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Watchlist
Account
NewtekOne
NEWT
#7904
Rank
$0.31 B
Marketcap
๐บ๐ธ
United States
Country
$10.95
Share price
3.60%
Change (1 day)
-5.19%
Change (1 year)
๐ฐ Investment
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Annual Reports (10-K)
NewtekOne
Quarterly Reports (10-Q)
Submitted on 2017-05-08
NewtekOne - 10-Q quarterly report FY
Text size:
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
March 31, 2017
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____to_____
Commission file number: 814-01035
NEWTEK BUSINESS SERVICES CORP.
(Exact name of registrant as specified in its charter)
Maryland
46-3755188
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
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, smaller reporting company, or an emerging growth company company (all as defined in Rule 12b-2 of the Exchange Act).
Large accelerated filer
o
Accelerated filer
x
Non-accelerated filer
o
Smaller reporting company
o
Emerging growth company
o
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.
o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
o
No
x
As of
May 8, 2017
there were 17,292,330 shares issued and outstanding of the registrant’s Common Stock, par value $0.02 per share.
Table of Contents
TABLE OF CONTENTS
Page
PART I - FINANCIAL INFORMATION
Item
1.
Financial Statements:
Condensed Consolidated Statements of Assets and Liabilities as of March 31, 2017 (Unaudited) and December 31, 2016
1
Condensed Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2017 and 2016
2
Condensed Consolidated Statement of Changes in Net Assets (Unaudited) for the three months ended March 31, 2017
3
Condensed Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2017 and 2016
4
Consolidated Schedule of Investments as of March 31, 2017 (Unaudited) and December 31, 2016
6
Notes to Condensed Consolidated Financial Statements (Unaudited)
146
Item
2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
166
Item
3.
Quantitative and Qualitative Disclosures About Market Risk
184
Item
4.
Controls and Procedures
185
PART II - OTHER INFORMATION
Item 1.
Legal Proceedings
186
Item 1A.
Risk Factors
186
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
186
Item 3.
Defaults Upon Senior Securities
186
Item 4.
Mine Safety Disclosures
186
Item 5.
Other Information
186
Item
6.
Exhibits
186
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In Thousands, except for Per Share Data)
March 31, 2017
December 31, 2016
ASSETS
(Unaudited)
(Note 1)
Investments, at fair value
SBA unguaranteed non-affiliate investments (cost of $228,905 and $219,784, respectively; includes $186,368 and $197,927, respectively, related to securitization trusts)
$
219,582
$
211,471
SBA guaranteed non-affiliate investments (cost of $10,734 and $10,262, respectively)
12,097
11,512
Controlled investments (cost of $46,024 and $41,001, respectively)
127,255
121,302
Non-control/non-affiliate investments (cost of $- and $904, respectively)
—
904
Investments in money market funds (cost of $35 and $35, respectively)
35
35
Total investments at fair value
358,969
345,224
Cash and cash equivalents
5,995
2,051
Restricted cash
28,963
20,845
Broker receivable
17,852
2,402
Due from related parties
4,384
3,748
Servicing assets, at fair value
17,096
16,246
Other assets
10,052
10,934
Total assets
$
443,311
$
401,450
LIABILITIES AND NET ASSETS
Liabilities:
Bank notes payable
$
18,300
$
5,100
Notes due 2022 (Note 7)
7,874
7,853
Notes due 2021 (Note 7)
38,853
38,767
Notes payable - Securitization trusts (Note 7)
109,484
118,122
Notes payable - related parties
—
1,400
Due to related parties
934
1,227
Deferred tax liabilities
6,551
5,983
Accounts payable, accrued expenses and other liabilities
14,951
13,904
Total liabilities
196,947
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, 17,220 and 14,624 issued and outstanding, respectively)
344
293
Additional paid-in capital
225,985
188,472
(Distributions in excess of)/undistributed net investment income
(198
)
8,092
Net unrealized appreciation, net of deferred taxes
12,320
13,008
Net realized gains/(losses)
7,913
(771
)
Total net assets
246,364
209,094
Total liabilities and net assets
$
443,311
$
401,450
Net asset value per common share
$
14.31
$
14.30
See accompanying notes to unaudited condensed consolidated financial statements.
1
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except for Per Share Data)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Investment income:
From non-affiliate investments:
Interest income
$
4,235
$
2,451
Servicing income
1,646
1,371
Other income
665
597
Total investment income from non-affiliate investments
6,546
4,419
From controlled investments:
Interest income
147
82
Dividend income
2,300
2,293
Total investment income from controlled investments
2,447
2,375
Total investment income
8,993
6,794
Expenses:
Salaries and benefits
4,651
3,344
Interest
2,530
1,488
Depreciation and amortization
89
40
Other general and administrative costs
3,817
3,302
Total expenses
11,087
8,174
Net investment loss
(2,094
)
(1,380
)
Net realized and unrealized gains (losses):
Net realized gains on non-affiliate investments
8,685
6,286
Net unrealized appreciation on SBA guaranteed non-affiliate investments
113
62
Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(556
)
(1,027
)
Net unrealized appreciation on controlled investments
931
3,690
Provision for deferred taxes on unrealized appreciation on controlled investments
(566
)
(1,608
)
Net unrealized depreciation on non-control/non-affiliate investments
—
(16
)
Net unrealized depreciation on servicing assets
(609
)
(403
)
Net realized and unrealized gains
7,998
6,984
Net increase in net assets
$
5,904
$
5,604
Net increase in net assets per share
$
0.36
$
0.39
Net investment loss per share
$
(0.13
)
$
(0.10
)
Dividends declared per common share
$
0.36
$
0.35
Weighted average shares outstanding
16,383
14,509
See accompanying notes to unaudited condensed consolidated financial statements.
2
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
(In Thousands)
Three Months Ended March 31, 2017
Increase in net assets:
Net investment loss
$
(2,094
)
Net realized gains on investments
8,685
Net change in unrealized depreciation on investments
(78
)
Net change in unrealized depreciation on servicing assets
(609
)
Net increase in net assets
5,904
Distributions to stockholders:
Distributions to stockholders from net realized gains
(6,151
)
Capital share transactions:
Issuance of common stock under dividend reinvestment plan
91
Stock-based compensation
385
Issuance of common stock, net of offering costs
37,041
Net increase in net assets from capital share transactions
37,517
Total increase in net assets
37,270
Net assets at beginning of period
209,094
Net assets at end of period
$
246,364
Common shares outstanding at end of period
17,220
Capital share activity:
Shares issued under dividend reinvestment plan
6
Restricted shares issued under Stock Incentive Plan
3
Shares issued in connection with public offering
2,588
Net increase in capital activity
2,597
See accompanying notes to unaudited condensed consolidated financial statements.
3
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Cash flows from operating activities:
Net increase in net assets
$
5,904
$
5,604
Adjustments to reconcile net increase in net assets to net cash (used in) provided by operating activities:
Net unrealized appreciation on controlled investments
(931
)
(3,690
)
Net unrealized depreciation on non-affiliate investments
443
981
Net unrealized depreciation on servicing assets
609
403
Realized gains on non-affiliate investments
(8,685
)
(6,286
)
Loss on lease
101
—
Amortization of deferred financing costs
412
271
Deferred income taxes
566
1,608
Depreciation and amortization
89
40
Purchase of loan portfolio
(175
)
—
Funding of controlled investments
(5,423
)
—
Funding of SBA guaranteed non-affiliate investments
(60,046
)
(42,700
)
Principal received from controlled investments
1,254
1,300
Principal received from non-control/non-affiliate investments
—
361
Return of investment from controlled investment
50
—
Proceeds from sale of SBA guaranteed non-affiliate investments
68,471
48,769
Funding of SBA unguaranteed non-affiliate investments
(18,598
)
(13,358
)
Principal received on SBA non-affiliate investments
9,832
3,836
Other, net
483
111
Changes in operating assets and liabilities:
Broker receivable
(15,450
)
8,827
Due to/from related parties
(929
)
97
Other assets
860
(52
)
Accounts payable, accrued expenses and other liabilities
1,039
(379
)
Change in restricted cash
(6,726
)
4,016
Capitalized servicing assets
(1,459
)
(1,005
)
Other, net
(17
)
39
Net cash (used in) provided by operating activities
(28,326
)
8,793
Cash flows from investing activities:
Purchase of fixed assets
(136
)
(76
)
Cash flows from financing activities:
Net borrowings on bank notes payable
13,200
3,229
Net (repayments) borrowings on Notes payable - related parties
(1,400
)
5,170
Repurchase of common stock under share repurchase plan
—
(866
)
Proceeds from common shares sold, net of offering costs
37,042
—
Dividends paid
(6,151
)
(10,872
)
Payments on Notes payable - Securitization trusts
(8,892
)
(5,891
)
Change in restricted cash related to securitization trusts
(1,392
)
(118
)
4
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Additions to deferred financing costs
—
(61
)
Other, net
(1
)
(2
)
Net cash provided by (used in) financing activities
32,406
(9,411
)
Net increase (decrease) in cash and cash equivalents
3,944
(694
)
Cash and cash equivalents—beginning of period
2,051
4,308
Cash and cash equivalents—end of period
$
5,995
$
3,614
Supplemental disclosure of cash flow activities:
Non-cash operating, investing and financing activities:
Reduction of credits in lieu of cash and notes payable in credits in lieu of cash balances due to delivery of tax credits to Certified Investors
$
—
$
217
Foreclosed real estate acquired
$
62
$
83
Issuance of common stock under dividend reinvestment plan
$
91
$
143
See accompanying notes to unaudited condensed consolidated financial statements.
5
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 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)
Citizens Lanes, LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
3/31/2042
$
619.4
$
619.4
$
643.0
0.26
%
Shelter Harbor Inn, Inc.
Accommodation
Term Loan
Prime plus 2.75%
3/31/2042
207.5
207.5
215.4
0.09
%
Golden Hen Inc. dba Cafe
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/31/2027
64.8
64.8
56.0
0.02
%
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
187.5
160.2
0.07
%
MIT LLC
Publishing Industries (except Internet)
Term Loan
Prime plus 2.75%
3/31/2027
87.5
87.5
88.2
0.04
%
Applied Integrated Technologies, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/31/2027
125.0
125.0
106.8
0.04
%
Bear Trail Lodge LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
3/31/2042
552.5
552.5
566.4
0.23
%
Altitude Group, LLC and Core Home Security, LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2027
50.0
50.0
42.7
0.02
%
KWG Industries LLC dba Peterson & Marsh Metal Industries
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
3/30/2027
30.0
30.0
29.1
0.01
%
Municipal Hydro Sevices Inc.
Rental and Leasing Services
Term Loan
Prime plus 2.75%
3/30/2027
312.5
312.5
284.4
0.12
%
Signature Rooms, Inc dba Gallery Furniture
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
3/30/2042
495.8
495.8
510.5
0.21
%
Sea Smoke Barbeque, Corp and Danwen LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/30/2042
236.5
236.5
234.7
0.10
%
Schafer Fisheries Inc.
Food Manufacturing
Term Loan
Prime plus 2.75%
3/30/2042
258.6
258.6
260.3
0.11
%
Douglas K. Soderblom . dba Loma Linda Optometry
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/29/2027
100.0
100.0
89.7
0.04
%
Discount Price, LLC dba Robert's Market
Gasoline Stations
Term Loan
Prime plus 2.75%
3/29/2042
206.3
206.3
206.6
0.08
%
First Sail Group Inc. and Omen Board Industires LLC
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/29/2027
20.0
20.0
18.3
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
1,056.3
1,086.9
0.44
%
6
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
H and H Hotshot Services, Inc. dba AA Hotshot & Logistics
Couriers and Messengers
Term Loan
Prime plus 2.75%
3/29/2030
97.5
97.5
84.0
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
362.8
359.8
0.15
%
American Pharmaceutical Innovation Company, LLC
Chemical Manufacturing
Term Loan
Prime plus 2.75%
3/28/2027
30.0
30.0
25.7
0.01
%
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
142.4
0.06
%
Heil & Hornik LLC dba Elysium Tennis
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
3/27/2042
928.6
928.6
914.4
0.37
%
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
435.5
446.8
0.18
%
Ericon Inc. dba Quik Pik
Gasoline Stations
Term Loan
Prime plus 2.75%
3/24/2027
62.5
62.5
59.6
0.02
%
Executive Fitness & Nutrition Inc.
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
3/23/2027
20.3
20.3
19.7
0.01
%
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
59.3
53.7
0.02
%
Color Graphic Press, Inc.
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
3/23/2027
120.0
120.0
121.0
0.05
%
JBK Truck Trailer and Bus Inc.
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/23/2042
88.8
37.0
38.4
0.02
%
Baton Rouge Cargo Services Inc. and 6507 Westport, LLC
Truck Transportation
Term Loan
Prime plus 2.75%
3/22/2042
643.1
643.1
651.1
0.26
%
Vehicle Safety supply LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/21/2027
22.5
22.5
19.2
0.01
%
J Sivilis LLC dba Pet Wants
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/17/2027
12.3
12.3
10.8
—
%
Reservoir International LLC
Educational Services
Term Loan
Prime plus 2.75%
3/16/2027
100.0
100.0
92.1
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
162.5
168.7
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
300.0
301.6
0.12
%
Alive Design, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/13/2027
22.5
22.5
19.2
0.01
%
1MTX LLC and Sunrise Transportation and Logistics, LLC
Truck Transportation
Term Loan
Prime plus 2.75%
3/13/2027
702.9
702.9
600.5
0.24
%
7
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Dwayne Bernard Tate
Truck Transportation
Term Loan
Prime plus 2.75%
3/10/2027
10.5
10.5
9.5
—
%
Elegant Occasions, LLC dba E Productions
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/10/2042
588.2
588.2
582.2
0.24
%
Anthony LLC dba Star of Woodward Market
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/9/2042
115.0
115.0
119.4
0.05
%
E & P Holdings 1 LLC and Evans & Paul Unlimited Corp.
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/9/2027
125.0
125.0
106.8
0.04
%
Allegro Assisted Living Of Texas
Nursing and Residential Care Facilities
Term Loan
Prime plus 2.75%
3/6/2027
96.0
96.0
96.3
0.04
%
Robbie E. Bakery and Cafe LLC
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/3/2027
62.5
62.5
53.6
0.02
%
Podium Auto Sales Inc and RRS Property, LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/3/2042
90.8
90.8
89.2
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
235.5
201.2
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
140.0
140.5
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
96.3
88.1
0.04
%
Total Document Solutions Inc and,TDS Services, LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
2/27/2030
312.5
312.5
285.3
0.12
%
Teracore Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
2/27/2027
163.8
163.8
140.5
0.06
%
John Finn Associates, LLC,Indiepay LLC,Fin Technology,LLC,Isong, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
2/27/2027
675.0
675.0
641.8
0.26
%
McNally Enterprises Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
2/27/2027
65.0
65.0
57.7
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
15.0
15.1
0.01
%
3W Enterprises LLC
Textile Product Mills
Term Loan
Prime plus 2.75%
2/24/2042
81.8
81.8
81.0
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
61.4
60.1
0.02
%
Eternal Services Incorporated,Ward-Wilson Funeral Home, LLC
Personal and Laundry Services
Term Loan
7.97%
2/23/2042
685.0
685.0
585.4
0.24
%
Victorian Restaurant and Tavern, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/22/2042
107.5
70.0
70.9
0.03
%
8
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
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
40.0
41.5
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
19.5
16.7
0.01
%
Ameritube, LLC and Ravone Properties, LLC
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
2/14/2042
185.0
185.0
192.1
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
93.8
81.0
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
247.5
250.6
0.10
%
Sushiya Inc.
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/10/2027
18.8
18.8
16.6
0.01
%
Maximo Canot dba Wash and Dry Laundrymat
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/10/2042
137.5
137.5
139.6
0.06
%
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
1,250.0
1,140.7
0.46
%
Marvic Enterprises Inc dba Jordan's Liquor
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/10/2042
219.0
99.4
103.2
0.04
%
Harrison Logging Company LLC
Forestry and Logging
Term Loan
Prime plus 2.75%
2/9/2027
106.3
106.3
95.7
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
327.5
317.9
0.13
%
Christopher Borgia
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/6/2027
12.9
12.9
11.2
—
%
Splashlight LLC, Splashlight Photographic & Digital Studios LLC & Maho
Management of Companies and Enterprises
Term Loan
Prime plus 2.75%
2/2/2027
750.0
750.0
683.5
0.28
%
DBMS Consulting, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
2/1/2042
185.0
185.0
179.6
0.07
%
Brandco, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
1/31/2027
43.8
43.5
37.2
0.02
%
Chidlren's House Learning, Inc and Tarps Investment Group
Social Assistance
Term Loan
Prime plus 2.75%
1/31/2042
321.3
321.0
317.4
0.13
%
Grand Center Inn L.P. dba Grand Center Inn
Accommodation
Term Loan
Prime plus 2.75%
1/31/2027
15.0
14.9
15.0
0.01
%
AP6 LLC and Amishp LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/30/2042
127.5
108.8
112.9
0.05
%
Fave Realty, Inc.
Real Estate
Term Loan
Prime plus 2.75%
1/30/2042
54.5
54.4
54.5
0.02
%
9
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Return to Excellence Inc
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
1/27/2027
17.7
17.6
17.8
0.01
%
ZMKNY Tires Inc dba Houston International Tires
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
1/27/2042
107.5
107.3
111.4
0.05
%
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
138.1
132.4
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
22.4
19.1
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
17.9
15.3
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
42.4
42.8
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
249.4
228.8
0.09
%
Jolibe LLC and Jolibe Atelier LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
1/18/2027
10.5
10.4
9.2
—
%
Eickmann Management Group LLC dba Jimmy Johns of Dundee
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/17/2027
93.8
59.6
60.1
0.02
%
Ramjay Inc.
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
1/13/2027
435.0
433.4
391.7
0.16
%
Fullbro Trust dba Menemsha Blues
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
1/13/2027
22.5
22.4
22.5
0.01
%
Echelon Enterprises, Inc
Sporting Goods, Hobby, Musical Instrument, and Book Stores
Term Loan
Prime plus 2.75%
1/10/2027
50.0
49.7
50.1
0.02
%
Pig-Sty BBQ LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/6/2027
9.0
8.9
8.8
—
%
Fort Smith Wings Inc. dba Wing Stop
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/28/2026
19.5
19.3
17.2
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
418.7
408.8
0.17
%
Joshua L. Baker
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
12/23/2026
15.8
15.6
13.3
0.01
%
Jacliff Investments Inc. dba International health Technologies
Publishing Industries (except Internet)
Term Loan
Prime plus 2.75%
12/23/2026
125.0
123.5
105.5
0.04
%
New Image Building Services, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
12/21/2026
43.8
43.2
38.3
0.02
%
10
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Chestnut Street Associates, LLC and Metropolitan Solutions, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/19/2041
275.0
274.2
260.5
0.11
%
Means Enterprises LLC dba FastFrame Frisco
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
12/16/2026
22.5
22.2
19.3
0.01
%
New Chicago Wholesale Bakery, Inc.
Food Manufacturing
Term Loan
Prime plus 2.75%
12/15/2041
452.8
451.5
442.6
0.18
%
Soon Im. Chin dba Stan C-Store
Gasoline Stations
Term Loan
Prime plus 2.75%
12/15/2041
212.5
211.9
216.1
0.09
%
Allied Welding Inc.
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
12/15/2041
750.0
747.9
726.3
0.29
%
Ericon, Inc. dba Quik Pik
Gasoline Stations
Term Loan
Prime plus 2.75%
12/15/2041
332.2
331.8
326.4
0.13
%
White Hawk Inc.
Truck Transportation
Term Loan
Prime plus 2.75%
12/15/2026
1,097.8
1,086.3
927.7
0.38
%
Elita 7, LLC
Nursing and Residential Care Facilities
Term Loan
Prime plus 2.75%
12/15/2041
712.5
710.5
714.4
0.29
%
Techni-Pro Institute LLC
Educational Services
Term Loan
Prime plus 2.75%
12/15/2026
190.0
187.7
165.0
0.07
%
Sempco, Inc.
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
12/15/2041
42.0
41.9
43.5
0.02
%
Trison Enterprises Inc.dba Lee's Automotive
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/14/2041
407.5
406.4
405.3
0.16
%
HMG Strategy, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/14/2026
50.0
49.4
42.2
0.02
%
Cardinal Homes Inc. and Bret A Berneche
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
12/14/2041
121.3
120.9
125.0
0.05
%
Cardinal Homes Inc,.Alouette Holdings Inc.
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
12/14/2026
1,071.3
1,058.4
1,063.8
0.43
%
AGG Management Team LLC dba Chevron
Gasoline Stations
Term Loan
Prime plus 2.75%
12/14/2041
287.5
286.7
297.5
0.12
%
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
527.1
517.4
0.21
%
Wayfarer Bicycle LLC
Sporting Goods, Hobby, Musical Instrument, and Book Stores
Term Loan
Prime plus 2.75%
12/13/2041
92.5
92.2
88.7
0.04
%
Success Advertising Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/13/2041
466.5
465.2
475.3
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
144.6
145.7
0.06
%
11
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Queen Express LLC
Gasoline Stations
Term Loan
Prime plus 2.75%
12/13/2041
187.5
187.0
191.2
0.08
%
Mack Team Enterprises Inc.dba The UPS Store #6815
Couriers and Messengers
Term Loan
Prime plus 2.75%
12/9/2026
20.4
20.2
18.0
0.01
%
Recycling Revolution,LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
12/9/2041
92.2
91.9
90.2
0.04
%
Myndshft Technologies LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/9/2026
775.0
765.7
724.0
0.29
%
^New Life Hospital LLC
Hospitals
Term Loan
Prime plus 2.75%
12/8/2041
1,195.5
1,192.1
1,237.1
0.50
%
Imagine By Carleen Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/8/2041
52.5
52.4
53.2
0.02
%
Hanson's Greeks LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/8/2026
11.3
11.1
11.2
—
%
Yachting Solutions LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
12/7/2029
71.3
70.7
66.9
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
99.0
92.1
0.04
%
Lan Doctors, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/7/2026
237.5
234.6
228.4
0.09
%
^The Lake Shore Hospitality Inc dba Dowagiac Baymont Inn & Suites
Accommodation
Term Loan
Prime plus 2.75%
12/5/2041
352.5
351.5
357.7
0.15
%
Lilo Holdings LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/5/2026
15.9
15.7
14.2
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
0.05
%
Calhoun Satellite Communications, Inc.
Telecommunications
Term Loan
Prime plus 2.75%
12/2/2026
192.5
192.3
171.6
0.07
%
^Ericon, Inc.
Gasoline Stations
Term Loan
Prime plus 2.75%
12/1/2041
726.1
725.2
717.2
0.29
%
Noso Development LLC
Construction of Buildings
Term Loan
Prime plus 2.75%
12/1/2026
75.0
74.1
63.3
0.03
%
^Quick Ship, LLC
Couriers and Messengers
Term Loan
Prime plus 2.75%
11/30/2026
10.5
10.3
8.8
—
%
^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
67.2
69.8
0.03
%
Sharaz Shah DBA Thomas Jewelers
Clothing and Clothing Accessories Stores
Term Loan
Prime plus 2.75%
11/30/2026
8.1
8.0
6.8
—
%
12
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
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
22.1
21.5
0.01
%
Studio Find It Georgia, Inc.
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
11/30/2026
7.5
7.4
6.4
—
%
Imaginarium Foods LLC,
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/28/2042
376.7
249.1
258.6
0.10
%
RD Management, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/30/2026
213.8
209.9
181.4
0.07
%
B4 Fitness LLC dba The Zoo Health Club
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
11/30/2026
22.5
22.1
19.6
0.01
%
^Usman Jalil, LLC dba Food Mart
Gasoline Stations
Term Loan
Prime plus 2.75%
11/29/2041
233.3
232.3
222.6
0.09
%
Honor Mansion, Inc.
Accommodation
Term Loan
Prime plus 2.75%
11/29/2026
87.5
85.9
86.6
0.04
%
Access Staffing, LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
11/29/2026
1,125.0
1,104.6
943.3
0.38
%
Merchant Coterie, Inc.
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
11/23/2026
125.0
122.7
104.8
0.04
%
CRK Mens, LLC dba Spiff for Men
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/23/2026
106.3
104.4
91.0
0.04
%
WPN Recycling Company LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
11/23/2026
22.5
22.1
22.3
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
58.9
51.0
0.02
%
Rognes Corp dba RTS
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
11/22/2026
389.3
382.2
348.2
0.14
%
Bouquet Restaurant LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/22/2041
125.0
124.5
124.4
0.05
%
^J.B.K Truck Trailer and Bus Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/22/2041
435.0
433.2
426.3
0.17
%
6E Technologies LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
11/22/2026
175.0
171.6
157.3
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
122.7
104.8
0.04
%
Skaggs RV Outlet LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
11/21/2026
100.0
98.2
98.9
0.04
%
Catherine Christine Morin dba Purr-Fect Pets
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/17/2026
18.8
18.4
15.7
0.01
%
13
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Stratmar Systems Inc dba Stratmar Retail Services
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
11/16/2026
68.5
67.2
67.7
0.03
%
Hoosier Health Plus, LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
11/15/2026
125.0
122.7
114.9
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%
11/10/2041
446.0
444.1
448.6
0.18
%
Hackensack Steel Corporation and Luzerne Ironworks Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/10/2026
239.2
234.8
235.1
0.10
%
^Panther Ironworks and Rigging Solutions LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/10/2026
151.3
148.5
135.7
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%
11/10/2026
188.8
185.3
181.9
0.07
%
MIK LLC dba Firehouse Subs
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/9/2026
200.0
200.0
173.0
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
43.8
43.0
39.9
0.02
%
^Bovill Creative, LLC
Real Estate
Term Loan
Prime plus 2.75%
11/9/2041
281.2
279.9
290.5
0.12
%
^Big Apple Entertainment Partners LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
11/9/2026
175.0
171.8
146.7
0.06
%
^Dyer Properties, LLC and Bayview Pharmacy, Inc.
