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), a business development company, will release its fourth quarter and fiscal year 2022 results on May 23, 2022. A conference call is scheduled for May 24, 2022, at 11:00 a.m. Eastern Time, where investors can join via phone or live webcast. The company focuses on providing financing solutions to middle-market businesses, with approximately $877 million in investments as of December 31, 2021. The press release includes forward-looking statements and highlights potential risks, including the ongoing impacts of the COVID-19 pandemic.
Capital Southwest Corporation (Nasdaq: CSWC) announced the tax treatment of its 2021 dividends, totaling $2.56 per share, all classified as ordinary income. The dividends were paid out to shareholders in accordance with tax regulations, with approximately 87.40% qualifying as interest-related and short-term capital gains, exempting non-U.S. shareholders from U.S. withholding tax. This information is critical for tax planning for both U.S. and non-U.S. investors, and detailed records of the dividends are available on the company’s website.
Capital Southwest Corporation (CSWC) announced its third fiscal quarter results for 2022, reporting a pre-tax net investment income of $11.8 million, or $0.51 per share. The total investment portfolio reached $876.8 million, with a 91% allocation in 1st lien senior secured debt. The average yield on debt investments was 9.5%. The Company declared dividends of $0.97 per share for the quarter, and its net asset value per share stood at $16.19. Record deal activity included approximately $268.3 million in new commitments, resulting in $7.4 million in realized gains.
Capital Southwest Corporation (Nasdaq: CSWC) will release its third quarter 2022 results on January 31, 2022, after market close. A conference call is scheduled for February 1, 2022, at 11:00 a.m. Eastern Time, allowing investors to participate via phone or webcast. As of September 30, 2021, Capital Southwest has approximately $818 million in investments at fair value and focuses on financing middle market businesses with $5 million to $25 million investments. Investors are encouraged to prepare for the call and review forward-looking statements related to market risks and uncertainties.
Capital Southwest Corporation (Nasdaq: CSWC) announced its investment in The Producto Group by providing a senior secured first lien term loan and a minority equity investment, supporting Culper Capital Partners' acquisition strategy. Producto Group, formed from Ring Precision Components, New Vision Industries, and Dieco, focuses on contract manufacturing and precision tooling for industries like medical, aerospace, and defense. With around $818 million in investments, Capital Southwest aims to drive growth in middle market businesses.
Capital Southwest Corporation (CSWC) announced on December 22, 2021, its backing of Xyresic Capital’s acquisition of Tele-Town Hall LLC with secured financing. The deal includes a senior secured first lien term loan and a second lien term loan, with Capital Southwest acting as the sole administrative agent. TTH specializes in mass communication solutions and has built a strong reputation for its services. Capital Southwest, with approximately $818 million in investments at fair value, focuses on flexible financing for middle-market businesses.
Capital Southwest (CSWC) announced its backing of Hidden Harbor Capital Partner’s refinancing of Air Conditioning Specialist, Inc. with a senior secured term loan and minority equity co-investment. Capital Southwest will lead the financing and serve as the sole administrative agent. ACS is recognized as a premier HVAC services provider in Georgia, operating for over 50 years. Capital Southwest manages approximately $818 million in investments and remains focused on supporting middle market businesses' growth.
Capital Southwest Corporation (NASDAQ: CSWC) announced a priced public offering of $50 million in 3.375% notes due 2026. The notes will be issued at 99.993% of the principal amount and bear interest payable semi-annually. The company plans to use the net proceeds to repay part of its senior secured revolving credit facility, which currently has $195 million outstanding. The offering is set to close on November 9, 2021, with details available in the preliminary prospectus filed with the SEC.
Capital Southwest Corporation (CSWC) reported Pre-Tax Net Investment Income of $0.45 per share for the quarter ended September 30, 2021, with total investment income rising to $20.3 million. The company declared a total dividend of $0.97 per share for the quarter ended December 31, 2021, including a regular dividend of $0.47 and a supplemental dividend of $0.50. CSWC's total investment portfolio reached $818.2 million, with a credit portfolio of $689.4 million. However, the company incurred a realized loss of $17.1 million on debt extinguishment.
Capital Southwest Corporation (Nasdaq: CSWC) announces it will release its Q2 2022 results on November 1, 2021, after market close. A conference call to discuss the results is scheduled for November 2, 2021, at 11:00 a.m. ET. Investors can join via phone or audio webcast. The company, based in Dallas, manages approximately $799 million in investments, focusing on middle market businesses with investments ranging from $5 million to $25 million. Forward-looking statements are included, cautioning about various risks such as market fluctuations and the impact of the COVID-19 pandemic.
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