Capital Southwest Corp. issued and sold $10 million of its 5.375% notes due Oct. 1, 2024.
The transaction, which closed Oct. 8, resulted in net proceeds to the company of approximately $9.8 million.
The company plans to use the net proceeds to repay outstanding debt under its senior secured revolving credit facility. However, through re-borrowings under the facility, Capital Southwest intends to make investments in lower middle-market and upper middle-market portfolio companies, marketable securities and other temporary investments, and for other general corporate purposes, including payment of operating expenses.
Interest is payable semiannually in arrears on April 1 and Oct. 1 of each year, starting April 1, 2020. The company may redeem the notes in whole or in part at its option at any time before July 1, 2024, at par plus a make-whole premium, and thereafter at par.
Raymond James & Associates Inc. was the sole underwriter for the offering of the notes, which are being treated as a single series with the $65 million of notes due 2024 that Capital Southwest issued Sept. 27.