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
11/9/2041
240.3
239.2
233.2
0.09
%
Surgarloaf Concepts LLC dba Fat Biscuit
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/8/2026
168.8
168.8
170.0
0.07
%
^Fine Line Interiors, Inc.
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/4/2041
87.5
86.1
89.4
0.04
%
^Pig-Sty BBQ LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/3/2026
71.3
70.0
70.5
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
60.2
62.5
0.03
%
^Veracruz Shabo, LLC Waterfalls Quick Lube LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
11/1/2041
118.8
118.7
119.6
0.05
%
Glocecol LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
11/1/2026
75.0
73.6
74.2
0.03
%
^Bloomquist Communications Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
10/31/2026
60.0
58.5
50.0
0.02
%
^Moolchan Enterprises LLC dba Staying Green
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
10/31/2026
18.2
17.7
16.6
0.01
%
14
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
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
%
^Woodstock Enterprises Corp dba True Scent Candle Co.
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
10/31/2041
88.8
88.3
84.9
0.03
%
^Patina Investment, Inc and Ram & Sons, Inc.
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/27/2041
175.0
174.0
180.6
0.07
%
^FibAire Communications, LLC
Telecommunications
Term Loan
Prime plus 2.75%
10/27/2026
107.5
104.9
95.9
0.04
%
Elite Structures Inc
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
10/27/2029
225.0
223.6
216.2
0.09
%
^Bonita Stone LLC and Castone Creations Inc
Nonmetallic Mineral Product Manufacturing
Term Loan
Prime plus 2.75%
10/25/2041
264.4
262.9
258.5
0.10
%
^Empire Processor Services Inc. and Verrazano Wholesale Dist., Inc.
Nonstore Retailers
Term Loan
Prime plus 2.75%
10/25/2026
131.3
128.1
129.0
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
414.7
410.0
0.17
%
Eco Vehicle Systems LLC
Transportation Equipment Manufacturing
Term Loan
Prime plus 2.75%
10/21/2026
955.5
932.9
926.1
0.38
%
Worldwide Estate, Inc. dba Washington Heights Manor
Nursing and Residential Care Facilities
Term Loan
Prime plus 2.75%
10/21/2041
225.0
163.4
169.5
0.07
%
^Gold Wind Logistics LLC
Truck Transportation
Term Loan
Prime plus 2.75%
10/20/2041
175.0
174.1
180.7
0.07
%
^Speaker City, Inc. dba Rollin Thunder
Electronics and Appliance Stores
Term Loan
Prime plus 2.75%
10/14/2041
125.0
124.3
124.9
0.05
%
^Maine Service Corp
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
10/13/2026
206.3
199.9
186.6
0.08
%
^Justin Partlow
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
10/13/2026
19.5
19.0
16.2
0.01
%
^Reliable Recovery Services LLC
Support Activities for Transportation
Term Loan
Prime plus 2.75%
10/7/2026
112.5
109.8
99.6
0.04
%
^Ailky Corporation
Building Material and Garden Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
10/3/2026
250.0
243.9
213.7
0.09
%
^Wyspen Corporation dba Charlestown Ace
Building Material and Garden Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
10/3/2026
36.0
35.1
30.0
0.01
%
^MegaPhase, LLC
Computer and Electronic Product Manufacturing
Term Loan
Prime plus 2.75%
9/30/2026
150.0
145.4
138.7
0.06
%
^JJA Transportation Management Inc.
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
9/30/2026
52.5
50.9
42.9
0.02
%
15
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Seaway LLC and Reklaw LLC dba Allure Lounge
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/30/2041
137.5
136.5
141.2
0.06
%
^Adelwerth Bus Corp.
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
9/30/2041
242.8
241.4
234.6
0.10
%
Adelwerth Bus Corporation, Transportation Leasing Corp.
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
9/30/2029
654.0
641.0
609.5
0.25
%
^Las Casuelas Del Este Inc.
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/29/2041
800.0
796.1
805.2
0.33
%
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
657.3
607.8
0.25
%
^Thunderdome Racing Inc.
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
9/29/2026
19.1
18.5
18.1
0.01
%
^Paragon Global, LLC and Paragon Fabricators Inc and Paragon Field Serv
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
9/28/2041
405.8
402.9
377.7
0.15
%
^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
844.0
872.9
0.35
%
^Beadon Inc
Food and Beverage Stores
Term Loan
Prime plus 2.75%
9/28/2026
22.5
21.8
21.5
0.01
%
^CNC Precision Machine, Inc.
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
9/28/2041
1,250.0
1,241.2
1,219.2
0.49
%
^CD Game Exchange Inc.
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
9/28/2026
22.5
21.8
18.4
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
628.2
571.3
0.23
%
^Kyle M Walker DDS,PC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/27/2026
217.8
211.4
183.9
0.07
%
Reynolds Fence & Guardrail Inc.
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
9/27/2026
629.6
610.3
583.3
0.24
%
^Luna Nueva LLC dba Bio Builders
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/27/2026
15.0
14.5
12.7
0.01
%
^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
50.9
45.0
0.02
%
^Sarah S Olelewe MD Inc
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/26/2041
292.4
291.0
286.5
0.12
%
^TPFC,LLC dbaThe Picture Frame Company
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/26/2041
58.8
58.3
57.6
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
8.7
8.5
—
%
16
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^PeopleBest Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
9/26/2026
15.0
14.5
12.3
—
%
^Mr. Mulch, Inc
Building Material and Garden Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
9/23/2041
405.8
402.9
370.9
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
84.8
74.6
0.03
%
^InformationTelevision Network Inc
Motion Picture and Sound Recording Industries
Term Loan
Prime plus 2.75%
9/22/2041
836.8
833.7
851.8
0.35
%
^Kids at Heart,LLC dba Monster Mini Golf
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
9/22/2026
22.5
21.8
18.7
0.01
%
^GRA Financial Services Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/22/2026
12.0
11.6
9.8
—
%
^Wrecking Crew Media LLC
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
9/21/2026
50.0
48.5
40.8
0.02
%
^Cuppiecakes LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/21/2041
22.5
22.3
21.9
0.01
%
^Benoit's Towing and Recovery LLC
Support Activities for Transportation
Term Loan
Prime plus 2.75%
9/20/2026
12.0
11.6
9.9
—
%
^Consulting Solutions Inc. and Mark Luciani
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/20/2026
22.5
21.8
20.3
0.01
%
^Brittany Burns LLC dba Dreams Come True
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/19/2026
12.9
12.5
12.6
0.01
%
^Eyncon LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/16/2041
50.0
49.6
49.4
0.02
%
^Tresa S.Parris dba Wagging Tails Grooming
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/16/2026
8.0
7.8
6.6
—
%
^The Merrin Group LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/15/2026
175.0
169.7
161.1
0.07
%
^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
141.3
130.1
0.05
%
^Atlantic Alarm Systems and Services LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
9/14/2026
15.5
15.0
13.1
0.01
%
^Metropet Dog Center, Inc
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/13/2041
109.3
108.5
108.3
0.04
%
^Marquis Cattle Company
Animal Production and Aquaculture
Term Loan
Prime plus 2.75%
9/13/2026
50.0
49.0
49.1
0.02
%
17
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
81.9
78.7
0.03
%
^Artisan Infrastructure Holdings, LLC
Data Processing, Hosting, and Related Services
Term Loan
Prime plus 2.75%
9/7/2026
125.0
121.2
102.1
0.04
%
^SRA Mechanicial Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/6/2041
43.8
43.4
44.7
0.02
%
^Sandia Enterprises Inc dba Massage Envy Spa
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/6/2026
62.5
60.6
51.1
0.02
%
^Animal Intrusion Prevention Systems Holding Company, LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
8/30/2026
125.0
120.6
104.4
0.04
%
^Suncrest Stone Products LLC
Nonmetallic Mineral Product Manufacturing
Term Loan
Prime plus 2.75%
8/29/2026
586.8
565.2
500.6
0.20
%
^Clark Realty LLC
Real Estate
Term Loan
Prime plus 2.75%
8/29/2041
237.5
235.5
222.4
0.09
%
^Raem Corporation dba Dryclean Express
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/29/2041
72.5
71.9
73.3
0.03
%
^Suncrest Stone Products LLC
Nonmetallic Mineral Product Manufacturing
Term Loan
Prime plus 2.75%
8/29/2041
649.6
644.1
588.8
0.24
%
^Warren Dale Warrington dba Custom Paint and Body
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/26/2041
101.3
100.4
100.8
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
102.8
89.1
0.04
%
^Albert Basse Associates Inc
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
8/25/2026
62.5
60.2
59.9
0.02
%
^Dean Technology Inc
Electrical Equipment, Appliance, and Component Manufacturing
Term Loan
Prime plus 2.75%
8/25/2041
387.1
383.8
393.6
0.16
%
^Rosmel Pools Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/25/2026
22.5
21.7
18.7
0.01
%
^Avery Management Inc. dba Whetstone Upholstery
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/25/2026
10.7
10.3
8.6
—
%
^Tabadesa Associates Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
8/25/2026
22.5
21.7
18.3
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
86.7
73.1
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
401.5
415.4
0.17
%
^Tim's Tire & Automotive Center, LLC
Support Activities for Transportation
Term Loan
Prime plus 2.75%
8/16/2026
816.6
792.6
710.8
0.29
%
18
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Luv 2 Play Temecula, LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
8/15/2026
60.0
57.8
48.7
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
283.3
0.11
%
^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
79.5
67.0
0.03
%
^Grayson O Company
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
8/10/2041
625.0
619.7
635.2
0.26
%
^PCNKC Inc dba Plato's Closet
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
8/10/2026
18.8
18.1
15.6
0.01
%
^Charal Investments LLC dba Orange Theory Fitness
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
8/10/2026
87.5
84.3
71.0
0.03
%
^Paul Belanger dba Paul Belanger Landscaping
Administrative and Support Services
Term Loan
Prime plus 2.75%
8/9/2026
15.0
14.4
12.2
—
%
^Nicolette Reiser dba Comfort & Balance
Personal and Laundry Services
Term Loan
Prime plus 2.75%
7/29/2041
75.0
74.3
74.5
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
21.5
18.8
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
14.4
12.5
0.01
%
^The Hungry Rhino LLC
Real Estate
Term Loan
Prime plus 2.75%
7/29/2041
76.3
75.5
74.2
0.03
%
^303 Tower Drive LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
7/29/2041
400.3
396.3
400.3
0.16
%
^Little Tree Huggers Child Care LLC
Social Assistance
Term Loan
Prime plus 2.75%
7/29/2041
140.0
138.6
143.0
0.06
%
^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
287.1
241.9
0.10
%
^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
663.4
676.0
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
581.2
573.7
0.23
%
^MacIver Corporation dba Division Camera
Rental and Leasing Services
Term Loan
Prime plus 2.75%
7/28/2026
1,250.0
1,196.2
1,115.7
0.45
%
^Intrepid Trinity LLC
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/28/2041
62.5
61.9
61.9
0.03
%
^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
30.4
26.9
0.01
%
19
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
333.7
324.5
0.13
%
^EPEC Juice LLC dba Jamba Juice
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/27/2026
82.5
79.9
67.3
0.03
%
^GF Libations Inc dba Minuteman Press
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
7/27/2041
40.5
39.1
34.1
0.01
%
^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
44.5
0.02
%
^Peckett's Inc
Crop Production
Term Loan
Prime plus 2.75%
7/27/2041
225.0
223.9
231.5
0.09
%
^Pinco Pizza LLC dba Jet's Pizza
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/27/2026
72.9
70.7
68.9
0.03
%
^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
119.6
100.8
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
87.2
78.7
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
532.1
520.2
0.21
%
^My Sainath Inc dba Motel 6
Accommodation
Term Loan
Prime plus 2.75%
7/22/2041
305.4
302.4
306.2
0.12
%
^Robert G Larson State Farm Insurance
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
7/22/2026
22.5
21.5
18.1
0.01
%
^J and D Resources LLC dba Aqua Science
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2026
130.5
124.9
106.4
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
15.1
12.7
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
172.1
170.0
0.07
%
^Billingsworks LLC dba Spoon Shine Cafe
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/15/2026
9.7
9.2
9.3
—
%
^Be Beautiful LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
7/14/2041
66.5
65.8
66.7
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
44.3
37.3
0.02
%
^Jacob Rugs LLC dba Rugs Outlet
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
7/13/2026
65.6
62.8
63.1
0.03
%
^RM Hawkins LLC dba Pure Water Tech West
Nonstore Retailers
Term Loan
Prime plus 2.75%
7/7/2026
50.0
47.9
45.4
0.02
%
20
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Dino Smiles Children's Cosmetic Dentistry
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
7/7/2026
14.3
13.6
11.9
—
%
Nevey's LLC dba Stark Food III
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/30/2041
293.9
291.6
293.8
0.12
%
^Soregard Inc
Furniture and Related Product Manufacturing
Term Loan
Prime plus 2.75%
6/30/2041
278.8
275.6
259.2
0.11
%
^Martin Inventory Management LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
6/30/2026
105.8
100.5
100.9
0.04
%
^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
166.5
162.8
0.07
%
^Desert Tacos LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/30/2026
98.8
96.4
89.7
0.04
%
^VMA Technologies LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
6/30/2026
22.5
21.4
18.0
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
188.8
190.9
0.08
%
^Castone Creations Inc
Nonmetallic Mineral Product Manufacturing
Term Loan
Prime plus 2.75%
6/29/2026
87.5
83.2
73.3
0.03
%
^WGI, LLC dba Williams Grant Inn
Accommodation
Term Loan
Prime plus 2.75%
6/29/2041
131.3
129.8
128.3
0.05
%
^Ninsa LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/29/2041
112.5
111.2
115.0
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
301.5
302.8
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
133.1
115.3
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
119.0
103.9
0.04
%
^MaidPro Marin dba MaidPro
Administrative and Support Services
Term Loan
Prime plus 2.75%
6/28/2026
17.6
16.7
14.0
0.01
%
^Edge Pest Control LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
6/27/2026
750.0
713.0
600.3
0.24
%
^All Printing Solutions, Inc. dba Pryntcomm
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
6/27/2041
545.6
540.0
511.9
0.21
%
^Jumbomarkets Inc dba Rines Jumbomarkets
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/24/2026
50.0
47.5
40.0
0.02
%
^El Basha Inc dba RPM West San Fernando Valley
Real Estate
Term Loan
Prime plus 2.75%
6/24/2026
22.5
19.8
16.7
0.01
%
^Island Time Investments, LLC dba Swantown Inn Bed & Breakfast
Accommodation
Term Loan
Prime plus 2.75%
6/24/2041
101.3
100.1
103.5
0.04
%
21
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Yellow Cab Company of Kissimmee Inc
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
6/24/2041
56.8
56.2
53.0
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
492.6
473.5
0.19
%
^Visual Advantage LLC dba Signs Now Perryberg
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
6/23/2041
91.3
90.2
88.4
0.04
%
^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
185.4
183.7
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
54.7
49.3
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
1,237.8
1,256.8
0.51
%
^Italian Heritage Tile and Stone Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/20/2026
62.5
59.4
50.0
0.02
%
^Bagelicious, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/17/2026
54.6
51.9
44.0
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
214.2
213.9
0.09
%
^NKJ Lusby Donuts LLC
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/16/2026
22.5
21.4
18.0
0.01
%
^Winegirl Wines LLC
Beverage and Tobacco Product Manufacturing
Term Loan
Prime plus 2.75%
6/16/2026
11.3
10.7
10.7
—
%
^Blue Eagle Transport Inc, Greeneagle Transport Inc
Couriers and Messengers
Term Loan
Prime plus 2.75%
6/16/2026
583.0
549.2
462.4
0.19
%
^Pumpkin Patch Child Care of Southington, LLC and Giuseppe Pugliares
Social Assistance
Term Loan
Prime plus 2%
6/15/2041
515.3
508.7
483.0
0.20
%
^Jai-Alexia Consulting, Inc.
Couriers and Messengers
Term Loan
Prime plus 2.75%
6/15/2026
11.8
11.2
9.5
—
%
^Strag Industries LLC dba Meineke Car Care Center 841
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/15/2026
15.0
14.3
13.1
0.01
%
^Refoleen Inc dba Spice and Tea Exchange
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/10/2026
85.0
82.3
69.3
0.03
%
^Luv 2 Play AZ LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
6/10/2026
62.5
59.4
57.5
0.02
%
^VBGB Uptown, LLC dba VBGB Beer Hall & Garden
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/8/2026
84.0
79.9
67.2
0.03
%
^ScimTech Industries Inc dba Archer Aerospace
Computer and Electronic Product Manufacturing
Term Loan
Prime plus 2.75%
6/6/2026
12.0
11.4
9.6
—
%
22
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Larry H. Patterson and Rainbow Movers, Inc
Truck Transportation
Term Loan
Prime plus 2.75%
6/6/2026
22.5
21.4
18.1
0.01
%
^Solvit Inc and Solvit North Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/3/2026
250.0
238.0
211.1
0.09
%
^AP5 LLC dba Krauser's Food Store
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/2/2041
242.5
239.7
238.2
0.10
%
^ATI Jet Inc
Air Transportation
Term Loan
Prime plus 2.75%
5/31/2026
518.8
490.1
433.5
0.18
%
^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
47.3
47.5
0.02
%
Angelo Faia dba AVF Construction
Construction of Buildings
Term Loan
Prime plus 2.75%
5/27/2041
100.0
98.2
96.9
0.04
%
^Premier Athletic Center of Ohio, Inc
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
5/27/2026
87.5
82.6
82.9
0.03
%
^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
17.7
14.9
0.01
%
^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
203.6
199.3
0.08
%
^Mersada Holdings LLC
Nonstore Retailers
Term Loan
Prime plus 2.75%
5/26/2026
337.5
318.7
319.8
0.13
%
^Southwest Division Inc
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
5/26/2026
8.3
7.8
7.0
—
%
^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
21.2
21.3
0.01
%
^PennyLion LLC dba Creamistry
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
5/25/2026
81.0
77.5
67.2
0.03
%
^International Kitchen Supply LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
5/25/2026
186.8
176.3
157.3
0.06
%
^Island Life Graphics Inc dba FASTSIGNS #576
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
5/24/2026
22.5
21.2
18.2
0.01
%
^Powerspec Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
5/24/2026
87.5
82.7
69.6
0.03
%
^Horseshoe Barbecue, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
5/23/2029
15.0
13.7
13.9
0.01
%
^Pro Auto Repair LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/20/2026
7.5
7.0
6.8
—
%
^Elderfriend Inc dba Granny Nannies dba GN Live Scan
Social Assistance
Term Loan
Prime plus 2.75%
5/20/2026
12.8
12.0
10.1
—
%
23
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^CM Lab Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
5/20/2026
172.6
169.5
156.1
0.06
%
^National Air Cargo Holdings Inc
Air Transportation
Term Loan
Prime plus 2.75%
5/20/2026
1,250.0
1,180.4
1,154.0
0.47
%
^Dedicated Incorporated
Administrative and Support Services
Term Loan
Prime plus 2.75%
5/18/2041
46.5
45.9
45.8
0.02
%
^J&A Laundromat Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/18/2026
67.5
63.7
55.2
0.02
%
^HBA LLC dba Palmetto Twist-Vista
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/18/2026
22.5
21.2
18.4
0.01
%
^Studio Find It Georgia Inc
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
5/13/2026
22.5
21.2
18.5
0.01
%
^FJN Catering Inc
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
5/13/2041
262.5
259.6
265.9
0.11
%
^LED Lighting Enterprises LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
5/13/2026
22.5
21.2
18.4
0.01
%
^J. Harris Trucking, LLC
Truck Transportation
Term Loan
Prime plus 2.75%
5/13/2026
60.0
40.8
36.7
0.01
%
^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
0.02
%
^Pumpkin Patch Inc and Christine Feliciano and Antonio Feliciano
Social Assistance
Term Loan
Prime plus 2.75%
5/12/2041
132.5
130.8
128.6
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
51.9
43.7
0.02
%
^Sabir Inc. dba Bear Diner
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
5/11/2041
123.8
122.4
123.7
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
21.2
17.9
0.01
%
^Warner Home Comfort, LLC dba Smith Piping
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/29/2041
82.5
81.3
80.1
0.03
%
^Keller, Fishback & Jackson LLP
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
4/29/2026
131.8
121.6
122.1
0.05
%
^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
21.1
17.8
0.01
%
^Alpha Omega Trucking LLC
Truck Transportation
Term Loan
Prime plus 2.75%
4/29/2041
175.8
174.1
179.9
0.07
%
^May-Craft Fiberglass Products Inc
Transportation Equipment Manufacturing
Term Loan
Prime plus 2.75%
4/29/2041
247.5
244.0
252.2
0.10
%
24
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Euro Car Miami LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
4/29/2026
62.5
58.7
58.9
0.02
%
^Hard Exercise Works Winter Park LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
4/29/2026
40.8
38.2
32.2
0.01
%
^La Nopalera Mexicano 2, Inc.
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/29/2026
125.5
116.1
116.5
0.05
%
^Loriet LLC
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
4/29/2026
7.5
7.0
5.9
—
%
^Empowerschool LLC and Empower Autism Academy, LLC
Social Assistance
Term Loan
Prime plus 2.75%
4/29/2041
151.9
149.7
154.7
0.06
%
^Scoler LLC dba Gold's Gym
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
4/29/2026
262.5
246.2
218.0
0.09
%
^Inner Beauty Salon and Suite LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
4/28/2041
65.0
64.1
65.6
0.03
%
^Atlantic Restaurant Associates LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
4/28/2041
262.5
258.7
262.0
0.11
%
^Costume World Inc
Clothing and Clothing Accessories Stores
Term Loan
Prime plus 2.75%
4/28/2041
1,250.0
1,234.2
1,275.9
0.52
%
^North American Manufacturing Company
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
4/28/2026
160.0
150.1
150.6
0.06
%
^Pecos Inn LLC dba Econo Lodge
Accommodation
Term Loan
Prime plus 2.75%
4/28/2041
677.5
665.6
673.6
0.27
%
^Shepherd Appraisal Services LLC dba Property Damage Appraisers of Oklahoma
Real Estate
Term Loan
Prime plus 2.75%
4/28/2026
9.0
8.4
7.1
—
%
^Knowledge First Inc dba Magic Years of Learning
Social Assistance
Term Loan
Prime plus 2.75%
4/27/2026
80.0
75.0
70.5
0.03
%
^Green Country Filter Manufacturing LLC
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
4/27/2026
84.3
79.1
68.5
0.03
%
^Accent Comfort Services, LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/26/2026
90.0
84.4
71.1
0.03
%
^Homecare Casa Rhoda 123 Inc
Ambulatory Health Care Services
Term Loan
Prime plus 2%
4/26/2041
675.0
664.2
640.0
0.26
%
^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
246.4
233.2
0.09
%
^McIntosh Trail Management Services Organization Inc
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
4/22/2041
425.0
418.9
433.1
0.18
%
^Jande Graphics LLC dba FastSigns #103201
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
4/21/2026
56.0
52.5
44.2
0.02
%
25
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^AAA Mill Direct, Inc. dba Carpet Mill Outlets
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
4/21/2026
7.9
7.4
7.4
—
%
^Miguel Fernando Borda, P.A. dba BGR Dental
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
4/15/2026
22.5
21.1
18.4
0.01
%
^LE & JS dba Laredo Mercado Y Carniceria
Food and Beverage Stores
Term Loan
Prime plus 2.75%
4/13/2026
20.0
18.8
15.8
0.01
%
^Sushiya Inc
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/12/2026
87.5
82.1
72.2
0.03
%
^Sierra Foothill Cremation & Funeral Service, Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
4/7/2026
53.0
49.8
41.9
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
269.4
0.11
%
^KNS Early Learning Academy LLC
Social Assistance
Term Loan
Prime plus 2.75%
4/6/2041
51.0
50.3
49.2
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
69.9
58.8
0.02
%
^Duke's Cleaners Inc
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/31/2026
47.0
43.8
40.2
0.02
%
^Christian Soderquist dba Soderquist Plumbing and Heating LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2041
56.8
55.9
57.5
0.02
%
^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
58.4
49.1
0.02
%
^Vehicle Safety Supply LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/31/2026
22.5
21.0
17.6
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
387.3
360.8
0.15
%
^Gill Express Inc and Blue Speed LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/31/2041
518.0
509.8
503.4
0.20
%
^Dana A. Farley dba Independent Cabinets
Furniture and Related Product Manufacturing
Term Loan
Prime plus 2.75%
3/31/2041
67.5
66.4
68.7
0.03
%
^Wyldewood Cellars, Inc.
