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 December 31, 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

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.

19,867,848 shares of Common Stock, $0.25 value per share, as of January 29, 2021.



TABLE OF CONTENTS
Page




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)
December 31,March 31,
20202020
(Unaudited)
Assets
Investments at fair value:
Non-control/Non-affiliate investments (Cost: $496,654 and $436,463, respectively)$497,326 $421,280 
Affiliate investments (Cost: $90,954 and $94,724, respectively)87,812 92,032 
Control investments (Cost: $80,800 and $68,000, respectively)63,635 39,760 
Total investments (Cost: $668,408 and $599,187, respectively)648,773 553,072 
Cash and cash equivalents43,724 13,744 
Receivables:
Dividends and interest10,746 10,389 
Escrow1,150 1,643 
Other42 51 
Income tax receivable585 147 
Deferred tax asset— 1,402 
Debt issuance costs (net of accumulated amortization of $3,359 and $2,720, respectively)2,453 2,980 
Other assets1,361 1,531 
Total assets$708,834 $584,959 
Liabilities
December 2022 Notes (Par value: $37,136 and $77,136, respectively)$36,689 $75,812 
October 2024 Notes (Par value: $125,000 and $75,000, respectively)122,775 73,484 
January 2026 Notes (Par value: $75,000 and $0, respectively)73,410 — 
Credit facility150,000 154,000 
Other liabilities6,783 4,883 
Accrued restoration plan liability2,975 3,082 
Income tax payable844 513 
Deferred tax liability2,708 963 
Total liabilities396,184 312,737 
Commitments and contingencies (Note 10)
Net Assets
Common stock, $0.25 par value: authorized, 40,000,000 shares; issued, 22,207,360 shares at December 31, 2020 and 20,337,610 shares at March 31, 20205,552 5,085 
Additional paid-in capital337,822 310,846 
Total distributable earnings (loss)(6,787)(19,772)
Treasury stock - at cost, 2,339,512 shares(23,937)(23,937)
Total net assets312,650 272,222 
Total liabilities and net assets$708,834 $584,959 
Net asset value per share (19,867,848 shares outstanding at December 31, 2020 and 17,998,098 shares outstanding at March 31, 2020)$15.74 $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 EndedNine Months Ended
December 31,December 31,
2020201920202019
Investment income:
Interest income:
Non-control/Non-affiliate investments$12,286 $9,526 $34,234 $27,793 
Affiliate investments2,401 2,159 6,980 6,210 
Control investments— — — 265 
Dividend income:
Non-control/Non-affiliate investments1,235 (15)1,589 140 
Affiliate investments— 122 — 141 
Control investments1,681 2,581 5,144 10,013 
Interest income from cash and cash equivalents21 49 
Fees and other income1,436 1,590 2,934 2,390 
Total investment income19,040 15,984 50,889 47,001 
Operating expenses:
Compensation2,444 2,034 6,125 5,763 
Share-based compensation771 690 2,236 2,212 
Interest4,528 4,142 13,253 11,664 
Professional fees538 479 1,691 1,567 
Net pension expense33 36 99 107 
General and administrative754 728 2,240 2,748 
Total operating expenses9,068 8,109 25,644 24,061 
Income before taxes9,972 7,875 25,245 22,940 
Income tax expense1,455 761 1,590 1,651 
Net investment income$8,517 $7,114 $23,655 $21,289 
Realized (loss) gain
Non-control/Non-affiliate investments$(127)$(157)$(5,325)$1,159 
Affiliate investments— 40 (1,628)57 
Control investments— 44,399 — 44,566 
Total net realized (loss) gain on investments, net of tax(127)40,818 (6,953)42,318 
Net unrealized appreciation (depreciation) on investments
Non-control/Non-affiliate investments5,593 (1,118)16,417 (4,899)
Affiliate investments245 (1,265)(1,012)(240)
Control investments2,152 (52,208)11,075 (55,027)
Income tax (provision) benefit(719)(174)(1,968)(832)
Total net unrealized appreciation (depreciation) on investments, net of tax7,271 (54,765)24,512 (60,998)
Net realized and unrealized gains (losses) on investments7,144 (13,947)17,559 (18,680)
Realized losses on extinguishment of debt(262)— (548)— 
Net increase (decrease) in net assets from operations$15,399 $(6,833)$40,666 $2,609 
Pre-tax net investment income per share - basic and diluted$0.52 $0.44 $1.36 $1.29 
Net investment income per share – basic and diluted$0.45 $0.39 $1.27 $1.20 
Net increase in net assets from operations – basic and diluted$0.80 $(0.38)$2.18 $0.15 
Weighted average shares outstanding – basic19,134,824 18,100,176 18,629,463 17,803,005 
Weighted average shares outstanding – diluted19,134,824 18,100,176 18,629,463 17,803,005 
The accompanying Notes are an integral part of these Consolidated Financial Statements.
4

