from common equity securities received in excess of such undistributed amounts are recorded first as a reduction of our investment and then as a realized gain on investment.
The Company earns servicing income related to the guaranteed portions of SBA loan investments which it sells into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.
The Company earns a variety of fees from borrowers in the ordinary course of conducting its business, including packaging, legal, late payment and prepayment fees. All other income is recorded when earned. Other income is generally non-recurring in nature and earned as “one time” fees in connection with the origination of new debt investments with non-affiliates.
Investment transactions are accounted for on a trade-date basis. Realized gains or losses on investments are measured by the difference between the net proceeds from the disposition and the cost basis of investment, without regard to unrealized gains or losses previously recognized. The Company reports current period changes in the fair value of investments as a component of the net change in unrealized appreciation (depreciation) on investments in the condensed consolidated statements of operations.
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Stock – Based Compensation
The Company accounts for its equity-based compensation plan using the fair value method, as prescribed by ASC Topic 718, Stock Compensation. Accordingly, for restricted stock awards, the Company measures the grant date fair value based upon the market price of the Company’s common stock on the date of the grant and amortizes this fair value to salaries and benefits ratably over the requisite service period or vesting term.
New Accounting Standards
In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force),” which requires that the statement of cash flow explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods. Early adoption is permitted. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.
In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. The Company has not completed its review of the new guidance; however, the Company anticipates that upon adoption of the standard it will recognize additional assets and corresponding liabilities related to leases on its consolidated statements of assets and liabilities.
In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which, among other things, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the ASU changes the disclosure requirements for financial instruments. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.
Segments
The Company has determined that it has a single reporting segment and operating unit structure. The Company issues debt and makes equity investments in portfolio companies in various industries. The Company separately evaluates the performance of each of its lending and investment relationships. However, because each of these debt and equity investment relationships have similar business and economic characteristics, they have been aggregated into a single lending and investment segment.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current period presentation.
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NOTE 3—INVESTMENTS:
Investments, all of which are in portfolio companies in the United States, consisted of the following at:
| September 30, 2017 | December 31, 2016 | |||||||||||||||
| Cost | Fair Value | Cost | Fair Value | |||||||||||||
| Money market funds | $ | 9 | $ | 9 | $ | 35 | $ | 35 | ||||||||
| Non-affiliate debt investments | 286,769 | 281,224 | 230,950 | 223,887 | ||||||||||||
| Controlled investments | ||||||||||||||||
| Equity | 46,356 | 128,020 | 35,285 | 116,919 | ||||||||||||
| Debt | 12,535 | 8,929 | 5,716 | 4,383 | ||||||||||||
| Total investments | $ | 345,669 | $ | 418,182 | $ | 271,986 | $ | 345,224 | ||||||||
In April 2017, the Company invested in 100% of the common stock of a new wholly-owned, controlled portfolio company, IPM. IPM provides consulting, design and implementation of technology solutions for enterprise and commercial clients. Total consideration for the investment was $11,120,000 and consisted of $1,000,000 in restricted shares of Newtek common stock, $8,752,000 in cash and $1,368,000 to be paid in cash in two equal installments in 2018 and 2019 based on IPM attaining specific EBITDA levels for 2017 and 2018. As of September 30, 2017, the fair value of the contingent consideration liabilities was $620,000 and is included in Accounts Payable, Accrued Expenses and other liabilities on the condensed consolidated statement of assets and liabilities.
During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed.
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The following table shows the Company’s portfolio investments by industry at September 30, 2017 and December 31, 2016:
| September 30, 2017 | December 31, 2016 | |||||||||||||||
| Cost | Fair Value | Cost | Fair Value | |||||||||||||
| Data processing, hosting and related services | $ | 29,583 | $ | 103,605 | $ | 29,010 | $ | 107,180 | ||||||||
| Food Services and Drinking Places | 28,314 | 27,752 | 21,941 | 21,702 | ||||||||||||
| Amusement, Gambling, and Recreation Industries | 19,452 | 20,037 | 18,486 | 18,995 | ||||||||||||
| Securities, Commodity Contracts, and Other Financial Investments and Related Activities | 18,302 | 19,966 | 12,909 | 12,649 | ||||||||||||
| Ambulatory Health Care Services | 14,474 | 13,645 | 13,068 | 11,976 | ||||||||||||
| Repair and Maintenance | 12,990 | 13,391 | 12,066 | 12,228 | ||||||||||||
| Professional, Scientific, and Technical Services | 27,676 | 27,171 | 12,240 | 11,582 | ||||||||||||
| Accommodation | 10,566 | 11,243 | 9,455 | 9,849 | ||||||||||||
| Specialty Trade Contractors | 9,029 | 8,712 | 8,311 | 7,595 | ||||||||||||
| Merchant Wholesalers, Durable Goods | 6,404 | 6,330 | 6,211 | 5,989 | ||||||||||||
| Truck Transportation | 15,483 | 14,615 | 7,469 | 6,938 | ||||||||||||
| Food and Beverage Stores | 5,187 | 5,160 | 5,221 | 5,194 | ||||||||||||
| Heavy and Civil Engineering Construction | 4,530 | 4,430 | 4,328 | 4,209 | ||||||||||||
| Fabricated Metal Product Manufacturing | 11,113 | 11,511 | 5,922 | 5,961 | ||||||||||||
| Administrative and Support Services | 5,873 | 5,268 | 6,379 | 5,727 | ||||||||||||
| Social Assistance | 6,869 | 7,013 | 4,903 | 4,905 | ||||||||||||
| Motor Vehicle and Parts Dealers | 5,059 | 5,156 | 5,059 | 5,051 | ||||||||||||
| Food Manufacturing | 9,437 | 7,507 | 5,596 | 4,873 | ||||||||||||
| Transit and Ground Passenger Transportation | 3,482 | 3,302 | 1,836 | 1,703 | ||||||||||||
| Clothing and Clothing Accessories Stores | 3,600 | 3,675 | 4,221 | 4,134 | ||||||||||||
| Personal and Laundry Services | 10,333 | 10,861 | 4,255 | 4,206 | ||||||||||||
| Gasoline Stations | 6,136 | 5,807 | 5,938 | 5,570 | ||||||||||||
| Printing and Related Support Activities | 3,790 | 3,495 | 3,547 | 3,183 | ||||||||||||
| Insurance Carriers and Related Activities | 833 | 3,366 | 1,126 | 3,631 | ||||||||||||
| Other | 77,154 | 75,164 | 62,489 | 60,194 | ||||||||||||
| Total | $ | 345,669 | $ | 418,182 | $ | 271,986 | $ | 345,224 | ||||||||
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NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:
Transactions with Affiliated Companies
An affiliated company is an entity in which the Company has an ownership of 5% or more of its voting securities. A controlled affiliate is an entity in which the Company owns more than 25% of its voting securities. Transactions related to our investments with controlled companies for the nine months ended September 30, 2017 were as follows:
| Portfolio Company | Fair Value at December 31, 2016 | Purchases (Cost) | Principal Received (Cost) | Net Realized Gains/(Losses) | Net Unrealized Gains/(Losses) | Fair Value at September 30, 2017 | Interest and Other Income | Dividend Income | ||||||||||||||||||||||||
| Controlled Investments | ||||||||||||||||||||||||||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 63,000 | $ | — | $ | — | $ | — | $ | 3,000 | $ | 66,000 | $ | — | $ | 5,250 | ||||||||||||||||
| Premier Payments LLC | 21,000 | — | — | — | — | 21,000 | — | 1,200 | ||||||||||||||||||||||||
| Newtek Technology Solutions, Inc. | 20,109 | — | (50 | ) | — | (4,059 | ) | 16,000 | — | — | ||||||||||||||||||||||
| International Professional Marketing, Inc. (1) | — | 10,000 | (1,000 | ) | — | — | 9,000 | 6 | 550 | |||||||||||||||||||||||
| banc-serv Partners, LLC | 5,400 | — | — | — | (2,000 | ) | 3,400 | — | — | |||||||||||||||||||||||
| CDS Business Services, Inc. | 3,440 | 15,703 | (10,498 | ) | — | 4,750 | 13,395 | 376 | 200 | |||||||||||||||||||||||
| Small Business Lending, LLC | 3,300 | — | — | — | (800 | ) | 2,500 | — | 100 | |||||||||||||||||||||||
| Newtek Insurance Agency, LLC | 2,500 | — | — | — | — | 2,500 | — | — | ||||||||||||||||||||||||
| PMTWorks Payroll, LLC | 2,045 | 1,000 | — | — | (3,045 | ) | — | — | — | |||||||||||||||||||||||
| Titanium Asset Management LLC | 508 | — | (466 | ) | — | (42 | ) | — | 6 | — | ||||||||||||||||||||||
| Excel WebSolutions, LLC | 904 | — | (368 | ) | — | (47 | ) | 489 | 56 | — | ||||||||||||||||||||||
| SIDCO, LLC | — | 2,665 | — | — | — | 2,665 | 2 | — | ||||||||||||||||||||||||
| Summit Systems and Designs, LLC | — | — | — | — | — | — | 54 | — | ||||||||||||||||||||||||
| Secure CyberGateway Services, LLC | — | — | — | — | — | — | 10 | 26 | ||||||||||||||||||||||||
| Total Controlled Investments | $ | 122,206 | $ | 29,368 | $ | (12,382 | ) | $ | — | $ | (2,243 | ) | $ | 136,949 | $ | 510 | $ | 7,326 | ||||||||||||||
(1) Refer to Note 3 for discussion of investment in IPM.
Prior to January 2017, EWS was a non-control/non-affiliate investment. During the nine months ended September 30, 2017, the Company exercised warrants to purchase a 50% membership interest in EWS. Interest, fees, and dividends attributable to the investment in EWS that were credited to income prior to January 2017 are included in investment income from non-affiliate investments on the condensed consolidated statements of operations.
During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $8,800,000 and $2,320,000, respectively. Refer to Note 3.
Related Party Transactions
Note Payable - Related Parties
In June 2015, the Company entered into a Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.
In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance bears interest at a rate equal to (a) LIBOR (with a floor of 0.50%) plus (b) 6% or at a rate equal to (y) the greater of the Prime Rate or 3.5% plus (z) 5%. At September 30, 2017, the Related Party RLOC bears interest at a rate of 7.31%. The Related Party RLOC has a maturity date of June 21, 2021. Outstanding borrowings from UPSW and NTS at September 30, 2017 were $20,541,000.
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Interest expense incurred under the Related Party RLOC for the three months ended September 30, 2017 and 2016 was $378,000 and $19,000, respectively. Interest expense incurred under the Related Party RLOC for the nine months ended September 30, 2017 and 2016 was $418,000 and $196,000, respectively.
Expenses Incurred from Controlled Portfolio Companies
The Company incurs expenses from certain controlled portfolio companies including managed technology services from NTS, loan processing and closing expenses from various related parties and payroll processing fees from NPS.
| Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
| Managed technology services | $ | 186 | $ | 297 | $ | 656 | $ | 747 | ||||||||
| Loan related processing and auditing fees | 101 | 6 | 139 | 21 | ||||||||||||
| Referral fees | 54 | 8 | 82 | 8 | ||||||||||||
| Payroll processing | 10 | 9 | 29 | 26 | ||||||||||||
| Total | $ | 351 | $ | 320 | 906 | 802 | ||||||||||
Beginning in April 2016, the Company began sub-leasing portions of its office space in Lake Success, New York to certain portfolio companies. Amounts charged were as follows:
| Portfolio Company | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 39 | $ | 6 | $ | 110 | $ | 17 | ||||||||
| Small Business Lending, LLC | 19 | 34 | 61 | 76 | ||||||||||||
| Newtek Insurance Agency, LLC | 23 | 23 | 63 | 31 | ||||||||||||
| CDS Business Services, Inc. | 15 | 25 | 47 | 59 | ||||||||||||
| Premier Payments LLC | 10 | 19 | 35 | 40 | ||||||||||||
| PMTWorks Payroll, LLC | 12 | 8 | 37 | 19 | ||||||||||||
| Titanium Asset Management LLC | 6 | — | 13 | — | ||||||||||||
| Total | $ | 124 | $ | 115 | $ | 366 | $ | 242 | ||||||||
Amounts due from related parties were $2,553,000 and $3,748,000 at September 30, 2017 and December 31, 2016, respectively. Amounts due to related parties were $812,000 and $1,227,000 at September 30, 2017 and December 31, 2016, respectively.
Managerial Assistance Fees from Controlled Investments
The Company offers managerial assistance to all portfolio companies and currently provides managerial assistance to certain controlled portfolio companies. Amounts are charged based on estimates of time and effort spent by certain employees providing managerial services for certain controlled portfolio companies. Fees are recorded on a quarterly basis, are recurring in nature and are charged at an arm’s length basis. The table below summarizes amounts charged to each controlled portfolio company for the three and nine months ended September 30, 2017 and 2016. The amounts are recorded as a credit to salaries and benefits in the condensed consolidated statements of operations.
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| Portfolio Company | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 101 | $ | 112 | $ | 314 | $ | 347 | ||||||||
| Newtek Technology Solutions, Inc. | 138 | 160 | 407 | 519 | ||||||||||||
| Newtek Insurance Agency, LLC | 57 | 52 | 161 | 187 | ||||||||||||
| Small Business Lending, LLC | 85 | 108 | 279 | 427 | ||||||||||||
| Premier Payments LLC | 38 | 56 | 135 | 142 | ||||||||||||
| International Professional Marketing, Inc. | 33 | — | 52 | — | ||||||||||||
| banc-serv Partners, LLC | 52 | 58 | 150 | 58 | ||||||||||||
| CDS Business Services, Inc. | 9 | — | 19 | — | ||||||||||||
| SIDCO, LLC | 20 | — | 35 | — | ||||||||||||
| Summit Systems and Designs, LLC | — | 5 | 10 | 15 | ||||||||||||
| Secure CyberGateway Services, LLC | — | — | 2 | — | ||||||||||||
| PMTWorks Payroll, LLC | 18 | 26 | 63 | 79 | ||||||||||||
| Total | $ | 551 | $ | 577 | $ | 1,627 | $ | 1,774 | ||||||||
NOTE 5—SERVICING ASSETS:
At September 30, 2017 and December 31, 2016, servicing assets are measured at fair value. The Company earns servicing fees from the guaranteed portions of SBA 7(a) loans it originates and sells.
