Capital Southwest Corporation

Thank you for joining today's Capital Southwest second quarter fiscal year 2026 earnings call. Participating on the call today are Michael Sorner, Chief Executive Officer, Chris Weinberger, Chief Financial Officer, Josh Weinstein, Chief Investment Officer, and Amy Baker, Executive Vice President, Accounting. I'll now turn the call over to Amy Baker.

Thank you. I would like to remind everyone that in the course of this call, we will be making certain forward-looking statements. These statements are based on current conditions, currently available information, and management's 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 such statements. For information concerning these risks and uncertainties, see Capital Southwest's publicly available filings with the SEC. The company does not undertake any obligation to 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, except as required by law. I will now hand the call over to our President and Chief Executive Officer, Michael Sarner.

Thanks, Amy. And thank you, everyone, for joining us for our second quarter fiscal year 2026 earnings call. We're pleased to be with you today to discuss our second fiscal quarter, as well as share our observations on the current market environment. During the second fiscal quarter, we generated pre-tax net investment income of 61 cents per share. Additionally, we were able to increase our undistributed taxable income balance to $1.13 per share from $1 per share as at the end of the prior quarter. Over the last 12 months, we've harvested $44.8 million in realized gains from equity exits, which is the main driver of our growth in UTI per share from 64 cents in September 2024 to $1.13 today. Furthermore, our Board of Directors has declared a total of 58 cents in regular dividends for the quarter, payable monthly in each of October, November, and December 2025. And it's also declared a quarterly supplemental dividend of 6 cents per share, bringing total dividends declared for the December quarter to $0.64 per share. On the capitalization front, we successfully raised $350 million in aggregate principal of 5.95% notes due 2030. Subsequent to quarter end, the proceeds from these notes were partially used to redeem in full our outstanding $150 million notes due October 2026 and our $71.9 million notes due August 2028. Importantly, the redemption of these notes did not require a make-hold premium to be paid in either case. We believe this new capital enhances the strength of our balance sheet and alleviates any concerns surrounding near-term bond maturities, with our earliest unsecured maturity now in fiscal year 2030. Finally, we raised approximately $40 million in gross equity proceeds during the quarter through our equity ATM program. at a weighted average share price of $22.81 per share, or 137% of the prevailing NAV per share. Deal flow in the lower middle market continued to be robust this quarter, with $245 million in total new commitments to seven new portfolio companies and 10 existing portfolio companies. Add-on financings continue to be an important source of originations for us, as approximately 32% of the total capital commitments during the quarter were follow-on financings in performing portfolio companies. Over the last 12 months, add-ons as a percentage of total new commitments have been 39%. So this is clearly a strong source of origination volume in deals. We know well and have experience with the management team and sponsor. Additionally, the weighted average spread on our new commitments this quarter was approximately 6.5%. which we view as strong in a tight spread field environment. I will now hand the call over to Josh to review more specifics of our investment activity and the market environment.