Capital Southwest Corporation Closes Public Offering of 7.75% Notes due 2028

Underwriters Fully Exercise Option to Purchase Additional 7.75% Notes due 2028

DALLAS, June 14, 2023 (GLOBE NEWSWIRE) --  Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”) (rated Baa3, Stable Outlook by Moody’s and BBB-, Stable Outlook by Fitch) today announced that it has closed an underwritten offering of $71,875,000 aggregate principal amount of its 7.75% notes due 2028 (the “Notes”). The total amount of Notes issued includes the underwriters’ full exercise of their option to purchase an additional $9,375,000 aggregate principal amount of the Notes to cover overallotments.

Capital Southwest received approximately $69.3 million in net proceeds from this offering, after deducting the underwriting discount and the estimated offering expenses payable by Capital Southwest. Capital Southwest intends to use the net proceeds from this offering to repay a portion of the outstanding indebtedness under its senior secured revolving credit facility.

The Notes bear interest at a rate of 7.75% per year, payable quarterly on February 1, May 1, August 1, and November 1, beginning August 1, 2023. The Notes will mature on August 1, 2028 and may be redeemed in whole or in part at Capital Southwest’s option on or after August 1, 2025.

Oppenheimer & Co. Inc., B. Riley Securities, Inc., Janney Montgomery Scott LLC and Ladenburg Thalmann & Co., Inc. served as joint book-running managers for this offering. InspereX LLC, William Blair & Company L.L.C. and ING Financial Markets LLC acted as co-managers for this offering.

Investors should carefully consider, among other things, Capital Southwest’s investment objective and strategies and the risks related to Capital Southwest and the offering before investing. The final prospectus supplement, dated June 7, 2023, and the accompanying prospectus, dated October 29, 2021, included therein, which have been filed with the Securities and Exchange Commission (the “SEC”), contain this and other information about Capital Southwest and should be read carefully before investing.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described above nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state or jurisdiction. The SEC has not approved or disapproved these securities or passed upon the adequacy of the prospectus relating to this offering. Any representation to the contrary is a criminal offense.