The following table summarizes the fair value and valuation assumptions related to servicing assets at September 30, 2017 and December 31, 2016:
| September 30, 2017 | December 31, 2016 | |||||||
| Fair Value | $ | 19,092 | $ | 16,246 | ||||
| Discount factor (1) | 12.20 | % | 12.03 | % | ||||
| Cumulative prepayment rate | 18.50 | % | 15.50 | % | ||||
| Average cumulative default rate | 20.00 | % | 20.00 | % | ||||
(1) Determined based on risk spreads and observable secondary market transactions.
Servicing fee income earned for the three months ended September 30, 2017 and 2016 was $1,794,000 and $1,551,000, respectively. Servicing fee income earned for the nine months ended September 30, 2017 and 2016 was $5,163,000 and $4,581,000, respectively.
NOTE 6—FAIR VALUE MEASUREMENTS:
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, management uses various valuation approaches, all of which have been approved by the Company’s Board. In accordance with GAAP, a fair value hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The levels of the fair value hierarchy are as follows:
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| Level 1 | Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. |
| Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale. |
| Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. |
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The Company assesses the levels of assets and liabilities at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfers. There were no transfers among Level 1, 2 and 3 of the fair value hierarchy for assets and liabilities during the nine months ended September 30, 2017 or 2016. The following section describes the valuation techniques used by the Company to measure different assets and liabilities at fair value and includes the level within the fair value hierarchy in which the assets and liabilities are categorized.
Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process.
When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary methods for determining enterprise value include a discounted cash flow analysis and a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA or revenue. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.
In addition, for certain debt investments, the Company may base its valuation on quotes provided by an independent third party broker.
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Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.
The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.
The following tables present fair value measurements of the Company’s assets and liabilities measured at fair value and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair values as of September 30, 2017 and December 31, 2016:
| Fair Value Measurements at September 30, 2017 Using: | ||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||
| Assets: | ||||||||||||||||
| Investments in money market funds | $ | 9 | $ | 9 | $ | — | $ | — | ||||||||
| SBA unguaranteed non-affiliate investments | 257,136 | — | — | 257,136 | ||||||||||||
| SBA guaranteed non-affiliate investments | 24,088 | — | 24,088 | — | ||||||||||||
| Controlled investments | 136,949 | — | — | 136,949 | ||||||||||||
| Other real estate owned (1) | 890 | — | 890 | — | ||||||||||||
| Servicing assets | 19,092 | — | — | 19,092 | ||||||||||||
| Total assets | $ | 438,164 | $ | 9 | $ | 24,978 | $ | 413,177 | ||||||||
| Liabilities: | ||||||||||||||||
| Contingent consideration liabilities (2) | $ | 620 | $ | — | $ | — | $ | 620 | ||||||||
(1) Included in Other Assets on the Condensed Consolidated Statements of Assets and Liabilities
(2) Included in Accounts Payable, Accrued Expenses and Other Liabilities on the Condensed Consolidated Statements of Assets and Liabilities. Refer to Note 3.
The change in unrealized appreciation (depreciation) included in the condensed consolidated statements of operations attributable to Level 3 investments held at September 30, 2017 includes $238,000 in unrealized appreciation on SBA unguaranteed non-affiliate investments, $2,243,000 in unrealized depreciation on controlled investments and $1,601,000 in unrealized depreciation on servicing assets.
| Fair Value Measurements at December 31, 2016 Using: | ||||||||||||||||
| Total | Level 1 | Level 2 | Level 3 | |||||||||||||
| Assets: | ||||||||||||||||
| Investments in money market funds | $ | 35 | $ | 35 | $ | — | $ | — | ||||||||
| SBA unguaranteed non-affiliate investments | 211,471 | — | — | 211,471 | ||||||||||||
| SBA guaranteed non-affiliate investments | 11,512 | — | 11,512 | — | ||||||||||||
| Controlled investments | 121,302 | — | — | 121,302 | ||||||||||||
| Other real estate owned (1) | 875 | — | 875 | — | ||||||||||||
| Non-control/Non-affiliate investments | 904 | — | — | 904 | ||||||||||||
| Servicing assets | 16,246 | — | — | 16,246 | ||||||||||||
| Total assets | $ | 362,345 | $ | 35 | $ | 12,387 | $ | 349,923 | ||||||||
(1) Included in Other Assets on the Condensed Consolidated Statements of Assets and Liabilities
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The following table represents the changes in investments and servicing assets measured at fair value using Level 3 inputs for the nine months ended September 30, 2017 and 2016:
| Nine Months Ended September 30, 2017 | ||||||||||||||||||||
| SBA Unguaranteed Investments | Controlled Investments | Servicing Assets | Non- Control/Non- Affiliate Investments | Contingent Consideration Liabilities | ||||||||||||||||
| Fair value, December 31, 2016 | $ | 211,471 | $ | 121,302 | $ | 16,246 | $ | 904 | $ | — | ||||||||||
| Net change in unrealized appreciation (depreciation) | 238 | (2,243 | ) | (1,601 | ) | — | ||||||||||||||
| Realized loss | (131 | ) | — | — | — | — | ||||||||||||||
| SBA unguaranteed non-affiliate investments, funded | 62,185 | — | — | — | — | |||||||||||||||
| Foreclosed real estate acquired | (212 | ) | — | — | — | — | ||||||||||||||
| Purchase of investments | — | 29,366 | — | 3,255 | — | |||||||||||||||
| Purchase of loan from SBA | 3,821 | — | — | — | — | |||||||||||||||
| Transfer of Excel WebSolutions, LLC from Non-control/Non-affiliate to Controlled Investments | — | 904 | — | (904 | ) | — | ||||||||||||||
| Record fair value of contingent consideration liabilities | — | — | — | — | 1,368 | |||||||||||||||
| Change in fair value of contingent consideration liabilities | — | — | — | — | (748 | ) | ||||||||||||||
| Purchase of loan portfolio | 175 | — | — | — | — | |||||||||||||||
| Net accretion of premium/discount | 19 | — | — | — | — | |||||||||||||||
| Return of investment | — | (50 | ) | — | — | — | ||||||||||||||
| Principal payments received on debt investments | (20,430 | ) | (12,330 | ) | — | (3,255 | ) | — | ||||||||||||
| Additions to servicing assets | — | — | 4,447 | — | — | |||||||||||||||
| Fair value, September 30, 2017 | $ | 257,136 | $ | 136,949 | $ | 19,092 | $ | — | $ | 620 | ||||||||||
| Nine Months Ended September 30, 2016 | ||||||||||||||||
| SBA Unguaranteed Investments | Controlled Investments | Non- Control/Non- Affiliate Investments | Servicing Assets | |||||||||||||
| Fair value, December 31, 2015 | $ | 158,355 | $ | 104,376 | $ | 1,824 | $ | 13,042 | ||||||||
| Net change in unrealized appreciation (depreciation) | 869 | 10,362 | (43 | ) | (1,341 | ) | ||||||||||
| Realized loss | (763 | ) | — | — | — | |||||||||||
| SBA unguaranteed non-affiliate investments, funded | 51,567 | — | — | — | ||||||||||||
| Foreclosed real estate acquired | (387 | ) | — | — | — | |||||||||||
| Purchase of investments | — | 6,275 | 1,020 | — | ||||||||||||
| Transfer from due from related parties | — | 435 | — | — | ||||||||||||
| Transfer of Titanium Asset Management LLC from Non-control/Non-affiliate to Controlled Investments | — | 1,146 | (1,146 | ) | — | |||||||||||
| Purchase of loan from SBA | 2,057 | — | — | — | ||||||||||||
| Principal payments received on debt investments | (15,074 | ) | (2,174 | ) | (635 | ) | — | |||||||||
| Additions to servicing assets | — | — | — | 3,918 | ||||||||||||
| Fair value, September 30, 2016 | $ | 196,624 | $ | 120,420 | $ | 1,020 | $ | 15,619 | ||||||||
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The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of September 30, 2017 and December 31, 2016. In addition to the techniques and inputs noted in the table below, according to our valuation policy we may also use other valuation techniques and methodologies when determining our fair value measurements. The tables below are not intended to be all-inclusive, but rather provide information on the significant Level 3 inputs as they relate to the Company’s fair value measurements at September 30, 2017 and December 31, 2016.
| Range | ||||||||||||||||||||
| Fair Value as of September 30, 2017 | Valuation Techniques | Unobservable Input | Weighted Average | Minimum | Maximum | |||||||||||||||
| Assets: | ||||||||||||||||||||
| SBA unguaranteed non-affiliate investments - performing loans | $ | 247,347 | Discounted cash flow | Market yields | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||
| SBA unguaranteed non-affiliate investments - non-performing loans | $ | 9,789 | Discounted cash flow | Market yields | 5.53 | % | 5.53 | % | 5.53 | % | ||||||||||
| Controlled equity investments (A)(B) | $ | 128,020 | Market comparable companies | EBITDA multiples (B) | 5.80 | x | 3.50 | x | 6.62 | x | ||||||||||
| Market comparable companies | Revenue multiples (B) | 1.11 | x | 0.22 | x | 2.49 | x | |||||||||||||
| Discounted cash flow | Weighted average cost of capital (B) | 12.68 | % | 10.30 | % | 22.50 | % | |||||||||||||
| Controlled debt investments | $ | 8,441 | Discounted cash flow | Market yields | 6.62 | % | 4.75 | % | 10.00 | % | ||||||||||
| $ | 488 | Liquidation value | Asset value | N/A | N/A | N/A | ||||||||||||||
| Servicing assets | $ | 19,092 | Discounted cash flow | Market yields | 12.20 | % | 12.20 | % | 12.20 | % | ||||||||||
| Contingent consideration liabilities | $ | 620 | Discounted cash flow | Projected EBITDA and probability of achievement | N/A | N/A | N/A | |||||||||||||
(A) In determining the fair value of the Company’s controlled equity investments as of September 30, 2017, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 45.5% and 54.5%, respectively, on a weighted average basis.
(B) The Company valued $116,620,000 of investments using an equal weighting of EBITDA and revenue multiples and none of its investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $11,400,000 of investments using only discounted cash flows.
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| Range | ||||||||||||||||||||
| Fair Value as of December 31, 2016 | Valuation Techniques | Unobservable Input | Weighted Average | Minimum | Maximum | |||||||||||||||
| Assets: | ||||||||||||||||||||
| SBA unguaranteed non-affiliate investments - performing loans | $ | 202,887 | Discounted cash flow | Market yields | 5.50 | % | 5.50 | % | 5.50 | % | ||||||||||
| SBA unguaranteed non-affiliate investments - non-performing loans | $ | 8,584 | Discounted cash flow | Market yields | 6.19 | % | 6.19 | % | 6.19 | % | ||||||||||
| Controlled equity investments (A)(B) | $ | 116,919 | Market comparable companies | EBITDA multiples (B) | 6.10 | x | 3.01 | x | 6.99 | x | ||||||||||
| Market comparable companies | Revenue multiples (B) | 1.21 | x | 0.62 | x | 3.08 | x | |||||||||||||
| Discounted cash flow | Weighted average cost of capital (B) | 12.57 | % | 11.00 | % | 15.30 | % | |||||||||||||
| Controlled debt investments | $ | 3,875 | Discounted cash flow | Market yields | 7.05 | % | 5.75 | % | 10.00 | % | ||||||||||
| $ | 508 | Liquidation value | Asset value | N/A | N/A | N/A | ||||||||||||||
| Non-control/non-affiliate debt investments | $ | 904 | Liquidation value | Asset value | N/A | N/A | N/A | |||||||||||||
| Servicing assets | $ | 16,246 | Discounted cash flow | Market yields | 12.20 | % | 12.20 | % | 12.20 | % | ||||||||||
(A) In determining the fair value of the Company’s controlled equity investments as of December 31, 2016, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 46.1% and 53.9%, respectively, on a weighted average basis.
(B) The Company valued $106,609,000 of investments using an equal weighting of EBITDA and revenue multiples and $860,000 of investments using only revenue multiples in the overall valuation approach which included the use of market comparable companies. The Company valued $9,450,000 of investments using only discounted cash flows.
NOTE 7—BORROWINGS:
At September 30, 2017 and December 31, 2016, the Company had borrowings comprised of the following:
| September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
| Commitments | Borrowings Outstanding | Weighted Average Interest Rate | Commitments | Borrowings Outstanding | Weighted Average Interest Rate | |||||||||||||||||||
| Capital One line of credit - guaranteed (1) | $ | 100,000 | $ | 36,926 | 4.00 | % | $ | 50,000 | $ | 5,100 | 4.50 | % | ||||||||||||
| Capital One line of credit - unguaranteed (1) | — | 29,220 | 5.00 | % | — | — | — | % | ||||||||||||||||
| Notes due 2021 | 40,250 | 39,027 | 7.00 | % | 40,250 | 38,767 | 7.00 | % | ||||||||||||||||
| Notes due 2022 | 8,324 | 7,915 | 7.50 | % | 8,324 | 7,853 | 7.50 | % | ||||||||||||||||
| Notes payable - related parties | 50,000 | 20,541 | 7.31 | % | 38,000 | 1,400 | 7.67 | % | ||||||||||||||||
| Notes payable - Securitization trusts | 97,607 | 95,376 | 4.41 | % | 120,945 | 118,122 | 3.79 | % | ||||||||||||||||
| Total | $ | 296,181 | $ | 229,005 | 5.23 | % | $ | 257,519 | $ | 171,242 | 4.75 | % | ||||||||||||
(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $100,000,000 at September 30, 2017 and $50,000,000 December 31, 2016.
