Capital Southwest (NASDAQ:CSWC) Q4 2022 Earnings Conference Call May 24, 2022 11:00 AM ET

Company Participants

Chris Rehberger - Vice President of Finance

Bowen Diehl - Chief Executive Officer

Michael Sarner - Chief Financial Officer

Conference Call Participants

Mickey Schleien - Ladenburg

Kevin Fultz - JMP Securities

Kyle Joseph - Jefferies

Bryce Rowe - Hovde

Robert Dodd - Raymond James

Operator

Thank you for joining today's Capital Southwest Fourth Quarter and Fiscal Year 2022 Earnings Call. Participating on the call today are Bowen Diehl, CEO; Michael Sarner, CFO; and Chris Rehberger, VP Finance.

I will now turn the call over to Chris Rehberger.

Chris Rehberger

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 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 agent's press release, except as required by law.

I will now hand the call off to our President and Chief Executive Officer, Bowen Diehl.

Bowen Diehl

Thanks, Chris, and thank you, everyone, for joining us for our fourth quarter and fiscal year 2020 earnings call. We are pleased to be with you this morning and look forward to giving you an update on the performance of our company and our portfolio, as we continue to diligently execute our investment strategy as stewards of your Capital. Throughout our prepared remarks, we will refer to various slides in our earnings presentation, which can be found on our website at www.capitalsouthwest.com.

I'll start by saying that during tumultuous times like we have seen recently in the public markets, it's covering to have a portfolio heavily weighted to first lien senior secured debt, built with the full cycle underwriting mentality have deployed over the past seven years since the launch of our credit strategy.

It is also comforting that 89% of our credit book is in sponsor-backed companies, which provided these companies with potential capital and operating support, if needed. On the capitalization front, we have been diligent about maintaining over half of our liabilities and unsecured debt, while consistently raising equity through our cost-efficient equity ATM program.