DALLAS, Aug. 09, 2021 (GLOBE NEWSWIRE) — Capital Southwest Corporation (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced an amendment to its senior secured credit facility. The amendment reduced the interest rate on borrowings to LIBOR plus 2.15% from LIBOR plus 2.50%, increased the advance rate on unquoted first lien assets to 70% from 65%, and increased the Company’s allowable share repurchases by $20 million during the availability period, among other things. The end of the Credit Facility’s revolving period was extended from December 21, 2022 to August 9, 2025; and the final maturity was extended from December 21, 2023 to August 9, 2026.
In commenting on the amendment, Michael Sarner, Treasurer and Chief Financial Officer, stated, “We are appreciative of the continued support we have received from our lenders. We believe the amendment terms agreed to by our syndicate of lenders, specifically the 35 basis points spread reduction and the advance rate increase, demonstrates the confidence of our stakeholders in our investment strategy and performance to date. This amendment, coupled with our ability to fund originations with low cost SBA-guaranteed debentures issued to our wholly owned SBIC subsidiary, provides significant earnings power looking ahead.”
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $368 million in net assets as of June 30, 2021. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control 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.