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Outstanding borrowings under the Notes due 2022, Notes due 2021 and Notes payable - Securitization trusts consisted of the following:
| September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||
| Notes Due 2022 | Notes Due 2021 | Notes Payable- Securitization Trusts | Notes Due 2022 | Notes Due 2021 | Notes Payable- Securitization Trusts | |||||||||||||||||||
| Principal | $ | 8,324 | $ | 40,250 | $ | 97,607 | $ | 8,324 | $ | 40,250 | $ | 120,945 | ||||||||||||
| Unamortized deferred financing costs | (409 | ) | (1,223 | ) | (2,231 | ) | (471 | ) | (1,483 | ) | (2,823 | ) | ||||||||||||
| Net carrying amount | $ | 7,915 | $ | 39,027 | $ | 95,376 | $ | 7,853 | $ | 38,767 | $ | 118,122 | ||||||||||||
At September 30, 2017 and December 31, 2016, the carrying amount of the Company’s borrowings under the Capital One lines of credit, Notes payable - related parties and Notes payable - Securitization trusts, approximates fair value due to their variable interest rates.
The fair value of the fixed rate Notes due 2022 and Notes due 2021 is based on the closing public share price on the date of measurement. On September 30, 2017, the closing price of the Notes due 2022 was $26.36 per note, or $8,777,000. On September 30, 2017, the closing price of the Notes due 2021 was $25.50 per note, or $41,055,000. These borrowings are not recorded at fair value on a recurring basis.
Total interest expense including unused line fees and amortization of deferred financing costs related to borrowings for the three months ended September 30, 2017 and 2016 was $2,981,000 and $2,328,000, respectively. Total interest expense for the nine months ended September 30, 2017 and 2016 on all Company borrowings was $8,118,000 and $5,764,000, respectively.
NOTE 8—COMMITMENTS AND CONTINGENCIES:
Legal Matters
From time to time, the Company may be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on the Company in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, the Company does not expect that any current matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on its financial condition or results of operations in any future reporting period.
On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana. The Company closed on its $5,400,000 investment in BSP in June 2016. The Company is monitoring the situation and is cooperating fully with the authorities. While the outcome of this situation cannot at this time be predicted with certainty, the Company does not expect that the matter will materially affect the Company’s financial condition or results of operations.
Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBCS. Maximum borrowings under the Sterling Receivable and Inventory Facility are $15,000,000. The Sterling Receivable and Inventory Facility matures in February 2018. At September 30, 2017, total principal owed by NBCS was $10,041,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.
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The Company is also a guarantor on the Sterling 504 Facility at NBCS. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in August 2018. At September 30, 2017, total principal owed by NBCS was $2,609,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.
The Company is a guarantor on the Goldman Facility, a term loan facility between UPSW, NTS, Premier, BSP and SBL with Goldman Sachs with an aggregate principal amount up to $50,000,000. The Goldman Facility matures in June 2021. At September 30, 2017, total principal outstanding was $40,000,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.
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NOTE 9—FINANCIAL HIGHLIGHTS:
The financial highlights for the Company are as follows:
| Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||
| Per share data (1) | ||||||||
| Net asset value at beginning of period | $ | 14.30 | $ | 14.06 | ||||
| Net investment loss | (0.29 | ) | (0.52 | ) | ||||
| Net realized gain | 1.61 | 1.55 | ||||||
| Net unrealized (depreciation) appreciation on investments | (0.05 | ) | 0.82 | |||||
| Net unrealized depreciation on servicing assets | (0.09 | ) | (0.09 | ) | ||||
| Change in provision for deferred taxes | 0.04 | (0.31 | ) | |||||
| Net increase in net assets | 1.22 | 1.45 | ||||||
| Dividends to common stockholders from net investment income | (0.36 | ) | — | |||||
| Distributions to common stockholders from capital gains | (0.84 | ) | (1.13 | ) | ||||
| Total dividends paid | (1.20 | ) | (1.13 | ) | ||||
| Stock-based compensation expense | 0.05 | 0.02 | ||||||
| Consolidation of Exponential Business Development Co., Inc. | — | (0.03 | ) | |||||
| Accretive effect of stock offerings (issuing shares above NAV per share) | 0.05 | — | ||||||
| Accretive effect of shares issued in connection with investments (issuing shares above NAV per share) | 0.01 | — | ||||||
| Dilutive effect of purchase of vested stock for employee payroll tax withholding (purchase of shares above NAV) | (0.01 | ) | — | |||||
| Impact of restricted stock awards | — | (0.11 | ) | |||||
| Other (5) | (0.02 | ) | — | |||||
| Net asset value at end of period | $ | 14.40 | $ | 14.26 | ||||
| Per share market value at end of period | $ | 17.82 | $ | 14.26 | ||||
| Total return based on market value (3) | 19.62 | % | 10.27 | % | ||||
| Total return based on average net asset value (2)(3)(4) | 12.12 | % | 12.61 | % | ||||
| Shares outstanding at end of period (in thousands) | 17,750 | 14,594 | ||||||
| Ratios/Supplemental Data: | ||||||||
| Net assets at end of period | $ | 255,612 | $ | 208,172 | ||||
| Ratio of expenses to average net assets (2) | 19.2 | % | 19.06 | % | ||||
| Ratio of net investment loss to average net assets | (2.85 | )% | (3.68 | )% | ||||
| Portfolio turnover | 81.49 | % | 89.03 | % | ||||
| Average debt outstanding | $ | 200,124 | $ | 154,640 | ||||
| Average debt outstanding per share | $ | 11.27 | $ | 10.60 | ||||
| Asset coverage ratio | 212 | % | 217 | % | ||||
(1) Based on actual number of shares outstanding at the end of the corresponding period or the weighted average shares outstanding for the period, unless otherwise noted, as appropriate.
(2) Annualized.
(3) Assumes dividends are reinvested.
(4) Total return based on average net asset value was calculated using the sum of ending net asset value plus dividends to stockholders during the period, divided by the beginning net asset value.
(5) Includes the impact of the different share amounts as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date.
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NOTE 10—STOCK BASED COMPENSATION:
Stock Plan
The Company accounts for its stock-based compensation plan using the fair value method, as prescribed by ASC 718, Compensation—Stock Compensation. Accordingly, for restricted stock awards, the Company measured the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as stock-based compensation expense over the requisite service period, which is generally the vesting term.
The Board approves the issuance of shares of restricted stock to employees and directors pursuant to the Equity Incentive Plan. These shares generally vest over a one or two year period from the grant date. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances under the Equity Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of September 30, 2017.
| Restricted stock authorized under the plan (1) | 1,500,000 | |||
| Less restricted stock granted during: | ||||
| Year ended December 31, 2016 | (120,933 | ) | ||
| Nine months ended September 30, 2017 | (5,007 | ) | ||
| Restricted stock available for issuance as of September 30, 2017 | 1,374,060 |
(1) A maximum of 20% of total shares of common stock issued and outstanding, calculated on a fully diluted basis, not to exceed 3,000,000 shares, are available for awards of restricted stock and stock options under the Equity Incentive Plan. No more than 50% of the shares of stock reserved for the grant of awards under the Equity Incentive Plan may be restricted stock awards at any time during the term of the Equity Incentive Plan. No stock options have been granted under the Equity Incentive Plan.
For the three months ended September 30, 2017 and 2016, the Company recognized total stock-based compensation expense of $152,000 and $226,000, respectively. For the nine months ended September 30, 2017 and 2016, the Company recognized total stock-based compensation expense of $904,000 and $226,000, respectively.
As of September 30, 2017, there was $276,000 of total unrecognized compensation expense related to unvested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of approximately 1.49 years as of September 30, 2017.
NOTE 11—COMMON STOCK:
The following table summarizes the total shares issued and proceeds received net of underwriting and offering costs in public offerings of the Company’s common stock since conversion to a BDC:
| Year Ended | ||||||||||||||||
| Nine Months Ended September 30, 2017 | December 31, 2016 | December 31, 2015 | December 31, 2014 | |||||||||||||
| Shares issued | 2,587,500 | — | 2,300,000 | 2,530,000 | ||||||||||||
| Offering price per share | $ | 15.25 | $ | — | $ | 16.50 | $ | 12.50 | ||||||||
| Proceeds net of underwriting discounts and offering costs | $ | 37,042 | $ | — | $ | 35,290 | $ | 27,883 | ||||||||
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In January 2017 the Company priced a public offering of 2,250,000 shares of its common stock at a public offering price of $15.25 per share. The Company also sold an additional 337,500 shares of its common stock at a public offering price of $15.25 per share pursuant to the underwriter’s full exercise of the over-allotment option.
ATM Program
On March 20, 2017, the Company entered into an ATM Equity Distribution Agreement. The ATM Equity Distribution Agreement provides that the Company may offer and sell up to 2,900,000 shares of common stock from time to time through the Placement Agents. On September 6, 2017, the Company entered into an amended ATM Equity Distribution Agreement for the purpose of adding D.A. Davidson as placement agent. During the nine months ended September 30, 2017, the Company sold 455,000 shares of its common stock at a weighted average price of $17.19 per share. Proceeds, net of offering costs and expenses were $7,666,000. As of September 30, 2017, there were 20,000 shares traded that had not settled and are not included in shares issued and outstanding on the face of the condensed consolidated balance sheet, but are included in the weighted average share outstanding in the condensed consolidated statement of operations and in the shares used to calculate net asset value per share. As of September 30, 2017, there were 2,445,000 shares of common stock available for sale under the ATM Equity Distribution Agreement.
The Company used the net proceeds for funding investments in debt and equity securities in accordance with its investment objective and strategies.
Investment in IPM
In connection with its investment in IPM, the Company issued 60,490 restricted common shares valued at $1,000,000.
Share Repurchase Plan
On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. This program terminated on May 21, 2017.
On May 11, 2016, the Company announced that its Board approved a share repurchase program under which the Company could repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016.
During the nine months ended September 30, 2016, the Company repurchased and retired 70,000 common shares in open market transactions for $866,000 as detailed in the table below. This program terminated on June 3, 2016
| Purchase date | Number of Shares Purchased | Price per Share | Total | |||||||||
| March 10, 2016 | 10 | $ | 12.34 | $ | 123 | |||||||
| March 18, 2016 | 20 | $ | 12.45 | 249 | ||||||||
| March 18, 2016 | 30 | $ | 12.48 | 375 | ||||||||
| March 23, 2016 | 10 | $ | 11.88 | 119 | ||||||||
| Total | 70 | $ | 866 | |||||||||
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NOTE 12—EARNINGS PER SHARE:
The following table summarizes the calculations for the net increase in net assets per common share for the three and nine months ended September 30, 2017 and 2016:
| Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
| Net increase in net assets | $ | 8,077 | $ | 10,040 | $ | 20,912 | $ | 21,016 | ||||||||
| Weighted average shares outstanding | 17,487 | 14,556 | 17,076 | 14,515 | ||||||||||||
| Net increase in net assets per common share | $ | 0.46 | $ | 0.69 | $ | 1.22 | $ | 1.45 | ||||||||
NOTE 13—DIVIDENDS AND DISTRIBUTIONS:
The Company’s dividends and distributions are recorded on the declaration date. The following table summarizes the Company’s dividend declarations and distributions during the nine months ended September 30, 2017 and 2016.
| Date Declared | Record Date | Payment Date | Amount Per Share | Cash Distribution | DRIP Shares Issued | DRIP Shares Value | ||||||||||||||
| September 30, 2017 | ||||||||||||||||||||
| March 6, 2017 | March 20, 2017 | March 31, 2017 | $ | 0.36 | $ | 6,062 | 6 | $ | 89 | |||||||||||
| May 4, 2017 | May 31, 2017 | June 30, 2017 | $ | 0.40 | $ | 6,804 | 7 | $ | 112 | |||||||||||
| August 21, 2017 | September 22, 2017 | September 29, 2017 | $ | 0.44 | $ | 7,585 | 11 | $ | 184 | |||||||||||
| September 30, 2016 | ||||||||||||||||||||
| February 25, 2016 | March 22, 2016 | March 31, 2016 | $ | 0.35 | $ | 4,708 | 29 | $ | 362 | |||||||||||
| June 9, 2016 | June 20, 2016 | June 30, 2016 | $ | 0.35 | $ | 4,985 | 7 | $ | 83 | |||||||||||
| September 7, 2016 | September 20, 2016 | September 30, 2016 | $ | 0.43 | $ | 6,152 | 6 | $ | 77 | |||||||||||
During the nine months ended September 30, 2017, an additional 6,591 shares valued at $110,000 were issued related to dividends from unvested restricted stock awards.
NOTE 14—SUPPLEMENTAL FINANCIAL DATA:
Summarized Financial Information of Our Unconsolidated Subsidiaries
The Company holds a controlling interest, as defined by the 1940 Act in portfolio companies that are not consolidated in the Company’s condensed consolidated financial statements. Below is a brief description of a portfolio company that is required to have supplemental disclosure incorporated in our financial statements in accordance with Regulation S-X section 4-08(g), along with summarized financial information as of September 30, 2017 and 2016.
Universal Processing Services of Wisconsin, LLC
UPSW markets credit and debit card processing services, check approval services and ancillary processing equipment and software to merchants who accept credit cards, debit cards, checks and other non-cash forms of payment.
