Great Elm Capital Corp. Expands Credit Facility for Growth
Great Elm Capital Corp. Increases Borrowing Power
Great Elm Capital Corp. (NASDAQ: GECC) has recently announced a significant amendment to its revolving credit facility with City National Bank. This change raises the borrowing capacity from $25 million to a remarkable $50 million. Under specific conditions, this facility can be even further expanded to a maximum of $90 million, granting GECC enhanced financial flexibility for future endeavors.
CEO's Insight on the Credit Facility Amendment
In a statement, Matt Kaplan, the CEO of GECC, expressed enthusiasm regarding the updated revolving credit facility. "We are very pleased to announce this amendment to our revolving credit facility with CNB," he noted. This organization has seen impressive growth since its initial partnership in 2021. The new agreement not only lowers borrowing costs by reducing the interest rate from SOFR plus 3% to just SOFR plus 2.5%, but also emphasizes our ongoing commitment to operational performance and capital expansion.
Financial Strategy and Alignment
GECC aims to utilize this increased borrowing capacity to seize appealing investment opportunities that promise risk-adjusted returns. The amendment reflects a strategic pivot to a liability mix featuring more floating-rate debt. This adjustment is aligned with current market conditions, assisting the Company in managing costs while maximizing growth potential.
Positioning of Great Elm Capital Corp.
As an externally managed business development company, Great Elm Capital Corp. focuses on generating income and capital appreciation through investments in debt and equity securities, particularly in specialty finance sectors and collateralized loan obligations (CLOs). This repositioning will help bolster its market strength and stability amidst fluctuating economic conditions.
Contact Information for Investors
For investors and media inquiries, Great Elm Capital Corp. has provided dedicated contact channels. Interested parties can reach out via email at investorrelations@greatelmcap.com for any questions or further information regarding ongoing initiatives and investment strategies.
Frequently Asked Questions
What is the significance of the amendment to the credit facility?
The amendment signifies an increase in borrowing capacity from $25 million to $50 million, enhancing financial flexibility for Great Elm Capital Corp.
Who is the CEO of Great Elm Capital Corp.?
The CEO is Matt Kaplan, who is actively involved in steering the company through strategic initiatives.
What benefits will GECC see from this new credit facility?
The new facility lowers borrowing costs and provides better opportunities for investment while enabling the company to maintain competitive edge.
How does GECC plan to use the additional borrowing capacity?
GECC aims to utilize the increased borrowing power to invest in high-potential opportunities that can deliver compelling returns.
Where can I find more information about Great Elm Capital Corp.?
Visit their official website or reach out through their investor relations email for more details on their initiatives and financials.
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