Capital Southwest Supports O2 Investment Partners' Investment in Flip Electronics, LLC
January 19 2021 - 8:30AM
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 supported O2 Investment
Partners, LLC’s (“O2”) significant investment in Flip Electronics,
LLC (“Flip” or the “Company”) with a first lien term loan and
equity co-investment. Capital Southwest serves as the term loan
agent on the credit facility. PNC Bank is a first-out lender in the
term loan and provided a revolving credit facility. Main Street
Capital Corporation (NYSE: MAIN) is also a last-out lender in the
term loan.
“We are excited to partner with O2 on its
investment in Flip,” said Ryan Kelly, Principal of Capital
Southwest. “Flip’s management team has done an excellent job
building and growing the business over the last several years.”
Grant Eason, Vice President of Capital Southwest said, “Flip’s
end-of-life (“EOL”) focus offers a compelling value proposition
both for its original component manufacturing partners and
customers.”
Founded by Jason Murphy in 2015, Flip
Electronics is an authorized specialty distributor of electronic
components to customers across the U.S. and internationally. Flip
serves as a critical supply chain partner to both electronic
component manufacturers and end customers across a range of
industries, including military, aerospace, telecommunications,
healthcare, and industrial. The Company helps solve complex
challenges caused by component obsolescence through its core focus
on EOL, obsolete, and hard-to-find parts. Flip is headquartered in
Roswell, GA.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is
a Dallas, Texas-based, internally managed business development
company, with approximately $286 million in net assets as of
September 30, 2020. Capital Southwest is a middle market lending
firm focused on supporting the acquisition and growth of middle
market businesses with $5 to $25 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.
About O2 Investment
Partners
O2 Investment Partners is a Midwestern based
private equity firm that seeks to acquire majority interests in
lower middle market B2B services, technology, and select niche
industrial companies. The firm invests in businesses with earnings
growth potential and a clear path to the creation of shareholder
value. O2 invests with a view toward partnering with management to
build and grow the business and take it to its next stage of
development. This requires not only a clear vision and strategic
plan to create shareholder value, but a close partnership and
alignment of interest with management.
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; and uncertainties associated with the 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; and 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,
2020 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
Officer214-884-3829
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