Great Elm Capital Corp. Announces Amended and Upsized Revolving Credit Facility

Rhea-AI Summary

Great Elm Capital Corp. (NASDAQ: GECC), a business development company, has successfully amended its revolving credit facility with City National Bank. The amendment includes two key improvements: doubling the borrowing capacity from $25.0 million to $50.0 million (with potential increase to $90.0 million), and reducing the interest rate from SOFR plus 3.00% to SOFR plus 2.50%.

CEO Matt Kaplan highlighted that this enhancement reflects the company's growing capital base and strong operational performance since establishing the initial facility in 2021. The improved terms are expected to reduce borrowing costs and provide greater flexibility for funding investment opportunities.

[ "Doubled borrowing capacity from $25M to $50M with potential increase to $90M", "Reduced interest rate by 50 basis points to SOFR + 2.50%", "Demonstrates strong operational performance and growing capital base", "Enhanced flexibility for funding investment opportunities" ]

Positive

• None.

Negative

• Increased debt exposure through expanded credit facility
• Higher floating rate debt exposure in current interest rate environment

PALM BEACH GARDENS, Fla., Aug. 13, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced it has entered into an amendment to its revolving credit facility (the “Revolving Credit Facility”) with City National Bank (“CNB”) to, among other things, increase the borrowing capacity under the Revolving Credit Facility from $25.0 million to $50.0 million. The amendment allows the Company, under certain circumstances, to increase the overall borrowing capacity to a maximum of $90.0 million. In addition, the amendment reduces the interest rate on the Revolving Credit Facility to the applicable Secured Overnight Financing Rate ("SOFR") plus 2.50% from SOFR plus 3.00%.     

“We are very pleased to announce this amendment to our revolving credit facility with CNB,” said Matt Kaplan, GECC’s Chief Executive Officer. “The increased borrowing capacity is a testament to our growing capital base and strong operational performance since partnering with CNB on the initial $25.0 million commitment in 2021. The amended facility not only reduces our borrowing costs, but it also enhances our flexibility to fund attractive opportunities with compelling, risk-adjusted returns. Additionally, we believe shifting our liability mix to more floating rate debt is a prudent step in the current interest rate environment.”

About Great Elm Capital Corp.

GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs. For additional information, please visit http://www.greatelmcc.com.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

This press release does not constitute an offer of any securities for sale.

Media & Investor Contact:

Investor Relations        
investorrelations@greatelmcap.com

FAQ

What changes did Great Elm Capital Corp (GECC) make to its revolving credit facility in August 2025?

GECC doubled its borrowing capacity from $25M to $50M (expandable to $90M) and reduced the interest rate from SOFR plus 3.00% to SOFR plus 2.50%.

How much can GECC potentially borrow under the amended credit facility?

Under certain circumstances, GECC can increase its borrowing capacity to a maximum of $90.0 million, up from the current $50.0 million facility.

What is the new interest rate on GECC's revolving credit facility?

The new interest rate is SOFR plus 2.50%, reduced from the previous rate of SOFR plus 3.00%.

Who is GECC's lending partner for the revolving credit facility?

City National Bank (CNB) is GECC's lending partner, continuing their partnership since the initial $25.0 million commitment in 2021.

How will the amended credit facility benefit GECC?

The amendment reduces borrowing costs, provides greater funding flexibility for investment opportunities, and reflects GECC's growing capital base and strong operational performance.