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The summarized financial information of our unconsolidated subsidiary is as follows:
| Balance Sheets - Universal Processing Services of Wisconsin, LLC | As of September 30, 2017 | As of December 31, 2016 | ||||||
| Current assets | $ | 8,014 | $ | 11,522 | ||||
| Noncurrent assets | 19,265 | 4,907 | ||||||
| Total assets | $ | 27,279 | $ | 16,429 | ||||
| Current liabilities | 3,500 | 5,619 | ||||||
| Noncurrent liabilities | 30,499 | 16,432 | ||||||
| Total liabilities | $ | 33,999 | $ | 22,051 | ||||
| Total deficit | $ | (6,720 | ) | $ | (5,622 | ) | ||
| Statements of Income - Universal Processing Services of Wisconsin, LLC | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||
| Revenue | $ | 27,119 | $ | 26,466 | $ | 82,879 | $ | 76,947 | ||||||||
| Expenses | 24,925 | 24,553 | 76,559 | 71,410 | ||||||||||||
| Income from operations | $ | 2,194 | $ | 1,913 | $ | 6,320 | $ | 5,537 | ||||||||
| Interest (expense) income, net | (328 | ) | (384 | ) | (1,115 | ) | (1,048 | ) | ||||||||
| Income before tax | $ | 1,866 | $ | 1,529 | $ | 5,205 | $ | 4,489 | ||||||||
The Company recorded the following related to its investment in UPSW:
| Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
| Dividend income | $ | 1,750 | $ | 1,700 | $ | 5,250 | $ | 4,500 | ||||||||
| Unrealized appreciation | $ | 2,000 | $ | 5,900 | $ | 3,000 | $ | 9,600 | ||||||||
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NOTE 15—SUBSEQUENT EVENTS:
Portfolio Company Developments
On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana. The Company closed on its $5,400,000 investment in BSP in June 2016. The Company is monitoring the situation and is cooperating fully with the authorities. While the outcome of this situation cannot at this time be predicted with certainty, the Company does not expect that the matter will materially affect the Company’s financial condition or results of operations.
On October 24, 2017, the Company invested in 100% of the membership interests of a new wholly-owned, controlled portfolio company, United Capital Source, LLC (“UCS”), which is a lead generator for commercial financing companies. Total consideration paid by the Company was $3,050,000 and consisted of $500,000 in restricted shares of Newtek common stock and $1,950,000 in cash, with the $600,000 balance to be paid in cash and Newtek common stock, in two equal installments in 2018 and 2019 based on UCS attaining specific EBITDA targets for 2019 and 2020.
Common Stock
From October 1, 2017 through November 6, 2017 the Company sold 245,746 shares of its common stock at a weighted average price of $17.54 per share under the ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $4,223,000. As of November 6, 2017, there were 2,199,000 shares of common stock available for sale under the ATM Equity Distribution Agreement.
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Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Nine Months Ended September 30, 2017
| Portfolio Company | Type
of Investment (1) | Amount
of Realized Gain (Loss) | Amount of Unrealized | Amount
of Interest or Dividends Credited to Income (3) | Fair
Value at December 31, 2016 | Gross
Additions (4) | Gross
Reductions (5) | Fair
Value at September 30, 2017 | ||||||||||||||||||||||
| Advanced Cyber Security Systems, LLC | 50% Membership Interest (2) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Term Loan (3%) (2) | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Automated Merchant Services, Inc. | 100% Common Stock (2) | — | — | — | — | — | — | — | ||||||||||||||||||||||
| CDS Business Services, Inc. | 100% Common Stock | — | 4,750 | 200 | 750 | 4,750 | — | 5,500 | ||||||||||||||||||||||
| Line of Credit (Prime + 2.5%) (6) | — | — | 376 | 2,690 | 15,703 | (10,498 | ) | 7,895 | ||||||||||||||||||||||
| Newtek Technology Solutions, Inc. | 100% Common Stock | — | (4,059 | ) | — | 20,109 | — | (4,109 | ) | 16,000 | ||||||||||||||||||||
| Fortress Data Management, LLC | 100% Membership Interest (2) | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Newtek Insurance Agency, LLC | 100% Membership Interest (2) | — | — | — | 2,500 | — | — | 2,500 | ||||||||||||||||||||||
| PMTWorks Payroll, LLC | 100% Membership Interest (2) | — | (860 | ) | — | 860 | — | (860 | ) | — | ||||||||||||||||||||
| Term Loans (10%-12%) (2) | — | (2,185 | ) | — | 1,185 | 1,000 | (2,185 | ) | — | |||||||||||||||||||||
| Secure CyberGateway Services, LLC | 66.7% Membership Interest | — | — | 26 | — | — | — | — | ||||||||||||||||||||||
| Term Loan (7%) | — | — | 10 | — | — | — | — | |||||||||||||||||||||||
| Premier Payments LLC | 100% Membership Interest | — | — | 1,200 | 21,000 | — | — | 21,000 | ||||||||||||||||||||||
| Small Business Lending, LLC | 100% Membership Interest | — | (800 | ) | 100 | 3,300 | — | (800 | ) | 2,500 | ||||||||||||||||||||
| banc-serv Partners, LLC | 100% Membership Interest | — | (2,000 | ) | — | 5,400 | — | (2,000 | ) | 3,400 | ||||||||||||||||||||
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| Portfolio Company | Type
of Investment (1) | Amount
of Realized Gain (Loss) | Amount of Unrealized | Amount
of Interest or Dividends Credited to Income (3) | Fair
Value at December 31, 2016 | Gross
Additions (4) | Gross
Reductions (5) | Fair
Value at September 30, 2017 | ||||||||||||||||||||||
| International Professional Marketing, Inc. (8) | 100% Common Stock | — | — | 550 | — | 8,800 | — | 8,800 | ||||||||||||||||||||||
| Line of Credit (Prime + 0.5%) (6) | — | — | 6 | — | 1,200 | (1,000 | ) | 200 | ||||||||||||||||||||||
| SIDCO, LLC (8) | 100% Membership Interest (2) | — | — | — | — | 2,320 | — | 2,320 | ||||||||||||||||||||||
| Line of Credit (Prime + 0.5%) (6) | — | — | 2 | — | 345 | — | 345 | |||||||||||||||||||||||
| Excel WebSolutions LLC (7) | Term Loans (10%) | — | (47 | ) | 56 | 904 | — | (415 | ) | 489 | ||||||||||||||||||||
| 50% Membership Interest (2) | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Titanium Asset Management, LLC | 100% Membership Interest (2) | — | (42 | ) | — | — | — | — | — | |||||||||||||||||||||
| Term Loans (3%) (2) | — | — | 6 | 508 | — | (508 | ) | — | ||||||||||||||||||||||
| Summit Systems and Designs, LLC | 100% Membership Interest (2) | — | — | 54 | — | — | — | — | ||||||||||||||||||||||
| Universal Processing Services of Wisconsin, LLC | 100% Membership Interest | — | 3,000 | 5,250 | 63,000 | 3,000 | — | 66,000 | ||||||||||||||||||||||
| Total Controlled Investments | $ | — | $ | (2,243 | ) | $ | 7,836 | $ | 122,206 | $ | 37,118 | $ | (22,375 | ) | $ | 136,949 | ||||||||||||||
This schedule should be read in connection with the Company’s Condensed Consolidated Financial Statements, including the Consolidated Schedule of Investments and Notes to the Condensed Consolidated Financial Statements.
(1) The principal amount and ownership detail as shown in the Company’s Consolidated Schedule of Investments.
(2) Represents non-income producing security.
(3) Represents the total amount of interest, fees or dividends credited to income for the period.
(4) Gross additions includes increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and the exchange of one or more existing securities for one or more new securities. Gross additions also includes net increases in unrealized appreciation or net decreases in unrealized depreciation.
(5) Gross reductions include decreases in the cost basis of investments resulting from principal payments or sales and exchanges of one or more existing securities for one or more new securities. Gross reductions also include net increases in unrealized depreciation or net decreases in unrealized appreciation.
(6) Index based floating rate debt investments bear interest at rate of Prime plus a contractual spread which typically resets monthly. At September 30, 2017, the Prime rate was 4.25%.
(7) Prior to January 2017, EWS was a non-control/non-affiliate investment. Refer to Note 4.
(8) During the three months ended September 30, 2017, a portion of IPM’s business was spun off into a new wholly-owned controlled portfolio company, SIDCO. As a result, the underlying IPM business has not changed. The Company determined the cost basis of its investments in IPM and SIDCO to be $8,800,000 and $2,320,000, respectively. Refer to Note 3.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Forward-Looking Statements
The matters discussed in this report, as well as in future oral and written statements by management of Newtek Business Services Corp., that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this report include statements as to:
| • | our future operating results; |
| • | our business prospects and the prospects of our prospective portfolio companies; |
| • | the impact of investments that we expect to make; |
| • | our informal relationships with third parties; |
| • | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
| • | our ability to access debt markets and equity markets; |
| • | the ability of our portfolio companies to achieve their objectives; |
| • | our expected financings and investments; |
| • | our regulatory structure and tax status; |
| • | our ability to operate as a BDC and a RIC; |
| • | our ability to maintain our license under the SBA 7(a) program; |
| • | the adequacy of our cash resources and working capital; |
| • | the timing of cash flows, if any, from the operations of our portfolio companies; |
| • | the timing, form and amount of any dividend distributions; |
| • | the impact of fluctuations in interest rates on our business; |
| • | the valuation of any investments in portfolio companies, particularly those having no liquid trading market; and |
| • | our ability to recover unrealized losses. |
The following discussion should be read in conjunction with our condensed consolidated financial statements and related notes and other financial information appearing elsewhere in this report. In addition to historical information, the following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. Our actual results could differ materially from those anticipated by such forward-looking information due to the factors discussed under Item 1A-“Risk Factors” of Part II of this quarterly report on Form 10-Q, Item 1A-“Risk Factors” of our annual report on Form 10-K filed with the SEC on March 13, 2017 and under “Forward-Looking Statements” of this Item 2.
Executive Overview
We are a leading national non-bank lender and own and control certain portfolio companies under the Newtek® brand (our “controlled portfolio companies,” as defined below) that provide a wide range of business and financial products to SMBs. Newtek's products and services include: Business Lending, including the SBA’s 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), Technology Consulting, eCommerce, Accounts Receivable and Inventory Financing, The Secure Gateway, The Newtek Advantage®, personal and commercial Insurance Services, Web Services, Data Backup, Store and Retrieval and Payroll and Benefits Solutions to SMB accounts nationwide across all industries. We have an established and reliable platform that is not limited by client size, industry type, or location. As a result, we believe we have a strong and diversified client base across every state in the U.S and across a variety of different industries. In addition, we have developed a financial and technology based business model that enables us and our controlled portfolio companies to acquire and process our SMB clients in a very cost effective manner. This capability is supported in large part by NewTracker®, our patented prospect management technology software, which is similar to but we believe better than the system popularized by Salesforce.com. We believe that this technology and business model distinguishes us from our competitors.
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We consolidate the following wholly-owned subsidiaries:
| • | Newtek Small Business Finance, LLC |
| • | Newtek Asset Backed Securities, LLC |
| • | The Whitestone Group, LLC |
| • | Wilshire Colorado Partners, LLC |
| • | Wilshire DC Partners, LLC |
| • | Wilshire Holdings I, Inc. |
| • | Wilshire Louisiana Bidco, LLC |
| • | Wilshire Louisiana Partners II, LLC |
| • | Wilshire Louisiana Partners III, LLC |
| • | Wilshire Louisiana Partners IV, LLC |
| • | Wilshire New York Advisers II, LLC |
| • | Wilshire New York Partners III, LLC |
| • | Wilshire New York Partners IV, LLC |
| • | Wilshire New York Partners V, LLC |
| • | Wilshire Partners, LLC |
| • | CCC Real Estate Holdings, LLC |
| • | Banc-Serv Acquisition, Inc. |
| • | Exponential Business Development Co., Inc. |
| • | Newtek LSP Holdco, LLC |
| • | Newtek Business Services Holdco 1, Inc. |
| • | Newtek Business Services Holdco 2, Inc. |
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We are an internally-managed, closed-end, non-diversified investment company that has elected to be regulated as a BDC under the 1940 Act. In addition, for U.S. federal income tax purposes, we have elected to be treated as a RIC under the Code beginning in our 2015 tax year ended December 31, 2015. As a BDC and a RIC, we are also subject to certain constraints, including limitations imposed by the 1940 Act and the Code. We converted to a BDC in November 2014. As a result, previously consolidated subsidiaries are now recorded as investments in controlled portfolio companies, at fair value. NSBF is a consolidated subsidiary and originates loans under the SBA's 7(a) program.
Our common shares are currently listed on the Nasdaq Global Market under the symbol “NEWT”.
NSBF has been granted PLP status and originates, sells and services SBA 7(a) small business loans and is authorized to place SBA guarantees on loans without seeking prior SBA review and approval. Being a national lender, PLP status allows NSBF to expedite the origination of loans since NSBF is not required to present applications to the SBA for concurrent review and approval. The loss of PLP status could adversely impact our marketing efforts and ultimately our loan origination volume which could negatively impact our results of operations.
As a BDC, our investment objective is to generate both current income and capital appreciation primarily through loans originated by our small business finance platform and our equity investments in certain portfolio companies that we control.
We target our debt investments, which are principally made through our small business finance platform under the SBA 7(a) program, to produce a coupon rate of prime plus 2.75% which enables us to generate rapid sales of loans in the secondary market. We typically structure our debt investments with the maximum seniority and collateral along with personal guarantees from portfolio company owners, in many cases collateralized by other assets including real estate. In most cases, our debt investment will be collateralized by a first lien on the assets of the portfolio company and a first or second lien on assets of guarantors, in both cases primarily real estate. All SBA loans are made with personal guarantees from any owner(s) of 20% or more of the portfolio company’s equity.
We typically structure our debt investments to include non-financial covenants that seek to minimize our risk of capital loss such as lien protection and prohibitions against change of control. Our debt investments have strong protections, including default penalties, information rights and, in some cases, board observation rights and affirmative, negative and financial covenants. Debt investments in portfolio companies, including the controlled portfolio companies, have historically and are expected to continue to comprise the majority of our overall investments in number and dollar volume.
While the vast majority of our investments have been structured as debt, we have in the past and expect in the future to make selective equity investments primarily as either strategic investments to enhance the integrated operating platform or, to a lesser degree, under the Capco programs. For investments in our controlled portfolio companies, we focus more on tailoring them to the long term growth needs of the companies than to immediate return. Our objectives with these companies is to foster the development of the businesses as a part of the integrated operational platform of serving the SMB market, so we may reduce the burden on these companies to enable them to grow faster than they would otherwise and as another means of supporting their development.
