Great Elm Capital Corp ( (GECC) ) has released its Q3 earnings. Here is a breakdown of the information Great Elm Capital Corp presented to its investors.
Great Elm Capital Corp., an externally managed business development company, focuses on generating current income and capital appreciation by investing in debt and income-generating equity securities, including specialty finance businesses.
In its third quarter 2024 financial results, Great Elm Capital Corp. reported significant growth in net investment income, reaching $4.1 million, or $0.39 per share, compared to $3.1 million, or $0.32 per share, in the previous quarter. The company also announced the successful issuance of $36 million in unsecured notes due 2029, alongside an additional $5.4 million secured through an overallotment option.
Among the key financial highlights, GECC’s net assets were slightly lower at $125.8 million, or $12.04 per share, compared to $126.0 million, or $12.06 per share, in the previous quarter. The company’s asset coverage ratio stood at 166.2%, with a pro forma adjustment to 164.4% following recent financial activities. Additionally, the board approved a quarterly dividend of $0.35 per share, reflecting a 14.0% annualized yield based on the company’s closing market price.
The overall investment strategy saw GECC deploying approximately $73.6 million into 29 investments at a weighted average current yield of 11.5%, while monetizing 38 investments for around $39.1 million at a 10.9% yield. Total investment income for the quarter reached a record $11.7 million, despite net realized and unrealized losses of $0.6 million.
Looking ahead, Great Elm Capital Corp.’s management remains optimistic about maintaining dividend coverage and delivering attractive risk-adjusted returns, supported by strategic positions in first lien bank loans and successful debt refinancing activities.
