Capital Southwest Increases Credit Facility to $380 million

Rhea-AI Summary

On May 11, 2022, Capital Southwest Corporation (Nasdaq: CSWC) announced an amendment to its senior secured credit facility, increasing total commitments from $335 million to $380 million. This adjustment involved a $45 million increase, facilitated by the existing lender group of ten participants. The benchmark interest rate has shifted from LIBOR to Term SOFR. As of December 31, 2021, Capital Southwest reported approximately $877 million in investments at fair value, focusing on financing middle market businesses with flexible solutions.

Positive

• Increase in total commitments from $335 million to $380 million.
• Successful amendment to senior secured credit facility with ten existing lenders.
• Shift from LIBOR to more stable Term SOFR interest rate.

Negative

• None.

DALLAS, May 11, 2022 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (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 an amendment to its senior secured credit facility (the “Credit Facility”). The amendment increased the total commitments from $335 million to $380 million and changed the benchmark interest rate from LIBOR to Term SOFR. The $45 million increase in total commitments was provided by the existing lender group, which consists of ten participants.      

About Capital Southwest

Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $877 million in investments at fair value as of December 31, 2021. 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 million to $35 million in securities across the capital structure, including first lien, second lien, 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 statements that constitute forward-looking, which relate to future events or Capital Southwest’s future performance or financial condition. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "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 related to: changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; regulatory changes; tax treatment and general economic and business conditions; and uncertainties associated with the continued impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.

Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2021 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission 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.

Investor Relations Contact:

Michael S. Sarner, Chief Financial Officer
214-884-3829

FAQ

What is the recent announcement from Capital Southwest Corporation on May 11, 2022?

Capital Southwest announced an increase in its senior secured credit facility commitments from $335 million to $380 million.

How much was the increase in Capital Southwest's credit facility?

The increase in the credit facility was $45 million.

What benchmark interest rate did Capital Southwest change to?

Capital Southwest changed the benchmark interest rate from LIBOR to Term SOFR.

What was the fair value of investments reported by Capital Southwest as of December 31, 2021?

Capital Southwest reported approximately $877 million in investments at fair value.