Capital Southwest Corporation said on Wednesday it increased its senior secured credit facility by $85 million to $595 million while lowering the applicable margin to 2.00% from 2.15%.
The Dallas-based investment firm also eliminated its SOFR adjustment and expanded its uncommitted accordion feature, raising the maximum commitment threshold from $750 million to $1 billion. Unused commitment fees were reduced to a range of 0.50% to 0.75% annually, down from 0.50% to 1.00%, based on utilization.
The revolving period was extended to September 2, 2030, from August 2, 2027, and the final maturity was pushed to September 2031, from August 2028. The company reported no debt maturities until 2029 following the modification.
As of June 30, 2026, Capital Southwest held investments with a fair value of approximately $2.2 billion, targeting deals between $5 million and $50 million across the capital structure, including first lien, second lien, and non-control equity co-investments focused on the middle market.
Chris Rehberger, Treasurer and Chief Financial Officer, said the changes strengthen the firm’s platform for future growth by expanding borrowing capacity, reducing financing costs, extending maturities, and improving balance sheet flexibility.
