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"Our performance remained resilient amid a persistently tight credit backdrop," said Michael C. Forman, Chairman and Chief Executive Officer of FSIC. "In the face of challenging market conditions, we will continue to be disciplined investors to ensure we deliver strong risk-adjusted performance for our stockholders." Declaration of Regular Distribution for Second Quarter 2017 FSIC's board of directors has declared a regular cash distribution for the second quarter of $0.22275 per share, which will be paid on or about July 5, 2017 to stockholders of record as of the close of business on June 21, 2017. Leverage and Liquidity as of March 31, 2017 FSIC will host a conference call at 10:00 a.m. (Eastern Time) on Thursday, May 11, 2017, to discuss its first quarter financial results. All interested parties are welcome to participate. You can access the conference call by dialing (877) 443-2408 and using the conference ID 4086487 approximately 10 minutes prior to the call. The conference call will also be webcast, which can be accessed from the Investor Relations section of FSIC's website at www.fsinvestmentcorp.com under Presentations and Reports. A replay of the call will be available for a period of 30 days following the call by visiting the Investor Relations section of FSIC's website at www.fsinvestmentcorp.com under Presentations and Reports. An investor presentation of financial information will be made available prior to the call in the Investor Relations section of FSIC's website at www.fsinvestmentcorp.com under Presentations and Reports. FS Investment Corporation (NYSE: FSIC) is a publicly traded business development company ("BDC") focused on providing customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options. FSIC is advised by FB Income Advisor, LLC, an affiliate of FS Investments, and is sub-advised by GSO / Blackstone Debt Funds Management LLC, an affiliate of GSO Capital Partners ("GSO"). GSO, with approximately $93.1 billion in assets under management as of March 31, 2017, is the credit platform of Blackstone, one of the world's leading managers of alternative investments. For more information, please visit www.fsinvestmentcorp.com. FS Investments is a leading asset manager dedicated to helping individuals, financial professionals and institutions design better portfolios. The firm provides access to alternative sources of income and growth through funds managed in partnership with top institutional investment advisers. It focuses on setting industry standards for investor protection, education and transparency. FS Investments is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages seven funds with over $20 billion in assets under management as of March 31, 2017. This announcement may contain certain forward-looking statements, including statements with regard to future events or the future performance or operations of FSIC. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy, risks associated with possible disruption in FSIC's operations or the economy generally due to terrorism or natural disasters, future changes in laws or regulations and conditions in FSIC's operating area, and the price at which shares of FSIC's common stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSIC makes with the SEC. FSIC undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The press release above contains summaries of certain financial and statistical information about FSIC. The information contained in this press release is summary information that is intended to be considered in the context of FSIC's SEC filings and other public announcements that FSIC may make, by press release or otherwise, from time to time. FSIC undertakes no duty or obligation to update or revise the information contained in this press release. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. Investors should not view the past performance of FSIC, or information about the market, as indicative of FSIC's future results. Individual investors and endowments may have different investment horizons, liquidity needs and risk tolerances. In addition, fees that may be incurred by an investor in a fund sponsored by FS Investments may be different than fees incurred by an endowment investing in similar assets as those in which the funds invest. The information in this press release is summary information only and should be read in conjunction with FSIC's quarterly report on Form 10-Q for the quarterly period ended March 31, 2017, which FSIC filed with the U.S. Securities and Exchange Commission (the "SEC") on May 10, 2017, as well as FSIC's other reports filed with the SEC. A copy of FSIC's quarterly report on Form 10-Q for the quarterly period ended March 31, 2017 and FSIC's other reports filed with the SEC can be found on FSIC's website at www.fsinvestmentcorp.com and the SEC's website at www.sec.gov. The determination of the tax attributes of FSIC's distributions is made annually as of the end of its fiscal year based upon its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. FSIC intends to update stockholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary income. The actual tax characteristics of distributions to stockholders will be reported to stockholders annually on Form 1099-DIV. The timing and amount of any future distributions on FSIC's shares of common stock are subject to applicable legal restrictions and the sole discretion of its board of directors. There can be no assurance as to the amount or timing of any such future distributions. FSIC may fund its cash distributions to stockholders from any sources of funds legally available to it, including proceeds from the sale of shares of FSIC's common stock, borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets and dividends or other distributions paid to it on account of preferred and common equity investments in portfolio companies. FSIC has not established limits on the amount of funds it may use from available sources to make distributions. There can be no assurance that FSIC will be able to pay distributions at a specific rate or at all. This press release contains certain financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). FSIC uses these non-GAAP financial measures internally in analyzing financial results and believes that the use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing results and trends and in comparing FSIC's financial results with other BDCs. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures, and should be read only in conjunction with FSIC's consolidated financial statements prepared in accordance with GAAP. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fsic-reports-first-quarter-2017-financial-results-and-declares-regular-distribution-for-second-quarter-300455520.html


