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)
| Texas | 75-1072796 | |||||||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| 5400 Lyndon B Johnson Freeway, Suite 1300, Dallas, Texas | 75240 | |||||||
| (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 Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||
| Common Stock, $0.25 par value per share | CSWC | The 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 | ||||||||||||||
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, | ||||||||||
| 2020 | 2020 | ||||||||||
| (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 equivalents | 43,724 | 13,744 | |||||||||
| Receivables: | |||||||||||
| Dividends and interest | 10,746 | 10,389 | |||||||||
| Escrow | 1,150 | 1,643 | |||||||||
| Other | 42 | 51 | |||||||||
| Income tax receivable | 585 | 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 assets | 1,361 | 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 facility | 150,000 | 154,000 | |||||||||
| Other liabilities | 6,783 | 4,883 | |||||||||
| Accrued restoration plan liability | 2,975 | 3,082 | |||||||||
| Income tax payable | 844 | 513 | |||||||||
| Deferred tax liability | 2,708 | 963 | |||||||||
| Total liabilities | 396,184 | 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, 2020 | 5,552 | 5,085 | |||||||||
| Additional paid-in capital | 337,822 | 310,846 | |||||||||
| Total distributable earnings (loss) | (6,787) | (19,772) | |||||||||
| Treasury stock - at cost, 2,339,512 shares | (23,937) | (23,937) | |||||||||
| Total net assets | 312,650 | 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
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| (In thousands, except shares and per share data) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Investment income: | |||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Non-control/Non-affiliate investments | $ | 12,286 | $ | 9,526 | $ | 34,234 | $ | 27,793 | |||||||||||||||
| Affiliate investments | 2,401 | 2,159 | 6,980 | 6,210 | |||||||||||||||||||
| Control investments | — | — | — | 265 | |||||||||||||||||||
| Dividend income: | |||||||||||||||||||||||
| Non-control/Non-affiliate investments | 1,235 | (15) | 1,589 | 140 | |||||||||||||||||||
| Affiliate investments | — | 122 | — | 141 | |||||||||||||||||||
| Control investments | 1,681 | 2,581 | 5,144 | 10,013 | |||||||||||||||||||
| Interest income from cash and cash equivalents | 1 | 21 | 8 | 49 | |||||||||||||||||||
| Fees and other income | 1,436 | 1,590 | 2,934 | 2,390 | |||||||||||||||||||
| Total investment income | 19,040 | 15,984 | 50,889 | 47,001 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Compensation | 2,444 | 2,034 | 6,125 | 5,763 | |||||||||||||||||||
| Share-based compensation | 771 | 690 | 2,236 | 2,212 | |||||||||||||||||||
| Interest | 4,528 | 4,142 | 13,253 | 11,664 | |||||||||||||||||||
| Professional fees | 538 | 479 | 1,691 | 1,567 | |||||||||||||||||||
| Net pension expense | 33 | 36 | 99 | 107 | |||||||||||||||||||
| General and administrative | 754 | 728 | 2,240 | 2,748 | |||||||||||||||||||
| Total operating expenses | 9,068 | 8,109 | 25,644 | 24,061 | |||||||||||||||||||
| Income before taxes | 9,972 | 7,875 | 25,245 | 22,940 | |||||||||||||||||||
| Income tax expense | 1,455 | 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 investments | 5,593 | (1,118) | 16,417 | (4,899) | |||||||||||||||||||
| Affiliate investments | 245 | (1,265) | (1,012) | (240) | |||||||||||||||||||
| Control investments | 2,152 | (52,208) | 11,075 | (55,027) | |||||||||||||||||||
| Income tax (provision) benefit | (719) | (174) | (1,968) | (832) | |||||||||||||||||||
| Total net unrealized appreciation (depreciation) on investments, net of tax | 7,271 | (54,765) | 24,512 | (60,998) | |||||||||||||||||||
| Net realized and unrealized gains (losses) on investments | 7,144 | (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 – basic | 19,134,824 | 18,100,176 | 18,629,463 | 17,803,005 | |||||||||||||||||||
| Weighted average shares outstanding – diluted | 19,134,824 | 18,100,176 | 18,629,463 | 17,803,005 | |||||||||||||||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements.
4
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| 2020 | 2019 | ||||||||||
| Net assets, March 31 | $ | 272,222 | $ | 325,963 | |||||||
| Operations: | |||||||||||
| Net investment income | 6,819 | 7,360 | |||||||||
| Net realized (loss) gain on investments | (5,547) | 1,217 | |||||||||
| Net unrealized appreciation (depreciation) on investments, net of tax | 7,605 | (1,864) | |||||||||
| Net increase in net assets from operations | 8,877 | 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 | 9 | 7 | |||||||||
| Issuance of common stock | 5,622 | 3,972 | |||||||||
| Share-based compensation expense | 612 | 837 | |||||||||
| Common stock withheld for payroll taxes upon vesting of restricted stock | (3) | (49) | |||||||||
| Increase in net assets | 5,637 | 2,851 | |||||||||
| Net assets, June 30 | $ | 277,859 | $ | 328,814 | |||||||
| Operations: | |||||||||||
| Net investment income | 8,319 | 6,815 | |||||||||
| Net realized (loss) gain on investments | (1,279) | 283 | |||||||||
| Net unrealized appreciation (depreciation) on investments, net of tax | 9,636 | (4,369) | |||||||||
| Realized losses on extinguishment of debt | (286) | — | |||||||||
| Net increase in net assets from operations | 16,390 | 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 | 9 | 8 | |||||||||
| Issuance of common stock | 516 | 4,827 | |||||||||
| Share-based compensation expense | 853 | 685 | |||||||||
| Increase (decrease) in net assets | 8,270 | (715) | |||||||||
| Net assets, September 30 | $ | 286,129 | $ | 328,099 | |||||||
| Operations: | |||||||||||
| Net investment income | 8,517 | 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 tax | 7,271 | (54,765) | |||||||||
| Realized losses on extinguishment of debt | (262) | — | |||||||||
| Net increase (decrease) in net assets from operations | 15,399 | (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 | 8 | 8 | |||||||||
| Issuance of common stock | 20,623 | 13,518 | |||||||||
| Share-based compensation expense | 771 | 690 | |||||||||
| Common stock withheld for payroll taxes upon vesting of restricted stock | (236) | (368) | |||||||||
| Increase (decrease) in net assets | 26,521 | (16,243) | |||||||||
| Net assets, December 31 | $ | 312,650 | $ | 311,856 | |||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements.
