Great Elm Capital Corp. Advances with Unsecured Notes Offering
Great Elm Capital Corp. Initiates Unsecured Notes Offering
Great Elm Capital Corp. (the "Company" or "GECC") has announced the launch of an underwritten public offering of unsecured notes set to mature in 2030. This move is part of their strategy to strengthen their financial position and enhance investment capabilities.
Details of the Offering
The issued notes, expected to be listed on The Nasdaq Global Market with the trading symbol "GECCG," are planned to be active within 30 days from the date of issuance. The specific interest rate and other terms will be established through discussions between the Company and their selected underwriters.
Utilization of Proceeds
The net proceeds from this offering will be directed primarily toward redeeming existing debts, including the Company's outstanding 8.75% notes due in 2028. Additionally, excess funds may also be allocated for repurchasing outstanding 5.875% notes due in 2026, 8.50% notes due in 2029, and 8.125% notes due in 2029. Remaining proceeds may also assist in repaying any outstanding borrowings from the revolving credit facility or other general corporate applications that align with their investment goals.
Key Players in the Offering
Lucid Capital Markets, LLC, alongside Piper Sandler & Co., serves as the joint book-running managers for the offering, while Clear Street LLC, InspereX LLC, and Janney Montgomery Scott LLC have been appointed as co-managers.
Investment Considerations
Investors should thoroughly evaluate the investment objectives, risks, and costs associated with investing in Great Elm Capital Corp. prior to making any commitments. The preliminary prospectus and prospectus supplement will include detailed descriptions of these factors and significant information relating to the Company.
About Great Elm Capital Corp.
GECC operates as an externally managed business development company with a mission to generate current income and foster capital growth by investing in a diverse range of debt and income-producing equity securities. This includes investments focused on specialty finance businesses and collateralized loan obligations (CLOs).
Frequently Asked Questions
What is the purpose of the unsecured notes offering by GECC?
The offering aims to strengthen GECC's financial position, primarily through the redemption of existing debts.
How can investors find more information about the offering?
Investors can access the prospectus supplement and additional details through the SEC’s website and contact IR for specific inquiries.
Who are the underwriters involved in the offering?
Lucid Capital Markets, LLC and Piper Sandler & Co. lead the offering as joint book-running managers.
What debt is GECC focusing on redeeming with the proceeds?
GECC plans to redeem its 8.75% notes due 2028, alongside potential repurchases of other outstanding notes.
What investment strategies does GECC employ?
GECC invests in debt and income-generating equity securities with the aim of achieving current income and capital appreciation.
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