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 (Nasdaq: CSWC) announced its support for DFW Capital Partners' investment in Industrial Security Integrators (IsI) through a revolving credit facility, first lien term loan, and minority equity co-investment. Capital Southwest will serve as the sole administrative agent for the financing. IsI, based in Herndon, VA, specializes in technology-based compliance and cybersecurity services, focusing on managed security, network services, and security control software. The transaction highlights Capital Southwest's commitment to finance middle-market growth, particularly in the cybersecurity sector.
Capital Southwest Corporation (Nasdaq: CSWC) announced its support for Eden Capital's acquisition of Wall Street Prep, Inc. (WSP) through a revolving credit facility, first lien term loan, and minority equity co-investment. Capital Southwest led this financing and will serve as the sole administrative agent. WSP, specializing in financial training, boasts a strong growth trajectory with over 10,000 professionals trained annually. Capital Southwest, focused on middle-market businesses, reported approximately $368 million in net assets as of June 30, 2021.
Capital Southwest Corporation (CSWC) announced an increase in its quarterly regular dividend to $0.47 per share for the quarter ending December 31, 2021, reflecting a 6.8% rise from the previous $0.44. Additionally, a final supplemental dividend of $0.50 per share will be paid, accelerating future payments under its supplemental dividend program. This decision stems from strong capital market activities and portfolio performance. The dividends are payable on December 31, 2021, with ex-dividend and record dates set for December 14 and December 15, respectively.
Capital Southwest Corporation (NASDAQ: CSWC) has announced a public offering of $100 million in 3.375% notes due in 2026. The notes are priced at 99.418% of principal, yielding 3.5%. Proceeds will be used to redeem outstanding 5.375% notes due 2024, reducing the company's debt cost by 2%. This transaction is expected to enhance shareholder value by lowering quarterly interest expenses by approximately $0.02 per share. The offering is set to close on August 27, 2021.
Capital Southwest Corporation (Nasdaq: CSWC) announced its support for Kainos Capital’s acquisition of Muenster Milling through a revolving credit facility, first lien term loan, and delayed draw term loan. Capital Southwest is the sole administrative agent in this financing deal. Muenster Milling, a fourth-generation family-owned pet food manufacturer, focuses on high-quality, innovative products. The partnership aims to leverage Muenster's positioning in the growing clean-label, high-protein pet food market.
Capital Southwest (Nasdaq: CSWC) announced its financing of Hybrid Apparel's acquisition of Air Waves via a split lien term loan. As the sole administrative agent for the credit facility, Capital Southwest collaborates with Altamont Capital Partners and Main Street Capital Corporation in this strategic partnership. Hybrid Apparel, a leading apparel distribution company, aims to enhance its service offering with Air Waves' print-on-demand capabilities, benefiting both companies. This acquisition is expected to bolster Hybrid's market position within the apparel industry.
Capital Southwest Corporation (CSWC) announced an amendment to its senior secured credit facility, reducing the interest rate from LIBOR plus 2.50% to LIBOR plus 2.15%. The advance rate on unquoted first lien assets increased to 70%, and share repurchases were permitted to rise by $20 million. Additionally, the revolving period and final maturity dates were extended to August 2025 and August 2026, respectively. CFO Michael Sarner expressed confidence in the amendment, citing lender support as an indicator of the Company’s investment strategy success.
Capital Southwest Corporation (CSWC) reported a pre-tax net investment income of $0.45 per share for the quarter ending June 30, 2021, reflecting a solid performance with $9.4 million in pre-tax net income. The company also increased its regular dividend to $0.44 per share, along with a supplemental dividend of $0.10. The total investment portfolio stood at $798.6 million, with a credit portfolio of $671.3 million. The net asset value per share rose to $16.58, and the company closed new commitments of approximately $139 million during the quarter.
Capital Southwest Corporation (Nasdaq: CSWC) is set to release its Q1 2022 earnings on August 2, 2021, post-market close. A conference call will follow on August 3, 2021, at 11:00 a.m. ET, allowing investors to engage via phone or webcast. The company, based in Dallas, focuses on flexible financing solutions for middle-market businesses, with approximately $336 million in net assets as of March 31, 2021. Forward-looking statements highlight the uncertainties faced, particularly from the COVID-19 pandemic, affecting market dynamics and financial performance.
Capital Southwest Corporation (CSWC) announced its support for New Harbor Capital's investment in Food Technology and Design, LLC (FoodPharma). This investment includes a revolving credit facility, first lien term loan, delayed draw term loan, and minority equity co-investment. FoodPharma specializes in functional foods, particularly in the soft chew category for bariatric nutrition, and has over 500 proprietary formulas. Capital Southwest, with approximately $336 million in net assets, focuses on providing financing solutions for middle-market businesses.
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