Capital Southwest Supports Five Points Recapitalization of GrammaTech

Southwest Corporation (“Capital Southwest”) (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 the recent recapitalization of GrammaTech, Inc. (“GrammaTech”) by Five Points Capital, Pleasant Bay Capital, Crescendo Capital, new CEO Mike Dager, and existing management. Capital Southwest provided a revolving line of credit, a first lien term loan, and made an equity co-investment. Capital Southwest will act as the sole investor and administrative agent for the credit facility.

"GrammaTech is on the front line in developing technology to help protect devices and software from failure and cyber attacks,” said Douglas Kelley, Managing Director of Capital Southwest. “We look forward to working with our new partners to help grow the company under Mike Dager’s leadership.”  Grant Eason, Vice President of Capital Southwest, said “GrammaTech has generated cutting edge research in source and binary code scanning for over 30 years, and will continue to be an important partner to its commercial and government sponsor clients to solve increasingly complex software challenges.”

Founded in 1988 and headquartered in Ithaca, New York, GrammaTech is a leading provider of cybersecurity solutions for government and commercial clients. The company’s software enables users to quickly scan code for vulnerabilities that cause breaches, system failures or poor reliability. GrammaTech’s expertise in application security testing has been built through decades of cutting-edge research for the national security community and other US government agencies.

About Capital Southwest

Capital Southwest Corporation (CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately $328 million in net assets as of September 30, 2019. 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, 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.

Investor Relations Contact:

Michael S. Sarner, Chief Financial Officer
214-884-3829