Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ……………..to ……………..

Commission File Number: 814-00061

CAPITAL SOUTHWEST CORPORATION
(Exact name of registrant as specified in its charter)
Texas75-1072796
(State or other jurisdiction of incorporation
or organization)
(I.R.S. Employer
Identification No.)

5400 Lyndon B Johnson Freeway, Suite 1300, Dallas, Texas75240
(Address of principal executive offices)(Zip Code)

Registrant's telephone number, including area code: (214) 238-5700
Securities registered pursuant to Section 12(b) of the Act:
  
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.25 par value per shareCSWCThe Nasdaq Global Select Market
5.95% Notes due 2022CSWCLThe Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  X No       

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes        No       

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
¨
Accelerated filer
x
Non-accelerated filer
¨
Smaller reporting company
¨
Emerging growth company
¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes        No X

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

18,623,252 shares of Common Stock, $0.25 value per share, as of October 29, 2020.



TABLE OF CONTENTS
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Table of Contents
PART I – FINANCIAL INFORMATION

Item 1.    Consolidated Financial Statements
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except shares and per share data)
September 30,March 31,
20202020
(Unaudited)
Assets
Investments at fair value:
Non-control/Non-affiliate investments (Cost: $488,474 and $436,463, respectively)$483,552 $421,280 
Affiliate investments (Cost: $89,548 and $94,724, respectively)86,162 92,032 
Control investments (Cost: $80,800 and $68,000, respectively)61,483 39,760 
Total investments (Cost: $658,822 and $599,187, respectively)631,197 553,072 
Cash and cash equivalents16,011 13,744 
Receivables:
Dividends and interest10,170 10,389 
Escrow1,150 1,643 
Other300 51 
Income tax receivable344 147 
Deferred tax asset1,421 1,402 
Debt issuance costs (net of accumulated amortization of $3,144 and $2,720, respectively)2,556 2,980 
Other assets1,116 1,531 
Total assets$664,265 $584,959 
Liabilities
December 2022 Notes (Par value: $57,136 and $77,136, respectively)$56,339 $75,812 
October 2024 Notes (Par value: $125,000 and $75,000, respectively)122,623 73,484 
Credit facility187,000 154,000 
Other liabilities6,526 4,883 
Accrued restoration plan liability3,011 3,082 
Income tax payable649 513 
Deferred tax liability1,988 963 
Total liabilities378,136 312,737 
Commitments and contingencies (Note 10)
Net Assets
Common stock, $0.25 par value: authorized, 40,000,000 shares; issued, 20,962,764 shares at September 30, 2020 and 20,337,610 shares at March 31, 20205,241 5,085 
Additional paid-in capital318,307 310,846 
Total distributable earnings (loss)(13,482)(19,772)
Treasury stock - at cost, 2,339,512 shares(23,937)(23,937)
Total net assets286,129 272,222 
Total liabilities and net assets$664,265 $584,959 
Net asset value per share (18,623,252 shares outstanding at September 30, 2020 and 17,998,098 shares outstanding at March 31, 2020)$15.36 $15.13 


The accompanying Notes are an integral part of these Consolidated Financial Statements.
3

