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Capital Southwest Corporation Prices Public Offering of $100 million 3.375% Notes due 2026
DALLAS, Aug. 24, 2021 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”, “we”, “us” and “our”) is pleased to announce that
About this update from Capital Southwest Corporation
[{"type":"text","content":"DALLAS, Aug. 24, 2021 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”, “we”, “us” and “our”) is pleased to announce that it has priced an underwritten public offering of $100 million in aggregate principal amount of 3.375% notes due 2026 (the “Notes”). The Notes will bear interest at a rate of 3.375% per year, payable semi-annually, will mature on October 1, 2026 and may be redeemed in whole or in part at Capital Southwest’s option at any time prior to July 1, 2026, at par plus a “make-whole” premium, and thereafter at par. The Notes will be issued at a price of 99.418% of the aggregate principal amount 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 from this offering and borrow under its senior secured revolving credit facility to redeem all of its outstanding 5.375% notes due 2024 (the “2024 Notes”). As of August 23, 2021, Capital Southwest had $125.0 million in aggregate principal amount of indebtedness outstanding under the 2024 Notes. 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 pleased with our execution in raising $100 million in long-term unsecured capital. This transaction allows us to redeem the outstanding 2024 Notes, reducing our cost of debt by 2%. We expect that, on an adjusted basis reflecting the issuance of the 2026 Notes, our quarterly interest expense will be reduced by approximately $0.02 per share, which will be beneficial to shareholders in future quarters. Additionally, this capital raise and redemption pushes out our next debt maturity to 2026, providing significant capital flexibility going forward.” Investors should carefully consider, among other things, Capital Southwest’s investment objective and strategies and the risks related to Capital Southwest and the offering before investing. The pricing term sheet dated August 24, 2021, the preliminary prospectus supplement dated August 24, 2021, and the accompanying prospectus dated August 15, 2019, each of which has been ...