News Article | May 10, 2017
Site: globenewswire.com

DALLAS, May 10, 2017 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“CSWC,” “Capital Southwest” or the “Company”) announced today that the Chairman of the Board, Joseph B. Armes, has informed the Company’s Board of Directors (the “Board”) of his decision not to stand for re-election at the Annual Meeting of Shareholders in August 2017, in order to devote additional time and attention to his duties at CSW Industrials, Inc. (“CSWI”) (NASDAQ:CSWI).  Mr. Armes has been Chairman of the Board since January 2014 and served as the Company’s President and Chief Executive Officer from July 2013 through September 2015, when the Company completed the spinoff of CSWI.  Upon completion of the spinoff, Mr. Armes became Chairman and Chief Executive Officer of CSWI and Bowen Diehl, then Chief Investment Officer of CSWC, was appointed President and Chief Executive Officer of CSWC. “When I joined Capital Southwest in 2013, I was hired to be a catalyst for change, and I was convinced that we had the tremendous opportunity to unlock significant shareholder value and reposition the firm to begin investing again,” said Mr. Armes.  “We began by recruiting extraordinary board members, including David Brooks and Jack Furst, two gentlemen whom I have known and respected for over 20 years and who have brought significant strategic wisdom to the board.  Then, upon recruiting Bowen Diehl as Chief Investment Officer to join me in this effort, we began a transformation of Capital Southwest that unlocked significant shareholder value, creating two public companies, each with strategies appropriate for their respective structures.  I am proud of our accomplishments and grateful to the employees of Capital Southwest for their diligence and to the Capital Southwest Board for their support as we executed on our strategic vision.  I couldn’t be more optimistic about Capital Southwest’s strategy and prospects going forward as a middle market lender, led by Bowen and his team.” The Board plans to appoint current Director David R. Brooks, Founder, Chairman and Chief Executive Officer of Independent Bank Group, Inc. (NASDAQ:IBTX), non-executive Chairman of the Board of Capital Southwest at the 2017 Annual Meeting of Shareholders, which is expected to occur August 2, 2017.  Mr. Brooks has served on the Board since 2014 and is currently Chairman of the Audit Committee.  The Board also plans to appoint current Director Jack D. Furst, founder of Oak Stream Investors and former partner at Hicks, Muse, Tate & Furst, Inc., Chairman of the Audit Committee to succeed Mr. Brooks in that capacity. “I am thrilled with the prospect of serving as Chairman of Capital Southwest’s Board of Directors,” said Mr. Brooks.  “Joe did a tremendous job setting the vision and leading an extraordinary transformation of Capital Southwest that he should be very proud of.  Bowen has extensive middle market investing experience and has proven to be a great leader as he built an impressive team and designed and set in motion our middle market investment strategy.  Our senior management team worked together for over a decade at their prior firm, bringing to Capital Southwest extensive knowledge of all aspects of operating and financing a BDC through the economic cycle.” Effective as of the Company’s 2017 Annual Stockholder Meeting, the number of seats on Capital Southwest’s Board will be reduced from seven to six. “We are all grateful to Joe for his leadership and service over the past several years,” said Mr. Diehl.  “Personally, I have greatly appreciated his mentorship and friendship, which I look forward to continuing in the future.  I am excited about the prospect of working more closely with David and for all of us to benefit from his extensive wisdom and knowledge gained from delivering significant value for public shareholders by founding and building a major player in the regional banking industry.” Capital Southwest Corporation (Nasdaq:CSWC) is a Dallas, Texas-based publicly traded Business Development Company, with approximately $285 million in net assets as of December 31, 2016. Capital Southwest is a credit investment firm focused on supporting the acquisition and growth of middle market businesses with $5 to $20 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time. This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "plan," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include, but are not limited to, risks related to the outcome of the election at the 2017 Annual Meeting of Shareholders. Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2016 and subsequent filings with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by law, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.