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except shares and per share data)
Three Months EndedSix Months Ended
September 30,September 30,
2020201920202019
Investment income:
Interest income:
Non-control/Non-affiliate investments$11,879 $9,236 $21,948 $18,267 
Affiliate investments2,003 2,001 4,579 4,051 
Control investments— — — 265 
Dividend income:
Non-control/Non-affiliate investments171 68 354 155 
Affiliate investments— — — 19 
Control investments1,689 3,519 3,463 7,432 
Interest income from cash and cash equivalents12 28 
Fees and other income939 382 1,498 800 
Total investment income16,685 15,218 31,849 31,017 
Operating expenses:
Compensation1,961 1,708 3,681 3,729 
Share-based compensation853 685 1,465 1,522 
Interest4,397 3,716 8,725 7,522 
Professional fees583 462 1,153 1,088 
Net pension expense33 35 66 71 
General and administrative754 1,231 1,486 2,020 
Total operating expenses8,581 7,837 16,576 15,952 
Income before taxes8,104 7,381 15,273 15,065 
Income tax (benefit) expense(215)566 135 890 
Net investment income$8,319 $6,815 $15,138 $14,175 
Realized (loss) gain
Non-control/Non-affiliate investments$349 $267 $(5,198)$1,316 
Affiliate investments(1,628)16 (1,628)17 
Control investments— — — 167 
Total net realized (loss) gain on investments, net of tax(1,279)283 (6,826)1,500 
Net unrealized appreciation (depreciation) on investments
Non-control/Non-affiliate investments3,919 (809)10,824 (3,781)
Affiliate investments1,710 (181)(1,257)1,025 
Control investments4,732 (2,904)8,923 (2,819)
Income tax (provision) benefit(725)(475)(1,249)(658)
Total net unrealized appreciation (depreciation) on investments, net of tax9,636 (4,369)17,241 (6,233)
Net realized and unrealized gains (losses) on investments8,357 (4,086)10,415 (4,733)
Realized losses on extinguishment of debt(286)— (286)— 
Net increase in net assets from operations$16,390 $2,729 $25,267 $9,442 
Pre-tax net investment income per share - basic and diluted$0.44 $0.42 $0.83 $0.85 
Net investment income per share – basic and diluted$0.45 $0.38 $0.82 $0.80 
Net increase in net assets from operations – basic and diluted$0.88 $0.15 $1.37 $0.53 
Weighted average shares outstanding – basic18,600,443 17,770,011 18,375,402 17,653,607 
Weighted average shares outstanding – diluted18,600,443 17,770,011 18,375,402 17,653,607 
The accompanying Notes are an integral part of these Consolidated Financial Statements.
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(Unaudited)
(In thousands)
20202019
Net assets, March 31$272,222 $325,963 
Operations:
Net investment income6,819 7,360 
Net realized (loss) gain on investments(5,547)1,217 
Net unrealized appreciation (depreciation) on investments, net of tax7,605 (1,864)
Net increase in net assets from operations8,877 6,713 
Dividends to shareholders ($0.51 and $0.49 per share, respectively)(9,480)(8,629)
Capital share transactions:
Change in restoration plan liability
Issuance of common stock5,622 3,972 
Share-based compensation expense612 837 
Common stock withheld for payroll taxes upon vesting of restricted stock(3)(49)
Increase in net assets5,637 2,851 
Net assets, June 30$277,859 $328,814 
Operations:
Net investment income8,319 6,815 
Net realized (loss) gain on investments(1,279)283 
Net unrealized appreciation (depreciation) on investments, net of tax9,636 (4,369)
Realized losses on extinguishment of debt(286)— 
Net increase in net assets from operations16,390 2,729 
Dividends to shareholders ($0.51 and $0.50 per share, respectively)(9,498)(8,964)
Capital share transactions:
Change in pension plan funded status
Issuance of common stock516 4,827 
Exercise of employee stock options— — 
Share-based compensation expense853 685 
Common stock withheld for payroll taxes upon vesting of restricted stock— — 
Increase (decrease) in net assets8,270 (715)
Net assets, September 30$286,129 $328,099 

The accompanying Notes are an integral part of these Consolidated Financial Statements.
5

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Six Months Ended
September 30,
20202019
Cash flows from operating activities
Net increase in net assets from operations$25,267 $9,442 
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases and originations of investments(99,622)(64,725)
Proceeds from sales and repayments of debt investments in portfolio companies36,624 39,964 
Proceeds from sales and return of capital of equity investments in portfolio companies272 7,271 
Payment of accreted original issue discounts364 570 
Depreciation and amortization952 1,249 
Net pension benefit(53)(34)
Realized losses on extinguishment of debt286— 
Realized loss (gain) on investments before income tax6,839 (1,500)
Net unrealized (appreciation) depreciation on investments(18,490)5,575 
Accretion of discounts on investments(1,063)(968)
Payment-in-kind interest and dividends(3,048)(889)
Stock option and restricted awards expense1,465 1,522 
Deferred income taxes1,005 1,149 
Changes in other assets and liabilities:
Decrease in dividend and interest receivable218 928 
Decrease (increase) in escrow receivables493 (48)
(Increase) decrease in tax receivable(197)28 
(Increase) decrease in other receivables(249)486 
Decrease (increase) in other assets358 (478)
Increase in taxes payable136 413 
Increase (decrease) in other liabilities1,644 (231)
Decrease in payable for unsettled transaction— (1,158)
Net cash used in operating activities(46,799)(1,434)
Cash flows from financing activities
Proceeds from common stock offering6,140 8,937 
Equity offering costs paid— (106)
Borrowings under credit facility93,000 47,000 
Repayments of credit facility(60,000)(80,000)
Debt issuance costs paid(1,093)(360)
Proceeds from issuance of October 2024 Notes50,000 63,700 
Partial redemption of December 2022 Notes(20,000)— 
Dividends to shareholders(18,978)(17,593)
Common stock withheld for payroll taxes upon vesting of restricted stock(3)(49)
Net cash provided by financing activities49,066 21,529 
Net increase in cash and cash equivalents2,267 20,095 
Cash and cash equivalents at beginning of period13,744 9,924 
Cash and cash equivalents at end of period$16,011 $30,019 
Supplemental cash flow disclosures:
Cash paid for income taxes$539 $— 
Cash paid for interest5,629 6,090 
The accompanying Notes are an integral part of these Consolidated Financial Statements.
6

