gecc-8k_20210331.htm

 

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 7, 2021

 

Great Elm Capital Corp.

(Exact name of Registrant as Specified in Its Charter)

 

 

Maryland

814-01211

81-2621577

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

800 South Street, Suite 230, Waltham, MA

 

02453

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 375-3006

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

GECC

Nasdaq Global Market

6.50% Notes due 2022

GECCL

Nasdaq Global Market

6.75% Notes due 2025

GECCM

Nasdaq Global Market

6.50% Notes due 2024

GECCN

Nasdaq Global Market

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 


 

 

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2021, Great Elm Capital Corp. issued the press release and published a presentation furnished as exhibits 99.1 and 99.2, respectively, to this report.

The foregoing information (including the exhibits hereto) are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished with this report but shall not be deemed filed:

  

 

 

 

Exhibit

Number

  

Description

99.1

 

Earnings Press Release, dated May 7, 2021.

99.2

  

Presentation, dated May 7, 2021.

 

 


 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

 

GREAT ELM CAPITAL CORP.

 

 

 

Date:  May 7, 2021

 

/s/  Keri A. Davis

 

 

By:

 

Keri A. Davis

 

 

Title:

 

Chief Financial Officer

 

 

 

 

 

gecc-ex991_22.htm

Exhibit 99.1

 

Great Elm Capital Corp. Announces FIRST Quarter 2021 Financial Results HIGHLIGHTED BY 12.4% increase in NAV per share

 

Company to Host Quarterly Conference Call at 11:00 AM ET Today

 

WALTHAM, MA, May 7, 2021 – Great Elm Capital Corp. (“we,” “us,” “our,” or “GECC,”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2021.

 

Financial Highlights

Net investment income (“NII”) for the quarter was $1.5 million, as compared to NII of $1.6 million for the quarter ended December 31, 2020. NII was largely flat quarter-over-quarter due to slower than anticipated deployment of capital in January which subsequently accelerated in February and March.

NII per share was $0.06 based on weighted average shares outstanding of 23,401,837, as compared to NII per share of $0.07, based on weighted average shares outstanding of 22,249,283, for the quarter ended December 31, 2020.

As of March 31, 2021, GECC’s asset coverage ratio was approximately 177.1%, up from 167.1% as of December 31, 2020, and 141.1% as of March 31, 2020.

Net assets grew to approximately $91.5 million on March 31, 2021, as compared to $79.6 million on December 31, 2020, and $50.8 million at March 31, 2020.

NAV per share of $3.89 as of March 31, 2021, compared to $3.46 at December 31, 2020.  NAV per share was $5.05 as of March 31, 2020.  

 

New $25.0 Million Credit Facility

GECC yesterday announced that it closed a $25.0 million senior secured revolving line of credit with City National Bank. Borrowings under the revolving line bear interest at the applicable LIBOR rate plus 3.50% with a 1.00% floor. The revolving line of credit has a three year term with a maturity date of May 5, 2024, subject to a springing maturity on May 15, 2022 if the company’s 6.50% notes due 2022 are not refinanced on or prior to such date.

 

Management Commentary

Peter A. Reed, GECC’s Chief Executive Officer, stated, “We saw a significant increase in NAV per share during the period, largely related to unrealized gains as a result of several positive developments at our portfolio companies during the first quarter. We reported lower than expected net investment income during the quarter as we entered the year with a significant cash balance which was deployed at a pace that increased over February and March at favorable yields. Our new $25 million credit facility provides financial flexibility and improves the company’s ability to be more fully invested in yield generating assets.”

 

 

 


 

 

Mr. Reed continued, “Throughout the past few quarters we have continued to reposition the portfolio and build upon the success of our investment in Prestige Capital Finance. We believe our investments in the specialty finance sector give GECC access to proprietary deal flow with the potential to generate attractive IRRs over time.  Through our relationship with Prestige we are seeing a robust pipeline of additional opportunities in both factoring and complementary specialty finance businesses.”

