Great Elm Capital Corp. Announces Final Results of Non-Transferable Rights Offering
October 01 2020 - 4:37PM
Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC)
announced the final results of its non-transferable rights
offering, which entitled holders of rights to purchase one new
share of common stock for every one right held at a subscription
price of $2.95 per share. The offering expired on September 28,
2020 at 5:00 p.m., New York City time.
The Company received total subscription requests
for 10,795,419 shares of common stock, including primary
subscription rights for 3,959,475 shares and over-subscription
requests for an additional 6,835,944 shares.
In total, the Company sold 10,761,950 shares of
its common stock for aggregate gross proceeds of approximately
$31.8 million.
The Company intends to use the net proceeds from
the offering primarily to (i) make opportunistic investments, in
accordance with its investment objectives and policies, in assets
that the Company’s external investment manager, Great Elm Capital
Management, Inc., believes have become undervalued due to the
current extreme market volatility, and on more attractive terms
than the Company would otherwise be able to obtain under typical,
less volatile market conditions and (ii) support its existing
portfolio companies through the COVID-19 pandemic.
“We appreciate the strong support from our shareholders for this
offering,” said Peter Reed, Chief Executive Officer of the Company.
“This capital will strengthen our balance sheet and furnish us with
additional capital to continue implementing the portfolio
repositioning we began in the second quarter, including by pursuing
additional opportunities in the specialty finance sector.”
Imperial Capital, LLC and Piper Sandler &
Co. acted as dealer managers for the offering.
About Great Elm Capital
Corp.
Great Elm Capital Corp. is an externally
managed, specialty finance company focused on investing in debt
instruments of middle market companies. GECC elected to be
regulated as a business development company under the Investment
Company Act of 1940, as amended. GECC targets catalyst-driven
investments as it seeks to generate attractive, risk-adjusted
returns through both current income and capital appreciation.
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,
the price of GECC common stock, the performance of GECC’s portfolio
and investment manager and risks associated with the economic
impact of the COVID-19 pandemic on GECC and its portfolio
companies. Information concerning these and other factors can be
found in GECC’s Annual Report on Form 10-K, GECC’s
Quarterly Reports on Form 10-Q 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+1
(617) 375-3006investorrelations@greatelmcap.com
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