0000017313-22-000010.txt : 20220201 0000017313-22-000010.hdr.sgml : 20220201 20220201161747 ACCESSION NUMBER: 0000017313-22-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20211231 FILED AS OF DATE: 20220201 DATE AS OF CHANGE: 20220201 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAPITAL SOUTHWEST CORP CENTRAL INDEX KEY: 0000017313 IRS NUMBER: 751072796 STATE OF INCORPORATION: TX FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 814-00061 FILM NUMBER: 22579148 BUSINESS ADDRESS: STREET 1: 5400 LYNDON B. JOHNSON FREEWAY STREET 2: SUITE 1300 CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2142385700 MAIL ADDRESS: STREET 1: 5400 LYNDON B. JOHNSON FREEWAY STREET 2: SUITE 1300 CITY: DALLAS STATE: TX ZIP: 75240 10-Q 1 cswc12312110q.htm 10-Q 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, 2021

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
¨
Non-accelerated filer
x
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.

23,925,703 shares of Common Stock, $0.25 value per share, as of January 28, 2022.



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,
20212021
(Unaudited)
Assets
Investments at fair value:
Non-control/Non-affiliate investments (Cost: $673,871 and $540,556, respectively)$691,229 $546,028 
Affiliate investments (Cost: $136,929 and $90,201, respectively)127,947 85,246 
Control investments (Cost: $76,000 and $72,800, respectively)57,589 57,158 
Total investments (Cost: $886,800 and $703,557, respectively)876,765 688,432 
Cash and cash equivalents18,668 31,613 
Receivables:
Dividends and interest8,966 10,533 
Escrow1,344 1,150 
Other274 171 
Income tax receivable33 155 
Debt issuance costs (net of accumulated amortization of $4,340 and $3,582, respectively)4,271 2,246 
Other assets2,234 1,284 
Total assets$912,555 $735,584 
Liabilities
SBA Debentures (Par value: $29,000 and $0, respectively)$27,965 $— 
October 2024 Notes (Par value: $0 and $125,000, respectively)— 122,879 
January 2026 Notes (Par value: $140,000 and $140,000, respectively)138,630 138,425 
October 2026 Notes (Par value: $150,000 and $0, respectively)146,357 — 
Credit facility190,000 120,000 
Other liabilities13,392 11,655 
Accrued restoration plan liability2,853 2,979 
Income tax payable1,527 50 
Deferred tax liability4,494 3,345 
Total liabilities525,218 399,333 
Commitments and contingencies (Note 10)
Net Assets
Common stock, $0.25 par value: authorized, 40,000,000 shares; issued, 26,265,215 shares at December 31, 2021 and 23,344,836 shares at March 31, 20216,566 5,836 
Additional paid-in capital424,250 356,447 
Total distributable (loss) earnings(19,542)(2,095)
Treasury stock - at cost, 2,339,512 shares(23,937)(23,937)
Total net assets387,337 336,251 
Total liabilities and net assets$912,555 $735,584 
Net asset value per share (23,925,703 shares outstanding at December 31, 2021 and 21,005,324 shares outstanding at March 31, 2021)$16.19 $16.01 

