The Company is pleased to announce that it has priced an underwritten public offering of an additional $65 million in aggregate principal amount of 4.50% notes due 2026 (the “Notes”). The Notes will be issued at a price of 102.11% of the aggregate principal amount of the Notes, resulting in a yield-to-maturity of approximately 4.0%.

Purchasers will be required to pay accrued and unpaid interest on the Notes from December 29, 2020 up to, but not including, the date of delivery of the Notes. On July 31, 2021, Capital Southwest will pay this pre-issuance accrued interest on the Notes to the holders of the Notes as of the applicable record date, along with interest accrued on the Notes offered hereby from the date of delivery to such interest payment date.

The Notes will constitute a further issuance of, have the same terms as, rank equally in right of payment with, and be fungible and form a single series with the $75 million in aggregate principal amount of the 4.50% notes due 2026 that the Company initially issued on December 29, 2020. Upon the issuance of the Notes, the outstanding aggregate principal amount of the Company’s 4.50% notes due 2026 will be $140 million.

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 Southwest’s 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 February 25, 2021. As of 2021-02-19, the Fund’s leverage was 54.0% and Debt Focused BDC Group leverage was 48.7%.