$6.130
+0.143 (+2.34%)收盘时
GECC 资讯
GECC 事件
GECC CEO Reports Challenging Q4 Results
Matt Kaplan, GECC's CEO, stated, "Our fourth quarter results reflected a challenging credit environment, including realized and unrealized losses in select positions. We proactively managed the portfolio during the quarter, exiting certain underperforming investments. We ended the period with ample liquidity, and less than 1% of investments on nonaccrual, positioning us to prudently deploy capital into cash-generating opportunities through our proprietary network. In addition, our portfolio had a significantly underweight allocation to software businesses, which represented approximately 6% of total investments at year end and less than 4% at February 27, with our largest software-related position representing less than 1% of the portfolio. While capital deployment remained measured during the quarter, given historically tight spreads, we continued to expand our private credit pipeline, enhance portfolio credit quality, and further diversify the portfolio. Finally, last week, we called $20 million of our GECCO notes for redemption on March 31, 2026. This further bolsters our balance sheet and positions us to strategically address the remaining balance of the notes."
Great Elm Capital announces Q3 EPS of 20 cents, below consensus estimate of 23 cents
Reports Q3 NAV per share $10.01. "As outlined in our October 7th press release, GECC was impacted by the First Brands bankruptcy which was the key driver of our NAV decline in the quarter to $10.01 per share as of September 30th from $12.10 per share at the end of the second quarter," said Matt Kaplan, GECC's Chief Executive Officer. "In addition, as highlighted on our August conference call, we saw NII step down as anticipated, driven by the uneven cadence of CLO cash flows, the lack of a distribution on preference shares received in the second quarter, and elevated expenses associated with our baby bond refinancing. We currently expect NII to recover in the fourth quarter with normalized interest expense, increased CLO JV distributions and income from new deployments."
Great Elm Capital Shares Update on Capital Activities
In August, as previously announced, GECC issued approximately 1.3 million shares in a private placement to an affiliate of Booker Smith for net proceeds of $14 million. Separately, the Company utilized its at-the-market program to issue an additional 1.1 million shares of common stock in the third quarter for net proceeds of approximately $13 million. These issuances resulted in aggregate net proceeds of approximately $27 million in the third quarter, and as of September 30, 2025, GECC had approximately 14.0 million shares outstanding. In addition, GECC issued $50 million principal amount of its of 7.75% Notes due December 31, 2030 (the "7.75% Notes") and redeemed all of its $40 million principal amount of 8.75% Notes due September 30, 2028 in September. In October, the underwriters exercised their over-allotment option in full to purchase an additional $7.5 million principal amount of the 7.75% Notes. This refinancing saves 1.00% on $40 million of debt, approximately $0.4 million of cash interest expense per annum, or approximately $0.03 per share based on GECC's total outstanding shares as of September 30, 2025. Pro forma for the over-allotment option of additional 7.75% Notes, GECC estimates its debt-to-equity ratio is approximately 1.5x, consistent with recent operating history. As a result of these transactions, the Company retains over $20 million of deployable cash as of the date hereof to invest in income-generating investments in the coming quarters. In addition, as of September 30, 2025, GECC had availability of $50.0 million under its $50.0 million revolving line of credit, with $0 drawn as of such date.
Great Elm Capital Responds to Inquiries Regarding First Brands Investment
IThe company said, "In response to numerous investor inquiries, GECC is providing additional details regarding its exposure to First Brands, a global automotive parts manufacturer and supplier that filed for Bankruptcy at the end of September. GECC placed its investments in both First Brands' First Lien Term Loan and Second Lien Term Loan on non-accrual at the end of September in connection with the Bankruptcy. GECC's direct exposure to First Brands includes: First Lien Loan: GECC held $9.3 million principal amount of the First Lien Loan and carried it at a fair market value of $8.8 million, equal to 94.3% of principal amount, as of June 30, 2025. In the third quarter, GECC sold $4.5 million principal amount of its First Lien Loan for $4.4 million, equal to 97.9% of principal amount. The First Lien Loan qualified as a Level 2 investment as of June 30, 2025 and was valued using third party vendor prices in accordance with GECC's valuation policies and procedures. The Company anticipates using the same methodology to value the First Lien Loan as of September 30, 2025. Using third party vendor prices as of September 30, 2025, the remaining $4.8 million principal amount of First Lien Loan held by the Company has a fair market value as of such date of approximately $1.7 million, or 35.2% of principal amount, which is expected to result in an approximately $2.8 million adverse impact to net asset value in the quarter. The First Lien Loan interest rate was 3M SOFR + 5.00% as of June 30, 2025 per the Schedule of Investments filed in GECC's latest 10-Q, implying an adverse impact of approximately $0.5 million to annualized cash total investment income, or approximately $0.03 per share based on GECC's total outstanding shares as of September 30, 2025. Second Lien Loan: GECC held $16.2 million principal amount of First Brands Second Lien Loan and carried it at fair market value of $14.5 million, equal to 89.5% of principal amount, as of June 30, 2025. The Second Lien Loan qualified as a Level 2 investment as of June 30, 2025 and was valued using third party vendor prices in accordance with GECC's valuation policies and procedures. The Company anticipates using the same methodology to value the Second Lien Loan as of September 30, 2025. Using third party vendor prices as of September 30, 2025, the $16.2 million principal amount of Second Lien Loan held by the Company has a fair market value as of such date of approximately $0.9 million, or 5.5% of principal value, which is expected to result in an approximately $13.6 million adverse impact to net asset value in the quarter. The Second Lien Loan interest rate was 3M SOFR + 8.50% as of June 30, 2025 per the Schedule of Investments filed in GECC's latest 10-Q, implying an adverse impact of approximately $2.1 million of annualized cash total investment income, or approximately $0.15 per share based on GECC's total outstanding shares as of September 30, 2025. Direct Net Asset Value Impact From First Brands: Approximately $16.5 million based on the above for the quarter ended September 30, 2025. Based on this information and capital activity to date, GECC currently estimates on a preliminary basis that the change in values of its directly held First Brands investments will adversely impact its net asset value by approximately $1.15-$1.25 per share, based on GECC's total outstanding shares as of September 30, 2025."
Great Elm Capital Reveals Public Offering of Unsecured Notes
Great Elm Capital announced the commencement of an underwritten public offering of unsecured notes due 2030. The Notes are expected to be listed on The Nasdaq Global Market under the trading symbol "GECCG," and to trade thereon within 30 days from the original issue date. The interest rate and other terms of the Notes will be determined by negotiations between the Company and the underwriters. The Company expects to use all or a portion of the net proceeds of this offering to redeem all of its outstanding 8.75% notes due 2028 and the remainder of the proceeds, if any, may be used to redeem or repurchase all or a portion of its outstanding 5.875% notes due 2026; to repurchase all or a portion of its outstanding 8.50% notes due 2029; (iii) to repurchase all or a portion of its outstanding 8.125% notes due 2029; to repay all or a portion of any borrowings outstanding under its revolving credit facility or for general corporate purposes, including making investments consistent with its investment objectives. Lucid Capital Markets, LLC and Piper Sandler & Co. are acting as joint book-running managers for the offering. Clear Street LLC, InspereX LLC and Janney Montgomery Scott LLC are acting as co-managers for the offering.
本页仅供研究参考，不构成投资建议。模型可能出错。过往表现不代表未来结果。