We regularly engage in discussions with third parties with respect to various potential transactions. We may acquire an investment or a portfolio of investments or an entire company or sell a portion of our portfolio on an opportunistic basis. We, our subsidiaries, or our affiliates may also agree to manage certain other funds that invest in debt, equity or provide other financing or services to companies in a variety of industries for which we may earn management or other fees for our services. We may also invest in the equity of these funds, along with other third parties, from which we would seek to earn a return and/or future incentive allocations. Some of these transactions could be material to our business. Consummation of any such transaction will be subject to completion of due diligence, finalization of key business and financial terms (including price) and negotiation of final definitive documentation as well as a number of other factors and conditions including, without limitation, the approval of our board of directors and required regulatory or third party consents and, in certain cases, the approval of our shareholders. Accordingly, there can be no assurance that any such transaction would be consummated. Any of these transactions or funds may require significant management resources either during the transaction phase or on an ongoing basis depending on the terms of the transaction.
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Revenues
We generate revenue in the form of interest, dividend, servicing and other fee income on debt and equity investments. Our debt investments typically have terms of 10 to 25 years and bear interest at prime plus a margin. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. The frequency or volume of these repayments fluctuates significantly from period to period. Our portfolio activity also reflects the proceeds of sales of securities. We receive servicing income related to the guaranteed portions of SBA investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. In addition, we may generate revenue in the form of packaging, prepayment, legal and late fees. We record such fees related to loans as other income. Dividends are recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income is recorded at the time dividends are declared. Distributions of earnings from portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.
We recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized. We record current period changes in fair value of investments and assets that are measured at fair value as a component of the net change in unrealized appreciation (depreciation) on investments or servicing assets, as appropriate, in the condensed consolidated statements of operations.
Expenses
Our primary operating expenses are salaries and benefits, interest expense and other general and administrative costs, such as professional fees, marketing, loan related costs and rent. Since we are an internally-managed BDC with no outside adviser or management company, the BDC incurs all the related costs to operate the Company.
Guarantees
The Company is a guarantor on the Sterling Receivable and Inventory Facility at NBCS. Maximum borrowings under the Sterling Receivable and Inventory Facility are $15,000,000. The Sterling Receivable and Inventory Facility matures in February 2018. At September 30, 2017, total principal owed by NBCS was $10,041,000. In addition, the Company deposited $750,000 to collateralize the guarantee. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.
The Company is also a guarantor on the Sterling 504 Facility at NBCS. Maximum borrowings under the 504 Facility are $35,000,000, depending upon syndication. The Sterling 504 Facility matures in August 2018. At September 30, 2017, total principal owed by NBCS was $2,609,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.
The Company is a guarantor on the Goldman Facility, a term loan facility between UPSW, NTS, Premier, BSP and SBL with Goldman Sachs with an aggregate principal amount up to $50,000,000. The Goldman Facility matures in June 2021. At September 30, 2017, total principal outstanding was $40,000,000. At September 30, 2017, the Company determined that it is not probable that payments would be required to be made under the guarantee.
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Loan Portfolio Asset Quality and Composition
The following tables set forth distribution by business type of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
| Distribution by Business Type | ||||||||||||||||
| Business Type | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| Existing Business | 1,139 | $ | 216,247 | $ | 190 | 81.6 | % | |||||||||
| Business Acquisition | 182 | 35,237 | 194 | 13.3 | % | |||||||||||
| Start-Up Business | 134 | 13,648 | 102 | 5.1 | % | |||||||||||
| Total | 1,455 | $ | 265,132 | $ | 182 | 100.0 | % | |||||||||
As of December 31, 2016
| Distribution by Business Type | ||||||||||||||||
| Business Type | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| Existing Business | 921 | $ | 177,430 | $ | 193 | 80.7 | % | |||||||||
| Business Acquisition | 169 | 30,454 | 180 | 13.9 | % | |||||||||||
| Start-Up Business | 138 | 11,900 | 86 | 5.4 | % | |||||||||||
| Total | 1,228 | $ | 219,784 | $ | 179 | 100.0 | % | |||||||||
The following tables set forth distribution by borrower’s credit score of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
| Distribution by Borrower Credit Score | ||||||||||||||||
| Credit Score | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| 500 to 550 | 17 | $ | 2,657 | $ | 156 | 1.0 | % | |||||||||
| 551 to 600 | 45 | 10,021 | 223 | 3.8 | % | |||||||||||
| 601 to 650 | 209 | 41,938 | 201 | 15.8 | % | |||||||||||
| 651 to 700 | 429 | 82,185 | 192 | 31.0 | % | |||||||||||
| 701 to 750 | 433 | 78,979 | 182 | 29.8 | % | |||||||||||
| 751 to 800 | 271 | 43,835 | 162 | 16.5 | % | |||||||||||
| 801 to 850 | 41 | 3,740 | 91 | 1.4 | % | |||||||||||
| Not available | 10 | 1,777 | 178 | 0.7 | % | |||||||||||
| Total | 1,455 | $ | 265,132 | $ | 182 | 100.0 | % | |||||||||
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As of December 31, 2016
| Distribution by Borrower Credit Score | ||||||||||||||||
| Credit Score | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| 500 to 550 | 17 | $ | 2,036 | $ | 120 | 0.9 | % | |||||||||
| 551 to 600 | 38 | 6,748 | 178 | 3.1 | % | |||||||||||
| 601 to 650 | 160 | 32,912 | 206 | 15.0 | % | |||||||||||
| 651 to 700 | 344 | 64,923 | 189 | 29.5 | % | |||||||||||
| 701 to 750 | 372 | 67,006 | 180 | 30.5 | % | |||||||||||
| 751 to 800 | 250 | 39,600 | 158 | 18.0 | % | |||||||||||
| 801 to 850 | 40 | 4,124 | 103 | 1.9 | % | |||||||||||
| Not available | 7 | 2,435 | 348 | 1.1 | % | |||||||||||
| Total | 1,228 | $ | 219,784 | $ | 179 | 100.0 | % | |||||||||
The following tables set forth distribution by primary collateral type of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
| Distribution by Primary Collateral Type | ||||||||||||||||
| Collateral Type | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| Commercial Real Estate | 704 | $ | 157,940 | $ | 224 | 59.6 | % | |||||||||
| Machinery and Equipment | 227 | 43,374 | 191 | 16.4 | % | |||||||||||
| Residential Real Estate | 307 | 25,255 | 82 | 9.5 | % | |||||||||||
| Other | 60 | 21,693 | 362 | 8.2 | % | |||||||||||
| Accounts Receivable and Inventory | 103 | 13,359 | 130 | 5.0 | % | |||||||||||
| Liquid Assets | 13 | 645 | 50 | 0.2 | % | |||||||||||
| Furniture and Fixtures | 12 | 1,822 | 152 | 0.7 | % | |||||||||||
| Unsecured | 29 | 1,044 | 36 | 0.4 | % | |||||||||||
| Total | 1,455 | $ | 265,132 | $ | 182 | 100.0 | % | |||||||||
As of December 31, 2016
| Distribution by Primary Collateral Type | ||||||||||||||||
| Collateral Type | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| Commercial Real Estate | 589 | $ | 133,263 | $ | 226 | 60.6 | % | |||||||||
| Machinery and Equipment | 201 | 37,426 | 186 | 17.0 | % | |||||||||||
| Residential Real Estate | 264 | 21,211 | 80 | 9.7 | % | |||||||||||
| Other | 45 | 13,822 | 307 | 6.3 | % | |||||||||||
| Accounts Receivable and Inventory | 80 | 12,075 | 151 | 5.5 | % | |||||||||||
| Liquid Assets | 15 | 667 | 44 | 0.3 | % | |||||||||||
| Unsecured | 23 | 883 | 38 | 0.4 | % | |||||||||||
| Furniture and Fixtures | 11 | 437 | 40 | 0.2 | % | |||||||||||
| Total | 1,228 | $ | 219,784 | $ | 179 | 100.0 | % | |||||||||
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The following tables set forth distribution by days delinquent of the Company’s SBA 7(a) loan portfolio at September 30, 2017 and December 31, 2016, respectively (in thousands):
As of September 30, 2017
| Distribution by Days Delinquent | ||||||||||||||||
| Delinquency Status | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| Current | 1,289 | $ | 226,704 | $ | 176 | 85.5 | % | |||||||||
| 1 to 30 days | 54 | 13,126 | 243 | 5.0 | % | |||||||||||
| 31 to 60 days | 23 | 5,058 | 220 | 1.9 | % | |||||||||||
| 61 to 90 days | — | — | — | — | % | |||||||||||
| 91 days or greater | 89 | 20,244 | 227 | 7.6 | % | |||||||||||
| Total | 1,455 | $ | 265,132 | $ | 182 | 100.0 | % | |||||||||
As of December 31, 2016
| Distribution by Days Delinquent | ||||||||||||||||
| Delinquency Status | # of Loans | Balance | Average Balance | % of Balance | ||||||||||||
| Current | 1,119 | $ | 199,170 | $ | 178 | 90.6 | % | |||||||||
| 1 to 30 days | 35 | 3,680 | 105 | 1.7 | % | |||||||||||
| 31 to 60 days | 7 | 1,570 | 224 | 0.7 | % | |||||||||||
| 61 to 90 days | — | — | — | — | % | |||||||||||
| 91 days or greater | 67 | 15,364 | 229 | 7.0 | % | |||||||||||
| Total | 1,228 | $ | 219,784 | $ | 179 | 100.0 | % | |||||||||
Consolidated Results of Operations
As a BDC and a RIC, we are subject to certain constraints on our operations, including limitations imposed by the 1940 Act and the Code.
Comparison of the three months ended September 30, 2017 and 2016
Investment Income
| (in thousands) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Investment income: | ||||||||||||
| Interest income | $ | 4,551 | $ | 2,675 | $ | 1,876 | ||||||
| Dividend income | 2,551 | 2,933 | (382 | ) | ||||||||
| Servicing income | 1,794 | 1,551 | 243 | |||||||||
| Other income | 705 | 692 | 13 | |||||||||
| Total investment income | $ | 9,601 | $ | 7,851 | $ | 1,750 | ||||||
Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $233,535,000 from $196,481,000 for the three months ended September 30, 2017 and 2016, respectively, combined with an increase in the Prime Rate from 3.50% to 4.25%. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period.
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Dividend Income
| (in thousands) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 1,750 | $ | 1,700 | $ | 50 | ||||||
| Premier Payments LLC | 375 | 450 | (75 | ) | ||||||||
| Newtek Technology Solutions, Inc. | — | 330 | (330 | ) | ||||||||
| International Professional Marketing, Inc. | 200 | — | 200 | |||||||||
| Small Business Lending, LLC | — | 200 | (200 | ) | ||||||||
| banc-serv Partners, LLC | — | 240 | (240 | ) | ||||||||
| CDS Business Services, Inc. | 200 | — | 200 | |||||||||
| The Secure CyberGateway, LLC | 26 | 13 | 13 | |||||||||
| Total dividend income | $ | 2,551 | $ | 2,933 | $ | (382 | ) | |||||
Dividend income decreased $382,000 period over period. During the three months ended September 30, 2017, we earned $200,000 of dividend income from NBCS, as compared to zero during the three months ended September 30, 2016. We also earned $200,000 of dividend income from IPM, a new wholly-owned controlled portfolio company that we invested in on April 6, 2017. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current quarter dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents the NSBF originated servicing portfolio and servicing income earned for the three months ended September 30, 2017 and 2016:
| (in thousands): | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Total NSBF originated servicing portfolio (1) | $ | 1,127,760 | $ | 902,604 | $ | 225,156 | ||||||
| Total servicing income earned | $ | 1,794 | $ | 1,551 | $ | 243 | ||||||
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $791,536,000 and $645,906,000 for the three months ended September 30, 2017 and 2016, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $145,630,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from September 30, 2017 to September 30, 2016.
Other Income
Other income relates primarily to legal, packaging, and late fees earned from the origination of SBA 7(a) loans. The $13,000 increase period over period was related to an increase in legal and packaging fees earned.
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Expenses:
| (in thousands) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Expenses: | ||||||||||||
| Salaries and benefits | $ | 4,776 | $ | 3,665 | $ | 1,111 | ||||||
| Interest | 2,986 | 2,341 | 645 | |||||||||
| Depreciation and amortization | 107 | 84 | 23 | |||||||||
| Professional fees | 605 | 807 | (202 | ) | ||||||||
| Origination and servicing | 1,433 | 1,537 | (104 | ) | ||||||||
| Change in fair value of contingent consideration liabilities | (748 | ) | — | (748 | ) | |||||||
| Other general and administrative costs | 1,634 | 1,542 | 92 | |||||||||
| Total expenses | $ | 10,793 | $ | 9,976 | $ | 817 | ||||||
Salaries and Benefits
Salaries and benefits increased $1,111,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations.
Interest Expense
The following is a summary of interest expense by facility for the three months ended September 30, 2017 and 2016:
| (in thousands) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Notes payable - Securitization trusts | $ | 1,294 | $ | 929 | $ | 365 | ||||||
| Bank notes payable | 341 | 393 | (52 | ) | ||||||||
| Notes due 2022 | 177 | 177 | — | |||||||||
| Notes due 2021 | 792 | 810 | (18 | ) | ||||||||
| Notes payable - related parties | 378 | 19 | 359 | |||||||||
| Other | 4 | 13 | (9 | ) | ||||||||
| Total interest expense | $ | 2,986 | $ | 2,341 | $ | 645 | ||||||
The increase in interest expense period over period is primarily related to interest from the Notes payable - Securitization trusts and Notes payable - related parties. The increase from Notes payable - Securitization trusts was the result of an additional securitization transaction completed in November 2016. The increase from Notes payable - related parties was related to the increase in the average outstanding balance during each period.