Beverage and Tobacco Product Manufacturing
Term Loan
Prime plus 2.75%
3/30/2041
986.8
982.8
934.3
0.38
%
^NOSO Development, LLC
Construction of Buildings
Term Loan
Prime plus 2.75%
3/30/2026
187.5
174.7
147.0
0.06
%
^Gordon Rogers and Heidi Rogers dba Stone House Motor Inn
Accommodation
Term Loan
Prime plus 2.75%
3/30/2026
22.5
21.2
21.3
0.01
%
^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
253.9
257.9
0.10
%
^MTS Car Service LLC
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
3/30/2026
10.5
9.8
8.2
—
%
26
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
87.3
75.7
0.03
%
^Barrocas Gym LLC dba Snap Fitness
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
3/29/2026
22.5
20.5
18.6
0.01
%
^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
510.7
502.6
0.20
%
^Vinmar Inc. dba Locanda Portofino
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/29/2026
81.3
75.7
63.7
0.03
%
^Lust for Life Footwear, LLC
Leather and Allied Product Manufacturing
Term Loan
Prime plus 2.75%
3/29/2026
375.0
349.3
293.9
0.12
%
^Marathon Engineering Corporation
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/28/2041
45.0
44.3
44.6
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
11.5
11.3
—
%
^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
46.6
41.7
0.02
%
^RCB Enterprises, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
3/25/2026
56.3
52.4
44.1
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
21.2
18.3
0.01
%
^Excel RP Inc
Machinery Manufacturing
Term Loan
Prime plus 2.75%
3/25/2026
125.0
116.4
104.7
0.04
%
^Lowgap Grocery & Grill LLC
General Merchandise Stores
Term Loan
Prime plus 2.75%
3/24/2041
167.5
164.9
170.4
0.07
%
^International Construction Inc
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
3/24/2041
50.0
49.3
48.2
0.02
%
^ActKnowledge, Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/24/2026
125.0
116.4
116.8
0.05
%
^Flooring Liquidators Inc and Premier Flooring Yonkers Inc and Flooring
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/24/2026
50.0
46.6
45.4
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
491.1
471.1
0.19
%
^The Youth Fountain LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/23/2026
47.5
44.3
37.2
0.02
%
^Magnation Corporation and Misha Family Trust
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
3/22/2041
101.3
100.0
103.3
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
145.5
122.5
0.05
%
27
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Precious Care LLC and Precious Care Management LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/21/2026
557.5
519.3
440.2
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
21.0
17.6
0.01
%
^Pro Tech Technology LLC
Support Activities for Transportation
Term Loan
Prime plus 2.75%
3/18/2026
7.5
7.0
5.9
—
%
^Taylors Zinn Enterprises Inc dba Eons Auto Care Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/18/2041
80.8
79.5
81.2
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
1,235.4
1,214.7
0.49
%
^Kekoa Enterprises Inc dba Signarama Sandy
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/18/2026
49.5
46.1
38.8
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
48.9
41.1
0.02
%
^Brian T Rice dba BD Logging
Forestry and Logging
Term Loan
Prime plus 2.75%
3/17/2026
15.8
14.7
13.2
0.01
%
^Evergreen Pallet LLC and Evergreen Recycle LLC
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
3/16/2026
1,039.3
968.6
865.9
0.35
%
^K Soles Corp dba Max Collections
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
3/16/2026
22.5
21.0
17.6
0.01
%
^LAN Doctors Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/16/2026
55.0
51.3
51.4
0.02
%
^Auto and Property Insurance Solutions
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
3/16/2026
16.4
15.1
12.7
0.01
%
^Demand Printing Solutions Inc.
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
3/16/2026
21.8
20.3
19.2
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
46.6
39.2
0.02
%
^HEWZ, LLC dba Hard Exercise Works
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
3/14/2026
22.5
21.0
17.6
0.01
%
^Mustafa Inc and Raouf Properties LLC
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/14/2041
75.0
73.8
75.2
0.03
%
^Country Paint and Hardware Inc
Building Material and Garden Equipment and Supplies Dealers
Term Loan
Prime plus 2.75%
3/11/2026
87.4
81.4
70.1
0.03
%
^Wilban LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/11/2026
105.0
99.1
93.8
0.04
%
28
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^ABCs & 123s Infant and Child Care Center LP
Social Assistance
Term Loan
Prime plus 2.75%
3/11/2026
11.3
10.5
8.8
—
%
^Magill Truck Line LLC and Jeff J. Ralls
Truck Transportation
Term Loan
Prime plus 2.75%
3/11/2029
210.8
200.8
180.7
0.07
%
^Dupre Capital LLC dba Fastsigns
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
3/11/2026
58.4
54.4
45.8
0.02
%
^Accuair Control Systems LLC dba Accuair Suspension
Transportation Equipment Manufacturing
Term Loan
Prime plus 2.75%
3/11/2026
150.0
139.7
120.5
0.05
%
^Fayette Computer Consulting Company
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/10/2026
22.5
21.0
18.6
0.01
%
^State Painting & Decorating Co., Inc.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/10/2026
103.8
96.6
81.3
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
516.7
511.9
0.21
%
^Step Up Academy of the Arts LLC
Educational Services
Term Loan
Prime plus 2.75%
3/9/2026
8.0
7.5
6.3
—
%
^A & A Auto Care LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/9/2026
12.2
11.3
10.8
—
%
^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
21.0
19.0
0.01
%
^Swerve Salon LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/8/2026
79.0
73.6
61.9
0.03
%
^J & W Hardwood Flooring Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/7/2026
7.5
7.0
5.9
—
%
^Labmates LLC and POV Holdings LLC
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/4/2041
109.3
107.5
111.1
0.05
%
^Hueston and Company CPA LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/4/2026
8.3
7.6
6.5
—
%
^Almost Home Daycare LLC
Social Assistance
Term Loan
Prime plus 2.75%
3/3/2026
50.0
46.6
45.5
0.02
%
^Miles of Smiles Inc
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/2/2026
93.5
88.7
76.4
0.03
%
^Johnson & Dugan Insurance Services Corp
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
2/28/2026
62.5
57.8
48.7
0.02
%
^Living Essentials HVAC Corp
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/28/2026
15.0
13.9
11.8
—
%
^Consulting Solutions, Inc. and Mark Luciani
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
2/28/2026
11.3
10.4
10.2
—
%
29
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
133.8
136.5
0.06
%
^Powerpits CS1, LLC dba Pita Pit
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/28/2026
18.8
17.3
15.5
0.01
%
^Drug Detection Laboratories, Inc. and Minh Tran
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
2/28/2026
19.8
18.3
15.7
0.01
%
^Doxa Deo Inc dba Luv 2 Play
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
2/28/2026
105.0
101.5
88.6
0.04
%
^Blackstones Hairdressing LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/23/2026
52.0
48.5
41.2
0.02
%
^Aaradhya LLC dba Market Square Laundry
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/23/2026
80.0
74.0
62.3
0.03
%
^R-No-Landscaping LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/19/2026
8.3
7.6
6.6
—
%
^BER Enterprise 332 Inc dba Edible Arrangements
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/19/2026
22.5
20.8
17.7
0.01
%
^R & K Contracting Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/18/2026
15.8
14.6
14.3
0.01
%
^Pacific Coast Medical Group LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
2/17/2026
245.0
226.5
227.3
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
58.1
49.0
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
294.5
269.3
0.11
%
^Ei3 Corporation
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
2/12/2026
326.9
302.4
303.2
0.12
%
^Jersey Shore Marina & Boat Sales, Inc.
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
2/12/2041
625.0
615.1
635.6
0.26
%
^Base USA, Inc.
Clothing and Clothing Accessories Stores
Term Loan
Prime plus 2.75%
2/2/2026
50.0
46.3
46.4
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
98.1
98.4
0.04
%
^Zouk Ltd dba Palma
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/29/2026
22.5
20.7
20.7
0.01
%
^SuzyQue's LLC dba SuzyQue's
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/28/2026
22.5
20.7
20.8
0.01
%
^Wildflour Bakery & Cafe LLC
Social Assistance
Term Loan
Prime plus 2.75%
1/28/2026
62.5
57.4
56.2
0.02
%
30
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Tammy Lavertue
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
Term Loan
Prime plus 2.75%
1/28/2026
11.3
10.3
10.0
—
%
^New Image Building Services, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
1/19/2026
83.1
76.4
67.8
0.03
%
^Oak Tree Storage LLC
Other Information Services
Term Loan
Prime plus 2.75%
1/19/2026
78.8
72.3
62.1
0.03
%
^Gendron Funeral and Cremation Services, Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/11/2041
112.5
108.9
112.6
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
66.6
68.8
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
102.6
90.0
0.04
%
^MCF Forte LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/29/2025
18.8
17.1
14.6
0.01
%
^Panditos LLC dba White Lotus Home
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
12/28/2025
15.9
14.5
12.2
—
%
^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
1,140.4
962.9
0.39
%
^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
100.4
100.3
0.04
%
^800 on the Trax LLC and Matrix Z LLC
Nonmetallic Mineral Product Manufacturing
Term Loan
Prime plus 2.75%
12/23/2040
240.0
236.2
234.2
0.10
%
^V2 Tango LLC dba Palette 22
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/23/2025
250.0
228.1
198.6
0.08
%
^Optima Health Care Inc
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/23/2025
62.5
57.0
57.2
0.02
%
^Joyce Outdoor Advertising Chicago LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/22/2040
300.0
295.7
291.5
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
89.2
89.4
0.04
%
^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
828.3
836.5
0.34
%
^B&B Organics LLC
Beverage and Tobacco Product Manufacturing
Term Loan
Prime plus 2.75%
12/22/2040
375.0
367.2
379.3
0.15
%
^Hattingh Incorporated dba Prosthetic Care Facility
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/21/2025
18.0
16.4
14.6
0.01
%
31
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
1,003.7
1,036.8
0.42
%
^Trip Consultants U.S.A. Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/18/2025
175.0
159.7
134.3
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
68.3
59.3
0.02
%
^Accent Tag and Label Inc
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
12/18/2040
665.8
649.3
646.6
0.26
%
^Capital Scrap Metal LLC
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
12/18/2025
36.0
32.8
28.1
0.01
%
^Labmates LLC
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
12/18/2040
162.5
159.1
164.4
0.07
%
^Abbondanza Market LLC dba Hampton Falls Village Market
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/18/2025
73.8
61.4
53.5
0.02
%
^Sourceco Limited Liability Company
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
12/17/2025
62.5
57.5
50.3
0.02
%
^Mustafa Inc dba Adiba Grocery
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/17/2025
103.8
95.1
94.9
0.04
%
^Learning Skills LLC and Christopher Shrope
Educational Services
Term Loan
Prime plus 2.75%
12/17/2025
10.8
9.9
8.3
—
%
^New York Home Health Care Equipment, LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/16/2025
875.0
801.2
788.1
0.32
%
^Moments to Remember USA LLC dba Retain Loyalty
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
12/16/2025
75.0
68.5
64.1
0.03
%
^JAG Unit 1, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/16/2025
250.0
228.1
191.8
0.08
%
^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
0.03
%
^Abitino's JFK LLC dba Abitino's
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/16/2022
125.0
109.9
97.7
0.04
%
^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
368.6
374.8
0.15
%
^SDA Holdings LLC and Les Cheveux Salon Inc
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/15/2040
428.8
421.0
412.2
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
114.0
99.5
0.04
%
^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
20.5
19.5
0.01
%
32
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Basista Family Limited Partnership and UPE, Inc.
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
12/14/2040
342.5
335.4
332.6
0.14
%
^Tri-State Remodeling & Investments, LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/11/2025
15.9
14.5
14.1
0.01
%
^AGR Foodmart Inc
Gasoline Stations
Term Loan
Prime plus 2.75%
12/11/2025
22.5
20.5
19.5
0.01
%
^ENI Inc. dba ENI Group, Inc
Other Information Services
Term Loan
Prime plus 2.75%
12/11/2025
36.0
32.8
29.1
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
45.3
46.8
0.02
%
^Cares, Inc dba Dumpling Grounds Day Care Center
Social Assistance
Term Loan
Prime plus 2.75%
12/10/2025
7.5
6.8
6.8
—
%
^Custom Exteriors, Inc.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/9/2025
100.0
91.2
79.9
0.03
%
^Sushiya, Inc.
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/8/2025
108.8
99.2
87.2
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
32.3
27.2
0.01
%
^Food & Fuel Company LLC dba Lowery Food Mart
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/4/2040
122.5
120.0
123.8
0.05
%
^Blue Ox Trucking Inc.
Truck Transportation
Term Loan
Prime plus 2.75%
12/4/2025
12.3
6.4
6.4
—
%
^LC Blvd Holdings LLC and Mt Pleasant Wash & Wax LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/4/2040
502.5
492.1
495.3
0.20
%
^American Campgrounds LLC dba Whit's End Campground
Accommodation
Term Loan
Prime plus 2.75%
12/4/2040
293.0
286.9
289.4
0.12
%
^Tariq, LLC dba 76 Food Mart
Gasoline Stations
Term Loan
Prime plus 2.75%
12/2/2040
375.0
367.2
370.0
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
52.8
51.9
51.5
0.02
%
^Delta Aggregate, LLC
Mining (except Oil and Gas)
Term Loan
Prime plus 2.75%
11/30/2025
100.0
93.9
94.1
0.04
%
^Block and Grinder LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/30/2025
200.0
183.6
183.4
0.07
%
^Hurshell Leon Dutton dba High Jump Party Rentals
Rental and Leasing Services
Term Loan
Prime plus 2.75%
11/30/2025
17.6
15.8
15.8
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
113.4
100.8
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
113.2
97.6
0.04
%
^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
143.4
148.0
0.06
%
33
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^State Painting and Decorating Co Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/25/2025
100.0
78.1
65.7
0.03
%
^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
20.3
17.1
0.01
%
^DWeb Studio, Inc.
Educational Services
Term Loan
Prime plus 2.75%
11/25/2025
11.3
10.2
8.6
—
%
^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
743.7
761.2
0.31
%
^Play and Learn Child Care and School Inc
Social Assistance
Term Loan
Prime plus 2.75%
11/23/2025
11.1
10.1
10.1
—
%
^Ronny Ramirez RX Corp dba Naturxheal Family Pharmacy
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
11/20/2025
89.0
81.7
70.2
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
120.0
103.0
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
238.9
223.8
0.09
%
^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
106.1
99.7
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
821.0
848.1
0.34
%
^RDT Enterprises, L.L.C.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/12/2025
22.5
20.4
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
80.7
69.7
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
115.3
112.7
0.05
%
^Jumbomarkets Inc dba Rines Jumbomarkets
Food and Beverage Stores
Term Loan
Prime plus 2.75%
11/4/2025
306.3
277.4
269.9
0.11
%
^Bisson Transportation Inc dba I & R Associates and Document Security
Truck Transportation
Term Loan
Prime plus 2.75%
10/30/2025
22.5
20.2
19.0
0.01
%
^Top Cat Ready Mix, LLC, Ples Investments LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/28/2025
711.3
639.7
561.0
0.23
%
^L.M. Jury Enterprises, Inc dba Midwest Monograms
Textile Product Mills
Term Loan
Prime plus 2.75%
10/28/2025
77.0
69.2
59.6
0.02
%
^Windsor Direct Distribution LLC
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
10/26/2025
14.3
12.8
10.8
—
%
^Financial Network Recovery
Administrative and Support Services
Term Loan
Prime plus 2.75%
10/26/2025
40.0
36.0
30.3
0.01
%
34
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Insurance Fire & Water Restorations, LLC
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
10/23/2025
22.5
20.2
19.2
0.01
%
^Jacksonville Beauty Institute Inc. dba Beauty Institute's
Educational Services
Term Loan
Prime plus 2.75%
10/23/2025
50.0
45.2
38.0
0.02
%
^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
78.6
66.1
0.03
%
^ADMO Inc dba Mid States Equipment
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
10/8/2025
22.5
20.2
17.5
0.01
%
^SCJEN Management Inc dba Bowl of Heaven
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/30/2025
71.3
64.3
57.5
0.02
%
^Naeem Khan LTD
Apparel Manufacturing
Term Loan
Prime plus 2.75%
9/30/2025
125.0
111.5
99.9
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
61.5
61.0
0.02
%
^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
703.2
661.6
0.27
%
^Bat Bridge Investments Inc dba Kalologie 360 Spa
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/30/2025
85.5
77.8
69.7
0.03
%
^Binky's Vapes LLC
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/30/2025
22.5
20.1
18.0
0.01
%
^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
139.4
145.4
0.06
%
^R.H. Hummer Jr., Inc.
Truck Transportation
Term Loan
Prime plus 2.75%
9/30/2025
375.0
350.0
342.3
0.14
%
^Joyce Outdoor Advertising LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/29/2040
234.8
230.0
238.1
0.10
%
^Greensward of Marco Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
9/28/2040
87.5
85.3
86.3
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
388.8
392.3
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
518.8
459.6
464.3
0.19
%
^South Towne Dental Center, P.C.
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/25/2025
50.0
44.6
45.1
0.02
%
^Daniel W. Stark dba Mountain Valley Lodge and RV Park
Accommodation
Term Loan
Prime plus 2.75%
9/25/2040
13.5
13.2
13.8
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
431.9
431.2
0.18
%
35
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 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%
9/25/2040
962.5
938.0
935.1
0.38
%
^Prestigious LifeCare for Seniors LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/25/2025
9.8
8.8
8.3
—
%
^St Lawrence Hotel Corp and Oheka Catering Inc dba Quality Inn
Accommodation
Term Loan
Prime plus 2.75%
9/24/2040
625.0
609.1
620.6
0.25
%
^Hagerstown Muffler, Inc. and JMS Muffler, Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/24/2040
327.5
319.2
333.7
0.14
%
^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
18.8
19.0
0.01
%
^Rutledge Enterprises Inc dba BLC Property Management
Administrative and Support Services
Term Loan
Prime plus 2.75%
9/23/2040
62.5
60.4
61.6
0.03
%
^Finish Strong Inc dba FASTSIGNS St Peters
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
9/23/2025
50.0
44.6
40.0
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
136.1
121.9
0.05
%
^Stormrider Inc dba Shirley's Stormrider Inc
Truck Transportation
Term Loan
Prime plus 2.75%
9/23/2025
67.5
61.2
54.8
0.02
%
^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
14.1
13.1
0.01
%
^Nova Solutions Inc
Furniture and Related Product Manufacturing
Term Loan
Prime plus 2.75%
9/22/2040
320.0
311.9
318.0
0.13
%
^Pine Belt Wood Products LLC
Forestry and Logging
Term Loan
Prime plus 2.75%
9/22/2040
163.8
159.6
153.7
0.06
%
^Sound Manufacturing Inc
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
9/21/2025
50.0
44.6
41.6
0.02
%
^IIoka Inc dba New Cloud Networks
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/21/2025
665.0
596.3
534.0
0.22
%
^MiJoy Inc dba Imo's Pizza
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/18/2025
8.3
7.4
6.6
—
%
^Vanderhoof LLC dba Soxfords
Apparel Manufacturing
Term Loan
Prime plus 2.75%
9/18/2025
15.9
14.2
12.7
0.01
%
^Naeem Khan LTD
Apparel Manufacturing
Term Loan
Prime plus 2.75%
9/17/2025
125.0
111.6
99.9
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
397.1
411.6
0.17
%
^FirstVitals Health and Wellness Inc
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
9/15/2025
150.0
133.8
119.9
0.05
%
^Johnson Carwash LLC and Johnson Petroleum LLC
Gasoline Stations
Term Loan
Prime plus 2.75%
9/14/2040
340.0
333.2
348.2
0.14
%
36
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Almost Home Daycare LLC
Social Assistance
Term Loan
Prime plus 2.75%
9/11/2025
62.5
55.8
55.9
0.02
%
^Veliu LLC dba FASTSIGNS #15901
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
9/10/2025
50.0
45.2
41.3
0.02
%
^B and A Friction Materials Inc
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
9/9/2025
102.5
90.3
80.9
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
136.4
142.7
0.06
%
^AIG Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/4/2040
363.8
354.5
350.3
0.14
%
^Empower Autism Academy
Social Assistance
Term Loan
Prime plus 2.75%
9/4/2040
685.0
667.6
698.0
0.28
%
^Higher Grounds Community Coffeehouse, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/2/2025
8.3
7.4
6.8
—
%
^Delray Scrap Recycling LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
8/31/2025
22.5
19.7
17.6
0.01
%
^The Camera House Inc
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
8/31/2025
1,250.0
1,107.1
1,052.4
0.43
%
^LAN Doctors Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
8/28/2025
81.3
72.0
68.0
0.03
%
^Elite Institute LLC dba Huntington Learning Center
Educational Services
Term Loan
Prime plus 2.75%
8/28/2025
15.0
13.5
12.0
—
%
^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
74.6
67.9
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
92.3
95.0
0.04
%
^Trading Group 3 Inc
Nonstore Retailers
Term Loan
Prime plus 2.75%
8/28/2025
50.0
44.0
39.4
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
537.8
538.2
0.22
%
^3000 CSI Property LLC and Consulting Solutions Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
8/20/2040
137.5
133.8
138.5
0.06
%
^God Be Glorified Inc dba GBG Inc
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
8/20/2025
53.0
46.9
42.0
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
141.1
143.1
0.06
%
^Screenmobile Management Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
8/14/2025
47.0
41.6
37.5
0.02
%
37
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Gold Jet Corp.
Couriers and Messengers
Term Loan
Prime plus 2.75%
8/14/2025
68.3
63.8
60.3
0.02
%
^SKJ Inc dba Subway
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
8/13/2025
84.8
75.1
68.0
0.03
%
^LP Industries Inc dba Childforms
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
7/29/2025
125.0
111.9
107.9
0.04
%
^Advanced Machine & Technology, Inc.
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
7/29/2025
90.3
79.3
75.8
0.03
%
^Pauley Tree and Lawn Care Inc
Administrative and Support Services
Term Loan
Prime plus 2.75%
7/28/2025
65.8
57.9
54.1
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
58.2
53.7
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
86.9
82.6
0.03
%
^Pooh's Corner Realty LLC and Pooh's Corner Inc
Social Assistance
Term Loan
Prime plus 2.75%
7/23/2040
103.8
100.9
105.0
0.04
%
^Smart Artists Inc.
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
7/23/2025
22.5
19.8
17.7
0.01
%
^Free Ion Advisors LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
7/21/2025
64.3
56.5
50.6
0.02
%
^Murrayville Donuts, Inc dba Dunkin' Donuts
Food and Beverage Stores
Term Loan
Prime plus 2.75%
7/15/2040
344.5
338.5
338.5
0.14
%
^Union 2 LLC dba The Standard
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/10/2025
91.5
84.1
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
206.1
210.0
0.09
%
^The Smile Place LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/30/2040
283.9
275.3
281.2
0.11
%
^Jonathan E Nichols and Nichols Fire and Security LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
6/30/2025
75.0
65.4
63.9
0.03
%
^Thrifty Market, Inc. dba Thrifty Foods
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/30/2030
262.5
243.6
228.7
0.09
%
^All About Smiles P A
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/30/2040
237.7
230.5
235.4
0.10
%
^Danny V, LLC dba Hugo's Taproom
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/30/2040
54.0
48.6
47.6
0.02
%
^Anglin Cultured Stone Products LLC dba Anglin Construction
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/30/2025
281.8
245.7
227.6
0.09
%
38
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 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
294.3
267.0
0.11
%
^Summit Beverage Group LLC
Beverage and Tobacco Product Manufacturing
Term Loan
Prime plus 2.75%
8/29/2030
291.9
271.2
258.5
0.10
%
^Myclean Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/29/2025
15.9
13.9
12.4
0.01
%
^E & G Enterprises LLC dba Comfort Keepers
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/26/2025
22.5
19.6
17.6
0.01
%
^SofRep, Inc dba Force 12 Media
Other Information Services
Term Loan
Prime plus 2.75%
6/26/2025
66.3
57.8
51.7
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
19.0
19.3
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
368.5
373.3
0.15
%
^CEM Autobody LLC dba Dawn's Autobody
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/26/2040
135.5
131.4
132.0
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
239.0
233.0
0.09
%
^Ohs Auto Body, Inc. dba Ohs Body Shop
Repair and Maintenance
Term Loan
7.34%
6/25/2040
1,207.5
1,182.5
963.0
0.39
%
^Evinger PA One, Inc. dba Postal Annex, Falcon
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
6/24/2025
22.5
19.6
18.4
0.01
%
^Amboy Group, LLC dba Tommy's Moloney's
Food Manufacturing
Term Loan
Prime plus 2.75%
6/24/2025
454.0
401.9
405.7
0.16
%
^Richards Plumbing and Heating Co., Inc. dba Richards Mechanical
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/23/2040
551.8
535.1
559.2
0.23
%
^RJI Services, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
6/23/2025
22.5
19.5
17.4
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
46.3
46.2
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
13.0
11.6
—
%
^KRN Logistics, LLC,Newsome Trucking, Inc
Truck Transportation
Term Loan
Prime plus 2.75%
6/19/2025
543.5
474.1
448.8
0.18
%
^Inverted Healthcare Staffing of Florida LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/18/2025
61.3
53.4
47.8
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
20.3
20.5
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
381.6
382.6
0.16
%
39
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
84.2
87.1
0.04
%
^Nelson Sargsyan dba HDA Trucking
Support Activities for Transportation
Term Loan
Prime plus 2.75%
6/16/2025
130.5
113.8
101.8
0.04
%
^Anturio Marketing Inc dba Logic Consulting
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
6/12/2040
290.3
281.5
294.2
0.12
%
^Mirage Plastering Inc and Mpire LLC and Mpire II LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
6/12/2040
338.8
132.6
127.8
0.05
%
^Bizzare Foods Inc dba Trooper Foods
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
6/12/2025
125.0
105.5
94.4
0.04
%
^Eldredge Tavern LLC dba Gonyea's Tavern
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/8/2040
56.3
54.5
57.0
0.02
%
^Nicor LLC dba Fibrenew Sacramento
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/5/2022
13.8
11.0
9.8
—
%
^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
13.7
12.3
—
%
^ViAr Visual Communications, Inc. dba Fastsigns 281701
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/5/2025
62.0
54.1
49.3
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
87.8
91.8
0.04
%
^Medworxs LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
6/3/2025
125.0
109.0
98.2
0.04
%
^DTM Parts Supply Inc.
