Great Elm Capital Corp. Announces Note Pricing
Great Elm Capital Corp. (referred to as the “Company” or “GECC”) (NASDAQ: GECC) has taken a significant step by launching a public offering for $36,000,000 in 8.125% notes, which will mature in 2029. This offering is expected to yield net proceeds of approximately $34.4 million after covering underwriting costs.
Details of the 8.125% Notes
The new notes are set to mature on December 31, 2029. Investors will have the option to redeem these notes either partially or fully starting from December 31, 2026. Additionally, GECC has granted underwriters a 30-day window to buy up to $5,400,000 in additional notes to accommodate any over-allotment requests.
Closing Conditions and Trading Information
This transaction is subject to standard closing conditions. The notes are expected to be delivered around September 19, 2024, and will be listed on The Nasdaq Global Market under the symbol “GECCH.” Trading is anticipated to commence within a month after the issuance date.
Utilization of Proceeds
The proceeds from this offering are designated for the redemption of all outstanding 6.75% unsecured notes that are due in 2025. This strategic move underscores the company’s commitment to bolstering its financial stability and enhancing operational efficiency.
Management Team Overview
Lucid Capital Markets, LLC is overseeing this offering, partnering with Janney Montgomery Scott LLC and Piper Sandler & Co. as joint book-running managers. Furthermore, Clear Street LLC, InspereX LLC, and Ladenburg Thalmann & Co. Inc. are co-managing the offering, ensuring a well-organized and effective process.
Investor Advisory and Regulation
All prospective investors are advised to review their financial goals and consider the associated risks before participating in the offering. The preliminary prospectus filed with the Securities and Exchange Commission (SEC) contains important information about the offering, and it’s essential for investors to read this document thoroughly.
The Company’s Mission
Great Elm Capital Corp. is known as an externally managed business development company. It focuses on generating current income along with capital appreciation through a diverse approach to debt and equity investments, particularly in the specialty finance sectors. The company's efforts in these areas highlight its dedication to enhancing shareholder value, even amidst market challenges.
About Forward-Looking Statements
This announcement may contain forward-looking statements, often identified by words like “expect,” “anticipate,” and “estimate.” These predictions carry various risks and uncertainties, which could lead to actual results differing significantly from expectations. Key factors that may impact these outcomes include market conditions, interest rate changes, and overall portfolio performance. Detailed information regarding these risks is available 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 for the public offering of notes is $36,000,000.
What is the maturity date for the issued 8.125% notes?
The notes are set to mature on December 31, 2029.
What will the proceeds from the offering be used for?
The proceeds are primarily intended 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 the 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 both debt and income-generating equities, especially within the specialty finance sector.
