Business
Great Elm Capital Corp. Announces First Quarter 2021 Financial Results Highlighted By 12.4% Increase in Nav Per Share
Company to Host Quarterly Conference Call at 11:00 AM ET Today WALTHAM, Mass., May 07, 2021 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,” or
About this update from Great Elm Capital Corp.
[{"type":"text","content":"Company to Host Quarterly Conference Call at 11:00 AM ET Today\nWALTHAM, Mass., May 07, 2021 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,” or “GECC,”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2021. Financial Highlights Net investment income (“NII”) for the quarter was $1.5 million, as compared to NII of $1.6 million for the quarter ended December 31, 2020. NII was largely flat quarter-over-quarter due to slower than anticipated deployment of capital in January which subsequently accelerated in February and March.NII per share was $0.06 based on weighted average shares outstanding of 23,401,837, as compared to NII per share of $0.07, based on weighted average shares outstanding of 22,249,283, for the quarter ended December 31, 2020.As of March 31, 2021, GECC’s asset coverage ratio was approximately 177.1%, up from 167.1% as of December 31, 2020, and 141.1% as of March 31, 2020.Net assets grew to approximately $91.5 million on March 31, 2021, as compared to $79.6 million on December 31, 2020, and $50.8 million at March 31, 2020.NAV per share of $3.89 as of March 31, 2021, compared to $3.46 at December 31, 2020. NAV per share was $5.05 as of March 31, 2020. New $25.0 Million Credit FacilityGECC yesterday announced that it closed a $25.0 million senior secured revolving line of credit with City National Bank. Borrowings under the revolving line bear interest at the applicable LIBOR rate plus 3.50% with a 1.00% floor. The revolving line of credit has a three year term with a maturity date of May 5, 2024, subject to a springing maturity on May 15, 2022 if the company’s 6.50% notes due 2022 are not refinanced on or prior to such date. Management CommentaryPeter A. Reed, GECC’s Chief Executive Officer, stated, “We saw a significant increase in NAV per share during the period, largely related to unrealized gains as a result of several positive developments at our portfolio companies during the first quarter. We reported lower than expected net investment income during the quarter as we entered the year with a significant cash balance which was deployed at a pace that increased over February and March at favorable yields. Our new $25 million credit facility provides financial flexibility and improves the company’s ability to be more fully ...