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) announced its support for Enhanced Healthcare Partners in refinancing NeuroPsychiatric Hospitals (NPH). As the sole administrative agent in this credit facility, CSWC is contributing to NPH's expansion, which focuses on providing care for patients with complex psychiatric and medical needs. CSWC's net assets were approximately $336 million as of March 31, 2021, and it specializes in middle market lending, offering flexible financing solutions ranging from first lien to non-control equity co-investments.
Capital Southwest Corporation (CSWC) reported a pre-tax net investment income of $0.44 per share for the quarter ending March 31, 2021, with total investment income of $17.2 million. The company increased its regular dividend to $0.43 per share, totaling $0.52 per share for the quarter. Their total investment portfolio reached $688.4 million, a 24.5% year-over-year growth. The NAV per share increased to $16.01. Cash and cash equivalents stood at $31.6 million. CSWC also received its Small Business Investment Company license in April 2021.
Capital Southwest Corporation (CSWC) announced its backing of BRS & Co.'s majority recapitalization of Shearwater Research. This financing includes a revolving credit facility, first lien term loan, delayed draw term loan, and a minority equity co-investment, with Capital Southwest as the lead and sole administrative agent. Shearwater, known for its dive computers, aims to accelerate growth as dive travel resumes amid lifting travel restrictions. With net assets of approximately $313 million, Capital Southwest focuses on supporting middle-market businesses through flexible financing solutions.
Capital Southwest Corporation (CSWC) will announce its fourth quarter and fiscal year 2021 financial results on May 25, 2021, after market close. A conference call is scheduled for May 26, 2021, at 11:00 a.m. Eastern Time for investors to discuss the results. As of December 31, 2020, Capital Southwest reported approximately $313 million in net assets, focusing on providing flexible financing solutions to middle market businesses. The company emphasizes its capacity for creative financing to support the growth of portfolio companies over extended periods.
Capital Southwest Corporation (Nasdaq: CSWC) announced that its subsidiary, Capital Southwest SBIC I, LP, has received a license from the U.S. Small Business Administration to operate as a Small Business Investment Company (SBIC). This licensing allows the subsidiary to issue SBA-guaranteed debentures totaling up to $175 million. The SBIC status enhances Capital Southwest's ability to provide flexible financing solutions, particularly supporting underserved markets and diverse business ownership. CEO Bowen Diehl emphasized the strategic importance of this move for middle-market lending.
Capital Southwest Corporation (Nasdaq: CSWC) has appointed Ramona L. Rogers-Windsor as an independent member of its board of directors, effective March 26, 2021. With over 38 years of experience in financial services, including a significant tenure at Northwestern Mutual, she brings extensive expertise in investment management and financial risk underwriting. President Bowen Diehl expressed enthusiasm for her addition, citing her leadership experience and unique perspective. Capital Southwest focuses on providing flexible financing solutions for middle market businesses with net assets of approximately $313 million.
Capital Southwest Corporation (NASDAQ: CSWC) has announced a public offering of $65 million in 4.50% notes due 2026, priced at 102.11% of the principal amount, yielding approximately 4.0%. The offering will close on February 25, 2021, and the proceeds will be used to repay outstanding credit facility debt, while enabling re-borrowing for investments in lower and upper middle market companies. Post-offering, the total outstanding 4.50% notes due 2026 will be $140 million. The notes will bear interest payable semi-annually and may be redeemed at Capital Southwest's discretion.
Capital Southwest (CSWC) announced the tax treatment of its 2020 dividends, amounting to a total of $2.04 per share. These dividends consist of 100% ordinary income, with 91.82% taxed as ordinary income and 8.18% as qualified dividends. Non-corporate shareholders may benefit from favorable tax treatment, with a maximum federal income tax rate of 20% plus a potential 3.8% Medicare surtax. For more detailed information, the company has provided comprehensive tax characteristics on its website.
Capital Southwest Corporation (CSWC) reported a strong financial performance for the third fiscal quarter ending December 31, 2020, with a pre-tax net investment income of $10.0 million, or $0.52 per share. The investment portfolio totaled $648.8 million, with a credit portfolio of $531.1 million and a weighted average yield of 10.6%. The company declared total dividends of $0.52 per share for the quarter ended March 31, 2021. Additionally, CSWC executed significant capital commitments totaling $91 million and improved its net asset value to $15.74 per share.
Capital Southwest Corporation (Nasdaq: CSWC) will release its third quarter 2021 results on February 1, 2021, after market close. A conference call is scheduled for February 2, 2021, at 11:00 a.m. Eastern Time, allowing investors to participate via phone or webcast. Capital Southwest focuses on providing flexible financing solutions, with approximately $286 million in net assets as of September 30, 2020. The company emphasizes supporting middle market businesses with $5 to $25 million investments across various financing structures.
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