By Devika Patel
Knoxville, Tenn., Nov. 4 – Capital Southwest Corp. priced a $50 million add-on to its 3.375% notes (Egan-Jones: A-) due Oct. 1, 2026 at 99.993 to yield 3.375% on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced with a spread of 226 basis points over Treasuries.
The notes are a further issuance of the $100 million existing notes issued on Aug. 27.
Raymond James & Associates, Inc. is the bookrunner.
Proceeds will be used to repay a portion of the outstanding debt under the company’s credit facility.
The company plans on reborrowing on the credit facility, though, to make investments in accordance with its investment objective and strategies and for other general corporate purposes, including payment of operating expenses.
Capital Southwest is a Dallas-based middle market lender.
| Issuer: | Capital Southwest Corp.
|
| Amount: | $50 million reopening
|
| Description: | Senior notes
|
| Maturity: | Oct. 1, 2026
|
| Bookrunner: | Raymond James & Associates, Inc.
|
| Co-managers: | Ladenburg Thalmann & Co. Inc. and Oppenheimer & Co. Inc.
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Eversheds Sutherland (US) LLP
|
| Counsel to underwriter: | Dechert LLP
|
| Coupon: | 3.375%
|
| Price: | 99.993
|
| Yield: | 3.375%
|
| Spread: | Treasuries plus 226 bps
|
| Call feature: | Make-whole call at Treasuries plus 50 bps until July 1, 2026, then a par call
|
| Change of control: | At par
|
| Trade date: | Nov. 4
|
| Settlement date: | Nov. 9
|
| Rating: | Egan-Jones: A-
|
| Distribution: | SEC registered
|
| Cusip: | 140501AC1
|
| Total outstanding: | $150 million, including $100 million issued on Aug. 27
|
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