Capital Southwest Corporation received U.S. Small Business Administration approval to raise SBIC II's leverage commitment from US$175 million to US$250 million, and separately completed a US$350 million offering of 6.750% senior unsecured notes due September 15, 2031, priced at 98.985% with a 1% discount. The higher SBA-backed leverage capacity and the bond issuance together expand the lender's funding toolbox for its lower middle market strategy while it stays within established underwriting and diversification disciplines. The company's narrative projects $308.9 million in revenue and $175.1 million in earnings by 2029, requiring 10.0% yearly revenue growth and roughly a $63 million earnings increase from $111.8 million today. Two Simply Wall St Community members currently see fair value for Capital Southwest between US$24.90 and about US$29.46, against a $24.90 fair value estimate implying 6% upside to the current price. The company still faces near-term pressure from competitive loan pricing and spread compression, plus the risk that heavy dividend commitments could be harder to support if portfolio gains and fee income soften.
Capital Southwest CorporationSBA approved raising SBIC II leverage commitment to US$250M and the company closed a US$350M senior notes offering, expanding its funding toolbox.
Taishin Financial Holding Co Ltd