5
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (Unaudited) | |||||||||||
| (In thousands) | |||||||||||
| Nine Months Ended | |||||||||||
| December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| 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 companies | 70,280 | 50,965 | |||||||||
| Proceeds from sales and return of capital of equity investments in portfolio companies | 9,782 | 55,960 | |||||||||
| Payment of accreted original issue discounts | 1,010 | 736 | |||||||||
| Depreciation and amortization | 1,478 | 1,610 | |||||||||
| Net pension benefit | (81) | (58) | |||||||||
| Realized losses on extinguishment of debt | 548 | — | |||||||||
| Realized loss (gain) on investments before income tax | 6,967 | (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 expense | 2,236 | 2,212 | |||||||||
| Deferred income taxes | 3,146 | 1,592 | |||||||||
| Changes in other assets and liabilities: | |||||||||||
| Decrease in dividend and interest receivable | (357) | (793) | |||||||||
| Decrease in escrow receivables | 493 | 71 | |||||||||
| (Increase) decrease in tax receivable | (439) | 28 | |||||||||
| Decrease in other receivables | 9 | 1,069 | |||||||||
| Decrease (increase) in other assets | 66 | (780) | |||||||||
| Increase in taxes payable | 332 | 905 | |||||||||
| Increase in other liabilities | 1,900 | 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 offering | 26,770 | 22,532 | |||||||||
| Equity offering costs paid | — | (106) | |||||||||
| Borrowings under credit facility | 147,000 | 102,000 | |||||||||
| Repayments of credit facility | (151,000) | (119,000) | |||||||||
| Debt issuance costs paid | (325) | (442) | |||||||||
| Proceeds from issuance of October 2024 Notes | 49,000 | 73,500 | |||||||||
| Proceeds from issuance of January 2026 Notes | 73,500 | — | |||||||||
| 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 activities | 75,684 | 37,216 | |||||||||
| Net increase in cash and cash equivalents | 29,980 | 13,042 | |||||||||
| Cash and cash equivalents at beginning of period | 13,744 | 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 interest | 10,149 | 9,132 | |||||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements.
6
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
Non-control/Non-affiliate Investments5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| AAC NEW HOLDCO INC. | First Lien | Healthcare services | 10.00%, 8.00% PIK | 12/11/2020 | 6/25/2025 | $ | 7,824 | $ | 7,824 | $ | 7,824 | |||||||||||||||||||||||||||||||||||||||
| 374,543 shares common stock | — | 12/11/2020 | — | — | 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 Lien | Media, marketing & entertainment | L+8.21% (Floor 1.00%)/Q, Current Coupon 9.21% | 12/1/2020 | 12/1/2025 | 8,750 | 8,489 | 8,489 | ||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan10 | L+8.21% (Floor 1.00%)/Q, Current Coupon 9.21% | 12/1/2020 | 12/1/2025 | 2,800 | 2,724 | 2,724 | ||||||||||||||||||||||||||||||||||||||||||||
1,000 Preferred Units9 | — | 12/1/2020 | 12/1/2025 | — | 1,000 | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||
1,000 Class A Common Units9 | — | 12/1/2020 | 12/1/2025 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| 12,213 | 12,213 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ACE GATHERING, INC. | Second Lien15 | Energy services (midstream) | L+10.50% (Floor 2.00%)/Q, Current Coupon 12.50% | 12/13/2018 | 12/13/2023 | 9,500 | 9,372 | 9,035 | ||||||||||||||||||||||||||||||||||||||||||
| ADAMS PUBLISHING GROUP, LLC | First Lien | Media, marketing & entertainment | L+7.00% (Floor 1.75%)/Q, Current Coupon 8.75% | 7/2/2018 | 7/2/2023 | 10,304 | 10,167 | 10,304 | ||||||||||||||||||||||||||||||||||||||||||
| AG KINGS HOLDINGS INC. | First Lien - DIP10 | Food, agriculture & beverage | L+8.00% (Floor 1.00%)/M, Current Coupon 9.00% | 8/26/2020 | 12/11/2020 | 952 | 952 | 952 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien - Super-Priority DIP Rollup | L+10.00 (Floor 1.00%)/M, Current Coupon 11.00% | 9/18/2020 | 12/11/2020 | 3,810 | 3,810 | 3,810 | ||||||||||||||||||||||||||||||||||||||||||||
First Lien16 | L+9.00% (Floor 1.00%)/M, 2.00% PIK, Current Coupon 16.25% | 8/4/2016 | 8/8/2021 | 3,590 | 3,532 | 739 | ||||||||||||||||||||||||||||||||||||||||||||
| 8,294 | 5,501 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ALLIANCE SPORTS GROUP, L.P. | Senior subordinated debt | Consumer products & retail | 13.00% PIK | 8/1/2017 | 2/1/2023 | 10,778 | 10,677 | 10,584 | ||||||||||||||||||||||||||||||||||||||||||
| Unsecured convertible note | 6.00% PIK | 7/15/2020 | 9/30/2024 | 173 | 173 | 173 | ||||||||||||||||||||||||||||||||||||||||||||
| 3.88% membership preferred interest | — | 8/1/2017 | — | — | 2,500 | 2,500 | ||||||||||||||||||||||||||||||||||||||||||||
