XML 35 R16.htm IDEA: XBRL DOCUMENT

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

NOTE 8 - COMMITMENTS AND CONTINGENCIES

Commitments: In the normal course of business, the Company is party to financial instruments with off-balance-sheet risk to meet the financing needs of its borrowers. These financial instruments include commitments to extend credit and involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statement of assets and liabilities. The Company attempts to limit its credit risk by conducting extensive due diligence and obtaining collateral where appropriate.

As of December 31, 2023 and December 31, 2022, the balance of unfunded commitments to extend credit was $21,440 and $56,190, respectively. Commitments to extend credit consist principally of the unused portions of commitments that obligate the Company to extend credit, such as revolving credit arrangements or similar transactions. These commitments are often subject to financial or non-financial milestones and other conditions to borrow that must be achieved before the commitment can be drawn. In addition, the commitments generally have fixed expiration dates or other termination clauses. Since commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.

The following table summarizes the Company’s unfunded commitments as of December 31, 2023 and December 31, 2022:


Unfunded Commitments⁽¹⁾ ($ in thousands)	As of December 31, 2023		As of December 31, 2022
Revolving Loan Commitments:
ABB/Con-cise Optical Group LLC (d/b/a ABB Optical Group, LLC)	$	—	$	113
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)		447		—
Branford Filtration, LLC (d/b/a Clean Solutions Group)		387		—
Bridgepoint Healthcare, LLC		1,588		1,588
Claridge Products and Equipment, LLC		351		204
Coastal Television Broadcasting Group LLC		309		309
EducationDynamics, LLC		1,199		1,199
Gulf Winds International Acquisition LLC (d/b/a Gulf Winds International, Inc.)		647		647
HC Salon Holdings, Inc. (d/b/a Hair Cuttery)		700		700
Industrial Specialty Services USA LLC		—		508
Inspired Beauty Brands, Inc.		—		265
Leviathan Intermediate Holdco, LLC		570		494
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)		572		—
Motivational Marketing, LLC (d/b/a Motivational Fulfillment)		709		1,024
MSI Information Services, Inc.		225		1,050
M&M OpCo. LLC (d/b/a Escalent, Inc.)		238		—
Naviga Inc. (f/k/a Newscycle Solutions, Inc.)		30		—
PFB Holdco, Inc. (d/b/a PFB Corporation)⁽¹⁾		—		899
PFB Holdco, Inc. (d/b/a PFB Corporation)		—		296
PG Dental New Jersey Parent, LLC		—		352
Power Service Group CR Acquisition Inc. (d/b/a Power Plant Services)		—		2,299
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)		610		603
Sleep OpCo LLC (d/b/a Brooklyn Bedding LLC)		2,646		2,646
Telestream Holdings Corporation		87		397
The Kyjen Company, LLC (d/b/a Outward Hound)		798		—
Total unfunded revolving loan commitments		12,113		15,593

Delayed Draw Loan Commitments:
Banner Acquisition Holdings, LLC (d/b/a Banner Industries, Inc.)		140		—
Barrett Purchaser LLC (d/b/a SIB Development and Consulting, Inc.)		895		—
Bridgepoint Healthcare, LLC		—		794
Camp Facility Services Holdings, LLC (d/b/a Camp Construction Services, Inc.)		—		4,063
EducationDynamics, LLC		—		1,709
HRG Management, LLC (d/b/a HomeRiver Group, LLC)		—		2,167
JZ Capital Partners Ltd.		—		5,714
Midwest Texas Tea CA, LLC (d/b/a US Petroleum Partners, LLC)		648		—
Power Service Group CR Acquisition Inc. (d/b/a Power Plant Services)		—		2,090
Salon Republic Holdings, LLC (d/b/a Salon Republic, LLC)		1,407		2,097
Solar Holdings Bidco Limited⁽¹⁾⁽²⁾		—		4,008
StoicLane MidCo, LLC (d/b/a StoicLane Inc.)		6,237		8,217
Telestream Holdings Corporation		—		346
True Blue Car Wash, LLC		—		59
US Methanol Midco LLC (d/b/a US Methanol LLC)		—		9,333
Total unfunded delayed draw loan commitments		9,327		40,597
Total Unfunded Commitments	$	21,440	$	56,190

(1)Unfunded commitments denominated in non-USD currencies have been converted to USD using the exchange rate as of the applicable reporting date.

(2)Principal amount is non-USD denominated and is based in British pounds. At the option of the borrower, amounts borrowed under the delayed draw term loan commitment can be US dollars, Canadian dollars or British pounds.

As of December 31, 2023, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $23,000 and $92,000, respectively, of which $1,896 and $7,584 were unfunded, respectively. As of December 31, 2022, the Company had commitments to fund equity interests and subordinated notes in STRS JV of $20,000 and $90,000, respectively, both of which were fully funded. The capital commitments cannot be drawn without an affirmative vote by both the Company’s and STRS Ohio’s representatives on STRS JV’s board of managers.

Indemnification: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not occurred. The Company expects the risk of any future obligation under these indemnifications to be remote.

Legal Proceedings: In the normal course of business, the Company, the investment adviser and the administrator may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company does not believe any such disposition will have a material adverse effect on the Company’s consolidated financial statements.