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 O2 Investment Partners' investment in Flip Electronics, providing a first lien term loan and equity co-investment. Capital Southwest acts as the term loan agent, with PNC Bank and Main Street Capital Corporation also involved in the financing. Flip Electronics specializes in distributing electronic components, focusing on end-of-life and hard-to-find parts. This partnership aims to strengthen Flip's growth in critical supply chains across multiple industries, including military and aerospace.
Capital Southwest Corporation (Nasdaq: CSWC) announced its support for Amware Fulfillment's acquisition of Moulton Logistics through an incremental senior secured first lien term loan. Amware, a portfolio company since 2016, aims to enhance its footprint and customer base. Moulton, established in 1968, provides e-commerce fulfillment and retail distribution services from facilities in California and New Jersey. Capital Southwest, with approximately $286 million in net assets, focuses on middle market businesses, offering flexible financing solutions for growth and acquisitions.
Capital Southwest Corporation (NASDAQ: CSWC) has announced a $75 million underwritten public offering of 4.50% notes due 2026. These notes will bear interest at a rate of 4.50% per year, payable semi-annually, maturing on January 31, 2026, with redemption options available. The proceeds will be used to redeem existing higher-interest notes and repay credit facility debt, with additional funds allocated to investments in middle-market companies. The offering is set to close on December 29, 2020.
Capital Southwest Corporation (CSWC) announced its support for the acquisition of Broad Sky Networks, Inc. by IntelliSite Corporation, facilitated through first lien financing and equity co-investment. The transaction creates EPIC IO Technology, comprising Broad Sky and IntelliSite as independent subsidiaries, focusing on IoT, wireless connectivity, and AI services. The partnership aims to enhance a technology services platform and expand market reach. Capital Southwest, with approximately $286 million in net assets, continues to provide flexible financing solutions for middle-market businesses.
Capital Southwest Corporation (Nasdaq: CSWC) announced its support for Mountaingate Capital's investment in Acceleration Partners LLC through a senior secured first lien term loan and equity investment. This partnership aims to enhance Acceleration Partners' capabilities in the partner marketing industry. With approximately $286 million in net assets as of September 30, 2020, Capital Southwest focuses on middle market businesses, offering financing solutions ranging from $5 to $25 million. The financing deal highlights a collaborative approach in fostering growth in digital marketing services.
Capital Southwest Corporation (CSWC) reported a pre-tax net investment income of $0.44 per share for the second fiscal quarter ended September 30, 2020. The total investment portfolio stands at $631.2 million, with a significant 10.3% weighted average yield on debt investments. The company declared total dividends of $0.51 per share, covering 103% of its last twelve months pre-tax NII. The company's net asset value (NAV) per share increased from $14.95 to $15.36, driven by a net appreciation of $8.4 million in its portfolio.
Capital Southwest Corporation (Nasdaq: CSWC) announced its support for Cohere Capital's investment in Sonobi, Inc., providing a first lien term loan and equity co-investment. Capital Southwest led the financing and will serve as the sole administrative agent on the credit facility. This partnership enhances Sonobi's role in the digital advertising ecosystem, enabling advertisers to access over 125 million people without cookies. Capital Southwest, backed by approximately $278 million in net assets as of June 30, 2020, continues to focus on flexible financing solutions for middle market businesses.
Capital Southwest Corporation (Nasdaq: CSWC) has announced it will release its Q2 2021 financial results on October 30, 2020, post-market closure. A conference call is scheduled for November 2, 2020, at 11:00 a.m. ET, allowing investors to participate via phone or webcast. The company, focused on providing financing solutions for middle-market businesses, reported approximately $278 million in net assets as of June 30, 2020. The call will review financial performance and forecasts amidst ongoing economic challenges, including the impacts of the COVID-19 pandemic.
Capital Southwest Corporation (CSWC) announced its support for Align Capital Partners' acquisition of Electronic Transaction Consultants Corporation (ETC) from Atlantia SpA. The deal includes a revolver, first lien term loan, and equity co-investment, with Capital Southwest acting as the administrative agent. ETC, based in Texas, provides electronic tolling technology and smart mobility solutions, leveraging AI and big data. This strategic partnership aims to enhance ETC's technology investments and market position.
Capital Southwest Corporation (NASDAQ: CSWC) has announced a $50 million underwritten public offering of additional 5.375% notes due 2024, priced at 100% of the principal amount. This issuance increases the total outstanding 5.375% notes due 2024 to $125 million. Proceeds will be used to repay debt under its credit facility, currently at $197 million, with plans for further investments in lower and upper middle market portfolio companies, marketable securities, and general corporate purposes. The offering is expected to close on August 17, 2020.
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