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
6/2/2025
62.8
54.8
49.1
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
7.1
6.4
—
%
^God is Good LLC dba BurgerFi
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
5/27/2025
67.3
14.6
14.7
0.01
%
^Villela CPA PL
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
5/27/2025
9.0
7.8
7.2
—
%
^Pen Tex Inc dba The UPS Store
Administrative and Support Services
Term Loan
Prime plus 2.75%
5/20/2025
22.0
19.1
17.1
0.01
%
^Douglas Posey and Sally Watkinson dba Audrey's Farmhouse
Accommodation
Term Loan
Prime plus 2.75%
5/20/2040
174.1
168.6
173.2
0.07
%
^Capstone Pediatrics PLLC and Capstone Healthcare Consulting LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
5/15/2025
717.3
622.9
568.2
0.23
%
^15 McArdle LLC and No Other Impressions Inc
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
5/15/2040
257.1
248.9
246.4
0.10
%
40
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^E-Z Box Storage, Inc.
Real Estate
Term Loan
Prime plus 2.75%
5/11/2025
89.3
71.6
72.3
0.03
%
^Guard Dogs MFS LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/8/2025
65.0
56.3
50.7
0.02
%
^George S Cochran DDS Inc
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
5/7/2025
130.0
112.5
100.9
0.04
%
^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
164.0
171.4
0.07
%
^Matthew Taylor and Landon Farm LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
5/4/2040
100.0
97.5
93.2
0.04
%
^Cares Inc dba Dumpling Grounds Day Care Center
Social Assistance
Term Loan
Prime plus 2.75%
5/1/2040
81.9
78.4
82.0
0.03
%
^RDRhonehouse ENT. LLC dba Chill Skinz
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
4/29/2025
88.9
79.8
71.4
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
12.9
11.5
—
%
^Ragazza Restaurant Group, Inc. dba Bambolina
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/21/2025
22.5
19.3
17.9
0.01
%
^Diamond Solutions LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
4/21/2025
22.5
18.7
16.8
0.01
%
^Giacchino Maritime Consultants Inc
Personal and Laundry Services
Term Loan
Prime plus 2.75%
4/17/2025
22.5
19.3
17.3
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
38.1
34.1
0.01
%
^Carolina Beefs, LLC dba Beef O'Brady's
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/13/2025
19.5
16.7
15.0
0.01
%
^Faramarz Nikourazm dba Car Clinic Center
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/3/2040
73.8
71.1
71.9
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
735.0
721.7
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
131.5
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
219.8
220.9
0.09
%
^Mid-South Lumber Co. of Northwest Florida, Inc.
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
3/31/2040
428.8
413.7
404.6
0.16
%
^Copper Beech Financial Group LLC
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
3/30/2025
125.0
106.5
101.1
0.04
%
41
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Delta Aggregate LLC
Mining (except Oil and Gas)
Term Loan
Prime plus 2.75%
3/30/2025
90.0
82.2
82.9
0.03
%
^Sunset Marine Resort LLC and GoXpeditions LLC
Accommodation
Term Loan
Prime plus 2.75%
3/27/2040
301.8
291.2
304.2
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
90.8
87.2
0.04
%
^Foresite Realty Partners LLC and Foresite Real Estate Holdings LLC
Real Estate
Term Loan
Prime plus 2.75%
3/27/2025
1,238.3
1,054.6
943.0
0.38
%
^Shellhorn and Hill Inc dba Total Fleet Service
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/27/2040
1,040.3
999.9
978.0
0.40
%
^South Florida Air Conditioning and Refrigeration Corp.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/27/2040
155.5
150.1
155.1
0.06
%
^Geo Los Angeles LLC dba Geo Film Group
Rental and Leasing Services
Term Loan
Prime plus 2.75%
3/26/2025
130.0
110.8
105.9
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
52.1
54.0
0.02
%
^Zero-In Media Inc
Data Processing, Hosting, and Related Services
Term Loan
Prime plus 2.75%
3/25/2025
22.5
19.2
17.1
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
781.6
812.8
0.33
%
^Loriet LLC
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
3/24/2025
12.0
10.2
9.1
—
%
^Shelton Incorporated dba Mrs. Winners
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/20/2040
112.5
108.6
113.1
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
41.5
41.8
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
82.5
86.1
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
155.1
155.4
0.06
%
^Royal Crest Motors LLC
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
3/16/2040
91.3
88.0
89.4
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
166.5
170.8
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
185.0
185.4
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
9.6
9.7
—
%
42
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 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 and Transmission Solutions Group
Broadcasting (except Internet)
Term Loan
Prime plus 2.75%
2/27/2025
952.8
818.5
757.1
0.31
%
^Baystate Firearms and Training, LLC
Educational Services
Term Loan
Prime plus 2.75%
2/27/2025
63.4
53.4
48.1
0.02
%
^Road to Sedona Inc dba Thirteen
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/27/2025
56.6
28.0
25.6
0.01
%
^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
1,204.2
1,257.9
0.51
%
^Pace Motor Lines, Inc.
Truck Transportation
Term Loan
Prime plus 2.75%
2/26/2025
66.2
55.9
56.4
0.02
%
^Nelson Financial Services LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
2/24/2025
12.5
10.5
9.4
—
%
^Kiddie Steps 4 You Inc.
Social Assistance
Term Loan
Prime plus 2.75%
2/19/2040
61.8
59.7
59.6
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
62.8
59.3
0.02
%
^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
165.4
165.2
0.07
%
^740 Barry Street Realty LLC and Wild Edibles Inc
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
2/10/2040
492.5
474.4
495.6
0.20
%
^Kostekos Inc dba New York Style Pizza
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/6/2040
66.3
63.8
64.5
0.03
%
^DuCharme Realty LLC and DuCharme Enterprises LLC
Wood Product Manufacturing
Term Loan
Prime plus 2.75%
2/2/2040
225.1
216.9
214.8
0.09
%
^Limameno LLC dba Sal's Italian Ristorante
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/23/2025
83.3
69.7
63.8
0.03
%
^Palmabak Inc dba Mami Nora's
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/22/2025
21.5
15.1
15.2
0.01
%
^Jung Design Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
1/20/2022
8.4
6.2
5.5
—
%
^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
127.9
132.4
0.05
%
^Bear Creek Entertainment, LLC dba The Woods at Bear Creek
Accommodation
Term Loan
Prime plus 2.75%
12/30/2024
106.3
88.2
89.0
0.04
%
^Evans and Paul LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
12/30/2024
223.8
185.9
184.0
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
237.1
233.5
0.09
%
43
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^First Prevention and Dialysis Center, LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/30/2024
273.3
244.0
237.5
0.10
%
^Bowlerama Inc
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
12/24/2039
1,202.5
1,156.1
1,207.2
0.49
%
^401 JJS Corporation and G. Randazzo Corporation
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/23/2039
473.5
458.6
471.4
0.19
%
^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
509.1
498.7
0.20
%
^Thermoplastic Services Inc and Paragon Plastic Sheet, Inc
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
12/23/2039
500.0
480.0
501.2
0.20
%
^Carolina Flicks Inc dba The Howell Theater
Motion Picture and Sound Recording Industries
Term Loan
Prime plus 2.75%
12/23/2032
163.3
151.6
149.8
0.06
%
^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
211.9
221.2
0.09
%
^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
155.8
145.0
0.06
%
^MM and M Management Inc dba Pizza Artista
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/19/2025
46.3
39.5
35.9
0.01
%
^B.S. Ventures LLC dba Dink's Market
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
12/19/2039
53.8
51.6
53.9
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
1,039.6
936.6
0.38
%
^B & W Towing, LLC and Boychucks Fuel LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/17/2039
164.5
159.8
159.2
0.06
%
^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
332.3
310.9
0.13
%
^Kemmer LLC and Apples Tree Top Liquors LLC
Food and Beverage Stores
Term Loan
Prime plus 2.75%
12/4/2039
138.4
132.8
131.2
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
45.5
42.2
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
143.0
143.7
0.06
%
^DeRidder Chiropractic LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
11/25/2024
13.2
10.9
10.9
—
%
^Modern Manhattan LLC
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
11/25/2024
220.0
181.2
163.8
0.07
%
44
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(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
127.1
113.6
0.05
%
^Legacy Estate Planning Inc dba American Casket Enterprises
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/21/2024
42.0
34.6
30.9
0.01
%
^J&D Resources, LLC dba Aqua Science
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/21/2024
767.9
626.6
569.4
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
115.0
118.0
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
58.1
56.2
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
196.1
197.3
0.08
%
^Joey O's LLC and Jennifer Olszewski
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/7/2024
13.1
0.8
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
458.3
468.9
0.19
%
^Golden Transaction Corporation dba Bleh Sunoco
Gasoline Stations
Term Loan
Prime plus 2.75%
10/30/2039
156.7
149.9
154.7
0.06
%
^Seelan Inc dba Candleridge Market
Gasoline Stations
Term Loan
Prime plus 2.75%
10/27/2039
90.5
86.6
86.9
0.04
%
^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
85.3
84.2
0.03
%
^One Hour Jewelry Repair Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/14/2024
20.6
16.8
15.0
0.01
%
^DNT Storage and Properties LLC
Real Estate
Term Loan
Prime plus 2.75%
10/10/2039
101.8
97.3
100.6
0.04
%
^Capitol Waste and Recycling Services LLC
Waste Management and Remediation Services
Term Loan
Prime plus 2.75%
10/10/2024
257.8
210.7
198.2
0.08
%
^Sound Manufacturing Inc
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
10/10/2024
187.5
153.2
142.1
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
1,209.4
1,262.8
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
57.4
58.5
0.02
%
^Doctors Express Management of Central Texas LLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
10/8/2024
105.0
75.9
74.8
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
119.4
122.8
0.05
%
^Sumad LLC dba BrightStar Care of Encinitas
Administrative and Support Services
Term Loan
Prime plus 2.75%
10/2/2024
92.5
43.4
43.8
0.02
%
45
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
95.5
101.5
0.04
%
^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
244.3
256.0
0.10
%
^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
311.5
331.4
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
491.2
522.6
0.21
%
^Keys Phase One LLC dba The Grand Guesthouse
Accommodation
Term Loan
Prime plus 2.75%
9/26/2039
736.3
703.2
744.0
0.30
%
^Colts V LLC and Nowatzke Service Center, Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/26/2039
601.8
577.6
610.4
0.25
%
^Gordon E Rogers dba Stonehouse Motor Inn
Accommodation
Term Loan
Prime plus 2.75%
9/26/2039
57.5
54.9
58.4
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
18.2
18.1
0.01
%
^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
152.1
160.8
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
432.9
449.6
0.18
%
^R A Johnson Inc dba Rick Johnson Auto and Tire
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/23/2039
301.3
287.7
306.1
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
37.8
28.5
28.0
0.01
%
^Ryan Crick and Pamela J. Crick and Crick Enterprises Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/17/2039
145.5
139.0
147.8
0.06
%
^Modern Leather Goods Repair Shop Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/17/2024
58.8
47.1
46.3
0.02
%
^Tavern Properties LLC and Wildwood Tavern LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/15/2039
425.0
408.6
431.7
0.18
%
^RDT Enterprises LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
9/15/2027
162.8
141.2
144.9
0.06
%
^Animal Intrusion Prevention Systems Holding Company, LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
9/15/2024
272.5
221.8
221.1
0.09
%
^KW Zion, LLC and Key West Gallery Inc
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/12/2039
1,250.0
1,193.9
1,262.9
0.51
%
^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
510.3
501.9
0.20
%
^B&P Diners LLC dba Engine House Restaurant
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/10/2024
80.0
64.8
63.6
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
42.0
41.6
0.02
%
46
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Delta Aggregate LLC
Mining (except Oil and Gas)
Term Loan
Prime plus 2.75%
8/28/2039
911.3
862.4
917.5
0.37
%
^Lamjam LLC Goldsmith Lambros Inc
Clothing and Clothing Accessories Stores
Term Loan
Prime plus 2.75%
8/27/2024
133.8
107.6
109.9
0.04
%
^Orange County Cleaning Inc
Administrative and Support Services
Term Loan
Prime plus 2.75%
8/27/2024
41.3
29.7
29.1
0.01
%
^Qycell Corporation
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
8/26/2024
121.0
97.1
97.2
0.04
%
^Atlas Auto Body Inc dba Atlas Auto Sales
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/22/2039
51.6
49.1
51.6
0.02
%
^Katie Senior Care LLC dba Home Instead Senior Care
Social Assistance
Term Loan
Prime plus 2.75%
8/15/2024
124.3
99.7
97.9
0.04
%
^Alpha Preparatory Academy LLC
Social Assistance
Term Loan
Prime plus 2.75%
8/15/2039
145.2
139.0
147.9
0.06
%
^S&P Holdings of Daytona LLC S&P Corporation of Daytona Beach db
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
8/15/2039
433.5
401.1
426.7
0.17
%
^Almost Home Property LLC and Almost Home Daycare LLC
Social Assistance
Term Loan
Prime plus 2.75%
8/7/2039
715.8
683.4
725.0
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
43.6
43.1
0.02
%
^iFood, Inc. dba Steak N Shake
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/31/2024
379.1
313.3
313.5
0.13
%
^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
21.0
22.4
0.01
%
^L&S Insurance & Financial Services Inc
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
7/25/2024
22.5
17.9
17.6
0.01
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
Truck Transportation
Term Loan
Prime plus 2.75%
7/24/2039
150.0
142.8
151.8
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
96.6
101.9
0.04
%
^AMG Holding, LLC and Stetson Automotive, Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/30/2039
208.0
197.6
210.1
0.09
%
^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
78.8
80.4
0.03
%
^Highway Striping Inc
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
6/30/2024
53.1
41.9
41.6
0.02
%
^Honeyspot Investors LLP and Pace Motor Lines Inc
Truck Transportation
Term Loan
Prime plus 2.75%
6/30/2039
875.3
833.1
885.3
0.36
%
^iFood, Inc. dba Steak N Shake
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/30/2039
629.8
599.0
622.9
0.25
%
47
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
305.8
322.5
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
87.1
87.6
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
0.06
%
^Nikobella Properties LLC and JPO Inc dba Village Car Wash
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/25/2039
476.3
454.0
479.4
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
221.7
233.9
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
265.5
270.7
0.11
%
^Nirvi Enterprises LLC dba Howard Johnson / Knights Inn
Accommodation
Term Loan
Prime plus 2.75%
6/17/2039
920.3
874.3
929.6
0.38
%
^Hotels of North Georgia LLC dba Comfort Inn and Suites
Accommodation
Term Loan
Prime plus 2.75%
6/17/2039
837.5
795.7
846.0
0.34
%
^Global Educational Delivery Services LLC
Educational Services
Term Loan
Prime plus 2.75%
6/16/2024
60.0
47.9
48.9
0.02
%
^Rainbow Dry Cleaners
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/13/2024
122.5
96.6
96.1
0.04
%
^NVR Corporation dba Discount Food Mart
Food and Beverage Stores
Term Loan
Prime plus 2.75%
6/11/2039
68.3
63.0
67.0
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
89.0
94.7
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
17.7
17.6
0.01
%
^Long Island Barber + Beauty LLC
Educational Services
Term Loan
Prime plus 2.75%
6/2/2039
55.5
52.7
55.5
0.02
%
^CJR LLC and PowerWash Plus, Inc.
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/30/2024
53.0
41.4
41.9
0.02
%
^Pocono Coated Products, LLC
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
5/30/2024
22.5
17.6
17.8
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
15.1
15.0
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
895.1
951.7
0.39
%
^Wilton Dental Care P.C.
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
5/29/2024
128.1
102.2
100.7
0.04
%
^Jonesboro Health Food Center LLC
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
5/27/2024
60.0
46.9
46.1
0.02
%
48
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^USI Properties LLC dba U Store It
Real Estate
Term Loan
Prime plus 2.75%
5/23/2039
144.6
137.1
145.6
0.06
%
^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
128.3
136.4
0.06
%
^Hae M. and Jin S. Park dba Buford Car Wash
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/15/2039
166.5
157.2
164.8
0.07
%
^Moochie's LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
5/13/2024
100.5
79.5
78.5
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
85.7
90.4
0.04
%
^AS Boyals LLC dba Towne Liquors
Food and Beverage Stores
Term Loan
Prime plus 2.75%
4/29/2039
117.5
111.2
118.3
0.05
%
^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
386.9
380.0
0.15
%
^Gerami Realty, LC Sherrill Universal City Corral, LP
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/23/2027
78.8
66.4
68.4
0.03
%
^Complete Body & Paint, Inc.
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/23/2039
20.8
19.7
20.9
0.01
%
^Island Wide Realty LLC and Long Island Partners, Inc.
Real Estate
Term Loan
Prime plus 2.75%
4/22/2039
103.8
98.3
104.6
0.04
%
^Wilshire Media Systems Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
4/17/2024
186.3
144.3
142.7
0.06
%
^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
129.2
136.8
0.06
%
^Dantanna's Tavern LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/30/2024
164.3
128.1
127.5
0.05
%
^Little People's Village II LLC and Iliopoulos Realty LLC
Social Assistance
Term Loan
Prime plus 2.75%
3/31/2039
92.1
87.6
91.5
0.04
%
^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
424.3
448.5
0.18
%
^RDT Enterprises, LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/31/2028
141.2
122.2
126.5
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
96.6
100.9
0.04
%
^Eagle Aggregate Transportation, LLC and Eagle Pneumatic Transport LLC
Truck Transportation
Term Loan
Prime plus 2.75%
3/31/2024
1,250.0
574.9
586.0
0.24
%
^Kemmer, LLC and Pitts Package Store, Inc.
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/31/2039
117.5
111.2
115.1
0.05
%
^Wilban LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/28/2039
427.5
406.1
428.6
0.17
%
49
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Lake Area Autosound LLC and Ryan H. Whittington
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
7/28/2039
125.0
119.8
126.1
0.05
%
^Hascher Gabelstapler Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/26/2024
143.3
111.6
112.5
0.05
%
^Knowledge First Inc dba Magic Years of Learning and Kimberly Knox
Social Assistance
Term Loan
Prime plus 2.75%
3/21/2039
145.0
137.2
143.9
0.06
%
^Cormac Enterprises and Wyoming Valley Beverage Incorporated
Food and Beverage Stores
Term Loan
Prime plus 2.75%
3/20/2039
110.8
104.8
111.4
0.05
%
^Kinisi, Inc. dba The River North UPS Store
Administrative and Support Services
Term Loan
Prime plus 2.75%
3/18/2024
41.3
24.5
24.8
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
386.6
410.9
0.17
%
^Tortilla King Inc.
Food Manufacturing
Term Loan
Prime plus 2.75%
3/14/2039
216.9
205.8
214.9
0.09
%
^Tortilla King, Inc.
Food Manufacturing
Term Loan
Prime plus 2.75%
3/14/2029
1,033.1
913.5
931.0
0.38
%
^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
211.2
224.4
0.09
%
^Avayaan2 LLC dba Island Cove
Gasoline Stations
Term Loan
Prime plus 2.75%
3/7/2039
157.5
148.8
157.1
0.06
%
^Onofrio's Fresh Cut Inc
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
3/6/2024
75.0
57.5
58.3
0.02
%
^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
393.9
414.3
0.17
%
^Summit Beverage Group LLC
Beverage and Tobacco Product Manufacturing
Term Loan
Prime plus 2.75%
2/28/2024
350.6
266.2
267.8
0.11
%
^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
120.9
123.3
0.05
%
^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
199.1
208.8
0.08
%
^Faith Memorial Chapel LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
2/28/2039
214.2
202.4
212.1
0.09
%
^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
134.0
142.4
0.06
%
^JWB Industries, Inc. dba Carteret Die Casting
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
2/11/2024
280.0
212.6
210.4
0.09
%
^Sovereign Communications LLC
Broadcasting (except Internet)
Term Loan
Prime plus 2.75%
2/7/2024
907.8
714.1
703.6
0.29
%
^986 Dixwell Avenue Holding Company, LLC and Mughali Foods, LLC db
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/7/2039
99.1
93.9
99.0
0.04
%
50
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Awesome Pets II Inc dba Mellisa's Pet Depot
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
2/7/2024
83.2
63.9
63.4
0.03
%
^Sarah Sibadan dba Sibadan Agency
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
1/27/2039
129.4
121.8
129.1
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
105.4
105.2
0.04
%
^Icore Enterprises Inc dba Air Flow Filters Inc
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
1/15/2024
21.8
16.4
16.7
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
606.9
626.1
0.25
%
^Nutmeg North Associates LLC Steeltech Building Products Inc
Construction of Buildings
Term Loan
Prime plus 2.75%
12/31/2038
897.8
862.2
903.1
0.37
%
^CLU Amboy, LLC and Amboy Group, LLC dba Tommy Moloney's
Food Manufacturing
Term Loan
Prime plus 2.75%
12/27/2023
656.3
501.2
510.6
0.21
%
^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
303.5
317.5
0.13
%
^KK International Trading Corporation
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
12/23/2028
190.0
162.7
167.1
0.07
%
^Kurtis Sniezek dba Wolfe's Foreign Auto
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/20/2038
88.9
83.5
88.7
0.04
%
^Mosley Auto Group LLC dba America's Automotive
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/20/2038
221.5
208.1
220.4
0.09
%
^Lefont Theaters Inc.
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
12/19/2023
14.4
10.7
10.7
—
%
^PLES Investements, LLC and John Redder, Pappy Sand & Gravel, Inc.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/19/2038
555.3
521.8
547.8
0.22
%
^TAK Properties LLC and Kinderland Inc
Social Assistance
Term Loan
Prime plus 2.75%
12/18/2038
405.0
381.1
400.7
0.16
%
^Any Garment Cleaner-East Brunswick, Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
12/18/2023
53.8
40.2
40.7
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
13.8
13.8
0.01
%
^920 CHR Realty LLC V. Garofalo Carting Inc
Waste Management and Remediation Services
Term Loan
Prime plus 2.75%
12/10/2038
418.1
393.4
417.9
0.17
%
^DKB Transport Corp
Truck Transportation
Term Loan
Prime plus 2.75%
12/5/2038
138.8
130.4
138.5
0.06
%
^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
97.9
101.8
0.04
%
51
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Spectrum Development LLC and Solvit Inc & Solvit North, Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/2/2023
387.3
288.7
288.9
0.12
%
^BVIP Limousine Service LTD
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
11/27/2038
76.5
71.8
75.8
0.03
%
^Eco-Green Reprocessing LLC and Denali Medical Concepts, LLC
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
11/27/2023
67.2
49.5
48.9
0.02
%
^Wallace Holdings LLC GFA International Inc
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.5%
11/25/2023
125.0
91.8
89.9
0.04
%
^AcuCall LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
11/21/2023
15.8
11.6
11.4
—
%
^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
33.8
33.4
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
55.3
54.6
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
6.2
6.1
—
%
^Polpo Realty, LLC Polpo Restaurant, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
11/6/2038
62.5
58.7
62.3
0.03
%
^Twinsburg Hospitality Group LLC dba Comfort Suites
Accommodation
Term Loan
Prime plus 2.75%
10/31/2038
945.0
887.5
931.5
0.38
%
^Mid-Land Sheet Metal Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/31/2038
137.5
128.9
136.2
0.06
%
^Master CNC Inc & Master Properties LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
10/31/2038
596.6
558.6
582.3
0.24
%
^Janice B. McShan and The Metropolitan Day School, LLC
Social Assistance
Term Loan
Prime plus 2.75%
10/31/2023
42.8
32.1
32.7
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
199.3
210.9
0.09
%
^New Image Building Services Inc. dba New Image Repair Services
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/29/2023
331.3
241.6
239.9
0.10
%
^Greenbrier Technical Services, Inc
Repair and Maintenance
Term Loan
Prime plus 2.75%
10/24/2023
240.1
159.6
162.6
0.07
%
^Clairvoyant Realty Corp. and Napoli Marble & Granite Design, Ltd
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
10/24/2038
246.3
230.5
241.3
0.10
%
^Kelly Auto Care LLC dba Shoreline Quick Lube and Car Wash
Repair and Maintenance
Term Loan
Prime plus 2.75%
12/31/2018
87.5
63.8
62.5
0.03
%
52
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Cencon Properties LLC and Central Connecticut Warehousing Company
Warehousing and Storage
Term Loan
Prime plus 2.75%
9/30/2038
344.5
322.2
343.7
0.14
%
^Onofrios Enterprises LLC Onofrios Fresh Cut, Inc
Food Manufacturing
Term Loan
Prime plus 2.75%
9/30/2038
312.5
293.4
312.1
0.13
%
^Discount Wheel and Tire
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
9/30/2038
223.8
208.9
221.8
0.09
%
^First Steps Real Estate Company, LLC and First Steps Preschool
Social Assistance
Term Loan
Prime plus 2.75%
9/30/2038
97.6
91.2
96.6
0.04
%
^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
307.0
326.4
0.13
%
^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
113.5
121.1
0.05
%
^Mitchellville Family Dentistry, Dr. Octavia Simkins-Wiseman DDS PC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/27/2038
335.1
312.9
332.6
0.14
%
^Gabrielle Realty, LLC
Gasoline Stations
Term Loan
Prime plus 2.75%
9/27/2038
757.6
707.4
750.6
0.30
%
^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
93.4
99.6
0.04
%
^Eastside Soccer Dome, Inc .
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
9/26/2038
463.8
433.0
461.9
0.19
%
^Southeast Chicago Soccer, Inc.
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
9/26/2038
51.3
47.8
51.0
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
195.7
199.1
0.08
%
^Kiddie Steps 4 You Inc.
