When was Capital Southwest's share repurchase program authorized?

The Board of Directors approved the $20 million share repurchase program on July 28, 2021. The company entered into the related share repurchase agreement on August 31, 2021, which became immediately effective.

Under what conditions can the company repurchase shares?

The program permits open-market purchases at specified thresholds below net asset value per share, in accordance with Rules 10b5-1(c)(1)(i)(B) and 10b-18 under the Securities Exchange Act of 1934. Purchases will cease upon the earlier of reaching $20 million in aggregate price (including fees and expenses) or written termination notice.

Why did Capital Southwest not repurchase shares in Q1 2027?

The filing does not explain the reason for zero repurchases. However, the company sold 2.7 million shares at $23.47 per share through its ATM program during the quarter, raising $62.6 million, suggesting management prioritized equity issuance at prices above NAV ($16.61) over buybacks.

How much of the $20 million authorization remains available?

The filing does not disclose the cumulative amount repurchased since 2021 or the remaining balance under the authorization. Investors would need to review prior filings or investor relations communications for historical repurchase activity.

What is the difference between Capital Southwest's buyback program and its ATM offering?

The buyback program permits repurchases only below NAV per share, acting as a capital-return mechanism. The ATM program allows issuance of new shares at market prices (above NAV in this case), providing capital for new investments. The company uses both tools depending on market conditions and capital needs.

Is Capital Southwest's share repurchase program still active?

Yes, the filing confirms the program remains active with no indication of termination. However, zero repurchases occurred in Q1 2027. The company will continue to evaluate repurchase opportunities if shares trade at qualifying discounts to NAV.

CSWC 8-K Filed 2026-08-03 Execution disclosure

Capital Southwest repurchased zero shares in Q1 2027

No activity under existing $20M buyback program; authorization remains intact from 2021

MechanismRule 10b-18 open-market purcha

What the filing says

Capital Southwest Corporation (Nasdaq: CSWC) disclosed in its first-quarter fiscal 2027 earnings release (8-K filed August 3, 2026) that it did not execute any share repurchases during the three months ended June 30, 2026 under its existing repurchase program. The company maintains a $20 million share repurchase authorization originally approved by the Board on July 28, 2021, and formalized through a share repurchase agreement effective August 31, 2021.

The program permits open-market purchases at specified thresholds below net asset value per share, in compliance with Rules 10b5-1(c)(1)(i)(B) and 10b-18 of the Securities Exchange Act of 1934. The company will cease purchasing shares upon the earlier of: (1) aggregate purchase price reaching $20 million (including all fees, costs, and expenses), or (2) written termination notice to the broker. No repurchase activity occurred in the reported quarter, and the filing does not disclose the remaining balance available under the authorization or indicate plans for future repurchases.

20000000

During the quarter ended June 30, 2026, the Company did not repurchase any shares of the Company's common stock under the share repurchase program. — CAPITAL SOUTHWEST CORP 8-K filing · View on SEC EDGAR →

What this means

Capital Southwest's $20 million buyback authorization, approved nearly five years ago, remains dormant. The company explicitly confirms zero repurchases during Q1 2027 (quarter ended June 30, 2026). With net assets of $1.06 billion and NAV per share of $16.61 at quarter-end, the company instead deployed capital through its $2 billion at-the-market offering, selling 2.7 million shares at $23.47 weighted-average price (raising $62.6 million net proceeds). This reflects management's preference for equity issuance over buybacks—a common BDC posture when shares trade above NAV and capital is needed for new portfolio investments.

Frequently asked questions

When was Capital Southwest's share repurchase program authorized?: The Board of Directors approved the $20 million share repurchase program on July 28, 2021. The company entered into the related share repurchase agreement on August 31, 2021, which became immediately effective.
Under what conditions can the company repurchase shares?: The program permits open-market purchases at specified thresholds below net asset value per share, in accordance with Rules 10b5-1(c)(1)(i)(B) and 10b-18 under the Securities Exchange Act of 1934. Purchases will cease upon the earlier of reaching $20 million in aggregate price (including fees and expenses) or written termination notice.
Why did Capital Southwest not repurchase shares in Q1 2027?: The filing does not explain the reason for zero repurchases. However, the company sold 2.7 million shares at $23.47 per share through its ATM program during the quarter, raising $62.6 million, suggesting management prioritized equity issuance at prices above NAV ($16.61) over buybacks.
How much of the $20 million authorization remains available?: The filing does not disclose the cumulative amount repurchased since 2021 or the remaining balance under the authorization. Investors would need to review prior filings or investor relations communications for historical repurchase activity.
What is the difference between Capital Southwest's buyback program and its ATM offering?: The buyback program permits repurchases only below NAV per share, acting as a capital-return mechanism. The ATM program allows issuance of new shares at market prices (above NAV in this case), providing capital for new investments. The company uses both tools depending on market conditions and capital needs.
Is Capital Southwest's share repurchase program still active?: Yes, the filing confirms the program remains active with no indication of termination. However, zero repurchases occurred in Q1 2027. The company will continue to evaluate repurchase opportunities if shares trade at qualifying discounts to NAV.

execution bdc zero-repurchases rule-10b-18 middle-market-lending atm-program

Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.