News Article | May 10, 2017
Site: globenewswire.com

DALLAS, May 10, 2017 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“CSWC,” “Capital Southwest” or the “Company”) announced today that the Chairman of the Board, Joseph B. Armes, has informed the Company’s Board of Directors (the “Board”) of his decision not to stand for re-election at the Annual Meeting of Shareholders in August 2017, in order to devote additional time and attention to his duties at CSW Industrials, Inc. (“CSWI”) (NASDAQ:CSWI).  Mr. Armes has been Chairman of the Board since January 2014 and served as the Company’s President and Chief Executive Officer from July 2013 through September 2015, when the Company completed the spinoff of CSWI.  Upon completion of the spinoff, Mr. Armes became Chairman and Chief Executive Officer of CSWI and Bowen Diehl, then Chief Investment Officer of CSWC, was appointed President and Chief Executive Officer of CSWC. “When I joined Capital Southwest in 2013, I was hired to be a catalyst for change, and I was convinced that we had the tremendous opportunity to unlock significant shareholder value and reposition the firm to begin investing again,” said Mr. Armes.  “We began by recruiting extraordinary board members, including David Brooks and Jack Furst, two gentlemen whom I have known and respected for over 20 years and who have brought significant strategic wisdom to the board.  Then, upon recruiting Bowen Diehl as Chief Investment Officer to join me in this effort, we began a transformation of Capital Southwest that unlocked significant shareholder value, creating two public companies, each with strategies appropriate for their respective structures.  I am proud of our accomplishments and grateful to the employees of Capital Southwest for their diligence and to the Capital Southwest Board for their support as we executed on our strategic vision.  I couldn’t be more optimistic about Capital Southwest’s strategy and prospects going forward as a middle market lender, led by Bowen and his team.” The Board plans to appoint current Director David R. Brooks, Founder, Chairman and Chief Executive Officer of Independent Bank Group, Inc. (NASDAQ:IBTX), non-executive Chairman of the Board of Capital Southwest at the 2017 Annual Meeting of Shareholders, which is expected to occur August 2, 2017.  Mr. Brooks has served on the Board since 2014 and is currently Chairman of the Audit Committee.  The Board also plans to appoint current Director Jack D. Furst, founder of Oak Stream Investors and former partner at Hicks, Muse, Tate & Furst, Inc., Chairman of the Audit Committee to succeed Mr. Brooks in that capacity. “I am thrilled with the prospect of serving as Chairman of Capital Southwest’s Board of Directors,” said Mr. Brooks.  “Joe did a tremendous job setting the vision and leading an extraordinary transformation of Capital Southwest that he should be very proud of.  Bowen has extensive middle market investing experience and has proven to be a great leader as he built an impressive team and designed and set in motion our middle market investment strategy.  Our senior management team worked together for over a decade at their prior firm, bringing to Capital Southwest extensive knowledge of all aspects of operating and financing a BDC through the economic cycle.” Effective as of the Company’s 2017 Annual Stockholder Meeting, the number of seats on Capital Southwest’s Board will be reduced from seven to six. “We are all grateful to Joe for his leadership and service over the past several years,” said Mr. Diehl.  “Personally, I have greatly appreciated his mentorship and friendship, which I look forward to continuing in the future.  I am excited about the prospect of working more closely with David and for all of us to benefit from his extensive wisdom and knowledge gained from delivering significant value for public shareholders by founding and building a major player in the regional banking industry.” Capital Southwest Corporation (Nasdaq:CSWC) is a Dallas, Texas-based publicly traded Business Development Company, with approximately $285 million in net assets as of December 31, 2016. Capital Southwest is a credit investment firm focused on supporting the acquisition and growth of middle market businesses with $5 to $20 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time. This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "plan," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include, but are not limited to, risks related to the outcome of the election at the 2017 Annual Meeting of Shareholders. Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2016 and subsequent filings with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by law, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.


Results of data analysis and application development will be presented at the AQC 2017 conference in June PALO ALTO, CA--(Marketwired - May 12, 2017) -  D-Wave Systems Inc., the leader in quantum computing systems and software, and Recruit Communications Co., Ltd. of Japan today announced a collaboration to apply quantum computing to marketing, advertising, and communications optimization. Together with D-Wave, Recruit Communications is now working on research and system development for the practical utilization of quantum computers in a set of marketing and web applications. Recruit Communications is responsible for marketing and communications for the Recruit Group, from customer acquisition solutions to Web marketing and media creation and promotion. An important area of focus for Recruit Communications is the research and development of marketing technology, such as optimizing the distribution of advertising to maximize marketing effectiveness. "Our joint effort with Recruit Communications is the latest example of a project using D-Wave's quantum computer to find a new approach to an important real-world application," said Robert "Bo" Ewald, president of D-Wave International. "Recruit Communications brings deep expertise in marketing and communications to this effort and we look forward to seeing positive results from this innovative work." Recruit Communications' work includes developing a theory and implementing a program for a method of quantum annealing data analysis. According to Recruit Communications, "By studying the application of this method to real data, we are making progress in the further optimization of marketing and communications." Recruit Communications is currently working on multiple research projects, including research to optimize the efficiency of matching advertisements to customers in the web advertising field, and research aimed at improving the accuracy of machine learning methods as typified by recommendation systems. The results of this research will be published at AQC2017 (http://www.smapip.is.tohoku.ac.jp/~aqc2017/), to be held in Tokyo over four days from June 26th to June 29th. About D-Wave Systems Inc. D-Wave is the leader in the development and delivery of quantum computing systems and software, and the world's only commercial supplier of quantum computers. Our mission is to unlock the power of quantum computing for the world. We believe that quantum computing will enable solutions to the most challenging national defense, scientific, technical, and commercial problems. D-Wave's systems are being used by some of the world's most advanced organizations, including Lockheed Martin, Google, NASA Ames, USRA, USC, and Los Alamos National Laboratory. With headquarters near Vancouver, Canada, D-Wave's U.S. operations are based in Palo Alto, CA and Hanover, MD. D-Wave has a blue-chip investor base including Goldman Sachs, Bezos Expeditions, DFJ, In-Q-Tel, BDC Capital, Growthworks, 180 Degree Capital Corp., International Investment and Underwriting, and Kensington Partners Limited. For more information, visit: www.dwavesys.com. About Recruit Communications Co., Ltd. Recruit Communications provides a wide range of solutions for all business categories covered by the Recruit Group including HR, housing, bridal, higher education, and lifestyle information. For our clients, we provide IT-based web marketing services as well as communication and product production services that help these businesses attract customers. For products and services offered by the Recruit Group, we provide solutions that expand contact with our users through advertising and distribution. Additionally, our CS services help build stronger relationships with users, providing thorough and complete support for marketing communication activities that connect clients with users. We are made up of a group of professionals from a wide variety of specialties including planners, creators, marketers, and engineers. Our aim is to deliver the information and services offered by the Recruit Group to more users while also creating many new chances to "Opportunities for Life." As communication specialists, we are committed to further growth.