| 13,350 | 13,257 | |||||||||||||||||||||||||||||||||||||||||||||||||
7
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
AMERICAN NUTS OPERATIONS LLC13 | First Lien - Term Loan | Food, agriculture and beverage | L+8.00% (Floor 1.00%)/Q, Current Coupon 9.00% | 4/10/2018 | 4/10/2023 | 17,063 | 16,883 | 17,011 | ||||||||||||||||||||||||||||||||||||||||||
First Lien - Term Loan C10 | L+8.00% (Floor 1.00%)/Q, Current Coupon 9.00% | 12/21/2018 | 4/10/2023 | 1,804 | 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 Lien | Telecommunications | L+6.50% (Floor 1.00%)/Q, Current Coupon 7.50% | 9/21/2016 | 6/8/2023 | 5,918 | 5,863 | 3,255 | ||||||||||||||||||||||||||||||||||||||||||
| Second Lien | 0.5%, L+9.00% PIK (Floor 1.00%)/Q, Current Coupon 10.50% | 11/3/2016 | 6/6/2024 | 2,283 | 2,255 | 913 | ||||||||||||||||||||||||||||||||||||||||||||
| 8,118 | 4,168 | |||||||||||||||||||||||||||||||||||||||||||||||||
| AMWARE FULFILLMENT LLC | First Lien | Distribution | L+9.50% (Floor 1.00%)/M, Current Coupon 10.50% | 7/29/2016 | 12/31/2021 | 17,588 | 17,467 | 17,588 | ||||||||||||||||||||||||||||||||||||||||||
ASC ORTHO MANAGEMENT COMPANY, LLC13 | Revolving Loan | Healthcare services | L+7.50% (Floor 1.00%)/Q, Current Coupon 8.50% | 8/31/2018 | 8/31/2023 | 1,500 | 1,484 | 1,428 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.50% (Floor 1.00%)/Q, Current Coupon 8.50% | 8/31/2018 | 8/31/2023 | 8,912 | 8,805 | 8,484 | ||||||||||||||||||||||||||||||||||||||||||||
| Second Lien | 13.25% PIK | 8/31/2018 | 12/1/2023 | 4,094 | 4,044 | 3,750 | ||||||||||||||||||||||||||||||||||||||||||||
2,042 Common Units9 | — | 8/31/2018 | — | — | 750 | 356 | ||||||||||||||||||||||||||||||||||||||||||||
| 15,083 | 14,018 | |||||||||||||||||||||||||||||||||||||||||||||||||
| BINSWANGER HOLDING CORP. | First Lien | Distribution | L+8.50% (Floor 1.00%)/M, Current Coupon 9.50% | 3/9/2017 | 3/9/2022 | 11,107 | 11,043 | 11,107 | ||||||||||||||||||||||||||||||||||||||||||
| 900,000 shares of common stock | — | 3/9/2017 | — | — | 900 | 924 | ||||||||||||||||||||||||||||||||||||||||||||
| 11,943 | 12,031 | |||||||||||||||||||||||||||||||||||||||||||||||||
8
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| BLASCHAK COAL CORP. | Second Lien- Term Loan15 | Commodities & mining | L+11.00% (Floor 1.00%)/Q, 1.00% PIK, Current Coupon 13.00% | 7/30/2018 | 7/30/2023 | 8,689 | 8,586 | 8,516 | ||||||||||||||||||||||||||||||||||||||||||
Second Lien- Term Loan B15 | L+11.00% (Floor 1.00%)/Q, 1.00% PIK, Current Coupon 13.00% | 3/30/2020 | 7/30/2023 | 2,010 | 1,978 | 1,970 | ||||||||||||||||||||||||||||||||||||||||||||
| 10,564 | 10,486 | |||||||||||||||||||||||||||||||||||||||||||||||||
BROAD SKY NETWORKS LLC13 | Revolving Loan10 | Telecommunications | L+7.50% (Floor 1.00%)/Q | 12/11/2020 | 12/11/2025 | — | (49) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.50% (Floor 1.00%)/Q, Current Coupon 8.50% | 12/11/2020 | 12/11/2025 | 15,000 | 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 Lien | Restaurants | L+10.00% (Floor 1.50%)/Q, Current Coupon 11.50% | 11/23/2020 | 11/23/2024 | 669 | 652 | 651 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien Rolled Up | 1.00%, L+11.00% PIK (Floor 1.50%)/Q, Current Coupon 13.50% | 11/23/2020 | 11/23/2024 | 719 | 716 | 717 | ||||||||||||||||||||||||||||||||||||||||||||
| Second Lien | 1.00%, L+12.50% PIK (Floor 1.50%)/Q, Current Coupon 15.00% | 11/23/2020 | 5/23/2025 | 786 | 786 | 786 | ||||||||||||||||||||||||||||||||||||||||||||
| 48,423 shares of common stock | — | 11/23/2020 | — | — | 1,317 | 1,317 | ||||||||||||||||||||||||||||||||||||||||||||
| 3,471 | 3,471 | |||||||||||||||||||||||||||||||||||||||||||||||||
| CAPITAL PAWN HOLDINGS, LLC | First Lien | Consumer products & retail | L+7.25% (Floor 1.00%)/Q, Current Coupon 8.25% | 12/21/2017 | 7/8/2023 | 8,854 | 8,838 | 8,854 | ||||||||||||||||||||||||||||||||||||||||||
| CLICKBOOTH.COM, LLC | Revolving Loan | Media, marketing & entertainment | L+8.50% (Floor 1.00%)/Q | 12/5/2017 | 1/31/2025 | — | (6) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+8.50% (Floor 1.00%)/Q, Current Coupon 9.50% | 12/5/2017 | 1/31/2025 | 18,644 | 18,415 | 18,644 | ||||||||||||||||||||||||||||||||||||||||||||
| 18,409 | 18,644 | |||||||||||||||||||||||||||||||||||||||||||||||||
DANFORTH ADVISORS, LLC13 | 875 Class A equity units9 | Business services | — | 9/28/2018 | — | — | 875 | 2,302 | ||||||||||||||||||||||||||||||||||||||||||
| DRIVEN, INC. | First Lien | Business services | L+8.00% (Floor 2.00%)/Q, Current Coupon 10.00% | 6/28/2019 | 6/28/2024 | 5,850 | 5,762 | 5,909 | ||||||||||||||||||||||||||||||||||||||||||
9
