Financial basis

Capital Southwest Corporation assesses the public offering of


DALLAS, August 24, 2021 (GLOBE NEWSWIRE) – Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”, “we”, “our” and “our”) is pleased to announce that it has invested 100 million in aggregate principal amount of 3.375% Notes due 2026 (the “Notes”). The Notes will bear interest at 3.375% per annum, payable semi-annually, mature on October 1, 2026, and may be redeemed in whole or in part at the option of Capital Southwest at any time prior to July 1, 2026, at par plus one. “redemption” premium and subsequently at par. The Notes will be issued at a price of 99.418% of the total principal amount of the Notes, resulting in a yield to maturity of 3.5%. The offer 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 and borrow under its senior secured revolving credit facility to repay all of its outstanding 5.375% Notes due 2024 (the “Notes 2024 ”). As of August 23, 2021, Capital Southwest had an aggregate amount of $ 125.0 million in debt outstanding under the 2024 Notes.

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

Michael Sarner, Chief Financial Officer, said: “We are pleased with our execution in raising $ 100 million in long-term unsecured capital. This transaction allows us to buy back the outstanding 2024 Bonds, reducing our cost of debt by 2%. We expect that, on an adjusted basis to reflect the issuance of the 2026 Notes, our quarterly interest expense will be reduced by approximately $ 0.02 per share, which will benefit shareholders in the coming quarters. In addition, this capital increase and repurchase postpone our next debt maturity until 2026, offering significant capital flexibility in the future. “

Investors should carefully consider, among other things, Capital Southwest’s investment objective and strategies and the risks associated with Capital Southwest and the Offer before investing. The pricing terms 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 filed with the Securities and Exchange Commission (the “SEC ”), Contain this and other information about Capital Southwest and should be read carefully before investing.

An in-store registration statement relating to these securities is filed with the SEC and has been declared effective by the SEC. The offer may only be made by means of a preliminary prospectus supplement and accompanying prospectus, copies of which may be obtained, when available, for free by visiting the SEC website at or of Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, by email: [email protected] or by calling: 1-800-248-8863.

The information contained in the pricing schedule, the provisional prospectus supplement, the accompanying prospectus and this press release are not complete and may be amended. The Pricing Schedule, the preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute offers to sell or the solicitation of offers to buy, and there will be no sale of the tickets mentioned in this press release, in any condition whatsoever. or jurisdiction in which such offering, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that state or jurisdiction.


Capital Southwest Corporation is an internally managed business development company based in Dallas, Texas with approximately $ 338 million in net assets as of June 30, 2021. Capital Southwest is a mid-market lending company focused on supporting acquisition and growth of the middle market. companies and makes investments ranging from $ 5 million to $ 25 million in securities across the capital structure, including first, second lien and non-controlling equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest 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 regarding the offering of Capital Southwest Notes, the expected net proceeds of the offering, the intended use of the net proceeds of the offer and the expected impact of this offer on our financial results. These statements are often, but not always, made using words or phrases such as “will”, “may”, “might”, “expect” and similar expressions and variations or negatives of these words. These statements are based on the current expectations, assumptions and beliefs of management. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions which could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks identified in documents filed by Capital Southwest with the SEC and risks associated with, among others: changes in the markets in which Capital Southwest invests; changes in financial, capital and loan markets; regulatory changes; tax treatment and general economic and commercial conditions; uncertainties associated with the impact of the COVID-19 pandemic, including its impact on global and US capital markets and the global and US economy, the length and duration of the COVID-19 outbreak in states – United as well as the world and the magnitude of the economic impact of this epidemic; and the effect of the COVID-19 pandemic on our business outlook and the operational and financial performance of our portfolio companies, including our ability and ability to meet our respective objectives, and the effects of the disruption caused by the pandemic of COVID-19 on our ability to continue to effectively run our business. Readers should not place undue reliance on forward-looking statements and are encouraged to consult the preliminary prospectus supplement, the accompanying prospectus and other documents filed by Capital Southwest with the SEC for a more complete discussion of risks and other factors that could affect forward-looking statements. . Except as required by federal securities laws, Capital Southwest assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events, changing circumstances or for any other reason after the date of this release. Release.

Michael S. Sarner, Chief Financial Officer
[email protected]


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