Business
Great Elm Capital Corp. Announces Fourth Quarter and Full Year 2021 Financial Results
Company to Host Quarterly Conference Call and Webcast at 11:00 AM ET Today WALTHAM, Mass., March 04, 2022 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,”
About this update from Great Elm Group, Inc.
[{"type":"text","content":"Company to Host Quarterly Conference Call and Webcast at 11:00 AM ET Today WALTHAM, Mass., March 04, 2022 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the fourth quarter and year ended December 31, 2021. Effective February 28, 2022, GECC implemented a 6-for-1 reverse split of its outstanding common stock and all per share amounts below are presented on a split adjusted basis unless otherwise noted. Today GECC Announces It is seeking to raise capital to fund its specialty finance strategy.New board leadership with the appointment of two new board members, including a new chairman, with extensive investment, financial, and operational experience.A CEO transition with Matt Kaplan assuming the CEO role to execute on a strategy anchored in growing GECC’s specialty finance platform alongside a less concentrated, performing credit portfolio.Our Board of Directors has approved a quarterly dividend of $0.45 per share for the second quarter of 2022, equating to a 10.8% annualized yield on pro forma NAV per share.Great Elm Capital Management, Inc., GECC’s external investment advisor, has indicated that it intends to waive all accrued incentive fees as of March 31, 2022, provided GECC’s shareholders approve a proposal to reset the incentive fee total return hurdle. As of December 31, 2021 there were approximately $4.9 million, or $1.08 per share, of accrued fees held on GECC’s balance sheet. If that waiver is obtained, we would expect to recognize the reversal of these accrued fees during the period ending March 31, 2022, contingent upon approval of the new incentive fee hurdles by GECC’s stockholders, resulting in a corresponding increase in income and increase in net asset value in such period (subject to any offsetting additional expenses or losses). Financial and Operating Highlights Net investment income (“NII”) for the quarter ended December 31, 2021 was $7.1 million, or $1.58 per share. NII for the quarter ended December 31, 2021 was positively impacted by the reversal of approximately $5.2 million of previously accrued incentive fees associated with our investments in the secured debt of Avanti that have been deemed unlikely to be collected. Net assets were approximately $74.6 million on December 31, ...