SIGNIFICANT SUBSIDIARIES

6 Months Ended

Sep. 30, 2022

Investment Company [Abstract]

SIGNIFICANT SUBSIDIARIES

SIGNIFICANT SUBSIDIARIES

I-45 SLF LLC

In September 2015, we entered into a limited liability company agreement with Main Street Capital Corporation ("Main Street") to form I-45 SLF LLC (the "Initial I-45 LLC Agreement"). I-45 SLF LLC began investing in UMM syndicated senior secured loans during the quarter ended December 31, 2015. The initial equity capital commitment to I-45 SLF LLC totaled $85.0 million, consisting of $68.0 million from CSWC and $17.0 million from Main Street. On April 30, 2020, pursuant to the terms of the Initial I-45 LLC Agreement, each of CSWC and Main Street made an additional equity capital commitment of $12.8 million and $3.2 million, respectively, which resulted in a total equity capital commitment to I-45 SLF LLC of $80.8 million and $20.2 million, respectively.

On March 11, 2021, the Company and Main Street entered into the Second Amended and Restated Limited Liability Company Operating Agreement (the "Amendment"), which increased the current profits interest that is allocated to the Company on a pro rata basis from (a) 75.6% to (b) an amount equal to: (i) 76.2625% as of the date of the Amendment through the quarter ended March 31, 2021; (ii) 76.925% for quarter ended June 30, 2021; (iii) 77.5875% for the quarter ended September 30, 2021; and (iv) 78.25% for the quarter ended December 31, 2021 and periods thereafter.

On March 25, 2021, I-45 SLF LLC declared a return of capital dividend to its members in the amount of $10.0 million. As of September 30, 2022, total funded equity capital totaled $95.0 million, consisting of $76.0 million from CSWC and $19.0 million from Main Street. CSWC owns 80% of I-45 SLF LLC and has a current profits interest of 78.25%, while Main Street owns 20% and has a current profits interest of 21.75%.  I-45 SLF LLC's Board of Managers makes all investment and operational decisions for the fund, and consists of equal representation from CSWC and Main Street.

As of September 30, 2022 and March 31, 2022, I-45 SLF LLC had total assets of $176.4 million and $189.1 million, respectively. I-45 SLF LLC had approximately $168.6 million and $176.7 million of total investments at fair value as of September 30, 2022 and March 31, 2022, respectively. The portfolio companies in I-45 SLF LLC are in industries similar to those in which CSWC may invest directly. During the three months ended September 30, 2022, I-45 SLF LLC declared a total dividend of $2.6 million of which $2.0 million was paid to CSWC in October 2022.

Additionally, I-45 SLF LLC closed on a $75.0 million 5-year senior secured credit facility (the “I-45 credit facility”) in November 2015. The I-45 credit facility includes an accordion feature which will allow I-45 SLF LLC to achieve leverage of approximately 2x debt-to-equity. Borrowings under the I-45 credit facility are secured by all of the assets of I-45 SLF LLC and bear interest at a rate equal to LIBOR plus 2.5% per annum. During the year ended March 31, 2017, I-45 SLF LLC increased debt commitments outstanding by an additional $90.0 million by adding three additional lenders to the syndicate, bringing total debt commitments to $165.0 million. In July 2017, the I-45 credit facility was amended to extend the maturity to July 2022. Additionally, the amendment reduced the interest rate on borrowings to LIBOR plus 2.4% per annum. In November 2019, the I-45 credit facility was amended to extend the maturity to November 2024 and to reduce the interest rate on borrowings to LIBOR plus 2.25% per annum. On April 30, 2020, the I-45 credit facility was amended to permanently reduce the I-45 credit facility amount through a prepayment of $15.0 million and to change the minimum utilization requirements. In March 2021, the I-45 credit facility was amended to extend the maturity to March 25, 2026 and to reduce the interest rate on borrowings to LIBOR plus 2.15%. Under the I-45 credit facility, $110.0 million has been drawn as of September 30, 2022.

