Great Elm Capital Corp. Launches $36 Million Note Offering

Great Elm Capital Corp. Announces Note Pricing

Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC) has recently moved forward with a public offering of $36,000,000 in 8.125% notes maturing in 2029. This offering is a significant step for the company, promising net proceeds of around $34.4 million once underwriting expenses are accounted for.

Details of the 8.125% Notes

The newly issued notes are expected to mature on December 31, 2029. Investors will have the opportunity to redeem these notes partially or wholly starting from December 31, 2026. Furthermore, GECC has empowered the underwriters with a 30-day option to purchase additional notes worth up to $5,400,000 to address any over-allotments.

Closing Conditions and Trading Information

Completion of this transaction is contingent upon standard closing conditions. The notes are anticipated to be delivered around September 19, 2024, and they will be listed on The Nasdaq Global Market under the symbol “GECCH,” with trading expected to begin within the month following the issue date.

Utilization of Proceeds

The proceeds from this offering are earmarked for redeeming all outstanding 6.75% unsecured notes due 2025. This move reflects the company's strategic initiatives to strengthen its financial position and enhance operational efficiency.

Management Team Overview

The offering is being managed by Lucid Capital Markets, LLC, alongside Janney Montgomery Scott LLC and Piper Sandler & Co., who are the joint book-running managers for this venture. In addition, Clear Street LLC, InspereX LLC, and Ladenburg Thalmann & Co. Inc. are co-managing the process, ensuring a well-supported and efficient offering.

Investor Advisory and Regulation

All potential investors should assess their investment goals and the associated risks before considering participation in the offering. The preliminary prospectus, which was filed with the Securities and Exchange Commission (SEC), provides vital information regarding the offering, and it is crucial for investors to review this document thoroughly.

The Company’s Mission

Great Elm Capital Corp. is recognized as an externally managed business development company. Its focus lies on generating current income coupled with capital appreciation through a well-rounded approach to debt and equity investments, particularly evident in specialty finance sectors. The company's dedicated efforts in these areas signify its commitment to delivering shareholder value while navigating market challenges.

About Forward-Looking Statements

In this announcement, forward-looking statements may arise, characterized by words like “expect,” “anticipate,” and “estimate.” These projections are subject to various risks and uncertainties that could result in actual outcomes varying significantly from those expected. Key factors influencing this include market conditions, interest rate fluctuations, and overall portfolio performance. Comprehensive details regarding these risks are contained in GECC’s filings with the SEC, including its Annual Report.

Frequently Asked Questions

What is the total amount of the note offering by Great Elm Capital Corp.?

The total amount for the public offering of notes is $36,000,000.

What is the maturity date for the issued 8.125% notes?

The notes will mature on December 31, 2029.

What will the proceeds from the offering be used for?

The proceeds will primarily be used to redeem existing 6.75% unsecured notes due in 2025.

Who are the managers for this offering?

Lucid Capital Markets, LLC, Janney Montgomery Scott LLC, and Piper Sandler & Co. are serving as joint book-running managers for the offering.

What does Great Elm Capital Corp. focus on?

GECC aims to generate income and capital appreciation through investments in debt and income-generating equities, particularly in the specialty finance sector.

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