Capital Southwest Corporation Prices Public Offering of $50.0 million of 5.375% Notes due 2024

DALLAS, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”) is pleased to announce that it has priced an underwritten public offering of an additional $50.0 million in aggregate principal amount of 5.375% notes due 2024 (the “Notes”). The Notes are being issued at 100% of the principal amount per Note, resulting in a yield-to-maturity of 5.373%.

The Notes are a further issuance of the 5.375% notes due 2024 that Capital Southwest issued on September 27, 2019 in an aggregate principal amount of $65.0 million and on October 8, 2019 in an aggregate principal amount of $10.0 million (together, the “Existing Notes”). The Notes will be treated as a single series with the Existing Notes under the indenture and will have the same terms as the Existing Notes. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing Notes. Upon the issuance of the Notes, the outstanding aggregate principal amount of Capital Southwest’s 5.375% notes due 2024 will be $125.0 million. The offering is subject to customary closing conditions and is expected to close on August 17, 2020.

Capital Southwest intends to use the net proceeds from this offering to repay 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, to make investments in marketable securities and other temporary investments, and for other general corporate purposes, including payment of operating expenses. As of August 11, 2020, Capital Southwest had $197.0 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 the book-running manager 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 pricing term sheet dated August 12, 2020, the preliminary prospectus supplement dated August 12, 2020, and the accompanying prospectus dated August 15, 2019, each of which has been filed with the Securities and Exchange Commission, contain this and other information about Capital Southwest and should be read carefully before investing.