Business
Great Elm Capital Corp. Announces Fourth Quarter 2020 Financial Results Highlighted by Net Investment Income of $0.07 Per Share
Company to Host Quarterly Conference Call at 11:00 AM ET Today WALTHAM, Mass., March 16, 2021 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,”
About this update from Great Elm Group, Inc.
[{"type":"text","content":"Company to Host Quarterly Conference Call at 11:00 AM ET Today\nWALTHAM, Mass., March 16, 2021 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,” or “GECC,”) (NASDAQ: GECC), a business development company, today announced its financial results for the fourth quarter and year ended December 31, 2020. Financial Highlights Net investment income (“NII”) for the quarter was $1.6 million, as compared to NII of $1.9 million for the quarter ended September 30, 2020. NII was impacted by slower than anticipated deployment of capital following the completion of GECC’s rights offering, repayments and higher than anticipated legal expenses.NII per share was $0.07 based on weighted average shares outstanding of 22,249,283, as compared to NII per share of $0.18, based on weighted average shares outstanding of 10,660,894, for the quarter ended September 30, 2020.On October 1, 2020, we 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, we sold 10,761,950 shares of our common stock for aggregate gross proceeds of approximately $31.7 million.As of December 31, 2020, GECC’s asset coverage ratio was approximately 167.1%, up from 150.9% as of September 30, 2020, 144.5% as of June 30, 2020 and 141.1% as of March 31, 2020. GECC’s minimum asset coverage ratio is 150.0%.Net assets grew to approximately $79.6 million on December 31, 2020, as compared to net assets of $60.5 million at September 30, 2020, $53.2 million at June 30, 2020 and $50.8 million at March 31, 2020.NAV per share was $3.46 on December 31, 2020, compared to $5.53 at September 30, 2020. The decline from the prior quarter includes the effect of dilution of $1.35 per share from the rights offering and $0.06 per share from stock distributions in the fourth quarter of 2020.For the year ended December 31, 2020, we repurchased $5.3 million in aggregate principal of our senior notes at a weighted average price of $19.16 per note. Management CommentaryPeter A. Reed, GECC’s Chief Executive Officer, stated, “Our fourth quarter income decline was the result of cash drag from higher cash balances than we had planned, greater than anticipated legal expenses, and unrealized losses from legacy investments. Our position in Avanti was the...