Capital Southwest Announces Financial Results for Second Fiscal Quarter Ended September 30, 2026
Key Highlights
- ➤$391.0 million in new commitments marked Capital Southwest’s largest origination quarter
- ➤Pre-tax net investment income $37.2 million, or $0.58 per share
- ➤Regular $0.58 dividend plus $0.06 supplemental dividend declared
- ➤$350 million of 6.750% Notes due 2031 issued to repay Corporate Credit Facility
- ➤SBA approved SBIC II leverage commitment increase to $250 million
Expert Statements
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“Capital Southwest delivered the largest origination quarter in our history, with approximately $391 million of originations across 14 new and 16 existing portfolio companies.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“We also committed $25 million to Desert Star, a new joint venture with Trinity Capital.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“This new joint venture gives us access to the technology lending market in partnership with Trinity, allowing us to gain exposure through a granular portfolio of investments in an area where we have not historically focused.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“Our portfolio continued to generate strong earnings for our shareholders, producing $0.58 of pre-tax net investment income per share.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“Reflecting the strength of our earnings profile, the Board of Directors again declared a regular quarterly dividend of $0.58 per share, of which $0.1934 per share will be paid for each of October, November and December 2026, and a supplemental quarterly dividend of $0.06 to be paid in December 2026.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“We also continued to strengthen and diversify our capital base.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“During the quarter, we successfully raised a new $350 million unsecured bond at 6.75%, which we used to pay down our Corporate Credit Facility.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“We also continued to efficiently raise equity capital during the quarter, raising approximately $67 million through our Equity ATM Program.”
Michael Sarner, President and Chief Executive Officer of Capital Southwest
“Finally, pursuant to recent legislation, we received SBA approval to increase Capital Southwest SBIC II, LP's leverage commitment from $175 million to $250 million, further enhancing our capacity to deploy capital through SBIC II.”
DALLAS, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the second fiscal quarter ended September 30, 2026.
Second Quarter Fiscal Year 2027 Financial Highlights * Total Investment Portfolio at Fair Value: $2.4 billion * Credit Portfolio at Fair Value of $2.2 billion * 99% 1st Lien Senior Secured Debt * $376.8 million in new committed credit investments during the quarter * Weighted Average Yield on Debt Investments: 10.9% * Current non-accruals with a fair value of $34.8 million, representing 1.4% of the total investment portfolio, and a cost basis of $85.5 million, representing 3.5% of the total investment portfolio
Get started
Create a free account to read the full story.