DALLAS, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) is pleased to announce that it has priced an underwritten public offering of $75 million in aggregate principal amount of 4.50% notes due 2026. The Notes will bear interest at a rate of 4.50% per year, payable semi-annually, will mature on January 31, 2026 and may be redeemed in whole or in part at Capital Southwest’s option at any time prior to October 31, 2025, at par plus a “make-whole” premium, and thereafter at par. The offering is subject to customary closing conditions and is expected to close on December 29, 2020.
Capital Southwest intends to use the net proceeds from this offering to redeem all of its outstanding 5.95% notes due 2022 and repay a portion of the outstanding indebtedness under its credit facility. However, through re-borrowings under its credit facility, Capital Southwest intends to make investments in lower middle market and upper middle market portfolio companies in accordance with its investment objective and strategies, and for other general corporate purposes, including payment of operating expenses. As of December 21, 2020, Capital Southwest had $215.0 million of indebtedness outstanding under its credit facility. The credit facility matures on December 21, 2023, and borrowings under the credit facility currently bear interest on a per annum basis equal to LIBOR plus 2.50%.
Raymond James & Associates, Inc. is acting as sole book-running manager for this offering. Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), are acting as co-managers for the offering.
ABOUT CAPITAL SOUTHWEST
Capital Southwest Corporation 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 and makes investments ranging from $5 to $20 million in securities 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.
