Capital Southwest Prices $350 Million Public Offering

DALLAS, Sept. 10, 2026 /CourierPR/ -- Capital Southwest Corporation has successfully priced a public offering of $350 million in 6.750% notes due in 2031. The notes will bear interest at a rate of 6.750% per year, payable semi-annually, and are expected to mature on September 15, 2031. The offering is anticipated to close on September 15, 2026, subject to customary closing conditions.

The company intends to use the net proceeds from this offering to repay a portion of the outstanding indebtedness under its senior secured revolving credit facility. However, through re-borrowings under the Corporate Credit Facility, Capital Southwest plans to make investments in accordance with its investment objective and strategies, and for other general corporate purposes, including the payment of operating expenses.

The notes will be issued to the public at a price of 98.985% of the aggregate principal amount, resulting in a yield-to-maturity of 6.994%. Deutsche Bank Securities Inc., Huntington Securities, Inc., ING Financial Markets LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC are acting as active bookrunners for this offering. Oppenheimer & Co. Inc. is acting as a passive bookrunner, and Zions Direct, Inc. is serving as a co-manager.

Capital Southwest Corporation, based in Dallas, Texas, is a business development company focused on supporting the acquisition and growth of middle market businesses. With approximately $2.2 billion in investments at fair value as of June 30, 2026, the company specializes in making $5 million to $50 million investments across the capital structure, including first lien, second lien, 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.

The company's president and CEO, Michael S. Sarner, stated, "This offering is a significant milestone for Capital Southwest as we seek to strengthen our capital structure and enhance our liquidity position. We are committed to continuing our strategy of supporting the growth of middle market businesses and believe that this financing will provide us with the resources to pursue our objectives effectively."

Investors should carefully consider Capital Southwest’s investment objective and strategies and the risks related to Capital Southwest and the offering before investing. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus, and other information about Capital Southwest can be found on the SEC’s website or from the listed bookrunners.

The company intends to use the net proceeds from this offering to repay a portion of the outstanding indebtedness under its senior secured revolving credit facility. Through re-borrowings under the Corporate Credit Facility, Capital Southwest will continue to make investments in accordance with its investment objective and strategies, and for other general corporate purposes, including the payment of operating expenses.