Capital Southwest Corporation Prices Public Offering of $50.0 million of 5.375% Notes due 2024
August 12 2020 - 4:46PM
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.
A shelf registration statement relating
to these securities is on file with and has been declared effective
by the Securities and Exchange Commission. The offering may be made
only by means of a preliminary prospectus supplement and an
accompanying prospectus, copies of which may be obtained, when
available, from Raymond James & Associates, Inc., 880 Carillon
Parkway, St. Petersburg, Florida 33716, by email:
prospectus@raymondjames.com or by calling:
1-800-248-8863.
The information in the pricing term sheet, the
preliminary prospectus supplement, the accompanying prospectus and
this press release is not complete and may be changed. The pricing
term sheet, the preliminary prospectus supplement, the accompanying
prospectus and this press release do not constitute offers to sell
or the solicitation of offers to buy, nor will there be any sale of
the Notes referred to in this press release, in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the
securities laws of such state or jurisdiction.
ABOUT CAPITAL SOUTHWEST
Capital Southwest Corporation is a Dallas,
Texas-based, internally managed Business Development Company, with
approximately $278 million in net assets as of June 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.
FORWARD-LOOKING STATEMENTS
This press release may contain certain
forward-looking statements within the meaning of the federal
securities laws, including statements with regard to Capital
Southwest’s Notes offering, the expected proceeds from the offering
and the anticipated use of the net proceeds of the offering. These
statements are often, but not always, made through the use of word
or phrases such as “will,” “may,” “could,” “expect,” and similar
expressions and variations or negatives of these words. These
statements are based on management’s current expectations,
assumptions, and beliefs. They are not guarantees of future results
and are subject to numerous risks, uncertainties, and assumptions
that could cause actual results to differ materially from those
expressed in any forward-looking statement. These risks include
risks identified from time to time in Capital Southwest’s filings
with the Securities and Exchange Commission. Readers should not
place undue reliance on any forward-looking statements and are
encouraged to review Capital Southwest’s prospectus and applicable
prospectus supplement for a more complete discussion of the risks
and other factors that could affect any forward-looking statements.
Except as required by the federal securities laws, Capital
Southwest does not undertake any obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, changing circumstances or any other
reason after the date of this press release.
CONTACT: Michael S. Sarner,
Chief Financial Officer msarner@capitalsouthwest.com
214-884-3829
Capital Southwest (NASDAQ:CSWC)
Historical Stock Chart
From Apr 2024 to May 2024
Capital Southwest (NASDAQ:CSWC)
Historical Stock Chart
From May 2023 to May 2024