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Apr 24, 2018

Capital Southwest Supports Gauge Capital’s Majority Recapitalization of American Nuts

DALLAS, April 24, 2018 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq:CSWC) announced today that it supported the recent majority recapitalization of American Nuts, LLC (“American Nuts”) by Gauge Capital (“Gauge”) with a first lien term loan (including a delayed draw term loan), a revolving credit facility and an equity co-investment. Capital Southwest will act as the sole administrative agent on the credit facility.  Main Street Capital Corporation ("Main Street") (NYSE:MAIN), was its co-lender on the term loan.

"We are pleased to have the opportunity to partner with Gauge on the majority recapitalization of American Nuts," said Josh Weinstein, Managing Director of Capital Southwest.  “American Nuts’ rigorous sourcing operations and value-add processing capabilities create substantial value for its clients.  We look forward to our partnership with Gauge and American Nuts.”

American Nuts, headquartered in Sylmar, CA, is focused on the procurement of a wide variety of high quality, hard-to-source products from around the globe. The Company also provides custom roasting, seasoning and packaging solutions to numerous retail and industrial food customers, all while maintaining the highest safety and quality standards.

About Capital Southwest

Capital Southwest Corporation (Nasdaq:CSWC) is a Dallas, Texas-based, internally managed Business Development Company with approximately $299 million in net assets as of December 31, 2017. As a middle-market lending firm focused on supporting the acquisition and growth of middle market businesses, Capital Southwest makes investments ranging from $5 to $25 million in securities across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. A public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

About Gauge Capital

Gauge Capital is a private equity firm that partners with founders, managers and equity stakeholders of successful middle market companies to maximize their potential. Gauge invests in rapidly growing services and technology-enabled companies in the healthcare services, business services, industrial, consumer and food sectors.

Forward-Looking Statements

This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as “will,” “may,” “could,” “believe,” “expect” and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to changes in the markets in which Capital Southwest invests, changes in the financial and lending markets, regulatory changes, tax treatment and general economic and business conditions.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2017 and subsequent filings with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

Investor Relations Contact:

Michael S. Sarner, Chief Financial Officer

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Source: Capital Southwest Corporation