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 
Share-based compensation expense853 685 
Increase (decrease) in net assets8,270 (715)
Net assets, September 30$286,129 $328,099 
Operations:
Net investment income8,517 7,114 
Net realized (loss) gain on investments(127)44,282 
Taxes on deemed distribution of long-term capital gains— (3,464)
Net unrealized appreciation (depreciation) on investments, net of tax7,271 (54,765)
Realized losses on extinguishment of debt(262)
Net increase (decrease) in net assets from operations15,399 (6,833)
Dividends to shareholders ($0.51 and $1.25 per share, respectively)(10,044)(23,258)
Capital share transactions:
Change in pension plan funded status
Issuance of common stock20,623 13,518 
Share-based compensation expense771 690 
Common stock withheld for payroll taxes upon vesting of restricted stock(236)(368)
Increase (decrease) in net assets26,521 (16,243)
Net assets, December 31$312,650 $311,856 

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)
Nine Months Ended
December 31,
20202019
Cash flows from operating activities
Net increase in net assets from operations$40,666 $2,609 
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases and originations of investments(150,323)(154,415)
Proceeds from sales and repayments of debt investments in portfolio companies70,280 50,965 
Proceeds from sales and return of capital of equity investments in portfolio companies9,782 55,960 
Payment of accreted original issue discounts1,010 736 
Depreciation and amortization1,478 1,610 
Net pension benefit(81)(58)
Realized losses on extinguishment of debt548— 
Realized loss (gain) on investments before income tax6,967 (45,782)
Net unrealized (appreciation) depreciation on investments before income tax(26,480)60,166 
Accretion of discounts on investments(1,730)(1,427)
Payment-in-kind interest and dividends(5,207)(1,469)
Stock option and restricted awards expense2,236 2,212 
Deferred income taxes3,146 1,592 
Changes in other assets and liabilities:
Decrease in dividend and interest receivable(357)(793)
Decrease in escrow receivables493 71 
(Increase) decrease in tax receivable(439)28 
Decrease in other receivables1,069 
Decrease (increase) in other assets66 (780)
Increase in taxes payable332 905 
Increase in other liabilities1,900 321 
Decrease in payable for unsettled transaction— (1,158)
Net cash used in operating activities(45,704)(24,174)
Cash flows from financing activities
Proceeds from common stock offering26,770 22,532 
Equity offering costs paid— (106)
Borrowings under credit facility147,000 102,000 
Repayments of credit facility(151,000)(119,000)
Debt issuance costs paid(325)(442)
Proceeds from issuance of October 2024 Notes49,000 73,500 
Proceeds from issuance of January 2026 Notes73,500 — 
Partial redemption of December 2022 Notes(40,000)— 
Dividends to shareholders(29,022)(40,851)
Common stock withheld for payroll taxes upon vesting of restricted stock(239)(417)
Net cash provided by financing activities75,684 37,216 
Net increase in cash and cash equivalents29,980 13,042 
Cash and cash equivalents at beginning of period13,744 9,924 
Cash and cash equivalents at end of period$43,724 $22,966 
Supplemental cash flow disclosures:
Cash paid for income taxes$619 $— 
Cash paid for interest10,149 9,132 
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)
December 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
Non-control/Non-affiliate Investments5
AAC NEW HOLDCO INC.First LienHealthcare services10.00%, 8.00% PIK12/11/20206/25/2025$7,824 $7,824 $7,824 
374,543 shares common stock12/11/2020— 2,198 2,198 
Warrants (Expiration - December 11, 2025)12/11/2020— 1,785 1,785 
11,807 11,807 
ACCELERATION PARTNERS, LLC8,13
First LienMedia, marketing & entertainmentL+8.21% (Floor 1.00%)/Q, Current Coupon 9.21%12/1/202012/1/20258,750 8,489 8,489 
Delayed Draw Term Loan10
L+8.21% (Floor 1.00%)/Q, Current Coupon 9.21%12/1/202012/1/20252,800 2,724 2,724 
1,000 Preferred Units9
12/1/202012/1/2025— 1,000 1,000 
1,000 Class A Common Units9
12/1/202012/1/2025— — — 
12,213 12,213 
ACE GATHERING, INC.
Second Lien15
Energy services (midstream)L+10.50% (Floor 2.00%)/Q, Current Coupon 12.50%12/13/201812/13/20239,500 9,372 9,035 
ADAMS PUBLISHING GROUP, LLCFirst LienMedia, marketing & entertainmentL+7.00% (Floor 1.75%)/Q, Current Coupon 8.75%7/2/20187/2/202310,304 10,167 10,304 
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 RollupL+10.00 (Floor 1.00%)/M, Current Coupon 11.00%9/18/202012/11/20203,810 3,810 3,810 
First Lien16
L+9.00% (Floor 1.00%)/M, 2.00% PIK, Current Coupon 16.25%8/4/20168/8/20213,590 3,532 739 
8,294 5,501 
ALLIANCE SPORTS GROUP, L.P.Senior subordinated debtConsumer products & retail13.00% PIK8/1/20172/1/202310,778 10,677 10,584 
Unsecured convertible note6.00% PIK7/15/20209/30/2024173 173 173 
3.88% membership preferred interest8/1/2017— 2,500 2,500 
13,350 13,257 
7

