Capital Southwest Corp. has closed a public offering of $50 million of its 5.95% notes due Dec. 15, 2022, resulting in net proceeds of $48.5 million.
Interest is payable quarterly on March 15, June 15, Sept. 15 and Dec. 15 of each year, starting March 15, 2018. Capital Southwest also granted the underwriters the option to buy an additional $7.5 million of the notes within 30 days of Dec. 12.
Capital Southwest plans to use the net proceeds to repay outstanding debt under its existing credit facility. Through reborrowings under its credit facility, the company plans to make investments in lower-middle-market and upper-middle-market portfolio companies, to make investments in marketable securities and other temporary investments, and for other general corporate purposes, including paying operating expenses.
As of Dec. 12, the company had $86.0 million of debt outstanding under its credit facility, which matures Nov. 16, 2021.
Keefe Bruyette & Woods Inc. acted as sole book-running manager. Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc. acted as lead managers. BB&T Capital Markets and B. Riley FBR Inc. acted as co-managers.