Business
Great Elm Capital Corp. (“GECC”) Raises $24 Million of Equity at Net Asset Value
Provides Preliminary Fourth Quarter 2023 Financial Results; Declares First Quarter 2024 Distribution of $0.35 per Share PALM BEACH GARDENS, Fla., Feb. 08,
About this update from Great Elm Capital Corp.
[{"type":"text","content":"Provides Preliminary Fourth Quarter 2023 Financial Results; Declares First Quarter 2024 Distribution of $0.35 per Share\nPALM BEACH GARDENS, Fla., Feb. 08, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”), (NASDAQ: GECC), a business development company, today announced it issued approximately 1.85 million shares of the Company’s common stock at a current net asset value of $12.97 per share to a special purpose vehicle for an aggregate gross purchase price of $24 million (the “Transaction”). The Transaction is supported by a $6 million investment from Great Elm Group, Inc. (“GEG”) in the special purpose vehicle, further aligning the Company’s investment manager with shareholders. “Our ability to raise capital at net asset value is a testament to the repositioning plan we implemented over the past two years,” said Matt Kaplan, GECC’s Chief Executive Officer. “New non-dilutive equity allows us to grow our asset base to further execute on our growth strategy and pursue our robust pipeline of investments. Increased scale will benefit our shareholders as we leverage our infrastructure and further diversify our portfolio.” Jason Reese, GEG’s Chief Executive Officer, said, “GEG is committed to scaling GECC. This transaction is beneficial for all parties and supports GECC’s growth strategy. In addition, the investment structure embedded in this transaction provides a potential template for future capital raising and investment opportunities.” Preliminary Fourth Quarter 2023 Financial Results; Declares First Quarter 2024 Distribution The Company generated net investment income for the quarter ended December 31, 2023 of $0.43 per share and ended the year with net assets of $98.7 million, or $12.99 per share. The Company’s Board of Directors has approved a quarterly cash distribution of $0.35 per share for the quarter ending March 31, 2024. This distribution, together with the prior three quarters of regular distributions and the special distribution declared in December 2023, equates to a 14.6% dividend yield on the Company’s closing market price on February 8, 2024 of $10.26 and a 11.5% dividend yield on the Company’s December 31, 2023 NAV of $12.99 per share. About Great Elm Capital Corp.GECC is an externally managed business development company that seeks to generate current income and capital appreciation by i...