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 EndedNine Months Ended
December 31,December 31,
2021202020212020
Investment income:
Interest income:
Non-control/Non-affiliate investments$14,805 $11,306 $42,873 $31,010 
Affiliate investments2,116 1,774 4,774 5,715 
Control investments— — — — 
Payment-in-kind interest income:
Non-control/Non-affiliate investments614 980 1,717 3,224 
Affiliate investments200 627 951 1,265 
Control investments— — — — 
Dividend income:
Non-control/Non-affiliate investments— 1,235 1,570 1,589 
Affiliate investments— — 
Control investments1,705 1,681 4,862 5,144 
Fee income:
Non-control/Non-affiliate investments2,591 1,394 4,005 2,817 
Affiliate investments267 40 413 107 
Control investments— — — — 
Other income12 18 
Total investment income22,311 19,040 61,186 50,889 
Operating expenses:
Compensation3,353 2,444 7,083 6,125 
Share-based compensation849 771 2,848 2,236 
Interest4,655 4,528 15,015 13,253 
Professional fees607 538 1,956 1,691 
General and administrative1,010 787 2,968 2,339 
Total operating expenses10,474 9,068 29,870 25,644 
Income before taxes11,837 9,972 31,316 25,245 
Federal income, excise and other taxes68 195 283 587 
Deferred taxes(130)1,260 3651,003 
Total income tax provision (benefit)(62)1,455 648 1,590 
Net investment income$11,899 $8,517 $30,668 $23,655 
Realized gain (loss)
Non-control/Non-affiliate investments$4,017 $(127)$6,561 $(5,325)
Affiliate investments140 — 140 (1,628)
Control investments— — — — 
Income tax provision(1,442)— (1,442)— 
Total net realized gain (loss) on investments, net of tax2,715 (127)5,259 (6,953)
Net unrealized (depreciation) appreciation on investments
Non-control/Non-affiliate investments3,165 5,593 12,558 16,417 
Affiliate investments(3,849)245 (4,700)(1,012)
Control investments(2,049)2,152 (2,769)11,075 
Income tax benefit (provision)679 (719)(783)(1,968)
Total net unrealized (depreciation) appreciation on investments, net of tax(2,054)7,271 4,306 24,512 
Net realized and unrealized gains on investments661 7,144 9,565 17,559 
Realized loss on extinguishment of debt— (262)(17,087)(548)
Net increase (decrease) in net assets from operations$12,560 $15,399 $23,146 $40,666 
Pre-tax net investment income per share - basic and diluted$0.51 $0.52 $1.40 $1.36 
Net investment income per share – basic and diluted$0.51 $0.45 $1.37 $1.27 
Net increase (decrease) in net assets from operations – basic and diluted$0.54 $0.80 $1.03 $2.18 
Weighted average shares outstanding – basic and diluted23,432,522 19,134,824 22,393,935 18,629,463 
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)
20212020
Net assets, March 31$336,251 $272,222 
Operations:
Net investment income9,043 6,819 
Net realized (loss) gain on investments(952)(5,547)
Net unrealized appreciation (depreciation) on investments, net of tax7,051 7,605 
Net increase in net assets from operations15,142 8,877 
Dividends to shareholders ($0.53 and $0.51 per share, respectively)(11,528)(9,480)
Capital share transactions:
Change in restoration plan liability
Issuance of common stock27,686 5,622 
Share-based compensation expense1,076 612 
Common stock withheld for payroll taxes upon vesting of restricted stock(541)(3)
Increase in net assets31,844 5,637 
Net assets, June 30$368,095 $277,859 
Operations:
Net investment income9,726 8,319 
Net realized gain (loss) on investments, net of tax3,496 (1,279)
Net unrealized appreciation (depreciation) on investments, net of tax(691)9,636 
Realized loss on extinguishment of debt(17,087)(286)
Net (decrease) increase in net assets from operations(4,556)16,390 
Dividends to shareholders ($0.54 and $0.51 per share, respectively)(12,401)(9,498)
Capital share transactions:
Change in pension plan funded status
Issuance of common stock29,880 516 
Share-based compensation expense923 853 
Common stock withheld for payroll taxes upon vesting of restricted stock(5)— 
Increase in net assets13,850 8,270 
Net assets, September 30$381,945 $286,129 
Operations:
Net investment income11,899 8,517 
Net realized gain (loss) on investments, net of tax2,715 (127)
Net unrealized (depreciation) appreciation on investments, net of tax(2,054)7,271 
Realized losses on extinguishment of debt— (262)
Net increase in net assets from operations12,560 15,399 
Dividends to shareholders ($0.97 and $0.51 per share, respectively)(22,917)(10,044)
Capital share transactions:
Change in pension plan funded status
Issuance of common stock15,754 20,623 
Share-based compensation expense849 771 
Common stock withheld for payroll taxes upon vesting of restricted stock(863)(236)
Increase in net assets5,392 26,521 
Net assets, December 31$387,337 $312,650 

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,
20212020
Cash flows from operating activities
Net increase in net assets from operations$23,146 $40,666 
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:
Purchases and originations of investments(410,066)(150,323)
Proceeds from sales and repayments of debt investments in portfolio companies221,462 70,280 
Proceeds from sales and return of capital of equity investments in portfolio companies11,881 9,782 
Payment of accreted original issue discounts3,133 1,010 
Payment of accrued payment-in-kind interest2,064 — 
Depreciation and amortization1,628 1,478 
Net pension benefit(99)(81)
Realized loss on extinguishment of debt17,103 548 
Realized (gain) loss on investments before income tax(6,058)6,967 
Net unrealized appreciation on investments before income tax(5,089)(26,480)
Accretion of discounts on investments(2,177)(1,730)
Payment-in-kind interest(3,550)(5,207)
Share-based compensation expense2,848 2,236 
Deferred income taxes1,149 3,146 
Changes in other assets and liabilities:
Decrease (increase) in dividend and interest receivable1,601 (357)
(Increase) decrease in escrow receivables(159)493 
Decrease (increase) in tax receivable121 (439)
(Increase) decrease in other receivables(104)
Decrease in other assets(1,152)66 
Increase in taxes payable1,477 332 
Increase in other liabilities1,738 1,900 
Net cash used in operating activities(139,103)(45,704)
Cash flows from financing activities
Proceeds from common stock offering73,346 26,770 
Borrowings under credit facility295,000 147,000 
Repayments of credit facility(225,000)(151,000)
Debt issuance costs paid(3,445)(325)
Proceeds from issuance of SBA Debentures28,294 — 
Proceeds from issuance of October 2024 Notes— 49,000 
Proceeds from issuance of October 2026 Notes146,414 — 
Partial redemption of December 2022 Notes— (40,000)
Redemption of October 2024 Notes(125,000)— 
Payment for debt extinguishment costs(15,196)— 
Dividends to shareholders(46,847)(29,022)
Common stock withheld for payroll taxes upon vesting of restricted stock(1,408)(239)
Net cash provided by financing activities126,158 75,684 
Net (decrease) increase in cash and cash equivalents(12,945)29,980 
Cash and cash equivalents at beginning of period31,613 13,744 
Cash and cash equivalents at end of period$18,668 $43,724 
Supplemental cash flow disclosures:
Cash paid for income taxes$150 $619 
Cash paid for interest13,744 10,149 



