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Capital Southwest - CSWC STOCK NEWS

Welcome to our dedicated page for Capital Southwest news (Ticker: CSWC), a resource for investors and traders seeking the latest updates and insights on Capital Southwest stock.

Capital Southwest Corp (NASDAQ: CSWC) is an internally-managed Business Development Company (BDC) that specializes in credit-focused investments. The company is a prominent lender to middle-market businesses across the capital structure, offering flexible capital solutions that address financing needs unmet by traditional first lien senior lenders. Headquartered in Dallas, Texas, Capital Southwest is uniquely positioned to finance lower middle-market companies with EBITDA ranging from $3 to $12 million.

Capital Southwest's investment strategy focuses on providing financings between $5 and $50 million, with individual commitments ranging from $5 to $20 million per deal. Their robust network of co-investors enables the company to effectively meet the needs of its clients. The company's criteria for investment include a minimum EBITDA of $3 million, a proven management team motivated by continued ownership, an established market position, and a history of positive cash flow.

The company offers a range of investment structures, including unitranche debt through a network of first out senior lending relationships, first lien debt, second lien, and subordinated debt. Additionally, the company's portfolio may comprise preferred stocks, common stocks, and warrants.

The primary revenue sources for Capital Southwest include interest income and dividend income from its investments, along with management fees. The company aims to generate attractive risk-adjusted returns by producing current income from debt investments and capital appreciation from equity and equity-related investments. Their investment team, boasting decades of experience working together, is committed to delivering value to shareholders.

The company has recently reported several key achievements and financial highlights:

  • Special Meeting: Scheduled for October 11, 2023 to discuss forward-looking statements and company performance.
  • Q2 FY2024 Financial Highlights: Pre-tax net investment income of $0.67 per share and a regular dividend of $0.57 per share, along with a supplemental dividend of $0.06 per share for the quarter ended December 31, 2023.
  • Q3 FY2024 Financial Highlights: Pre-tax net investment income of $0.72 per share and consistent dividend payouts, reflecting robust financial health and commitment to shareholder returns.
  • Upcoming Events: Scheduled calls on January 30, 2024, and May 15, 2024, to provide updates on financial performance and strategic initiatives.

Investors and stakeholders should note the forward-looking statements regarding the company’s future performance and financial condition. These are based on management’s current expectations and are subject to various risks and uncertainties. Readers are encouraged to review the company’s Annual Report on Form 10-K for a comprehensive discussion of these risks.

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Capital Southwest (Nasdaq: CSWC) announced significant leadership changes effective February 17, 2025. Michael Sarner, the current CFO, will succeed Bowen Diehl as President and CEO, joining the Board of Directors. Diehl will continue serving in an advisory capacity for at least one year.

Additional promotions include Chris Rehberger advancing from Executive VP of Finance to CFO, Treasurer & Secretary, and Tabitha Geiger moving from Deputy Compliance Officer to Chief Compliance Officer.

Sarner, who joined Capital Southwest in 2015, brings over 30 years of financial and BDC experience, having raised over $2 billion in debt and equity for the company. He previously spent 15 years at American Capital as Executive VP and Treasurer.

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Capital Southwest (CSWC) reported strong financial results for Q3 FY2025 ended December 31, 2024. The company achieved pre-tax net investment income of $0.64 per share, surpassing both its regular dividend of $0.58 and supplemental dividend of $0.05 per share. The total investment portfolio reached $1.7 billion, with a credit portfolio of $1.5 billion comprising 98% first-lien senior secured debt.

The company originated $317.5 million in new commitments, including investments in nine new portfolio companies totaling $175.2 million. The weighted average yield on debt investments was 12.1%. The Board declared an increased total dividend of $0.64 per share for Q1 2025, consisting of a $0.58 regular dividend and a $0.06 supplemental dividend.

Notable metrics include net asset value (NAV) per share of $16.59, cash and cash equivalents of $36.0 million, and total net assets of $830.4 million. Current non-accruals represent 2.7% of the total investment portfolio with a fair value of $45.8 million.

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Capital Southwest (Nasdaq: CSWC) has disclosed the U.S. federal income tax treatment of its 2024 dividends. The company paid total dividends of $2.53 per share for the tax year ended December 31, 2024. The dividends were comprised of 100% ordinary income, including net short-term capital gains.

The quarterly dividend payments were distributed as follows:

  • March 29, 2024: $0.63 per share
  • June 28, 2024: $0.63 per share
  • September 30, 2024: $0.64 per share
  • December 31, 2024: $0.63 per share

Notably, 92.89% of the dividends qualify as Interest-Related and Short-Term Capital Gain dividends, which are generally exempt from U.S. withholding tax for Non-U.S. Residents and Foreign Shareholders.

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Capital Southwest (Nasdaq: CSWC) has released preliminary operating results for Q3 FY2025 (ended December 31, 2024). The business development company estimates pre-tax net investment income of $0.63-$0.64 per share and net investment income of $0.62-$0.63 per share. The company's preliminary net asset value per share is estimated between $16.57-$16.62, with investment assets at fair value approximately $1.7 billion as of December 31, 2024.

The company will announce final Q3 2025 results on February 3, 2025, after market close, followed by a live webcast on February 4, 2025, at 11:00 a.m. Eastern time. Investors can participate through the company's website or register for the live call.

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Capital Southwest (Nasdaq: CSWC) has received a 'green light' letter from the U.S. Small Business Administration (SBA) to apply for its second SBIC license. If approved, this would provide access to an additional $175 million in growth capital through SBA-guaranteed debentures, bringing the total SBIC program borrowing capacity to $350 million.

