Business
Capital Southwest Announces Financial Results for Third Fiscal Quarter Ended December 31, 2019 and Announces Total Dividends of $0.51 Per Share for the Quarter Ended March 31, 2020
CSWC Reports Pre-Tax Net Investment Income of $0.44 Per Share DALLAS, Feb. 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 $0.44 Per Share\nDALLAS, Feb. 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 third fiscal quarter ended December 31, 2019.\n Third Quarter Fiscal Year 2020 Financial Highlights Total Investment Portfolio: $558.6 million Credit Portfolio of $456.1 million: 90% 1st Lien Senior Secured Debt$88.5 million in new committed credit investmentsWeighted Average Yield on Debt Investments: 11.3%Three Upper Middle Market 1st Lien Senior Secured Debt investments currently on non-accrual with a fair value of $18.2 million, representing 3.3% of the total investment portfolio Equity Portfolio of $44.2 million, excluding investment in I-45 Senior Loan Fund (\"I-45 SLF\") $3.9 million in new committed equity co-investments CSWC Investment in I-45 SLF of $58.3 million I-45 SLF portfolio of $206.2 million Portfolio consists of 46 issuers: 96% 1st Lien Debt and 4% 2nd Lien Debt I-45 SLF paid a $2.1 million quarterly dividend to CSWC, an annualized yield of 14.7% Sale of Media Recovery, Inc.: Completed successful exit of Media Recovery, generating a realized gain of $44.3 million ($2.38 per share) and an IRR since inception of 11.8%Pre-Tax Net Investment Income: $7.9 million, or $0.44 per weighted average diluted shareDividends: Paid $0.40 per share in Regular Dividend, $0.10 per share Supplemental Dividend, and $0.75 per share Special Dividend for the quarter ended December 31, 2019 109% LTM Pre-Tax NII Regular Dividend CoverageTotal Dividends for the quarter ended December 31, 2019 of $1.25 per share Net Realized and Unrealized Portfolio Depreciation: $10.4 million $2.9 million of net appreciation related to the lower middle market portfolio$9.0 million of net depreciation related to the upper middle market portfolio, including I-45 SLF$4.3 million of net depreciation related to the sale of Media Recovery $1.6 million in sales proceeds adjustments related to transaction costs$1.5 million in unrecognized earnout/escrow that CSWC has the ability to earn in the future$1.2 million success fee recognized as revenue by CSWC Ta...