Below is certain summarized financial information for I-45 SLF LLC as of September 30, 2022 and March 31, 2022 and for the three and six months ended September 30, 2022 and 2021 (amounts in thousands):

	September 30, 2022		March 31, 2022
Selected Balance Sheet Information:
Investments, at fair value (cost $188,101 and $187,714)	$	168,599	$	176,704
Cash and cash equivalents	5,620		9,949
Accounts receivable	193		123
Deferred financing costs and other assets	1,037		1,518
Interest receivable	937		850
Total assets	$	176,386	$	189,144
Senior credit facility payable	$	110,000	$	114,500
Other liabilities	2,764		2,596
Total liabilities	$	112,764	$	117,096
Members’ equity	63,622		72,048
Total liabilities and members' equity	$	176,386	$	189,144

	Three Months Ended				Six Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Selected Statement of Operations Information:
Total revenues	$	4,292	$	3,026	$	7,569	$	6,148
Total expenses	(1,739)		(921)		(3,058)		(2,018)
Net investment income	2,553		2,105		4,511		4,130
Net unrealized depreciation	(1,060)		(1,261)		(8,491)		(1,198)
Net realized gains (losses)	13		(896)		71		173
Net increase (decrease) in members’ equity resulting from operations	$	1,506	$	(52)	$	(3,909)	$	3,105

Below is a summary of I-45 SLF LLC’s portfolio, followed by a listing of the individual loans in I-45 SLF LLC’s portfolio as of September 30, 2022 and March 31, 2022 (in thousands):

I-45 SLF LLC Loan Portfolio as of September 30, 2022

				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal		Cost		Fair Value2
AAC New Holdco Inc.	Healthcare services	First Lien	6/25/2025	18.00% PIK	$	2,045	$	2,045	$	2,004
		304,075 shares common stock	—	—	—		1,449		928
		Warrants (Expiration - December 11, 2025)	—	—	—		482		309
ADS Tactical, Inc.	Aerospace & defense	First Lien	3/19/2026	L+5.75% (Floor 1.00%)	6,226		6,129		5,755
American Teleconferencing Services, Ltd.3	Telecommunications	Revolving Loan	12/16/2022	P+5.50% (Floor 2.00%)	1,023		1,017		58
		First Lien	6/8/2023	P+5.50% (Floor 2.00%)	5,598		5,566		315
ATX Networks (Toronto) Corporation	Technology products & components	First Lien	9/1/2026	L+7.50%, (Floor 1.00%)	2,308		2,302		2,250
		Senior Subordinated Debt	9/1/2028	10.00% PIK	1,136		1,136		846
		196 Class A units	—	—	—		—		—
Burning Glass Intermediate Holding Company, Inc.	Software & IT services	Revolving Loan4	6/10/2028	L+5.00% (Floor 1.00%)	99		93		93
		First Lien	6/10/2028	L+5.00% (Floor 1.00%)	3,173		3,126		3,173
Corel Inc.	Software & IT services	First Lien	7/2/2026	L+5.00%	6,621		6,473		6,158
Emerald Technologies (U.S.) Acquisitionco, Inc.	Technology products & components	First Lien	12/29/2027	SOFR +6.25% (Floor 1.00%)	4,542		4,482		4,372
Evergreen AcqCo 1 LP	Consumer products & retail	First Lien	4/26/2028	L+5.50% (Floor 0.75%)	8,138		8,026		7,853
Evergreen North America Acquisitions, LLC	Industrial services	First Lien	8/13/2026	L+6.75% (Floor 1.00%)	6,706		6,597		6,706
Geo Parent Corporation	Building & infrastructure products	First Lien	12/19/2025	L+5.25%	6,805		6,774		6,668
Infogain Corporation	Software & IT services	First Lien	7/28/2028	SOFR+5.75% (Floor 1.00%)	4,760		4,697		4,674
InfoGroup Inc.	Software & IT services	First Lien	4/3/2023	L+5.00% (Floor 1.00%)	2,835		2,832		2,727

