Great Elm Capital Corp. Announces Conditional Redemption of 6.75% Notes due 2025
Rhea-AI Summary
Great Elm Capital Corp. (GECC) has announced a conditional redemption of its 6.75% Notes due 2025. The redemption is set for October 12, 2024, contingent on the successful closing of GECC's public offering of 8.125% Notes due 2029. The 2025 Notes will be redeemed at 100% of their principal amount, plus accrued and unpaid interest from September 30, 2024, through the Redemption Date.
GECC reserves the right to delay the Redemption Date or cancel the redemption if the 2029 Notes Offering is not completed as planned. This move suggests GECC is restructuring its debt, potentially to take advantage of more favorable terms or to extend its debt maturity profile.
Positive
- Potential improvement in debt structure through new 8.125% Notes due 2029 offering
- Full redemption of existing 6.75% Notes due 2025 at par value, avoiding any premium payments
Negative
- Increase in interest rate from 6.75% to 8.125% on new notes, potentially raising borrowing costs
- Redemption is conditional, creating uncertainty for current noteholders
News Market Reaction – GECC
In the trading session that priced this news, GECC declined 1.48%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
PALM BEACH GARDENS, Fla., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC) announced today that it has caused notices to be issued to the holders of its
About Great Elm Capital Corp.
GECC is an externally managed business development company that seeks to generate both current income and capital appreciation through debt and income generating equity investments, including investments in specialty finance businesses.
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 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. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, fluctuations in interest rates, 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.
Media & Investor Contact:
Investor Relations
investorrelations@greatelmcap.com