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, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
Non-control/Non-affiliate Investments5
AAC NEW HOLDCO INC.First LienHealthcare services10.00%, 8.00% PIK12/11/20206/25/2025$8,482 $8,482 $8,143 
374,543 shares common stock12/11/2020— 1,785 1,785 
Warrants (Expiration - December 11, 2025)12/11/2020— 2,198 2,198 
12,465 12,126 
ACCELERATION PARTNERS, LLC8,13
First LienMedia, marketing & entertainmentL+8.18% (Floor 1.00%)/Q, Current Coupon 9.18%12/1/202012/1/202511,875 11,586 11,875 
1,000 Preferred Units9
12/1/2020— 1,000 1,153 
1,000 Class A Common Units9
12/1/2020— — — 
12,586 13,028 
ACE GATHERING, INC.
Second Lien15
Energy services (midstream)L+8.50% (Floor 2.00%)/Q, Current Coupon 10.50%12/13/201812/13/20238,010 7,934 7,890 
ALLIANCE SPORTS GROUP, L.P.Senior subordinated debtConsumer products & retail11.00%8/1/20172/1/202311,521 11,463 11,521 
Unsecured convertible note6.00% PIK7/15/20209/30/2024173 173 232 
3.88% membership preferred interest8/1/2017— 2,500 3,053 
14,136 14,806 
ALLOVER MEDIA, LLC
Revolving Loan10
Media, marketing & entertainmentL+7.00% (Floor 1.00%)3/10/20213/10/2026— (33)— 
First LienL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%3/10/20213/10/202612,133 11,922 12,376 
11,889 12,376 
AMERICAN NUTS OPERATIONS LLC13
First Lien - Term LoanFood, agriculture and beverageL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%4/10/20184/10/202516,888 16,770 16,888 
First Lien - Term Loan C10
L+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%12/21/20184/10/20251,804 1,784 1,804 
3,000,000 units of Class A common stock9
4/10/2018— 3,000 2,752 
21,554 21,444 
7

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
AMERICAN TELECONFERENCING SERVICES, LTD. (DBA PREMIERE GLOBAL SERVICES, INC.)
Revolving Loan10,16
TelecommunicationsP+5.50%/Q, Current Coupon 8.75%9/17/202112/7/2021903 894 27 
First Lien16
P+5.50%/Q, Current Coupon 8.75%9/21/20166/8/20234,899 4,858 147 
5,752 174 
AMWARE FULFILLMENT LLCFirst LienDistributionL+9.00% (Floor 1.00%)/M, Current Coupon 10.00%7/29/20161/31/202216,634 16,624 16,634 
ARBORWORKS, LLC
Revolving Loan10
Environmental servicesL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%11/17/202111/9/2026940 881 881 
First LienL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%11/17/202111/9/202613,000 12,746 12,746 
100 Class A Units11/17/2021— 100 100 
13,727 13,727 
ASC ORTHO MANAGEMENT COMPANY, LLC13
2,042 Common Units9
Healthcare services8/31/2018— 750 514 
BINSWANGER HOLDING CORP.First LienDistributionL+8.50% (Floor 1.00%)/M, Current Coupon 9.50%3/9/20173/10/202310,286 10,266 10,286 
900,000 shares of common stock3/9/2017— 900 924 
11,166 11,210 
BLASCHAK ANTHRACITE CORPORATION (FKA BLASCHAK COAL CORP.)
Second Lien- Term Loan15
Commodities & miningL+11.00% (Floor 1.00%)/Q, 3.00% PIK, Current Coupon 15.00%7/30/20187/30/20238,994 8,925 8,499 
Second Lien- Term Loan B15
L+5.50% (Floor 1.00%)/Q, 12.50% PIK, Current Coupon 19.00%3/30/20207/30/20232,081 2,059 1,966 
10,984 10,465 
BROAD SKY NETWORKS LLC13
1,131,579 Series A Preferred units9
Telecommunications12/11/2020— 1,131 1,131 
CALIFORNIA PIZZA KITCHEN, INC.48,423 shares of common stockRestaurants11/23/2020— 1,317 2,276 
CAMIN CARGO CONTROL, INC.First LienEnergy services (midstream)L+6.50% (Floor 1.00%)/Q, Current Coupon 7.50% 6/2/20216/4/20265,970 5,916 5,916 
8