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
AAC HOLDINGS, INC.First Lien - DIPHealthcare services10.00%, 8.00% PIK6/25/20203/25/2021$5,327 $5,204 $5,327 
First Lien - Priming FacilityP+10.00% (Floor 1.00%)/Q, Current Coupon 13.25%3/21/20194/15/20201,968 1,968 1,968 
First Lien16
L+6.75% (Floor 1.00%)/Q, 4.00% PIK, Current Coupon 13.33%6/28/20176/30/20239,079 8,916 4,058 
16,088 11,353 
ACE GATHERING, INC.
Second Lien15
Energy services (midstream)L+8.50% (Floor 2.00%)/Q, Current Coupon 10.50%12/13/201812/13/20239,563 9,425 9,304 
ADAMS PUBLISHING GROUP, LLCFirst LienMedia, marketing & entertainmentL+7.00% (Floor 1.75%)/Q, Current Coupon 8.75%7/2/20187/2/202310,689 10,538 10,689 
AG KINGS HOLDINGS INC.
First Lien - DIP10
Food, agriculture & beverageL+8.00% (Floor 1.00%)/M, Current Coupon 9.00%8/26/202012/11/2020952 952 952 
First Lien - Super-Priority DIP Rollup16
L+10.00 (Floor 1.00%)/M, Current Coupon 11.00%9/18/202012/11/20203,796 3,740 2,767 
First Lien16
L+9.00% (Floor 1.00%)/M, 2.00% PIK, Current Coupon 16.25%8/4/20168/8/20213,801 3,744 2,772 
8,436 6,491 
ALLIANCE SPORTS GROUP, L.P.Senior subordinated debtConsumer products & retail13.00% PIK8/1/20172/1/202310,432 10,324 10,244 
Unsecured convertible note6.00% PIK7/15/20209/30/2024173 173 173 
3.88% membership preferred interest8/1/2017— 2,500 2,500 
12,997 12,917 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
AMERICAN NUTS OPERATIONS LLC13
First Lien - Term LoanFood, agriculture and beverageL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%4/10/20184/10/202317,106 16,909 17,089 
First Lien - Term Loan C10
L+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%12/21/20184/10/20231,804 1,783 1,802 
3,000,000 units of Class A common stock9
4/10/2018— 3,000 2,752 
21,692 21,643 
AMERICAN TELECONFERENCING SERVICES, LTD. (DBA PREMIERE GLOBAL SERVICES, INC.)First LienTelecommunicationsL+6.50% (Floor 1.00%)/Q, Current Coupon 7.50%9/21/20166/8/20235,921 5,860 3,955 
Second Lien0.5%, L+9.00% PIK (Floor 1.00%)/Q, Current Coupon 10.50%11/3/20166/6/20242,226 2,194 1,147 
8,054 5,102 
AMWARE FULFILLMENT LLCFirst LienDistributionL+9.50% (Floor 1.00%)/M, Current Coupon 10.50%7/29/201612/31/202011,664 11,651 11,664 
ASC ORTHO MANAGEMENT COMPANY, LLC13
Revolving LoanHealthcare servicesL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%8/31/20188/31/20231,500 1,482 1,428 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%8/31/20188/31/20238,970 8,854 8,540 
Second Lien13.25% PIK8/31/201812/1/20233,960 3,907 3,627 
2,042 Common Units9
8/31/2018— 750 356 
14,993 13,951 
BINSWANGER HOLDING CORP.First LienDistributionL+8.50% (Floor 1.00%)/M, Current Coupon 9.50%3/9/20173/9/202211,273 11,195 11,138 
900,000 shares of common stock3/9/2017— 900 636 
12,095 11,774 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
BLASCHAK COAL CORP.
Second Lien- Term Loan15
Commodities & miningL+11.00% (Floor 1.00%)/Q, 1.00% PIK, Current Coupon 13.00%7/30/20187/30/20238,667 8,556 8,581 
Second Lien- Term Loan B15
L+11.00% (Floor 1.00%)/Q, 1.00% PIK, Current Coupon 13.00%3/30/20207/30/20232,005 1,970 1,985 
10,526 10,566 
CALIFORNIA PIZZA KITCHEN, INC.
Priority First Lien10
RestaurantsL+10.00% (Floor 1.50%)/M, Current Coupon 11.50%4/27/20208/23/2022669 650 662 
Priority First Lien Rolled UpL+10.00% (Floor 1.50%)/M, Current Coupon 11.50%5/12/20208/23/2022699 697 692 
First Lien16
L+6.00% (Floor 1.00%)/M, Current Coupon 7.62%8/19/20168/23/20224,156 4,137 1,268 
5,484 2,622 
CAPITAL PAWN HOLDINGS, LLCFirst LienConsumer products & retailL+8.25% (Floor 1.00%)/Q, Current Coupon 9.25%12/21/20177/8/20238,854 8,837 8,854 
CLICKBOOTH.COM, LLCRevolving LoanMedia, marketing & entertainmentL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%12/5/20171/31/20251,086 1,079 1,086 
First LienL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%12/5/20171/31/202518,763 18,522 18,762 
19,601 19,848 
COASTAL TELEVISION BROADCASTING HOLDINGS LLC
Revolving Loan10
Media, marketing & entertainmentL+10.00% (Floor 2.00%)6/4/20206/4/2025— (9)— 
First LienL+10.00% (Floor 2.00%)/Q, Current Coupon 12.00%6/4/20206/4/20258,678 8,511 8,504 
8,502 8,504 
DANFORTH ADVISORS, LLC13
875 Class A equity units9
9/28/2018— 875 2,014 
DRIVEN, INC.First LienBusiness ServicesL+8.00% (Floor 2.00%)/Q, Current Coupon 10.00%6/28/20196/28/202411,880 11,690 11,880 
DUNN PAPER, INC.Second LienPaper & forest productsL+8.75% (Floor 1.00%)/M, Current Coupon 9.75%9/28/20168/26/20233,000 2,970 3,000 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
ELECTRONIC TRANSACTION CONSULTANTS LLC13
Revolving Loan10
