Capital Southwest Subsidiary Files Registration Statement

New Post Public Reply Private Reply Replies (0) Message Board
News Desk 2018
Capital Southwest Subsidiary Files Registration Statement With SEC to Effect Spin-Off

DALLAS, June 17, 2015 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (Nasdaq: CSWC ) (“Capital Southwest”) today announced that its wholly-owned subsidiary, CSW Industrials, Inc. (“CSWI”), has filed a registration statement with the Securities and Exchange Commission in connection with the proposed spin-off of Capital Southwest’s industrial products, coatings, sealants and adhesives and specialty chemicals businesses into a standalone, publicly traded company.

Following the spin-off, Capital Southwest will continue as a business development company refocused on a lending strategy more appropriate for its corporate and regulatory structure.

“The filing of the registration statement is an important step in our plan to establish CSWI as a separately traded public entity,” said Joseph B. Armes, Capital Southwest’s Chairman and Chief Executive Officer, who, following the spin-off will be the Chairman and Chief Executive Officer of CSWI. “We are confident that establishing these two highly focused companies, each with its optimal corporate structure, will allow our shareholders to more fully benefit from the compelling value creation opportunities associated with each business.”

The spin-off will be effected by a distribution of CSWI shares on a pro rata basis to the shareholders of Capital Southwest as a special dividend. The registration statement includes a preliminary Information Statement about the terms and conditions of the spin-off, as well as important information about CSWI as a standalone business, including CSWI’s financial information and operating and growth strategies. Shareholders who want more information regarding the spin-off of CSWI, including the potential benefits and risks associated with the transaction, should review the registration statement, which is available on the SEC’s website at  www.sec.gov .

The completion of the spin-off is subject to a number of conditions including the receipt of a favorable opinion with respect to the tax-free nature of the transaction for federal income tax purposes and final approval by the Capital Southwest board of directors. The spin-off is not subject to a Capital Southwest shareholder vote.

About CSW Industrials, Inc.

Upon completion of the planned spin-off from Capital Southwest, CSW Industrials, Inc. (CSWI) will be a diversified industrial growth company with well-established, scalable platforms and deep domain expertise across three segments: industrial products; coatings, sealants and adhesives; and specialty chemicals. CSWI expects to focus on generating free cash flow by growing organically and through complementary and synergistic acquisitions.

About Capital Southwest Corporation

Capital Southwest is a Dallas-based publicly traded business development company (“BDC”), with approximately $775 million in assets. On December 2, 2014, Capital Southwest announced its intent to separate into two public companies through the spin-off of certain of its control assets into a diversified industrial growth company and the refocusing of the BDC on lending to strong middle market companies. As a result, Capital Southwest’s new investment activity is focused on senior “unitranche” debt, second lien and subordinated debt, as well as equity co-investments to support the acquisition and growth of middle market companies. The control companies that will be contributed by Capital Southwest to CSW Industrials, Inc. prior to the spin-off are actively seeking growth through add-on acquisitions. Since Capital Southwest’s formation in 1961, it has always sought to invest in companies with strong management teams and sound financial performance. As a public company, Capital Southwest is fortunate to have the flexibility to be creative in its financing structures and to invest to support the growth of its portfolio companies over long periods of time.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 relating to, among other things, the manner, tax-free nature and expected benefits associated with the proposed spin-off of certain of Capital Southwest’s control assets into CSWI, a new, independent, publicly traded company, the expected timing of the completion of the spin off and the business, financial condition and results of operations of Capital Southwest, including the businesses of CSWI. Any statements preceded or followed by or that include the words "believe," "expect," "intend," "plan," "should" or words, phrases or similar expressions or the negative thereof, are intended to identify forward-looking statements. These statements are made on the basis of the current beliefs, expectations and assumptions of the management of Capital Southwest. There are a number of risks and uncertainties that could cause Capital Southwest's actual results to differ materially from the forward-looking statements included in this communication. These risks and uncertainties include, but are not limited to, risks relating to Capital Southwest's ability to obtain all necessary approvals to complete, and to otherwise complete, the proposed spin-off transaction and to achieve the expected benefits therefrom.