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
CITYVET, INC.13
Delayed Draw Term Loan10
Healthcare servicesL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%3/5/20213/5/202610,500 10,135 10,500 
271,739 Class A units9
3/5/2021— 500 1,026 
10,635 11,526 
CRAFTY APES, LLC8
First LienMedia, marketing & entertainmentL+6.44% (Floor 1.00%)/Q, Current Coupon 7.44%6/9/202111/1/202410,000 9,915 10,000 
DUNN PAPER, INC.Second LienPaper & forest productsL+9.25% (Floor 1.00%)/M, Current Coupon 10.25%9/28/20168/26/20233,000 2,981 2,500 
EVEREST TRANSPORTATION SYSTEMS, LLCFirst LienTransportation & logisticsL+8.00% (Floor 1.00%)/M, Current Coupon 9.00%11/9/20218/26/20269,052 8,963 8,963 
FAST SANDWICH, LLC
Revolving Loan10
RestaurantsL+9.00% (Floor 1.00%)5/24/20185/23/2023— (24)— 
First LienL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%5/24/20185/23/20233,297 3,279 3,297 
3,255 3,297 
FLIP ELECTRONICS, LLC8,13
First LienTechnology products & componentsL+7.94% (Floor 1.00%)/M, Current Coupon 8.94%1/4/20211/2/202615,500 15,219 15,500 
2,000,000 Common Units9,11
1/4/2021— 2,000 4,540 
17,219 20,040 
FOOD PHARMA SUBSIDIARY HOLDINGS, LLC13
First LienFood, agriculture & beverageL+6.50% (Floor 1.00%)/M, Current Coupon 7.50%6/1/20216/1/20265,000 4,910 5,000 
Delayed Draw Term Loan10
L+6.50% (Floor 1.00%)/M, Current Coupon 7.50%6/1/20216/1/20262,030 1,968 2,030 
75,000 Class A Units9
6/1/2021— 750 750 
7,628 7,780 
GS OPERATING, LLCFirst LienDistributionL+6.50% (Floor 1.50%)/M, Current Coupon 8.00%3/6/20202/24/20257,742 7,633 7,742 
HYBRID APPAREL, LLC
Second Lien15
Consumer products & retailL+8.25% (Floor 1.00%)/Q, Current Coupon 9.25%6/30/20216/30/202615,750 15,460 15,419 
9

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
INFOLINKS MEDIA BUYCO, LLCFirst LienMedia, marketing & entertainmentL+6.00% (Floor 1.00%)/M, Current Coupon 7.00%11/1/202110/30/20267,750 7,599 7,599 
Delayed Draw Term Loan10
L+6.00% (Floor 1.00%)11/1/202110/30/2026— (21)— 
1.68% LP interest10
10/29/2021— 588 588 
8,166 8,187 
ISI ENTERPRISES, LLC
Revolving Loan10
Software & IT servicesL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%10/1/202110/1/2026800 762 762 
First LienL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%10/1/202110/1/20265,000 4,904 4,904 
1,000,000 Series A Preferred units10/1/2021— 1,000 1,000 
6,666 6,666 
JVMC HOLDINGS CORP.First LienFinancial servicesL+6.75% (Floor 1.00%)/M, Current Coupon 7.75%2/28/20192/28/20246,704 6,669 6,704 
KLEIN HERSH, LLC
Revolving Loan10
Business servicesL+7.00% (Floor 0.75%)/S11/13/202011/13/2025— (14)— 
First LienL+7.00% (Floor 0.75%)/S, Current Coupon 7.75%11/13/202011/13/202524,125 23,692 24,608 
23,678 24,608 
KMS, INC.
First Lien15
DistributionL+7.25% (Floor 1.00%)/Q, Current Coupon 8.25%10/4/202110/2/202615,960 15,806 15,960 
Delayed Draw Term Loan10
L+7.25% (Floor 1.00%)10/4/202110/2/2026— (43)— 
15,763 15,960 
LASH OPCO, LLC
Revolving Loan10
Consumer products & retailL+7.00% (Floor 1.00%)12/29/20219/18/2025— (11)— 
First LienL+7.00% (Floor 1.00%)/M, Current Coupon 8.00%12/29/20213/18/20266,500 6,354 6,354 
Delayed Draw Term Loan10
L+7.00% (Floor 1.00%)12/29/20213/18/2026— (79)— 
6,264 6,354 
10