Software & IT servicesL+7.50% (Floor 1.00%)7/24/20207/24/2025— (27)— 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%7/24/20207/24/202510,000 9,830 9,830 
1,000 Class A units9
7/24/20207/24/2025— 1,000 1,000 
10,803 10,830 
ENVIRONMENTAL PEST SERVICE MANAGEMENT COMPANY, LLCFirst LienConsumer servicesL+7.00%(Floor 1.00%)/Q, Current Coupon 8.00%6/22/20186/22/202315,211 15,048 15,211 
Delayed Draw Term Loan10
L+7.00%(Floor 1.00%)/Q, Current Coupon 8.00%6/22/20186/22/20236,078 5,988 6,078 
21,036 21,289 
ESCP DTFS, INC.First Lien - Term Loan AIndustrial servicesL+6.50%(Floor 1.75%)/Q, Current Coupon 8.25%1/31/20201/31/20255,350 5,261 4,986 
First Lien - Term Loan BL+8.50%(Floor 1.75%)/Q, Current Coupon 10.25%1/31/20201/31/20255,350 5,261 4,986 
Delayed Draw Term Loan A110
L+6.50%(Floor 1.75%)1/31/20201/31/2025— (9)— 
Delayed Draw Term Loan A210
L+8.50%(Floor 1.75%)1/31/20201/31/2025— (9)— 
Delayed Draw Term Loan B1L+6.50%(Floor 1.75%), Current Coupon 8.25%1/31/20201/31/2025500 491 466 
Delayed Draw Term Loan B2L+8.50%(Floor 1.75%), Current Coupon 10.25%1/31/20201/31/2025500 490 466 
11,485 10,904 
FAST SANDWICH, LLC
Revolving Loan10
RestaurantsL+9.00% (Floor 1.00%)5/24/20185/23/2023— (37)— 
First LienL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%5/24/20185/23/20233,400 3,367 3,179 
3,330 3,179 
GS OPERATING, LLCFirst LienDistributionL+6.50%(Floor 1.50%)/M, Current Coupon 8.00%3/6/20202/24/20257,960 7,816 7,904 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
IAN, EVAN, & ALEXANDER CORPORATION (DBA EVERWATCH)
Revolving Loan10
Aerospace & defenseL+8.50% (Floor 1.00%)7/31/20207/31/2025— (39)— 
First LienL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%7/31/20207/31/20259,918 9,724 9,724 
9,685 9,724 
ICS DISTRIBUTION, LLC8
First LienIndustrial servicesL+8.50%(Floor 2.00%)/Q, Current Coupon 10.50%10/31/201910/29/202420,500 20,078 20,090 
IENERGIZER LIMITED
First Lien9
Business servicesL+6.00%(Floor 1.00%)/M, Current Coupon 7.00%4/17/20194/17/202410,500 10,421 10,500 
JVMC HOLDINGS CORP.First LienFinancial servicesL+6.50% (Floor 1.00%)/M, Current Coupon 7.50%2/28/20192/28/20247,276 7,221 7,137 
LANDPOINT HOLDCO, INC.First LienBusiness ServicesL+7.50%(Floor 1.00%)/Q, Current Coupon 8.50%12/30/201912/30/202419,170 18,834 18,039 
LGM PHARMA, LLC13
First LienHealthcare productsL+8.50% (Floor 1.00%)/M, Current Coupon 9.50%11/15/201711/15/202311,483 11,359 11,483 
Delayed Draw Term LoanL+10.00% (Floor 1.00%)/Q, Current Coupon 11.00%7/24/202011/15/20232,500 2,453 2,500 
142,278.89 units of Class A common stock9
11/15/2017— 1,600 2,588 
15,412 16,571 
LIGHTING RETROFIT INTERNATIONAL, LLC (DBA ENVOCORE)First LienEnvironmental services6.75%, L+2.25% PIK (Floor 2.00%)/Q, Current Coupon 11.00%6/30/20176/30/202213,756 13,697 12,271 
25,603 shares of Series C preferred stock8/13/2018— 25 — 
396,825 shares of Series B preferred stock6/30/2017— 500 — 
14,222 12,271 
MEDIA RECOVERY, INC.EarnoutIndustrial products11/25/2019— 1,517 — 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
NINJATRADER, INC.13
Revolving Loan10
Financial servicesL+6.00% (Floor 1.50%)12/18/201912/18/2024— (6)— 
First LienL+6.00% (Floor 1.50%)/Q, Current Coupon 7.50%12/18/201912/18/202418,250 17,933 18,250 
2,000,000 Preferred Units9
12/18/2019— 2,000 3,875 
19,927 22,125 
RESEARCH NOW GROUP, INC.Second LienBusiness servicesL+9.50% (Floor 1.00%)/M, Current Coupon 10.50%12/8/201712/20/202510,500 9,941 9,975 
ROSELAND MANAGEMENT, LLC
Revolving Loan10
Healthcare servicesL+7.00% (Floor 2.00%)/Q, Current Coupon 9.00%11/9/201811/9/2023500 478 500 
First LienL+7.00% (Floor 2.00%)/Q, Current Coupon 9.00%11/9/201811/9/202314,343 14,154 14,343 
13,811 Class A Units11/9/2018— 1,381 1,963 
16,013 16,806 
RTIC SUBSIDIARY HOLDINGS, LLC
Revolving Loan10
Consumer products & retailL+7.75% (Floor 1.25%)9/1/20209/1/2025— (13)— 
First LienL+7.75% (Floor 1.25%)/Q, Current Coupon 9.00%9/1/20209/1/20256,904 6,819 6,819 
6,806 6,819 
SCRIP INC.8
First LienHealthcare productsL+9.77% (Floor 2.00%)/M, Current Coupon 11.77%3/21/20193/21/202416,750 16,376 16,482 
100 shares of common stock3/21/2019— 1,000 967 
17,376 17,449 
TAX ADVISORS GROUP, LLC13
143.3 Class A units9
Financial services6/23/2017— 541 1,282 
TRINITY 3, LLC13
First Lien15
Technology products & componentsL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%9/30/20209/30/202510,000 9,850 9,850 
896.43 Class A units9
11/15/2019— 1,205 1,994 
11,055 11,844 
TINUITI INC.1,114 Preferred UnitsMedia, marketing & entertainment2/1/2017— 1,114 3,101 
1,443 Common Units2/1/2017— 277 2,372 
1,391 5,473 
12

