Great Elm Capital Corp. (“GECC”) Declares $0.05 Per Common Share Special Cash Distribution and Approves First Quarter 2025 Distribution of $0.37 Per Common Share

Rhea-AI Summary

Great Elm Capital Corp. (NASDAQ: GECC) has announced two significant distributions: a special cash distribution of $0.05 per share payable on January 15, 2025, and a quarterly distribution of $0.37 per share for Q1 2025. The quarterly distribution represents a 5.7% increase from the previous $0.35 per share and equates to a 14.5% annualized yield based on the December 16, 2024 closing price of $10.24.

CEO Matt Kaplan expressed confidence in the company's platform to generate durable long-term income, attributing the special distribution to strong portfolio income generation throughout the year.

Positive

• Increased quarterly distribution by 5.7% from $0.35 to $0.37 per share
• Additional special cash distribution of $0.05 per share
• High annualized yield of 14.5% based on current share price
• Strong portfolio income generation reported

Negative

• None.

Insights

Financial Analyst

The distribution increase signals strong portfolio performance and income generation capability. The 5.7% hike in quarterly distribution from $0.35 to $0.37, combined with a special distribution of $0.05, demonstrates robust cash flow generation. The new quarterly rate translates to an attractive 14.5% annualized yield based on current share price of $10.24. For BDCs, consistent distribution increases typically reflect portfolio health and sustainable earnings. This move suggests management's confidence in maintaining higher payouts through 2025, supported by the current interest rate environment and portfolio performance. The special distribution also indicates excess earnings beyond regular distribution coverage requirements.

PALM BEACH GARDENS, Fla., Dec. 16, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”), (NASDAQ: GECC), a business development company, today is pleased to declare a special cash distribution of $0.05 per common share (the “Special Distribution”). The Special Distribution will be payable on January 15, 2025 to stockholders of record as of December 31, 2024.

In addition, the Company’s Board of Directors has approved a quarterly cash distribution of $0.37 per share for the first quarter of 2025 (the “First Quarter 2025 Distribution”), equating to a 14.5% annualized yield on the Company’s closing market price on December 16, 2024 of $10.24. The First Quarter 2025 Distribution will be payable on March 31, 2025 to stockholders of record as of March 17, 2025.

“We are very pleased to announce the 5.7% increase to our base quarterly distribution to $0.37 per share from $0.35 per share,” said Matt Kaplan, GECC’s Chief Executive Officer. “As we look into 2025, we believe our platform is well positioned to continue generating durable long-term income and we are pleased the Board has approved this increase to our base distribution. In addition, we find ourselves in a position to again deliver a special cash distribution to stockholders, attributable to our portfolio’s strong income generation throughout the year.”

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 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

Source: Great Elm Capital Corp.

FAQ

What is GECC's new quarterly distribution amount for Q1 2025?

GECC's quarterly distribution for Q1 2025 will be $0.37 per share, payable on March 31, 2025 to stockholders of record as of March 17, 2025.

How much is GECC's special cash distribution for December 2024?

GECC declared a special cash distribution of $0.05 per share, payable on January 15, 2025 to stockholders of record as of December 31, 2024.

What is the percentage increase in GECC's quarterly distribution?

GECC increased its quarterly distribution by 5.7%, from $0.35 to $0.37 per share.

What is GECC's annualized yield based on December 16, 2024 closing price?

GECC's new quarterly distribution represents a 14.5% annualized yield based on the December 16, 2024 closing price of $10.24.