Capital Southwest Announces Proposed Convertible Notes Offering

Capital Southwest Announces Proposed Convertible Notes Offering

Benzinga
November 4, 2024

DALLAS, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ:CSWC) ("Capital Southwest") today announced the commencement of a registered public offering of unsecured convertible notes due 2029 (the "notes") in an underwritten offering (the "offering").

The notes will be unsecured obligations of Capital Southwest, will accrue interest payable quarterly in arrears and will mature in 2029, unless earlier converted, redeemed or repurchased. Upon conversion, Capital Southwest will pay or deliver, as the case may be, cash, shares of Capital Southwest's common stock or a combination of cash and shares of Capital Southwest's common stock, at Capital Southwest's election. The interest rate, initial conversion rate, redemption or repurchase rights and other terms of the notes will be determined at the time of pricing of the offering.

Capital Southwest expects to use the net proceeds from the offering to redeem in full its 4.50% Notes due 2026, to repay a portion of the outstanding indebtedness under its senior secured revolving credit facility with ING Capital LLC, and for general corporate purposes.

Oppenheimer & Co. is acting as sole book-running manager for the proposed offering.

The proposed offering is being conducted pursuant to Capital Southwest's automatic shelf registration statement on Form N-2, including a base prospectus, that was filed with the Securities and Exchange Commission (the "SEC") on October 29, 2024 and became effective upon filing. A preliminary prospectus and accompanying prospectus relating to the ...

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