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CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
USA DEBUSK, LLCFirst LienIndustrial ServicesL+5.75% (Floor 1.00%)/M, Current Coupon 6.75%2/25/202010/22/20247,940 7,807 7,885 
VISTAR MEDIA INC.First LienMedia, marketing & entertainmentL+7.50%, 2.50% PIK (Floor 2.00%)/M, Current Coupon 12.00%2/17/20174/3/202311,282 10,598 11,056 
171,617 shares of Series A preferred stock4/3/2019— 1,874 3,292 
Warrants (Expiration - April 3, 2029)4/3/2019— 620 1,245 
13,092 15,593 
VTX HOLDINGS, INC.8
First LienSoftware & IT servicesL+9.11% (Floor 2.00%)/Q, Current Coupon 11.11%7/23/20197/23/202421,575 21,134 21,575 
1,397,707 Series A Preferred units7/23/2019— 1,398 1,654 
22,532 23,229 
ZENFOLIO INC.
Revolving Loan10
Business servicesL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%7/17/20177/17/20231,000 991 910 
First LienL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%7/17/20177/17/202314,888 14,688 13,548 
15,679 14,458 
Total Non-control/Non-affiliate Investments$488,474 $483,552 
Affiliate Investments6
CENTRAL MEDICAL SUPPLY LLC13
Revolving Loan10
Healthcare servicesL+7.00% (Floor 1.75%)5/22/20205/22/2025$— $(28)$— 
First LienL+7.00% (Floor 1.75%)/Q, Current Coupon 8.75%5/22/20205/22/20257,500 7,359 7,350 
Delayed Draw Capex Term Loan10
L+7.00% (Floor 1.75%)/Q5/22/20205/22/2025— (28)— 
875,000 Preferred Units9
5/22/20205/22/2025— 875 875 
8,178 8,225 
CHANDLER SIGNS, LLC13
1,500,000 units of Class A-1 common stock9
Business services1/4/2016— 1,500 2,892 
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CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
DELPHI BEHAVIORAL HEALTH GROUP, LLCFirst LienHealthcare servicesP+8.50% (Floor 2.00%)/M, Current Coupon 11.75%4/8/20204/7/20231,397 1,396 1,409 
First LienP+6.50% (Floor 2.00%) PIK/M, Current Coupon 9.75%4/8/20204/7/20231,560 1,560 1,547 
1,681.04 Common Units4/8/2020— 3,615 3,615 
6,571 6,571 
DYNAMIC COMMUNITIES, LLC13
Revolving Loan10
Business servicesL+8.50% (Floor 1.00%)7/17/20187/17/2023— (3)— 
First LienL+8.50% (Floor 1.00%)/M, Current Coupon 9.50%7/17/20187/17/202310,640 10,507 9,587 
2,000,000 Preferred Units9
7/17/2018— 2,000 1,274 
12,504 10,861 
GRAMMATECH, INC.Revolving LoanSoftware & IT servicesL+7.50% (Floor 2.00%)/Q, Current Coupon 9.50%11/1/201911/1/20242,500 2,464 2,460 
First LienL+7.50% (Floor 2.00%)/Q, Current Coupon 9.50%11/1/201911/1/202411,500 11,329 11,316 
1,000 Class A units11/1/2019— 1,000 1,455 
14,793 15,231 
ITA HOLDINGS GROUP, LLC13
Revolving Loan10
Transportation & logisticsL+9.00% (Floor 1.00%)2/14/20182/14/2023— (27)— 
First Lien - Term LoanL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%2/14/20182/14/202310,030 9,932 9,970 
First Lien - Term B LoanL+11.00% (Floor 1.00%)/Q, Current Coupon 12.00%6/5/20182/14/20235,015 4,952 5,090 
First Lien - PIK Note A10.00% PIK3/29/20192/14/20232,547 2,104 2,529 
First Lien - PIK Note B10.00% PIK3/29/20192/14/2023100 100 100 
Warrants (Expiration - March 29, 2029)9
3/29/2019— 538 2,762 
9.25% Class A Membership Interest9
2/14/2018— 1,500 2,099 
19,099 22,550 
14