News Article | May 10, 2017
Site: globenewswire.com

NEW YORK, May 10, 2017 (GLOBE NEWSWIRE) -- CM Finance Inc (NASDAQ:CMFN) (“CMFN” or “the Company”) announced its financial results for its fiscal third quarter ended March 31, 2017.  Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said “We are pleased with our ability to invest money during the quarter, with net investments of $21 million. We also had a favorable realization of our investment in Land Holdings, which repaid our loan at a premium.  We anticipate that unscheduled repayments will continue in our portfolio, as they have for many of our BDC peers.  Our pipeline of primary and secondary market opportunities is strong and we expect to continue to deploy our capital into a variety of senior secured opportunities.” On May 2, 2017, the Company’s Board of Directors declared a distribution for the quarter ending June 30, 2017 of $0.25 per share, payable on July 6, 2017, to shareholders of record as of June 16, 2017. This represents a 9.7% yield on our $10.30 share price as of the close on May 9. Portfolio and Investment Activities During the quarter, we made investments in seven companies, including three new portfolio companies.  These seven investments totaled $32.2mm, at cost, and were made at a weighted average yield of 10.54%.  We also realized $11.2mm of repayments, sales and amortization, primarily the repayment of our loan to Land Holdings.  Realized and unrealized gains accounted for an increase in our net investments of approximately $2.6mm, or $0.19 per share.  The total net increase in net assets resulting from operations for the quarter was $6.0mm, or $0.44 per share. As of March 31, 2017, our investment portfolio consisted of investments in 21 portfolio companies, of which 50.4% were first lien investments and 49.2% were second lien investments.  Our debt portfolio consisted of 100.0% floating rate investments.  As of March 31, 2017, we had one loan on non-accrual status representing 2.8% of our portfolio at fair value. Capital Resources As of March 31, 2017, we had $5.5mm in cash, $16.7mm in restricted cash and $35.7mm of capacity under our revolving credit facility with Citibank. Subsequent Events Subsequent to quarter end, the Company invested $15.8mm in two new portfolio companies and received $25.4mm in repayments and sales proceeds. The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940.  The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50mm and earnings before interest, taxes, depreciation and amortization of at least $15mm. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about CM Finance Inc, please visit www.cmfn-inc.com. Statements included herein may contain “forward-looking statements,” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.


News Article | May 10, 2017
Site: globenewswire.com

NEW YORK, May 10, 2017 (GLOBE NEWSWIRE) -- CM Finance Inc (NASDAQ:CMFN) (“CMFN” or “the Company”) announced its financial results for its fiscal third quarter ended March 31, 2017.  Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said “We are pleased with our ability to invest money during the quarter, with net investments of $21 million. We also had a favorable realization of our investment in Land Holdings, which repaid our loan at a premium.  We anticipate that unscheduled repayments will continue in our portfolio, as they have for many of our BDC peers.  Our pipeline of primary and secondary market opportunities is strong and we expect to continue to deploy our capital into a variety of senior secured opportunities.” On May 2, 2017, the Company’s Board of Directors declared a distribution for the quarter ending June 30, 2017 of $0.25 per share, payable on July 6, 2017, to shareholders of record as of June 16, 2017. This represents a 9.7% yield on our $10.30 share price as of the close on May 9. Portfolio and Investment Activities During the quarter, we made investments in seven companies, including three new portfolio companies.  These seven investments totaled $32.2mm, at cost, and were made at a weighted average yield of 10.54%.  We also realized $11.2mm of repayments, sales and amortization, primarily the repayment of our loan to Land Holdings.  Realized and unrealized gains accounted for an increase in our net investments of approximately $2.6mm, or $0.19 per share.  The total net increase in net assets resulting from operations for the quarter was $6.0mm, or $0.44 per share. As of March 31, 2017, our investment portfolio consisted of investments in 21 portfolio companies, of which 50.4% were first lien investments and 49.2% were second lien investments.  Our debt portfolio consisted of 100.0% floating rate investments.  As of March 31, 2017, we had one loan on non-accrual status representing 2.8% of our portfolio at fair value. Capital Resources As of March 31, 2017, we had $5.5mm in cash, $16.7mm in restricted cash and $35.7mm of capacity under our revolving credit facility with Citibank. Subsequent Events Subsequent to quarter end, the Company invested $15.8mm in two new portfolio companies and received $25.4mm in repayments and sales proceeds. The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940.  The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50mm and earnings before interest, taxes, depreciation and amortization of at least $15mm. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about CM Finance Inc, please visit www.cmfn-inc.com. Statements included herein may contain “forward-looking statements,” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.


