Business
Capital Southwest Announces Financial Results for First Fiscal Quarter Ended June 30, 2025
DALLAS, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed
About this update from Capital Southwest Corporation
[{"type":"text","content":"DALLAS, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the first fiscal quarter ended June 30, 2025. First Quarter Fiscal Year 2026 Financial Highlights Total Investment Portfolio: $1.8 billion Credit Portfolio of $1.6 billion 99% 1st Lien Senior Secured Debt$113.4 million in new committed credit investments during the quarterWeighted Average Yield on Debt Investments: 11.8%Current non-accruals with a fair value of $14.7 million, representing 0.8% of the total investment portfolio Equity Portfolio of $166.2 million $1.8 million in new equity co-investments during the quarter Pre-Tax Net Investment Income: $32.7 million, or $0.61 per weighted average common share outstandingEstimated Undistributed Taxable Income (\"UTI\"): $1.00 per share as of June 30, 2025 Increase primarily due to realized gains of $27.2 million from the exit of two equity investments during the quarter LTM Operating Leverage: 1.7% for the quarter ended June 30, 2025Dividends: Paid $0.58 per share Regular Dividend and $0.06 per share Supplemental Dividend 106% LTM Pre-Tax NII Regular Dividend CoverageTotal Dividends for the quarter ended June 30, 2025 of $0.64 per share Net Realized and Unrealized Depreciation: $4.9 million, or 0.3% of total investments at fair value $7.3 million of net appreciation related to the equity portfolio$9.6 million of net depreciation related to the credit portfolio$2.6 million net realized and unrealized income tax provision Balance Sheet: Cash and Cash Equivalents: $46.9 millionTotal Net Assets: $916.5 millionNet Asset Value (“NAV”) per Share: $16.59 In commenting on the Company’s results, Michael Sarner, President and Chief Executive Officer, stated, “The June quarter saw continued strengthening of our balance sheet and a reduction in our overall risk profile. Our investment portfolio currently has a weighted average debt to EBITDA of 3.4x, non-accruals represent less than 1% of the portfolio at fair value, and PIK interest income represents only 5.8% of our total investment income. We believe these metrics, coupled with our corporate leverage o...