On November 2, 2023, Great Elm Capital Corp (GECC, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a net investment income (NII) of $3.1 million, or $0.40 per share, compared to $3.4 million, or $0.44 per share, for the quarter ended June 30, 2023. The NII was impacted by $0.05 per share of net expenses in the quarter related to the refinancing of the Company’s 6.50% Notes due 2024.
Financial Highlights
GECC's net assets increased to $97.9 million, or $12.88 per share, on September 30, 2023, as compared to $92.9 million, or $12.21 per share, on June 30, 2023. The company's asset coverage ratio improved to 168.4% as of September 30, 2023, as compared to 161.5% as of June 30, 2023, and 165.5% as of September 30, 2022.
GECC's CEO, Matt Kaplan, commented on the results:
We generated yet another quarter of very strong total investment income, with our NII exceeding the quarterly dividend for the third straight quarter. Our NAV continued to grow through harvesting of lower-yielding investments and redeploying the capital into higher-yielding, higher-quality investments."
Portfolio and Investment Activity
As of September 30, 2023, GECC held total investments of $235.4 million at fair value. The weighted average current yield on the Company’s debt portfolio was 13.4%. During the quarter ended September 30, 2023, GECC deployed approximately $32.6 million into 20 investments at a weighted average current yield of 11.4%.
Financial Review and Liquidity
Total investment income for the quarter ended September 30, 2023 was $9.3 million, or $1.22 per share. Net expenses for the quarter ended September 30, 2023 were approximately $6.2 million, or $0.82 per share. As of September 30, 2023, cash and money market securities totaled approximately $2.8 million, and availability on the Company’s undrawn revolving line of credit totaled $25.0 million.
Distributions
The Company’s Board of Directors has approved a quarterly cash distribution of $0.35 per share for the quarter ending December 31, 2023. The distribution equates to a 15.8% annualized dividend yield on the Company’s closing market price on November 1, 2023 of $8.88 and a 10.9% annualized dividend yield on the Company’s September 30, 2023 NAV of $12.88 per share.
Explore the complete 8-K earnings release (here) from Great Elm Capital Corp for further details.