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 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%4/10/20184/10/202317,063 16,883 17,011 
First Lien - Term Loan C10
L+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%12/21/20184/10/20231,804 1,784 1,798 
3,000,000 units of Class A common stock9
4/10/2018— 3,000 2,752 
21,667 21,561 
AMERICAN TELECONFERENCING SERVICES, LTD. (DBA PREMIERE GLOBAL SERVICES, INC.)First LienTelecommunicationsL+6.50% (Floor 1.00%)/Q, Current Coupon 7.50%9/21/20166/8/20235,918 5,863 3,255 
Second Lien0.5%, L+9.00% PIK (Floor 1.00%)/Q, Current Coupon 10.50%11/3/20166/6/20242,283 2,255 913 
8,118 4,168 
AMWARE FULFILLMENT LLCFirst LienDistributionL+9.50% (Floor 1.00%)/M, Current Coupon 10.50%7/29/201612/31/202117,588 17,467 17,588 
ASC ORTHO MANAGEMENT COMPANY, LLC13
Revolving LoanHealthcare servicesL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%8/31/20188/31/20231,500 1,484 1,428 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%8/31/20188/31/20238,912 8,805 8,484 
Second Lien13.25% PIK8/31/201812/1/20234,094 4,044 3,750 
2,042 Common Units9
8/31/2018— 750 356 
15,083 14,018 
BINSWANGER HOLDING CORP.First LienDistributionL+8.50% (Floor 1.00%)/M, Current Coupon 9.50%3/9/20173/9/202211,107 11,043 11,107 
900,000 shares of common stock3/9/2017— 900 924 
11,943 12,031 
8

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 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%7/30/20187/30/20238,689 8,586 8,516 
Second Lien- Term Loan B15
L+11.00% (Floor 1.00%)/Q, 1.00% PIK, Current Coupon 13.00%3/30/20207/30/20232,010 1,978 1,970 
10,564 10,486 
BROAD SKY NETWORKS LLC13
Revolving Loan10
TelecommunicationsL+7.50% (Floor 1.00%)/Q12/11/202012/11/2025— (49)— 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%12/11/202012/11/202515,000 14,703 14,703 
1,000,000 Series A Preferred units9
12/11/2020— 1,000 1,000 
15,654 15,703 
CALIFORNIA PIZZA KITCHEN, INC.First LienRestaurantsL+10.00% (Floor 1.50%)/Q, Current Coupon 11.50%11/23/202011/23/2024669 652 651 
First Lien Rolled Up1.00%, L+11.00% PIK (Floor 1.50%)/Q, Current Coupon 13.50%11/23/202011/23/2024719 716 717 
Second Lien1.00%, L+12.50% PIK (Floor 1.50%)/Q, Current Coupon 15.00%11/23/20205/23/2025786 786 786 
48,423 shares of common stock11/23/2020— 1,317 1,317 
3,471 3,471 
CAPITAL PAWN HOLDINGS, LLCFirst LienConsumer products & retailL+7.25% (Floor 1.00%)/Q, Current Coupon 8.25%12/21/20177/8/20238,854 8,838 8,854 
CLICKBOOTH.COM, LLCRevolving LoanMedia, marketing & entertainmentL+8.50% (Floor 1.00%)/Q12/5/20171/31/2025— (6)— 
First LienL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%12/5/20171/31/202518,644 18,415 18,644 
18,409 18,644 
DANFORTH ADVISORS, LLC13
875 Class A equity units9
Business services9/28/2018— 875 2,302 
DRIVEN, INC.First LienBusiness servicesL+8.00% (Floor 2.00%)/Q, Current Coupon 10.00%6/28/20196/28/20245,850 5,762 5,909 
9