 

Financial Highlights – Per Share Data(1)

 

Q1/20201

Q2/20201

Q3/20201

Q4/20201

Q1/20211

Earnings Per Share (“EPS”)

($3.33)

$0.34

$0.72

($0.43)

$0.53

Net Investment Income (“NII”) Per Share

$0.26

$0.09

$0.18

$0.07

$0.06

Net Realized Gains / (Losses) Per Share

($1.12)

$0.09

($0.02)

$0.03

($0.14)

Net Unrealized Gains / (Losses) Per Share

($2.47)

$0.16

$0.56

($0.54)

$0.61

Net Asset Value Per Share at Period End

$5.05

$5.10

$5.53

$3.46

$3.89

Distributions Paid / Declared Per Share

$0.249

$0.249

$0.249

$0.249

$0.10

 

Portfolio and Investment Activity

As of March 31, 2021, GECC held total investments of $193.6 million at fair value, held in the following:

 

33 debt investments, totaling approximately $135.5 million and representing 70.0% of the fair market value of our total investments. Secured debt investments comprised a substantial majority of the fair market value of our debt investments.

 

3 yielding equity investments, totaling approximately $30.1 million representing 15.5% of the fair market value of our total investments.

 

7 other equity investments, totaling approximately $18.0 million and representing 9.3% of the fair market value of our total investments.

 

Special Purpose Acquisition Company (SPAC) instruments totaling approximately $10.0 million, which consist of SPAC units, common stock, and warrants, representing approximately 5.2% of total investments.

 

As of March 31, 2021, the weighted average current yield on our debt portfolio was 10.9%. Floating rate instruments comprised approximately 51.3% of the fair market value of debt investments.

 

During the quarter ended March 31, 2021, we deployed approximately $43.9 million into new investments(2) excluding SPACs, at a weighted average current yield of 9.85%. The weighted average price of the debt deployment activity was 96% of par. We also deployed approximately $14.5 million into SPACs during the period.

 

-2-


 

 

During the quarter ended March 31, 2021, we monetized, in part or in full, 20 investments for approximately $23.7 million(3) excluding SPACs, at a weighted average current yield of 11.6%. The weighted average realized price was 89% of par. We also monetized $4.5 million of SPAC securities during the period.

 

Financial Review

Total investment income for the quarter ended March 31, 2022 was approximately $5.3 million, or $0.23 per share. Total expenses for the quarter ended March 31, 2021 were approximately $3.8 million, or $0.16 per share.

 

Net realized losses for the quarter ended March 31, 2021 were approximately $3.3 million, or $0.14 per share. Net unrealized appreciation from investments for the quarter ended March 31, 2021 was approximately $14.3 million, or $0.61 per share.

 

Liquidity and Capital Resources

As of March 31, 2021, our cash balance was approximately $26.6 million, exclusive of holdings of United States Treasury Bills and restricted cash. Total debt outstanding (par value) as of March 31, 2021 was $118.7 million, comprised of our 6.50% senior notes due September 2022 (NASDAQ: GECCL), our 6.50% senior notes due June 2024 (NASDAQ: GECCN) and our 6.75% senior notes due January 2025 (NASDAQ: GECCM).

 

Distributions

We also announced this morning that our board of directors authorized a $0.10 per share cash distribution for the quarter ending September 30, 2021. The record and payment dates for the distribution are expected to be set by GECC in the third quarter pursuant to authority granted by its board of directors.

 

The Company previously has announced that our board of directors authorized a $0.10 per share cash distribution for the quarter ending June 30, 2021. The record and payment dates for the distribution are expected to be set by GECC in the second quarter pursuant to authority granted by its board of directors.

 

Conference Call and Webcast

GECC will discuss these results in a conference call later this morning (Friday, May 7, 2021) at 11:00 a.m. ET.

 

Conference Call Details

Date/Time:Friday, May 7, 2021 – 11:00 a.m. ET

 

Participant Dial-In Numbers:

(United States):844-820-8297

(International):661-378-9758

 

To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode "GECC." An accompanying slide presentation will be available in .pdf format via the “Investor Relations” section of Great Elm Capital Corp.’s website at http://www.investor.greatelmcc.com/events-and-presentations/presentations after the issuance of the earnings release.

 

Webcast

-3-


 

The call and presentation will also be simultaneously webcast over the Internet via the Investor Relations section of GECC’s website or by clicking on the conference call link: Great Elm Capital Corp (GECC) Q1 2021 Conference Call Webcast.

 

About Great Elm Capital Corp.

Great Elm Capital Corp. is an externally managed, specialty finance company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.

 

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, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the SEC. 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.

 

This press release does not constitute an offer of any securities for sale.