				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal	Cost	Fair Value2
Integro Parent Inc.	Business services	First Lien	5/8/2023	SOFR+12.50% PIK (Floor 1.00%)	381	381	347
Intermedia Holdings, Inc.	Software & IT services	First Lien	7/21/2025	L+6.00% (Floor 1.00%)	6,642	6,587	5,828
Inventus Power, Inc.	Technology products & components	First Lien	3/29/2024	SOFR+5.00% (Floor 1.00%)	6,895	6,859	6,826
INW Manufacturing, LLC	Food, agriculture, & beverage	First Lien	3/25/2027	L+5.75% (Floor 0.75%)	2,850	2,780	2,522
Isagenix International, LLC3	Consumer products & retail	First Lien	6/14/2025	L+7.75% (Floor 1.00%)	1,650	1,641	713
KORE Wireless Group Inc.	Telecommunications	First Lien	12/20/2024	L+5.50%	5,626	5,608	5,563
Lab Logistics, LLC	Healthcare services	First Lien	9/25/2023	SOFR+7.25% (Floor 1.00%)	10,099	10,033	10,099
Lash OpCo, LLC	Consumer products & retail	First Lien	3/18/2026	L+7.00% (Floor 1.00%)	6,144	6,016	6,008
Lift Brands, Inc.	Consumer services	Tranche A	6/29/2025	L+7.50% (Floor 1.00%)	2,489	2,489	2,415
		Tranche B	6/29/2025	9.50%	592	592	533
		Tranche C	6/29/2025	—	565	565	508
		1,051 shares common stock	—	—	—	749	553
Lightbox Intermediate, L.P.	Software & IT services	First Lien	5/9/2026	L+5.00%	6,912	6,860	6,670
LOGIX Holdings Company, LLC	Telecommunications	First Lien	12/23/2024	L+5.75% (Floor 1.00%)	4,443	4,428	4,055
Mills Fleet Farm Group LLC	Consumer products & retail	First Lien	10/24/2024	L+6.25% (Floor 1.00%)	4,491	4,454	4,401
National Credit Care	Consumer services	First Lien - Term Loan A	12/23/2026	L+6.50% (Floor 1.00%)	2,227	2,189	2,212
		First Lien - Term Loan B	12/23/2026	L+7.50% (Floor 1.00%)	2,227	2,188	2,212
NBG Acquisition, Inc.	Wholesale	First Lien	4/26/2024	L+5.50% (Floor 1.00%)	2,625	2,609	1,247
NinjaTrader, Inc.	Financial services	First Lien	12/18/2024	L+6.25% (Floor 1.00%)	5,000	4,923	5,000
NorthStar Group Services, Inc.	Environmental services	First Lien	11/12/2026	L+5.50% (Floor 1.00%)	2,923	2,910	2,860
Research Now Group, Inc.	Business services	First Lien	12/20/2024	L+5.50% (Floor 1.00%)	5,905	5,858	5,361
Retail Services WIS Corporation	Business services	First Lien	5/20/2025	L+7.75% (Floor 1.00%)	2,902	2,861	2,844

				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal	Cost		Fair Value2
SIB Holdings, LLC	Business services	First Lien	10/29/2026	L+6.25% (Floor 1.00%)	2,985	2,935		2,943
Stellant Midco, LLC	Aerospace & defense	First Lien	10/2/2028	SOFR+5.50% (Floor 0.75%)	2,277	2,257		2,175
Tacala, LLC	Consumer products & retail	First Lien	2/5/2027	L+3.50% (Floor 0.75%)	995	950		932
		Second Lien	2/4/2028	L+7.50% (Floor 0.75%)	6,000	5,955		5,520
TEAM Services Group, LLC	Healthcare services	First Lien	12/20/2027	L+5.00% (Floor 1.00%)	6,654	6,612		6,421
UniTek Global Services, Inc.	Telecommunications	First Lien	8/20/2024	SOFR+5.50%, 2.00% PIK (Floor 1.00%)	2,843	2,833		2,680
U.S. TelePacific Corp.	Telecommunications	First Lien	5/1/2026	SOFR+1.00%, 7.25% PIK (Floor 1.00%)	5,432	5,432		2,363
Veregy Consolidated, Inc.	Environmental services	First Lien	11/3/2027	L+6.00% (Floor 1.00%)	1,965	1,961		1,872
Vida Capital, Inc.	Financial services	First Lien	10/1/2026	L+6.00%	3,415	3,381		2,675
Wahoo Fitness Acquisition, LLC	Consumer products & retail	First Lien	8/14/2028	SOFR+5.75% (Floor 1.00%)	4,906	4,778		3,312
YS Garments, LLC	Consumer products & retail	First Lien	8/9/2024	L+5.50% (Floor 1.00%)	4,219	4,201		4,040
Total Investments						$	188,101	$	168,599

1Represents the interest rate as of September 30, 2022. All interest rates are payable in cash, unless otherwise noted. The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Prime (“P”) or Secured Overnight Financing Rate ("SOFR"), which reset daily, monthly, quarterly, or semiannually. For each investment, the Company has provided the spread over LIBOR, Prime, or SOFR in effect at September 30, 2022. Certain investments are subject to an interest rate floor.

2Represents the fair value determined utilizing a similar process as the Company in accordance with ASC 820. However, the determination of such fair value is determined by the Board of Managers of I-45 SLF LLC. It is not included in the Company’s Board of Directors’ valuation process described elsewhere herein.

3Investment is on non-accrual status as of September 30, 2022, meaning the Company has ceased to recognize interest income on the investment.

