CAPITAL SOUTHWEST CORPORATION (NASDAQ:CSWC) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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CAPITAL SOUTHWEST CORPORATION (NASDAQ:CSWC) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.

On November 16, 2017, Capital Southwest Corporation (the “Company”) entered into the Amendment No. 1 (the “Amendment”) to the Senior Secured Revolving Credit Agreement, dated as of August 30, 2016 (the “Credit Agreement”) among the Company, as borrower, the lenders party thereto, ING Capital LLC, as administrative agent, and Texas Capital Bank, N.A., as documentation agent.

The Amendment increased the total borrowing capacity under the Credit Facilityto $180 million, supported by a diversified group of eight lenders. The Amendment increased the Credit Facility’s accordion feature which allows for an increase in total commitments of up to $250 million under the Credit Facility from new and existing lenders on the same terms and conditions as the existing commitments.

The Amendment reducedthe interest rate on borrowings from LIBOR plus 3.25% to LIBOR plus 3.00%, with a step-down to LIBOR plus 2.75% at the time the Company’s net worth exceeds $325 million. The Amendment also reduced unused commitment fees based on utilization.

The Amendment extended the Credit Facility’s revolving period from August 30, 2019 to November 16, 2020. Additionally, the final maturity of the Credit Facility was extended from August 30, 2020 to November 16, 2021.

There are no changes to the covenants or the events of default in the Credit Facility as a result of the Amendment.

The description of the Amendment contained herein is not intended to be complete and is qualified in its entirety by reference to the full text of the Amendment, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.

The information provided in Item 1.01 of this Current Report on Form 8-K is incorporated in this item 2.03 by reference.

Item 8.01 Other Events

On November 16, 2017, the Company issued a press release announcing its entry in the Amendment. A copy of such press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d)Exhibits


CAPITAL SOUTHWEST CORP Exhibit
EX-10.1 2 cswc-20171116ex101818f9c.htm EX-10.1 cswc_Ex10_1 Exhibit 10.1   Execution Version       AMENDMENT NO. 1 TO SENIORSECURED REVOLVING CREDIT AGREEMENT This AMENDMENT NO. 1 (this “Amendment) with respect to the Senior Secured Revolving Credit Agreement,…
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About CAPITAL SOUTHWEST CORPORATION (NASDAQ:CSWC)

Capital Southwest Corporation is an investment company that specializes in providing customized financing to middle market companies in a range of industry segments located primarily in the United States. The Company is a specialty lending company. Its principal investment objective is to produce risk-adjusted returns by generating current income from debt investments and capital appreciation from its equity and equity related investments. It focuses on partnering with business owners, management teams and financial sponsors to provide financing solutions to fund growth, changes of control, or other corporate events. In allocating future investments, it focuses on investing in senior and subordinated debt securities secured by security interests in portfolio company assets, coupled with equity interests. It targets senior and subordinated investments in the lower middle market and private loan transactions, as well as first and second lien syndicated loans in middle market companies.