Capital Southwest greenshoe ups 5.95% $25-par notes to $57.5 million

By Sarah Lizee

Olympia, Wash., Dec. 28 – Capital Southwest Corp. said that the underwriters of its offering of 5.95% notes due Dec. 15, 2022 exercised their $7.5 million over-allotment option in full, raising the sale to $57.5 million.

As previously reported, the company priced an upsized $50 million of 5.95% $25-par notes due 2022 at 97 on Dec. 12.

The notes become redeemable on Dec. 15, 2019 at par plus accrued interest.

The existing notes began trading on the Nasdaq exchange under the trading symbol “CSWCL” on Dec. 18 and the additional notes will trade under the same symbol.

Keefe, Bruyette & Woods is the bookrunner. Janney Montgomery Scott LLC and Ladenburg Thalmann & Co. Inc. are lead managers. BB&T Capital Markets and B. Riley FBR, Inc. are co-managers.

Capital Southwest intends to use the $55,775,000 in net proceeds from the offering to repay outstanding debt under its existing credit facility due Nov. 16, 2021 and for general corporate purposes.

As of Dec. 12, Capital Southwest had $86 million outstanding under the credit facility. Borrowings currently bear interest at Libor plus 300 basis points.

Capital Southwest is a Dallas-based middle market lender.

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