 

Endnotes:

(1) The per share figures are based on a weighted average outstanding share count for the respective period.

(2) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.

(3) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.

 

Media & Investor Contact:

-4-


 

Investor Relations

+1 (617) 375-3006

investorrelations@greatelmcap.com

 

Adam Prior

The Equity Group Inc.

+1 (212) 836-9606

aprior@equityny.com


-5-


 

 

GREAT ELM CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)

Dollar amounts in thousands (except per share amounts)

 

 

March 31, 2021

 

December 31, 2020

Assets

 

 

 

 

Investments

 

 

 

 

Non-affiliated, non-controlled investments, at fair value (amortized cost of $169,052 and $147,494, respectively)

 

$                143,171

 

$                112,116

Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of $139,997 and $74,997, respectively)

 

                   139,991

 

                     74,998

Affiliated investments, at fair value (amortized cost of $114,478 and $109,840, respectively)

 

                     38,210

 

                     29,289

Controlled investments, at fair value (amortized cost of $9,093 and $7,630, respectively)

 

                     12,250

 

                     10,243

Total investments

 

                   333,622

 

                   226,646

 

 

 

 

 

Cash and cash equivalents

 

                     26,572

 

                     52,582

Restricted cash

 

                              -

 

                          600

Receivable for investments sold

 

                       6,111

 

                              -

Interest receivable

 

                       4,118

 

                       2,423

Due from portfolio company

 

                          895

 

                          837

Prepaid expenses and other assets

 

                           44

 

                          240

Total assets

 

$                371,362

 

$                283,328

 

 

 

 

 

Liabilities

 

 

 

 

Notes payable 6.50% due September 18, 2022 (including unamortized discount
   of $425 and $494, respectively)

 

$                  29,868

 

$                  29,799

Notes payable 6.75% due January 31, 2025 (including unamortized discount
   of $980 and $1,042, respectively)

 

                     44,630

 

                     44,568

Notes payable 6.50% due June 30, 2024 (including unamortized discount
   of $1,421 and $1,529, respectively)

 

                     41,402

 

                     41,294

Payable for investments purchased

 

                   152,953

 

                     75,511

Interest payable

 

                          328

 

                          328

Distributions payable

 

                              -

 

                       1,911

Accrued incentive fees payable

 

                       9,284

 

                       9,176

Due to affiliates

 

                          776

 

                          764

Accrued expenses and other liabilities

 

                          590

 

                          362

Total liabilities

 

$                279,831

 

$                203,713

 

 

 

 

 

Commitments and contingencies

 

$                           -

 

$                           -

 

 

 

 

 

Net Assets

 

 

 

 

Common stock, par value $0.01 per share (100,000,000 shares authorized,
23,508,232 shares issued and outstanding and 23,029,453 shares issued and
   outstanding, respectively)

 

$                       235

 

$                       230

Additional paid-in capital

 

                   232,219

 

                   230,504

Accumulated losses

 

                  (140,923)

 

                  (151,119)

Total net assets

 

$                  91,531

 

$                  79,615

Total liabilities and net assets

 

$                371,362

 

$                283,328

Net asset value per share

 

$                      3.89

 

$                      3.46

 

 

 

 

 

-6-


 

 


-7-


 

 

 

GREAT ELM CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Dollar amounts in thousands (except per share amounts)

 

 

 

 

For the Three Months Ended March 31,

 

 

2021

 

2020

Investment Income:

 

 

 

 

Interest income from:

 

 

 

 

Non-affiliated, non-controlled investments

 

$                 2,442

 

$                 4,466

Non-affiliated, non-controlled investments (PIK)

 

                        30

 

                           -

Affiliated investments

 

                      260

 

                      227

Affiliated investments (PIK)

 

                    1,439

 

                    1,224

Controlled investments

 

                          8

 

                        70

Total interest income

 

                    4,179

 

                    5,987

Dividend income from:

 

 

 

 

Non-affiliated, non-controlled investments

 

                      481

 

                          3

Controlled investments

 

                      320

 

                      400

Total dividend income

 

                      801

 

                      403

Other income from:

 

 

 

 

Non-affiliated, non-controlled investments

 

                        33

 

                        30

Affiliated investments (PIK)

 

                      282

 

                           -

Controlled investments

 

                           -

 

                          9

Total other income

 

                      315

 

                        39

Total investment income

 

$                 5,295

 