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
DUNN PAPER, INC.Second LienPaper & forest productsL+8.75% (Floor 1.00%)/M, Current Coupon 9.75%9/28/20168/26/20233,000 2,972 3,000 
ELECTRONIC TRANSACTION CONSULTANTS LLC13
Revolving Loan10
Software & IT servicesL+7.50% (Floor 1.00%)7/24/20207/24/2025— (59)— 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%7/24/20207/24/202510,000 9,837 9,840 
1,000 Class A units9
7/24/20207/24/2025— 1,000 1,000 
10,778 10,840 
ENVIRONMENTAL PEST SERVICE MANAGEMENT COMPANY, LLCFirst LienConsumer servicesL+6.75% (Floor 1.00%)/Q, Current Coupon 7.75%6/22/20186/22/202311,597 11,484 11,597 
Delayed Draw Term Loan10
L+6.75% (Floor 1.00%)/Q, Current Coupon 7.75%6/22/20186/22/20234,635 4,547 4,635 
16,031 16,232 
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 5,266 4,986 
First Lien - Term Loan BL+8.50% (Floor 1.75%)/Q, Current Coupon 10.25%1/31/20201/31/20255,350 5,265 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 491 466 
11,495 10,904 
FAST SANDWICH, LLC
Revolving Loan10
RestaurantsL+9.00% (Floor 1.00%)5/24/20185/23/2023— (35)— 
First LienL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%5/24/20185/23/20233,380 3,350 3,042 
3,315 3,042 
GS OPERATING, LLCFirst LienDistributionL+6.50% (Floor 1.50%)/M, Current Coupon 8.00%3/6/20202/24/20257,940 7,803 7,940 
10

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 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— (37)— 
First LienL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%7/31/20207/31/20259,793 9,609 9,793 
9,572 9,793 
ICS DISTRIBUTION, LLC8
First LienIndustrial servicesL+8.49% (Floor 2.00%)/Q, Current Coupon 10.49%10/31/201910/29/202420,500 20,099 20,090 
JVMC HOLDINGS CORP.First LienFinancial servicesL+7.25% (Floor 1.00%)/M, Current Coupon 8.25%2/28/20192/28/20247,161 7,110 7,032 
KLEIN HERSH, LLC
Revolving Loan10
Business servicesL+8.00% (Floor 0.75%)/S11/13/202011/13/2025— (18)— 
First LienL+8.00% (Floor 0.75%)/S, Current Coupon 8.75%11/13/202011/13/202515,000 14,708 14,708 
14,690 14,708 
LANDPOINT HOLDCO, INC.First LienBusiness ServicesL+10.50% (Floor 1.00%)/Q, Current Coupon 11.50%12/30/201912/30/202419,005 18,687 17,713 
LGM PHARMA, LLC13
First LienHealthcare productsL+8.50% (Floor 1.00%)/M, Current Coupon 9.50%11/15/201711/15/202311,453 11,337 11,453 
Delayed Draw Term LoanL+10.00% (Floor 1.00%)/Q, Current Coupon 11.00%7/24/202011/15/20232,494 2,450 2,494 
142,278.89 units of Class A common stock9
11/15/2017— 1,600 2,813 
15,387 16,760 
LIGHTING RETROFIT INTERNATIONAL, LLC (DBA ENVOCORE)First LienEnvironmental services6.75%, L+2.25% PIK (Floor 2.00%)/Q, Current Coupon 11.00%6/30/20176/30/202213,906 13,854 12,654 
25,603 shares of Series C preferred stock8/13/2018— 25 — 
396,825 shares of Series B preferred stock6/30/2017— 500 — 
14,379 12,654 
11