Social Assistance
Term Loan
Prime plus 2.75%
9/25/2038
89.3
85.0
90.0
0.04
%
^Diamond Memorials Incorporated
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/25/2023
14.3
9.3
9.4
—
%
^Faith Memorial Chapel LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/20/2038
268.4
251.0
266.8
0.11
%
^Serious-Fun in Alpharetta, LLC dba The Little Gym of Alpharetta
Educational Services
Term Loan
Prime plus 2.75%
9/20/2023
46.3
33.6
33.8
0.01
%
^Westville Seafood LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/19/2038
112.3
104.9
111.3
0.05
%
^Maynard Enterprises Inc dba Fastsigns of Texarkana
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
9/18/2023
16.1
11.7
11.8
—
%
^Grafio Inc dba Omega Learning Center-Acworth
Educational Services
Term Loan
Prime plus 2.75%
9/13/2023
156.3
119.8
120.9
0.05
%
53
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 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%
9/12/2028
54.8
46.2
47.6
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
313.9
316.5
0.13
%
^Prospect Kids Academy Inc
Educational Services
Term Loan
Prime plus 2.75%
9/11/2038
124.3
116.0
123.4
0.05
%
^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
36.9
39.4
0.02
%
^B for Brunette dba Blo
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/10/2023
53.4
39.1
39.3
0.02
%
^Schmaltz Holdings, LLC and Schmaltz Operations, LLC dba Companio
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/4/2038
224.2
208.1
220.8
0.09
%
^Excel RP Inc
Machinery Manufacturing
Term Loan
Prime plus 2.75%
8/30/2023
130.3
93.1
95.1
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
491.4
496.8
0.20
%
^ACI Northwest Inc.
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
8/30/2023
906.3
438.4
447.3
0.18
%
^Spectrum Radio Fairmont, LLC
Broadcasting (except Internet)
Term Loan
Prime plus 2.75%
8/30/2023
187.5
160.7
164.1
0.07
%
^Gulfport Academy Child Care and Learning Center, Inc.
Social Assistance
Term Loan
Prime plus 2.75%
8/30/2023
43.3
30.9
31.5
0.01
%
^Ramard Inc and Advanced Health Sciences Inc
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
8/28/2023
187.5
134.0
134.5
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
58.0
59.2
0.02
%
^JSIL LLC dba Blackstones Hairdressing
Personal and Laundry Services
Term Loan
Prime plus 2.75%
8/16/2023
19.5
13.8
13.9
0.01
%
^Island Nautical Enterprises, Inc. and Ingwall Holdings, LLC
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
8/14/2038
445.0
323.4
342.7
0.14
%
^Caribbean Concepts, Inc. dba Quick Bleach
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
8/12/2023
22.5
16.2
16.3
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
78.0
83.0
0.03
%
^Majestic Contracting Services, Inc. dba Majestic Electric and Majestic
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/26/2038
190.0
176.7
187.5
0.08
%
^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
8.0
8.1
—
%
54
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Angkor Restaurant Inc
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/19/2038
93.0
86.7
92.3
0.04
%
^Harbor Ventilation Inc and Estes Investment, LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2038
92.1
21.0
22.4
0.01
%
^Tri County Heating and Cooling Inc.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/19/2023
87.8
62.1
63.4
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
38.0
38.1
0.02
%
^Maxiflex LLC
Miscellaneous Manufacturing
Term Loan
Prime plus 2.75%
6/28/2023
153.5
107.2
109.4
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
90.5
96.5
0.04
%
^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
110.8
118.2
0.05
%
^2161 Highway 6 Trail, LLC, R. H. Hummer JR., Inc.
Truck Transportation
Term Loan
Prime plus 2.75%
6/19/2026
1,250.0
776.9
800.9
0.33
%
^Blakeslee Arpaia Chapman, Inc. dba Blakeslee Industrial Services
Heavy and Civil Engineering Construction
Term Loan
Prime plus 2.75%
6/18/2028
875.0
726.9
754.1
0.31
%
^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
240.5
241.7
0.10
%
^Elite Structures Inc
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
6/12/2038
932.8
844.5
900.4
0.37
%
^ Willowbrook Properties LLC Grove Gardens Landscaping Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
6/5/2038
186.3
173.0
183.9
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
175.0
185.1
0.08
%
^RKP Service dba Rainbow Carwash
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/31/2023
300.0
209.9
211.2
0.09
%
^RXSB, Inc dba Medicine Shoppe
Health and Personal Care Stores
Term Loan
Prime plus 2.75%
5/30/2023
186.3
129.1
129.4
0.05
%
^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
44.6
45.1
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
36.0
36.1
0.01
%
^PowerWash Plus, Inc. and CJR, LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/30/2038
550.0
509.4
540.3
0.22
%
^Peanut Butter & Co., Inc.
Food Manufacturing
Term Loan
Prime plus 2.75%
4/30/2023
100.0
68.1
68.3
0.03
%
^Brothers International Desserts
Food Manufacturing
Term Loan
Prime plus 2.75%
4/26/2023
230.0
157.4
159.6
0.06
%
55
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Kidrose, LLC dba Kidville Riverdale
Educational Services
Term Loan
Prime plus 2.75%
4/22/2023
78.8
54.5
55.1
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
115.0
121.7
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
439.1
467.9
0.19
%
^MRM Supermarkets Inc dba Constantins Breads; Dallas Gourmet Breads
Food Manufacturing
Term Loan
Prime plus 2.75%
3/29/2038
336.0
310.7
328.2
0.13
%
^Neyra Industries, Inc. and Edward Neyra
Nonmetallic Mineral Product Manufacturing
Term Loan
Prime plus 2.75%
3/27/2023
217.5
147.2
150.1
0.06
%
^A & M Commerce, Inc. dba Cranberry Sunoco
Gasoline Stations
Term Loan
Prime plus 2.75%
3/27/2038
330.3
304.7
323.9
0.13
%
^Xela Pack, Inc. and Aliseo and Catherine Gentile
Paper Manufacturing
Term Loan
Prime plus 2.75%
3/27/2028
271.8
222.3
230.5
0.09
%
^American Diagnostic Imaging, Inc. dba St. Joseph Imaging Center
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/25/2038
537.5
496.2
525.7
0.21
%
^Michael A.and HeatherR. Welsch dba Art & FrameEtc.
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
3/22/2038
67.5
62.3
66.2
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
199.7
202.9
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
53.8
54.1
0.02
%
^J. Kinderman & Sons Inc., dba BriteStar Inc.
Electrical Equipment, Appliance, and Component Manufacturing
Term Loan
Prime plus 2.75%
3/20/2023
181.3
126.9
129.4
0.05
%
^Stellar Environmental LLC
Waste Management and Remediation Services
Term Loan
Prime plus 2.75%
3/18/2023
56.3
38.1
38.8
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
352.8
357.4
0.15
%
^Golden Gate Lodging LLC
Accommodation
Term Loan
Prime plus 2.75%
3/12/2038
115.0
106.2
112.8
0.05
%
^Bakhtar Group LLC dba Malmaison
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/28/2023
103.8
70.0
70.1
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
437.7
464.6
0.19
%
^Osceola River Mill, LLC Ironman Machine, Inc.
Machinery Manufacturing
Term Loan
Prime plus 2.75%
2/20/2038
86.3
79.4
84.4
0.03
%
^Java Warung, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/19/2038
51.0
47.1
50.0
0.02
%
56
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Nancy & Karl Schmidt Moments to Remember USA, LLC
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
2/15/2038
106.3
97.9
104.0
0.04
%
^Outcome Driven Innovation, Inc. dba ODI
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
2/12/2023
84.9
56.1
56.2
0.02
%
^Knits R Us, Inc. dba NYC Sports / Mingle
Textile Mills
Term Loan
Prime plus 2.75%
2/11/2038
125.0
115.3
122.9
0.05
%
^North Country Transport, LLC
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
2/6/2023
15.0
10.0
10.2
—
%
^MJD Investments, LLC dba The Community Day School
Social Assistance
Term Loan
Prime plus 2.75%
1/31/2038
258.3
237.5
251.8
0.10
%
^Sherill Universal City dba Golden Corral
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/28/2038
440.5
406.6
431.3
0.18
%
^Macho LLC Madelaine Chocolate Novelties Inc
Food Manufacturing
Term Loan
Prime plus 2.75%
12/31/2037
500.0
461.2
491.2
0.20
%
^WI130, LLC & Lakeland Group, Inc dba Lakeland Electrical
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
12/31/2028
271.5
223.5
229.7
0.09
%
^Elegant Fireplace Mantels, Inc. dba Elegant Fireplace Mantels
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
12/31/2022
97.5
63.8
63.9
0.03
%
^Babie Bunnie Enterprises Inc dba Triangle Mothercare
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/28/2027
46.3
33.9
34.5
0.01
%
^John Duffy Fuel Co., Inc.
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
12/28/2022
513.8
336.2
342.6
0.14
%
^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
477.3
508.3
0.21
%
^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
43.1
43.5
0.02
%
^United Woodworking, Inc
Wood Product Manufacturing
Term Loan
6%
12/20/2022
17.3
11.5
11.7
—
%
^Pioneer Window Holdings, Inc and Subsidiaries dba Pioneer Windows
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
12/20/2022
225.0
147.1
148.7
0.06
%
^Ezzo Properties, LLC and Great Lakes Cleaning, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
12/20/2027
389.6
313.7
320.8
0.13
%
^The Amendments Group LLC dba Brightstar
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
12/17/2022
22.5
14.7
15.0
0.01
%
^Aegis Creative Communications, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
11/30/2022
387.5
246.5
246.7
0.10
%
^Cheryle A Baptiste and Cheryle Baptiste DDS PLLC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
11/30/2037
286.5
264.4
280.9
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
205.0
218.2
0.09
%
57
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^D&L Rescources, Inc. dba The UPS Store
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
11/27/2022
9.8
6.3
6.3
—
%
^Richmond Hill Mini Market, LLC
Food and Beverage Stores
Term Loan
Prime plus 2.75%
11/27/2037
185.3
169.7
180.3
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
39.1
39.8
0.02
%
^U & A Food and Fuel, Inc. dba Express Gas & Food Mart
Gasoline Stations
Term Loan
Prime plus 2.75%
11/21/2037
96.3
88.1
93.9
0.04
%
^Pioneer Windows Manufacturing Corp, Pioneer Windows
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
11/21/2022
275.0
177.6
179.6
0.07
%
^R & J Petroleum LLC Manar USA, Inc.
Gasoline Stations
Term Loan
Prime plus 2.75%
11/20/2037
180.0
164.8
175.2
0.07
%
^St Judes Physical Therapy P.C.
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
11/19/2022
21.0
13.5
13.8
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
14.3
14.4
0.01
%
^Reidville Hydraulics Mfg Inc dba Summit
Machinery Manufacturing
Term Loan
Prime plus 2.75%
11/2/2037
265.9
244.1
257.5
0.10
%
^Big Apple Entertainment Partners, LLC d/b/a Ripley's Believe It or Not
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
10/26/2022
180.0
117.6
117.7
0.05
%
^LA Diner Inc dba Loukas L A Diner
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
9/28/2037
677.5
624.4
667.6
0.27
%
^University Park Retreat, LLC dba Massage Heights
Personal and Laundry Services
Term Loan
Prime plus 2.75%
9/27/2022
76.0
47.8
48.8
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
168.9
180.2
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
230.0
245.3
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
59.7
63.7
0.03
%
^AJK Enterprise LLC dba AJK Enterprise LLC
Truck Transportation
Term Loan
Prime plus 2.75%
8/27/2022
16.5
10.2
10.4
—
%
^New Image Building Services, Inc. dba New Image Repair Services
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/23/2037
285.7
260.0
276.7
0.11
%
^Suncoast Aluminum Furniture, Inc
Furniture and Related Product Manufacturing
Term Loan
Prime plus 2.75%
8/17/2037
360.0
327.8
350.5
0.14
%
^Georgia Safe Sidewalks LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/27/2022
15.0
9.1
9.2
—
%
^Hofgard & Co., Inc. dba HofgardBenefits
Insurance Carriers and Related Activities
Term Loan
Prime plus 2.75%
7/27/2022
107.3
65.8
67.0
0.03
%
58
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Scoville Plumbing & Heating Inc and Thomas P. Scoville
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
7/25/2022
50.0
32.9
33.6
0.01
%
^Central Tire, Inc. dba Cooper Tire & Auto Services
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/29/2037
288.5
261.2
278.4
0.11
%
^WPI, LLC
Transportation Equipment Manufacturing
Term Loan
Prime plus 2.75%
6/29/2024
129.5
89.6
91.7
0.04
%
^Havana Central (NY) 5, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/29/2022
1,166.8
738.4
752.1
0.31
%
^Jenkins-Pavia Corporation dba Victory Lane Quick Oil Change
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/27/2037
69.8
63.1
67.4
0.03
%
^KIND-ER-ZZ Inc dba Kidville
Educational Services
Term Loan
Prime plus 2.75%
6/15/2022
50.0
30.0
30.4
0.01
%
^Graphish Studio, Inc. and Scott Fishoff
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
6/14/2022
20.3
12.3
12.4
0.01
%
^ALF, LLC Mulit-Service Eagle Tires
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
5/31/2037
62.9
56.9
60.7
0.02
%
^Craig R Freehauf d/b/a Lincoln Theatre
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
5/31/2022
47.9
21.1
21.5
0.01
%
^Lefont Theaters, Inc.
Motion Picture and Sound Recording Industries
Term Loan
Prime plus 2.75%
5/30/2022
137.0
81.9
83.3
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
256.3
273.7
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
13.5
13.6
0.01
%
^Bisson Transportation, Inc.
Truck Transportation
Term Loan
Prime plus 2.75%
5/7/2037
588.1
550.0
585.6
0.24
%
^Bisson Moving & Storage Company Bisson Transportation Inc and BTG Real
Truck Transportation
Term Loan
Prime plus 2.75%
5/7/2022
528.8
342.1
348.2
0.14
%
^Fair Deal Food Mart Inc dba Neighbors Market
Gasoline Stations
Term Loan
Prime plus 2.75%
5/3/2037
381.3
344.4
368.0
0.15
%
^Tanner Optical, Inc. dba Murphy Eye Care
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
4/27/2022
8.3
4.8
4.8
—
%
^Zane Filippone Co Inc dba Culligan Water Conditioning
Nonstore Retailers
Term Loan
Prime plus 2.75%
4/12/2022
558.2
330.2
335.9
0.14
%
^Indoor Playgrounds Limited Liability Company dba Kidville
Educational Services
Term Loan
Prime plus 2.75%
4/5/2022
19.5
8.1
8.2
—
%
^Access Staffing, LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
3/30/2022
187.5
109.1
110.2
0.04
%
59
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(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
195.3
205.1
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
676.7
722.6
0.29
%
^Manuel P. Barrera and Accura Electrical Contractor, Inc.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/23/2028
103.7
81.3
84.2
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
901.1
931.1
0.38
%
^ATI Jet, Inc.
Air Transportation
Term Loan
Prime plus 2.75%
12/28/2026
852.8
627.4
648.5
0.26
%
^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
450.8
481.1
0.20
%
^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
41.0
41.4
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
137.9
140.0
0.06
%
^M & H Pinestraw, Inc. and Harris L. Maloy
Merchant Wholesalers, Nondurable Goods
Term Loan
Prime plus 2.75%
12/15/2021
238.3
136.7
138.6
0.06
%
^Taylor Transport, Inc
Truck Transportation
Term Loan
Prime plus 2.75%
12/8/2021
515.5
193.2
196.5
0.08
%
^Thomas P. Scoville dba Scoville Plumbing & Heating, Inc.
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
11/16/2021
62.5
34.9
35.5
0.01
%
^MRM Supermarkets, Inc. dba Constantin's Breads
Food Manufacturing
Term Loan
Prime plus 2.75%
11/10/2021
137.5
75.6
76.8
0.03
%
^K9 Bytes, Inc & Epazz, Inc dba K9 Bytes, Inc
Publishing Industries (except Internet)
Term Loan
Prime plus 2.75%
10/26/2021
58.8
32.3
32.7
0.01
%
^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
12.1
12.4
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
73.8
78.8
0.03
%
^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
158.0
160.7
0.07
%
^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
122.1
130.4
0.05
%
^39581 Garfield, LLC and Tricounty Neurological Associates, P.C.
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
9/30/2036
28.5
25.1
26.8
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
562.2
569.3
0.23
%
60
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^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
33.3
33.7
0.01
%
^Bryan Bantry Inc.
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
9/8/2021
400.0
44.6
45.1
0.02
%
^SBR Technologies d/b/a Color Graphics
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
8/31/2021
806.2
414.0
421.1
0.17
%
^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
14.5
15.5
0.01
%
^Qycell Corporation
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
8/19/2021
187.5
92.7
94.0
0.04
%
^Trademark Equipment Company Inc and David A. Daniel
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
8/19/2036
133.6
118.3
126.3
0.05
%
^A & A Auto Care, LLC d/b/a A & A Auto Care, LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
8/12/2036
101.0
89.7
95.8
0.04
%
^Valiev Ballet Academy, Inc
Performing Arts, Spectator Sports, and Related Industries
Term Loan
Prime plus 2.75%
8/12/2036
91.5
37.5
40.1
0.02
%
^LaHoBa, LLC d/b/a Papa John's
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
8/3/2036
77.5
68.2
72.8
0.03
%
^Kelly Chon LLC dba Shi-Golf
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
7/29/2021
17.5
6.5
6.7
—
%
^MTV Bowl, Inc. dba Legend Lanes
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
6/30/2036
248.5
219.1
233.6
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
44.8
39.5
42.2
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
309.9
330.7
0.13
%
^Pierce Developments, Inc. dba Southside Granite
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
6/13/2036
256.1
225.7
240.5
0.10
%
^Major Queens Body & Fender Corp
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/10/2021
28.6
14.3
14.5
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
406.2
433.4
0.18
%
^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
31.9
32.3
0.01
%
61
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Demand Printing Solutions, Inc. and MLM Enterprises, LLC
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
5/27/2021
16.5
8.2
8.3
—
%
^Modern on the Mile, LLC dba Ligne Roset
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
5/25/2021
212.5
104.6
105.9
0.04
%
^Music Mountain Water Company, LLC
Beverage and Tobacco Product Manufacturing
Term Loan
Prime plus 2.75%
4/25/2036
138.1
120.6
128.7
0.05
%
^Profile Performance, Inc. and Eidak Real Estate, L.L.C.
Repair and Maintenance
Term Loan
Prime plus 2.75%
4/20/2036
127.5
111.9
119.4
0.05
%
^Northwind Outdoor Recreation, Inc. dba Red Rock Wilderness Store
Nonstore Retailers
Term Loan
Prime plus 2.75%
4/18/2036
129.5
116.1
123.9
0.05
%
^Michael S. Korfe dba North Valley Auto Repair
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/24/2036
15.5
13.6
14.5
0.01
%
^Actknowledge,Inc dba Actknowledge
Personal and Laundry Services
Term Loan
Prime plus 2.75%
3/21/2021
57.3
27.5
27.9
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
73.6
74.4
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
35.0
35.9
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
53.4
57.0
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
27.1
28.9
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
98.7
105.3
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
3.3
3.3
—
%
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
0.06
%
Groundworks Unlimited LLC
Specialty Trade Contractors
Term Loan
6%
12/17/2023
120.0
78.2
80.2
0.03
%
^Shree OM Lodging, LLC dba Royal Inn
Accommodation
Term Loan
Prime plus 2.75%
12/17/2035
27.7
24.0
25.6
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
29.0
29.4
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
29.5
31.4
0.01
%
^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
6.7
6.8
—
%
^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
129.0
137.3
0.06
%
^Lincoln Park Physical Therapy
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
10/20/2020
43.5
18.0
18.2
0.01
%
62
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 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
8.0
8.1
—
%
^Elan Realty, LLC and Albert Basse Asociates, Inc.
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
9/30/2035
228.2
196.9
210.1
0.09
%
^Success Express,Inc. dba Success Express
Couriers and Messengers
Term Loan
Prime plus 2.75%
9/29/2020
91.8
38.6
39.1
0.02
%
^Modern Manhattan, LLC
Furniture and Home Furnishings Stores
Term Loan
Prime plus 2.75%
9/20/2020
204.0
87.2
88.4
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
7.7
7.8
—
%
^Rudy & Louise Chavez dba Clyde's Auto and Furniture Upholstery
Repair and Maintenance
Term Loan
Prime plus 2.75%
9/2/2035
50.1
43.1
46.0
0.02
%
^Newsome Trucking Inc and Kevin Newsome
Truck Transportation
Term Loan
Prime plus 2.75%
9/2/2035
423.1
206.8
220.6
0.09
%
^California College of Communications, Inc.
Educational Services
Term Loan
Prime plus 2.75%
11/2/2020
172.5
75.2
76.3
0.03
%
^DDLK Investments LLC d/b/a Smoothie King
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
8/30/2020
7.5
2.4
2.4
—
%
^Planet Verte, LLC dba Audio Unlimited
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
9/20/2020
40.0
16.8
17.0
0.01
%
^Members Only Software
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
8/30/2020
40.3
16.5
16.8
0.01
%
^ActKnowledge,Inc dba ActKnowledge
Personal and Laundry Services
Term Loan
Prime plus 2.75%
6/30/2020
50.0
20.0
20.3
0.01
%
^I-90 RV & Auto Supercenter
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
6/29/2035
74.9
64.1
68.3
0.03
%
^WeaverVentures, Inc dba The UPS Store
Postal Service
Term Loan
Prime plus 2.75%
7/28/2020
23.8
9.7
9.8
—
%
^Zouk, Ltd. dba Palma
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
8/25/2020
27.5
11.5
11.6
—
%
^CJ Park Inc. dba Kidville Midtown West
Educational Services
Term Loan
Prime plus 2.75%
6/25/2020
26.4
8.3
8.4
—
%
^Tanner Optical Inc. dba Murphy Eye Care
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/22/2035
94.6
80.8
86.0
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
28.6
29.0
0.01
%
^Excel RP, Inc./Kevin and Joann Foley
Machinery Manufacturing
Term Loan
Prime plus 2.75%
7/8/2028
50.0
37.3
39.0
0.02
%
ValleyStar, Inc. dba BrightStar HealthCare
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/28/2020
0.6
2.4
2.4
—
%
63
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^ValleyStar, Inc. dba BrightStar Healthcare
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/28/2020
7.5
3.0
3.0
—
%
^Diag, LLC dba Kidville
Educational Services
Term Loan
Prime plus 2.75%
6/21/2020
37.5
14.5
14.7
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
58.1
58.8
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
0.7
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
2.4
2.4
—
%
^Vortex Automotive LLC
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/5/2035
76.6
65.2
69.4
0.03
%
^Lahoba,LLC dba Papa John's Pizza
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/30/2034
42.5
36.0
38.3
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
64.0
64.7
0.03
%
^Animal Intrusion Prevention Systems Holding Company, LLC
Administrative and Support Services
Term Loan
Prime plus 2.75%
3/29/2024
126.5
28.2
29.0
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
3.0
3.1
—
%
^CMA Consulting dba Construction Management Associates
Construction of Buildings
Term Loan
Prime plus 2.75%
12/11/2019
58.5
18.0
18.2
0.01
%
^KMC RE, LLC & B&B Kennels
Personal and Laundry Services
Term Loan
Prime plus 2.75%
11/19/2034
58.3
49.1
52.3
0.02
%
^Demand Printing Solutions, Inc.
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
12/12/2019
10.0
3.4
3.4
—
%
^Planet Verte, LLC dba Audio Unlimited of Oceanside
Administrative and Support Services
Term Loan
Prime plus 2.75%
11/28/2019
57.0
18.7
18.9
0.01
%
^Demand Printing Solutions, Inc
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
10/29/2034
147.5
123.9
131.9
0.05
%
ROVER REPAIRS
Repair and Maintenance
Term Loan
Prime plus 2.5%
11/28/2029
72.5
53.5
39.2
0.02
%
^Supreme Screw Products
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
4/17/2019
308.2
78.7
79.4
0.03
%
JPI OF NEW JERSEY LLC
Educational Services
Term Loan
Prime plus 2%
11/1/2022
128.8
65.5
46.1
0.02
%
^Gray Tree Service, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
12/18/2018
50.0
10.5
10.5
—
%
^Gourmet to You, Inc.
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/28/2019
12.1
2.8
2.8
—
%
64
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^The Alba Financial Group, Inc.
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
Term Loan
6%
1/10/2019
22.5
11.5
11.6
—
%
^Grapevine Professional Services, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
1/22/2019
8.2
1.8
1.8
—
%
^Inflate World Corporation
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
9/30/2018
7.5
1.1
1.1
—
%
^Peter Thomas Roth Labs LLC
Merchant Wholesalers, Durable Goods
Term Loan
Prime plus 2.75%
9/26/2018
425.0
80.6
81.0
0.03
%
^CBA D&A Pope, LLC dba Christian Brothers Automotive
Repair and Maintenance
Term Loan
Prime plus 2.75%
6/14/2018
144.9
24.4
24.5
0.01
%
^Gilbert Chiropractic Clinic, Inc.
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/7/2018
22.5
3.2
3.2
—
%
^D & D's Divine Beauty School of Esther, LLC
Educational Services
Term Loan
6%
8/1/2031
57.7
50.7
53.5
0.02
%
^Daniel S. Fitzpatrick dba Danny's Mobile Appearance Reconditioning Service
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/29/2018
9.4
1.4
1.4
—
%
^Burks & Sons Development LLC dba Tropical Smoothie Cafe
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/22/2018
49.8
6.4
6.4
—
%
Bliss Coffee and Wine Bar, LLC
Food Services and Drinking Places
Term Loan
6%
3/19/2018
87.5
69.4
69.7
0.03
%
^Zog Inc.