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
LGM PHARMA, LLC13
First LienHealthcare productsL+8.50% (Floor 1.00%), 2.00% PIK/M, Current Coupon 11.50%11/15/201711/15/202311,393 11,308 10,630 
Delayed Draw Term LoanL+10.00% (Floor 1.00%), 2.00% PIK/Q, Current Coupon 13.00%7/24/202011/15/20232,481 2,453 2,337 
Unsecured convertible note9
25.00% PIK12/21/202112/31/202488 88 82 
142,278.89 units of Class A common stock9
11/15/2017— 1,600 376 
15,449 13,425 
LLFLEX, LLC
First Lien15
Containers & packagingL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%8/16/20218/14/202610,973 10,740 10,698 
MAKO STEEL LP
Revolving Loan10
Business servicesL+7.25% (Floor 0.75%)/Q, Current Coupon 8.00%3/15/20213/13/20261,038 1,006 1,017 
First LienL+7.25% (Floor 0.75%)/Q, Current Coupon 8.00%3/15/20213/13/20268,052 7,913 7,891 
8,919 8,908 
MERCURY ACQUISITION 2021, LLC (DBA TELE-TOWN HALL)13
First LienTelecommunicationsL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%12/6/202112/7/202612,500 12,253 12,253 
Second LienL+11.00% (Floor 1.00%)/Q, Current Coupon 12.00%12/6/202112/7/20263,300 3,235 3,235 
2,089,599 Series A units9
12/6/2021— — 1,384 
15,488 16,872 
MUENSTER MILLING COMPANY, LLC
Revolving Loan10
Food, agriculture & beverageL+7.25% (Floor 1.00%)8/10/20218/10/2026— (92)— 
First LienL+7.25% (Floor 1.00%)/Q, Current Coupon 8.25%8/10/20218/10/202612,000 11,775 12,000 
Delayed Draw Term Loan10
L+7.25% (Floor 1.00%)/Q8/10/20218/10/2026— (55)— 
11,628 12,000 
NATIONAL CREDIT CARE, LLCFirst Lien - Term Loan AConsumer servicesL+6.50% (Floor 1.00%)/Q, Current Coupon 7.50%12/23/202112/23/202611,250 11,026 11,026 
First Lien - Term Loan BL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%12/23/202112/23/202611,250 11,026 11,026 
22,052 22,052 
11

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
NEUROPSYCHIATRIC HOSPITALS, LLC
Revolving Loan10
Healthcare servicesL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%5/14/20215/14/20264,400 4,313 4,299 
First LienL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%5/14/20215/14/202614,925 14,656 14,582 
Delayed Draw Term Loan10
L+8.00% (Floor 1.00%)5/14/20215/14/2026— (87)— 
18,882 18,881 
NINJATRADER, INC.13
Revolving Loan10
Financial servicesL+6.25% (Floor 1.00%)12/18/201912/18/2024— (4)— 
First LienL+6.25% (Floor 1.00%)/Q, Current Coupon 7.25%12/18/201912/18/202423,150 22,686 23,150 
Delayed Draw Term Loan10
L+6.25% (Floor 1.00%)/Q12/31/202012/18/2024— (49)— 
2,000,000 Preferred Units9,11
12/18/2019— 2,000 9,566 
24,633 32,716 
NWN PARENT HOLDINGS, LLC
Revolving Loan10
Software & IT servicesL+6.50% (Floor 1.00%)5/7/20215/7/2026420 389 415 
First LienL+6.50% (Floor 1.00%)/Q, Current Coupon 7.50%5/7/20215/7/202613,100 12,866 12,942 
13,255 13,357 
RESEARCH NOW GROUP, INC.Second LienBusiness servicesL+9.50% (Floor 1.00%)/M, Current Coupon 10.50%12/8/201712/20/202510,500 10,044 10,416 
ROOF OPCO, LLC
Revolving Loan10
Consumer servicesL+6.00% (Floor 1.00%)8/27/20218/27/2026— (57)— 
First LienL+6.00% (Floor 1.00%)/Q, Current Coupon 7.00%8/27/20218/27/202611,000 10,793 10,780 
Delayed Draw Term Loan10
L+6.00% (Floor 1.00%)8/27/20218/27/2026— (114)— 
10,622 10,780 
RTIC SUBSIDIARY HOLDINGS, LLC
Revolving Loan10
Consumer products & retailL+7.75% (Floor 1.25%)/Q, Current Coupon 9.00%9/1/20209/1/2025274 264 274 
First LienL+7.75% (Floor 1.25%)/Q, Current Coupon 9.00%9/1/20209/1/20257,003 6,935 7,003 
7,199 7,277 
12

