Capital Southwest extends recent slump after convertible deal announced

Capital Southwest

04/11/2024 13:36

** Capital Southwest Corp  CSWC.O  shares down 4.3% at $22.94
premarket as co seeks capital raise to pay down debt
    ** Stock on course to fall for fifth straight session, if
losses hold
** Dallas-based business development company (BDC) commences
public offering of 5-yr convertible notes without disclosing
deal size
    ** Co expects to use net proceeds to fully redeem its 4.50%
bonds due 2026, to partially repay debt under revolving credit
facility with ING Capital LLC, and for general purposes
    ** CSWC has ~$1.1 bln market value, per LSEG data
    ** Oppenheimer sole bookrunner for offering
** Last week, co reported $0.64/sh of pre-tax net investment
income for Sept qtr and net asset value/sh of $16.59
    ** Through Fri close, shares up 1% YTD after 39% climb in
2023

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper.thomsonreuters.com@reuters.net
lance.tupper@tr.com 1-646-279-6380))