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.
Capital Southwest Corporation (CSWC) will announce its fourth quarter and fiscal year 2023 results on May 22, 2023, after market close. A conference call is scheduled for May 23, 2023, at 11:00 a.m. Eastern Time. This event will be accessible via a live webcast and phone call for investors. The company, based in Dallas, Texas, manages approximately $1.2 billion in investments as of December 31, 2022. Capital Southwest focuses on middle-market lending with investment sizes between $5 million and $35 million, utilizing various financing structures. Shareholders are encouraged to participate in the call for insights into the company’s performance and strategy.
Capital Southwest Corporation (Nasdaq: CSWC) has released preliminary operating results for the fourth quarter of its 2023 fiscal year, ending March 31, 2023. The company estimates a pre-tax net investment income between $0.64 and $0.65 per share, with net investment income slightly lower, estimated at $0.63 to $0.64 per share. The preliminary net asset value per share is estimated to be between $16.30 and $16.40. Additionally, regulatory leverage is estimated to be in the range of 0.86x to 0.90x debt-to-equity. As an internally managed business development company, Capital Southwest focuses on providing flexible financing solutions for middle-market businesses.
Capital Southwest Corporation (Nasdaq: CSWC) announced that Moody’s Investors Service has assigned it a Baa3 long-term issuer rating with a stable outlook. This rating reflects the company's robust capitalization, strong recurring earnings, and a first-lien focused investment portfolio. Moody’s expects the company will maintain sufficient liquidity and adhere to its regulatory leverage targets. CEO Bowen Diehl expressed pride in this validation of their investment strategy and credit management.
As of December 31, 2022, Capital Southwest maintained approximately $1.2 billion in investments at fair value, indicating its strong position in the middle market financing sector.
Capital Southwest Corporation (CSWC), a business development company, announced the federal income tax treatment of its 2022 dividends, totaling $2.18 per share, entirely comprised of ordinary income. This includes net short-term capital gains. The dividends, with a record date of March 15, 2022, and a payment date of March 31, 2022, show that 89.74% are interest-related and short-term capital gains, exempting non-U.S. residents from U.S. withholding tax. The tax characteristics of the dividends can be found on their website for further transparency.
Capital Southwest Corporation (CSWC) reported a Pre-Tax Net Investment Income of $0.60 per share for the quarter ended December 31, 2022. The total investment portfolio reached $1.2 billion, with a credit portfolio of $990.3 million, primarily in 1st Lien Senior Secured Debt. The company generated $32.8 million in total investment income, an increase from $26.8 million in the previous quarter. CSWC's total dividends for the quarter amounted to $0.57 per share. Newly committed investments totaled $160.5 million, while net realized and unrealized depreciation reached $16.4 million.
The company’s stockholders can anticipate a regular dividend of $0.53 per share and a supplemental dividend of $0.05 per share for the next quarter.
Capital Southwest Corporation (Nasdaq: CSWC) will release its third quarter 2023 results on January 30, 2023, after market close. A live webcast is scheduled for January 31, 2023, at 11:00 a.m. ET, where investors can participate. The company focuses on providing financial solutions for middle market businesses, with approximately $1.1 billion in investments at fair value as of September 30, 2022. Interested participants can register online for the call and access the webcast via the company's website.
Capital Southwest Corporation (CSWC) reported raising approximately $172 million in net proceeds during Q4 2022. Gross equity proceeds totaled $104.3 million, with a weighted average price of $17.99, surpassing the prevailing NAV per share. The company secured a $50 million commitment from the Small Business Administration, raising total SBA leverage to $130 million. Additionally, it increased its senior secured revolving credit facility by $20 million, now totaling $400 million in commitments.
Capital Southwest Corporation (NASDAQ: CSWC) has successfully closed a public offering of 2,534,436 shares at $18.15 per share, receiving approximately $44.0 million in net proceeds. This total includes the full exercise of the underwriters' option for an additional 330,579 shares. The funds will be used to repay outstanding debt, invest according to its strategies, and cover general corporate expenses. The offering was underwritten by major firms including Raymond James and Goldman Sachs.
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.
Capital Southwest Corporation (NASDAQ: CSWC) has priced an underwritten public offering of 2,203,857 shares at $18.15 each, with a potential additional 330,579 shares for underwriters. Expected net proceeds are approximately $38.2 million, aimed at repaying debt and making new investments. The offering is set to close on November 17, 2022, subject to customary conditions. Joint book-runners include Raymond James and UBS, among others. Investors are advised to review relevant risk factors in the company's prospectus.
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