Capital Southwest Corp Amends Revolving Credit Facility to $595M

What Happened
Capital Southwest Corporation announced on September 2, 2026 that it entered into a Fourth Amended and Restated Senior Secured Revolving Credit Agreement (the Credit Agreement) with a syndicate of lenders, ING Capital LLC (administrative agent/arranger/bookrunner) and Texas Capital Bank (documentation agent). The amendment increases the committed size of the Corporate Credit Facility, extends the facility’s term, reduces certain fees, and amends financial covenants. The company also issued a press release the same day announcing the agreement.

Key Details

• Committed capacity increased from $510 million to $595 million.
• Uncommitted accordion feature increased potential maximum commitments from up to $750 million to up to $1 billion.
• Revolving period extended from August 2, 2027 to September 2, 2030; final maturity extended from August 2, 2028 to September 2, 2031.
• Unused commitment fees reduced from a 0.50%–1.00% range to a 0.50%–0.75% range per annum (based on utilization).
• The amendment also revises certain financial covenants and creates a direct financial obligation under the amended Credit Agreement (Exhibit 10.1); the company’s press release is attached as Exhibit 99.1.

Why It Matters
This amendment strengthens Capital Southwest’s liquidity and extends its debt maturity schedule, reducing near‑term refinancing risk by providing a larger committed revolving facility and a longer revolving period. Lower unused fees slightly reduce the cost of maintaining unused capacity. Changes to financial covenants may affect borrowing flexibility or trigger monitoring requirements; investors should review the full Credit Agreement (Exhibit 10.1) for covenant specifics.