Change in Fair Value of Contingent Consideration
A portion of our investment in IPM consisted of contingent consideration based on IPM attaining specific EBITDA levels for 2017 and 2018. During the three months ended September 30, 2017, we reduced the contingent consideration liability by $748,000 based on the probability of IPM attaining specific EBITDA levels for 2017 and 2018.
Net Realized Gains and Net Unrealized Appreciation and Depreciation
Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Net realized gains for the three months ended September 30, 2017 and 2016 were $9,938,000 and $8,716,000, respectively. Realized losses were $87,000 and $777,000 during the three months ended September 30, 2017 and 2016, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.
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Net Realized Gains on SBA Non-Affiliate Investments
| Three Months Ended | ||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||
| (in thousands) | # of Debt Investments | $ Amount | # of Debt Investments | $ Amount | ||||||||||||
| SBA non-affiliate investments originated during the quarter | 122 | $ | 103,635 | 96 | $ | 85,895 | ||||||||||
| SBA guaranteed non-affiliate investments sold during the quarter | 117 | $ | 68,461 | 98 | $ | 66,453 | ||||||||||
| Realized gains recognized on sale of SBA guaranteed non-affiliate investments | — | $ | 10,025 | — | $ | 9,489 | ||||||||||
| Average sale price as a percent of principal balance (1) | — | 112.31 | % | — | 111.84 | % | ||||||||||
(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with the SBA.
Net Unrealized Appreciation (Depreciation) on Investments
| (in thousands) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments | $ | 1,151 | $ | (78 | ) | $ | 1,229 | |||||
| Net unrealized (depreciation) appreciation on SBA unguaranteed non-affiliate investments | (1,023 | ) | 1,418 | (2,441 | ) | |||||||
| Net unrealized (depreciation) appreciation on controlled investments | (500 | ) | 4,638 | (5,138 | ) | |||||||
| Change in benefit (provision) for deferred taxes on unrealized (depreciation) appreciation on investments | 335 | (2,028 | ) | 2,363 | ||||||||
| Net unrealized loss in credits in lieu of cash and notes payable in credits in lieu of cash | — | (1 | ) | 1 | ||||||||
| Total net unrealized (depreciation) appreciation on investments | $ | (37 | ) | $ | 3,949 | $ | (3,986 | ) | ||||
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to guaranteed portions of SBA debt investments made which the Company sells into a secondary market. Unrealized appreciation of SBA guaranteed investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when the loans are sold.
For the three months ended September 30, 2017, net unrealized depreciation on SBA unguaranteed non-affiliate investments consisted of $303,000 and $720,000 of unrealized depreciation on performing and non-performing SBA unguaranteed non-affiliate investments, respectively.
For the three months ended September 30, 2016, net unrealized appreciation on SBA unguaranteed non-affiliate investments consisted of $1,852,000 of unrealized appreciation and $434,000 of unrealized depreciation on performing and non-performing SBA unguaranteed non-affiliate investments, respectively.
The change in unrealized appreciation (depreciation) on performing SBA unguaranteed non-affiliate investments related to an increase in the discount rate from 5.05% to 5.50% period over period.
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Net Unrealized Appreciation (Depreciation) on Controlled Investments
| (in thousands) | Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Change | |||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 2,000 | $ | 5,852 | $ | (3,852 | ) | |||||
| Newtek Technology Solutions, Inc. | (1,500 | ) | (1,305 | ) | (195 | ) | ||||||
| Premier Payments LLC | — | 750 | (750 | ) | ||||||||
| CDS Business Services, Inc. | 2,000 | (700 | ) | 2,700 | ||||||||
| PMTWorks Payroll, LLC | (1,000 | ) | (25 | ) | (975 | ) | ||||||
| banc-serv Partners, LLC | (2,000 | ) | — | (2,000 | ) | |||||||
| Titanium Asset Management LLC | — | 66 | (66 | ) | ||||||||
| Total net unrealized (depreciation) appreciation on controlled investments | $ | (500 | ) | $ | 4,638 | $ | (5,138 | ) | ||||
Unrealized appreciation related to our investment in UPSW was primarily related to a decrease in the weighted average cost of capital during the three months ended September 30, 2017. Unrealized appreciation related to our investment in NBCS was the result of continued growth in EBITDA.
Unrealized depreciation related to our investment in NTS was related to continued weak financial performance. During the three months ended September 30, 2017, we made a $1,000,000 debt investment in NPS. Due to NPS’ continued negative cash flows, we recorded an unrealized loss of $1,000,000 on our debt investment in NPS due to the unlikelihood of collection. During the three months ended September 30, 2017, the Company recorded a $2,000,000 unrealized loss on its investment in BSP to reflect the potential impact to the business and tradename as a result of the FBI investigation discussed in Note 8.
Provision for Deferred Taxes on Unrealized Appreciation of Investments
Certain consolidated subsidiaries are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the three months ended September 30, 2017, we recognized a benefit from deferred taxes of $335,000 related to unrealized depreciation of certain controlled portfolio company investments. During the three months ended September 30, 2016, we recognized a provision for deferred taxes of $2,028,000 related to unrealized appreciation of certain controlled portfolio company investments.
Comparison of the nine months ended September 30, 2017 and 2016
Investment Income
| (in thousands) | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Investment income: | ||||||||||||
| Interest income | $ | 13,689 | $ | 7,655 | $ | 6,034 | ||||||
| Dividend income | 7,326 | 7,719 | (393 | ) | ||||||||
| Servicing income | 5,163 | 4,581 | 582 | |||||||||
| Other income | 2,320 | 1,913 | 407 | |||||||||
| Total investment income | $ | 28,498 | $ | 21,868 | $ | 6,630 | ||||||
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Interest Income
The increase in interest income was attributable to the average outstanding performing portfolio of SBA non-affiliate investments increasing to $220,367,000 from $182,637,000 for the nine months ended September 30, 2017 and 2016, respectively combined with an increase in the Prime Rate from 3.50% to 4.25%. The increase in the average outstanding performing portfolio resulted from the origination of new SBA non-affiliate investments period over period. In addition, during the nine months ended September 30, 2017, we recognized $1,493,000 of interest income related to accrued non-performing interest owed by two borrowers who paid their accrued interest balance in full.
Dividend Income
| (in thousands) | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 5,250 | $ | 4,500 | $ | 750 | ||||||
| Premier Payments LLC | 1,200 | 1,350 | (150 | ) | ||||||||
| Newtek Technology Solutions, Inc. | — | 990 | (990 | ) | ||||||||
| International Professional Marketing, Inc. | 550 | — | 550 | |||||||||
| Small Business Lending, LLC | 100 | 600 | (500 | ) | ||||||||
| banc-serv Partners, LLC | — | 240 | (240 | ) | ||||||||
| CDS Business Services, Inc. | 200 | — | 200 | |||||||||
| The Secure CyberGateway, LLC | 26 | 39 | (13 | ) | ||||||||
| Total dividend income | $ | 7,326 | $ | 7,719 | $ | (393 | ) | |||||
Dividend income decreased $393,000 period over period. During the nine months ended September 30, 2017, we earned $200,000 of dividend income from NBCS and $550,000 of dividend income from IPM, a new wholly-owned controlled portfolio company that we invested in on April 6, 2017. Dividend income earned from UPSW increased $750,000 period over period. These increases were offset by decreases in dividend income earned from NTS, SBL and BSP. Dividend income is dependent on portfolio company earnings. Current period dividend income may not be indicative of future period dividend income.
NSBF Servicing Portfolio and Related Servicing Income
The following table represents NSBF originated servicing portfolio and servicing income earned for the nine months ended September 30, 2017 and 2016:
| (in thousands): | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Total NSBF originated servicing portfolio (1) | $ | 1,127,760 | $ | 902,604 | $ | 225,156 | ||||||
| Total servicing income earned | $ | 5,163 | $ | 4,581 | $ | 582 | ||||||
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $758,700,000 and $613,817,000 for the nine months ended September 30, 2017 and 2016, respectively.
The increase in servicing income was attributable to the increase in total portfolio investments for which we earn servicing income. The portfolio earning servicing income increased $144,883,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from September 30, 2017 to September 30, 2016.
Other Income
Other income relates primarily to legal, packaging, prepayment, and late fees earned from SBA loans. The increase was related to an increase in legal and packaging fees earned as a result of the larger dollar volume of loans funded.
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Expenses:
| (in thousands) | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Expenses: | ||||||||||||
| Salaries and benefits | $ | 14,407 | $ | 10,638 | $ | 3,769 | ||||||
| Interest | 8,133 | 5,804 | 2,329 | |||||||||
| Depreciation and amortization | 292 | 209 | 83 | |||||||||
| Professional fees | 2,054 | 2,519 | (465 | ) | ||||||||
| Origination and servicing | 4,086 | 4,190 | (104 | ) | ||||||||
| Change in fair value of contingent consideration liabilities | (748 | ) | — | (748 | ) | |||||||
| Other general and administrative costs | 5,239 | 6,094 | (855 | ) | ||||||||
| Total expenses | $ | 33,463 | $ | 29,454 | $ | 4,009 | ||||||
Salaries and Benefits
Salaries and benefits increased $3,769,000 primarily due to an increase in headcount at NSBF. The additional headcount relates primarily to employees performing loan processing, loan closing or loan servicing functions as a result of the increase in loan originations. The increase in salaries and benefits was also related to a $678,000 increase in stock-based compensation expense period over period.
Interest Expense
The following is a summary of interest expense by facility for the nine months ended September 30, 2017 and 2016:
| (in thousands) | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Notes payable - Securitization trusts | $ | 4,096 | $ | 2,808 | $ | 1,288 | ||||||
| Bank notes payable | 700 | 840 | (140 | ) | ||||||||
| Notes due 2022 | 530 | 531 | (1 | ) | ||||||||
| Notes due 2021 | 2,372 | 1,389 | 983 | |||||||||
| Notes payable - related parties | 418 | 196 | 222 | |||||||||
| Other | 17 | 40 | (23 | ) | ||||||||
| Total interest expense | $ | 8,133 | $ | 5,804 | $ | 2,329 | ||||||
The increase in interest expense period over period is primarily related to interest from the Notes payable - Securitization trusts, 2021 Notes and Notes payable - related parties. The increase from Notes payable - Securitization trusts was the result of an additional securitization transaction completed in November 2016.
In April 2016, we issued $40,250,000 of 2021 Notes. During the nine months ended September 30, 2017, we incurred $2,372,000 of interest expense. During the nine months ended September 30, 2016, we incurred only a partial period worth of interest expense.
The increase from Notes payable - related parties was related to the increase in the average outstanding balance during each period.
Change in Fair Value of Contingent Consideration
A portion of our investment in IPM consisted of contingent consideration based on IPM attaining specific EBITDA levels for 2017 and 2018. During the nine months ended September 30, 2017, we reduced the contingent consideration liability by $748,000 based on the probability of IPM attaining specific EBITDA levels for 2017 and 2018.
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Other General and Administrative Costs
Other general and administrative costs include managed IT services, marketing, rent and other costs. In April 2016, we moved our headquarters to Lake Success, New York and vacated our space in West Hempstead, New York. During the nine months ended September 30, 2016, we incurred a loss of $1,487,000 related to the remaining liabilities under the lease. No such expense was incurred during the nine months ended September 30, 2017. This was offset by $979,000 of bad debt expense related to amounts owed from a related party.
Net Realized Gains and Net Unrealized Appreciation and Depreciation
Net realized gains or losses on investments are measured by the difference between the net proceeds from the repayment or sale and the cost basis of our investments without regard to unrealized appreciation or depreciation previously recognized and includes investments charged off during the period, net of recoveries. Net realized gains for the nine months ended September 30, 2017 and 2016 were $27,537,000 and $22,536,000, respectively. Realized losses were $131,000 and $763,000 during the nine months ended September 30, 2017 and 2016, respectively. The net change in unrealized appreciation or depreciation on investments primarily reflects the change in portfolio investment fair values during the reporting period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses are realized.
Net Realized Gains on SBA Non-Affiliate Investments
| Nine Months Ended | ||||||||||||||||
| September 30, 2017 | September 30, 2016 | |||||||||||||||
| (in thousands) | # of Debt Investments | $ Amount | # of Debt Investments | $ Amount | ||||||||||||
| SBA non-affiliate investments originated during the period | 324 | $ | 262,804 | 295 | $ | 217,779 | ||||||||||
| SBA guaranteed non-affiliate investments sold during the period | 322 | $ | 189,349 | 287 | $ | 160,171 | ||||||||||
| Realized gains recognized on sale of SBA guaranteed non-affiliate investments | — | $ | 27,668 | — | $ | 23,280 | ||||||||||
| Average sale price as a percent of principal balance (1) | 112.21 | % | 112.09 | % | ||||||||||||
(1) Realized gains greater than 110.00% must be split 50/50 with the SBA in accordance with SBA regulations. The realized gains recognized above reflects amounts net of split with the SBA.
Net Unrealized Appreciation (Depreciation) on Investments
| (in thousands) | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Net unrealized appreciation on SBA guaranteed non-affiliate investments | $ | 1,201 | $ | 690 | $ | 511 | ||||||
| Net unrealized appreciation on SBA unguaranteed non-affiliate investments | 238 | 869 | (631 | ) | ||||||||
| Net unrealized (depreciation) appreciation on controlled investments | (2,243 | ) | 10,362 | (12,605 | ) | |||||||
| Change in benefit (provision) for deferred taxes on unrealized (depreciation) appreciation on investments | 745 | (4,469 | ) | 5,214 | ||||||||
| Net unrealized depreciation on non-control/non-affiliate investments | — | (43 | ) | 43 | ||||||||
| Net unrealized depreciation in credits in lieu of cash and notes payable in credits in lieu of cash | — | (2 | ) | 2 | ||||||||
| Total net unrealized (depreciation) appreciation on investments | $ | (59 | ) | $ | 7,407 | $ | (7,466 | ) | ||||
Net unrealized appreciation (depreciation) on SBA guaranteed non-affiliate investments relates to guaranteed portions of SBA debt investments made which the Company sells into a secondary market. Unrealized appreciation of SBA guaranteed investments represents the fair value adjustment of guaranteed portions of loans which have not yet been sold. Unrealized depreciation represents the reversal of unrealized appreciation when the SBA 7(a) loans are sold.
