Great Elm Capital Corp. Prices Public Offering of $36,000,000 of 8.125% Notes Due 2029
Great Elm Capital Corp. (NASDAQ: GECC) has priced a public offering of $36 million in 8.125% notes due 2029. The offering is expected to yield net proceeds of approximately $34.4 million after expenses. The notes will mature on December 31, 2029, with an option for early redemption from December 31, 2026. GECC has granted underwriters a 30-day option to purchase up to an additional $5.4 million in notes to cover over-allotments. The notes are expected to be listed on The Nasdaq Global Market under the symbol 'GECCH' within 30 days of issuance. GECC plans to use the net proceeds, along with cash on hand, to redeem all outstanding 6.75% unsecured notes due 2025. The offering is subject to customary closing conditions, with delivery expected around September 19, 2024.
Great Elm Capital Corp. (NASDAQ: GECC) ha prezzato un'offerta pubblica di 36 milioni di dollari in note all'8,125% con scadenza nel 2029. Si prevede che l'offerta genererà proventi netti di circa 34,4 milioni di dollari dopo le spese. Le note scadranno il 31 dicembre 2029, con un'opzione di riscatto anticipato a partire dal 31 dicembre 2026. GECC ha concesso agli underwriter un'opzione di 30 giorni per acquistare fino a un ulteriore 5,4 milioni di dollari in note per coprire gli extra concessi. Le note dovrebbero essere quotate sul Nasdaq Global Market con il simbolo 'GECCH' entro 30 giorni dall'emissione. GECC prevede di utilizzare i proventi netti, insieme a liquidità disponibile, per riscattare tutte le note non garantite all'6,75% con scadenza nel 2025. L'offerta è soggetta a condizioni di chiusura abituali, con consegna prevista intorno al 19 settembre 2024.
Great Elm Capital Corp. (NASDAQ: GECC) ha fijado una oferta pública de 36 millones de dólares en notas al 8.125% con vencimiento en 2029. Se espera que la oferta genere ingresos netos de aproximadamente 34.4 millones de dólares después de gastos. Las notas vencerán el 31 de diciembre de 2029, con una opción de redención anticipada a partir del 31 de diciembre de 2026. GECC ha otorgado a los suscriptores una opción de 30 días para comprar hasta 5.4 millones de dólares adicionales en notas para cubrir sobreasignaciones. Se espera que las notas se coticen en el Nasdaq Global Market bajo el símbolo 'GECCH' dentro de 30 días posteriores a la emisión. GECC planea utilizar los ingresos netos, junto con efectivo disponible, para redimir todas las notas no garantizadas del 6.75% que vencen en 2025. La oferta está sujeta a condiciones de cierre habituales, con entrega prevista alrededor del 19 de septiembre de 2024.
Great Elm Capital Corp. (NASDAQ: GECC)는 2029년 만기 8.125% 노트로 3,600만 달러의 공모를 가격 책정했습니다. 이 공모는 비용 후 약 3,440만 달러의 순수익을 얻을 것으로 예상됩니다. 노트는 2029년 12월 31일 만기되며, 2026년 12월 31일부터 조기 상환 옵션이 있습니다. GECC는 인수자에게 초과 배정을 커버하기 위해 최대 540만 달러의 추가 노트를 구매할 수 있는 30일 옵션을 부여했습니다. 노트는 발행 후 30일 이내에 'GECCH' 기호로 Nasdaq Global Market에 상장될 예정입니다. GECC는 순수익과 현금을 사용하여 2025년 만기 6.75% 무보증 노트를 모두 상환할 계획입니다. 이 공모는 일반적인 종료 조건에 따라 진행되며, 배송은 2024년 9월 19일경에 예정되어 있습니다.
Great Elm Capital Corp. (NASDAQ: GECC) a fixé une offre publique de 36 millions de dollars en obligations à 8,125% arrivant à échéance en 2029. On s'attend à ce que l'offre génère des produits nets d'environ 34,4 millions de dollars après frais. Les obligations arriveront à échéance le 31 décembre 2029, avec une option de rachat anticipé à partir du 31 décembre 2026. GECC a accordé aux souscripteurs une option de 30 jours pour acheter jusqu'à 5,4 millions de dollars supplémentaires en obligations pour couvrir les surallocations. Les obligations devraient être cotées sur le Nasdaq Global Market sous le symbole 'GECCH' dans les 30 jours suivant l'émission. GECC prévoit d'utiliser les produits nets, ainsi que des liquidités disponibles, pour racheter toutes les obligations non sécurisées à 6,75% arrivant à échéance en 2025. L'offre est soumise à des conditions de clôture habituelles, avec une livraison prévue aux alentours du 19 septembre 2024.
