Great Elm Capital (GECC) Company Report

Great Elm Capital Corp. (GECC) reported a decline in Total Investment Income (TII) to $10.6 million and Net Investment Income (NII) of $2.4 million, or $0.20 per share, for Q3 2025, compared to $14.3 million and $5.9 million (or $0.51 per share) respectively in Q2 2025.
Net Asset Value (NAV) per share decreased to $10.01 as of September 30, 2025, from $12.10 in Q2 2025, primarily driven by investments placed on non-accrual due to the First Brands bankruptcy.
The company raised approximately $27 million in net proceeds during Q3 2025 through the issuance of approximately 2.4 million shares, including an at-the-market program and a private placement.
GECC's Board approved maintaining the distribution at $0.37 per share for the quarter ending December 31, 2025, and authorized a $10 million share repurchase program. Additionally, the company issued $50 million of 7.75% notes to refinance higher-cost debt and enhanced its Revolving Credit Facility by doubling its commitment to $50 million and reducing the interest rate.

Nov 5, 2025, 1:30 PM

Presentation

GECC Reports Q3 2025 Financial Results, NAV Decline, and Strategic Capital Actions

GECC

Earnings

Dividends

Share Buyback

Q3 2025 Net Investment Income (NII) was $0.20 per share, a decrease from the prior quarter, primarily due to reduced CLO JV distributions, higher interest expense, and the absence of an insurance-related investment dividend.
Net Asset Value (NAV) per share decreased to $10.01 as of September 30, 2025, largely due to $16.5 million in unrealized losses from First Brands, which filed for bankruptcy.
The board of directors approved a $0.37 dividend for Q4 2025 and authorized a $10 million share repurchase program.
GECC anticipates a significant rebound in NII for Q4 2025 and plans to deploy over $25 million of cash and monetize over $20 million in non-yielding assets into income-generating investments.

Nov 5, 2025, 1:30 PM

Transcript

Great Elm Capital Corp. Announces Q3 2025 Financial Results

GECC

Earnings

Dividends

Share Buyback

Great Elm Capital Corp. reported a decline in Net Asset Value (NAV) per share to $10.01 as of September 30, 2025, down from $12.10 at the end of the second quarter, primarily due to losses on First Brands investments.
Net investment income (NII) for the third quarter of 2025 was $2.4 million, or $0.20 per share, a decrease from the prior quarter, but is expected to recover in the fourth quarter.
The company strengthened its balance sheet by raising approximately $27 million in equity and refinancing its highest cost debt, the 8.75% GECCZ Notes, with new 7.75% GECCG Notes.
The Board of Directors maintained a quarterly dividend of $0.37 per share for the fourth quarter of 2025 and authorized a new share repurchase program for up to $10 million of outstanding common shares.

Nov 4, 2025, 9:42 PM

8-K

Great Elm Capital Corp. Announces Q3 2025 Financial Results with NAV Decline and Share Repurchase Authorization

GECC

Earnings

Dividends

Share Buyback

Great Elm Capital Corp. (GECC) reported a decline in Net Asset Value (NAV) per share to $10.01 as of September 30, 2025, from $12.10 at the end of Q2 2025, primarily driven by losses on First Brands investments.
Net Investment Income (NII) per share for Q3 2025 was $0.20, a decrease from $0.51 in Q2 2025, attributed to uneven CLO JV distributions, lack of a preference share dividend, and elevated interest expenses. NII is expected to recover in Q4 2025.
The company strengthened its balance sheet by raising approximately $27 million in equity and refinancing its highest cost debt, replacing 8.75% GECCZ Notes with 7.75% GECCG Notes.
GECC's Board of Directors maintained a quarterly dividend of $0.37 per share for Q4 2025 and authorized a new share repurchase program of up to $10 million of its common shares.

Nov 4, 2025, 9:15 PM

Press Release

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

GECC

Guidance Update

Debt Issuance

New Projects/Investments

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.
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.
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. The non-accrual of these loans implies an adverse impact of approximately $0.18 per share to annualized cash total investment income.
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.
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. GECC retains over $20 million of deployable cash and has $50 million available under its revolving line of credit.

Oct 7, 2025, 12:35 PM

8-K

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

GECC

Profit Warning

Debt Issuance

New Projects/Investments

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.
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. An additional adverse impact of approximately $0.25 per share is expected from CLO investments.
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.
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. 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.

Oct 7, 2025, 12:30 PM

Press Release

Great Elm Capital Corp. Issues

GECC

Debt Issuance

New Projects/Investments

Great Elm Capital Corp. (GECC) issued $50,000,000 aggregate principal amount of 7.75% Notes due 2030 on September 11, 2025.
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.
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.
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.