NASDAQ: CSWC CAPITAL SOUTHWEST CORP 8-K

Capital Southwest reports Q1 FY2027 pre-tax NII of $0.57/share, declares $0.64 total dividend

Filed August 3, 2026 · Period ending August 3, 2026 · ~1 min read

Key Changes

high

Pre-tax net investment income of $35.0M ($0.57/share) for Q1 FY2027 ended June 30, 2026. Board declared $0.58 regular quarterly dividend (paid monthly) plus $0.06 supplemental dividend, totaling $0.64/share for the quarter ending September 30, 2026.

Exhibit 99.1 view on EDGAR →
high

Raised $62.6M net proceeds via ATM program, selling 2.7M shares at weighted-average $23.47 (141% of NAV), accretive to existing shareholders. NAV declined modestly from $16.69 to $16.61/share quarter-over-quarter.

Exhibit 99.1 view on EDGAR →
high

Non-accrual investments totaled $23.4M fair value (1.1% of portfolio) with $65.7M cost basis (2.9% of portfolio), indicating $42.3M unrealized depreciation on distressed credits.

Exhibit 99.1 view on EDGAR →
medium

Originated $222.3M in new commitments across 11 new and 16 existing portfolio companies. Credit portfolio totaled $2.0B at fair value, 99% first lien senior secured debt, with 10.9% weighted average yield.

Exhibit 99.1 view on EDGAR →
medium

CapTrin joint venture closed $150M credit facility in April 2026 with accordion to up to $350M. As of June 30, CapTrin held $97.8M portfolio across 14 companies with $59.0M debt outstanding and 1.4x fund leverage.

Exhibit 99.1 view on EDGAR →

Summary

Capital Southwest reported solid Q1 FY2027 results with pre-tax net investment income of $0.57 per share and declared a total dividend of $0.64 per share for the quarter ending September 30, 2026. The company originated $222.3 million in new commitments and raised $62.6 million in net proceeds through its ATM program at a 41% premium to NAV, which is accretive to existing shareholders.

The modest NAV decline from $16.69 to $16.61 per share reflects $10.9 million in net realized and unrealized losses, partially offset by the above-NAV equity issuance. Non-accrual investments represent 1.1% of the portfolio at fair value but carry $42.3 million in unrealized depreciation (cost basis 2.9% of portfolio), indicating meaningful markdowns on distressed credits.

The credit portfolio remains heavily weighted toward first lien senior secured debt (99%) with a 10.9% weighted average yield. The CapTrin joint venture's new $150 million credit facility provides additional financing capacity for middle-market lending. With undistributed taxable income of $0.87 per share as of June 30, 2026, the company has capacity to sustain its dividend policy while continuing to deploy capital into new originations.

Section-by-Section Diff

Event · Item 7.01 — Regulation FD Disclosure

~100 words

Capital Southwest furnished investor presentation slides for an August 4, 2026 analyst/investor conference call.

1 Added

Show 1 minor / wording change

Added Investor presentation furnished low

Added in current filing · verify on EDGAR →

The Company expects to hold a conference call with analysts and investors on August 4, 2026. A copy of the investor presentation slides to be used by the Company on such conference call is furnished as Exhibit 99.2 to this Form 8-K and incorporated herein by reference.

Capital Southwest disclosed it will hold a conference call with analysts and investors on August 4, 2026, and furnished the presentation slides as Exhibit 99.2. This is a routine Regulation FD disclosure providing materials in advance of an investor call.

Event · Exhibit 99.1

~5,000 words View exhibit on EDGAR ↗

Capital Southwest reported Q1 FY2027 results: $0.57 pre-tax NII/share, $222M new commitments, $0.64 total dividend declared, NAV $16.61/share.

4 Added

Added Q1 FY2027 earnings and portfolio activity high

Added in current filing · view on EDGAR →

Pre-Tax Net Investment Income: $35.0 million, or $0.57 per weighted average common share outstanding

Capital Southwest generated $35.0 million in pre-tax net investment income for the quarter ended June 30, 2026, equivalent to $0.57 per weighted average share. The company originated $222.3 million in new commitments across 11 new and 16 existing portfolio companies, with new platform deals averaging 2.8x senior leverage and 29% loan-to-value. The credit portfolio totaled $2.0 billion at fair value, 99% first lien senior secured debt, with a weighted average yield of 10.9%.