News Article | May 10, 2017
Site: globenewswire.com

NEW YORK, May 10, 2017 (GLOBE NEWSWIRE) -- CM Finance Inc (NASDAQ:CMFN) (“CMFN” or “the Company”) announced its financial results for its fiscal third quarter ended March 31, 2017.  Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said “We are pleased with our ability to invest money during the quarter, with net investments of $21 million. We also had a favorable realization of our investment in Land Holdings, which repaid our loan at a premium.  We anticipate that unscheduled repayments will continue in our portfolio, as they have for many of our BDC peers.  Our pipeline of primary and secondary market opportunities is strong and we expect to continue to deploy our capital into a variety of senior secured opportunities.” On May 2, 2017, the Company’s Board of Directors declared a distribution for the quarter ending June 30, 2017 of $0.25 per share, payable on July 6, 2017, to shareholders of record as of June 16, 2017. This represents a 9.7% yield on our $10.30 share price as of the close on May 9. Portfolio and Investment Activities During the quarter, we made investments in seven companies, including three new portfolio companies.  These seven investments totaled $32.2mm, at cost, and were made at a weighted average yield of 10.54%.  We also realized $11.2mm of repayments, sales and amortization, primarily the repayment of our loan to Land Holdings.  Realized and unrealized gains accounted for an increase in our net investments of approximately $2.6mm, or $0.19 per share.  The total net increase in net assets resulting from operations for the quarter was $6.0mm, or $0.44 per share. As of March 31, 2017, our investment portfolio consisted of investments in 21 portfolio companies, of which 50.4% were first lien investments and 49.2% were second lien investments.  Our debt portfolio consisted of 100.0% floating rate investments.  As of March 31, 2017, we had one loan on non-accrual status representing 2.8% of our portfolio at fair value. Capital Resources As of March 31, 2017, we had $5.5mm in cash, $16.7mm in restricted cash and $35.7mm of capacity under our revolving credit facility with Citibank. Subsequent Events Subsequent to quarter end, the Company invested $15.8mm in two new portfolio companies and received $25.4mm in repayments and sales proceeds. The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940.  The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50mm and earnings before interest, taxes, depreciation and amortization of at least $15mm. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about CM Finance Inc, please visit www.cmfn-inc.com. Statements included herein may contain “forward-looking statements,” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.


News Article | May 10, 2017
Site: globenewswire.com

NEW YORK, May 10, 2017 (GLOBE NEWSWIRE) -- CM Finance Inc (NASDAQ:CMFN) (“CMFN” or “the Company”) announced its financial results for its fiscal third quarter ended March 31, 2017.  Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said “We are pleased with our ability to invest money during the quarter, with net investments of $21 million. We also had a favorable realization of our investment in Land Holdings, which repaid our loan at a premium.  We anticipate that unscheduled repayments will continue in our portfolio, as they have for many of our BDC peers.  Our pipeline of primary and secondary market opportunities is strong and we expect to continue to deploy our capital into a variety of senior secured opportunities.” On May 2, 2017, the Company’s Board of Directors declared a distribution for the quarter ending June 30, 2017 of $0.25 per share, payable on July 6, 2017, to shareholders of record as of June 16, 2017. This represents a 9.7% yield on our $10.30 share price as of the close on May 9. Portfolio and Investment Activities During the quarter, we made investments in seven companies, including three new portfolio companies.  These seven investments totaled $32.2mm, at cost, and were made at a weighted average yield of 10.54%.  We also realized $11.2mm of repayments, sales and amortization, primarily the repayment of our loan to Land Holdings.  Realized and unrealized gains accounted for an increase in our net investments of approximately $2.6mm, or $0.19 per share.  The total net increase in net assets resulting from operations for the quarter was $6.0mm, or $0.44 per share. As of March 31, 2017, our investment portfolio consisted of investments in 21 portfolio companies, of which 50.4% were first lien investments and 49.2% were second lien investments.  Our debt portfolio consisted of 100.0% floating rate investments.  As of March 31, 2017, we had one loan on non-accrual status representing 2.8% of our portfolio at fair value. Capital Resources As of March 31, 2017, we had $5.5mm in cash, $16.7mm in restricted cash and $35.7mm of capacity under our revolving credit facility with Citibank. Subsequent Events Subsequent to quarter end, the Company invested $15.8mm in two new portfolio companies and received $25.4mm in repayments and sales proceeds. The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940.  The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50mm and earnings before interest, taxes, depreciation and amortization of at least $15mm. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about CM Finance Inc, please visit www.cmfn-inc.com. Statements included herein may contain “forward-looking statements,” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.


NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NYSE:NMFC) (the "Company," "we," "us" or "our") today announced its financial results for the quarter ended March 31, 2017 and reported first quarter net investment income and adjusted net investment income1 of $0.34 per weighted average share. At March 31, 2017, net asset value (“NAV”) per share was $13.56, an increase of $0.10 per share from December 31, 2016. The Company also announced that its board of directors declared a second quarter distribution of $0.34 per share, which will be payable on June 30, 2017 to holders of record as of June 16, 2017. We believe that the strength of the Company’s unique investment strategy – which focuses on acyclical “defensive growth” companies that are well researched by New Mountain Capital, L.L.C. (“New Mountain”), a leading alternative investment firm, is underscored by continued stable credit performance. The Company has had only seven portfolio companies, representing approximately $112 million of the cost of all investments made since inception in October 2008, or approximately 2.4% of $4.6 billion, go on non-accrual. Robert Hamwee, CEO, commented: “ The first quarter represented another stable quarter of performance for NMFC. We originated $349 million of investments, maintained a stable portfolio yield, and placed no new investments on non-accrual. Additionally, we anticipate an active second quarter of originations, allowing us to remain fully invested after our recent equity raise.” “ As managers and as significant stockholders personally, we are pleased with the completion of another successful quarter, where we maintained our dividend and our book value continued to rise,” added Steven B. Klinsky, NMFC Chairman. “ We believe our strategy of focusing on acyclical “defensive growth” industries and on companies that we know well continues to prove a successful strategy and preserves stockholder value.” As of March 31, 2017, the Company’s NAV was approximately $946.7 million and its portfolio had a fair value of approximately $1,815.3 million in 78 portfolio companies, with a weighted average Yield to Maturity at Cost3 of approximately 11.1%. For the three months ended March 31, 2017, the Company made approximately $349.3 million of originations and commitments4. The $349.3 million includes approximately $172.1 million of investments in four new portfolio companies and approximately $177.2 million of follow-on investments in twenty portfolio companies held as of December 31, 2016. For the three months ended March 31, 2017, the Company had approximately $34.7 million of sales in eight portfolio companies and cash repayments4 of approximately $99.1 million. The Company’s total adjusted investment income for the three months ended March 31, 2017 and 2016 were approximately $43.3 million and $40.9 million, respectively. For the three months ended March 31, 2017 and 2016, the Company’s total adjusted investment income consisted of approximately $37.8 million5 and $37.1 million5 in cash interest income from investments, respectively, approximately $0.9 million and $1.0 million in payment-in-kind (“PIK”) interest income from investments, prepayment penalties of approximately $0.1 million and $0.2 million, respectively, net amortization of purchase premiums/discounts of approximately $0.7 million and $0.7 million, respectively, cash dividend income of approximately $0.0 million and $0, respectively, PIK and non-cash dividend income of approximately $1.5 million and $0.7 million, respectively, and approximately $2.3 million and $1.2 million in other income, respectively. The Company’s total net expenses after income tax expense for the three months ended March 31, 2017 and 2016 were approximately $19.9 million and $19.4 million, respectively. Total net expenses after income tax expense for the three months ended March 31, 2017 and 2016 consisted of approximately $8.4 million and $6.6 million, respectively, of costs associated with the Company’s borrowings and approximately $9.8 million and $10.9 million, respectively, in net management and net incentive fees. Since the initial public offering (“IPO”), the base management fee calculation has deducted the borrowings under the New Mountain Finance SPV Funding, L.L.C. credit facility (the “SLF Credit Facility”). The SLF Credit Facility had historically consisted of primarily lower yielding assets at higher advance rates. As part of an amendment to the Company’s existing credit facilities with Wells Fargo Bank, National Association, the SLF Credit Facility merged with and into the New Mountain Finance Holdings, L.L.C. credit facility (the “Holdings Credit Facility”) on December 18, 2014. Post credit facility merger and to be consistent with the methodology since the IPO, New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) will continue to waive management fees on the leverage associated with those assets that share the same underlying yield characteristics with investments that were leveraged under the legacy SLF Credit Facility, which as of March 31, 2017 and 2016 totaled approximately $322.3 million and $297.9 million, respectively. For the three months ended March 31, 2017 and 2016, management fees waived were approximately $1.4 million and $1.3 million, respectively. For the three months ended March 31, 2017 and 2016, incentive fees waived were approximately $1.8 million and $0, respectively. The Investment Adviser cannot recoup management and incentive fees that the Investment Advisor has previously waived. The Company’s net direct and indirect professional, administrative, other general and administrative and income tax expenses for the three months ended March 31, 2017 and 2016 were approximately $1.7 million and $1.9 million, respectively. For the three months ended March 31, 2017 and 2016, the Company recorded approximately $0.8 million and $0.1 million of adjusted net realized gains, respectively, and $5.4 million and $(14.3) million of adjusted net changes in unrealized appreciation (depreciation) of investments and securities purchased under collateralized agreements to resell, respectively. For the three months ended March 31, 2017 and 2016, benefit for taxes was approximately $0.8 million and $0.8 million, respectively, related to differences between the computation of income for United States (“U.S.”) federal income tax purposes as compared to accounting principles generally accepted in the United States (“GAAP”). As of March 31, 2017, the Company had cash and cash equivalents of approximately $37.7 million and total statutory