Capital Southwest Corporation announced that its wholly owned subsidiary, Capital Southwest SPV LLC (the “SPV”), entered into a senior secured revolving credit facility (the “SPV Facility”) with Deutsche Bank AG, New York Branch. 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 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. The SPV’s obligations to the lenders are secured by a first lien interest in all of the SPV’s assets but are non-recourse to Capital Southwest. The SPV Facility matures on March 20, 2029.

Michael Sarner, Chief Financial Officer, commented, “We are pleased to continue our long-standing relationship with Deutsche Bank through the creation of a new SPV Facility. The SPV Facility further diversifies our sources of capital and provides significant funding flexibility as we continue to grow our balance sheet. We expect to continue to grow total commitments under this Credit Facility in lockstep with our asset growth.”

Capital Southwest Corporation is a Dallas, Texas-based, internally managed business development company with approximately $1.4 billion in investments at fair value as of December 31, 2023. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $35 million investments across the capital structure, including first lien, second lien and non-control equity co-investments.