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
SCRIP INC.8
First LienHealthcare productsL+9.49% (Floor 2.00%)/M, Current Coupon 11.49%3/21/20193/21/202416,750 16,496 16,750 
100 shares of common stock3/21/2019— 1,000 1,264 
17,496 18,014 
SHEARWATER RESEARCH, INC.9
Revolving Loan10
Consumer products & retailL+6.25% (Floor 1.00%)4/30/20214/30/2026— (42)— 
First LienL+6.25% (Floor 1.00%)/Q, Current Coupon 7.25%4/30/20214/30/202613,828 13,583 13,565 
Delayed Draw Term Loan10
L+6.25% (Floor 1.00%)4/30/20214/30/2026— (28)— 
1,200,000 Class A Preferred Units4/30/2021— 978 978 
40,000 Class A Common Units4/30/2021— 33 33 
14,524 14,576 
SIB HOLDINGS, LLC13
Revolving Loan10
Business servicesL+6.00% (Floor 1.00%)/M, Current Coupon 7.00%10/29/202110/29/202647 36 37 
First LienL+6.00% (Floor 1.00%)/M, Current Coupon 7.00%10/29/202110/29/20267,427 7,319 7,319 
Delayed Draw Term Loan10
L+6.00% (Floor 1.00%)10/29/202110/29/2026— (9)— 
238,095.24 Common Units9
10/29/2021— 500 500 
7,846 7,856 
SOUTH COAST TERMINALS, LLC
Revolving Loan10
Specialty chemicalsL+6.25% (Floor 1.00%)12/13/202112/11/2026— (38)— 
First LienL+6.25% (Floor 1.00%)/M, Current Coupon 7.25%12/13/202112/11/202618,065 17,706 17,706 
17,668 17,706 
SPOTLIGHT AR, LLC13
Revolving Loan10
Business servicesL+7.00% (Floor 1.00%)12/8/20216/8/2026— (39)— 
First LienL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%12/8/20216/8/20267,500 7,351 7,352 
750 Common Units9
12/8/2021— 750 750 
8,062 8,102 
13

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
STUDENT RESOURCE CENTER, LLC13
Revolving Loan10
EducationL+8.00% (Floor 1.00%)6/25/20216/25/2026— (24)— 
First LienL+8.00% (Floor 1.00%)/Q, Current Coupon 9.00%6/25/20216/25/202619,500 19,139 19,500 
2,000 Preferred Units9
6/25/2021— 2,000 2,304 
21,115 21,804 
SYSTEC CORPORATION (DBA INSPIRE AUTOMATION)
Revolving Loan10
Business servicesL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%8/13/20218/13/2025650 614 637 
First LienL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%8/13/20218/13/20259,000 8,834 8,820 
Delayed Draw Term Loan10
L+7.50% (Floor 1.00%)8/13/20218/13/2025— (27)— 
9,421 9,457 
THE PRODUCTO GROUP, LLC13
First LienIndustrial productsL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%12/31/202112/31/202613,770 13,495 13,495 
1,500,000 Class A units9
12/31/2021— 1,500 1,500 
14,995 14,995 
TRAFERA, LLC (FKA TRINITY 3, LLC)13
First Lien15
Technology products & componentsL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%9/30/20209/30/20259,900 9,783 9,860 
896.43 Class A units9,11
11/15/2019— 1,205 2,724 
10,988 12,584 
USA DEBUSK, LLCFirst LienIndustrial servicesL+5.75% (Floor 1.00%)/M, Current Coupon 6.75%2/25/20209/8/202611,643 11,472 11,539 
VISTAR MEDIA INC.171,617 shares of Series A preferred stockMedia, marketing & entertainment4/3/2019— 1,874 6,520 
VTX HOLDINGS, INC. (DBA VERTEX ONE)1,597,707 Series A Preferred unitsSoftware & IT services7/23/2019— 1,598 2,082 
WALL STREET PREP, INC.
Revolving Loan10
EducationL+7.00% (Floor 1.00%)7/19/20217/20/2026— (18)— 
First LienL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%7/19/20217/20/202610,931 10,729 10,724 
1,000,000 Class A-1 Preferred Shares7/19/2021— 1,000 1,000 
11,711 11,724 
14

