SWS Group Completes $100 Million Capital Raise

SWS Group, Inc. SWS today announced the completion of its $100 million capital raise with Hilltop Holdings Inc. HTH and Oak Hill Capital Partners. The capital will be used to address asset quality issues at its banking subsidiary, Southwest Securities, FSB, and for other corporate purposes, including growth opportunities for its broker-dealer. Pursuant to the transaction, Hilltop and Oak Hill Capital each made a $50 million loan to SWS Group, and SWS Group issued each of Hilltop and Oak Hill Capital a warrant to purchase shares of common stock of SWS Group at an exercise price of $5.75 per share. Upon full exercise of the warrants, Hilltop and Oak Hill Capital would each own approximately 17 percent of the Company.