Capital Southwest Supports Hidden Harbor’s Investment in Air Conditioning Specialist, Inc.

Rhea-AI Summary

Capital Southwest (CSWC) announced its backing of Hidden Harbor Capital Partner’s refinancing of Air Conditioning Specialist, Inc. with a senior secured term loan and minority equity co-investment. Capital Southwest will lead the financing and serve as the sole administrative agent. ACS is recognized as a premier HVAC services provider in Georgia, operating for over 50 years. Capital Southwest manages approximately $818 million in investments and remains focused on supporting middle market businesses' growth.

Positive

• Capital Southwest leads financing for ACS, indicating confidence in the company's growth potential.
• ACS has over 50 years of operational experience in the HVAC sector, enhancing its market credibility.
• Capital Southwest's total investments reach approximately $818 million, reflecting its strong financial position.

Negative

• None.

DALLAS, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it backed Hidden Harbor Capital Partner’s (“Hidden Harbor”) refinancing of Air Conditioning Specialist, Inc. (“ACS” or the “Company”) with a senior secured first lien term loan and a minority equity co-investment. Capital Southwest led the financing and will act as the sole administrative agent on the facility.

"We are excited to partner with Hidden Harbor on its investment in ACS and look forward to supporting the continued growth of the platform throughout the Southeast,” said Ryan Kelly, Managing Director at Capital Southwest. Grant Eason, Senior Vice President at Capital Southwest, said, “The ACS team has developed a strong reputation as one of the premier residential and commercial HVAC companies having operated in Georgia for over 50 years.”

Founded in 1967 and headquartered in Covington, GA, ACS is a leading provider of heating, ventilation, and air conditioning (“HVAC”) maintenance, retrofit, and new construction installation and service in Georgia. The Company serves commercial and residential customers for all their installation, break/fix, and/or maintenance needs. For additional information on ACS, please visit www.theairconditioningspecialist.com.

About Capital Southwest

Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $818 million in investments at fair value as of September 30, 2021. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, second lien 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.

About Hidden Harbor Capital Partners

Hidden Harbor, based in Boca Raton, FL, is a private equity firm with an operations soul and intense passion for building great companies. Hidden Harbor brings large scale, private equity experience and resources to the lower middle market with a focus on value-oriented, operationally intense situations. Their principals are investor operators who have both extensive transaction and operating experience to truly understand the businesses they invest in. For additional information, please visit www.hh-cp.com.

Forward-Looking Statements

This press release contains historical information and forward-looking statements 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," "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 risks related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; regulatory changes; tax treatment and general economic and business conditions; our ability to operate our wholly owned subsidiary, SBIC I, as an SBIC; and uncertainties associated with the continued impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business. 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, 2021 and subsequent filings, including the "Risk Factors" sections therein, 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 the federal securities laws, 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.

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, 2021, and subsequent filings, including the "Risk Factors" sections therein, 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 the federal securities laws, 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.

Investor Relations Contact:
Michael S. Sarner, Chief Financial Officer
214-884-3829

FAQ

What financing did Capital Southwest provide to ACS?

Capital Southwest provided a senior secured first lien term loan and a minority equity co-investment for ACS.

What is the significance of ACS in the HVAC industry?

ACS has operated for over 50 years and is recognized as a leading provider of HVAC services in Georgia.

How much did Capital Southwest manage in investments as of September 30, 2021?

As of September 30, 2021, Capital Southwest managed approximately $818 million in investments.

What role will Capital Southwest play in the ACS financing?

Capital Southwest will lead the financing and act as the sole administrative agent on the facility.