Added CapTrin joint venture credit facility medium

Added in current filing · view on EDGAR →

CapTrin entered into $150.0 million special purpose vehicle financing credit facility in April 2026, with an accordion feature that allows for an increase of total commitments to up to $350.0 million

CapTrin, CSWC's unconsolidated joint venture, closed a $150 million special purpose vehicle financing credit facility in April 2026 with an accordion feature allowing expansion to $350 million. As of June 30, 2026, CapTrin held a portfolio of $97.8 million across 14 companies (100% first lien debt) with $59.0 million of debt outstanding and 1.4x fund leverage. CapTrin paid CSWC a $0.3 million quarterly dividend.

Added Equity capital raise via ATM program medium

Added in current filing · view on EDGAR →

During the quarter ended June 30, 2026, the Company sold 2,708,438 shares of its common stock under the Equity ATM Program at a weighted-average price of $23.47 per share, raising $63.6 million of gross proceeds. Net proceeds were $62.6 million after commissions to the sales agents on shares sold.

Capital Southwest raised $62.6 million in net proceeds during Q1 FY2027 by selling 2,708,438 shares at a weighted-average price of $23.47 per share through its at-the-market equity offering program. The issuance was at a premium to the June 30, 2026 NAV of $16.61 per share, which is accretive to existing shareholders. As of quarter-end, $1,066.3 million remained available under the $2 billion ATM program.

Added NAV and portfolio credit quality high

Added in current filing · view on EDGAR → · paraphrased

The Company's NAV at June 30, 2026 was $16.61 per share, compared to $16.69 per share in the prior quarter. ... Current non-accruals with a fair value of $23.4 million, representing 1.1% of the total investment portfolio, and a cost basis of $65.7 million, representing 2.9% of the total investment portfolio

NAV declined modestly from $16.69 to $16.61 per share quarter-over-quarter, primarily due to restricted stock grants and $10.9 million in net realized and unrealized losses, partially offset by above-NAV equity issuance. Non-accrual investments totaled $23.4 million at fair value (1.1% of portfolio) with a cost basis of $65.7 million (2.9% of portfolio), indicating $42.3 million in unrealized depreciation on distressed credits.

Event · Exhibit 99.2

~6,200 words View exhibit on EDGAR ↗

Capital Southwest reported Q1 FY2027 results: $0.57 pre-tax NII per share, declared $0.58 regular + $0.06 supplemental dividend, raised $63.6M via ATM.

3 Added

Added Q1 FY2027 dividend high

Added in current filing · view on EDGAR →

Declared a regular quarterly dividend of $0.58 per share, of which $0.1934 per share will be paid monthly for each of July, August, and September 2026 ◦ In addition, declared a quarterly supplemental dividend of $0.06 per share for the quarter ending September 30, 2026

The Board declared a regular quarterly dividend of $0.58 per share (paid monthly at $0.1934 per month for July, August, and September 2026) plus a supplemental dividend of $0.06 per share. Total quarterly payout is $0.64 per share. The company also disclosed undistributed taxable income of $0.87 per share as of June 30, 2026.

Added Joint Venture credit facility medium

Added in current filing · view on EDGAR →

Closed $150.0 MM Credit Facility for Joint Venture

The company closed a $150 million credit facility for CapTrin Partners, LLC, the joint venture co-managed with Trinity Capital Inc. This provides additional financing capacity for the joint venture's middle-market lending activities.

Added Investment activity medium

Added in current filing · view on EDGAR →

During the quarter, CSWC originated $222.3 MM in total new committed investments ($173.2 MM funded at close) to eleven new portfolio companies and sixteen existing portfolio companies ◦ Committed investments to new portfolio companies consisted of $167.4 MM in first lien debt and $5.6 MM in equity

Capital Southwest originated $222.3 million in new committed investments during the quarter, with $173.2 million funded at close. The company invested in eleven new portfolio companies and sixteen existing ones, primarily in first lien debt ($167.4 million) with some equity co-investments ($5.6 million). The company also exited two debt investments generating $19.5 million in proceeds at a 16.7% weighted average IRR.