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
September 30, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
SIMR, LLCFirst LienHealthcare servicesL+10.00% (Floor 2.00%)/M, 7.00% PIK, Current Coupon 19.00%9/7/20189/7/202312,115 11,965 11,001 
9,374,510.2 Class B Common Units9/7/2018— 6,107 — 
18,072 11,001 
SONOBI, INC.13
First LienMedia, marketing & entertainmentL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%9/17/20209/16/20258,500 8,331 8,331 
500,000 Class A Common Units9
9/17/2020— 500 500 
8,831 8,831 
Total Affiliate Investments$89,548 $86,162 
Control Investments7
I-45 SLF LLC9, 11
80% LLC equity interestMulti-sector holdings10/20/2015— $80,800 $61,483 
Total Control Investments$80,800 $61,483 
TOTAL INVESTMENTS12
$658,822 $631,197 

1All debt investments are income-producing, unless otherwise noted. Equity investments are non-income producing, unless otherwise noted.
2All of the Company’s investments, unless otherwise noted, are pledged as collateral for the Company’s senior secured credit facility.
3The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”) or Prime (“P”) and reset daily (D), monthly (M), quarterly (Q), or semiannually (S). For each the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at September 30, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor. Certain investments, as noted, accrue payment-in-kind ("PIK") interest.
4The Company's investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not readily available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the Board of Directors, using significant unobservable Level 3 inputs. Refer to Note 4 for further discussion.
5Non-Control/Non-Affiliate investments are generally defined by the Investment Company Act of 1940, as amended (the “1940 Act”), as investments that are neither control investments nor affiliate investments. At September 30, 2020, approximately 76.6% of the Company’s investment assets were non-control/non-affiliate investments. The fair value of these investments as a percent of net assets is 169.0%.
15