Other Information Services
Term Loan
6%
3/17/2018
97.5
59.0
59.2
0.02
%
^Saan M.Saelee dba Saelee's Delivery Service
Truck Transportation
Term Loan
Prime plus 2.75%
3/12/2018
9.8
1.2
1.2
—
%
Integrity Sports Group, LLC
Performing Arts, Spectator Sports, and Related Industries
Term Loan
6%
3/6/2018
75.0
31.4
31.5
0.01
%
^Enewhere Custom Canvas, LLC
Textile Product Mills
Term Loan
Prime plus 2.75%
2/15/2018
12.0
1.6
1.6
—
%
^A & A Acquisition, Inc. dba A & A International
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
2/15/2018
100.0
11.7
11.8
—
%
^All American Printing
Printing and Related Support Activities
Term Loan
Prime plus 2.75%
10/26/2032
69.8
37.0
39.2
0.02
%
^Seo's Paradise Cleaners, Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/19/2018
9.8
0.4
0.4
—
%
Connect Litigation Technology, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2%
10/18/2025
150.6
27.1
18.9
0.01
%
^Margab, Inc. dba Smoothie King
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/28/2017
44.0
4.3
4.3
—
%
65
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^RCB Enterprises, Inc.
Administrative and Support Services
Term Loan
Prime plus 2.75%
12/18/2017
21.2
2.6
2.6
—
%
^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
8.9
8.9
—
%
^Tammy's Bakery, Inc. dba Tammy's Bakery
Food Manufacturing
Term Loan
Prime plus 2.75%
12/10/2017
71.8
7.7
7.7
—
%
^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
1.6
1.6
—
%
^Kings Laundry,LLC
Personal and Laundry Services
Term Loan
Prime plus 2.75%
10/30/2017
64.5
5.0
5.0
—
%
^Quality Engraving Services Inc. and Ian M. Schnaitman
Miscellaneous Store Retailers
Term Loan
Prime plus 2.75%
10/17/2017
15.0
1.2
1.2
—
%
^Louis B. Smith dba LAQ Funeral Coach
Transit and Ground Passenger Transportation
Term Loan
Prime plus 2.75%
9/15/2017
12.6
0.8
0.8
—
%
^1911 East Main Street Holdings, Corp
Repair and Maintenance
Term Loan
Prime plus 2.75%
5/18/2032
15.8
12.2
12.9
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
16.9
17.0
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
3.3
3.3
—
%
^Twietmeyer Dentistry PA
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
6/30/2017
148.9
4.9
4.9
—
%
^Water Works Laundromat, LLC
Personal and Laundry Services
Term Loan
Prime plus 2.25%
9/7/2027
267.3
181.4
184.5
0.07
%
^Dave Kris, and MDK Ram Corp.
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/5/2026
221.0
31.6
32.7
0.01
%
^Gill Express Inc. dba American Eagle Truck Wash
Repair and Maintenance
Term Loan
Prime plus 2.75%
1/5/2027
286.9
183.9
191.3
0.08
%
^Spain Street LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/29/2017
63.0
0.5
0.5
—
%
^Smooth Grounds, Inc.
Food Services and Drinking Places
Term Loan
7.75%
12/31/2018
64.5
29.8
30.1
0.01
%
^Fran-Car Corporation dba Horizon Landscape Management
Administrative and Support Services
Term Loan
Prime plus 2.75%
3/3/2028
407.8
158.2
165.1
0.07
%
^Head To Toe Personalized Pampering, Inc.
Personal and Laundry Services
Term Loan
Prime plus 2.75%
1/27/2031
52.0
8.9
9.4
—
%
^Christopher F. Bohon & Pamela D. Bohon
Social Assistance
Term Loan
Prime plus 2.75%
10/28/2026
14.2
3.2
3.3
—
%
Mogas Limited
Gasoline Stations
Term Loan
Prime plus 2.75%
5/31/2030
100.0
72.2
54.2
0.02
%
66
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^Shree Om Lodging, LLC dba Royal Inn
Accommodation
Term Loan
Prime plus 2.75%
5/2/2030
333.3
63.7
67.0
0.03
%
^Pedzik's Pets, LLC
Support Activities for Agriculture and Forestry
Term Loan
Prime plus 2.75%
3/31/2030
53.5
8.9
9.3
—
%
^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
14.2
14.6
0.01
%
Patricia Hughes Jones, MD PC
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
1/13/2020
18.0
5.0
3.6
—
%
^Moonlight Multi Media Production, Inc.
Other Information Services
Term Loan
5.3%
2/1/2025
19.7
3.2
3.3
—
%
David M. Goens dba Superior Auto Paint & Body, Inc.
Repair and Maintenance
Term Loan
6%
8/26/2024
250.0
17.3
17.8
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
11.3
11.9
—
%
^Computer Renaissance dba Dante IT Services, Inc.
Electronics and Appliance Stores
Term Loan
Prime plus 3.75%
3/1/2018
100.0
1.3
1.3
—
%
^Chong Hun Im dba Kim's Market
Food and Beverage Stores
Term Loan
Prime plus 2.5%
2/27/2024
80.0
9.1
9.3
—
%
Whirlwind Car Wash, Inc.
Repair and Maintenance
Term Loan
Prime plus 2%
4/9/2029
333.3
65.3
65.7
0.03
%
^West Experience,Inc/West Mountain Equipment Rental,Inc/Ski West Lodge
Amusement, Gambling, and Recreation Industries
Term Loan
6%
6/5/2026
333.3
851.5
883.1
0.36
%
^Center-Mark Car Wash, Ltd
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
5/18/2024
221.3
27.1
27.9
0.01
%
^Shuttle Car Wash, Inc. dba Shuttle Car Wash
Repair and Maintenance
Term Loan
Prime plus 2.25%
11/10/2028
109.8
16.9
17.2
0.01
%
^Min Hui Lin
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/30/2028
134.3
17.2
17.9
0.01
%
^Delta Partners, LLC dba Delta Carwash
Repair and Maintenance
Term Loan
Prime plus 2.5%
4/5/2029
280.9
41.9
43.4
0.02
%
^Auto Sales, Inc.
Motor Vehicle and Parts Dealers
Term Loan
6%
8/17/2023
75.0
7.5
7.7
—
%
^B & J Manufacturing Corporation and Benson Realty Trust
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2%
3/30/2021
250.0
17.8
17.8
0.01
%
^RAB Services, Inc. & Professional Floor Installations
Specialty Trade Contractors
Term Loan
Prime plus 2.5%
1/31/2023
62.5
6.8
6.9
—
%
^Taste of Inverness, Inc. dba China Garden
Food Services and Drinking Places
Term Loan
Prime plus 2%
6/29/2025
73.8
8.6
8.6
—
%
^Ralph Werner dba Werner Transmissions
Gasoline Stations
Term Loan
Prime plus 2.75%
12/29/2021
26.6
2.2
2.3
—
%
^M. Krishna, Inc. dba Super 8 Motel
Accommodation
Term Loan
Prime plus 2%
3/20/2025
250.0
9.2
9.2
—
%
^Robin C. & Charles E. Taylor & Brigantine Aquatic Center LLC
Amusement, Gambling, and Recreation Industries
Term Loan
6%
9/14/2023
185.8
31.1
31.9
0.01
%
67
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
^OrthoQuest, P.C.
Ambulatory Health Care Services
Term Loan
Prime plus 2%
3/12/2022
56.8
4.1
4.1
—
%
^CPN Motel, L.L.C. dba American Motor Lodge
Accommodation
Term Loan
Prime plus 2.25%
4/30/2024
379.0
29.9
30.3
0.01
%
^Track Side Collision & Tire, Inc.
Plastics and Rubber Products Manufacturing
Term Loan
Prime plus 2.75%
6/16/2025
44.8
4.8
4.9
—
%
^Duttakrupa, LLC dba Birmingham Motor Court
Accommodation
Term Loan
Prime plus 2.25%
9/8/2023
98.8
11.8
11.9
—
%
^Deesha Corporation, Inc. dba Best Inn & Suites
Accommodation
Term Loan
Prime plus 2.25%
2/14/2025
250.0
26.8
27.1
0.01
%
^Maruti, Inc
Accommodation
Term Loan
Prime plus 2.25%
11/25/2024
220.0
24.8
25.1
0.01
%
Willington Hills Equestrian Center LLC
Animal Production and Aquaculture
Term Loan
Prime plus 2.75%
10/19/2022
85.0
12.7
13.0
0.01
%
^LABH, Inc. t/a Ramada Ltd.
Accommodation
Term Loan
Prime plus 2.25%
9/27/2024
555.0
39.8
40.3
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
6.8
7.0
—
%
^Gain Laxmi, Inc. dba Super 8 Motel
Accommodation
Term Loan
Prime plus 2.25%
5/31/2023
202.5
19.4
19.6
0.01
%
^Naseeb Corporation
Accommodation
Term Loan
Prime plus 2.25%
3/31/2024
402.5
29.0
29.3
0.01
%
^Stillwell Ave Prep School
Social Assistance
Term Loan
Prime plus 2.75%
1/14/2023
72.0
6.1
6.3
—
%
^Karis, Inc.
Accommodation
Term Loan
Prime plus 2%
12/22/2023
148.8
13.0
13.0
0.01
%
^Five Corners, Ltd.
Gasoline Stations
Term Loan
Prime plus 2.75%
12/11/2019
85.0
4.3
4.4
—
%
^Alyssa Corp dba Knights Inn
Accommodation
Term Loan
Prime plus 2.25%
9/30/2023
350.0
41.4
41.9
0.02
%
^Bhailal Patel dba New Falls Motel
Accommodation
Term Loan
Prime plus 2.75%
3/27/2023
100.0
3.5
3.6
—
%
^Pegasus Automotive, Inc.
Gasoline Stations
Term Loan
Prime plus 2.75%
12/23/2022
112.5
10.6
10.8
—
%
^Delyannis Iron Works
Fabricated Metal Product Manufacturing
Term Loan
6%
12/8/2022
16.0
1.0
1.0
—
%
^P. Agrino, Inc. dba Andover Diner
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
7/18/2021
150.0
8.4
8.6
—
%
^RJS Service Corporation
Gasoline Stations
Term Loan
Prime plus 2.75%
8/20/2021
79.0
5.9
5.0
—
%
Chez Rurene Bakery
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
6/20/2017
150.0
4.3
4.3
—
%
68
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Total Performing SBA Unguaranteed Investments
$
245,950.7
$
213,585.5
$
211,431.8
85.82
%
Non-Performing SBA Unguaranteed Investments
(3)
*^200 North 8th Street Associates LLC and Enchanted Acres
Food Manufacturing
Term Loan
Prime plus 2.75%
5/4/2028
468.8
469.3
436.2
0.18
%
*^214 North Franklin, LLC and Winter Ventures, Inc.
Nonstore Retailers
Term Loan
6%
11/29/2037
81.7
81.7
30.2
0.01
%
*^636 South Center Holdings, LLC and New Mansfield Brass and Aluminum Co.
Primary Metal Manufacturing
Term Loan
Prime plus 2.75%
3/20/2039
74.3
74.5
70.3
0.03
%
*^A + Quality Home Health Care, Inc.
Ambulatory Health Care Services
Term Loan
6%
8/1/2016
1.3
1.3
1.3
—
%
*Almeria Marketing 1, Inc.
Personal and Laundry Services
Term Loan
7.75%
10/15/2015
4.2
4.2
4.1
—
%
*^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
107.6
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
29.4
0.01
%
*AWA Fabrication & Construction, L.L.C.
Fabricated Metal Product Manufacturing
Term Loan
6%
4/30/2025
34.7
34.8
6.9
—
%
*^B&B Fitness and Barbell, Inc. dba Elevations Health Club
Amusement, Gambling, and Recreation Industries
Term Loan
6%
6/22/2035
201.4
201.7
200.2
0.08
%
*Baker Sales, Inc. d/b/a Baker Sales, Inc.
Nonstore Retailers
Term Loan
6%
3/29/2036
177.0
177.4
76.9
0.03
%
*^Fieldstone Quick Stop LLC Barber Investments LLC Thadius M B
Gasoline Stations
Term Loan
6%
9/30/2038
646.4
648.0
235.8
0.10
%
*^Barber Investments LLC and Fieldstone Quickstop LLC and Maine Dollar
Gasoline Stations
Term Loan
6.25%
8/15/2039
146.0
146.3
—
—
%
*Bwms Management, LLC
Food Services and Drinking Places
Term Loan
0%
3/1/2018
3.3
3.3
3.3
—
%
*^Chickamauga Properties, Inc., MSW Enterprises, LLP
Amusement, Gambling, and Recreation Industries
Term Loan
6.25%
12/22/2035
59.0
59.0
56.5
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
—
—
%
*^Custom Software, Inc. a Colorado Corporation dba M-33 Access
Professional, Scientific, and Technical Services
Term Loan
6.25%
6/17/2021
282.5
283.2
42.9
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
129.7
129.8
128.2
0.05
%
*^Danjam Enterprises, LLC dba Ariel Dental Care
Ambulatory Health Care Services
Term Loan
6%
3/29/2023
64.7
64.8
59.1
0.02
%
69
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
*^DC Realty, LLC dba FOGO Data Centers
Professional, Scientific, and Technical Services
Term Loan
6%
3/23/2037
2,210.7
2,233.0
1,879.5
0.76
%
*^DC Realty, LLC dba FOGO Data Centers
Professional, Scientific, and Technical Services
Term Loan
6.25%
3/23/2022
166.6
167.0
157.9
0.06
%
*^Dean 1021 LLC dba Pure Pita
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
4/29/2025
60.2
60.3
47.2
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
1.1
—
%
*Dr. Francis E. Anders, DVM
Professional, Scientific, and Technical Services
Term Loan
6%
8/9/2015
1.6
1.6
1.5
—
%
*^Europlast Ltd
Plastics and Rubber Products Manufacturing
Term Loan
6%
9/26/2022
316.1
316.9
47.7
0.02
%
*^Europlast Ltd
Plastics and Rubber Products Manufacturing
Term Loan
6%
5/31/2023
155.2
155.6
86.4
0.04
%
*^Event Mecca LLC
Other Information Services
Term Loan
6%
4/10/2023
12.5
12.5
9.4
—
%
*^EZ Towing, Inc.
Support Activities for Transportation
Term Loan
6%
1/31/2023
86.2
86.5
47.6
0.02
%
*^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
18.2
0.01
%
*Guzman Group,LLC
Rental and Leasing Services
Term Loan
6%
1/30/2016
186.8
187.3
176.1
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
173.3
173.7
173.2
0.07
%
*Harrelson Materials Management, Inc
Waste Management and Remediation Services
Term Loan
6%
6/24/2021
464.2
465.4
37.0
0.02
%
*^Hartford Cardiology Group LLC and Ideal Nutrition of Connecticut LLC
Ambulatory Health Care Services
Term Loan
6.25%
6/30/2026
478.9
480.1
129.3
0.05
%
*^Hemingway Custom Cabinetry LLC
Furniture and Related Product Manufacturing
Term Loan
Prime plus 2.75%
9/25/2025
198.7
199.2
118.8
0.05
%
*^Home Again Restaurant LLC
Food Services and Drinking Places
Term Loan
6.25%
6/30/2040
58.7
58.8
47.4
0.02
%
*^J Olson Enterprises LLC and Olson Trucking Direct, Inc.
Truck Transportation
Term Loan
6%
6/28/2025
647.5
649.1
205.1
0.08
%
*^J&M Concessions, Inc.dba A-1 Liquors
Food and Beverage Stores
Term Loan
6.25%
3/3/2039
130.2
130.6
69.7
0.03
%
70
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
*^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
20.5
0.01
%
*Jenny's Wunderland, Inc.
Social Assistance
Term Loan
6%
6/29/2036
149.7
150.1
33.5
0.01
%
*^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
230.5
232.9
229.5
0.09
%
*^Karykion, Corporation dba Karykion Corporation
Professional, Scientific, and Technical Services
Term Loan
6%
6/28/2022
144.4
144.8
138.6
0.06
%
*^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
58.2
0.02
%
*Krishna of Orangeburg, Inc.
Accommodation
Term Loan
6%
2/20/2032
10.3
10.3
5.5
—
%
*^Kup's Auto Spa Inc
Repair and Maintenance
Term Loan
6.25%
11/15/2038
369.8
370.7
366.5
0.15
%
*Kup’s Auto Spa, Inc.
Repair and Maintenance
Term Loan
6.25%
10/23/2025
56.9
57.0
54.4
0.02
%
*^Las Torres Development LLC dba Houston Event Centers
Real Estate
Term Loan
6%
8/27/2028
51.0
51.0
1.2
—
%
*^M and C Renovations Inc
Construction of Buildings
Term Loan
Prime plus 2.75%
10/31/2024
14.8
14.8
11.3
—
%
*^Matchless Transportation LLC dba First Class Limo
Transit and Ground Passenger Transportation
Term Loan
6.25%
8/3/2022
126.4
126.7
5.5
—
%
*^Milliken and Milliken, Inc. dba Milliken Wholesale Distribution
Merchant Wholesalers, Durable Goods
Term Loan
6%
6/10/2036
152.8
152.9
136.4
0.06
%
*^Mojo Brands Media, LLC
Broadcasting (except Internet)
Term Loan
6%
8/28/2023
723.1
725.0
469.0
0.19
%
*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
89.3
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
%
*^E & I Holdings, LP & PA Farm Products, LLC
Food Manufacturing
Term Loan
6%
4/30/2030
1,227.7
1,230.8
657.0
0.27
%
*^NB & T Services, LLC
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
4/27/2026
36.5
36.6
3.3
—
%
*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 Route 130 SCPI Operations LLC
Food Services and Drinking Places
Term Loan
6.25%
9/30/2039
535.1
536.4
361.9
0.15
%
*^Seven Stars Enterprises, Inc. dba Atlanta Bread Company
Food Services and Drinking Places
Term Loan
6.25%
6/30/2018
18.8
18.8
18.3
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%
8/26/2024
8.0
8.0
7.9
—
%
71
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
*^STK Ventures Inc dba JP Dock Service & Supply
Specialty Trade Contractors
Term Loan
6%
5/9/2037
31.6
31.6
1.1
—
%
*Stormwise South Florida dba Stormwise Shutters
Specialty Trade Contractors
Term Loan
6%
11/7/2036
397.2
398.2
303.5
0.12
%
*Stormwise South Florida dba Stormwise Shutters
Specialty Trade Contractors
Term Loan
6%
11/7/2036
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
6.6
6.6
1.1
—
%
*The Lucky Coyote, LLC
Miscellaneous Manufacturing
Term Loan
6%
5/8/2017
5.5
5.6
1.4
—
%
*^Will Zac Management LLC dba Papa John's
Food Services and Drinking Places
Term Loan
6.25%
12/19/2024
42.4
42.5
40.7
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
323.1
323.9
291.2
0.12
%
*^Wired LLC and Moulison North Corporation
Specialty Trade Contractors
Term Loan
6.25%
7/3/2024
137.9
138.3
—
—
%
*Woody's Trucking LLC
Truck Transportation
Term Loan
Prime plus 2.75%
1/12/2026
11.7
11.7
3.0
—
%
Total Non-Performing SBA Unguaranteed Investments
$
15,261.0
$
15,319.4
$
8,150.2
3.31
%
Total SBA Unguaranteed Investments
$
261,211.7
$
228,904.9
$
219,582.0
89.13
%
Performing SBA Guaranteed Investments
(4)
First Sail Group Inc. and Omen Board Industires LLC
Nonstore Retailers
Term Loan
Prime plus 2.75%
3/29/2027
200.0
180.0
201.1
0.08
%
Douglas K. Soderblom . dba Loma Linda Optometry
Ambulatory Health Care Services
Term Loan
Prime plus 2.75%
3/29/2027
400.0
300.0
335.2
0.14
%
Sea Smoke Barbeque, Corp and Danwen LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/30/2042
946.0
709.5
805.1
0.33
%
Municipal Hydro Sevices Inc.
Rental and Leasing Services
Term Loan
Prime plus 2.75%
3/30/2027
1,250.0
937.5
1,047.2
0.43
%
KWG Industries LLC dba Peterson & Marsh Metal Industries
Fabricated Metal Product Manufacturing
Term Loan
Prime plus 2.75%
3/30/2027
300.0
270.0
301.7
0.12
%
Altitude Group, LLC and Core Home Security, LLC
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
3/31/2027
200.0
150.0
167.6
0.07
%
72
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Golden Hen Inc. dba Cafe
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
3/31/2027
259.0
194.3
217.1
0.09
%
Applied Integrated Technologies, Inc.
Professional, Scientific, and Technical Services
Term Loan
Prime plus 2.75%
3/31/2027
500.0
375.0
419.0
0.17
%
MIT LLC
Publishing Industries (except Internet)
Term Loan
Prime plus 2.75%
3/31/2027
350.0
262.5
293.3
0.12
%
Shelter Harbor Inn, Inc.
Accommodation
Term Loan
Prime plus 2.75%
3/31/2042
830.0
622.5
706.4
0.29
%
Landmark Ventures USA, Inc.
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
Term Loan
Prime plus 2.75%
3/31/2027
750.0
562.5
628.5
0.26
%
Worldwide Estate, Inc. dba Washington Heights Manor
Nursing and Residential Care Facilities
Term Loan
Prime plus 2.75%
10/21/2041
658.6
490.1
554.9
0.23
%
JBK Truck Trailer and Bus Inc.
Repair and Maintenance
Term Loan
Prime plus 2.75%
3/23/2042
147.9
110.9
124.8
0.05
%
Pecos Entertainment LLC dba State Theater and Pecos Inn LLC dba Econo
Motion Picture and Sound Recording Industries
Term Loan
Prime plus 2.75%
3/27/2042
548.6
411.5
465.5
0.19
%
TMJ Pizza Mesa LLC dba Rosati's Pizza Restaurant
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/24/2027
245.6
184.2
205.9
0.08
%
Bear Creek Entertainment LLC dba The Woods at Bear Creek
Accommodation
Term Loan
Prime plus 2.75%
8/12/2041
1,116.4
837.3
947.6
0.38
%
Sambella Holdings, LLC and Strike Zone Entertainment Center LLC
Amusement, Gambling, and Recreation Industries
Term Loan
Prime plus 2.75%
12/24/2041
1,620.5
1,204.6
1,362.7
0.55
%
Middlesex Auto Sales Corp
Motor Vehicle and Parts Dealers
Term Loan
Prime plus 2.75%
10/31/2041
190.0
142.5
161.3
0.07
%
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
241.0
180.7
203.9
0.08
%
Roast Beef Levittown LLC dba Arby's
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
12/13/2026
578.3
433.7
481.5
0.20
%
Eickmann Management Group LLC dba Jimmy Johns of Dundee
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/17/2027
239.5
178.8
202.9
0.08
%
House of Bread & Coffee Corp dba Casa Do Pao
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/27/2042
554.0
414.2
470.0
0.19
%
Victorian Restaurant and Tavern, LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/22/2042
279.8
209.9
238.1
0.10
%
Marvic Enterprises Inc dba Jordan's Liquor
Food and Beverage Stores
Term Loan
Prime plus 2.75%
2/10/2042
397.6
298.2
337.6
0.14
%
AP6 LLC and Amishp LLC
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
1/30/2042
435.2
326.4
370.4
0.15
%
73
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Imaginarium Foods LLC,
Food Services and Drinking Places
Term Loan
Prime plus 2.75%
2/28/2042
1,002.5
747.2
847.2
0.34
%
Total SBA Guaranteed Performing Investments
$
14,240.5
$
10,734.0
$
12,096.5
4.91
%
Total SBA Unguaranteed and Guaranteed Investments
$
275,452.2
$
239,638.9
$
231,678.5
94.04
%
Controlled Investments
(5)
Advanced Cyber Security Systems, LLC
(6), (17)
Data processing, hosting and related services.
50% Membership Interest
—%
—
—
—
—
—
%
Term Loan
3%
December 2014
1,120.0
381.0
—
—
%
*Automated Merchant Services, Inc.
(7), (17)
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
2,500.0
1.01
%
Line of Credit
Prime plus 2.5%
August 2018
7,257.6
7,257.6
7,257.6
2.95
%
CrystalTech Web Hosting, Inc.
(11)
Data processing, hosting and related services.
100% Common Stock
—%
—
—
8,384.0
19,709.0
8.00
%
*Fortress Data Management, LLC
(17)
Data processing, hosting and related services.
100% Membership Interest
—%
—
—
—
—
—
%
Newtek Insurance Agency, LLC
(13), (17)
Insurance Carriers and Related Activities
100% Membership Interest
—%
—
—
—
2,500.0
1.01
%
PMTWorks Payroll, LLC
(9)
Data processing, hosting and related services.
100% Membership Interest
—%
—
—
725.1
—
—
%
Term Loans
10%-12%
Various maturities through May 2018
1,685.0
1,685.0
650.0
0.26
%
Secure CyberGateway Services, LLC
(10), (17)
Data processing, hosting and related services.
66.7% Membership Interest
—%
—
—
—
—
—
%
Term Loan
7%
December 2016
2,400.0
300.0
—
—
%
Small Business Lending, LLC
(12), (17)
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
100% Membership Interest
—%
—
—
—
3,300.0
1.34
%
*Summit Systems and Designs, LLC
(14), (17)
Data processing, hosting and related services.
100% Membership Interest
—%
—
—
—
—
—
%
Titanium Asset Management LLC
(15)(17)
Administrative and Support Services
Term Loan
3%
July 2017
2,200.0
381.1
201.6
0.08
%
100% Membership Interest
—%
—
—
—
—
—
%
74
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
NEWTEK BUSINESS SERVICES CORP. AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS MARCH 31, 2017 (UNAUDITED)
(In Thousands)
Portfolio Company
Industry
Type of Investment
Interest Rate (2)
Maturity
Principal
Cost
Fair Value
% of Net Assets
Excel WebSolutions, LLC
(16)
Data processing, hosting and related services.
Term Loan
10%
September 2018
1,020.2
783.9
737.2
0.30
%
50% 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
5,400.0
2.19
%
Premier Payments LLC
(11)
Data processing, hosting and related services.