4The investment has approximately $0.3 million in an unfunded revolving loan commitment as of September 30, 2022.

I-45 SLF LLC Loan Portfolio as of March 31, 2022

				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal		Cost2		Fair Value3
AAC New Holdco Inc.	Healthcare services	First Lien	6/25/2025	10.00%, 8.00% PIK	$	1,899	$	1,899	$	1,833
		304,075 shares common stock	—	—	—		1,449		1,449
		Warrants (Expiration - December 11, 2025)	—	—	—		482		482
ADS Tactical, Inc.	Aerospace & defense	First Lien	3/19/2026	L+5.75% (Floor 1.00%)	6,394		6,283		6,133
American Teleconferencing Services, Ltd.4	Telecommunications	Revolving Loan	6/30/2022	P+5.50%	1,027		1,021		64
		First Lien	6/8/2023	P+5.50%	5,598		5,566		308
ATX Networks (Toronto) Corporation	Technology products & components	First Lien	9/1/2026	L+7.50% (Floor 1.00%)	2,617		2,610		2,499
		Senior Subordinated Debt	9/1/2028	10.00% PIK	1,081		1,081		729
		196 Class A units	—	—	—		—		—
Burning Glass Intermediate Holding Company, Inc.	Software & IT services	Revolving Loan5	6/10/2028	L+5.00% (Floor 1.00%)	74		67		67
		First Lien	6/10/2028	L+5.00% (Floor 1.00%)	3,189		3,140		3,189
Corel, Inc.	Software & IT services	First Lien	7/2/2026	L+5.00%	6,803		6,650		6,805
Emerald Technologies (U.S.) Acquisitionco, Inc.	Technology products & components	First Lien	12/29/2027	SOFR +6.25% (Floor 1.00%)	3,125		3,063		3,078
Evergreen AcqCo 1 LP	Consumer products & retail	First Lien	4/26/2028	L+5.50% (Floor 0.75%)	4,179		4,142		4,158
Evergreen North America Acquisitions, LLC	Industrial services	First Lien	8/13/2026	L+6.75% (Floor 1.00%)	6,740		6,623		6,740
Geo Parent Corporation	Building & infrastructure products	First Lien	12/19/2025	L+5.25%	6,840		6,809		6,806
GS Operating, LLC	Distribution	First Lien	1/3/2028	SOFR +6.00% (Floor 0.75%)	4,988		4,891		4,988
Infogain Corporation	Software & IT services	First Lien	7/28/2028	L+5.75% (Floor 1.00%)	4,784		4,719		4,769
InfoGroup Inc.	Software & IT services	First Lien	4/3/2023	L+5.00% (Floor 1.00%)	2,850		2,845		2,704
Integro Parent Inc.	Business services	First Lien	10/28/2022	L+5.75% (Floor 1.00%)	3,217		3,209		3,043

				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal	Cost2	Fair Value3
Intermedia Holdings, Inc.	Software & IT services	First Lien	7/21/2025	L+6.00% (Floor 1.00%)	5,677	5,659	5,638
Inventus Power, Inc.	Technology products & components	First Lien	3/29/2024	SOFR +5.00% (Floor 1.00%)	6,930	6,884	6,791
INW Manufacturing, LLC	Food, agriculture, & beverage	First Lien	3/25/2027	L+5.75% (Floor 0.75%)	2,925	2,867	2,867
Isagenix International, LLC	Consumer products & retail	First Lien	6/14/2025	L+5.75% (Floor 1.00%)	1,685	1,677	1,088
KORE Wireless Group Inc.	Telecommunications	First Lien	12/20/2024	L+5.50%	4,658	4,639	4,640
Lab Logistics, LLC	Healthcare services	First Lien	9/25/2023	L+7.25% (Floor 1.00%)	6,242	6,213	6,242
Lash OpCo, LLC	Consumer products & retail	First Lien	3/18/2026	L+7.00% (Floor 1.00%)	4,988	4,881	4,878
		Delayed Draw Term Loan6	3/18/2026	L+7.00% (Floor 1.00%)	1,187	1,152	1,161
Lift Brands, Inc.	Consumer services	Tranche A	6/29/2025	L+7.50% (Floor 1.00%)	2,502	2,502	2,252
		Tranche B	6/29/2025	9.50% PIK	583	583	437
		Tranche C	6/29/2025	—	565	564	423
		1,051 shares common stock	—	—	—	749	749
Lightbox Intermediate, L.P.	Software & IT services	First Lien	5/9/2026	L+5.00%	4,948	4,914	4,874
LOGIX Holdings Company, LLC	Telecommunications	First Lien	12/23/2024	L+5.75% (Floor 1.00%)	5,826	5,807	5,491
Mills Fleet Farm Group LLC	Consumer products & retail	First Lien	10/24/2024	L+6.25% (Floor 1.00%)	4,623	4,584	4,623
National Credit Care, LLC	Consumer services	First Lien - Term Loan A	12/23/2026	L+6.50% (Floor 1.00%)	2,500	2,453	2,483
		First Lien - Term Loan B	12/23/2026	L+7.50% (Floor 1.00%)	2,500	2,453	2,483
NBG Acquisition, Inc.	Wholesale	First Lien	4/26/2024	L+5.50% (Floor 1.00%)	2,663	2,647	1,807
NinjaTrader, Inc.	Financial services	First Lien	12/18/2024	L+6.25% (Floor 1.00%)	5,000	4,908	5,000
NorthStar Group Services, Inc.	Environmental services	First Lien	11/9/2026	L+5.50% (Floor 1.00%)	2,961	2,948	2,950
Research Now Group, Inc.	Business services	First Lien	12/20/2024	L+5.50% (Floor 1.00%)	4,936	4,936	4,861
Retail Services WIS Corporation	Business services	First Lien	5/20/2025	L+7.75% (Floor 1.00%)	2,959	2,912	2,914

