Capital Southwest Withdraws its Voluntary $35 Million Partial Redemption on December 2022 Notes

Nachrichtenquelle: globenewswire
26.03.2020, 21:01  |  114   |   |   

DALLAS, March 26, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”; Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced the Company will withdraw its voluntary redemption of $35,000,000 in principal of the $77,136,175 in aggregate principal amount of issued and outstanding 5.95% Notes due 2022 (the “December 2022 Notes”) previously scheduled to be redeemed on April 3, 2020. 

Bowen Diehl, Chief Executive Officer, commented, “As everyone is aware, the world is suffering through a pandemic which is causing extreme disruptions to the U.S. and global economy and financial markets at least for the near term.  The full extent of the economic impact, duration, and spread of the COVID-19 pandemic and impact on any of our portfolio companies remains uncertain.  Notwithstanding these uncertainties, we have been closely monitoring our loan portfolio and we believe the management teams and financial sponsors of our portfolio companies are taking the appropriate steps to manage the business disruptions. Our fundamental approach toward investing and capitalization has always been one of conservatism, with a priority on safeguarding shareholder value while maintaining liquidity to invest where attractive risk adjusted returns exist.  While we believe our liquidity is strong, with approximately $176 million in undrawn capital commitments on our revolving credit facility, we believe that given the uncertainty that currently exists in the U.S. economy, the most prudent course of action is to postpone the optional redemption of a portion of our December 2022 Notes to a time when more certainty exists in the market.  As a reminder, we submitted the voluntary redemption notice on February 27, 2020 before the full extent of the COVID-19 pandemic was known. We will continue to consider partially redeeming the December 2022 Notes in time, prior to their stated maturity, but we believe it is in the best interests of the Company and its stakeholders to preserve capital until we better understand both the severity of the impact and timing of recovery in the market.”  

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