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
NINJATRADER, INC.13
Revolving Loan10
Financial servicesL+6.75% (Floor 1.50%)12/18/201912/18/2024— (6)— 
First LienL+6.75% (Floor 1.50%)/Q, Current Coupon 8.25%12/18/201912/18/202419,250 18,759 19,250 
Delayed Draw Term Loan10
L+6.75% (Floor 1.50%)/Q12/31/202012/18/2024— (38)— 
2,000,000 Preferred Units9
12/18/2019— 2,000 5,245 
20,715 24,495 
RESEARCH NOW GROUP, INC.Second LienBusiness servicesL+9.50% (Floor 1.00%)/M, Current Coupon 10.50%12/8/201712/20/202510,500 9,960 9,786 
ROSELAND MANAGEMENT, LLC
Revolving Loan10
Healthcare servicesL+7.00% (Floor 2.00%)/Q11/9/201811/9/2023— (20)— 
First LienL+7.00% (Floor 2.00%)/Q, Current Coupon 9.00%11/9/201811/9/202314,306 14,131 14,306 
13,811 Class A Units11/9/2018— 1,381 1,720 
15,492 16,026 
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 6,823 6,821 
6,810 6,821 
SCRIP INC.8
First LienHealthcare productsL+9.72% (Floor 2.00%)/M, Current Coupon 11.72%3/21/20193/21/202416,750 16,399 16,750 
100 shares of common stock3/21/2019— 1,000 967 
17,399 17,717 
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 9,856 10,000 
896.43 Class A units9
11/15/2019— 1,205 2,349 
11,061 12,349 
USA DEBUSK, LLCFirst LienIndustrial ServicesL+5.75% (Floor 1.00%)/M, Current Coupon 6.75%2/25/202010/22/20247,920 7,794 7,912 
12

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
VISTAR MEDIA INC.First LienMedia, marketing & entertainmentL+7.50%, 3.50% PIK (Floor 2.00%)/M, Current Coupon 13.00%2/17/20174/3/202311,381 10,759 11,154 
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 
13,253 15,691 
VTX HOLDINGS, INC.8
First LienSoftware & IT servicesL+9.06% (Floor 2.00%)/Q, Current Coupon 11.06%7/23/20197/23/202421,575 21,162 21,575 
1,397,707 Series A Preferred units7/23/2019— 1,398 1,654 
22,560 23,229 
ZENFOLIO INC.
Revolving Loan10
Business servicesL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%7/17/20177/17/20231,000 992 910 
First LienL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%7/17/20177/17/202314,888 14,705 13,548 
15,697 14,458 
Total Non-control/Non-affiliate Investments$496,654 $497,326 
Affiliate Investments6
CENTRAL MEDICAL SUPPLY LLC13
Revolving Loan10
Healthcare servicesL+7.00% (Floor 1.75%)/Q, Current Coupon 8.75%5/22/20205/22/2025$300 $274 $286 
First LienL+7.00% (Floor 1.75%)/Q, Current Coupon 8.75%5/22/20205/22/20257,500 7,365 7,140 
Delayed Draw Capex Term Loan10
L+7.00% (Floor 1.75%)/Q, Current Coupon 8.75%5/22/20205/22/2025100 74 95 
875,000 Preferred Units9
5/22/20205/22/2025— 875 641 
8,588 8,162 
CHANDLER SIGNS, LLC13
1,500,000 units of Class A-1 common stock9
Business services1/4/2016— 1,500 2,892 
DELPHI BEHAVIORAL HEALTH GROUP, LLCFirst LienHealthcare servicesP+10.00% (Floor 2.00%) PIK/M, Current Coupon 13.25%4/8/20204/7/20231,397 1,396 1,381 
13