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| DUNN PAPER, INC. | Second Lien | Paper & forest products | L+8.75% (Floor 1.00%)/M, Current Coupon 9.75% | 9/28/2016 | 8/26/2023 | 3,000 | 2,972 | 3,000 | ||||||||||||||||||||||||||||||||||||||||||
ELECTRONIC TRANSACTION CONSULTANTS LLC13 | Revolving Loan10 | Software & IT services | L+7.50% (Floor 1.00%) | 7/24/2020 | 7/24/2025 | — | (59) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.50% (Floor 1.00%)/Q, Current Coupon 8.50% | 7/24/2020 | 7/24/2025 | 10,000 | 9,837 | 9,840 | ||||||||||||||||||||||||||||||||||||||||||||
1,000 Class A units9 | — | 7/24/2020 | 7/24/2025 | — | 1,000 | 1,000 | ||||||||||||||||||||||||||||||||||||||||||||
| 10,778 | 10,840 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ENVIRONMENTAL PEST SERVICE MANAGEMENT COMPANY, LLC | First Lien | Consumer services | L+6.75% (Floor 1.00%)/Q, Current Coupon 7.75% | 6/22/2018 | 6/22/2023 | 11,597 | 11,484 | 11,597 | ||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan10 | L+6.75% (Floor 1.00%)/Q, Current Coupon 7.75% | 6/22/2018 | 6/22/2023 | 4,635 | 4,547 | 4,635 | ||||||||||||||||||||||||||||||||||||||||||||
| 16,031 | 16,232 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ESCP DTFS, INC. | First Lien - Term Loan A | Industrial services | L+6.50% (Floor 1.75%)/Q, Current Coupon 8.25% | 1/31/2020 | 1/31/2025 | 5,350 | 5,266 | 4,986 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien - Term Loan B | L+8.50% (Floor 1.75%)/Q, Current Coupon 10.25% | 1/31/2020 | 1/31/2025 | 5,350 | 5,265 | 4,986 | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan A110 | L+6.50% (Floor 1.75%) | 1/31/2020 | 1/31/2025 | — | (9) | — | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan A210 | L+8.50% (Floor 1.75%) | 1/31/2020 | 1/31/2025 | — | (9) | — | ||||||||||||||||||||||||||||||||||||||||||||
| Delayed Draw Term Loan B1 | L+6.50% (Floor 1.75%), Current Coupon 8.25% | 1/31/2020 | 1/31/2025 | 500 | 491 | 466 | ||||||||||||||||||||||||||||||||||||||||||||
| Delayed Draw Term Loan B2 | L+8.50% (Floor 1.75%), Current Coupon 10.25% | 1/31/2020 | 1/31/2025 | 500 | 491 | 466 | ||||||||||||||||||||||||||||||||||||||||||||
| 11,495 | 10,904 | |||||||||||||||||||||||||||||||||||||||||||||||||
| FAST SANDWICH, LLC | Revolving Loan10 | Restaurants | L+9.00% (Floor 1.00%) | 5/24/2018 | 5/23/2023 | — | (35) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+9.00% (Floor 1.00%)/Q, Current Coupon 10.00% | 5/24/2018 | 5/23/2023 | 3,380 | 3,350 | 3,042 | ||||||||||||||||||||||||||||||||||||||||||||
| 3,315 | 3,042 | |||||||||||||||||||||||||||||||||||||||||||||||||
| GS OPERATING, LLC | First Lien | Distribution | L+6.50% (Floor 1.50%)/M, Current Coupon 8.00% | 3/6/2020 | 2/24/2025 | 7,940 | 7,803 | 7,940 | ||||||||||||||||||||||||||||||||||||||||||
10
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| IAN, EVAN, & ALEXANDER CORPORATION (DBA EVERWATCH) | Revolving Loan10 | Aerospace & defense | L+8.50% (Floor 1.00%) | 7/31/2020 | 7/31/2025 | — | (37) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+8.50% (Floor 1.00%)/Q, Current Coupon 9.50% | 7/31/2020 | 7/31/2025 | 9,793 | 9,609 | 9,793 | ||||||||||||||||||||||||||||||||||||||||||||
| 9,572 | 9,793 | |||||||||||||||||||||||||||||||||||||||||||||||||
ICS DISTRIBUTION, LLC8 | First Lien | Industrial services | L+8.49% (Floor 2.00%)/Q, Current Coupon 10.49% | 10/31/2019 | 10/29/2024 | 20,500 | 20,099 | 20,090 | ||||||||||||||||||||||||||||||||||||||||||
| JVMC HOLDINGS CORP. | First Lien | Financial services | L+7.25% (Floor 1.00%)/M, Current Coupon 8.25% | 2/28/2019 | 2/28/2024 | 7,161 | 7,110 | 7,032 | ||||||||||||||||||||||||||||||||||||||||||
| KLEIN HERSH, LLC | Revolving Loan10 | Business services | L+8.00% (Floor 0.75%)/S | 11/13/2020 | 11/13/2025 | — | (18) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+8.00% (Floor 0.75%)/S, Current Coupon 8.75% | 11/13/2020 | 11/13/2025 | 15,000 | 14,708 | 14,708 | ||||||||||||||||||||||||||||||||||||||||||||
| 14,690 | 14,708 | |||||||||||||||||||||||||||||||||||||||||||||||||
| LANDPOINT HOLDCO, INC. | First Lien | Business Services | L+10.50% (Floor 1.00%)/Q, Current Coupon 11.50% | 12/30/2019 | 12/30/2024 | 19,005 | 18,687 | 17,713 | ||||||||||||||||||||||||||||||||||||||||||
LGM PHARMA, LLC13 | First Lien | Healthcare products | L+8.50% (Floor 1.00%)/M, Current Coupon 9.50% | 11/15/2017 | 11/15/2023 | 11,453 | 11,337 | 11,453 | ||||||||||||||||||||||||||||||||||||||||||
| Delayed Draw Term Loan | L+10.00% (Floor 1.00%)/Q, Current Coupon 11.00% | 7/24/2020 | 11/15/2023 | 2,494 | 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 Lien | Environmental services | 6.75%, L+2.25% PIK (Floor 2.00%)/Q, Current Coupon 11.00% | 6/30/2017 | 6/30/2022 | 13,906 | 13,854 | 12,654 | ||||||||||||||||||||||||||||||||||||||||||
