 CHARLOTTE, N.C., Aug. 04, 2020 GLOBE NEWSWIRE -- Capitala Finance Corp. Nasdaq:CPTA Capitala, the Company, we, us, or our today announced its financial results for the second quarter of 2020. Second Quarter Highlights Increase in NAV per share-6.46 at June 30, 2020 compared to 6.27 at March 31, 2020 Successful wind down of Capitala Senior Loan Fund II, LLC CSLF II Reduced non-accrual balances Liquidity from repayments will allow the Company to reduce leverage during the second half of 2020 and support existing and new portfolio investmentsManagement CommentaryIn describing the Companys second quarter activities, Joseph B. Alala, III, Chairman and Chief Executive Officer, stated, We are pleased to report a slight increase in NAV per share during the second quarter of 2020, while generating 51.1 million of liquidity through repayments and the wind down of CSLF II. The 95.2 million of cash at quarter end will allow us to support our existing portfolio investments, evaluate new investment opportunities, reduce leverage by the repayment of scheduled maturities and the prepayment of other debt, and provide for general working capital needs.Second Quarter 2020 Financial ResultsDuring the second quarter of 2020, the Company originated 12.5 million of new investments, and received 51.1 million of repayments. Repayments included 13.1 million from the wind down of the Companys investment in CSLF II, 17.8 million in full repayment of the first and second lien debt investments in Flavors Holdings, Inc., and 20.2 million in various other repayments.Total investment income was 7.0 million for the second quarter of 2020, compared to 11.6 million in the second quarter of 2019. Interest and fee income were 4.0 million lower in second quarter of 2020 as compared to the second quarter of 2019, the result of lower average debt investments outstanding and the impact of repayments and non-accrual investments. Payment-in-kind income and dividend income, collectively, declined by 0.6 million, primarily due the wind down of CSLF II during the second quarter of 2020.Total expenses for the second quarter of 2020 were 7.6 million, relatively unchanged from the comparable period in 2019. During the second quarter of 2020, the Company recorded 1.1 million in one-time deferred financing charges related to the early termination of its senior secured credit facility.Net realized losses totaled 13.3 million for the second quarter of 2020, compared to 15.1 million of net realized losses for the second quarter of 2019. Net realized losses had an immaterial impact to NAV per share during the second quarter of 2020, as realized amounts were generally in line with prior fair value amounts.Net unrealized appreciation totaled 17.0 million, or 1.04 per share, for the second quarter of 2020, compared to net unrealized depreciation of 17.4 million for the second quarter of 2019.The net increase in net assets resulting from operations was 3.1 million for the second quarter of 2020, or 0.19 per share, compared to a net decrease of 29.1 million, or 1.81 per share, for the same period in 2019.Investment PortfolioAs of June 30, 2020, our portfolio consisted of 37 companies with a fair market value of 287.3 million and a cost basis of 305.0 million. First lien debt investments represented 67.4 of the portfolio, second lien debt investments represented 13.3 of the portfolio, and equitywarrant investments represented 19.3 of the portfolio, based on fair values.At June 30, 2020, the Company had five debt investments on non-accrual status, totaling 34.5 million and 23.9 million, on a cost basis and fair value basis, respectively.Liquidity and Capital ResourcesAt June 30, 2020, the Company had 95.2 million in cash and cash equivalents. In addition, the Company had SBA debentures outstanding totaling 150.0 million with an annual weighted average interest rate of 3.16, 75.0 million of fixed rate notes bearing an interest rate of 6.00, and 52.1 million of convertible notes bearing an interest rate of 5.75.Subsequent EventsDuring July 2020, the Company received 2.4 million in principal repayments on its first lien debt investment in BigMouth, Inc.On July 30, 2020, the Companys board of directors approved a one-for-six reverse stock split of the Companys common stock which is expected to be effective as of 5:00 Eastern Standard Time on August 21, 2020 the Effective Time. The Companys common stock is expected to begin trading on a split-adjusted basis at the market open on August 24, 2020. At the Effective Time, every six 6 issued and outstanding shares of the Companys common stock will be converted into one 1 share of the Companys common stock.On July 30, 2020, the Companys board of directors approved a bond repurchase program which authorizes the Company to repurchase up to an aggregate of 10.0 million worth of the Companys outstanding 2022 Notes andor 2022 Convertible Notes the Bond Repurchase Program. The Bond Repurchase Program will terminate upon the earlier of i July 30, 2021 or ii the repurchase of an aggregate of 10.0 million worth of 2022 Notes andor 2022 Convertible Notes.Second Quarter 2020 Financial Results Conference CallManagement will host a conference call to discuss the operating and financial results at 8:30 a.m. on Wednesday, August 5, 2020. The call will be broadcast live in listen-only mode on the Companys investor relations website at To participate in the conference call, please dial 1-877-312-5507 approximately 10 minutes prior to the call.About Capitala Finance Corp.Capitala Finance Corp. is a business development company that invests primarily in first lien loans, and, to a lesser extent, second lien loans and equity securities issued by lower and traditional middle market companies. The Company is managed by Capitala Investment Advisors, LLC. For more information on Capitala, or to automatically receive email notifications of Company financial information, press releases, stock alerts, or other corporate filings, please visit the Investor Relations section of our website.About Capitala GroupCapitala Group is a 3.0 billion asset management firm that has been providing capital to lower middle market companies through its credit, growth, and equity investment strategies throughout North America for over twenty years. Since its inception in 1998, Capitala Group has invested in over 160 companies and seeks to partner with strong management teams to create value and generate superior risk-adjusted returns for its individual and institutional investors. For more information, definition and details visit Capitala Groups website at StatementsThis press release contains certain forward-looking statements. Words such as believes, intends, expects, projects, anticipates, and future or similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant volatility on our business, our portfolio companies, our industry and the global economy. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Companys filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.SOURCE: Capitala Finance Corp.Capitala Finance Corp. Stephen Arnall, Chief Financial Officer 704-376-5502 Capitala Finance Corp. Consolidated Statements of Assets and Liabilities in thousands, except share and per share data As of June 30, 2020 December 31, 2019 unaudited ASSETS Investments at fair value: Non-controlnon-affiliate investments amortized cost of 211,569 and 250,433, respectively 190,650 241,046 Affiliate investments amortized cost of 84,403 and 80,756, respectively 87,679 98,763 Control investments amortized cost of 9,044 and 22,692, respectively 8,937 22,723 Total investments at fair value amortized cost of 305,016 and 353,881, respectively 287,266 362,532 Cash and cash equivalents 95,226 62,321 Interest and dividend receivable 2,078 1,745 Prepaid expenses 640 624 Deferred tax asset, net - - Other assets 301 115 Total assets 385,511 427,337 LIABILITIES SBA Debentures net of deferred financing costs of 758 and 1,006, respectively 149,242 148,994 2022 Notes net of deferred financing costs of 1,164 and 1,447, respectively 73,836 73,553 2022 Convertible Notes net of deferred financing costs of 736 and 916, respectively 51,352 51,172 Credit Facility net of deferred financing costs of 0 and 1,165, respectively - 1,165 Management and incentive fees payable 3,586 3,713 Interest and financing fees payable 2,429 2,439 Accounts payable and accrued expenses 11 518 Total liabilities 280,456 279,224 NET ASSETS Common stock, par value 0.01, 100,000,000 common shares authorized, 16,266,484 and 16,203,769 common shares issued and outstanding, respectively 163 162 Additional paid in capital 238,220 237,886 Total distributable loss 133,328 89,935 Total net assets 105,055 148,113 Total liabilities and net assets 385,511 427,337 Net asset value per share 6.46 9. 