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Net Unrealized Appreciation (Depreciation) on Controlled Investments
| (in thousands) | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Change | |||||||||
| Universal Processing Services of Wisconsin, LLC | $ | 3,000 | $ | 9,552 | $ | (6,552 | ) | |||||
| Newtek Technology Solutions, Inc. | (4,059 | ) | (1,305 | ) | (2,754 | ) | ||||||
| Premier Payments LLC | — | 3,997 | (3,997 | ) | ||||||||
| CDS Business Services, Inc. | 4,750 | (925 | ) | 5,675 | ||||||||
| PMTWorks Payroll, LLC | (3,045 | ) | (25 | ) | (3,020 | ) | ||||||
| banc-serv Partners, LLC | (2,000 | ) | — | (2,000 | ) | |||||||
| Small Business Lending, LLC | (800 | ) | (1,000 | ) | 200 | |||||||
| The Secure CyberGateway, LLC | — | 2 | (2 | ) | ||||||||
| Titanium Asset Management LLC | (42 | ) | 66 | (108 | ) | |||||||
| Excel WebSolutions, LLC | (47 | ) | — | (47 | ) | |||||||
| Total net unrealized (depreciation) appreciation on controlled investments | $ | (2,243 | ) | $ | 10,362 | $ | (12,605 | ) | ||||
Unrealized appreciation related to our investment in UPSW was related to an increase in EBITDA projections combined with a decrease in the discount rate during the nine months ended September 30, 2017. Unrealized appreciation related to our investment in NBCS was related to continued growth in its SBA 504 lending program and growth in its accounts receivable and inventory financing programs.
Unrealized depreciation related to our investment in NTS was related to weaker than projected financial performance. During the nine months ended September 30, 2017, we made an additional $1,000,000 debt investment in NPS. Due to NPS’ continued negative cash flows, we recorded an unrealized loss of $3,045,000 on our total investment in NPS. During the nine months ended September 30, 2017, the Company recorded a $2,000,000 unrealized loss on its investment in BSP to reflect the potential impact to the business and tradename as a result of the FBI investigation discussed in Note 8.
Provision for Deferred Taxes on Unrealized Appreciation of Investments
Certain consolidated subsidiaries of ours are subject to U.S. federal and state income taxes. These taxable subsidiaries are not consolidated with the Company for income tax purposes, but are consolidated for GAAP purposes, and may generate income tax liabilities or assets from temporary differences in the recognition of items for financial reporting and income tax purposes at the subsidiaries. During the nine months ended September 30, 2017, we recognized a benefit from deferred taxes of $745,000 related to unrealized depreciation of certain controlled portfolio company investments. During the nine months ended September 30, 2016, we recognized a provision for deferred taxes of $4,469,000 related to unrealized appreciation of certain controlled portfolio company investments.
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Liquidity and Capital Resources
Overview
Our liquidity and capital resources are derived from our Capital One Facility, Notes payable - related parties, 2021 Notes, 2022 Notes, securitization transactions and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our borrowings and the proceeds from the turnover of our portfolio and from public and private offerings of securities to finance our investment objectives. We may raise additional equity or debt capital through both registered offerings off a shelf registration, including “At-The-Market”, or ATM, and private offerings of securities.
Public Offerings
ATM Program
The ATM Equity Distribution Agreement provides that we may offer and sell up to 2,900,000 shares of common stock from time to time through the Placement Agents. During the nine months ended September 30, 2017, we sold 455,000 shares of our common stock at a weighted average price of $17.19 per share. Proceeds, net of offering costs and expenses were $7,666,000. The Company may offer up to an additional 2,445,000 shares of common stock under the ATM Equity Distribution Agreement as of September 30, 2017.
We intend to use the net proceeds for funding investments in debt and equity securities in accordance with our investment objective and strategies. Additionally, we may use net proceeds for general corporate purposes, which include funding investments, repaying any outstanding indebtedness, acquisitions and other general corporate purposes.
Equity Offerings
In January 2017 we completed a public offering of 2,250,000 shares of our common stock at a public offering price of $15.25 per share and an additional 337,500 shares of common stock at a public offering price of $15.25 per share pursuant to the underwriter's full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $37,042,000.
Debt Offerings
In April 2016, the Company and the Trustee, entered into the Second Supplemental Indenture to the Base Indenture between the Company and the Trustee, relating to the Company’s issuance, offer and sale of $35,000,000 aggregate principal amount of 7.0% Notes due 2021. The Company granted an overallotment option of up to $5,250,000 in aggregate principal amount of the 2021 Notes. The sale of the Notes generated proceeds of approximately $33,750,000, net of underwriter's fees and expenses. In May 2016, the underwriters exercised their option to purchase $5,250,000 in aggregate principal amount of notes for an additional $5,066,000 in net proceeds. The 2021 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2021 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries.
The 2021 Notes will mature on March 31, 2021 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after April 22, 2017, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The 2021 Notes bear interest at a rate of 7.0% per year payable quarterly on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2016, and trade on the Nasdaq Global Market under the trading symbol “NEWTL.”
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The Base Indenture, as supplemented by the Second Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with (regardless of whether it is subject to) the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act as in effect immediately prior to the issuance of the 2021 Notes, and to provide financial information to the holders of the 2021 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the First Supplemental Indenture. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2021 Notes may declare such 2021 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At September 30, 2017, the Company was in compliance with all covenants related to the 2021 Notes.
In September 2015, the Company and the Trustee entered into the Base Indenture and the First Supplemental Indenture relating to the Company's issuance, offer, and sale of $8,324,000, including the underwriter's partial exercise of their over-allotment option, in aggregate principal amount of the 7.5% Notes due 2022. The 2022 Notes are the Company’s direct unsecured obligations and rank: (i) pari passu with the Company’s other outstanding and future unsecured indebtedness; (ii) senior to any of the Company’s future indebtedness that expressly provides it is subordinated to the 2022 Notes; (iii) effectively subordinated to all the Company’s existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness; and (iv) structurally subordinated to all existing and future indebtedness and other obligations of any of the Company’s subsidiaries. The 2022 Notes will mature on September 30, 2022 and may be redeemed in whole or in part at the Company’s option at any time or from time to time on or after September 23, 2018, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. Proceeds net of offering costs and expenses were $7,747,000.
The Base Indenture, as supplemented by the First Supplemental Indenture, contains certain covenants including covenants requiring the Company to comply with (regardless of whether it is subject to) the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, to comply with the restrictions on dividends, distributions and purchase of capital stock set forth in Section 18(a)(1)(B) of the 1940 Act as modified by Section 61(a)(1) of the 1940 Act, and to provide financial information to the holders of the 2022 Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Exchange Act. These covenants are subject to important limitations and exceptions that are described in the Base Indenture, as supplemented by the Second Supplemental Indenture. The Base Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding 2022 Notes may declare such 2022 Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period. At September 30, 2017, the Company is in compliance with all covenants related to the 2022 Notes.
Capital One Facilities
In May 2017, NSBF amended its Capital One facility to increase the facility from $50,000,000 to $100,000,000 and provided a reduction in interest rates. The interest rate on the portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, is set at Prime minus 0.25% (previously Prime plus 1.00%), and there is a quarterly facility fee equal to 0.25% on the unused portion of the revolving credit calculated as of the end of each calendar quarter. The interest rate on the portion of the facility, collateralized by the non-guaranteed portion of SBA 7(a) loans, is set at Prime plus 0.75% (previously Prime plus 1.875%), and there is a quarterly facility fee equal to 0.25% on the unused portion of the revolving credit calculated as of the end of each calendar quarter. The facility provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans NSBF originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans NSBF originates. In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2017 to May 11, 2020 and extended the maturity date of the facility to May 11, 2022.
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In June 2015, NSBF amended the existing facility to eliminate the fixed charge coverage ratio in exchange for a debt service ratio, new EBITDA minimums, the elimination of restrictions on the our ability to pay dividends to shareholders, as well as the release of the guarantees of our former subsidiaries (now treated as portfolio companies).
At September 30, 2017, we had $29,220,000 and $36,926,000 outstanding under the unguaranteed and guaranteed lines of credit, respectively. At September 30, 2017, we were in full compliance with all applicable loan covenants.
Notes Payable - Related Parties
In June 2015, the Company entered into the Related Party RLOC. Maximum borrowings under the Related Party RLOC were $38,000,000.
In June 2017, the Related Party RLOC was amended to increase maximum borrowings to $50,000,000. The outstanding balance bears interest at a rate equal to (a) LIBOR (with a floor of 0.50%) plus (b) 6% or at a rate equal to (y) the greater of the Prime Rate or 3.5% plus (z) 5%. At September 30, 2017, the Related Party RLOC bears interest at a rate of 7.31%. The Related Party RLOC has a maturity date of June 21, 2021. Outstanding borrowings at September 30, 2017 were $20,541,000.
Securitization Transactions
Since 2010, NSBF has engaged in securitizations of the unguaranteed portions of its SBA 7(a) loans. In the securitization, it uses a special purpose entity (the “Trust”) which is considered a variable interest entity. Applying the consolidation requirements for VIEs under the accounting rules in ASC Topic 860, Transfers and Servicing, and ASC Topic 810, Consolidation, which became effective January 1, 2010, the Company determined that as the primary beneficiary of the securitization vehicle, based on its power to direct activities through its role as servicer for the Trust and its obligation to absorb losses and right to receive benefits, it needed to consolidate the Trusts. NSBF therefore consolidated the entity using the carrying amounts of the Trust’s assets and liabilities. NSBF reflects the assets in SBA Unguaranteed Non-Affiliate Investments and reflects the associated financing in Notes Payable - Securitization Trusts.
In November 2016, NSBF completed its seventh securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the 2016-1 Trust. The 2016-1 Trust in turn issued securitization notes for the par amount of $53,444,000, consisting of $43,632,000 Class A notes and $9,812,000 of Class B notes, against the assets in a private placement. The Class A and Class B notes received an “A” and “BBB+” rating by S&P, respectively, and the final maturity date of the notes is February 2042.
Share Repurchase Plan
On November 21, 2016 the Company announced that its Board approved a new share repurchase program under which the Company may repurchase up to 200,000 of the Company’s outstanding common shares on the open market. This program terminated on May 21, 2017.
On May 11, 2016, the Company announced that its Board approved a share repurchase program under which the Company could repurchase up to 150,000 of the Company’s outstanding common shares on the open market. This program terminated on November 11, 2016.
During the nine months ended September 30, 2017, the Company repurchased and retired 70,000 common shares in open market transactions for approximately $866,000 as detailed in the table below. This program terminated on June 3, 2016.
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| Purchase date | Number of Shares Purchased | Price per Share | Total | |||||||||
| March 10, 2016 | 10 | $ | 12.34 | $ | 123 | |||||||
| March 18, 2016 | 20 | 12.45 | 249 | |||||||||
| March 18, 2016 | 30 | 12.48 | 375 | |||||||||
| March 23, 2016 | 10 | 11.88 | 119 | |||||||||
| Total | 70 | $ | 866 | |||||||||
Note Repurchase Plan
The Company had a program which allowed it to repurchase up to 10%, or $832,400 in aggregate principal amount, of its 7.5% Notes due 2022 and up to 10%, or $4,025,000 in aggregate principal amount, of its 7.0% Notes due 2021 through open market purchases, including block purchases, in such manner as will comply with the provisions of the 1940 Act and the Exchange Act. The program terminated on May 21, 2017. The Company did not make any repurchases under this program during the nine months ended September 30, 2017.
Cash Flows and Liquidity
As of September 30, 2017, the Company’s unused sources of liquidity consisted of $20,966,000 available through the Capital One facility; $13,159,000 available through notes payable with related parties; $3,915,000 in unrestricted cash and $9,000 in money market funds.
Restricted cash of $26,602,000 as of September 30, 2017 is primarily held in NSBF. The majority, or $25,851,000 of restricted cash includes reserves in the event payments are insufficient to cover interest and/or principal with respect to securitizations, loan principal and interest collected which are due to loan participants and a reserve established as part of voluntary agreement with SBA.
The Company generated and used cash as follows:
| (in thousands) | Nine months ended September 30, 2017 | Nine months ended September 30, 2016 | ||||||
| Net cash used in operating activities | $ | (76,139 | ) | $ | (23,048 | ) | ||
| Net cash used in investing activities | (345 | ) | (294 | ) | ||||
| Net cash provided by financing activities | 78,348 | 21,752 | ||||||
| Net increase (decrease) in cash and cash equivalents | 1,864 | (1,590 | ) | |||||
| Cash and cash equivalents, beginning of period | 2,051 | 4,308 | ||||||
| Cash and cash equivalents, end of period | $ | 3,915 | $ | 2,718 | ||||
During the nine months ended September 30, 2017, operating activities used cash of $76,139,000, consisting primarily of (i) an increase in broker receivables which arise from the guaranteed portions of SBA 7(a) loans that were traded but had not settled before period end and represent the amount of cash due from the purchasing broker; the amount varies depending on loan origination volume and timing of sales at period end, (ii) $262,804,000 of SBA 7(a) loan investments (iii) $15,703,000 of advances to NBCS under a revolving line of credit (iv) $9,952,000 of cash paid in connection with our investment in IPM, (v) a $3,821,000 purchase of an SBA 7(a) loan from the SBA, (vi) a $3,255,000 non-control/non-affiliate investment and (vii) an increase in restricted cash of $4,585,000. These decreases were offset by (i) $217,016,000 of proceeds from the sale of SBA 7(a) investments and (ii) $35,914,000 of principal payments received consisting of $20,327,000 from SBA non-affiliate investments, $3,255,000 from non-control/non-affiliate investments and $12,332,000 from controlled investments, including $10,497,000 from NBCS.
