Business
Capital Southwest Announces Financial Results for Second Fiscal Quarter Ended September 30, 2020 and Announces Total Dividends of $0.51 per share for the Quarter Ended December 31, 2020
CSWC Reports Pre-Tax Net Investment Income of $0.44 Per Share and Estimates Undistributed Taxable Income at Quarter End of $1.19 Per Share DALLAS, Oct. 30,
About this update from Capital Southwest Corporation
[{"type":"text","content":"CSWC Reports Pre-Tax Net Investment Income of $0.44 Per Share and Estimates Undistributed Taxable Income at Quarter End of $1.19 Per Share\nDALLAS, Oct. 30, 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 second fiscal quarter ended September 30, 2020.\n Second Quarter Fiscal Year 2021 Financial Highlights ●Total Investment Portfolio: $631.2 million ○Credit Portfolio of $520.6 million: ▪91% 1st Lien Senior Secured Debt ▪$63.3 million in new committed credit investments ▪Weighted Average Yield on Debt Investments: 10.3% ▪No new credit investments placed on non-accrual during the quarter ●Three Upper Middle Market 1st Lien Senior Secured Debt investments remain on non-accrual with a fair value of $10.9 million, representing 1.7% of the total investment portfolio ○Equity Portfolio of $49.1 million, excluding investment in I-45 Senior Loan Fund (\"I-45 SLF\") ▪$3.0 million in new committed equity co-investments ○CSWC Investment in I-45 SLF of $61.5 million at fair value ▪I-45 SLF portfolio of $177.5 million ●Portfolio consists of 42 issuers: 96% 1st Lien Debt and 4% 2nd Lien Debt ▪$107.0 million of debt outstanding at I-45 SLF as of September 30, 2020 ●I-45 SLF fund leverage of 1.39x debt to equity at fair value at quarter end ▪I-45 SLF paid a $1.7 million quarterly dividend to CSWC, an annualized yield of 11.0%●Pre-Tax Net Investment Income: $8.1 million, or $0.44 per weighted average diluted share●Dividends: Paid $0.41 per share Regular Dividend, $0.10 per share Supplemental Dividend ○103% LTM Pre-Tax NII Regular Dividend Coverage ○Total Dividends for the quarter ended September 30, 2020 of $0.51 per share ○Undistributed Taxable Income at quarter end estimated at $1.19 per share●Net Realized and Unrealized Portfolio Appreciation: $8.4 million ○$7.0 million of net appreciation related to the upper middle market portfolio, including I-45 SLF ○$1.4 million of net appreciation related to the lower middle market portfolio●Realized Loss on Extinguishment of Debt: $0.3 million ○Redeemed $20 million in aggregate principal of the 5.95% Notes due 2022 (the \"Dec...