Great Elm to use new note proceeds for redemptions, paydowns

By Mary-Katherine Stinson

Lexington, Ky., June 21 – Great Elm Capital Corp. detailed the use of proceeds from a planned offering of $25-par notes due 2028, according to a form N-2 filed with the Securities and Exchange Commission.

Great Elm intends to use the proceeds to redeem all $42.8 million aggregate principal amount outstanding of 6.5% notes due June 30, 2024.

Additionally, Great Elm may also elect to redeem a portion of its outstanding $45.6 million aggregate principal amount of the 6.75% notes due Jan. 31, 2025, redeem a portion of its outstanding $57.5 million aggregate principal amount of the 5.875% notes due June 30, 2026 or repay all or part of the $5 million in borrowings outstanding under its loan agreement.

Great Elm’s loan agreement provides a senior secured revolving credit line maturing on May 5, 2024 which bears interest at SOFR plus 350 basis points, a base rate plus 200 bps or a combination of the two as determined by the company.

Great Elm is a Waltham, Mass.-based middle market investment company.

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