Net cash provided by financing activities was $78,348,000 consisting primarily of (i) net proceeds $37,042,000 from the sale of 2,857,500 shares of common stock, (ii) net proceeds of $7,666,000 from the sale of 455,000 shares of common stock under the ATM Equity Distribution Agreement, (iii) net borrowings of $61,046,000 from our Capital One lines of credit and (iv) $19,141,000 of proceeds under the related party revolving line of credit. These increases were offset by (i) $20,836,000 of dividend payments and (ii) $23,414,000 of principal payments related to securitizations.
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Contractual Obligations
The following chart represents the Company’s significant obligations and commitments as of September 30, 2017:
| (in thousands) | Payments due by period | |||||||||||||||||||
| Contractual Obligations | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | |||||||||||||||
| Bank notes payable | $ | 66,146 | $ | 36,926 | $ | 29,220 | $ | — | $ | — | ||||||||||
| Securitization notes payable (1) | 97,607 | — | — | — | 97,607 | |||||||||||||||
| Notes due 2022 (1) | 8,324 | — | — | 8,324 | — | |||||||||||||||
| Notes due 2021 (1) | 40,250 | — | — | 40,250 | — | |||||||||||||||
| Notes payable - related parties | 20,541 | — | — | 20,541 | — | |||||||||||||||
| Employment agreements | 600 | 300 | 300 | — | — | |||||||||||||||
| Operating leases (2) | 12,565 | 502 | 3,153 | 2,298 | 6,612 | |||||||||||||||
| Totals | $ | 246,033 | $ | 37,728 | $ | 32,673 | $ | 71,413 | $ | 104,219 | ||||||||||
(1) Amounts represent principal only and are not shown net of unamortized debt issuance costs. See Note 7.
(2) Minimum payments have not been reduced by minimum sublease rentals of $550,000 due in the future under non-cancelable subleases.
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Critical Accounting Policies and Estimates
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.
Fair Value Measurements
We value investments for which market quotations are readily available at their market quotations. However, a readily available market value is not expected to exist for many of the investments in our portfolio, and we value these portfolio investments at fair value as determined in good faith by our Board under our valuation policy and process. We may seek pricing information with respect to certain of our investments from pricing services or brokers or dealers in order to value such investments. We also employ independent third party valuation firms for certain of our investments for which there is not a readily available market value.
The application of our valuation methods may include comparisons of the portfolio companies to peer companies that are public, the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings, discounted cash flow, the markets in which the portfolio company does business and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, we will consider the pricing indicated by the external event to corroborate the private equity valuation. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from values that may ultimately be received or settled.
Our Board is ultimately and solely responsible for determining, in good faith, the fair value of investments that are not publicly traded, whose market prices are not readily available on a quarterly basis or any other situation where portfolio investments require a fair value determination.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels for disclosure purposes. The Company carries all investments at fair value. Additionally, the Company carries its credits in lieu of cash, notes payable in credits in lieu of cash, and servicing assets at fair value. The fair value hierarchy gives the highest priority (Level 1) to quoted prices in active markets for identical assets or liabilities and gives the lowest priority to unobservable inputs (Level 3). An asset or liability’s classification within the fair value hierarchy is based on the lowest level of the significant input to its valuation. The levels of the fair value hierarchy are as follows:
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| Level 1 | Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. | |
| Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale. | |
| Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. | |
Valuation of Investments
Level 1 investments are valued using quoted market prices. Level 2 investments are valued using market consensus prices that are corroborated by observable market data and quoted market prices for similar assets and liabilities. Level 3 investments are valued at fair value as determined in good faith by the Board, based on input of management, the audit committee and independent valuation firms that have been engaged at the direction of the Board to assist in the valuation of certain portfolio investments without a readily available market quotation at least once during a trailing twelve-month period under a valuation policy and a consistently applied valuation process.
When determining fair value of Level 3 debt and equity investments, the Company may take into account the following factors, where relevant: the enterprise value of a portfolio company, the nature and realizable value of any collateral, the portfolio company’s ability to make payments and its earnings and discounted cash flows, the markets in which the portfolio company does business, comparisons to publicly traded securities, and changes in the interest rate environment and the credit markets generally that may affect the price at which similar investments may be made and other relevant factors. The primary method for determining enterprise value uses a multiple analysis whereby appropriate multiples are applied to the portfolio company’s EBITDA or revenue. The enterprise value analysis is performed to determine the value of equity investments and to determine if debt investments are credit impaired. If debt investments are credit impaired, the Company will use the enterprise value analysis or a liquidation basis analysis to determine fair value. For debt investments that are not determined to be credit impaired, the Company uses a market interest rate yield analysis to determine fair value.
In addition, for certain debt investments, the Company may base its valuation on quotes provided by an independent third party broker.
Due to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a ready market existed for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If the Company were required to liquidate a portfolio investment in a forced or liquidation sale, the Company may realize significantly less than the value at which such investment had previously been recorded.
The Company’s investments are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments are traded.
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Income Recognition
Interest on loan investments is accrued and included in income based on contractual rates applied to principal amounts outstanding. Interest income is determined using a method that results in a level rate of return on principal amounts outstanding. When a loan becomes 90 days or more past due, or if we otherwise do not expect to receive interest and principal repayments, the loan is placed on non-accrual status and the recognition of interest income is discontinued. Interest payments received on loans that are on non-accrual status are treated as reductions of principal until the principal is repaid.
We receive servicing income related to the guaranteed portions of SBA loan investments which we sell into the secondary market. These recurring fees are earned daily and recorded when earned. Servicing income is earned for the full term of the loan or until the loan is repaid.
We receive a variety of fees from borrowers in the ordinary course of conducting our business, including packaging fees, legal fees, late fees and prepayment fees. All other income is recorded when earned.
Dividend income is recorded at the time dividends are declared. Distributions of earnings from a portfolio companies are evaluated to determine if the distribution is income, return of capital or realized gain.
Income Taxes
Deferred tax assets and liabilities are computed based upon the differences between the financial statement and income tax basis of assets and liabilities using the enacted tax rates in effect for the year in which those temporary differences are expected to be realized or settled. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized.
The Company’s U.S. federal and state income tax returns prior to fiscal year 2013 are generally closed, and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.
The Company has elected to be treated as a RIC beginning with the 2015 tax year under the Code and operates in a manner so as to continue to qualify for the tax treatment applicable to RICs. The RIC tax return includes Newtek Business Services Corp. and NSBF, a single member LLC disregarded for tax purposes. None of the Company’s other subsidiaries are included in the RIC return. The Company will evaluate and record any deferred tax assets and liabilities of the subsidiaries that are not part of the RIC. In order to maintain its RIC tax treatment, among other things, the Company is required to meet certain source of income and asset diversification requirements and timely distribute to its shareholders at least 90% of investment company taxable income, as defined by the Code, for each tax year. The Company intends to make the requisite distributions to its shareholders, which will generally relieve the Company from U.S. federal income taxes with respect to all income distributed to its shareholders as dividends.
Depending on the level of taxable income earned in a tax year, the Company may choose to retain taxable income in excess of current year dividend distributions, and would distribute such taxable income in the next tax year. The Company would then pay a 4% excise tax on such income, as required. To the extent that the Company determines that its estimated current year annual taxable income, determined on a calendar year basis, could exceed estimated current calendar year dividend distributions, the Company accrues excise tax, if any, on estimated excess taxable income as taxable income is earned. For the three and nine months ended September 30, 2017 and 2016, no U.S. federal excise taxes were due.
The Company’s Taxable Subsidiaries accrue income taxes payable based on the applicable corporate rates on the unrealized gains generated by the investments held by the Taxable Subsidiaries. Such deferred tax liabilities were $5,240,000 and $5,983,000 at September 30, 2017 and December 31, 2016, respectively and are recorded as deferred tax liabilities on the condensed consolidated statements of assets and liabilities. The change in deferred tax liabilities is included as a component of net realized and unrealized gains in the condensed consolidated statements of operations.
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New Accounting Standards
In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force),” which requires that the statement of cash flow explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods. Early adoption is permitted. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.
In February 2016, the FASB issued ASU 2016-02, “Leases,” which amends various aspects of existing accounting guidance for leases, including the recognition of a right of use asset and a lease liability for leases with a duration of greater than one year. The ASU is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those periods. Early adoption is permitted. The Company has not completed its review of the new guidance; however, the Company anticipates that upon adoption of the standard it will recognize additional assets and corresponding liabilities related to leases on its consolidated statements of assets and liabilities.
In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which, among other things, requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the ASU changes the disclosure requirements for financial instruments. This ASU is effective for annual reporting periods beginning after December 15, 2017, and interim periods within those periods, and early adoption is permitted for certain provisions. The Company does not believe this ASU will have a material impact on its consolidated financial statements and disclosures.
Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of September 30, 2017.
Recent Developments
Portfolio Company Developments
On October 13, 2017, the Company announced that its portfolio company, BSP, was served with a search warrant by the Federal Bureau of Investigation on October 12, 2017 at BSP’s offices in Westfield, Indiana. The Company closed on its $5,400,000 investment in BSP in June 2016. The Company is monitoring the situation and is cooperating fully with the authorities. While the outcome of this situation cannot at this time be predicted with certainty, the Company does not expect that the matter will materially affect the Company’s financial condition or results of operations.
On October 24, 2017, the Company invested in 100% of the membership interests of a new wholly-owned, controlled portfolio company, United Capital Source, LLC (“UCS”), which is a lead generator for commercial financing companies. Total consideration paid by the Company was $3,050,000 and consisted of $500,000 in restricted shares of Newtek common stock and $1,950,000 in cash, with the $600,000 balance to be paid in cash and Newtek common stock, in two equal installments in 2018 and 2019 based on UCS attaining specific EBITDA targets for 2019 and 2020.
Common Stock
From October 1, 2017 through November 6, 2017 the Company sold 245,746 shares of its common stock at a weighted average price of $17.54 per share under the ATM Equity Distribution Agreement. Proceeds, net of offering costs and expenses were $4,223,000. As of November 6, 2017, there were 2,199,000 shares of common stock available for sale under the ATM Equity Distribution Agreement.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We consider the principal types of risk in our investing activities to be fluctuations in interest rates and loan portfolio valuations and the availability of the secondary market for our SBA loans. Risk management systems and procedures are designed to identify and analyze our risks, to set appropriate policies and limits and to continually monitor these risks and limits by means of reliable administrative and information systems and other policies and programs.
NSBF primarily lends at an interest rate of prime, which resets on a quarterly basis, plus a fixed margin. The Capital One revolver lines as well as the securitization notes are on a prime plus a fixed factor basis. As a result, the Company believes it has matched its cost of funds to its interest income in its financing activities. However, because of the differential between the amount lent and the smaller amount financed a significant change in market interest rates will have a material effect on our income. In periods of sharply rising interest rates, our cost of funds will increase at a slower rate than the interest income earned on the loans we have made; this should improve our net investment income, holding all other factors constant. However, a reduction in interest rates will result in the Company experiencing a reduction in investment income; that is, its interest income will decline more quickly than interest expense resulting in a net reduction of benefit to investment income.
NSBF depends on the availability of secondary market purchasers for the guaranteed portions of SBA loans and the premium received on such sales to support its lending operations. At this time the secondary market for the guaranteed portions of SBA loans is robust but during the 2008 and 2009 financial crisis the Company had difficulty selling its loans for a premium; although not expected at this time, if such conditions did recur NSBF would most likely cease making new loans and could experience a substantial reduction in profitability.
We do not have significant exposure to changing interest rates on invested cash (includes cash and cash equivalents, restricted cash and money market funds) which was approximately $30,527,000 at September 30, 2017. We do not purchase or hold derivative financial instruments for trading purposes. All of our transactions are conducted in U.S. dollars and we do not have any foreign currency or foreign exchange risk. We do not trade commodities or have any commodity price risk.
We believe that we have placed our demand deposits, cash investments and their equivalents with high credit-quality financial institutions. Invested cash is held almost exclusively at financial institutions of high credit quality. The Company invests cash not held in interest free checking accounts or bank money market accounts mainly in U.S. Treasury only money market instruments or funds and other investment-grade securities. As of September 30, 2017, cash deposits in excess of insured amounts totaled approximately $11,068,000.
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ITEM 4. CONTROLS AND PROCEDURES.
As of the period covered by this report, we, including our chief executive officer and chief accounting officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act). Based on our evaluation, our management, including the chief executive officer and chief accounting officer, concluded that our disclosure controls and procedures were effective in timely alerting management, including the chief executive officer and chief accounting officer, of material information about us required to be included in our periodic SEC filings. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, are based upon certain assumptions about the likelihood of future events and can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. There has not been any change in our internal controls over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.
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In the ordinary course of business, the Company and its wholly-owned portfolio companies may from time to time be party to lawsuits and claims. The Company evaluates such matters on a case by case basis and its policy is to contest vigorously any claims it believes are without compelling merit. The Company is not currently involved in any litigation matters.
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results. There have been no material changes from the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2016.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
In connection with the investment in IPM, the Company issued 60,490 restricted common shares in a private transaction as a portion of the consideration, as discussed herein.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. MINE SAFETY DISCLOSURES.
None.
None.
| Number | Description | |
| 11 | Computation of Per Share Earnings (included in the notes to the condensed consolidated financial statements in this report). | |
| 31.1 | Certification by Principal Executive Officer required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, filed herewith. | |
| 31.2 | Certification by Principal Financial Officer required by Rule 13a-14 under the Securities Exchange Act of 1934, as amended, filed herewith. | |
| 32.1 | Certification by Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith. |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NEWTEK BUSINESS SERVICES CORP. | ||
| Date: November 8, 2017 | By: | /S/ Barry Sloane |
| Barry Sloane | ||
|
Chairman and Chief Executive Officer (Principal Executive Officer) | ||
| Date: November 8, 2017 | By: | /S/ Jennifer Eddelson |
| Jennifer Eddelson | ||
|
Chief Accounting Officer (Principal Financial Officer and Principal Accounting Officer) | ||
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