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Capital Southwest Corporation prices public offering from

DALLAS, Aug. 24, 2021 (GLOBE NEWSWIRE) – Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest,” “we,” “us” and “our”) is pleased to announce that it has won the award for has set a guaranteed public offering of $ 100 million in a total face value of 3.375% Bonds maturing in 2026 (the “Bonds”). The bonds bear an interest rate of 3.375% per annum, payable semi-annually, are due on October 1, 2026 and, at Capital Southwest’s option, can be repaid in full or in part at any time before July 1, 2026, plus a make-whole “Premium and then at par. The Notes will be issued at a price of 99.418% of the total face value of the Notes, resulting in a yield to maturity of 3.5%. The offering is subject to customary closing conditions and is expected to close on August 27, 2021.

Capital Southwest intends to use the net proceeds of this offering to borrow under its senior secured revolving credit facility to repay all outstanding 5.375% bonds due in 2024 (the “2024 Notes”). As of August 23, 2021, Capital Southwest had a total notional amount of $ 125.0 million in outstanding debt under the 2024 bonds.

Raymond James & Associates, Inc. is acting as sole book running manager for this offering. Hovde Group, LLC, B. Riley Securities, Inc., ING Financial Markets LLC and JMP Securities LLC are acting as co-managers for this offering.

Michael Sarner, Chief Financial Officer, commented, “We are delighted with our performance in raising $ 100 million in long-term unsecured capital. This transaction allows us to repay the outstanding 2024 Notes and reduce our cost of debt by 2%. We anticipate our quarterly interest expense, on an adjusted basis, reflecting the issuance of the 2026 bonds, to decrease by approximately $ 0.02 per share, which will benefit shareholders in future quarters. In addition, this raising and repayment of capital will postpone our next debt maturity to 2026, providing significant capital flexibility for the future. “

Investors should carefully consider, among other things, Capital Southwest’s investment objective and strategies, as well as the risks associated with Capital Southwest and the Offering, before investing. The Pricing Termsheet dated August 24, 2021, the Provisional Supplement dated August 24, 2021, and the accompanying prospectus dated August 15, 2019, each filed with the Securities and Exchange Commission (the “SEC”) contain this and other information about Capital Southwest and should be read carefully before investing.

A shelf registration statement relating to these securities is on file with and has been declared effective by the SEC. The offer may only be made by means of a provisional supplement to the prospectus and an accompanying prospectus, copies of which, if available, can be obtained. free of charge on the SEC’s website at www.sec.gov or from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, by email: [email protected] or by calling 1-800-248-8863.

The information in the term sheet pricing, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and is subject to change. The Pricing Sheet, Provisional Prospectus Supplement, accompanying Prospectus and this press release do not constitute an offer to sell or a solicitation of an offer to buy, nor will any sale of the bonds referred to in this press release take place in any state or jurisdiction in which such offer is made such solicitation or sale prior to registration or qualification under the securities laws of that state or jurisdiction would be unlawful.


Capital Southwest Corporation is an internally managed business development company headquartered in Dallas, Texas, with net assets of approximately $ 338 million as of June 30, 2021. Capital Southwest is a medium-sized loan company focused on helping the acquisition and growth of medium-sized businesses Company concentrates businesses and makes $ 5 million to $ 25 million in securities investments across its capital structure, including first lien, second lien, and co-investments in uncontrolled equity. As a publicly traded firm with a firm capital base, Capital Southwest has the flexibility to be creative and invest in its financing solutions to support the growth of its portfolio companies over long periods of time.


This press release may contain certain forward-looking statements within the meaning of federal securities laws, including statements relating to Capital Southwest’s promissory note offer, the expected net proceeds from the offer, the expected use of the net proceeds from the offer, and the expected impact of this offer on our financial results. These statements are often, but not always, made through the use of words or phrases such as “will,” “may,” “might,” “expect” and similar expressions and variations or negations of those words. These statements are based on management’s current expectations, beliefs, and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those in the forward-looking statements. Such risks include risks identified in Capital Southwest’s filings with the SEC and risks related to, but not limited to: changes in the markets in which Capital Southwest invests; Changes in the financial, capital and credit markets; Regulatory changes; tax treatment and general economic and business conditions; Uncertainties related to the impact of the COVID-19 pandemic, including its impact on global and US capital markets and the world and US economies, the duration and duration of the COVID-19 outbreak in the United States and around the world, and the extent of the economic impact of this outbreak; and the impact of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve our respective goals, and the impact of the disruption caused by the COVID-19 pandemic on our ability to continue to run our business effectively. Readers are cautioned not to place undue reliance on forward-looking statements and are encouraged to read the preliminary supplement, the accompanying prospectus, and Capital Southwest’s other SEC filings for a more complete discussion of the risks and other factors that may affect forward-looking statements could. Except as required by federal securities laws, Capital Southwest undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances, or otherwise after the date of this press release.

Michael S. Sarner, CFO
[email protected]

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