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6Affiliate investments are generally defined by the 1940 Act as investments in which between 5% and 25% of the voting securities are owned and the investments are not classified as control investments. At September 30, 2020, approximately 13.8% of the Company’s investment assets were affiliate investments. The fair value of these investments as a percent of net assets is 30.1%.
7Control investments are generally defined by the 1940 Act as investments in which more than 25% of the voting securities are owned. At September 30, 2020, approximately 9.7% of the Company’s investment assets were control investments. The fair value of these investments as a percent of net assets is 21.5%.
8The investment is structured as a first lien last out term loan.
9Indicates assets that are not considered "qualifying assets" under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets. As of September 30, 2020, approximately 14.9% of the Company's assets are non-qualifying assets.
10The investment has an unfunded commitment as of September 30, 2020. Refer to Note 10 - Commitments and Contingencies for further discussion.
11Income producing through dividends or distributions.
12As of September 30, 2020, the cumulative gross unrealized appreciation for U.S. federal income tax purposes is approximately $20.7 million; cumulative gross unrealized depreciation for federal income tax purposes is $47.6 million. Cumulative net unrealized depreciation is $26.9 million, based on a tax cost of $655.9 million.
13ASC Ortho Management Company, LLC common units, Danforth Advisors, LLC common units, American Nuts Operations LLC Class A common stock, Electronic Transaction Consultants LLC Class A units, LGM Pharma, LLC Class A common stock, NinjaTrader, LLC preferred units, Trinity 3, LLC Class A units, Tax Advisors Group, LLC Class A units, Chandler Signs, LP Class A-1 common stock, Central Medical Supply LLC Preferred units, Dynamic Communities, LLC Preferred units, ITA Holdings Group, LLC membership interest and Sonobi, Inc. Class A common units are held through a wholly-owned taxable subsidiary.
14The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments, which as of September 30, 2020 represented 220.6% of the Company's net assets or 95.0% of the Company's total assets, are generally subject to certain limitations on resale, and may be deemed "restricted securities" under the Securities Act.
15The investment is structured as a split lien term loan, which provides the Company with a first lien priority on certain assets of the obligor and a second lien priority on different assets of the obligor.
16Investment is on non-accrual status as of September 30, 2020, meaning the Company has ceased to recognize interest income on the investment.
17Negative cost in this column represents the original issue discount of certain undrawn revolvers and delayed draw term loans.
A brief description of the portfolio company in which we made an investment that represents greater than 5% of our total assets as of September 30, 2020 is included in Note 13. Significant Subsidiaries.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
AAC HOLDINGS, INC.First Lien - Priming FacilityHealthcare servicesP +13.50% (Floor 1.00%)/Q, Current Coupon 16.75%3/21/20194/15/2020$1,968 $1,969 $1,968 
First Lien16
L+6.75% (Floor 1.00%)/Q, 4.00% PIK, Current Coupon 13.33%6/28/20176/30/20239,079 8,915 3,977 
10,884 5,945 
ACE GATHERING, INC.
Second Lien15
Energy services (midstream)L+8.50% (Floor 2.00%)/Q, Current Coupon 10.50%12/13/201812/13/20239,688 9,532 9,445 
ADAMS PUBLISHING GROUP, LLCFirst LienMedia, marketing & entertainmentL+7.50% (Floor 1.75%)/Q, Current Coupon 9.29%7/2/20187/2/202310,730 10,572 10,312 
Delayed Draw Term LoanL+7.50% (Floor 1.75%)/Q, Current Coupon 9.25%7/2/20187/2/2023344 320 330 
10,892 10,642 
AG KINGS HOLDINGS INC.8,16
First LienFood, agriculture & beverageL+10.02% (Floor 1.00%)/M, Current Coupon 12.69%8/4/20168/8/20219,308 9,194 5,445 
ALLIANCE SPORTS GROUP, L.P.Senior subordinated debtConsumer products & retail11.00%8/1/20172/1/202310,100 9,980 9,747 
3.88% membership preferred interest8/1/2017— 2,500 2,335 
12,480 12,082 
AMERICAN NUTS OPERATIONS LLC13
First Lien - Term LoanFood, agriculture and beverageL+9.50% (Floor 1.00%)/Q, Current Coupon 11.41%4/10/20184/10/202317,194 16,963 16,884 
First Lien - Term Loan C10
L+9.50% (Floor 1.00%)/Q, Current Coupon 11.41%12/21/20184/10/20231,804 1,781 1,771 
3,000,000 units of Class A common stock9
4/10/2018— 3,000 1,523 
21,744 20,178 
AMERICAN TELECONFERENCING SERVICES, LTD. (DBA PREMIERE GLOBAL SERVICES, INC.)First LienTelecommunicationsL+6.50% (Floor 1.00%)/Q, Current Coupon 8.24%9/21/20166/8/20235,926 5,856 3,348 
Second Lien0.5%, L+9.00% PIK (Floor 1.00%)/Q, Current Coupon 11.35%11/3/20166/6/20242,111 2,072 792 
7,928 4,140 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
AMWARE FULFILLMENT LLCFirst LienDistributionL+9.50% (Floor 1.00%)/M, Current Coupon 10.95%7/29/201612/31/202012,027 11,988 11,991 
ASC ORTHO MANAGEMENT COMPANY, LLC13
