Business
Great Elm Capital Corp. Announces First Quarter 2020 Financial Results; Maintains Liquid Balance Sheet; First Quarter Net Investment Income of $0.26 Per Share; Board Sets Third Quarter 2020 Distribution of $0.083 Per Share Per Month
WALTHAM, Mass., May 11, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our” or “GECC”), (NASDAQ: GECC), today announced its financial results
About this update from Great Elm Capital Corp.
[{"type":"text","content":"WALTHAM, Mass., May 11, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our” or “GECC”), (NASDAQ: GECC), today announced its financial results for the quarter ended March 31, 2020.\n FINANCIAL HIGHLIGHTS During the quarter ended March 31, 2020, remarkable volatility in the leveraged credit markets meaningfully impacted the fair value of our investments• Net realized losses for the quarter ended March 31, 2020 were approximately $11.3 million, or $1.12 per share. Net unrealized depreciation from investments for the quarter ended March 31, 2020 was approximately $24.9 million, or $2.47 per shareDuring the quarter ended March 31, 2020, we maintained a liquid balance sheet with approximately $22.8 million of cash and no secured credit facilityAs of March 31, 2020, our asset coverage ratio was approximately 141.1% vs. a minimum asset coverage ratio of 150.0% (the “Minimum ACR”)• As a result of falling below the Minimum ACR, we will be subject to certain limitations on our ability to incur additional debt, make cash distributions on junior securities or repurchase junior securitiesIn May 2020, our Board of Directors (the “Board”) set monthly distributions of $0.083 per share for the third quarter of 2020• The distributions will be paid in cash or shares of our common stock at the election of shareholders, although the total amount of cash to be distributed to all shareholders will be limited to approximately 10% of the total distributions to be paid to all shareholders; the remainder of the distributions (approximately 90%) will be paid in the form of shares of our common stockNet investment income (“NII”) for the quarter ended March 31, 2020 was approximately $2.7 million, or $0.26 per share, equating to greater than 1x distribution coverageNet assets on March 31, 2020 were approximately $50.8 million. NAV per share on March 31, 2020 was $5.05, as compared to NAV per share of $8.63 on December 31, 2019, largely driven by unrealized losses in certain of our investments “The fair value of our portfolio was significantly impacted by volatility in the credit markets associated with the COVID-19 pandemic,” remarked Peter A. Reed, GECC’s Chief Executive Officer. “We believe that most of our portfolio companies are well positioned for a difficult economic environment, but they are also grappling with meaningful uncertainty. C...