In light of these risks, uncertainties, assumptions, and other factors inherent in forward-looking statements, actual results may differ materially from those discussed in this communication. Other unknown or unpredictable factors could also have a material adverse effect on Capital Southwest's actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to Capital Southwest and its business, see Capital Southwest's Annual Report on Form 10-K for the fiscal year ended March 31, 2015 and subsequent filings with the Securities and Exchange Commission. As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this communication. Capital Southwest does not assume any obligation to update these forward-looking statements to reflect any new information, subsequent events or circumstances, or otherwise, except as may be required by law.

 

Investor Relations Contacts: Garrett Edson or Michael Callahan ICR, Inc. Garrett.Edson@icrinc.com | 203-682-8331, Michael.Callahan@icrinc.com | 203-682-8311 Media Contacts: Phil Denning or Jason Chudoba ICR, Inc. Phil.Denning@icrinc.com | 646-277-1258, Jason.Chudoba@icrinc.com | 646-277-1249

Scroll down for more posts ▼

Top 10 Most Recent News Articles

VTech's Revenue Jump: Profit Margins Slip Amid Cost Surge

Updated Category News Views 36

Charting VTech's Financial Waters Well, here we are – another chapter in the saga of VTech, the electronic learning product titan. This time, they've danced a jig of higher revenues, a sweet 5.6% jump to $1,046.9 million for the six months leading to September 2026. But hang on, the party's not all balloons and confetti. Profit margins? They're bobbing like a ship in a...

Continue Reading
Avatar Capital Partners Secures $156M for Japan Focus

Updated Category News Views 15

A Strategic Partnership to Boost Fund II Avatar Capital Partners has nabbed $156 million for their Fund II, aiming at $300 million in Japan's living space. But the real kicker? They're now rubbing elbows with GCM Grosvenor and the Teacher Retirement System of Texas. Fancy way to say they've got some serious artillery now, with GCM Grosvenor and TRS throwing weight as...

Continue Reading
Wastewater Treatment Market to Hit $99.56B by 2031

Updated Category News Views 126

The Changing Face of Wastewater Treatment Here's a whopper to chew on: the wastewater treatment services market ain't your grandfather's playground anymore. No sir, it's a fast-evolving arena aiming to swell to a whopping USD 99.56 billion by 2031. Now, how's that for growth? Mark my words, driven by stringent environmental regulations and thirst for clean water, this...

Continue Reading
CytoSorbents Hits Financial Milestone in Q3 2026

Updated Category News Views 8

CytoSorbents' Financial Turnaround Imagine the smell of fresh opportunity wafting through CytoSorbents’ (NASDAQ:CTSO) corridors this quarter. The company just nudged into positive territory with its operating cash flow, which, let’s be honest, is like finding a nugget of gold amid last year’s rubble of losses. With $43,000 of positive operating cash flow in a world...

Continue Reading
Kraft Heinz Unveils Bold Plans at NYSE Investor Day

Updated Category News Views 62

Kraft Heinz Embraces NYSE as its New Home The market saw a splash when Kraft Heinz (NYSE: KHC) made its big move to the New York Stock Exchange in September. Back then, CEO Steve Cahillane didn't mince words, calling NYSE the 'natural home' for this food giant that's been spicing up our pantries for generations. Nothing like banging the NYSE drum to shout you're open for...

Continue Reading
CINIE 2026: Nuclear Energy Titans Gather in Shenzhen

Updated Category News Views 42

Setting the Stage for CINIE 2026 Alright, folks, let's dive headfirst into the whirlwind that's brewing over in Shenzhen, China. The 5th China Nuclear Energy High-Quality Development Conference, alongside the Shenzhen International Nuclear Energy Industry Innovation Expo—better known in acronym land as CINIE 2026—is gearing up to be one for the books. Taking over a...

