Capital Southwest Increases Credit Facility to $400 million

Rhea-AI Summary

Capital Southwest Corporation (Nasdaq: CSWC) announced a $20 million increase in its senior secured revolving credit facility, raising total commitments from $380 million to $400 million. This increase involved one existing lender and one new lender, expanding the bank syndicate to 11 participants. As of September 30, 2022, Capital Southwest holds approximately $1.1 billion in investments at fair value, focusing on flexible financing solutions for middle market businesses. The company remains committed to supporting growth in its portfolio while navigating various market risks.

Positive

• Increase of $20 million in senior secured credit facility, enhancing liquidity.
• Total commitments now at $400 million, indicating strong lender confidence.
• Expansion of bank syndicate to 11 participants, reflecting diversified funding sources.

Negative

• Market risks and uncertainties could affect investment opportunities.
• Potential impacts from COVID-19 pandemic on financial and operational performance.

DALLAS, Nov. 16, 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 increase to its senior secured revolving credit facility (the “Credit Facility”). The Credit Facility was increased under the existing accordion feature by $20 million, bringing the total commitments from $380 million to $400 million. The $20 million increase was provided by one existing lender and one new lender, bringing the total bank syndicate to 11 participants.

About Capital Southwest

Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.1 billion in investments at fair value as of September 30, 2022. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $35 million investments 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 contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. 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: the adequacy of Capital Southwest’s cash resources and working capital; changes in the markets in which Capital Southwest invests; changes in the financial, capital, and lending markets; changes in the interest rate environment; regulatory changes; tax treatment and general economic and business conditions; an economic downturn and its impact on the ability of Capital Southwest’s portfolio companies to operate and the investment opportunities available to Capital Southwest Corporation; and uncertainties associated with the 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, 2022 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 recent financial development occurred for Capital Southwest Corporation (CSWC) in November 2022?

Capital Southwest announced a $20 million increase in its senior secured revolving credit facility, raising total commitments to $400 million.

How much does Capital Southwest Corporation currently have in investments?

As of September 30, 2022, Capital Southwest holds approximately $1.1 billion in investments at fair value.

What is the purpose of the increased credit facility for CSWC?

The increase supports flexible financing solutions for the acquisition and growth of middle market businesses.

How many lenders are now part of Capital Southwest's bank syndicate?

The bank syndicate has expanded to 11 participants after the recent credit facility increase.

What risks does Capital Southwest Corporation face according to its recent press release?

Risks include market uncertainties, changes in financial markets, and potential impacts from the COVID-19 pandemic.