				Current
		Investment	Maturity	Interest
Portfolio Company	Industry	Type	Date	Rate1	Principal	Cost2		Fair Value3
SIB Holdings, LLC	Business services	First Lien	10/29/2026	L+6.00% (Floor 1.00%)	3,000	2,945		2,958
Stellant Midco, LLC	Aerospace & defense	First Lien	10/2/2028	L+5.50% (Floor 0.75%)	2,289	2,267		2,254
Tacala, LLC	Consumer products & retail	Second Lien	2/7/2028	L+7.50% (Floor 0.75%)	5,000	4,991		4,944
TEAM Services Group, LLC	Healthcare services	First Lien	12/20/2027	L+5.00% (Floor 1.00%)	6,687	6,644		6,637
TestEquity, LLC	Capital equipment	First Lien	4/28/2022	L+6.25% (Floor 1.00%)	3,805	3,804		3,805
		First Lien - Term Loan B	4/28/2022	L+6.25% (Floor 1.00%)	942	942		942
UniTek Global Services, Inc.	Telecommunications	First Lien	8/20/2024	L+5.50%, 2.00% PIK (Floor 1.00%)	2,814	2,802		2,627
U.S. TelePacific Corp.	Telecommunications	First Lien	5/1/2026	L+1.00%, 7.25% PIK (Floor 1.00%)	5,239	5,239		3,714
Veregy Consolidated, Inc.	Environmental services	First Lien	11/3/2027	L+6.00% (Floor 1.00%)	1,975	1,970		1,936
Vida Capital, Inc.	Financial services	First Lien	10/1/2026	L+6.00%	3,565	3,531		3,283
Wahoo Fitness Acquisition, LLC	Consumer products & retail	First Lien	8/14/2028	L+5.75% (Floor 1.00%)	4,969	4,833		4,869
YS Garments, LLC	Consumer products & retail	First Lien	8/9/2024	L+5.50% (Floor 1.00%)	4,282	4,265		4,239
Total Investments						$	187,714	$	176,704

1Represents the interest rate as of March 31, 2022. All interest rates are payable in cash, unless otherwise noted. The majority of investments bear interest at a rate that may be determined by reference to London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate ("SOFR") or Prime (“Prime”) which reset daily, monthly, quarterly, or semiannually.  For each, the Company has provided the spread over LIBOR, SOFR or Prime in effect at March 31, 2022. Certain investments are subject to an interest rate floor. Certain investments, as noted, accrue payment-in-kind ("PIK") interest.

2Represents amortized cost.

3Represents the fair value determined utilizing a similar process as the Company in accordance with ASC 820. However, the determination of such fair value is determined by the Board of Managers of I-45 SLF LLC. It is not included in the Company’s Board of Directors’ valuation process described elsewhere herein.

4Investment is on non-accrual status as of March 31, 2022, meaning the Company has ceased to recognize interest income on the investment.

5The investment has approximately $0.3 million in an unfunded revolving loan commitment as of March 31, 2022.

6The investment has approximately $0.8 million in an unfunded delayed draw term loan commitment as of March 31, 2022.