Capital Southwest prices $350M notes offering at 6.75% due 2031

Capital Southwest Corporation (NASDAQ: CSWC) has priced an underwritten public offering of $350 million in aggregate principal amount of 6.750% notes due 2031, according to a press release from the Dallas-based business development company.

The notes will bear interest at 6.750% per year, payable semi-annually, and will mature on September 15, 2031. They were issued at 98.985% of the aggregate principal amount, resulting in a yield-to-maturity of 6.994%.

The notes may be redeemed at the company's option at any time prior to August 15, 2031, at par plus a make-whole premium, and thereafter at par. The offering is expected to close on September 15, 2026, subject to customary closing conditions.

Capital Southwest said it intends to use the net proceeds to repay a portion of the outstanding indebtedness under its senior secured revolving credit facility. The company also stated it intends to make investments through re-borrowings under that facility, in accordance with its investment objective and strategies, and for general corporate purposes.

Deutsche Bank Securities, Huntington Securities, ING Financial Markets, Morgan Stanley, RBC Capital Markets, and Wells Fargo Securities are acting as active bookrunners. Oppenheimer & Co. is acting as passive bookrunner, and Zions Direct is acting as co-manager.

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