Business
Great Elm Capital Corp. Announces First Quarter 2024 Financial Results
Company to Host Conference Call and Webcast at 5:00 PM ET Today PALM BEACH GARDENS, Fla., May 02, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,”
About this update from Great Elm Group, Inc.
[{"type":"text","content":"Company to Host Conference Call and Webcast at 5:00 PM ET Today\nPALM BEACH GARDENS, Fla., May 02, 2024 (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, 2024. First Quarter and Other Recent Highlights: In February 2024, the Company raised $24 million of equity at Net Asset Value from a special purchase vehicle (“SPV”), supported by a $6 million investment by Great Elm Group (“GEG”) into the SPV.In April 2024, the Company issued $34.5 million of 8.50% notes due 2029 (the “GECCI Notes”) to further bolster liquidity and provide balance sheet flexibility.Net investment income (“NII”) for the quarter ended March 31, 2024 was $3.2 million, or $0.37 per share, as compared to $3.3 million, or $0.43 per share, for the quarter ended December 31, 2023. Fifth consecutive quarter of NII per share covering the base dividend. Net assets were $118.8 million, or $12.57 per share, on March 31, 2024, as compared to $98.7 million, or $12.99 per share, on December 31, 2023. NAV adversely impacted by $0.55 per share in the quarter from write-downs on certain investments in illiquid assets originated by prior management. GECC’s asset coverage ratio improved to 180.2% as of March 31, 2024, as compared to 169.0% as of December 31, 2023, and 159.8% as of March 31, 2023. Asset coverage ratio pro forma for April bond issuance of approximately 166.9%. The Board of Directors approved a quarterly dividend of $0.35 per share for the second quarter of 2024, equating to a 13.5% annualized yield on the Company’s closing market price on May 1, 2024 of $10.36. Management Commentary “With 2024 underway, we were pleased to generate NII that covered the dividend for the fifth consecutive quarter,” said Matt Kaplan, GECC’s Chief Executive Officer. “NAV in the quarter was negatively impacted by 55 cents per share from illiquid investments in two portfolio companies which we inherited from prior management. We also successfully completed a Notes offering shortly after quarter-end, which provides us with additional capital to deploy into quality investments that offer attractive risk-adjusted returns for our shareholders. Additionally, we recently announced a JV to invest in CLO entities and related warehouse facilit...