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2020
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost17
Fair Value4
First LienP+8.00% (Floor 2.00%) PIK/M, Current Coupon 11.25%4/8/20204/7/20231,561 1,561 1,482 
1,681.04 Common Units4/8/2020— 3,615 3,615 
6,572 6,478 
DYNAMIC COMMUNITIES, LLC13
Revolving Loan10
Business servicesL+3.75%, 7.75% PIK (Floor 1.00%)7/17/20187/17/2023— (3)— 
First LienL+3.75%, 7.75% PIK (Floor 1.00%)/Q, Current Coupon 12.50%7/17/20187/17/202310,851 10,729 9,776 
Senior subordinated debt25% PIK12/4/20201/16/2024350 350 350 
2,000,000 Preferred Units9
7/17/2018— 2,000 1,274 
13,076 11,400 
GRAMMATECH, INC.Revolving LoanSoftware & IT servicesL+7.50% (Floor 2.00%)/Q, Current Coupon 9.50%11/1/201911/1/20242,500 2,466 2,483 
First LienL+7.50% (Floor 2.00%)/Q, Current Coupon 9.50%11/1/201911/1/202411,500 11,338 11,419 
1,000 Class A units11/1/2019— 1,000 1,455 
14,804 15,357 
ITA HOLDINGS GROUP, LLC13
Revolving Loan10
Transportation & logisticsL+9.00% (Floor 1.00%)2/14/20182/14/2023— (25)— 
First Lien - Term LoanL+8.00% (Floor 1.00%), 0.5% PIK/Q, Current Coupon 9.50%2/14/20182/14/202310,077 9,990 10,016 
First Lien - Term B LoanL+11.00% (Floor 1.00%) 0.5% PIK/Q, Current Coupon 12.50%6/5/20182/14/20235,038 4,981 5,114 
First Lien - PIK Note A10.00% PIK3/29/20192/14/20232,611 2,189 2,593 
First Lien - PIK Note B10.00% PIK3/29/20192/14/2023103 103 102 
Warrants (Expiration - March 29, 2029)9
3/29/2019— 538 2,968 
9.25% Class A Membership Interest9
2/14/2018— 1,500 2,532 
19,276 23,325 
14

Table of Contents
CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 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%9/7/20189/7/202312,331 12,193 10,740 
9,374,510.2 Class B Common Units9/7/2018— 6,107 — 
18,300 10,740 
SONOBI, INC.13
First LienMedia, marketing & entertainmentL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%9/17/20209/16/20258,500 8,338 8,500 
500,000 Class A Common Units9
9/17/2020— 500 958 
8,838 9,458 
Total Affiliate Investments$90,954 $87,812 
Control Investments7
I-45 SLF LLC9, 11
80% LLC equity interestMulti-sector holdings10/20/2015— $80,800 $63,635 
Total Control Investments$80,800 $63,635 
TOTAL INVESTMENTS12
$668,408 $648,773 

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 December 31, 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 December 31, 2020, approximately 76.7% 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 159.1%.
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 December 31, 2020, approximately 13.5% of the Company’s investment assets were affiliate investments. The fair value of these investments as a percent of net assets is 28.1%.
15

Table of Contents
7Control investments are generally defined by the 1940 Act as investments in which more than 25% of the voting securities are owned. At December 31, 2020, approximately 9.8% of the Company’s investment assets were control investments. The fair value of these investments as a percent of net assets is 20.4%.
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 December 31, 2020, approximately 13.5% of the Company's assets are non-qualifying assets.
10The investment has an unfunded commitment as of December 31, 2020. Refer to Note 10 - Commitments and Contingencies for further discussion.
11Income producing through dividends or distributions.
12As of December 31, 2020, the cumulative gross unrealized appreciation for U.S. federal income tax purposes is approximately $20.3 million; cumulative gross unrealized depreciation for federal income tax purposes is $39.4 million. Cumulative net unrealized depreciation is $19.1 million, based on a tax cost of $665.5 million.
13Acceleration Partners preferred and common units, ASC Ortho Management Company, LLC common units, Broad Sky Networks LLC Series A Preferred 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 December 31, 2020 represented 207.6% of the Company's net assets or 91.5% 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 December 31, 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 December 31, 2020 is included in Note 13. Significant Subsidiaries.

The accompanying Notes are an integral part of these Consolidated Financial Statements.
16

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 
17

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
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 
18

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
DANFORTH ADVISORS, LLC13
Revolving Loan10
Business servicesL+7.25% (Floor 2.00%)/Q, Current Coupon 9.25%9/28/20189/28/2023500 486 500 
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 
19

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
FAST SANDWICH, LLC
Revolving Loan10
RestaurantsL+9.00% (Floor 1.00%)/Q, 5.0% PIK5/24/20185/23/2023— (43)— 
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 products