Great Elm Capital Corp. Moves Forward with Notes Redemption Plans

Great Elm Capital Corp. Makes Significant Announcement

Great Elm Capital Corp. (NASDAQ: GECC) has taken a bold step that has drawn the attention of investors and market watchers alike. The company has issued notifications to holders of its 6.75% Notes due 2025 (CUSIP No. 390320 406; NASDAQ: GECCM), announcing its intention to redeem these notes in full. This decision is part of the company’s strategic financial management to enhance its investment flexibility.

Details of the Redemption Process

This conditional redemption is exercised under Section 1104 of the Indenture, originally established on September 18, 2017. The transaction is managed by Equiniti Trust Company, serving as the Trustee. Notably, the full redemption is scheduled for October 12, 2024, contingent upon the successful closure of its public offering of new 8.125% Notes due 2029.

Understanding the Redemption Date and Conditions

While October 12, 2024, is indicated as the initial Redemption Date, it's crucial to understand that this date may adjust should the conditions regarding the 2029 Notes Offering change. If the offering has not been completed by the specified Redemption Date, the Company retains the discretion to delay the redemption. Such provisions are designed to enhance the Company's liquidity and financial stability.

Financial Implications of the Notes Redemption

The Notes will be redeemed at their principal amount, which is significant as it indicates the company’s commitment to maintaining its financial integrity. Additionally, all accrued interest from September 30, 2024, until the Redemption Date will also be paid. Such measures could potentially reshape the financial landscape for GECC and instill greater confidence among its investors.

What Investors Need to Know

For current holders of the Notes, it’s essential to monitor the status of the 2029 Notes Offering closely. If this offering takes longer than expected, it may affect not only the redemption timeline but also the broader strategy of Great Elm Capital Corp. As always, staying informed through reliable channels may greatly benefit investors in navigating these changes.

About Great Elm Capital Corp.

Great Elm Capital Corp. is classified as an externally managed business development company. With an investment focus on generating both current income and capital appreciation, the Company engages in various investment strategies that include debt financing and equity investments in specialty finance ventures. This diversified approach positions GECC to respond dynamically to market conditions, allowing for potential growth in multiple market environments.

Investor Relations and Contact Information

Great Elm Capital Corp. encourages shareholder inquiries as part of its commitment to transparency and investor engagement. For those looking to learn more or have specific questions regarding the recent announcements, direct communication with their investor relations team is welcomed. Interested parties can reach out via email at investorrelations@greatelmcap.com or connect through their other official channels.

Frequently Asked Questions

What is the main announcement from Great Elm Capital Corp.?

Great Elm Capital Corp. has announced its intention to redeem its 6.75% Notes due 2025.

What conditions affect the redemption of the Notes?

The redemption is conditional upon the completion of the Company’s public offering of 8.125% Notes due 2029.

When is the expected Redemption Date for the Notes?

The initial Redemption Date is set for October 12, 2024, though it may be subject to change.

What will happen to the interest on the Notes during redemption?

Holders will receive the principal amount plus accrued interest from September 30, 2024, until the Redemption Date.

How can investors contact Great Elm Capital Corp. for more information?

Investors can reach out to the investor relations team via email at investorrelations@greatelmcap.com.

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