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
WELL-FOAM, INC.
Revolving Loan10
Energy services (upstream)L+8.50 (Floor 1.00%)/Q, Current Coupon 9.50%9/9/20219/9/20261,000 913 1,000 
First LienL+8.50 (Floor 1.00%)/Q, Current Coupon 9.50%9/9/20219/9/202617,955 17,613 17,955 
18,526 18,955 
WINTER SERVICES OPERATIONS, LLC
Revolving Loan10
Business servicesL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%11/19/202111/19/2026556 469 469 
First LienL+7.00% (Floor 1.00%)/Q, Current Coupon 8.00%11/19/202111/19/202620,000 19,607 19,608 
Delayed Draw Term Loan10
L+7.00% (Floor 1.00%)11/19/202111/19/2026— (43)— 
20,033 20,077 
ZENFOLIO INC.
Revolving Loan10
Business servicesL+9.00% (Floor 1.00%)7/17/20177/17/2023— (5)— 
First LienL+9.00% (Floor 1.00%)/Q, Current Coupon 10.00%7/17/20177/17/202318,962 18,810 18,393 
18,805 18,393 
Total Non-control/Non-affiliate Investments (178.5% of net assets at fair value)$673,871 $691,229 
Affiliate Investments6
AIR CONDITIONING SPECIALIST, INC.13
Revolving Loan10
Consumer servicesL+7.25% (Floor 1.00%)11/9/202111/9/2026$— $(19)$— 
First LienL+7.25% (Floor 1.00%)/Q, Current Coupon 8.25%11/9/202111/9/20269,000 8,824 8,824 
500,000 Preferred Units9
11/9/2021— 500 500 
9,305 9,324 
CATBIRD NYC, LLC
Revolving Loan10
Consumer products & retailL+7.25% (Floor 1.00%)10/15/202110/15/2026— (77)— 
First LienL+7.25% (Floor 1.00%)/Q, Current Coupon 8.25%10/15/202110/15/202616,000 15,692 15,692 
1,000,000 Class A units10/15/2021— 1,000 1,000 
500,000 Class B units10
10/15/2021— 500 500 
17,115 17,192 
15

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
CENTRAL MEDICAL SUPPLY LLC13
Revolving Loan10
Healthcare servicesL+9.00% (Floor 1.75%)/Q, Current Coupon 10.75%5/22/20205/22/2025300 280 278 
First LienL+9.00% (Floor 1.75%)/Q, Current Coupon 10.75%5/22/20205/22/20257,500 7,391 6,953 
Delayed Draw Capex Term Loan10
L+9.00% (Floor 1.75%)/Q, Current Coupon 10.75%5/22/20205/22/2025100 80 93 
1,380,500 Preferred Units9
5/22/2020— 976 408 
8,727 7,732 
CHANDLER SIGNS, LLC13
1,500,000 units of Class A-1 common stock9
Business services1/4/2016— 1,500 924 
DELPHI BEHAVIORAL HEALTH GROUP, LLCFirst LienHealthcare servicesL+9.50% (Floor 1.00%)/S, Current Coupon 10.50%4/8/20204/7/20231,501 1,501 1,366 
First LienL+9.00% (Floor 1.00%)/S, Current Coupon 10.00%4/8/20204/7/20231,690 1,690 1,437 
Protective AdvanceL+11.50% PIK (Floor 1.00%)/Q, Current Coupon 12.50%8/31/20214/7/202373 73 62 
1,681.04 Common Units4/8/2020— 3,615 2,460 
6,879 5,325 
DYNAMIC COMMUNITIES, LLC13
Revolving Loan10
Business servicesL+8.50% (Floor 1.00%)7/17/20187/17/2023— (1)— 
First LienL+8.50% (Floor 1.00%)/Q, Current Coupon 9.50%7/17/20187/17/202311,361 11,275 10,236 
Senior subordinated debt25% PIK12/4/20201/16/2024611 611 611 
2,000,000 Preferred Units9
7/17/2018— 2,000 1,274 
13,885 12,121 
GRAMMATECH, INC.
Revolving Loan10
Software & IT servicesL+9.50% (Floor 2.00%)11/1/201911/1/2024— (25)— 
First LienL+9.50% (Floor 2.00%)/Q, Current Coupon 11.50%11/1/201911/1/202411,500 11,375 9,775 
1,000 Class A units11/1/2019— 1,000 712 
12,350 10,487 
16

