Business Context and Reporting Period
Great Elm Capital Corp. filed this Form 8-K on September 13, 2017, to report the entry into a material definitive agreement regarding a new debt offering.
Key Financial Metrics
- New Debt Issuance: $28.375 million aggregate principal amount of 6.50% Notes due September 18, 2022.
- Interest Rate: 6.50% per annum, payable quarterly.
- Redemption Terms: Redeemable at the Company's option on or after September 18, 2019, at a price of $25 per security plus accrued interest.
- Trading Symbol: Notes intended to be listed on NASDAQ under "GECCD".
- Use of Proceeds: Net proceeds will be used to redeem the Company's existing 8.25% Senior Notes due 2020 (the "Full Circle Notes").
Material Changes
The filing details a refinancing transaction where the Company is replacing higher-cost debt (8.25% Senior Notes) with new debt carrying a lower interest rate (6.50%). This transaction alters the Company's debt maturity profile and interest expense structure.
Outlook and Management Commentary
Management intends to list the new Notes on NASDAQ. The transaction is structured to reduce the cost of capital by retiring the 8.25% Full Circle Notes. The filing references a press release issued on September 13, 2017, regarding the pricing of the Notes.
Investor Verification Checklist
- Verify the exact net proceeds received after underwriting fees and expenses.
- Confirm the specific timing and price of the redemption of the 8.25% Full Circle Notes.
- Review the full text of the Indenture and Supplemental Indenture (Exhibits 4.1 and 4.2) for covenants and default provisions.
- Check the official NASDAQ listing status for the new ticker symbol "GECCD".