Continue Reading
Simon® Expands Footprint with Sagefield™ in Nashville

Updated Category News Views 53

New Ventures in South Nashville You don't often see a development stirring up as much buzz as Simon's latest project, Sagefield™, in South Nashville. This isn't just any run-of-the-mill shopping center. No, Simon is dialing it up a notch, aiming to blend high-end retail, unique dining experiences, and standout design all into one lively spot. For those keeping an eye on...

Continue Reading
Viam and NYC FIRST: A Robotics Education Revolution

Updated Category News Views 60

Redefining Robotics Education in New York City Schools What happens when you blend tech innovation with education? Well, in the heart of New York City, Viam and NYC FIRST are shaking up the robotics scene. It's like introducing kids to an entirely new world where they can roll up their sleeves and tinker with tomorrow's technology today. It's about making robotics...

Continue Reading
New Intubation Blade: A Potential Game-Changer in EMS

Updated Category News Views 60

Streamlining Emergency Medical Procedures A seasoned paramedic from Norfolk, Virginia, with a knack for solving practical problems, has devised a tool that could revolutionize the emergency medical field: the Dual Purpose Intubation Blade. This innovation is not just about simplifying the intubation process; it’s about taking a massive step forward in how emergency...

Continue Reading
Flor de Caña's Green Strategy Wins 2026 Stevie Award

Updated Category News Views 30

Flor de Caña’s Environmental Triumph Seems like when folks think of premium rum, they might wanna start picturing not just smooth sips but a green commitment that runs deep. Flor de Caña has bagged a Stevie Award for their solid 'Net Zero Strategy of the Year.' This ain’t just any award; it's a nod from a respected crowd. A handshake from the business big shots who...

Continue Reading

Top 5 Most Recently Viewed Articles

Tom Hodgman Takes the Helm as Senior Portfolio Manager at BTG Pactual

Updated Category News Views 362

Tom Hodgman Joins BTG Pactual Timberland Investment Group The BTG Pactual Timberland Investment Group (BTG Pactual TIG) is excited to announce that Tom Hodgman has been appointed as the Senior Portfolio Manager. Tom will be steering the firm’s reforestation initiatives in Latin America while also enhancing conservation strategies in its diverse global portfolio. Tom...

Continue Reading
Join the Zeta Global Holdings Corp. Class Action Today

Updated Category News Views 191

Join the Zeta Global Holdings Corp. Class Action The Gross Law Firm has announced an important opportunity for shareholders of Zeta Global Holdings Corp. to join a class action lawsuit. This notice is specifically aimed at those who purchased shares of Zeta Global Holdings Corp. (NYSE: ZETA). If you are among those investors, you should take action as soon as possible to...

Continue Reading
Korean National Heritage Media Art Exhibition Launches

Updated Category News Views 54

Innovative Media Art Exhibition to Celebrate Korean Heritage The Korea Heritage Agency is excited to showcase a groundbreaking exhibition entitled 'The Heritage Garden – Threads of Connection'. This unique event aims to present the exquisite beauty and cultural richness of Korean national heritage through the lens of modern digital technology. A Fusion of Culture and...

Continue Reading
Insights into Sampo plc’s Recent Share Buybacks Activity

Updated Category News Views 199

Sampo plc’s Share Buyback Overview Sampo plc has been actively managing its shares, recently announcing its buyback activities, emphasizing the company's commitment to enhancing shareholder value. The latest acquisition took place on 17 November 2025, executed with an intention aligned with market regulations, showcasing Sampo's financial discipline and strategic...

Continue Reading
Foresight Group Holdings Undertakes Strategic Share Buyback Initiative

Updated Category News Views 272

Foresight Group's Share Buyback Program Overview Foresight Group Holdings Limited, renowned for its expertise in managing investments in real assets, has initiated a strategic share buyback program. This program, first announced in early April, reflects the Group's commitment to optimizing shareholder value while enhancing its financial positioning within the market....

Continue Reading