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
ITA HOLDINGS GROUP, LLC13
Revolving Loan10
Transportation & logisticsL+8.50% (Floor 1.00%)2/14/20182/14/2023— (18)— 
First Lien - Term LoanL+7.50% (Floor 1.00%)/Q, Current Coupon 8.50%2/14/20182/14/202310,071 10,027 10,041 
First Lien - Term B LoanL+10.50% (Floor 1.00%)/Q, Current Coupon 11.50%6/5/20182/14/20235,036 5,003 5,061 
First Lien - PIK Note A10.00% PIK3/29/20192/14/20232,884 2,597 2,884 
First Lien - PIK Note B10.00% PIK3/29/20192/14/2023114 114 114 
Warrants (Expiration - March 29, 2029)9
3/29/2019— 538 3,604 
9.25% Class A Membership Interest9
2/14/2018— 1,500 3,476 
19,761 25,180 
LIGHTING RETROFIT INTERNATIONAL, LLC (DBA ENVOCORE)13
Revolving Loan10
Environmental services7.50%12/31/202112/31/2025456 456 456 
First Lien7.50%12/31/202112/31/20255,208 5,208 5,208 
Second Lien16
10.00% PIK12/31/202112/31/20265,208 5,208 3,125 
208,333.3333 Series A Preferred units9
12/31/2021— — — 
203,124.9999 Common units9
12/31/2021— — — 
10,872 8,789 
ROSELAND MANAGEMENT, LLC
Revolving Loan10
Healthcare servicesL+7.00% (Floor 2.00%)/Q, Current Coupon 9.00%11/9/201811/9/20231,175 1,162 1,175 
First LienL+7.00% (Floor 2.00%)/Q, Current Coupon 9.00%11/9/201811/9/202314,161 14,043 14,161 
16,084 Class A Units11/9/2018— 1,517 1,905 
16,722 17,241 
SIMR, LLC
First Lien16
Healthcare servicesL+17.00% (Floor 2.00%) PIK/M, Current Coupon 19.00%9/7/20189/7/202313,340 13,206 10,672 
9,374,510.2 Class B Common Units9/7/2018— 6,107 — 
1,357,354.96 Class W Units2/4/2021— — — 
19,313 10,672 
17

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
(Unaudited)
December 31, 2021
Portfolio Company1,18
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost12,17
Fair Value4
SONOBI, INC.13
500,000 Class A Common Units9
Media, marketing, & entertainment9/17/2020— 500 2,960 
Total Affiliate Investments (33.0% of net assets at fair value)$136,929 $127,947 
Control Investments7
I-45 SLF LLC9, 10, 11
80% LLC equity interestMulti-sector holdings10/20/2015— $76,000 $57,589 
Total Control Investments (14.9% of net assets at fair value)$76,000 $57,589 
TOTAL INVESTMENTS (226.4% of net assets at fair value)$886,800 $876,765 


1All debt investments are income-producing, unless otherwise noted. Equity investments are non-income producing, unless otherwise noted.
2All of the Company’s investments and the investments of SBIC I (as defined below), unless otherwise noted, are pledged as collateral for the Company’s senior secured credit facility or in support of the SBA-guaranteed debentures to be issued by Capital Southwest SBIC I, LP, our wholly-owned subsidiary that operates as a small business investment company ("SBIC I"), respectively.
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 investment, the Company has provided the spread over LIBOR or Prime and the current contractual interest rate in effect at December 31, 2021. 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, 2021, approximately 78.8% 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 178.5%.
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, 2021, approximately 14.6% of the Company’s investment assets were affiliate investments. The fair value of these investments as a percent of net assets is 33.0%.
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, 2021, approximately 6.6% of the Company’s investment assets were control investments. The fair value of these investments as a percent of net assets is 14.9%.
8The investment is structured as a first lien last out term loan.
18

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, 2021, approximately 12.4% of the Company's assets are non-qualifying assets.
10The investment has an unfunded commitment as of December 31, 2021. Refer to Note 10 - Commitments and Contingencies for further discussion.
11Income producing through dividends or distributions.
12As of December 31, 2021, the cumulative gross unrealized appreciation for U.S. federal income tax purposes is approximately $52.7 million; cumulative gross unrealized depreciation for federal income tax purposes is $50.5 million. Cumulative net unrealized appreciation is $2.2 million, based on a tax cost of $806.3 million.
13Investment is 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, 2021 represented 226.4% of the Company's net assets or 96.1% 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, 2021, 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.
18Equity ownership may be held in shares or units of a company that is either wholly owned by the portfolio company or under common control by the same parent company to the portfolio company.
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, 2021 is included in Note 13. Significant Subsidiaries.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
19

CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2021
Portfolio Company1
Type of Investment2
Industry
Current Interest Rate3
Acquisition Date14
MaturityPrincipal
Cost16
Fair Value4
Non-control/Non-affiliate Investments5
AAC NEW HOLDCO INC.First LienHealthcare services10.00%, 8.00% PIK12/11/20206/25/2025$7,981 $7,981 $7,941 
374,543 shares common stock12/11/2020— 1,785 1,785 
Warrants (Expiration - December 11, 2025)12/11/2020