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