Capital Southwest Corp Issues $350M 6.75% Notes Due 2031

What Happened
Capital Southwest Corporation announced via Form 8‑K that it completed an offering of $350.0 million aggregate principal amount of 6.750% Notes due September 15, 2031. The underwriting agreement was entered on September 10, 2026, and the transaction closed on September 15, 2026. An Eighth Supplemental Indenture with U.S. Bank Trust Company (successor trustee) was executed to govern the Notes.

Key Details

• Principal amount: $350.0 million of 6.750% Notes due September 15, 2031; interest paid semi‑annually on March 15 and September 15, beginning March 15, 2027.
• Pricing and proceeds: public offering price 98.985% of par; underwriting discount $3.5 million; estimated offering expenses ~$0.9 million; net proceeds ≈ $342.1 million.
• Use of proceeds: Company intends to repay a portion of borrowings under its senior secured revolving credit facility (Corporate Credit Facility).
• Security and covenants: Notes are unsecured, rank pari passu with other unsecured unsubordinated debt, are effectively subordinated to secured debt and structurally subordinated to subsidiary obligations; contain customary covenants including certain 1940 Act-related requirements and a Change of Control repurchase right at 100% of principal plus accrued interest.

Why It Matters
This debt issuance raises substantial liquidity ($342.1M net) that the company plans to use to reduce borrowings under its revolving credit facility, which may lower near‑term interest costs or improve covenant headroom on that facility. Investors should note the Notes are unsecured and rank behind secured debt, the fixed 6.75% coupon and 2031 maturity set the company’s long‑term interest obligations, and the securities include customary redemption and change‑of‑control protections for noteholders.