Business
Great Elm Capital Corp. Announces Third Quarter 2020 Financial Results Highlighted by Net Investment Income of $0.18 per Share
Company to Host Quarterly Conference Call at 11:00 AM ET Today WALTHAM, Mass., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,”
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., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,” “GECC,” or “Great Elm BDC”), (NASDAQ: GECC), a business development company (BDC), today announced its financial results for the third quarter ended September 30, 2020.\n Financial Highlights Net investment income (“NII”) for the quarter increased quarter-over-quarter to $1.9 million, as compared to NII of $0.9 million for the quarter ended June 30, 2020, as the Company reported a full period of NII following the strategic repositioning of its portfolio in the prior quarterNII per share increased to $0.18, as compared to NII per share of $0.09 for the quarter ended June 30, 2020As of September 30, 2020, Great Elm BDC’s asset coverage ratio was approximately 150.9%, up from 144.5% as of June 30, 2020 and up from 141.1% as of March 31, 2020, compared to a minimum asset coverage ratio of 150.0%Net assets on September 30, 2020 grew to approximately $60.5 million, as compared to net assets of $53.2 million at June 30, 2020 and $50.8 million at March 31, 2020.NAV per share on September 30, 2020 increased to $5.53, from $5.10 per share at June 30, 2020For the nine months ended September 30, 2020, we repurchased $5.3 million in aggregate principal of our senior notes at a weighted average price of $19.16 per note Rights Offering Subsequent to quarter end, on October 1, 2020, the Company successfully completed a non-transferable rights offering which entitled holders of rights to purchase one new share of common stock for each right held at a subscription price of $2.95 per share. In total, the Company sold 10,761,950 shares of its common stock for aggregate gross proceeds of approximately $31.7 million.As of October 1, 2020, total shares outstanding were 21,703,720 (see selected pro-forma balance sheet information in attached tables)NAV per share at September 30, 2020 was $4.18 after giving effect to the rights offeringAsset coverage ratio was approximately 176.5% after giving effect to the rights offeringThe parent company of our external manager owns more than 25.4% of outstanding shares following the rights offering Management CommentaryPeter A. Reed, GECC’s Chief Executive Officer, stated, “This was an excellent turnaround quarter, as Great Elm BDC achieved NII growth during th...