DALLAS, June 12, 2008 (PRIME NEWSWIRE) -- Capital Southwest Corporation (Nasdaq:CSWC) announced today that its Board of Directors has approved a share repurchase plan whereby the Company may repurchase up to 10 percent (or 388,915 shares) of its Common Stock at prices not above the lower of the net asset value per share of its Common Stock, or prices prevailing in the over-the-counter market at the time of such purchases.
Capital Southwest anticipates that share purchases will be made from time to time, depending upon market conditions. Shares may be purchased in the open market, including block purchases, or through privately negotiated transactions. The Company does not intend to repurchase any shares from directors, officers or other affiliates of Capital Southwest. The repurchase program does not obligate Capital Southwest to acquire any specific number of shares and may be discontinued at any time.
"This action by the Board signals its recognition of the value of our own stock at these present discounts to net asset value and demonstrates their commitment to deliver long-term value," said Gary Martin, President and CEO of Capital Southwest. "We believe that acquiring our shares at prices below the Company's net asset value is both accretive to our reported net asset value per share and is a good use of available funds."
Based on the Company's present share price, the plan represents an approximate $44 million share repurchase. Capital Southwest intends to fund the repurchases with available cash and or the sale of marketable securities readily available for sale. The repurchase program is expected to be in effect through December 10, 2008, or until the approved number of shares has been repurchased.
On June 11, 2008, the last reported sale price of the Company's Common Stock was $113.01 per share. As of March 31, 2008, the net asset value of the Company's Common Stock was $150.09 per share on 3,889,151 shares outstanding.
About Capital Southwest
Capital Southwest is a Dallas-based investment company that provides patient equity capital to exceptional businesses. As a public company (Nasdaq:CSWC), Capital Southwest has the flexibility to hold investments indefinitely, which has provided its managers a stable ownership platform since its founding in 1961.