Great Elm Capital Corp. Announces $25 Million Revolving Credit Facility
May 06 2021 - 8:00AM
Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC), a
business development company, today announced the Company has
entered into a Loan, Guarantee and Security Agreement (the “Loan
Agreement”) with City National Bank (“CNB”).
The Loan Agreement provides for a senior secured
revolving line of credit of up to $25 million (subject to a
borrowing base as defined in the Loan Agreement). The Company may
request to increase the revolving line in an aggregate amount not
to exceed $25 million, which increase is subject to the sole
discretion of CNB. The maturity date of the revolving line is the
earlier of (i) May 5, 2024 and (ii) May 15, 2022 if the Company’s
6.50% notes due 2022 are not refinanced on or prior to such date.
Borrowings under the revolving line bear interest at a rate equal
to (i) the London Inter-bank Offered Rate plus 3.50%, (ii) a base
rate plus 2.00% or (iii) a combination thereof, as determined by
the Company.
Management CommentaryPeter A.
Reed, GECC’s Chief Executive Officer, stated, “We are pleased to
enter into this revolving credit facility with City National Bank,
which gives the Company additional financial flexibility on
favorable terms so that it may be more fully invested in yield
generating assets. City National Bank has been an excellent partner
in this process, and we look forward to expanding our relationship
with them in the future.”
About Great Elm Capital Corp.
Great Elm Capital Corp. is an externally managed, specialty finance
company that seeks to generate both current income and capital
appreciation through debt and income generating equity investments.
GECC elected to be regulated as a business development company
under the Investment Company Act of 1940, as amended.
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 and other reports filed with the SEC. 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
+1
(617)
375-3006 investorrelations@greatelmcap.com
Adam PriorThe Equity Group Inc.+1 (212)
836-9606aprior@equityny.com
Great Elm Capital (NASDAQ:GECC)
Historical Stock Chart
From Aug 2024 to Sep 2024
Great Elm Capital (NASDAQ:GECC)
Historical Stock Chart
From Sep 2023 to Sep 2024