debt outstanding of approximately $744.9 million7, which consisted of approximately $376.9 million of the $495.0 million of total availability on the Holdings Credit Facility, $122.5 million of the $122.5 million of total availability on the Company’s senior secured revolving credit facility (the “NMFC Credit Facility”), $155.5 million7 of convertible notes outstanding and $90.0 million of unsecured notes outstanding. Additionally, the Company had $121.7 million of SBA-guaranteed debentures outstanding as of March 31, 2017. The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four. Each investment is assigned an initial rating of a “2” under the assumption that the investment is performing materially in-line with expectations. Any investment performing materially below our expectations would be downgraded from the “2” rating to a “3” or a “4” rating, based on the deterioration of the investment. An investment rating of a “4” could be moved to non-accrual status, and the final development could be an actual realization of a loss through a restructuring or impaired sale. During the first quarter of 2017, the Company placed its entire first lien notes position in Sierra Hamilton LLC / Sierra Hamilton Finance, Inc. ("Sierra") on non-accrual status due to its ongoing restructuring. As of March 31, 2017, the Company’s investment in Sierra placed on non-accrual status represented an aggregate cost basis of $27.2 million and an aggregate fair value of $16.5 million. As of March 31, 2017, one portfolio company had an investment rating of “3”, with a total cost basis of approximately $36.7 million and a fair value of approximately $26.9 million. As of March 31, 2017, three portfolio companies (including Sierra referenced above) had an investment rating of “4”. As of March 31, 2017, the Company’s investments in these portfolio companies had an aggregate cost basis of approximately $58.5 million and an aggregate fair value of approximately $20.5 million. The Company has had approximately $112.1 million of originations and commitments since the end of the first quarter through May 5, 2017. This was offset by approximately $104.9 million of repayments and $5.0 million of sales during the same period. On April 7, 2017, the Company completed a public offering of 5,000,000 shares of its common stock at a public offering price of $14.60 per share. On April 13, 2017, in connection with the public offering, the underwriters completed a purchase of an additional 750,000 shares of the Company’s common stock with the exercise of the overallotment option to purchase up to an additional 750,000 shares of the Company’s common stock. The Company received total net proceeds of approximately $81.5 million in connection with the offering. On May 4, 2017, the Company’s board of directors declared a second quarter 2017 distribution of $0.34 per share payable on June 30, 2017 to holders of record as of June 16, 2017. Use of Non-GAAP Financial Measures In evaluating its business, NMFC considers and uses adjusted net investment income as a measure of its operating performance. Adjusted net investment income is defined as net investment income adjusted to reflect income as if the cost basis of investments held at NMFC’s IPO date had stepped-up to fair market value as of the IPO date. Under GAAP, NMFC’s IPO did not step-up the cost basis of the predecessor operating company’s existing investments to fair market value. Since the total value of the predecessor operating company’s investments at the time of the IPO was greater than the investments’ cost basis, a larger amount of amortization of purchase or issue discount, and different amounts in realized gains and unrealized appreciation, may be recognized under GAAP in each period than if a step-up had occurred. For purposes of the incentive fee calculation, NMFC adjusts income as if each investment was purchased at the date of the IPO (or stepped-up to fair market value). In addition, adjusted net investment income excludes any capital gains incentive fee. The term adjusted net investment income is not defined under GAAP and is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. Adjusted net investment income has limitations as an analytical tool and, when assessing NMFC’s operating performance, and that of its portfolio companies, investors should not consider adjusted net investment income in isolation, or as a substitute for net investment income, or other consolidated income statement data prepared in accordance with GAAP. Among other things, adjusted net investment income does not reflect NMFC’s, or its portfolio companies’, actual cash expenditures. Other companies may calculate similar measures differently than NMFC, limiting their usefulness as comparative tools. New Mountain Finance Corporation will host a conference call at 10 a.m. Eastern Time on Tuesday, May 9, 2017, to discuss its first quarter 2017 financial results. All interested parties may participate in the conference call by dialing +1 (877) 443-9109 approximately 15 minutes prior to the call. International callers should dial +1 (412) 317-1082. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, http://ir.newmountainfinance.com. To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. Following the call, you may access a replay of the event via audio webcast on our website. We will be utilizing a presentation during the conference call and we have posted the presentation to the investor relations section of our website. New Mountain Finance Corporation is a closed-end, non-diversified and externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. In some cases, the investments may also include small equity interests. The Company’s investment activities are managed by its Investment Adviser, New Mountain Finance Advisers BDC, L.L.C., which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. More information about New Mountain Finance Corporation can be found on the Company’s website at http://www.newmountainfinance.com. New Mountain Capital, L.L.C. is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, public equity and credit funds with approximately $15.0 billion in aggregate capital commitments. New Mountain Capital, L.L.C. seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, L.L.C., please visit http://www.newmountaincapital.com. Statements included herein may contain “forward-looking statements”, which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward-looking statements made herein. All forward-looking statements speak only as of the time of this press release.


