Business
Great Elm Capital Corp. Announces Third Quarter 2023 Financial Results
Company to Host Conference Call and Webcast at 8:30 AM ET Today WALTHAM, Mass., Nov. 02, 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., Nov. 02, 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 third quarter ended September 30, 2023. Third Quarter and Other Recent Highlights: Net investment income (“NII”) for the quarter ended September 30, 2023 was $3.1 million, or $0.40 per share, as compared to $3.4 million, or $0.44 per share, for the quarter ended June 30, 2023. NII was impacted by $0.05 per share of net expenses in the quarter related to the refinancing of the Company’s 6.50% Notes due 2024. Third consecutive quarter of NII more than covering the dividend, even after refinancing items. Highest cash income quarter in the Company’s history, with only 12% of GECC’s $9.3 million Total Investment Income attributable to PIK and accretion income.Net assets increased to $97.9 million, or $12.88 per share, on September 30, 2023, as compared to $92.9 million, or $12.21 per share, on June 30, 2023. GECC’s asset coverage ratio improved to 168.4% as of September 30, 2023, as compared to 161.5% as of June 30, 2023, and 165.5% as of September 30, 2022.Successfully refinanced all $42.8 million of the Company’s 6.50% Notes due June 30, 2024 with $40.0 million of new 8.75% Notes due September 30, 2028 and cash on hand.The Board of Directors approved a quarterly dividend of $0.35 per share for the fourth quarter of 2023, equating to a 15.8% annualized yield on the Company’s closing market price on November 1, 2023 of $8.88. Management Commentary “We generated yet another quarter of very strong total investment income, with our NII exceeding the quarterly dividend for the third straight quarter. Our NAV continued to grow through harvesting of lower-yielding investments and redeploying the capital into higher-yielding, higher-quality investments,” said Matt Kaplan, GECC’s Chief Executive Officer. “The strategic initiatives taken over the last 18 months, spearheaded by our new management team, have truly transformed Great Elm and strengthened our portfolio. In addition, during the quarter, we contributed our core specialty finance investments into a single, streamlined operating company – Great Elm Specialty Finance – which we believe will further propel the Company’...