CAPITAL SOUTHWEST CORPORATION (NASDAQ:CSWC) Files An 8-K Other EventsItem 8.01 Other Events.
On March23, 2018, the Consolidated Appropriations Act of 2018, which includes the Small Business Credit Availability Act (“SBCAA”), was signed into law. SBCAA amends the Investment Company Act of 1940 (the “1940 Act”) to permit a business development company to reduce the required minimum asset coverage ratio applicable to it from 200% to 150%, if certain requirements are met.
On April 25, 2018, the board of directors (the “Board”) of Capital Southwest Corporation (the “Company”), including a “required majority” (as such term is defined in Section 57(o) of the 1940 Act) of the Board, approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act. As a result, the minimum asset coverage ratio applicable to the Company will be decreased from 200% to 150%, effective April 25, 2019. The Board also approved a resolution which limits the Company’s issuance of senior securities such that the asset coverage ratio, taking into account such issuance, would not be less than 166%, effective April 25, 2019.
The information disclosed under this Item 8.01 is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
On April 30, 2018, the Company issued a press release regarding the foregoing.The press release is included as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits