Christine Battist, a director at Capital Southwest Corp (NASDAQ:CSWC), has purchased 256 shares of the company's common stock. The shares were acquired at a price of $23.1279 each, totaling approximately $5,920. Following this transaction, Battist holds a direct ownership of 9,279 shares.
Additionally, Battist has an indirect holding of 7,281 shares through a trust agreement dated August 13, 2007. This transaction reflects her continued investment in the Dallas-based company, which specializes in providing capital to middle-market businesses.
In other recent news, Dallas-based Capital Southwest Corporation has made significant strides in its financial endeavors. The firm recently launched a public offering of unsecured convertible notes due in 2029, managed by Oppenheimer & Co. The proceeds from this offering are planned to be used to redeem its 4.50% Notes due 2026, repay a portion of the outstanding indebtedness under its senior secured revolving credit facility with ING Capital LLC, and for general corporate purposes.
In addition to this, Capital Southwest Corporation has amended its equity distribution agreements related to its "at-the-market" (ATM) offering program, transitioning it to a new shelf registration statement. This move allows the firm to sell shares of its common stock, with the potential to raise up to $1.0 billion.
As per the recent developments, the firm's pre-tax net investment income reached $0.64 per share in the second quarter of fiscal year 2025, and a regular dividend was declared at $0.58 per share. The firm's credit portfolio grew to $1.4 billion, predominantly backed by private equity firms, and raised $21 million through its ATM program.
However, the firm witnessed a decrease in total investment income to $48.7 million, but executives from the firm anticipate significant net portfolio growth in the upcoming quarters. These recent developments reflect Capital Southwest's disciplined investment strategy and potential for future growth.
InvestingPro Insights
Christine Battist's recent purchase of Capital Southwest Corp (NASDAQ:CSWC) shares aligns with several positive indicators for the company. According to InvestingPro data, CSWC boasts a robust revenue growth of 27.41% over the last twelve months, with a market capitalization of $1.09 billion. This growth trajectory is further supported by an impressive EBITDA growth of 30.52% over the same period.
One of the most notable aspects of CSWC is its dividend policy. An InvestingPro Tip highlights that the company "pays a significant dividend to shareholders," which is particularly attractive given the current dividend yield of 11.04%. This is further reinforced by another InvestingPro Tip stating that CSWC "has maintained dividend payments for 42 consecutive years," demonstrating a long-term commitment to shareholder returns.
The company's financial health appears solid, with an InvestingPro Tip noting that "liquid assets exceed short term obligations." This, coupled with the fact that CSWC has been "profitable over the last twelve months," suggests a stable financial foundation that could support future growth and continued dividend payments.
For investors seeking more comprehensive insights, InvestingPro offers additional tips and analysis on Capital Southwest Corp. Currently, there are 6 more InvestingPro Tips available for CSWC, providing a deeper understanding of the company's financial position and market outlook.
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