| 25,603 shares of Series C preferred stock | — | 8/13/2018 | — | — | 25 | — | ||||||||||||||||||||||||||||||||||||||||||||
| 396,825 shares of Series B preferred stock | — | 6/30/2017 | — | — | 500 | — | ||||||||||||||||||||||||||||||||||||||||||||
| 14,379 | 12,654 | |||||||||||||||||||||||||||||||||||||||||||||||||
11
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
NINJATRADER, INC.13 | Revolving Loan10 | Financial services | L+6.75% (Floor 1.50%) | 12/18/2019 | 12/18/2024 | — | (6) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+6.75% (Floor 1.50%)/Q, Current Coupon 8.25% | 12/18/2019 | 12/18/2024 | 19,250 | 18,759 | 19,250 | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan10 | L+6.75% (Floor 1.50%)/Q | 12/31/2020 | 12/18/2024 | — | (38) | — | ||||||||||||||||||||||||||||||||||||||||||||
2,000,000 Preferred Units9 | — | 12/18/2019 | — | — | 2,000 | 5,245 | ||||||||||||||||||||||||||||||||||||||||||||
| 20,715 | 24,495 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RESEARCH NOW GROUP, INC. | Second Lien | Business services | L+9.50% (Floor 1.00%)/M, Current Coupon 10.50% | 12/8/2017 | 12/20/2025 | 10,500 | 9,960 | 9,786 | ||||||||||||||||||||||||||||||||||||||||||
| ROSELAND MANAGEMENT, LLC | Revolving Loan10 | Healthcare services | L+7.00% (Floor 2.00%)/Q | 11/9/2018 | 11/9/2023 | — | (20) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.00% (Floor 2.00%)/Q, Current Coupon 9.00% | 11/9/2018 | 11/9/2023 | 14,306 | 14,131 | 14,306 | ||||||||||||||||||||||||||||||||||||||||||||
| 13,811 Class A Units | — | 11/9/2018 | — | — | 1,381 | 1,720 | ||||||||||||||||||||||||||||||||||||||||||||
| 15,492 | 16,026 | |||||||||||||||||||||||||||||||||||||||||||||||||
| RTIC SUBSIDIARY HOLDINGS, LLC | Revolving Loan10 | Consumer products & retail | L+7.75% (Floor 1.25%) | 9/1/2020 | 9/1/2025 | — | (13) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.75% (Floor 1.25%)/Q, Current Coupon 9.00% | 9/1/2020 | 9/1/2025 | 6,904 | 6,823 | 6,821 | ||||||||||||||||||||||||||||||||||||||||||||
| 6,810 | 6,821 | |||||||||||||||||||||||||||||||||||||||||||||||||
SCRIP INC.8 | First Lien | Healthcare products | L+9.72% (Floor 2.00%)/M, Current Coupon 11.72% | 3/21/2019 | 3/21/2024 | 16,750 | 16,399 | 16,750 | ||||||||||||||||||||||||||||||||||||||||||
| 100 shares of common stock | — | 3/21/2019 | — | — | 1,000 | 967 | ||||||||||||||||||||||||||||||||||||||||||||
| 17,399 | 17,717 | |||||||||||||||||||||||||||||||||||||||||||||||||
TAX ADVISORS GROUP, LLC13 | 143.3 Class A units9 | Financial services | — | 6/23/2017 | — | — | 541 | 1,282 | ||||||||||||||||||||||||||||||||||||||||||
TRINITY 3, LLC13 | First Lien15 | Technology products & components | L+7.00% (Floor 1.00%)/Q, Current Coupon 8.00% | 9/30/2020 | 9/30/2025 | 10,000 | 9,856 | 10,000 | ||||||||||||||||||||||||||||||||||||||||||
896.43 Class A units9 | — | 11/15/2019 | — | — | 1,205 | 2,349 | ||||||||||||||||||||||||||||||||||||||||||||
| 11,061 | 12,349 | |||||||||||||||||||||||||||||||||||||||||||||||||
| USA DEBUSK, LLC | First Lien | Industrial Services | L+5.75% (Floor 1.00%)/M, Current Coupon 6.75% | 2/25/2020 | 10/22/2024 | 7,920 | 7,794 | 7,912 | ||||||||||||||||||||||||||||||||||||||||||
12
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| VISTAR MEDIA INC. | First Lien | Media, marketing & entertainment | L+7.50%, 3.50% PIK (Floor 2.00%)/M, Current Coupon 13.00% | 2/17/2017 | 4/3/2023 | 11,381 | 10,759 | 11,154 | ||||||||||||||||||||||||||||||||||||||||||
| 171,617 shares of Series A preferred stock | — | 4/3/2019 | — | — | 1,874 | 3,292 | ||||||||||||||||||||||||||||||||||||||||||||
| Warrants (Expiration - April 3, 2029) | — | 4/3/2019 | — | — | 620 | 1,245 | ||||||||||||||||||||||||||||||||||||||||||||
| 13,253 | 15,691 | |||||||||||||||||||||||||||||||||||||||||||||||||
VTX HOLDINGS, INC.8 | First Lien | Software & IT services | L+9.06% (Floor 2.00%)/Q, Current Coupon 11.06% | 7/23/2019 | 7/23/2024 | 21,575 | 21,162 | 21,575 | ||||||||||||||||||||||||||||||||||||||||||
| 1,397,707 Series A Preferred units | — | 7/23/2019 | — | — | 1,398 | 1,654 | ||||||||||||||||||||||||||||||||||||||||||||
| 22,560 | 23,229 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ZENFOLIO INC. | Revolving Loan10 | Business services | L+9.00% (Floor 1.00%)/Q, Current Coupon 10.00% | 7/17/2017 | 7/17/2023 | 1,000 | 992 | 910 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+9.00% (Floor 1.00%)/Q, Current Coupon 10.00% | 7/17/2017 | 7/17/2023 | 14,888 | 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 services | L+7.00% (Floor 1.75%)/Q, Current Coupon 8.75% | 5/22/2020 | 5/22/2025 | $ | 300 | $ | 274 | $ | 286 | |||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.00% (Floor 1.75%)/Q, Current Coupon 8.75% | 5/22/2020 | 5/22/2025 | 7,500 | 7,365 | 7,140 | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Capex Term Loan10 | L+7.00% (Floor 1.75%)/Q, Current Coupon 8.75% | 5/22/2020 | 5/22/2025 | 100 | 74 | 95 | ||||||||||||||||||||||||||||||||||||||||||||