$                 6,429

 

 

 

 

 

Expenses:

 

 

 

 

Management fees

 

$                    660

 

$                    698

Incentive fees

 

                      108

 

                      100

Administration fees

 

                      156

 

                      204

Custody fees

 

                        13

 

                        20

Directors’ fees

 

                        55

 

                        51

Professional services

 

                      425

 

                      257

Interest expense

 

                    2,198

 

                    2,305

Other expenses

 

                      176

 

                      142

Total expenses

 

$                 3,791

 

$                 3,777

Net investment income

 

$                 1,504

 

$                 2,652

 

 

 

 

 

Net realized and unrealized gains (losses):

 

 

 

 

Net realized gain (loss) on investment transactions from:

 

 

 

 

Non-affiliated, non-controlled investments

 

$               (3,415)

 

$              (11,456)

Controlled investments

 

                      140

 

                           -

Realized gain on repurchase of debt

 

                           -

 

                      143

Total net realized gain (loss)

 

                  (3,275)

 

                (11,313)

Net change in unrealized appreciation (depreciation) on investment transactions from:

 

 

Non-affiliated, non-controlled investments

 

                    9,490

 

                (19,715)

Affiliated investments

 

                    4,283

 

                  (5,085)

Controlled investments

 

                      544

 

                       (77)

Total net change in unrealized appreciation (depreciation)

 

                  14,317

 

                (24,877)

Net realized and unrealized gains (losses)

 

$               11,042

 

$              (36,190)

Net increase (decrease) in net assets resulting from operations

 

$               12,546

 

$              (33,538)

 

 

 

 

 

Net investment income per share (basic and diluted):

 

$                   0.06

 

$                   0.26

Earnings per share (basic and diluted):

 

$                   0.53

 

$                 (3.33)

Weighted average shares outstanding (basic and diluted):

 

           23,401,837

 

           10,062,682

 

 

-8-

Slide 1

Exhibit 99.2

Slide 2

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,” “preliminary” 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, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the SEC. 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. You should consider the investment objective, risks, charges and expenses of GECC carefully before investing. GECC’s filings with the SEC contain this and other information about GECC and are available by contacting GECC at the phone number and address at the end of this presentation. The SEC also maintains a website that contains the aforementioned documents. The address of the SEC’s website is http://www.sec.gov. These documents should be read and considered carefully before investing.   The performance, distributions and financial data contained herein represent past performance, distributions and results and neither guarantees nor is indicative of future performance, distributions or results. Investment return and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than the original cost. GECC’s market price and net asset value will fluctuate with market conditions. Current performance may be lower or higher than the performance data quoted. All information and data, including portfolio holdings and performance characteristics, is as of March 31, 2021, unless otherwise noted, and is subject to change. This presentation does not constitute an offer of any securities for sale. Forward Looking Statement

Slide 3

About GECC (1) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date.

Slide 4

First Quarter 2021 Overview: Capital Deployment and Monetization GECCL 6.50% Notes due September 2022 GECCN 6.50% Notes due June 2024 GECCM 6.75% Notes due January 2025 New $25.0 Million Credit Facility(1) with a 3 Year Term at LIBOR rate plus 3.50% Attractive Funding Sources (1) As of May 5, 2021

Slide 5

First Quarter 2021: Net Investment Income (“NII”) Analysis NII for the quarter ended March 31, 2021 was approximately $1.5 million, or $0.06 per share(1), as compared to NII of $1.6 million or $0.07 per share for the quarter ended December 31, 2020 NII was impacted by slower than anticipated deployment of capital During the quarter ended June 30, 2020, we began repositioning the portfolio, including taking actions to create liquidity that had the effect of depressing net investment income (“NII”) Specifically, as the impact of COVID-19 increased volatility in the leveraged credit secondary markets, we monetized investments in anticipation of more attractive redeployment opportunities $ in $000s (1) Based on weighted average shares outstanding of 23,401,837 for the quarter ended March 31, 2021, and 22,249,283 for the quarter ended December 31, 2020.

Slide 6

Net Asset Value Change from December 31, 2020 to March 31, 2021 $ in $000s

Slide 7

Investment Activity: New Investments (January 1 – May 6, 2021) Throughout Q1 2021 and subsequent to quarter end, we actively deployed approximately $35.9 million of available cash into new investments at a weighted average current yield of 8.9% $ in $000s (1) Investment Activity includes activity in Q1/2021 and the subsequent period through and including May 6, 2021. Investment activity does not include revolver draws or PIK interest. (2) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding investments is as of the most recent measurement date or date of purchase, as applicable. These figures to not include Viasat, Inc. receivables.