The SBA debentures come with ten-year maturities and fixed interest rates linked to the U.S. 10 Year Treasury rate. The company received its first SBIC license in April 2021, which has been important to its lower middle market investment strategy. However, the green light letter does not guarantee final SBIC license approval or specify a timeframe for potential approval.

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Capital Southwest (CSWC) has announced the pricing of $200 million in 5.125% Convertible Notes due 2029, with an additional $30 million over-allotment option. The notes will pay quarterly interest and mature on November 15, 2029. The initial conversion rate is 40 shares per $1,000 principal amount, equivalent to a $25.00 per share conversion price, representing a 12% premium over the last reported stock price. The company expects net proceeds of approximately $193.6 million, which will be used to redeem its 4.50% Notes due 2026, repay revolving credit facility debt, and for general corporate purposes.

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Capital Southwest (Nasdaq: CSWC) has announced a registered public offering of unsecured convertible notes due 2029. The notes will pay quarterly interest and can be converted into cash, CSWC common stock, or a combination of both at the company's discretion. The specific terms, including interest rate and initial conversion rate, will be determined during pricing.

The company plans to use the proceeds to redeem its 4.50% Notes due 2026 and repay part of its senior secured revolving credit facility with ING Capital Oppenheimer & Co. is serving as the sole book-running manager for the offering, which is being conducted under Capital Southwest's automatic shelf registration statement.

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Capital Southwest (CSWC) reported financial results for Q2 FY2025 ended September 30, 2024. The company achieved pre-tax net investment income of $0.64 per share, fully covering both regular dividend of $0.58 and supplemental dividend of $0.06. Total investment portfolio reached $1.5 billion, with 98% in first-lien senior secured debt. The company originated $89.8 million in new commitments during the quarter, including investments in four new portfolio companies. Net Asset Value (NAV) per share was $16.59. The Board declared a regular dividend of $0.58 and supplemental dividend of $0.05 per share for Q4 2024.

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Capital Southwest (Nasdaq: CSWC), an internally managed business development company, has announced its schedule for the Second Quarter 2025 Earnings Release and Conference Call. The company will release its Q2 2025 results on Monday, October 28, 2024, after market close. A live webcast is scheduled for Tuesday, October 29, 2024, at 11:00 a.m. Eastern time.

Investors can participate in the webcast through the Investor Relations section of Capital Southwest's website or by accessing a specific web-page. For those who wish to join the call and ask questions, registration is required through a provided URL. Registered participants will receive dial-in numbers and a unique PIN for call access. Registration remains open even after the event has started.

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Capital Southwest (CSWC) has announced a significant expansion of its Corporate Credit Facility. The company has increased total commitments from $460 million to $485 million, representing a $25 million increase under the existing accordion feature. This expansion was facilitated by the addition of one new lender, bringing the total number of participants in the bank syndicate to 11. The Corporate Credit Facility's accordion feature allows for potential future growth, with maximum commitments of up to $750 million.

This increase in the credit facility enhances Capital Southwest's capacity to provide flexible financing solutions for middle market businesses, supporting their acquisition and growth strategies. The expansion of the credit facility demonstrates the company's continued ability to attract lender support and potentially signals confidence in its business model and growth prospects.

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FAQ

What is the current stock price of Capital Southwest (CSWC)?

The current stock price of Capital Southwest (CSWC) is $23.29 as of February 28, 2025.

What is the market cap of Capital Southwest (CSWC)?

The market cap of Capital Southwest (CSWC) is approximately 1.2B.

What is Capital Southwest Corp's primary business?

Capital Southwest Corp is an internally-managed Business Development Company (BDC) that focuses on providing credit and financing solutions to middle-market companies.

Where is Capital Southwest Corp headquartered?

Capital Southwest Corp is headquartered in Dallas, Texas.

What is the investment criteria for Capital Southwest Corp?

The company looks for investments of $5 to $50 million, with individual commitments ranging from $5 to $20 million per deal. The target companies should have a minimum EBITDA of $3 million, a proven management team, an established market position, and a history of positive cash flow.

What types of investment structures does Capital Southwest Corp offer?

Capital Southwest Corp offers unitranche debt, first lien debt, second lien, subordinated debt, preferred stocks, common stocks, and warrants.

What are the main sources of revenue for Capital Southwest Corp?

The primary sources of revenue for Capital Southwest Corp include interest income, dividend income from its investments, and management fees.

What were the financial highlights for Q2 FY2024?

Capital Southwest Corp reported a pre-tax net investment income of $0.67 per share and declared a regular dividend of $0.57 per share and a supplemental dividend of $0.06 per share for the quarter ended December 31, 2023.

What were the financial highlights for Q3 FY2024?

For Q3 FY2024, Capital Southwest Corp reported a pre-tax net investment income of $0.72 per share and maintained consistent dividend payouts.

When is the next scheduled call for Capital Southwest Corp?

The next scheduled calls are set for January 30, 2024, and May 15, 2024.

What are forward-looking statements?

Forward-looking statements are projections about future company performance and financial conditions. These are based on current expectations and subject to various risks and uncertainties.

Where can I find more detailed information about the risks associated with Capital Southwest Corp?

Detailed information about the risks can be found in the company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (SEC).
Capital Southwest

Nasdaq:CSWC

CSWC Rankings

CSWC Stock Data

1.17B
48.29M
4.39%
26.66%
2.79%
Asset Management
Financial Services
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United States
DALLAS