Revolving LoanHealthcare servicesL+7.50% (Floor 1.00%)/Q, Current Coupon 8.70%8/31/20188/31/20231,500 1,480 1,425 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 9.41%8/31/20188/31/20239,028 8,894 8,577 
Second Lien13.25% PIK8/31/201812/1/20233,709 3,649 3,275 
2,042 Common Units9
8/31/2018— 750 356 
14,773 13,633 
BINSWANGER HOLDING CORP.First LienDistributionL+8.50% (Floor 1.00%)/M, Current Coupon 9.96%3/9/20173/9/202211,604 11,500 11,163 
900,000 shares of common stock3/9/2017— 900 636 
12,400 11,799 
BLASCHAK COAL CORP.
Second Lien- Term Loan15
Commodities & miningL+11.00%/Q, (Floor 1.00%) 1.00% PIK, Current Coupon 13.91%7/30/20187/30/20238,624 8,497 8,451 
Second Lien- Term Loan B15
L+11.00%/Q, (Floor 1.00%) 1.00% PIK, Current Coupon 13.43%3/30/20207/30/20232,000 1,960 1,960 
10,457 10,411 
CALIFORNIA PIZZA KITCHEN, INC.16
First LienRestaurantsL+6.00% (Floor 1.00%)/M, Current Coupon 7.62%8/19/20168/23/20224,825 4,802 2,441 
CAPITAL PAWN HOLDINGS, LLCFirst LienConsumer products & retailL+9.50%/Q, Current Coupon 11.41%12/21/20177/8/202011,097 11,068 11,075 
CLICKBOOTH.COM, LLCRevolving LoanMedia, marketing & entertainmentL+8.50% (Floor 1.00%)/Q, Current Coupon 9.5%12/5/20171/31/20251,086 1,080 1,086 
First LienL+8.50% (Floor 1.00%)/Q, Current Coupon 10.41%12/5/20171/31/202519,000 18,739 19,000 
19,819 20,086 
DANFORTH ADVISORS, LLC13
Revolving Loan10
Business servicesL+7.25% (Floor 2.00%)/Q, Current Coupon 9.25%9/28/20189/28/2023500 486 500 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
First LienL+7.25% (Floor 2.00%)/Q, Current Coupon 9.25%9/28/20189/28/20237,250 7,141 7,250 
875 Class A equity units9
9/28/2018— 875 1,445 
8,502 9,195 
DELPHI INTERMEDIATE HEALTHCO, LLC16
Revolving LoanHealthcare servicesL+9.50% (Floor 1.00%)/Q, Current Coupon 11.97%10/2/201910/3/20221,223 1,223 1,223 
First LienL+9.50% (Floor 1.00%)/Q, Current Coupon 11.20%11/3/201710/3/202210,605 10,533 5,101 
11,756 6,324 
DRIVEN, INC.First LienBusiness ServicesL+8.00% (Floor 2.00%)/Q, Current Coupon 10.00%6/28/20196/28/202411,940 11,730 11,940 
DUNN PAPER, INC.Second LienPaper & forest productsL+8.75% (Floor 1.00%)/M, Current Coupon 9.75%9/28/20168/26/20233,000 2,965 3,000 
ENVIRONMENTAL PEST SERVICE MANAGEMENT COMPANY, LLCFirst LienConsumer servicesL+7.00%(Floor 1.00%)/Q, Current Coupon 8.91%6/22/20186/22/202315,292 15,103 15,292 
Delayed Draw Term Loan10
L+7.00%(Floor 1.00%)/Q, Current Coupon 8.91%6/22/20186/22/20236,110 6,015 6,111 
21,118 21,403 
ESCP DTFS, INC.First Lien - Term Loan AIndustrial servicesL+6.50%(Floor 1.75%)/Q, Current Coupon 8.27%1/31/20201/31/20255,350 5,253 5,253 
First Lien - Term Loan BL+8.50%(Floor 1.75%)/Q, Current Coupon 10.27%1/31/20201/31/20255,350 5,253 5,253 
Delayed Draw Term Loan A110
L+6.50%(Floor 1.75%)1/31/20201/31/2025— (10)— 
Delayed Draw Term Loan A210
L+8.50%(Floor 1.75%)1/31/20201/31/2025— (10)— 
Delayed Draw Term Loan B110
L+6.50%(Floor 1.75%)1/31/20201/31/2025— (3)— 
Delayed Draw Term Loan B210
L+8.50%(Floor 1.75%)1/31/20201/31/2025— (3)— 
10,480 10,506 
FAST SANDWICH, LLC
Revolving Loan10
RestaurantsL+9.00% (Floor 1.00%)/Q, 5.0% PIK5/24/20185/23/2023— (43)— 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
First LienL+9.00% (Floor 1.00%)/Q, 5.0% PIK,Current Coupon 15.91%5/24/20185/23/20233,393 3,354 3,179 
3,311 3,179 
GS OPERATING, LLCFirst LienDistributionL+6.50%(Floor 1.50%)/M, Current Coupon 8.00%3/6/20202/24/20258,000 7,842 7,842 
ICS DISTRIBUTION, LLC8
First LienIndustrial servicesL+8.21%(Floor 2.00%)/Q, Current Coupon 10.21%10/31/201910/29/202418,000 17,617 17,617 
IENERGIZER LIMITED
First Lien9
Business servicesL+6.00%(Floor 1.00%)/M, Current Coupon 7.00%4/17/20194/17/202412,000 11,899 12,000 
JVMC HOLDINGS CORP.First LienFinancial servicesL+6.50% (Floor 1.00%)/M, Current Coupon 7.50%2/28/20192/28/20248,183 8,115 8,183 
LANDPOINT HOLDCO, INC.First LienBusiness ServicesL+7.00%(Floor 1.00%)/Q, Current Coupon 8.96%12/30/201912/30/202419,500 19,128 19,110 
LGM PHARMA, LLC13
First LienHealthcare productsL+8.50% (Floor 1.00%)/M, Current Coupon 10.02%11/15/201711/15/202211,541 11,400 11,472 
110,000 units of Class A common stock9
11/15/2017— 1,100 821 
12,500 12,293 
LIGHTING RETROFIT INTERNATIONAL, LLC (DBA ENVOCORE)First LienEnvironmental services6%, L+3.00% PIK (Floor 2.00%)/Q, Current Coupon 11.00%6/30/20176/30/202213,439 13,364 12,149 
25,603 shares of Series C preferred stock8/13/2018— 25 — 
396,825 shares of Series B preferred stock6/30/2017— 500 — 
13,889 12,149 
MEDIA RECOVERY, INC.EarnoutIndustrial products11/25/2019— 1,517 — 
NINJATRADER, INC.13
Revolving Loan10
Financial ServicesL+6.00% (Floor 1.50%)/Q, Current Coupon 7.90%12/18/201912/18/20241,100 1,093 1,100 
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Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
First LienL+6.00% (Floor 1.50%)/Q, Current Coupon 7.90%12/18/201912/18/202418,250 17,902 18,250 
2,000,000 Preferred Units9
12/18/2019— 2,000 2,000 
20,995 21,350 
RESEARCH NOW GROUP, INC.Second LienBusiness servicesL+9.50% (Floor 1.00%)/M, Current Coupon 11.26%12/8/201712/20/202510,500 9,904 10,217 
SCRIP INC.8
First LienHealthcare productsL+9.86% (Floor 2.00%)/M, Current Coupon 11.86%3/21/20193/21/202416,750