Business Context and Reporting Period
Company: Capital Southwest Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 25, 2020
Event: Partial redemption of 5.95% Notes due 2022.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses on a specific debt transaction.
| Security | Aggregate Principal Outstanding | Amount to be Redeemed | Redemption Price |
|---|---|---|---|
| 5.95% Notes due 2022 (CSWCL) | $77,136,175 | $20,000,000 | 100% of principal plus accrued interest |
Material Changes
The Company exercised its option to redeem a portion of its outstanding debt. This represents a reduction in the Company's long-term debt obligations effective September 29, 2020.
Outlook, Risks, and Unusual Items
- Redemption Date: September 29, 2020.
- Terms: Notes will be redeemed at 100% of their principal amount ($25 per Note), plus accrued and unpaid interest through, but excluding, the Redemption Date.
- Authority: The redemption is executed pursuant to Section 11.04 of the Indenture dated October 23, 2017, and Section 1.01(h) of the First Supplemental Indenture dated December 15, 2017.
- Management Commentary: The filing contains no forward-looking guidance or general management commentary beyond the mechanics of the redemption.
Investor Verification Checklist
- Verify the remaining principal balance of the 5.95% Notes due 2022 after the $20,000,000 redemption.
- Confirm the exact accrued interest amount payable on the redemption date.
- Review the attached Notice of Redemption (Exhibit 99.1) for specific instructions to note holders.
- Assess the impact of this debt reduction on the Company's overall liquidity and leverage ratios.