GlobeNewswire Inc | Dec 22, 2020 04:01PM EST

December 22, 2020

DALLAS, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (Capital Southwest) is pleased to announce that it has priced an underwritten public offering of $75 million in aggregate principal amount of 4.50% notes due 2026 (the Notes). The Notes will bear interest at a rate of 4.50% per year, payable semi-annually, will mature on January 31, 2026 and may be redeemed in whole or in part at Capital Southwests option at any time prior to October 31, 2025, at par plus a make-whole premium, and thereafter at par. The offering is subject to customary closing conditions and is expected to close on December 29, 2020.

Capital Southwest intends to use the net proceeds from this offering to redeem all of its outstanding 5.95% notes due 2022 and repay a portion of the outstanding indebtedness under its credit facility. However, through re-borrowings under its credit facility, Capital Southwest intends to make investments in lower middle market and upper middle market portfolio companies in accordance with its investment objective and strategies, and for other general corporate purposes, including payment of operating expenses. As of December 21, 2020, Capital Southwest had $215.0million of indebtedness outstanding under its credit facility. The credit facility matures on December 21, 2023, and borrowings under the credit facility currently bear interest on a per annum basis equal to LIBOR plus 2.50%.

Raymond James & Associates, Inc. is acting as sole book-running manager for this offering. Janney Montgomery Scott LLC, Ladenburg Thalmann& Co. Inc. and National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), are actingasco-managersforthe offering.

Investors should carefully consider, among other things, Capital Southwests investment objective and strategies and the risks related to Capital Southwest and the offering before investing. The pricing term sheet dated December 22, 2020, the preliminary prospectus supplement dated December 22, 2020, and the accompanying prospectus dated August 15, 2019, each of which has been filed with the Securities and Exchange Commission (the SEC), contain this and other information about Capital Southwest and should be read carefully before investing.

A shelf registration statement relating to these securities is on file with and has been declared effective by the SEC. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus, copies of which may be obtained, when available, for free by visiting the SECs website atwww.sec.govor from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, by email: prospectus@raymondjames.com or by calling: 1-800-248-8863.

The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute offers to sell or the solicitation of offers to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.

ABOUT CAPITAL SOUTHWESTCapital Southwest Corporation is a Dallas, Texas-based, internally managed Business Development Company, with approximately $286million in net assets as of September 30, 2020. Capital Southwest is a middle-market lending firm focused on supporting the acquisition and growth of middle market businesses and makes investments ranging from $5 to $20million in securities across the capital structure, including first lien, unitranche, second lien, subordinated debt, and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements within the meaning of the federal securities laws, including statements with regard to Capital Southwests notes offering, the expected net proceeds from the offering and the anticipated use of the net proceeds of the offering. These statements are often, but not always, made through the use of word or phrases such as will, may, could, expect, and similar expressions and variations or negatives of these words. These statements are based on managements current expectations, assumptions, and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks identified in Capital Southwests filings with the SEC and risks related to, among other things: changes in the markets in whichCapital Southwestinvests; changes in the financial, capital, and lending markets; regulatory changes; tax treatment and general economic and business conditions; uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global andU.S.capital markets and the global andU.S.economy, the length and duration of the COVID-19 outbreak inthe United Statesas well as worldwide and the magnitude of the economic impact of that outbreak; and the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve our respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business. Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwests registration statement and other SEC filings for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.

CONTACT Michael S. Sarner, Chief Financial Officer msarner@capitalsouthwest.com 214-884-3829