875,000 Preferred Units9 | — | 5/22/2020 | 5/22/2025 | — | 875 | 641 | ||||||||||||||||||||||||||||||||||||||||||||
| 8,588 | 8,162 | |||||||||||||||||||||||||||||||||||||||||||||||||
CHANDLER SIGNS, LLC13 | 1,500,000 units of Class A-1 common stock9 | Business services | — | 1/4/2016 | — | — | 1,500 | 2,892 | ||||||||||||||||||||||||||||||||||||||||||
| DELPHI BEHAVIORAL HEALTH GROUP, LLC | First Lien | Healthcare services | P+10.00% (Floor 2.00%) PIK/M, Current Coupon 13.25% | 4/8/2020 | 4/7/2023 | 1,397 | 1,396 | 1,381 | ||||||||||||||||||||||||||||||||||||||||||
13
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | P+8.00% (Floor 2.00%) PIK/M, Current Coupon 11.25% | 4/8/2020 | 4/7/2023 | 1,561 | 1,561 | 1,482 | ||||||||||||||||||||||||||||||||||||||||||||
| 1,681.04 Common Units | — | 4/8/2020 | — | — | 3,615 | 3,615 | ||||||||||||||||||||||||||||||||||||||||||||
| 6,572 | 6,478 | |||||||||||||||||||||||||||||||||||||||||||||||||
DYNAMIC COMMUNITIES, LLC13 | Revolving Loan10 | Business services | L+3.75%, 7.75% PIK (Floor 1.00%) | 7/17/2018 | 7/17/2023 | — | (3) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+3.75%, 7.75% PIK (Floor 1.00%)/Q, Current Coupon 12.50% | 7/17/2018 | 7/17/2023 | 10,851 | 10,729 | 9,776 | ||||||||||||||||||||||||||||||||||||||||||||
| Senior subordinated debt | 25% PIK | 12/4/2020 | 1/16/2024 | 350 | 350 | 350 | ||||||||||||||||||||||||||||||||||||||||||||
2,000,000 Preferred Units9 | — | 7/17/2018 | — | — | 2,000 | 1,274 | ||||||||||||||||||||||||||||||||||||||||||||
| 13,076 | 11,400 | |||||||||||||||||||||||||||||||||||||||||||||||||
| GRAMMATECH, INC. | Revolving Loan | Software & IT services | L+7.50% (Floor 2.00%)/Q, Current Coupon 9.50% | 11/1/2019 | 11/1/2024 | 2,500 | 2,466 | 2,483 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.50% (Floor 2.00%)/Q, Current Coupon 9.50% | 11/1/2019 | 11/1/2024 | 11,500 | 11,338 | 11,419 | ||||||||||||||||||||||||||||||||||||||||||||
| 1,000 Class A units | — | 11/1/2019 | — | — | 1,000 | 1,455 | ||||||||||||||||||||||||||||||||||||||||||||
| 14,804 | 15,357 | |||||||||||||||||||||||||||||||||||||||||||||||||
ITA HOLDINGS GROUP, LLC13 | Revolving Loan10 | Transportation & logistics | L+9.00% (Floor 1.00%) | 2/14/2018 | 2/14/2023 | — | (25) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien - Term Loan | L+8.00% (Floor 1.00%), 0.5% PIK/Q, Current Coupon 9.50% | 2/14/2018 | 2/14/2023 | 10,077 | 9,990 | 10,016 | ||||||||||||||||||||||||||||||||||||||||||||
| First Lien - Term B Loan | L+11.00% (Floor 1.00%) 0.5% PIK/Q, Current Coupon 12.50% | 6/5/2018 | 2/14/2023 | 5,038 | 4,981 | 5,114 | ||||||||||||||||||||||||||||||||||||||||||||
| First Lien - PIK Note A | 10.00% PIK | 3/29/2019 | 2/14/2023 | 2,611 | 2,189 | 2,593 | ||||||||||||||||||||||||||||||||||||||||||||
| First Lien - PIK Note B | 10.00% PIK | 3/29/2019 | 2/14/2023 | 103 | 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
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| SIMR, LLC | First Lien | Healthcare services | L+10.00% (Floor 2.00%)/M, 7.00% PIK, Current Coupon 19.00% | 9/7/2018 | 9/7/2023 | 12,331 | 12,193 | 10,740 | ||||||||||||||||||||||||||||||||||||||||||
| 9,374,510.2 Class B Common Units | — | 9/7/2018 | — | — | 6,107 | — | ||||||||||||||||||||||||||||||||||||||||||||
| 18,300 | 10,740 | |||||||||||||||||||||||||||||||||||||||||||||||||
SONOBI, INC.13 | First Lien | Media, marketing & entertainment | L+8.50% (Floor 1.00%)/Q, Current Coupon 9.50% | 9/17/2020 | 9/16/2025 | 8,500 | 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 interest | Multi-sector holdings | — | 10/20/2015 | — | — | $ | 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
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
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
Non-control/Non-affiliate Investments5 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| AAC HOLDINGS, INC. | First Lien - Priming Facility | Healthcare services | P +13.50% (Floor 1.00%)/Q, Current Coupon 16.75% | 3/21/2019 | 4/15/2020 | $ | 1,968 | $ | 1,969 | $ | 1,968 | |||||||||||||||||||||||||||||||||||||||
First Lien16 | L+6.75% (Floor 1.00%)/Q, 4.00% PIK, Current Coupon 13.33% | 6/28/2017 | 6/30/2023 | 9,079 | 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% | 12/13/2018 | 12/13/2023 | 9,688 | 9,532 | 9,445 | ||||||||||||||||||||||||||||||||||||||||||
| ADAMS PUBLISHING GROUP, LLC | First Lien | Media, marketing & entertainment | L+7.50% (Floor 1.75%)/Q, Current Coupon 9.29% | 7/2/2018 | 7/2/2023 | 10,730 | 10,572 | 10,312 | ||||||||||||||||||||||||||||||||||||||||||
