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Great Elm Capital Corp. Announces First Quarter 2023 Financial Results
Company to Host Conference Call and Webcast at 8:30 AM ET Today WALTHAM, Mass., May 04, 2023 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the
About this update from Great Elm Capital Corp.
[{"type":"text","content":"Company to Host Conference Call and Webcast at 8:30 AM ET Today\nWALTHAM, Mass., May 04, 2023 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC,”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2023. First Quarter and Other Recent Highlights: Net investment income (“NII”) for the quarter ended March 31, 2023 grew 26% to $2.8 million, or $0.37 per share, as compared to $2.3 million, or $0.30 per share, for the quarter ended December 31, 2022. NII growth was driven by strategic capital deployment and rotation into higher-yielding floating rate investments. This was the highest cash income quarter in the Company’s history with only 15% of GECC’s $8.4 million Total Investment Income attributable to PIK and accretion income.Net assets were $90.3 million, or $11.88 per share, on March 31, 2023, as compared to $84.8 million, or $11.16 per share, on December 31, 2022, and $69.3 million, or $15.06 per share, on March 31, 2022. Great Elm Healthcare Finance, LLC (“GEHF”) closed on a $50 million committed credit line with Encina Lender Finance to fund the growth of its active pipeline. The facility includes an additional $50 million uncommitted accordion to provide up to $100 million of financing for healthcare-related, secured lending. GECC’s asset coverage ratio was approximately 159.8% as of March 31, 2023, as compared to 154.4% as of December 31, 2022, and 147.5% as of March 31, 2022.The Board of Directors approved a quarterly dividend of $0.35 per share for the second quarter of 2023, equating to an 11.8% annualized yield on March 31, 2023 NAV per share. Management Commentary“Our strategy is bearing fruit, as evidenced by our strong first quarter results with a recovery in NAV and growth in NII. Continued rotation into higher yielding, floating rate, secured investments drove sequential growth in NII and, as a result, we generated NII that exceeded our quarterly dividend,” said Matt Kaplan, GECC’s Chief Executive Officer. “GEHF recently closed on a facility to provide up to $100 million of financing for Great Elm Specialty Finance’s healthcare secured lending platform which will allow this venture with Berkadia to capitalize on its robust pipeline. Looking ahead, we believe we are well positioned to grow NII in the second quarter...