Capital Southwest Announces Financial Results For Second Fiscal Quarter Ended September 30, 2016

DALLAS, Nov. 07, 2016 (GLOBE NEWSWIRE) -- Capital Southwest Corporation ("Capital Southwest" or the "Company") (Nasdaq:CSWC) today announced its financial results for the second fiscal quarter ended September 30, 2016.

Second Quarter Fiscal Year 2017 Financial Highlights
  • Total Investment Portfolio: $238.3 million
    • Total Credit Portfolio: $137.6 million
      •   $55 MM in new credit investments originated during the quarter
    • Total CSWC investment in I-45 SLF: $50.5 million
      • I-45 SLF portfolio increased to $172.5 million from $134.5 million during the quarter
      • I-45 SLF portfolio consists of 36 credits; 98% 1 st Lien Debt and 2% 2 nd Lien Debt
    • Total Equity Portfolio, excluding investment in I-45 SLF: $50.2 million
  • Pre-Tax Net Investment Income of $1.8 million, or $0.11 per weighted average diluted share
  • Dividends paid: $0.11 per share
  • Total Cash: $57.8 million
  • Net Realized and Unrealized Portfolio Appreciation: $5.6 million
  • Total Net Assets: $278.9 million
  • Net Asset Value per Share: $17.74
  • Weighted Average Yield on Debt Investments: 10.00%
  • One legacy investment asset currently on non-accrual with fair value of $2.5 million, representing 1.8% of the total credit portfolio

In commenting on the Company's results, Bowen Diehl, President and Chief Executive Officer, stated, "This quarter, we experienced robust origination volume across both the Upper and Lower Middle Markets. We closed on approximately 2% of the opportunities we reviewed resulting in $55 million invested in six new and three existing portfolio companies. With our new ING led balance sheet credit facility, the additional capacity on our I-45 credit facility and our cash on hand, we are well positioned to continue to thoughtfully grow our credit portfolio." 

Portfolio and Investment Activities

During the quarter ended September 30, 2016, the Company originated six new on-balance sheet credit investments totaling $48.3 million and made follow-on investments in three existing credit investments totaling $6.5 million. The Company also grew the I-45 SLF investment portfolio to $172.5 million from $134.5 million. The Company received proceeds related to scheduled repayments of certain debt securities totaling $1.0 million. New investment and follow-on investment transactions which occurred during the quarter ended September 30, 2016 are summarized as follows:

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