Welcome to our dedicated page for Capital Southwest news (Ticker: CSWC), a resource for investors and traders seeking the latest updates and insights on Capital Southwest stock.
Capital Southwest Corp (NASDAQ: CSWC) is an internally-managed Business Development Company (BDC) that specializes in credit-focused investments. The company is a prominent lender to middle-market businesses across the capital structure, offering flexible capital solutions that address financing needs unmet by traditional first lien senior lenders. Headquartered in Dallas, Texas, Capital Southwest is uniquely positioned to finance lower middle-market companies with EBITDA ranging from $3 to $12 million.
Capital Southwest's investment strategy focuses on providing financings between $5 and $50 million, with individual commitments ranging from $5 to $20 million per deal. Their robust network of co-investors enables the company to effectively meet the needs of its clients. The company's criteria for investment include a minimum EBITDA of $3 million, a proven management team motivated by continued ownership, an established market position, and a history of positive cash flow.
The company offers a range of investment structures, including unitranche debt through a network of first out senior lending relationships, first lien debt, second lien, and subordinated debt. Additionally, the company's portfolio may comprise preferred stocks, common stocks, and warrants.
The primary revenue sources for Capital Southwest include interest income and dividend income from its investments, along with management fees. The company aims to generate attractive risk-adjusted returns by producing current income from debt investments and capital appreciation from equity and equity-related investments. Their investment team, boasting decades of experience working together, is committed to delivering value to shareholders.
The company has recently reported several key achievements and financial highlights:
- Special Meeting: Scheduled for October 11, 2023 to discuss forward-looking statements and company performance.
- Q2 FY2024 Financial Highlights: Pre-tax net investment income of $0.67 per share and a regular dividend of $0.57 per share, along with a supplemental dividend of $0.06 per share for the quarter ended December 31, 2023.
- Q3 FY2024 Financial Highlights: Pre-tax net investment income of $0.72 per share and consistent dividend payouts, reflecting robust financial health and commitment to shareholder returns.
- Upcoming Events: Scheduled calls on January 30, 2024, and May 15, 2024, to provide updates on financial performance and strategic initiatives.
Investors and stakeholders should note the forward-looking statements regarding the company’s future performance and financial condition. These are based on management’s current expectations and are subject to various risks and uncertainties. Readers are encouraged to review the company’s Annual Report on Form 10-K for a comprehensive discussion of these risks.
Capital Southwest (CSWC) has announced a significant expansion of its Corporate Credit Facility. The company has increased total commitments from $460 million to $485 million, representing a $25 million increase under the existing accordion feature. This expansion was facilitated by the addition of one new lender, bringing the total number of participants in the bank syndicate to 11. The Corporate Credit Facility's accordion feature allows for potential future growth, with maximum commitments of up to $750 million.
This increase in the credit facility enhances Capital Southwest's capacity to provide flexible financing solutions for middle market businesses, supporting their acquisition and growth strategies. The expansion of the credit facility demonstrates the company's continued ability to attract lender support and potentially signals confidence in its business model and growth prospects.
Capital Southwest (CSWC) reported strong financial results for Q1 FY2025 ended June 30, 2024. Pre-tax net investment income was $31.3 million or $0.69 per share. The company's total investment portfolio reached $1.5 billion, with a credit portfolio of $1.3 billion (98% 1st Lien Senior Secured Debt). CSWC increased its regular dividend to $0.58 per share and declared a supplemental dividend of $0.06 per share for Q2 FY2025. The company's NAV per share was $16.60, slightly down from $16.77 in the previous quarter. CSWC originated $108.1 million in new commitments during the quarter and received $77.2 million in prepayments. The company's balance sheet liquidity reached an all-time high of $485 million.
Capital Southwest (Nasdaq: CSWC) has announced preliminary estimates for its first quarter 2025 fiscal year (ended June 30, 2024) operating results. The company expects pre-tax net investment income of $0.68 to $0.69 per share and net investment income of $0.62 to $0.63 per share. The estimated net asset value per share is between $16.55 and $16.65, with regulatory leverage at 0.73x to 0.77x debt to equity.
Capital Southwest will release finalized Q1 2025 results on August 5, 2024, after market close. A live webcast is scheduled for August 6, 2024, at 11:00 a.m. Eastern time. Investors can participate via webcast or register for the live call to ask questions.
Capital Southwest (CSWC) reported strong financial results for the quarter and fiscal year ending March 31, 2024. For the fourth quarter, CSWC achieved a pre-tax net investment income of $29.8 million ($0.68 per share). The company declared total dividends of $0.63 per share for the quarter ending June 30, 2024. The total investment portfolio grew to $1.5 billion, with new credit investments of $154.6 million and a weighted average yield of 13.3%. However, the company recorded $15.9 million in net realized and unrealized depreciation on investments. For the fiscal year, CSWC's total investment income increased to $178.1 million, and the pre-tax net investment income grew by 18% to $2.72 per share.
During the year, CSWC's credit portfolio expanded by 30%, and the company improved its operating leverage. The net asset value per share remained stable at $16.77. The company also diversified its funding sources by securing a new $150 million SPV credit facility. Despite these positive performances, the company faced increased operating expenses and recorded significant net realized and unrealized losses on investments.
Capital Southwest announced the promotion of Josh Weinstein to Senior Managing Director and Chief Investment Officer and Chris Rehberger to Executive Vice President and Treasurer. The promotions are aimed at strengthening the executive team and driving growth for the company. Josh Weinstein has been instrumental in expanding the company's market presence and generating strong returns for shareholders. Chris Rehberger has played a key role in building a robust balance sheet capitalization strategy and managing financial operations.
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