100% Membership Interest
—%
—
—
16,438.0
21,000.0
8.52
%
Universal Processing Services of Wisconsin, LLC
(11) (17)
Data processing, hosting and related services.
100% Membership Interest
—%
—
—
—
64,000.0
25.98
%
Total Controlled Investments
$
15,682.8
$
46,024.0
$
127,255.4
51.65
%
Investments in Money Market Funds
UBS Select Treasury Institutional Fund - 0.50% yield
9.6
9.6
9.6
—
%
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
0.01
%
Total Investments
$
291,170.4
$
285,698.3
$
358,969.3
145.71
%
See accompanying notes to unaudited condensed consolidated financial statements.
^ 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 3.75% as of
March 31, 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
75
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
“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 Holdco1., 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 byWilshire New York Partners IV, LLC (both subsidiaries of Newtek Business Services Corp.)
(17) 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.
(18) 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
(19) 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
March 31, 2017
, 5.2% of total assets are non-qualifying assets.
76
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
77
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
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
%
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
%
^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
%
78
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
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
%
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
%
79
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
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
%
^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
%
80
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
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
%
^Gold Wind Logistics LLC
Truck Transportation
Term Loan
Prime plus 2.75%
10/20/2041
175.0
175.0
181.6
0.09
%
81
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^Beadon Inc
Food and Beverage Stores
Term Loan
Prime plus 2.75%
9/28/2026
22.5
22.2
22.0
0.01
%
82
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
—
%
83
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
84
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
85
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
86
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
87
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
88
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
89
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
90
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
91
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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 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
%
^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
%
92
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
93
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
94
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
—
%
^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
%
95
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^R & K Contracting Inc
Specialty Trade Contractors
Term Loan
Prime plus 2.75%
2/18/2026
15.8
15.0
14.5
0.01
%
96
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
97
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
98
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
99
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
100
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
101
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
102
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
103
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
104
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
105
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
7.2775%
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
%
106
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
107
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
108
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
—
%
109
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
110
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
111
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
112
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
113
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
114
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
115
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
116
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
^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
%
117
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
118
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
119
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
120
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
121
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
122
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
123
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
124
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
125
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
126
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
—
%
127
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
128
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
129
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
130
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
%
^CJ Park Inc. dba Kidville Midtown West
Educational Services
Term Loan
Prime plus 2.75%
6/25/2020
26.4
8.9
9.0
—
%
131
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
—
%
132
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
—
%
133
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
—
%
^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
%
134
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
—
%
^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
—
%
135
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
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
%
^LABH, Inc.
Accommodation
Term Loan
Prime plus 2.25%
9/27/2024
555.0
40.8
41.3
0.02
%
136
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
—
%
^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
%
137
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
—
%
^Europlast Ltd
Plastics and Rubber Products Manufacturing
Term Loan
6%
9/26/2022
316.1
316.9
36.5
0.02
%
138
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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%
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
—
%
^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
%
139
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
—
—
%
^Winter Ventures Inc dba Qualitybargainbooks and Qualitybargainmall
Nonstore Retailers
Term Loan
6%
4/3/2029
134.4
134.5
—
—
%
140
See accompanying notes to unaudited condensed consolidated financial statements
Table of Contents
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
^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
%
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
%
141
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
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
%
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
—%
—
—
—
—
—
%
142
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
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
—
%
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
%
143
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
Total Investments
$
280,726.4
$
271,987.2
$
345,224.5
165.10
%
See accompanying notes to unaudited condensed consolidated financial statements
^ 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 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 Holdco1., 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.).
144
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(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.
145
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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. (the “Company” or “Newtek”) 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 (the “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 Regulated Investment Company (“RIC”) under Subchapter M of the Internal Revenue Code (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
•
Newtek Business Services Holdco 1, Inc.
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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 Accounting Standards Codification (“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.
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.
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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 of Directors (the “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 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
March 31, 2017
, cash deposits in excess of insured amounts totaled approximately
$14,151,000
.
Restricted Cash
Restricted cash includes amounts due on Small Business Administration (“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
March 31, 2017
, total restricted cash was
$28,963,000
.
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 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 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 Newtek Small Business Finance, LLC (“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 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 all income 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 months ended
March 31, 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
$6,551,000
and
$5,983,000
at
March 31, 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
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a component of net unrealized appreciation (depreciation) on investments in the condensed consolidated statements of operations.
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. Unless extended or terminated by the Board, the Company expects the termination date for this new repurchase program will be on May 21, 2017. Under the program, purchases may be made at management's discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations.
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 three months ended March 31, 2016, 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
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 has a program which allows it to repurchase up to 10%, or $832,400 in aggregate principal amount, of its 7.50% Notes due 2022 and up to 10%, or $4,025,000 in aggregate principal amount, of its 7.00% Notes due 2021 through open market purchases, including block purchases, in such manner as will comply with the provisions of the Investment Company Act of 1940, as amended (the “1940 Act”) and the Exchange Act. Unless extended or terminated by the Board, the Company expects the termination date for the repurchase plan to be on May 21, 2017. The Company did not make any repurchases under this program during the three months ended
March 31, 2017
.
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.
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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.
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.
Recently Adopted Accounting Standards
In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” which intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this standard with respect to its accounting for share based payments.
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 is currently evaluating the impact this ASU will have 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 condensed 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 is currently evaluating the impact this ASU will have on its condensed 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:
March 31, 2017
December 31, 2016
Cost
Fair Value
Cost
Fair Value
Money market funds
$
35
$
35
$
35
$
35
Non-affiliate debt investments
239,639
231,679
230,950
223,887
Controlled investments
Equity
35,236
118,409
35,285
116,919
Debt
10,788
8,846
5,716
4,383
Total investments
$
285,698
$
358,969
$
271,986
$
345,224
The following table shows the Company's portfolio investments by industry at
March 31, 2017
and
December 31, 2016
:
March 31, 2017
December 31, 2016
Cost
Fair Value
Cost
Fair Value
Data Processing, Hosting and Related Services
$
28,837
$
106,215
$
29,010
$
107,180
Food Services and Drinking Establishments
24,648
24,153
21,941
21,702
Amusement, Gambling, and Recreation Industries
18,588
18,938
18,486
18,995
Securities, Commodity Contracts, and Other Financial Investments and Related Activities
18,235
19,761
12,909
12,649
Ambulatory Health Care Services
13,262
12,274
13,068
11,976
Repair and Maintenance
12,333
12,311
12,066
12,228
Professional, Scientific, and Technical Services
13,350
12,433
12,240
11,582
Accommodation
10,399
10,924
9,455
9,849
Specialty Trade Contractors
8,377
7,664
8,311
7,595
Merchant Wholesalers, Durable Goods
6,423
6,255
6,211
5,989
Truck Transportation
9,187
8,528
7,469
6,938
Food and Beverage Stores
5,062
4,979
5,221
5,194
Heavy and Civil Engineering Construction
4,249
4,132
4,328
4,209
Fabricated Metal Product Manufacturing
5,479
5,457
5,922
5,961
Administrative and Support Services
5,936
5,292
6,379
5,727
Social Assistance
5,554
5,577
4,903
4,905
Motor Vehicle and Parts Dealers
5,245
5,294
5,059
5,051
Food Manufacturing
5,807
5,302
5,596
4,873
Transit and Ground Passenger Transportation
2,249
2,058
1,836
1,703
Clothing and Clothing Accessories Stores
3,602
3,537
4,221
4,134
Personal and Laundry Services
5,792
5,648
4,255
4,206
Gasoline Stations
6,257
5,790
5,938
5,570
Printing and Related Support Activities
3,644
3,280
3,547
3,183
Insurance Carriers and Related Activities
1,023
3,530
1,126
3,631
Other
62,125
59,602
62,454
60,159
Total
$
285,663
$
358,934
$
271,951
$
345,189
NOTE 4—TRANSACTIONS WITH AFFILIATED COMPANIES AND RELATED PARTY TRANSACTIONS:
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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 three months ended
March 31, 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 March 31, 2017
Interest and other income
Dividend income
Controlled Investments
Small Business Lending, LLC
$
3,300
$
—
$
—
$
—
$
—
$
3,300
$
—
$
100
PMTWorks Payroll, LLC
2,045
—
—
—
(1,395
)
650
45
—
Universal Processing Services of Wisconsin, LLC
63,000
—
—
—
1,000
64,000
—
1,750
CrystalTech Web Hosting, Inc.
20,109
—
(50
)
—
(350
)
19,709
—
—
CDS Business Services, Inc.
3,440
5,422
(855
)
—
1,750
9,757
76
—
Titanium Asset Management LLC
508
—
(279
)
—
(27
)
202
4
—
Premier Payments LLC
21,000
—
—
—
—
21,000
—
450
Newtek Insurance Agency, LLC
2,500
—
—
—
—
2,500
—
—
banc-serv Partners, LLC
5,400
—
—
—
—
5,400
—
—
Excel WebSolutions LLC
904
—
(120
)
—
(47
)
737
22
—
Total Controlled Investments
$
122,206
$
5,422
$
(1,304
)
$
—
$
931
$
127,255
$
147
$
2,300
Prior to January 2017, Excel WebSolutions LLC (“EWS”) was a non-control/non-affiliate investment. During the three months ended
March 31, 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.
Related Party Transactions
Notes Payable - Related Parties
In June 2015, the Company entered into an unsecured revolving line of credit agreement with Universal Processing Services of Wisconsin, LLC (“UPSW”) and CrystalTech Web Hosting, Inc. (“NTS”). The maximum borrowings under the line of credit are $38,000,000. The outstanding balance bears interest at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7% or at a rate equal to (y) the greater of the Prime Rate or 3.5%, plus (z) 6%. At
March 31, 2017
, there were no borrowings outstanding. Interest expense for the three months ended
March 31, 2017
and
2016
was
$9,000
and
$122,000
, 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 PMTWorks Payroll, LLC (“PMT”).
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Managed technology services
$
252
$
211
Loan processing and closing
10
9
Payroll processing
9
5
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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 for the three months ended
March 31, 2017
were as follows:
Portfolio Company
Three Months Ended March 31, 2017
Small Business Lending, LLC
$
23
CDS Business Services, Inc.
18
PMTWorks Payroll, LLC
11
Universal Processing Services of Wisconsin, LLC
32
Newtek Insurance Agency, LLC
18
Titanium Asset Management LLC
4
Premier Payments LLC
14
Total
$
120
Amounts due from related parties and due to related parties were
$4,384,000
and
$934,000
, respectively at
March 31, 2017
. Amounts due from related parties and due to related parties were
$3,748,000
and
$1,227,000
, respectively at
December 31, 2016
.
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 charged at an arms length basis. The table below summarizes amounts charged to each controlled affiliate for the three months ended
March 31, 2017
and
2016
. The amounts are recorded as a credit to salaries and benefits in the condensed consolidated statements of operations.
Portfolio Company
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Universal Processing Services of Wisconsin, LLC
$
115
$
107
CrystalTech Web Hosting, Inc.
131
179
PMTWorks Payroll, LLC
23
25
Newtek Insurance Agency, LLC
52
65
Summit Systems and Designs, LLC
11
11
The Secure CyberGateway, LLC
2
—
Premier Payments LLC
55
41
CDS Business Services, Inc.
5
—
banc-serv Partners, LLC
45
—
Small Business Lending, LLC
106
230
Total
$
545
$
658
NOTE 5—SERVICING ASSETS:
Servicing assets are measured at fair value. The Company earns servicing fees from the SBA 7(a) loans it originates.
The following table summarizes the fair value and valuation assumptions related to servicing assets at
March 31, 2017
and
December 31, 2016
:
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Table of Contents
March 31, 2017
December 31, 2016
Fair Value
$
17,096
$
16,246
Discount factor
(1)
12.20
%
12.20
%
Cumulative prepayment rate
18.50
%
18.50
%
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
March 31, 2017
and
2016
was
$1,646,000
and
$1,371,000
, 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:
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 three months ended
March 31, 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
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Table of Contents
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 net income before net interest expense, income tax expense, depreciation and amortization (“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.
The following tables present fair value measurements of the Company’s assets 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
March 31, 2017
and
December 31, 2016
:
Fair Value Measurements at March 31, 2017 Using:
Total
Level 1
Level 2
Level 3
Assets:
Investments in money markets funds
$
35
$
35
$
—
$
—
SBA unguaranteed non-affiliate investments
219,582
—
—
219,582
SBA guaranteed non-affiliate investments
12,097
—
12,097
—
Controlled investments
127,255
—
—
127,255
Other real estate owned
(1)
866
—
866
—
Non-control/non-affiliate investments
—
—
—
—
Servicing assets
17,096
—
—
17,096
Total assets
$
376,931
$
35
$
12,963
$
363,933
(1) Included in Other Assets on the unaudited Condensed Consolidated Statements of Assets and Liabilities
For the three months ended
March 31, 2017
, the change in unrealized appreciation (depreciation) included in the condensed consolidated statements of operations attributable to Level 3 investments still held at
March 31, 2017
includes $944,000 in unrealized appreciation on SBA unguaranteed non-affiliate investments, $931,000 in unrealized appreciation on controlled investments and $609,000 in unrealized depreciation on servicing assets.
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Fair Value Measurements at December 31, 2016 Using:
Total
Level 1
Level 2
Level 3
Assets:
Investments in money markets 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
The following table represents the changes in investments and servicing assets measured at fair value using Level 3 inputs for the three months ended
March 31, 2017
and
2016
:
Three Months Ended March 31, 2017
SBA Unguaranteed Investments
Controlled Investments
Non-Control/Non-Affiliate Investments
Servicing Assets
Fair value, beginning of period
$
211,471
$
121,302
$
904
$
16,246
Net change in unrealized appreciation (depreciation)
(556
)
931
—
(609
)
SBA unguaranteed non-affiliate investments, funded
18,598
—
—
—
Foreclosed real estate acquired
(62
)
—
—
—
Funding of investments
—
5,422
—
—
Transfer of Excel WebSolutions, LLC from non-control/non-affiliate to Controlled Investments
—
904
(904
)
—
Purchase of loan portfolio
175
—
—
—
Return of investment
—
(50
)
—
—
Principal payments received on debt investments
(10,044
)
(1,254
)
—
—
Additions to servicing assets
—
—
—
1,459
Fair value, end of period
$
219,582
$
127,255
$
—
$
17,096
Three Months Ended March 31, 2016
SBA Unguaranteed Investments
Controlled Investments
Non-Control/Non-Affiliate Investments
Servicing Assets
Fair value, beginning of period
$
158,355
$
104,376
$
1,824
$
13,042
Net change in unrealized appreciation (depreciation)
(1,026
)
3,690
(17
)
(403
)
SBA unguaranteed non-affiliate investments, funded
13,358
—
—
—
Foreclosed real estate acquired
(83
)
—
—
—
Transfer from due from related parties
—
435
—
—
Principal payments received on debt investments
(3,818
)
(1,300
)
(361
)
—
Additions to servicing assets
—
—
—
1,005
Fair value, end of period
$
166,786
$
107,201
$
1,446
$
13,644
The following tables provide a summary of quantitative information about the Company’s Level 3 fair value measurements as of
March 31, 2017
and
December 31, 2016
. In addition to the techniques and inputs noted in the table below, according to our
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Table of Contents
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
March 31, 2017
and
December 31, 2016
.
Range
Fair Value as of March 31, 2017
Valuation Techniques
Unobservable Input
Weighted Average
Minimum
Maximum
Assets:
SBA unguaranteed non-affiliate investments - performing loans
$
211,432
Discounted cash flow
Market yields
5.50
%
5.50
%
5.50
%
SBA unguaranteed non-affiliate investments - non-performing loans
$
8,150
Discounted cash flow
Market yields
5.90
%
5.90
%
5.90
%
Controlled equity investments
(A)(B)
$
118,409
Market comparable companies
EBITDA multiples
(B)
6.00x
3.16x
6.75x
Market comparable companies
Revenue multiples
(B)
1.21x
0.61x
2.50x
Discounted cash flow
Weighted average cost of capital
(B)
12.40
%
11.00
%
15.70
%
Controlled debt investments
$
7,907
Discounted cash flow
Market yields
6.79
%
6.50
%
10.00
%
$
939
Liquidation value
Asset value
N/A
N/A
N/A
Servicing assets
$
17,096
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
March 31, 2017
, the proportion of the market comparable companies valuation technique and the discounted cash flow valuation technique were 45.3% and 54.7%, respectively, on a weighted average basis.
(B) The Company valued $107,209,000 of investments using an equal weighting of EBITDA and revenue multiples and in the overall valuation approach which included the use of market comparable companies. The Company valued $11,200,000 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)
6.10x
3.01x
6.99x
Market comparable companies
Revenue multiples
(B)
1.21x
0.62x
3.08x
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
March 31, 2017
and
December 31, 2016
, the Company's borrowings were comprised of the following:
March 31, 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)
$
50,000
$
18,300
5.00
%
$
50,000
$
5,100
4.50
%
Capital One line of credit - unguaranteed
(1)
—
—
—
%
—
—
—
%
Notes due 2021
40,250
38,853
7.00
%
40,250
38,767
7.00
%
Notes due 2022
8,324
7,874
7.50
%
8,324
7,853
7.50
%
Note payable - related parties
38,000
—
—
%
38,000
1,400
7.67
%
Notes payable - Securitization Trusts
112,081
109,484
3.95
%
120,945
118,122
3.79
%
Total
$
248,655
$
174,511
4.91
%
$
257,519
$
171,242
4.75
%
(1) Total combined commitments of the guaranteed and unguaranteed lines of credit are $50,000,000 at
March 31, 2017
and
December 31, 2016
.
Outstanding borrowings under the Notes due 2022, Notes due 2021 and Notes payable - Securitization Trusts consisted of the following:
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March 31, 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
$
112,081
$
8,324
$
40,250
$
120,945
Unamortized debt issuance costs
(450
)
(1,397
)
(2,597
)
(471
)
(1,483
)
(2,823
)
Net carrying amount
$
7,874
$
38,853
$
109,484
$
7,853
$
38,767
$
118,122
At
March 31, 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
March 31, 2017
, the closing price of the Notes due 2022 was $26.52 per note, or $8,830,000. On
March 31, 2017
, the closing price of the Notes due 2021 was $25.37 per note, or $40,846,000. 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
March 31, 2017
and
2016
was
$2,524,000
and
$1,488,000
, respectively.
NOTE 8—COMMITMENTS AND CONTINGENCIES:
Legal Matters
We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may try to seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.
Guarantees
The Company is a guarantor on a bank line of credit held at CDS Business Services, Inc. d/b/a Newtek Business Credit Solutions (“NBCS”), a controlled portfolio company. Maximum borrowings under the line of credit are
$15,000,000
with a maturity date of February 2018. At
March 31, 2017
, total principal owed by NBCS was
$10,865,000
. In addition, the Company deposited
$750,000
to collateralize the guarantee. On August 27, 2015, NBCS entered into Amendment No. 2 (the “Amendment”) to the Loan and Security Agreement, dated February 28, 2011 (as amended through August 27, 2015, including the Amendment, the “Agreement”), by and between Sterling National Bank (“Sterling”) and NBCS. The Amendment permits NBCS to use a portion of the warehouse line of credit provided by Sterling under the Agreement to fund inventory financing arrangements NBCS may provide to its clients. The Amendment also removed certain restrictions placed upon the Company in connection with its guaranty of the credit facility provided under the Agreement. At
March 31, 2017
, the Company determined that it is not probable that payments would be required to be made under the guarantee.
NBCS also entered into an additional Loan and Security Agreement with Sterling on August 27, 2015 (the “504 Loan Agreement”), pursuant to which Sterling and any future participant lenders agreed to provide NBCS another line of credit to fund SBA 504 loans extended by NBCS (the “504 Facility”). Maximum borrowings under the 504 Facility are
$35,000,000
, depending upon syndication. At
March 31, 2017
, total principal owed by NBCS was
$2,311,000
. The 504 Loan Agreement specifies certain events of default, pursuant to which all outstanding amounts under the 504 Facility could become immediately due and payable. In addition, the Company has guaranteed NBCS’ obligations under the 504 Loan Agreement, pursuant to a Guaranty dated as of August 27, 2015. At
March 31, 2017
, the Company determined that it is not probable that payments would be required to be made under the guarantee.
On June 23, 2015, UPSW and NTS (together, the “Borrowers”), each a controlled portfolio company of the Company, entered into a Credit and Guaranty Agreement (the “Agreement”), dated June 23, 2015, with Goldman Sachs Bank USA (“GS Bank”), as Administrative Agent, Collateral Agent and Lead Arranger, pursuant to which GS Bank agreed to extend the Borrowers a term loan facility up to an aggregate principal amount of
$38,000,000
(the “Facility” and each term loan made thereunder, a “Term Loan”). On September 18, 2015, the Agreement was amended to add Premier Payments LLC (“Premier”) as a borrower.
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The Company, Newtek Business Services Holdco 1, Inc., a wholly owned subsidiary of the Company (“Intermediate Holdings”), and certain subsidiaries of Intermediate Holdings party to the Agreement from time to time, have agreed to guarantee the repayment of the Facility and are parties to the Agreement as “Guarantors” thereunder. At
March 31, 2017
,
$22,000,000
was outstanding under this Facility. At
March 31, 2017
, the Company determined that it is not probable that payments would be required to be made under the guarantee.
NOTE 9—FINANCIAL HIGHLIGHTS:
The financial highlights for the Company are as follows:
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Per share data
(1)
Net asset value at beginning of period
$
14.30
$
14.06
Dividends from capital gains
(0.36
)
(0.35
)
Net investment loss
(0.13
)
(0.10
)
Net realized gain on investments
0.53
0.44
Net unrealized appreciation on investments
0.03
0.19
Net unrealized depreciation on servicing assets
(0.04
)
(0.03
)
Stock compensation
0.02
—
Change in provision for deferred taxes
(0.03
)
(0.11
)
Other
(0.01
)
—
Net asset value at end of period
$
14.31
$
14.10
Per share market value at end of period
$
16.98
$
12.50
Total return based on market value
(3)
9.06
%
(7.47
)%
Total return based on average net asset value
(2)(3)(4)
10.35
%
10.98
%
Shares outstanding at end of period (in thousands)
17,220
14,452
Ratios/Supplemental Data:
Ratio of expenses to average net assets
(2)
19.47
%
16.04
%
Ratio of net investment loss to average net assets
(3.68
)%
(0.68
)%
Net assets at end of period
$
246,364
$
203,762
Average debt outstanding
$
172,877
$
133,092
Average debt outstanding per share
$
10.04
$
9.21
Asset coverage ratio
241
%
251
%
Portfolio turnover
26.26
%
23.92
%
(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.
NOTE 10—STOCK BASED COMPENSATION:
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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 Company's Board approves the issuance of shares of restricted stock to employees and directors pursuant to the Company’s 2015 Equity Incentive Plan (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
March 31, 2017
.
Restricted Stock authorized under the plan
(1)
1,500,000
Less net restricted stock granted during:
Year ended December 31, 2016
(120,933
)
Three months ended March 31, 2017
—
Restricted stock available for issuance as of March 31, 2017
1,379,067
(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
March 31, 2017
the Company recognized total stock-based compensation expense of
$385,000
. No stock-based compensation expense was recognized for the three months ended
March 31, 2016
.
As of
March 31, 2017
, there was
$696,000
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 0.71 years as of
March 31, 2017
.
NOTE 11—EARNINGS PER SHARE:
The following table summarizes the calculations for the net increase in net assets per common share for the three months ended
March 31, 2017
and
2016
:
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Net increase in net assets
$
5,904
$
5,604
Weighted average shares outstanding
16,383
14,509
Net increase in net assets per common share
$
0.36
$
0.39
NOTE 12—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 three months ended
March 31, 2017
and
2016
.
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Date Declared
Record Date
Payment Date
Amount Per Share
Cash Distribution
DRIP Shares Issued
DRIP Shares Value
March 31, 2017
March 6, 2017
March 20, 2017
March 31, 2017
$
0.36
$
6,062
6
$
89
March 31, 2016
February 25, 2016
March 22, 2016
March 31, 2016
$
0.35
$
4,708
29
$
362
During the three months ended
March 31, 2017
, an additional
2,700
shares valued at
$46,000
were issued related to dividends from unvested restricted stock awards.
NOTE 13—SUPPLEMENTAL FINANCIAL DATA:
Summarized Financial Information of Our Unconsolidated Subsidiaries
The Company holds a controlling interest, as defined by the 1940 Act, as amended, 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
March 31, 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. The Company earned $1,750,000 in dividend income from UPSW and recorded $1,000,000 in unrealized appreciation, respectively, for the three months ended
March 31, 2017
. The Company earned $1,300,000 in dividend income from UPSW and recorded $2,800,000 in unrealized appreciation, respectively, for the three months ended
March 31, 2016
.
The summarized financial information of our unconsolidated subsidiary is as follows:
Balance Sheets - Universal Processing Services of Wisconsin, LLC
As of March 31, 2017
As of December 31, 2016
Current assets
$
12,192
$
11,522
Noncurrent assets
3,485
4,907
Total assets
$
15,677
$
16,429
Current liabilities
4,608
5,619
Noncurrent liabilities
16,487
16,432
Total liabilities
$
21,095
$
22,051
Total deficit
$
(5,418
)
$
(5,622
)
Statements of Income - Universal Processing Services of Wisconsin, LLC
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Revenue
$
27,036
$
24,470
Expenses
25,019
22,856
Income from operations
$
2,017
$
1,614
Interest (expense) income, net
(401
)
(301
)
Income before tax
$
1,616
$
1,313
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NOTE 14—SUBSEQUENT EVENTS:
Portfolio Company Developments
On April 6, 2017, the Company invested in 100% of the common stock of a new wholly owned, controlled portfolio company, International Professional Marketing, Inc. (“IPM”). IPM provides consulting, design and implementation of technology solutions for enterprise and commercial clients. Total consideration paid by the Company was $11,120,000 and consisted of $1,000,000 in restricted shares of Newtek common stock and $8,752,000 in cash, with the $1,368,000 balance to be paid in cash in two equal installments in 2018 and 2019 based on IPM attaining specific EBITDA levels for 2017 and 2018.
Quarterly Dividend
On May 4, 2017 the Company declared a quarterly cash dividend of $0.40 per share payable on June 30, 2017 to shareholders of record as of May 31, 2017. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's dividend reinvestment plan, at the election of shareholders.
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Newtek Business Services Corp. and Subsidiaries
Schedule of Investments In and Advances to Affiliates
Three Months Ended March 31, 2017
Portfolio Company/Type of Investment
(1)
Amount of Interest, Fees or Dividends Credited in Income
Fair Value at December 31, 2016
Gross Additions
(2)
Gross Reductions
(3)
Fair Value at March 31, 2017
Control Investments
Advanced Cyber Security Systems, LLC
50% Membership Interest
$
—
$
—
$
—
$
—
$
—
Term Loan
—
—
—
—
—
Automated Merchant Services, Inc.
100% Common Stock
—
—
—
—
—
CDS Business Services, Inc.
100% Common Stock
—
750
1,750
—
2,500
Line of Credit
76
2,690
5,422
(855
)
7,257
CrystalTech Web Hosting, Inc.
100% Common Stock
—
20,109
—
(400
)
19,709
Fortress Data Management, LLC
100% Membership Interest
—
—
—
—
—
Newtek Insurance Agency, LLC
100% Membership Interest
—
2,500
—
—
2,500
PMTWorks Payroll, LLC
100% Membership Interest
—
860
—
(860
)
—
Term Loans
45
1,185
—
(535
)
650
Secure CyberGateway Services, LLC
66.7% Membership Interest
—
—
—
—
—
Term Loan
—
—
—
—
—
Premier Payments LLC
100% Membership Interest
450
21,000
—
—
21,000
Small Business Lending, LLC
100% Membership Interest
100
3,300
—
—
3,300
banc-serv Partners, LLC
100% Membership Interest
5,400
—
5,400
Excel WebSolutions LLC
(4)
Term Loans
22
904
—
(166
)
738
50% Membership Interest
—
—
—
—
—
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Portfolio Company/Type of Investment
(1)
Amount of Interest, Fees or Dividends Credited in Income
Fair Value at December 31, 2016
Gross Additions
(2)
Gross Reductions
(3)
Fair Value at March 31, 2017
Titanium Asset Management, LLC
100% Membership Interest
—
—
—
—
—
Term Loans
4
508
(307
)
201
Summit Systems and Designs, LLC
100% Membership Interest
—
—
—
—
—
Universal Processing Services of Wisconsin, LLC
100% Membership Interest
1,750
63,000
1,000
—
64,000
Total Control Investments
$
2,447
$
122,206
$
8,172
$
(3,123
)
$
127,255
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) 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.
(3) 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.
(4) Prior to January 2017, EWS was a non-control/non-affiliate investment.
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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;
•
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 small- and medium-sized businesses (“SMBs”). Newtek's products and services include: Business Lending, including U.S. Small Business Administration (“SBA”) 7(a) and 504 lending, Electronic Payment Processing, Managed Technology Solutions (Cloud Computing), 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.
We are an internally-managed, closed-end, non-diversified investment company that has elected to be regulated as a business development company (“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 the 2015 tax year. 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 Preferred Lender Program (“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.
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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.
In April 2017, Wilshire New York Partners IV, LLC and Wilshire New York Partners V, LLC received notice from the State of New York that the Company's request to be decertified as a Capco had been granted. The State of New York acknowledged that the Company had met the required level of qualified investments and satisfied all investment obligations.
On April 6, 2017, we invested in 100% of the common stock of a new wholly owned, controlled portfolio company, International Professional Marketing, Inc. (“IPM”). IPM provides consulting, design and implementation of technology solutions for enterprise and commercial clients. Total consideration paid by the Company was $11,120,000 and consisted of $1,000,000 in restricted shares of Newtek common stock and $8,752,000 in cash, with the $1,368,000 balance to be paid in cash in two equal installments in 2018 and 2019 based on IPM attaining specific EBITDA levels for 2017 and 2018.
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 a term 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
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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 a bank line of credit held at NBCS. Maximum borrowings under the line of credit are
$15,000,000
with a maturity date of February 2018. At
March 31, 2017
, total principal owed by NBCS was
$10,865,000
. In addition, the we deposited
$750,000
to collateralize the guarantee. On August 27, 2015, NBCS entered into Amendment No. 2 (the “Amendment”) to the Loan and Security Agreement, dated February 28, 2011 (as amended through August 27, 2015, including the Amendment, the “Agreement”), by and between Sterling National Bank (“Sterling”) and NBCS. The Amendment permits NBCS to use a portion of the warehouse line of credit provided by Sterling under the Agreement to fund inventory financing arrangements NBCS may provide to its clients. The Amendment also removed certain restrictions placed upon the us in connection with its guaranty of the credit facility provided under the Agreement. At
March 31, 2017
, we determined that it is not probable that payments would be required to be made under the guarantee.
NBCS also entered into an additional Loan and Security Agreement with Sterling on August 27, 2015 (the “504 Loan Agreement”), pursuant to which Sterling and any future participant lenders agreed to provide NBCS another line of credit to fund SBA 504 loans extended by NBCS (the “504 Facility”). Maximum borrowings under the 504 Facility are
$35,000,000
, depending upon syndication. At
March 31, 2017
, total principal owed by NBCS was
$2,311,000
. The 504 Loan Agreement specifies certain events of default, pursuant to which all outstanding amounts under the 504 Facility could become immediately due and payable. In addition, we have guaranteed NBCS’ obligations under the 504 Loan Agreement, pursuant to a Guaranty dated as of August 27, 2015. At
March 31, 2017
, we determined that it is not probable that payments would be required to be made under the guarantee.
On June 23, 2015, UPSW and NTS (together, the “Borrowers”), each a controlled portfolio company, entered into a Credit and Guaranty Agreement (the “Agreement”), dated June 23, 2015, with Goldman Sachs Bank USA (“GS Bank”), as Administrative Agent, Collateral Agent and Lead Arranger, pursuant to which GS Bank agreed to extend the Borrowers a term loan facility up to an aggregate principal amount of
$38,000,000
(the “Facility” and each term loan made thereunder, a “Term Loan”). On September 18, 2015, the Agreement was amended to add Premier Payments LLC (“Premier”) as a borrower. The Company, Newtek Business Services Holdco 1, Inc., a wholly owned subsidiary of the Company (“Intermediate Holdings”), and certain subsidiaries of Intermediate Holdings party to the Agreement from time to time, have agreed to guarantee the repayment of the Facility and are parties to the Agreement as “Guarantors” thereunder. At
March 31, 2017
,
$22,000,000
was outstanding under this Facility. At
March 31, 2017
, we 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
March 31, 2017
and
December 31, 2016
, respectively (in thousands):
As of
March 31, 2017
Distribution by Business Type
Business Type
# of Loans
Balance
Average Balance
% of Balance
Existing Business
981
$
186,561
$
190
81.5
%
Business Acquisition
174
29,603
170
12.9
%
Start-Up Business
134
12,741
95
5.6
%
Total
1,289
$
228,905
$
178
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
March 31, 2017
and
December 31, 2016
, respectively (in thousands):
As of
March 31, 2017
Distribution by Borrower Credit Score
Credit Score
# of Loans
Balance
Average Balance
% of Balance
500 to 550
17
$
2,017
$
119
0.9
%
551 to 600
41
7,775
190
3.4
%
601 to 650
171
33,909
198
14.8
%
651 to 700
362
68,084
188
29.7
%
701 to 750
385
69,574
181
30.4
%
751 to 800
263
42,049
160
18.4
%
801 to 850
39
3,630
93
1.6
%
Not available
11
1,867
170
0.8
%
Total
1,289
$
228,905
$
178
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
March 31, 2017
and
December 31, 2016
, respectively (in thousands):
As of
March 31, 2017
Distribution by Primary Collateral Type
Collateral Type
# of Loans
Balance
Average Balance
% of Balance
Commercial Real Estate
631
$
141,667
$
225
61.9
%
Machinery and Equipment
205
37,027
181
16.2
%
Residential Real Estate
270
21,019
78
9.2
%
Other
47
14,587
310
6.4
%
Accounts Receivable and Inventory
86
12,485
145
5.5
%
Liquid Assets
16
716
45
0.3
%
Furniture and Fixtures
11
552
50
0.2
%
Unsecured
23
852
37
0.3
%
Total
1,289
$
228,905
$
178
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
March 31, 2017
and
December 31, 2016
, respectively (in thousands):
As of
March 31, 2017
Distribution by Days Delinquent
Delinquency Status
# of Loans
Balance
Average Balance
% of Balance
Current
1,165
$
203,058
$
174
88.7
%
1 to 30 days
39
7,471
192
3.3
%
31 to 60 days
17
3,957
233
1.7
%
61 to 90 days
1
233
233
0.1
%
91 days or greater
67
14,186
212
6.2
%
Total
1,289
$
228,905
$
178
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
March 31, 2017
and
2016
Investment Income
(in thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Investment income:
Interest income
$
4,382
$
2,533
$
1,849
Dividend income
2,300
2,293
7
Servicing income
1,646
1,371
275
Other income
665
597
68
Total investment income
$
8,993
$
6,794
$
2,199
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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 $207,437,000 from $158,140,000 for the three months ended
March 31, 2017
and
2016
, respectively combined with an increase in the Prime Rate from 3.50% to 3.75% . 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 three months ended
March 31, 2017
, we recognized $641,000 of interest income related to accrued non-performing interest owed by one borrower that paid their loan balance in full.
Dividend Income
(in thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Universal Processing Services of Wisconsin, LLC (UPSW)
$
1,750
$
1,300
$
450
Premier Payments LLC
450
450
—
CrystalTech Web Hosting, Inc. (NTS)
—
330
(330
)
Small Business Lending, LLC (SBL)
100
200
(100
)
The Secure CyberGateway, LLC
—
13
(13
)
Total dividend income
$
2,300
$
2,293
$
7
Dividend income was flat period over period. We earned $1,750,000 in dividend income from UPSW, representing a $450,000 increase over dividend income earned during the three months ended
March 31, 2016
. The increase was offset by decreases in dividend income earned from NTS and SBL. During the three months ended
March 31, 2017
, distributions received from NTS were classified as a return of capital. 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 NSBF originated servicing portfolio and servicing income earned for the three months ended
March 31, 2017
and
2016
:
(in thousands):
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Total NSBF originated servicing portfolio
(1)
$
998,871
$
797,167
$
201,704
Total servicing income earned
$
1,646
$
1,371
$
275
(1) Of this amount, the total average NSBF originated portfolio earning servicing income was $727,256,000 and $590,961,000 for the three months ended
March 31, 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 $136,295,000 period over period. The increase was a direct result of increased investments in SBA non-affiliate investments from
March 31, 2016
to
March 31, 2017
.
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)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Expenses:
Salaries and benefits
$
4,651
$
3,344
$
1,307
Interest
2,530
1,488
1,042
Depreciation and amortization
89
40
49
Other general and administrative costs
3,817
3,302
515
Total expenses
$
11,087
$
8,174
$
2,913
Salaries and Benefits
Salaries and benefits increased $1,307,000 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.
During the three months ended
March 31, 2017
, we recognized $385,000 of stock-based compensation expense related to the grant of restricted stock awards in 2016. No stock-based compensation expense was recognized during the three months ended
March 31, 2016
.
The increase was also attributable to a $113,000 decrease in managerial assistance fees charged to controlled affiliates which are credited to salaries and benefits.
Interest Expense
The following is a summary of interest expense by facility for the three months ended
March 31, 2017
and
2016
:
(in thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Notes payable - Securitization trusts
$
1,411
$
959
$
452
Bank notes payable
137
217
(80
)
Notes due 2022
177
178
(1
)
Notes due 2021
790
—
790
Notes payable - related parties
9
122
(113
)
Other
6
12
(6
)
Total interest expense
$
2,530
$
1,488
$
1,042
In April 2016, we issued $40,250,000 of 7.0% Notes due 2021 (the “2021 Notes”). The Company incurred $790,000 in related interest expense during the three months ended
March 31, 2017
on the 2021 Notes. Interest expense related to Notes payable - Securitization Trusts increased as a result of an additional securitization transaction completed in November 2016. The decrease in interest expense on Notes payable - related parties is attributed to a decrease in the average outstanding balance on Notes payable - related parties during the period.
Other General and Administrative Costs
Other general and administrative costs include professional fees, marketing, loan related costs and rent. The increase in other general and administrative costs is primarily related to an increase in loan related costs and rent expense. Loan related costs include referral fees, servicing expenses, appraisal fees, legal fees, search fees and other collateral preservation costs. Loan related costs increase as the number of loans we originate and service increase. At
March 31, 2017
, our loan portfolio consists of 1,289 SBA 7(a) loans as compared to 1,017 at
March 31, 2016
. Loan related costs increased $123,000 period over period. Rent expense increased $210,000 period over period. The increase is a result of a $151,000 property tax refund received during the three months ended
March 31, 2016
which reduced rent expense. The remaining increase in rent is attributed to the April 2016 move to Lake Success. Other increases were the result of increases in accounting and tax services, as well as managed IT services from a related party.
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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. Realized gains for the three months ended
March 31, 2017
and
2016
were
$8,685,000
and
$6,276,000
, respectively. We did not recognize any realized losses during the three months ended
March 31, 2017
and
2016
, respectively. The net change in unrealized appreciation or depreciation on investments reflects the change in portfolio investment fair values during the period, including the reversal of previously recorded unrealized appreciation or depreciation when gains or losses become realized.
Net Realized Gains on SBA Non-Affiliate Investments
Three Months Ended
March 31, 2017
March 31, 2016
(in thousands)
# of Debt Investments
$ Amount
# of Debt Investments
$ Amount
SBA non-affiliate investments funded during the quarter
98
$
78,643
102
$
56,058
SBA guaranteed non-affiliate investments sold during the quarter
84
$
59,813
99
$
42,493
Realized gains recognized on sale of SBA guaranteed non-affiliate investments
—
$
8,685
—
$
6,276
Average sale price as a percent of principal balance
(1)
—
112.03
%
—
112.41
%
(1) Realized gains greater than 110.00% must be split equally 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 March 31, 2017
Three Months Ended March 31, 2016
Change
Net unrealized appreciation on SBA guaranteed non-affiliate investments
$
113
$
62
$
51
Net unrealized depreciation on SBA unguaranteed non-affiliate investments
(556
)
(1,027
)
471
Net unrealized appreciation on controlled investments
931
3,690
(2,759
)
Change in provision for deferred taxes on unrealized gains on investments
(566
)
(1,608
)
1,042
Net unrealized depreciation on non-control/non-affiliate investments
—
(16
)
16
Total net unrealized (depreciation) appreciation on investments
$
(78
)
$
1,101
$
(1,179
)
Net unrealized appreciation 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 to the cost basis of the guaranteed portions of loans which have not yet been sold to reflect the expected sale price of those loans. Unrealized depreciation represents the reversal of unrealized appreciation when the loans are sold.
The decrease in net unrealized depreciation on SBA unguaranteed non-affiliate investments was driven by an increase in the prime rate and assumed prime rate increases combined with a decrease in the discount rate on non-performing SBA unguaranteed investments. The prime rate increased from 3.50% to 4.00% period over period. The discount rate on non-performing SBA unguaranteed investments decreased from 8.37% to 5.90% period over period.
Net Unrealized Appreciation (Depreciation) on Controlled and Non-Control/Non-Affiliate Investments
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Table of Contents
(in thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Universal Processing Services of Wisconsin, LLC (UPSW)
$
1,000
$
2,800
$
(1,800
)
CrystalTech Web Hosting, Inc. (NTS)
(350
)
—
(350
)
Premier Payments LLC (Premier)
—
988
(988
)
CDS Business Services, Inc. (NBCS)
1,750
(100
)
1,850
PMTWorks Payroll, LLC (PMT)
(1,395
)
—
(1,395
)
The Secure CyberGateway, LLC
—
2
(2
)
Titanium Asset Management LLC
(27
)
(16
)
(11
)
Excel WebSolutions, LLC
(47
)
—
(47
)
Total net unrealized appreciation (depreciation)
$
931
$
3,674
$
(2,743
)
The primary driver of the increases for UPSW were increases in multiples of comparable companies and increases in revenue growth projections for the three months ended
March 31, 2017
compared to the three months ended
March 31, 2016
. The increase at NBCS was a result of growth in its SBA 504 lending program and growth in Accounts Receivable and Inventory Financing programs. The decreases at NTS and PMT were a result of weaker than projected financial performance.
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
March 31, 2017
and
2016
, the Company recognized a provision for deferred taxes on unrealized gains of $566,000 and $1,608,000, respectively.
Net Unrealized Depreciation on Servicing Assets
(in thousands)
Three Months Ended March 31, 2017
Three Months Ended March 31, 2016
Change
Net unrealized depreciation on servicing assets
$
(609
)
$
(403
)
$
(206
)
The increase in unrealized depreciation on servicing assets is primarily related to the increase in the discount rate from 12.03% to 12.20% and an increase in the cumulative prepayment rate from 15.50% to 18.50% period over period.
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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, “At-The-Market”, or ATM, and private offerings of securities.
Public Offerings
ATM Program
On March 20, 2017, we entered into an ATM equity distribution agreement with JMP Securities LLC, Compass Point Research & Trading, LLC, and Ladenburg Thalmann & Co. (each a “Placement Agent” and collectively, the “Placement Agents”). The equity distribution agreement provides that we may offer and sell up to 2,900,000 shares of our common stock from time to time through the Placement Agents. During the three months ended
March 31, 2017
, we did not sell any shares under the program and, as of
March 31, 2017
, 2,900,000 shares remain available for issuance and sale under the equity distribution agreement. We intend to use the net proceeds from selling securities under the ATM program 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 $37,041,000.
Debt Offerings
In April 2016, the Company and U.S. Bank, N.A. (the “Trustee”), entered into the Second Supplemental Indenture (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 “2021 Notes”). 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.”
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
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Table of Contents
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 Securities Exchange Act of 1934, as amended (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
March 31, 2017
, the Company is in compliance with all covenants related to the 2021 Notes.
On October 15, 2015 we completed a public offering of 2,000,000 shares of our common stock at a public offering price of $16.50 per share. We also sold an additional 300,000 shares of common stock at a public offering price of $16.50 per share pursuant to the underwriter's full exercise of the over-allotment option. Proceeds, net of offering costs and expenses were $35,290,000.
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”). 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
March 31, 2017
, the Company is in compliance with all covenants related to the 2022 Notes.
Capital One Facilities
NSBF has a $50,000,000 million credit facility with Capital One. The facility provides for a 55% advance rate on the non-guaranteed portions of the SBA 7(a) loans it originates, and a 90% advance rate on the guaranteed portions of SBA 7(a) loans it originates. The interest rate on the portion of the facility, collateralized by the government guaranteed portion of SBA 7(a) loans, is set at 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 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. In June 2015, we 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). In addition, the amendment extended the date on which the facility will convert to a term loan from May 16, 2016 to May 16, 2017 and extended the maturity date of the facility to May 16, 2019. NSBF and Capital One have entered into a letter of intent to increase the facility to $75,000,000 with a reduction in the interest rates, subject to SBA approval. At
March 31, 2017
, we had
$0
and
$18,300,000
outstanding under the unguaranteed and guaranteed lines of credit, respectively. At
March 31, 2017
, we were in full compliance with all applicable loan covenants.
Related Party Notes Payable
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Table of Contents
In June 2015, we entered into an unsecured revolving line of credit agreement with UPSW and NTS. Maximum borrowings under the line of credit are $38,000,000. The outstanding balance bears interest at a rate equal to (a) the greater of LIBOR or 50 basis points plus (b) 7% or at a rate equal to (y) the greater of the Prime Rate or 3.5%, plus (z) 6%. At
March 31, 2017
, the line of credit bears interest at a rate of 8.0%. The revolving line of credit has a maturity date of June 21, 2019. There were no borrowings outstanding at
March 31, 2017
.
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 a securitization which resulted in the transfer of $56,073,000 of unguaranteed portions of SBA loans to the Newtek Small Business Loan Trust, Series 2016-1 (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. Unless extended or terminated by the Board, the Company expects the termination date for this new repurchase program will be on May 21, 2017. Under the program, purchases may be made at management's discretion from time to time in open-market transactions, in accordance with all applicable securities laws and regulations.
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 three months ended March 31, 2016, 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
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 has a program which allows it to repurchase up to 10%, or $832,400 in aggregate principal amount, of its 7.50% Notes due 2022 and up to 10%, or $4,025,000 in aggregate principal amount, of its 7.00% Notes due 2021 through open market purchases, including block purchases, in such manner as will comply with the provisions of the Investment Company Act of 1940, as amended (the “1940 Act”) and the Exchange Act. Unless extended or terminated by the Board, the Company expects the termination date for the repurchase plan to be on May 21, 2017. The Company did not make any repurchases under this program during the three months ended
March 31, 2017
.
Cash Flows and Liquidity
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As of
March 31, 2017
, the Company’s unused sources of liquidity consisted of $28,938,000 available through the Capital One facility; $19,119,000 available through notes payable with related parties;
$5,995,000
in unrestricted cash and
$35,000
in money market funds.
Restricted cash of $
28,963,000
as of
March 31, 2017
is primarily held at NSBF. The majority, or $28,212,000 of restricted cash, is related to NSBF, and 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 a voluntary agreement with the SBA.
The Company generated and used cash as follows:
(in thousands)
Three months ended March 31, 2017
Three months ended March 31, 2016
Net cash (used in) provided by operating activities
$
(28,326
)
$
8,793
Net cash used in investing activities
(136
)
(76
)
Net cash provided by (used in) financing activities
32,406
(9,411
)
Net increase (decrease) in cash and cash equivalents
3,944
(694
)
Cash and cash equivalents, beginning of period
2,051
4,308
Cash and cash equivalents, end of period
$
5,995
$
3,614
During the three months ended
March 31, 2017
, operating activities used cash of $28,326,000, consisting primarily of (i) $78,643,000 of SBA 7(a) loan investments, (ii) $5,423,000 of advances to NBCS under a revolving line of credit (iii) 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, and (iv) a decrease in restricted cash. These decreases were offset by (i) $11,086,000 of principal payments from affiliate and non-affiliate investments and (ii) $68,471,000 of proceeds from the sale of SBA 7(a) investments.
Net cash provided by financing activities was $32,406,000 consisting primarily of (i) proceeds of $37,042,000, net of offering costs from the sale of 2,857,500 shares of common stock and (ii) net borrowings of $13,200,000 from our Capital One lines of credit. These increases were offset by (i) $6,151,000 of dividend payments, (ii) $8,892,000 of principal payments related to securitizations, and (iii) $1,400,000 repayment of amounts owed under our related party revolving line of credit.
Contractual Obligations
The following chart represents the Company’s significant obligations and commitments as of
March 31, 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
$
18,300
$
18,300
$
—
$
—
$
—
Securitization notes payable
(1)
112,080
—
—
—
112,080
Notes due 2022
(1)
8,324
—
—
—
8,324
Notes due 2021
(1)
40,250
—
—
40,250
—
Employment agreements
(2)
1,200
900
300
—
—
Operating leases
13,510
1,565
3,059
2,274
6,612
Totals
$
193,664
$
20,765
$
3,359
$
42,524
$
127,016
(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 $825,000 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:
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.
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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 net income before net interest expense, income tax expense, depreciation and amortization (“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.
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
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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 months ended
March 31, 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
$6,551,000
and
$5,983,000
at
March 31, 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.
Recently Adopted Accounting Standards
In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” which intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this standard with respect to its accounting for share based payments.
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 is currently evaluating the impact this ASU will have 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
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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 is currently evaluating the impact this ASU will have on its consolidated financial statements and disclosures.
Off Balance Sheet Arrangements
There were no off balance sheet arrangements as of
March 31, 2017
.
Recent Developments
Portfolio Company Developments
On April 6, 2017, the Company invested in 100% of the common stock of a new wholly owned, controlled portfolio company, International Professional Marketing, Inc. (“IPM”). IPM provides consulting, design and implementation of technology solutions for enterprise and commercial clients. Total consideration paid by the Company was $11,120,000 and consisted of $1,000,000 in restricted shares of Newtek common stock and $8,752,000 in cash, with the $1,368,000 balance to be paid in cash in two equal installments in 2018 and 2019 based on IPM attaining specific EBITDA levels for 2017 and 2018.
Quarterly Dividend
On May 4, 2017 the Company declared a quarterly cash dividend of $0.40 per share payable on June 30, 2017 to shareholders of record as of May 31, 2017. The dividend will be paid in cash or shares of the Company's common stock through participation in the Company's dividend reinvestment plan, at the election of shareholders.
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 $34,993,000 at
March 31, 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
March 31, 2017
, cash deposits in excess of insured amounts totaled approximately $
14,151,000
.
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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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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
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.
ITEM 1A. RISK FACTORS.
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 International Professional Marketing Inc., 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.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS.
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 furnished 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: May 8, 2017
By:
/
S
/ B
ARRY
S
LOANE
Barry Sloane
Chairman and Chief Executive Officer
(Principal Executive Officer)
Date: May 8, 2017
By:
/
S
/ J
ENNIFER
E
DDELSON
Jennifer Eddelson
Chief Accounting Officer
(Principal Financial Officer and Principal Accounting Officer)
187