| Delayed Draw Term Loan | L+7.50% (Floor 1.75%)/Q, Current Coupon 9.25% | 7/2/2018 | 7/2/2023 | 344 | 320 | 330 | ||||||||||||||||||||||||||||||||||||||||||||
| 10,892 | 10,642 | |||||||||||||||||||||||||||||||||||||||||||||||||
AG KINGS HOLDINGS INC.8,16 | First Lien | Food, agriculture & beverage | L+10.02% (Floor 1.00%)/M, Current Coupon 12.69% | 8/4/2016 | 8/8/2021 | 9,308 | 9,194 | 5,445 | ||||||||||||||||||||||||||||||||||||||||||
| ALLIANCE SPORTS GROUP, L.P. | Senior subordinated debt | Consumer products & retail | 11.00% | 8/1/2017 | 2/1/2023 | 10,100 | 9,980 | 9,747 | ||||||||||||||||||||||||||||||||||||||||||
| 3.88% membership preferred interest | — | 8/1/2017 | — | — | 2,500 | 2,335 | ||||||||||||||||||||||||||||||||||||||||||||
| 12,480 | 12,082 | |||||||||||||||||||||||||||||||||||||||||||||||||
AMERICAN NUTS OPERATIONS LLC13 | First Lien - Term Loan | Food, agriculture and beverage | L+9.50% (Floor 1.00%)/Q, Current Coupon 11.41% | 4/10/2018 | 4/10/2023 | 17,194 | 16,963 | 16,884 | ||||||||||||||||||||||||||||||||||||||||||
First Lien - Term Loan C10 | L+9.50% (Floor 1.00%)/Q, Current Coupon 11.41% | 12/21/2018 | 4/10/2023 | 1,804 | 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 Lien | Telecommunications | L+6.50% (Floor 1.00%)/Q, Current Coupon 8.24% | 9/21/2016 | 6/8/2023 | 5,926 | 5,856 | 3,348 | ||||||||||||||||||||||||||||||||||||||||||
| Second Lien | 0.5%, L+9.00% PIK (Floor 1.00%)/Q, Current Coupon 11.35% | 11/3/2016 | 6/6/2024 | 2,111 | 2,072 | 792 | ||||||||||||||||||||||||||||||||||||||||||||
| 7,928 | 4,140 | |||||||||||||||||||||||||||||||||||||||||||||||||
17
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| AMWARE FULFILLMENT LLC | First Lien | Distribution | L+9.50% (Floor 1.00%)/M, Current Coupon 10.95% | 7/29/2016 | 12/31/2020 | 12,027 | 11,988 | 11,991 | ||||||||||||||||||||||||||||||||||||||||||
ASC ORTHO MANAGEMENT COMPANY, LLC13 | Revolving Loan | Healthcare services | L+7.50% (Floor 1.00%)/Q, Current Coupon 8.70% | 8/31/2018 | 8/31/2023 | 1,500 | 1,480 | 1,425 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.50% (Floor 1.00%)/Q, Current Coupon 9.41% | 8/31/2018 | 8/31/2023 | 9,028 | 8,894 | 8,577 | ||||||||||||||||||||||||||||||||||||||||||||
| Second Lien | 13.25% PIK | 8/31/2018 | 12/1/2023 | 3,709 | 3,649 | 3,275 | ||||||||||||||||||||||||||||||||||||||||||||
2,042 Common Units9 | — | 8/31/2018 | — | — | 750 | 356 | ||||||||||||||||||||||||||||||||||||||||||||
| 14,773 | 13,633 | |||||||||||||||||||||||||||||||||||||||||||||||||
| BINSWANGER HOLDING CORP. | First Lien | Distribution | L+8.50% (Floor 1.00%)/M, Current Coupon 9.96% | 3/9/2017 | 3/9/2022 | 11,604 | 11,500 | 11,163 | ||||||||||||||||||||||||||||||||||||||||||
| 900,000 shares of common stock | — | 3/9/2017 | — | — | 900 | 636 | ||||||||||||||||||||||||||||||||||||||||||||
| 12,400 | 11,799 | |||||||||||||||||||||||||||||||||||||||||||||||||
| BLASCHAK COAL CORP. | Second Lien- Term Loan15 | Commodities & mining | L+11.00%/Q, (Floor 1.00%) 1.00% PIK, Current Coupon 13.91% | 7/30/2018 | 7/30/2023 | 8,624 | 8,497 | 8,451 | ||||||||||||||||||||||||||||||||||||||||||
Second Lien- Term Loan B15 | L+11.00%/Q, (Floor 1.00%) 1.00% PIK, Current Coupon 13.43% | 3/30/2020 | 7/30/2023 | 2,000 | 1,960 | 1,960 | ||||||||||||||||||||||||||||||||||||||||||||
| 10,457 | 10,411 | |||||||||||||||||||||||||||||||||||||||||||||||||
CALIFORNIA PIZZA KITCHEN, INC.16 | First Lien | Restaurants | L+6.00% (Floor 1.00%)/M, Current Coupon 7.62% | 8/19/2016 | 8/23/2022 | 4,825 | 4,802 | 2,441 | ||||||||||||||||||||||||||||||||||||||||||
| CAPITAL PAWN HOLDINGS, LLC | First Lien | Consumer products & retail | L+9.50%/Q, Current Coupon 11.41% | 12/21/2017 | 7/8/2020 | 11,097 | 11,068 | 11,075 | ||||||||||||||||||||||||||||||||||||||||||
| CLICKBOOTH.COM, LLC | Revolving Loan | Media, marketing & entertainment | L+8.50% (Floor 1.00%)/Q, Current Coupon 9.5% | 12/5/2017 | 1/31/2025 | 1,086 | 1,080 | 1,086 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+8.50% (Floor 1.00%)/Q, Current Coupon 10.41% | 12/5/2017 | 1/31/2025 | 19,000 | 18,739 | 19,000 | ||||||||||||||||||||||||||||||||||||||||||||
| 19,819 | 20,086 | |||||||||||||||||||||||||||||||||||||||||||||||||
18
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
DANFORTH ADVISORS, LLC13 | Revolving Loan10 | Business services | L+7.25% (Floor 2.00%)/Q, Current Coupon 9.25% | 9/28/2018 | 9/28/2023 | 500 | 486 | 500 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+7.25% (Floor 2.00%)/Q, Current Coupon 9.25% | 9/28/2018 | 9/28/2023 | 7,250 | 7,141 | 7,250 | ||||||||||||||||||||||||||||||||||||||||||||
875 Class A equity units9 | — | 9/28/2018 | — | — | 875 | 1,445 | ||||||||||||||||||||||||||||||||||||||||||||
| 8,502 | 9,195 | |||||||||||||||||||||||||||||||||||||||||||||||||
