Capital Southwest Corp. Reports Material Definitive Agreement

TL;DR

CSWC just signed a big deal, expect financial updates soon.

AI Summary

On March 20, 2024, Capital Southwest Corp. entered into a material definitive agreement related to a direct financial obligation. The company, incorporated in Texas with IRS number 751072796, filed this 8-K report on March 21, 2024. The filing details financial obligations and exhibits related to the agreement.

Why It Matters

This filing indicates a significant new financial commitment or obligation for Capital Southwest Corp., which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and direct financial obligations can introduce new financial risks or opportunities that require careful monitoring.

Key Players & Entities

• Capital Southwest Corp. (company) — Registrant
• Texas (location) — State of Incorporation
• 751072796 (organization_id) — IRS Number
• March 20, 2024 (date) — Date of earliest event reported
• March 21, 2024 (date) — Filing Date

FAQ

Key Financial Figures

• $0.25 — ange on Which Registered Common Stock, $0.25 par value per share CSWC The Nasdaq Glo
• $150 million — to time. The SPV Facility provides for $150 million of initial commitments with (i) an incr
• $200 million — ial commitments with (i) an increase to $200 million of total commitments on the earlier of
• $400 million — ion feature that allows increases up to $400 million of total commitments from new and exist

Filing Documents

• cswc-20240320.htm (8-K) — 30KB
• db-cswcspvllcxlfsareformat.htm (EX-10.1) — 1346KB
• 0000017313-24-000012.txt ( ) — 1775KB
• cswc-20240320.xsd (EX-101.SCH) — 2KB
• cswc-20240320_def.xml (EX-101.DEF) — 16KB
• cswc-20240320_lab.xml (EX-101.LAB) — 27KB
• cswc-20240320_pre.xml (EX-101.PRE) — 16KB
• cswc-20240320_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On March 20, 2024, Capital Southwest Corporation (the "Company") entered into a Loan Financing and Servicing Agreement (the "Loan Agreement") for a special purpose vehicle financing credit facility (the "SPV Facility") by and among Capital Southwest SPV LLC ("Capital Southwest SPV"), as borrower, the Company, as equityholder and servicer, Deutsche Bank AG, New York Branch ("Deutsche Bank"), as facility agent, U.S. Bank Trust Company, National Association as collateral agent, U.S. Bank National Association, as collateral custodian, and the lenders that are party thereto from time to time. The SPV Facility provides for $150 million of initial commitments with (i) an increase to $200 million of total commitments on the earlier of (a) June 20, 2024, the three month anniversary of the effective date of the Loan Agreement, or (b) the date requested by the Company, in its sole discretion, and (ii) an accordion feature that allows increases up to $400 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. Advances under the SPV Facility bear interest at three-month Term SOFR plus an applicable margin of 2.50% during the revolving period ending on March 20, 2027 and three-month Term SOFR plus an applicable margin of 2.85% thereafter. The Loan Agreement provides for an unused commitment fee of, from the effective date of the Loan Agreement through April 20, 2024, 0.10% per annum on the unused commitments, and thereafter, 0.35% per annum on the unused commitments, and other customary fees. The Credit Facility matures on March 20, 2029. The Loan Agreement contains customary terms and conditions, including affirmative and negative covenants. The Loan Agreement also contains customary events of default including, without limitation, nonpayment, misrepresentation of representations and warranties in a material respect, breach of covenant, bankruptcy, and chan

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 Loan Financing and Servicing Agreement, dated as of March 20, 2024 among Capital Southwest SPV LLC, as borrower, Capital Southwest Corporation, as equityholder and as servicer, the lenders from time to time parties hereto, Deutsche Bank AG, New York Branch, as Facility Agent, U.S. Bank Trust Company, National Association, as Collateral Agent and U.S. Bank National Association, as Collateral Custodian 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: March 21, 2024 By: /s/ Michael S. Sarner Name: Michael S. Sarner Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR