Capital Southwest Corporation amended its senior secured credit facility on September 2, increasing committed capacity to $595 million from $510 million and reducing the applicable spread over SOFR to 2.00% from 2.15%, while also removing the separate SOFR adjustment. The unused commitment fees were lowered to a range of 0.50% to 0.75% from 0.50% to 1.00%, and the revolving period and final maturity were extended to September 2030 and September 2031, respectively. The company had $280 million outstanding under the facility as of June 30, implying annual interest savings of about $420,000 from the spread reduction alone, and it holds approximately $2.2 billion in investments at fair value, with a weighted average yield on debt investments of 10.9%. However, the regulatory debt-to-equity ratio stood at 0.91 to 1, nonaccrual investments had a cost of $65.7 million representing 2.9% of the portfolio, and net asset value per share declined to $16.61 from $16.69 in the latest quarter. The $1 billion accordion remains uncommitted, so expansion beyond $595 million depends on lender participation, and the facility includes covenants such as minimum asset coverage of 150% and interest coverage of at least 2.00 times.
Capital Southwest CorporationExpanded revolver to $595M and cut spread to 2%, lowering interest costs.
Yulon Finance Corp
Chevron Corp