Slide 8

Prestige(1) is a leading provider of “spot factoring” services, providing clients with an opportunity to sell individual accounts receivable for an upfront payment Specialty Finance Investments: Prestige Capital Finance, LLC Over 30 years in business and through $6+ billion of transactions factored, Prestige has a track record of strong credit underwriting with minimal losses (1) On February 8, 2019, GECC acquired 80.0% of the outstanding equity interests of Prestige for approximately $7.5 million

Slide 9

Prestige Capital Finance, LLC – Taking Advantage of Opportunities “Overflow” opportunities that would allow GECC to participate in certain of Prestige’s larger factoring transactions directly Significant Mutual Benefits Greater access to capital allows Prestige to increase the size of the transactions it can pursue, which may further enhance its growth Rates of return may be higher than traditional leveraged credit investments Proprietary to GECC and unique to portfolio

Slide 10

Ample Dry Powder Establishes a strategic relationship with a large money center bank Significantly improves flexibility and GECC’s ability to be more “fully invested” in yield generating assets Greatly enhances GECC’s ability to take advantage of “Overflow” opportunities from specialty finance investments New $25.0 Million Revolving Credit Facility With City National Bank 3 Year Term with a Maturity Date of 5/5/2024(1) LIBOR rate plus 3.50% (subject to a 1.00% floor) (1) Subject to a springing maturity on May 15, 2022

Slide 11

Portfolio Review (Quarter Ended 3/31/2021)

Slide 12

3 Yielding Equity Investments Portfolio Review: Quarter End Portfolio Detail 33 Debt Investments $135.5 million Fair Value of Debt Investments 87.2% Weighted Average Dollar Price of Debt Investments 10.9%1 Weighted Average Current Yield of Debt Investments 70.0% Of Invested Capital in Debt Investments 10 Equity Investments, excl. SPACs Debt Investments: Equity Investments: 15.5% Of Invested Capital in Equity Investments (1) Weighted average current yield is based upon the anticipated distribution rate and fair value of outstanding investments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. Weighted Average Current Yield of Income-Generating Equity Investments 7 Other Equity Investments $30.0 million Fair value of Equity Investments $18.1 million 9.3% 13.5%1

Slide 13

Portfolio by Asset Type ($MM) Portfolio by Interest Rate Type ($MM) Weighted average fixed rate yield of 12.7%1 Weighted average floating rate yield of 9.3%1 (1) Weighted average fixed and floating rate current yield is based upon the stated coupon rate and fair value of outstanding debt instruments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. Portfolio Review: Quarter End Asset Type and Interest Rate Type

Slide 14

Portfolio Review: Quarter End Industry Breakdown Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. $ in $000s

Slide 15

Portfolio Review: Quarterly Investment Activity (1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and PIK interest. Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. (2) Weighted average current yield metrics specifically refer to the applicable investment activity in the respective period. (3) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. New Investments vs. Monetized Investments

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SPAC Holdings: Understanding the Structure What is a Special Purpose Acquisition Company, or SPAC Newly formed corporation created for the purpose of raising capital in an IPO in anticipation of identifying and consummating a business combination.

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GECC SPAC Holdings: Strategy and Intention Identify Pre-IPO Opportunities Utilize Relationships to Receive Allocations Exit prior to bearing equity risk Opportunity to generate a more favorable return on cash balances for the Company in a low-interest rate environment with minimal permanent capital impairment risk

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Financial Review (Quarter Ended 3/31/2021)

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Financial Review: Per Share Data (1) The per share figures are based on a weighted average outstanding share count for the respective period. Financial Highlights – Per Share Data

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Financial Review: Quarterly Operating Results (1) The per share figures are based on a weighted average of the shares outstanding for the preceding quarter, except where such amounts need to be adjusted to be consistent with the financial highlights of our consolidated financial statements. (2) Total investment income includes PIK income and net accretion of OID and market discount. (3) Incentive fees include the reversal of certain accrued incentive fees.

