Erik Zwick

Eric Zwick

Mickey Schleien

Mitchel Penn

- Great Elm Capital Corp. (GECC) placed its investments in First Brands Group, LLC's First Lien Term Loan and Second Lien Term Loan on **non-accrual** at the end of September 2025, following First Brands' bankruptcy filing.  **[1675033_060e53f15acb4e9484b39c3a9a025694_0]** 
- GECC estimates a direct adverse impact to its net asset value (NAV) of approximately **$16.5 million** for the quarter ended September 30, 2025, or **$1.15-$1.25 per share**, due to the change in value of its First Brands investments.  **[1675033_060e53f15acb4e9484b39c3a9a025694_2]**  An additional adverse impact of approximately **$0.25 per share** is expected from CLO investments.  **[1675033_060e53f15acb4e9484b39c3a9a025694_3]** 
- The non-accrual of these loans is expected to result in an adverse impact of approximately **$2.6 million** to annualized cash total investment income, or approximately **$0.18 per share**.  **[1675033_060e53f15acb4e9484b39c3a9a025694_0]** **[1675033_060e53f15acb4e9484b39c3a9a025694_1]** 
- Since June 30, 2025, GECC raised approximately **$27 million** in net proceeds through share issuances and refinanced **$40 million** of debt, saving approximately **$0.4 million** in annual cash interest expense.  **[1675033_060e53f15acb4e9484b39c3a9a025694_3]**  The company retains over **$20 million** of deployable cash and has **$50 million** available on its revolving line of credit as of September 30, 2025.  **[1675033_060e53f15acb4e9484b39c3a9a025694_3]**

Great Elm Capital Corp. Provides Update on First Brands Investments and Capital Activity

- **Great Elm Capital Corp. (GECC)** provided an update on its investment in **First Brands Group, LLC**, which filed for bankruptcy at the end of September 2025, leading GECC to place its First Lien Term Loan and Second Lien Term Loan investments on non-accrual.  **[1675033_0001193125-25-232655_d31018dex991.htm:0]** 
- The bankruptcy is expected to result in an estimated adverse impact to GECC's net asset value (NAV) of approximately **$1.15-$1.25 per share** from directly held investments and an additional **$0.25 per share** from CLO investments, totaling approximately **$1.40-$1.50 per share** for the quarter ended September 30, 2025.  **[1675033_0001193125-25-232655_d31018dex991.htm:1]** 
- In Q3 2025, GECC sold **$4.5 million** principal amount of its First Lien Loan for **$4.4 million**, and the remaining **$4.8 million** principal amount of First Lien Loan and **$16.2 million** principal amount of Second Lien Loan are expected to result in adverse impacts of approximately **$2.8 million** and **$13.6 million** to NAV, respectively.  **[1675033_0001193125-25-232655_d31018dex991.htm:1]**  The non-accrual of these loans implies an adverse impact of approximately **$0.18 per share** to annualized cash total investment income.  **[1675033_0001193125-25-232655_d31018dex991.htm:1]** 
- GECC issued approximately **2.4 million shares** in Q3 2025 through a private placement and its at-the-market program, generating aggregate net proceeds of approximately **$27 million**, bringing total outstanding shares to approximately **14.0 million** as of September 30, 2025.  **[1675033_0001193125-25-232655_d31018dex991.htm:2]** 
- The company also issued **$50 million** principal amount of 7.75% Notes due 2030 and redeemed **$40 million** principal amount of 8.75% Notes due 2028, which is expected to save approximately **$0.4 million** in cash interest expense annually.  **[1675033_0001193125-25-232655_d31018dex991.htm:2]**  GECC retains over **$20 million** of deployable cash and has **$50 million** available under its revolving line of credit.  **[1675033_0001193125-25-232655_d31018dex991.htm:2]**

Great Elm Capital Corp. Details Impact of First Brands Bankruptcy and Q3 2025 Financial Updates

- Great Elm Capital Corp. (GECC) issued **$50,000,000** aggregate principal amount of **7.75% Notes due 2030** on **September 11, 2025**.  **[1675033_0000950103-25-011541_dp234250_8k.htm:1]** 
- An additional **$7,500,000** aggregate principal amount of these notes may be issued if the underwriters exercise their over-allotment option by **October 4, 2025**.  **[1675033_0000950103-25-011541_dp234250_8k.htm:1]** 
- The notes mature on **December 31, 2030**, bear an interest rate of **7.75% per year** payable quarterly, and are direct **unsecured obligations** of the Company.  **[1675033_0000950103-25-011541_dp234250_8k.htm:1]** **[1675033_0000950103-25-011541_dp234250_ex0401.htm:1]** **[1675033_0000950103-25-011541_dp234250_ex0401.htm:2]** 
- The Company received net proceeds of approximately **$48.1 million** from the offering, which will be used primarily to redeem its outstanding **8.75% Notes due 2028**, with the remainder for other debt repurchases or general corporate purposes, including investments.  **[1675033_0000950103-25-011541_dp234250_8k.htm:1]**

Great Elm Capital (GECC)