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 Corporation (CSWC) is a leading credit-focused business development company providing flexible financing solutions to middle market businesses. This news hub offers investors and financial professionals centralized access to official corporate announcements, strategic developments, and market-moving updates.
Track CSWC's latest financial performance through quarterly earnings reports, dividend declarations, and portfolio company updates. Stay informed about new credit facility agreements, strategic investments, and leadership changes that shape the company's position in middle market lending. Our curated collection ensures timely access to SEC filings, press releases, and material event disclosures.
Key updates include debt financing transactions, portfolio company acquisitions, and capital allocation strategies. The page serves as an essential resource for monitoring CSWC's credit performance metrics, risk management initiatives, and dividend distribution history. Bookmark this page for convenient access to the company's evolving financial narrative and regulatory disclosures.
Capital Southwest (Nasdaq: CSWC) announced that its subsidiary, Capital Southwest SBIC II, LP, has received a Small Business Investment Company (SBIC) license from the U.S. Small Business Administration. This marks the company's second SBIC license, following its first in April 2021.
The new license enables SBIC II to issue SBA-guaranteed debentures up to $175 million, bringing Capital Southwest's total SBIC program borrowing capacity to $350 million. These debentures feature semi-annual interest payments and ten-year maturity, with interest rates fixed at a spread over ten-year U.S. Treasury Notes.
The company received exemptive relief from the SEC, allowing the exclusion of SBA-guaranteed debentures from senior securities in asset coverage requirements.
Capital Southwest (Nasdaq: CSWC) has released preliminary operating results for Q4 FY2025 (ended March 31, 2025). The company incurred $2.8 million ($0.05 per share) in one-time expenses related to their former CEO's departure.
Key preliminary estimates include:
- Pre-tax net investment income: $0.55-0.56 per share
- Net investment income: $0.54-0.55 per share
- Adjusted pre-tax net investment income (excluding one-time expenses): $0.60-0.61 per share
- Adjusted net investment income: $0.59-0.60 per share
- Net asset value per share: $16.65-16.75
- Non-accruals: 3.5% of portfolio at cost, 1.7% at fair value
The company will release final Q4 2025 results on May 14, 2025, after market close, followed by a webcast on May 15, 2025.
Capital Southwest (Nasdaq: CSWC) has announced a significant expansion of its senior secured credit facility, increasing total commitments by $25 million to reach $510 million. The expansion was executed through the existing accordion feature, with two current lenders from the 11-participant lender group providing the additional funding.
The internally managed business development company, which specializes in flexible financing solutions for middle market businesses, maintains the ability to further expand the facility up to $750 million through the existing accordion feature. This increase from the previous $485 million commitment strengthens Capital Southwest's lending capacity for supporting business acquisitions and growth initiatives.
Capital Southwest (Nasdaq: CSWC) has received an affirmed investment grade rating of Baa3 with a stable outlook from Moody's Investors Service. The rating affirmation reflects the company's strong fundamentals, including:
- Strong capitalization
- Diverse funding profile
- First-lien oriented investment portfolio
- Recurring earnings generation
- Internally managed structure
The business development company (BDC) focuses on providing flexible financing solutions to support middle market businesses' acquisition and growth.
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.
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.
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.
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.
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.
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.
