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.
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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.