Capital Southwest SPV LLC, a wholly-owned subsidiary of Capital Southwest, an internally managed business development company focused on providing financing to support the acquisition and growth of middle- market businesses, entered into a senior secured revolving credit facility with the New York branch of Deutsche Bank.
The facility provides for $150 million of initial commitments with (i) an increase to $200 million of total commitments on the earlier of (a) June 20 or (b) the date requested by Capital Southwest, in its sole discretion, and (ii) an accordion feature that allows increases up to $400 million of total commitments from new and existing lenders on the same terms and conditions as the existing commitments. Advances under the facility bear interest at three-month term SOFR plus an applicable margin of 2.5% during the revolving period ending on March 20, 2027. The SPV’s obligations to the lenders are secured by a first lien interest in all of the SPV’s assets but are non-recourse to Capital Southwest. The SPV facility matures on March 20, 2029.
“We are pleased to continue our long-standing relationship with Deutsche Bank through the creation of a new SPV facility,” Michael Sarner, CFO of Capital Southwest, said. “The SPV facility further diversifies our sources of capital and provides significant funding flexibility as we continue to grow our balance sheet. We expect to continue to grow total commitments under this credit facility in lockstep with our asset growth.”
