Capital Southwest Corporation has priced a $350 million public offering of 6.750% notes due 2031, with proceeds primarily intended to reduce borrowings under the business development company’s senior secured revolving credit facility.
The notes will mature on September 15, 2031, and pay interest semiannually. They are being issued at 98.985% of principal, producing a yield to maturity of 6.994%. Capital Southwest can redeem the securities before August 15, 2031 at par plus a make-whole premium and thereafter at par.
Capital Southwest plans to use the proceeds to repay a portion of outstanding indebtedness under its corporate credit facility. Through subsequent reborrowings, the company may deploy capital into new portfolio investments and other general corporate purposes, including operating expenses.
Deutsche Bank Securities, Huntington Securities, ING Financial Markets, Morgan Stanley, RBC Capital Markets and Wells Fargo Securities are acting as active bookrunners. Oppenheimer is a passive bookrunner, and Zions Direct is a co-manager.
Capital Southwest is an internally managed middle-market lending company with approximately $2.2 billion of investments at fair value as of June 30, 2026. It typically makes investments ranging from $5 million to $50 million through first-lien and second-lien debt as well as non-control equity co-investments.
The financing provides Capital Southwest with additional long-term debt capital while giving the company flexibility to recycle borrowings into investments supporting middle-market businesses.