DELPHI INTERMEDIATE HEALTHCO, LLC16 | Revolving Loan | Healthcare services | L+9.50% (Floor 1.00%)/Q, Current Coupon 11.97% | 10/2/2019 | 10/3/2022 | 1,223 | 1,223 | 1,223 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+9.50% (Floor 1.00%)/Q, Current Coupon 11.20% | 11/3/2017 | 10/3/2022 | 10,605 | 10,533 | 5,101 | ||||||||||||||||||||||||||||||||||||||||||||
| 11,756 | 6,324 | |||||||||||||||||||||||||||||||||||||||||||||||||
| DRIVEN, INC. | First Lien | Business Services | L+8.00% (Floor 2.00%)/Q, Current Coupon 10.00% | 6/28/2019 | 6/28/2024 | 11,940 | 11,730 | 11,940 | ||||||||||||||||||||||||||||||||||||||||||
| DUNN PAPER, INC. | Second Lien | Paper & forest products | L+8.75% (Floor 1.00%)/M, Current Coupon 9.75% | 9/28/2016 | 8/26/2023 | 3,000 | 2,965 | 3,000 | ||||||||||||||||||||||||||||||||||||||||||
| ENVIRONMENTAL PEST SERVICE MANAGEMENT COMPANY, LLC | First Lien | Consumer services | L+7.00%(Floor 1.00%)/Q, Current Coupon 8.91% | 6/22/2018 | 6/22/2023 | 15,292 | 15,103 | 15,292 | ||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan10 | L+7.00%(Floor 1.00%)/Q, Current Coupon 8.91% | 6/22/2018 | 6/22/2023 | 6,110 | 6,015 | 6,111 | ||||||||||||||||||||||||||||||||||||||||||||
| 21,118 | 21,403 | |||||||||||||||||||||||||||||||||||||||||||||||||
| ESCP DTFS, INC. | First Lien - Term Loan A | Industrial services | L+6.50%(Floor 1.75%)/Q, Current Coupon 8.27% | 1/31/2020 | 1/31/2025 | 5,350 | 5,253 | 5,253 | ||||||||||||||||||||||||||||||||||||||||||
| First Lien - Term Loan B | L+8.50%(Floor 1.75%)/Q, Current Coupon 10.27% | 1/31/2020 | 1/31/2025 | 5,350 | 5,253 | 5,253 | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan A110 | L+6.50%(Floor 1.75%) | 1/31/2020 | 1/31/2025 | — | (10) | — | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan A210 | L+8.50%(Floor 1.75%) | 1/31/2020 | 1/31/2025 | — | (10) | — | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan B110 | L+6.50%(Floor 1.75%) | 1/31/2020 | 1/31/2025 | — | (3) | — | ||||||||||||||||||||||||||||||||||||||||||||
Delayed Draw Term Loan B210 | L+8.50%(Floor 1.75%) | 1/31/2020 | 1/31/2025 | — | (3) | — | ||||||||||||||||||||||||||||||||||||||||||||
| 10,480 | 10,506 | |||||||||||||||||||||||||||||||||||||||||||||||||
19
| CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | ||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Portfolio Company1 | Type of Investment2 | Industry | Current Interest Rate3 | Acquisition Date14 | Maturity | Principal | Cost17 | Fair Value4 | ||||||||||||||||||||||||||||||||||||||||||
| FAST SANDWICH, LLC | Revolving Loan10 | Restaurants | L+9.00% (Floor 1.00%)/Q, 5.0% PIK | 5/24/2018 | 5/23/2023 | — | (43) | — | ||||||||||||||||||||||||||||||||||||||||||
| First Lien | L+9.00% (Floor 1.00%)/Q, 5.0% PIK,Current Coupon 15.91% | 5/24/2018 | 5/23/2023 | 3,393 | 3,354 | 3,179 | ||||||||||||||||||||||||||||||||||||||||||||
| 3,311 | 3,179 | |||||||||||||||||||||||||||||||||||||||||||||||||
| GS OPERATING, LLC | First Lien | Distribution | L+6.50%(Floor 1.50%)/M, Current Coupon 8.00% | 3/6/2020 | 2/24/2025 | 8,000 | 7,842 | 7,842 | ||||||||||||||||||||||||||||||||||||||||||
ICS DISTRIBUTION, LLC8 | First Lien | Industrial services | L+8.21%(Floor 2.00%)/Q, Current Coupon 10.21% | 10/31/2019 | 10/29/2024 | 18,000 | 17,617 | 17,617 | ||||||||||||||||||||||||||||||||||||||||||
| IENERGIZER LIMITED | First Lien9 | Business services | L+6.00%(Floor 1.00%)/M, Current Coupon 7.00% | 4/17/2019 | 4/17/2024 | 12,000 | 11,899 | 12,000 | ||||||||||||||||||||||||||||||||||||||||||
| JVMC HOLDINGS CORP. | First Lien | Financial services | L+6.50% (Floor 1.00%)/M, Current Coupon 7.50% | 2/28/2019 | 2/28/2024 | 8,183 | 8,115 | 8,183 | ||||||||||||||||||||||||||||||||||||||||||
| LANDPOINT HOLDCO, INC. | First Lien | Business Services | L+7.00%(Floor 1.00%)/Q, Current Coupon 8.96% | 12/30/2019 | 12/30/2024 | 19,500 | 19,128 | 19,110 | ||||||||||||||||||||||||||||||||||||||||||
LGM PHARMA, LLC13 | First Lien | Healthcare products | L+8.50% (Floor 1.00%)/M, Current Coupon 10.02% | 11/15/2017 | 11/15/2022 | 11,541 | 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 Lien | Environmental services | 6%, L+3.00% PIK (Floor 2.00%)/Q, Current Coupon 11.00% | 6/30/2017 | 6/30/2022 | 13,439 | 13,364 | 12,149 | ||||||||||||||||||||||||||||||||||||||||||
| 25,603 shares of Series C preferred stock | — | 8/13/2018 | — | — | 25 | — | ||||||||||||||||||||||||||||||||||||||||||||
| 396,825 shares of Series B preferred stock | — | 6/30/2017 | — | — | 500 | — | ||||||||||||||||||||||||||||||||||||||||||||
| 13,889 | 12,149 | |||||||||||||||||||||||||||||||||||||||||||||||||
| MEDIA RECOVERY, INC. | Earnout | Industrial products | — | |||||||||||||||||||||||||||||||||||||||||||||||