News Article | May 10, 2017
Site: globenewswire.com

DALLAS, May 10, 2017 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“CSWC,” “Capital Southwest” or the “Company”) announced today that the Chairman of the Board, Joseph B. Armes, has informed the Company’s Board of Directors (the “Board”) of his decision not to stand for re-election at the Annual Meeting of Shareholders in August 2017, in order to devote additional time and attention to his duties at CSW Industrials, Inc. (“CSWI”) (NASDAQ:CSWI).  Mr. Armes has been Chairman of the Board since January 2014 and served as the Company’s President and Chief Executive Officer from July 2013 through September 2015, when the Company completed the spinoff of CSWI.  Upon completion of the spinoff, Mr. Armes became Chairman and Chief Executive Officer of CSWI and Bowen Diehl, then Chief Investment Officer of CSWC, was appointed President and Chief Executive Officer of CSWC. “When I joined Capital Southwest in 2013, I was hired to be a catalyst for change, and I was convinced that we had the tremendous opportunity to unlock significant shareholder value and reposition the firm to begin investing again,” said Mr. Armes.  “We began by recruiting extraordinary board members, including David Brooks and Jack Furst, two gentlemen whom I have known and respected for over 20 years and who have brought significant strategic wisdom to the board.  Then, upon recruiting Bowen Diehl as Chief Investment Officer to join me in this effort, we began a transformation of Capital Southwest that unlocked significant shareholder value, creating two public companies, each with strategies appropriate for their respective structures.  I am proud of our accomplishments and grateful to the employees of Capital Southwest for their diligence and to the Capital Southwest Board for their support as we executed on our strategic vision.  I couldn’t be more optimistic about Capital Southwest’s strategy and prospects going forward as a middle market lender, led by Bowen and his team.” The Board plans to appoint current Director David R. Brooks, Founder, Chairman and Chief Executive Officer of Independent Bank Group, Inc. (NASDAQ:IBTX), non-executive Chairman of the Board of Capital Southwest at the 2017 Annual Meeting of Shareholders, which is expected to occur August 2, 2017.  Mr. Brooks has served on the Board since 2014 and is currently Chairman of the Audit Committee.  The Board also plans to appoint current Director Jack D. Furst, founder of Oak Stream Investors and former partner at Hicks, Muse, Tate & Furst, Inc., Chairman of the Audit Committee to succeed Mr. Brooks in that capacity. “I am thrilled with the prospect of serving as Chairman of Capital Southwest’s Board of Directors,” said Mr. Brooks.  “Joe did a tremendous job setting the vision and leading an extraordinary transformation of Capital Southwest that he should be very proud of.  Bowen has extensive middle market investing experience and has proven to be a great leader as he built an impressive team and designed and set in motion our middle market investment strategy.  Our senior management team worked together for over a decade at their prior firm, bringing to Capital Southwest extensive knowledge of all aspects of operating and financing a BDC through the economic cycle.” Effective as of the Company’s 2017 Annual Stockholder Meeting, the number of seats on Capital Southwest’s Board will be reduced from seven to six. “We are all grateful to Joe for his leadership and service over the past several years,” said Mr. Diehl.  “Personally, I have greatly appreciated his mentorship and friendship, which I look forward to continuing in the future.  I am excited about the prospect of working more closely with David and for all of us to benefit from his extensive wisdom and knowledge gained from delivering significant value for public shareholders by founding and building a major player in the regional banking industry.” Capital Southwest Corporation (Nasdaq:CSWC) is a Dallas, Texas-based publicly traded Business Development Company, with approximately $285 million in net assets as of December 31, 2016. Capital Southwest is a credit investment firm focused on supporting the acquisition and growth of middle market businesses with $5 to $20 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time. This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "plan," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include, but are not limited to, risks related to the outcome of the election at the 2017 Annual Meeting of Shareholders. Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2016 and subsequent filings with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by law, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

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