Business Context and Reporting Period
Great Elm Capital Corp. (GECC) filed a Form 8-K on October 6, 2020, to announce the record and payment dates for its fourth quarter 2020 monthly base distributions. The Company is a publicly-traded regulated investment company incorporated in Maryland.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. The primary financial data disclosed is the distribution rate of $0.083 per share for the months of October, November, and December 2020.
Material Changes
The filing does not disclose material changes to financial performance compared to prior periods. It confirms the continuation of the previously announced monthly base distribution rate.
Guidance, Outlook, and Distribution Terms
Management declared the following distribution schedule for the fourth quarter of 2020:
- Rate: $0.083 per share for October, November, and December.
- Payment Method: Shareholders may elect cash or common stock. However, total cash distributed to all shareholders is limited to approximately 10% of the total distribution amount. The remaining approximately 90% will be paid in common stock.
- Compliance: Distributions comply with indenture terms and IRS regulations allowing REITs/regulated investment companies to satisfy distribution requirements with partial stock payments.
Payment Schedule:
| Month | Record Date | Payable Date |
|---|---|---|
| October | October 30, 2020 | November 20, 2020 |
| November | November 30, 2020 | December 21, 2020 |
| December | December 31, 2020 | January 21, 2021 |
Investor Verification Checklist
- Verify the election deadline for choosing between cash and stock payment options.
- Confirm the total cash payout limit (approx. 10%) to assess potential dilution from the stock portion.
- Review the Company's most recent 10-Q or 10-K for underlying earnings and cash flow supporting these distributions.
- Check for any subsequent announcements regarding changes to the distribution rate or payment method.