GECC Overview

Real-time Intelligence: Benzinga Pro offers traders the fastest news alerts to stay updated on market movements.

Exclusive Content: Subscribers gain access to unique stories and insights generated by Benzinga reporters.

Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, enhancing their trading strategies.

Market Winning Tools: The platform provides essential tools and information that help traders succeed in the stock market.

Financial Results Announcement: Great Elm Capital Corp. will release its third-quarter financial results for the period ending September 30, 2025, on November 4, 2025, after market close.

Conference Call Details: A conference call to discuss the financial results is scheduled for November 5, 2025, at 8:30 a.m. ET, with dial-in numbers provided for both U.S. and international participants.

Accessing the Call: Participants are encouraged to join the call five minutes early and use the passcode "GECC." A slide presentation will be available on the company's website after the earnings release.

Company Overview: Great Elm Capital Corp. is a business development company focused on generating income and capital appreciation through investments in debt and equity securities, particularly in specialty finance and CLOs.

GECC's Investment Update: Great Elm Capital Corp. (GECC) reported significant exposure to First Brands Group, which recently filed for bankruptcy, leading GECC to place its First and Second Lien Loans on non-accrual status. The estimated adverse impact on GECC's net asset value is approximately $16.5 million for the quarter ending September 30, 2025.

Financial Impact and Capital Activity: GECC anticipates a decrease in net asset value per share by $1.15-$1.25 due to the bankruptcy, alongside an additional estimated impact of $0.25 per share from CLO investments. The company has raised approximately $27 million through share issuances and refinanced its debt, maintaining over $20 million in deployable cash for future investments.

Downgrade Announcement: Great Elm Capital (GECC) was downgraded from Buy to Neutral by Lucid Capital Markets due to premium valuation and revised credit outlook, with shares dropping 3.26% to $10.40.

Analysts' Insights: Analysts noted concerns over credit quality and a premium valuation, suggesting that while the company's long-term prospects are positive, near-term price outperformance is limited.

Valuation Metrics: The stock is currently trading at a price-to-net asset value (P/NAV) of 89%, which is above the peer median of 83%, indicating that shares are fairly valued.

Market Ratings: The downgrade aligns with an average Hold rating from Seeking Alpha authors, while Wall Street analysts maintain a Buy rating, and the SA Quant Rating system classifies the stock as a Strong Buy.

Real-time Intelligence: Benzinga Pro offers the fastest news alerts to help traders stay informed and make timely decisions in the stock market.

Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from exclusive stories and insights provided by Benzinga reporters.

Public Offering Announcement: Great Elm Capital Corp. has priced a public offering of $50 million in 7.75% notes due 2030, expecting to net approximately $48.1 million after expenses.

Use of Proceeds: The proceeds will primarily be used to redeem existing higher-interest notes and for general corporate purposes, including potential investments.