Great Elm Capital Corp. (NASDAQ: GECC) hat ein öffentliches Angebot von 36 Millionen Dollar in 8,125% Anleihen mit Fälligkeit 2029 bepreist. Es wird erwartet, dass das Angebot nach Kosten netto etwa 34,4 Millionen Dollar einbringt. Die Anleihen laufen am 31. Dezember 2029 aus, mit einer Option auf vorzeitige Rückzahlung ab dem 31. Dezember 2026. GECC hat den Underwritern eine 30-tägige Option eingeräumt, um bis zu weitere 5,4 Millionen Dollar an Anleihen zu erwerben, um Überzeichnungen abzudecken. Die Anleihen sollen innerhalb von 30 Tagen nach der Emission unter dem Symbol 'GECCH' am Nasdaq Global Market gelistet werden. GECC plant, die Nettomittel zusammen mit verfügbaren Barmitteln zu nutzen, um alle ausstehenden 6,75% unbesicherten Anleihen mit Fälligkeit 2025 zurückzukaufen. Das Angebot unterliegt den üblichen Abschlussbedingungen, mit einer Lieferung, die voraussichtlich um den 19. September 2024 erfolgt.
- Successful pricing of $36 million notes offering at 8.125% interest rate
- Expected net proceeds of $34.4 million after expenses
- Potential for additional $5.4 million from underwriters' over-allotment option
- Planned listing on Nasdaq Global Market under 'GECCH' symbol
- Refinancing of existing 6.75% notes due 2025 with new 8.125% notes due 2029
- Higher interest rate on new notes (8.125%) compared to existing notes (6.75%)
- Potential dilution if underwriters exercise over-allotment option
- Increased debt obligations with $36 million (potentially $41.4 million) in new notes
Insights
Great Elm Capital Corp's new
However, the extended maturity to 2029 provides GECC with improved financial flexibility. The net proceeds of
Investors should note the potential dilution effect on earnings per share due to increased interest expenses. The planned Nasdaq listing under 'GECCH' may enhance liquidity for these notes, potentially benefiting both the company and investors.
The pricing of GECC's notes at
The involvement of multiple underwriters, including Lucid Capital Markets and Piper Sandler, suggests broad market interest. The 30-day over-allotment option is a standard feature that allows underwriters to meet excess demand, potentially indicating strong initial interest from investors.
The planned Nasdaq listing could increase visibility and trading volume for these notes, potentially attracting a wider investor base. However, investors should monitor how this new debt impacts GECC's overall leverage and financial flexibility in the evolving economic landscape.
PALM BEACH GARDENS, Fla., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC) announced today the pricing of its underwritten public offering of
The Notes will mature on December 31, 2029, and may be redeemed in whole or in part at any time or from time to time at the Company’s option on or after December 31, 2026. The Company has also granted the underwriters a 30-day option to purchase up to an additional
The closing of the transaction is subject to customary closing conditions, and the Notes are expected to be delivered on or about September 19, 2024. The Notes are expected to be listed on The Nasdaq Global Market under the trading symbol “GECCH,” and to trade thereon within 30 days from the original issue date.
The Company intends to use the net proceeds from the offering together with cash on hand to redeem all of its outstanding
Lucid Capital Markets, LLC, Janney Montgomery Scott LLC and Piper Sandler & Co. are acting as joint book-running managers for the offering. Clear Street LLC, InspereX LLC and Ladenburg Thalmann & Co. Inc. are acting as co-managers for the offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities in this offering or any other securities nor will there be any sale of these securities or any other securities referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
A registration statement relating to these securities is on file with and has been declared effective by the Securities and Exchange Commission (the “SEC”). The offering will be made only by means of a prospectus, copies of which may be obtained, when available, from:
Lucid Capital Markets, LLC
570 Lexington Ave., 40th Floor
New York, New York 10022
(646) 362-0256
Investors are advised to carefully consider the investment objectives, risks and charges and expenses of the Company before investing. The preliminary prospectus, dated September 9, 2024, which has been filed with the SEC, contains a description of these matters and other important information about the Company and should be read carefully before investing.
The information in this press release and the preliminary prospectus is not complete and may be changed.
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 registration statement, its 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
Source: Great Elm Capital Corp.
FAQ
What is the size and interest rate of GECC's new notes offering?
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Has GECC granted any over-allotment option to the underwriters?
