Business
Capital Southwest Announces Financial Results for First Fiscal Quarter Ended June 30, 2020
CSWC Reports Pre-Tax Net Investment Income of $0.40 Per Share DALLAS, Aug. 03, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,”
About this update from Capital Southwest Corporation
[{"type":"text","content":"CSWC Reports Pre-Tax Net Investment Income of $0.40 Per Share\nDALLAS, Aug. 03, 2020 (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, 2020.\n First Quarter Fiscal Year 2021 Financial Highlights • Total Investment Portfolio: $587.2 million Credit Portfolio of $487.2 million:• 90% 1st Lien Senior Secured Debt• $28.8 million in new committed credit investments• Weighted Average Yield on Debt Investments: 10.1%• No new credit investments placed on non-accrual during the quarter - Three Upper Middle Market 1st Lien Senior Secured Debt investments currently on non-accrual with a fair value of $11.3 million, representing 1.9% of the total investment portfolioEquity Portfolio of $43.2 million, excluding investment in I-45 Senior Loan Fund (\"I-45 SLF\")• $1.3 million in new committed equity co-investmentsCSWC Investment in I-45 SLF of $56.8 million at fair value• I-45 SLF portfolio of $172.6 million - Portfolio consists of 42 issuers: 96% 1st Lien Debt and 4% 2nd Lien Debt• $107 million of debt outstanding at I-45 SLF as of June 30, 2020 - I-45 SLF fund leverage of 1.51x debt to equity at fair value at quarter endI-45 SLF paid a $1.8 million quarterly dividend to CSWC, an annualized yield of 12.5% • Pre-Tax Net Investment Income: $7.2 million, or $0.40 per weighted average diluted share • Dividends: Paid $0.41 per share Regular Dividend, $0.10 per share Supplemental Dividend 102% LTM Pre-Tax NII Regular Dividend CoverageTotal Dividends for the quarter ended June 30, 2020 of $0.51 per share • Net Realized and Unrealized Portfolio Appreciation: $2.1 million $4.7 million of net appreciation related to the upper middle market portfolio, including I-45 SLF$2.6 million of net depreciation related to the lower middle market portfolio • Balance Sheet: Cash and Cash Equivalents: $15.0 millionTotal Net Assets: $277.9 millionNet Asset Value (“NAV”) per Share: $14.95 In commenting on the Company's results, Bowen Diehl, President and Chief Executive Officer, stated, “This quarter we started to see some stabilization in both the Upper and Low...