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Financial Review: Portfolio (1) Total Fair Value of Investments does not include investments in short-term securities, including United States Treasury Bills. (2) Cash does not include our holdings in United States Treasury Bills or Restricted Cash. Financial Highlights - Portfolio

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Summary

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Capital Activity: Declared Quarterly Cash Distribution Distributions GECC’s Board authorized the distribution for the quarter ending September 30, 2021 at $0.10 per share, with the record and payment dates to be set by the officers of GECC pursuant to authority granted by the Board The Board previously authorized the distribution for the quarter ending June 30, 2021 of $0.10 per share, with record and payment dates expected to be set in May 2021 On an annualized basis, this currently represents an indicated yield of 10.3%* on NAV and a 11.9% yield on the April 30, 2021 closing price of $3.35. (* Based on an annualized $0.10 per share total / Net Asset Value of $3.89 share at March 31, 2021)

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Investment Takeaways A diversified portfolio, primarily comprised of secured loans, secured bonds, preferred equity and investments in specialty finance businesses uncorrelated to the corporate credit portfolio Intend to weight investments in specialty finance businesses in future portfolio Debt investments carry a weighted average current yield of 10.9%1 Weighted average current yield of income generating equity investments carry a weighted average current yield of 13.5%1,2 Solid Cash Balance New credit facility provides ample capital at favorable terms Distributions to Shareholders Cash distribution of $0.10 per share authorized for third quarter of 2021 Since the Company’s initial distribution in December 2016, $4.94 in total distributions paid, declared or authorized (in cash or stock) (1) Weighted average current yield is based upon the anticipated distribution rate and fair value of outstanding investments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. (2) Three of the 10 equity investments, totaling approximately $30.1 million of fair value as of March 31, 2021, are income-generating equity investments: Prestige Capital Finance, LLC, Blueknight Energy Partners L.P, and Crestwood Equity Partners, LP. Portfolio Repositioning Moving in Right Direction Ample Liquidity

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Appendix Financial Statements Balance Sheet General Risks Contact Information

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Consolidated Statements of Operations (unaudited) $ in $000s (except per share amounts)

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Consolidated Statements of Assets and Liabilities (unaudited) $ in $000s (except per share amounts)

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Appendix: General Risks Debt instruments are subject to credit and interest rate risks.   Credit risk refers to the likelihood that an obligor will default in the payment of principal or interest on an instrument. Financial strength and solvency of an obligor are the primary factors influencing credit risk. In addition, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument, and debt instruments that are rated by rating agencies are often reviewed and may be subject to downgrade. Our debt investments either are, or if rated would be, rated below investment grade by independent rating agencies. These “junk bonds” and “leveraged loans” are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may be illiquid and difficult to value and typically do not require repayment of principal before maturity, which potentially heightens the risk that we may lose all or part of our investment.   Interest rate risk refers to the risks associated with market changes in interest rates. Interest rate changes may affect the value of a debt instrument indirectly (especially in the case of fixed rate obligations) or directly (especially in the case of an instrument whose rates are adjustable). In general, rising interest rates will negatively impact the price of a fixed rate debt instrument and falling interest rates will have a positive effect on price. Adjustable rate instruments also react to interest rate changes in a similar manner although generally to a lesser degree (depending, however, on the characteristics of the reset terms, including the index chosen, frequency of reset and reset caps or floors, among other factors).   GECC utilizes leverage to seek to enhance the yield and net asset value of its common stock. These objectives will not necessarily be achieved in all interest rate environments. The use of leverage involves risk, including the potential for higher volatility and greater declines of GECC’s net asset value, fluctuations of dividends and other distributions paid by GECC and the market price of GECC’s common stock, among others. The amount of leverage that GECC may employ at any particular time will depend on, among other things, our Board’s and our adviser’s assessment of market and other factors at the time of any proposed borrowing.   As part of our lending activities, we may purchase notes or make loans to companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Although the terms of such financings may result in significant financial returns to us, they involve a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies experiencing significant business and financial difficulties is unusually high. We cannot assure you that we will correctly evaluate the value of the assets collateralizing our investments or the prospects for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to a portfolio company, we may lose all or part of the amounts advanced to the borrower or may be required to accept collateral with a value less than the amount of the investment advanced by us to the borrower.

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Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 Phone: +1 (617) 375-3006 investorrelations@greatelmcap.com Adam Prior The Equity Group Inc. +1 (212) 836-9606 aprior@equityny.com Contact Information