Business Context and Reporting Period
This Form 8-K Current Report was filed by Great Elm Capital Corp. on April 23, 2024. The filing discloses the entry into a material definitive agreement involving the formation of a joint venture focused on collateralized loan obligation (CLO) investments.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses on a corporate transaction rather than periodic financial performance results.
Material Changes and Agreements
On April 23, 2024, Great Elm Capital Corp. entered into an Amended and Restated Limited Liability Company Agreement with Green SPE, LLC ("Green") and CLO Formation JV, LLC (the "JV"). Key terms include:
- Ownership Structure: Great Elm Capital Corp. owns 75% of the membership interests in the JV, while Green owns 25%.
- Purpose: The JV was formed to make investments in collateralized loan obligation entities and related warehouse facilities.
- Documentation: The full LLC Agreement is attached as Exhibit 10.1, with certain portions redacted and schedules omitted per Regulation S-K.
Guidance, Outlook, and Risks
The filing does not contain management commentary, financial guidance, or specific risk factors related to future performance. The primary disclosure is the execution of the joint venture agreement. Investors should note that the description of the agreement terms is qualified by reference to the full text of the attached exhibit.
Key Facts for Investor Verification
- Verify the specific investment criteria and capitalization requirements within the attached Amended and Restated LLC Agreement (Exhibit 10.1).
- Confirm the operational timeline for the JV's initial investments in CLO entities and warehouse facilities.
- Review the redacted portions of the agreement to understand any confidential financial terms or covenants.
- Assess the impact of the 75% ownership stake on the Company's consolidated financial statements and risk exposure.