Great Elm Capital Corp. Announces Conditional Redemption of 6.75% Notes due 2025
Great Elm Capital Corp. (GECC) has announced a conditional redemption of its 6.75% Notes due 2025. The redemption is set for October 12, 2024, contingent on the successful closing of GECC's public offering of 8.125% Notes due 2029. The 2025 Notes will be redeemed at 100% of their principal amount, plus accrued and unpaid interest from September 30, 2024, through the Redemption Date.
GECC reserves the right to delay the Redemption Date or cancel the redemption if the 2029 Notes Offering is not completed as planned. This move suggests GECC is restructuring its debt, potentially to take advantage of more favorable terms or to extend its debt maturity profile.
Great Elm Capital Corp. (GECC) ha annunciato un riscatto condizionato delle sue Note 6,75% in scadenza nel 2025. Il riscatto 猫 previsto per il 12 ottobre 2024, subordinato alla conclusione positiva dell'offerta pubblica di GECC di Note 8,125% in scadenza nel 2029. Le Note del 2025 saranno riscattate a 100% del loro valore nominale, pi霉 gli interessi maturati e non pagati dal 30 settembre 2024 fino alla data di riscatto.
GECC si riserva il diritto di rinviare la data di riscatto o annullare il riscatto se l'offerta delle Note del 2029 non viene completata come previsto. Questa mossa suggerisce che GECC sta ristrutturando il suo debito, potenzialmente per sfruttare condizioni pi霉 favorevoli o per estendere il profilo di scadenza del suo debito.
Great Elm Capital Corp. (GECC) ha anunciado un rescate condicionado de sus Notas del 6,75% con vencimiento en 2025. El rescate est谩 programado para el 12 de octubre de 2024, sujeto al cierre exitoso de la oferta p煤blica de GECC de Notas del 8,125% con vencimiento en 2029. Las Notas de 2025 ser谩n rescatadas al 100% de su monto principal, m谩s los intereses acumulados y no pagados desde el 30 de septiembre de 2024 hasta la fecha de rescate.
GECC se reserva el derecho de retrasar la fecha de rescate o anular el rescate si la oferta de las Notas de 2029 no se completa como estaba previsto. Esta acci贸n sugiere que GECC est谩 reestructurando su deuda, potencialmente para aprovechar condiciones m谩s favorables o para extender el perfil de vencimiento de su deuda.
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Great Elm Capital Corp. (GECC) a annonc茅 un rachat conditionnel de ses Obligations 脿 6,75% arrivant 脿 茅ch茅ance en 2025. Le rachat est pr茅vu pour le 12 octobre 2024, sous r茅serve de la cl么ture r茅ussie de l鈥檕ffre publique de GECC de Obligations 脿 8,125% arrivant 脿 茅ch茅ance en 2029. Les Obligations de 2025 seront rachet茅es 脿 100% de leur montant principal, plus les int茅r锚ts courus et impay茅s du 30 septembre 2024 jusqu'脿 la date de rachat.
GECC se r茅serve le droit de retarder la date de rachat ou d'annuler le rachat si l'offre des Obligations de 2029 n'est pas compl茅t茅e comme pr茅vu. Cette d茅marche sugg猫re que GECC restructure sa dette, potentiellement pour profiter de conditions plus favorables ou pour prolonger le profil d'茅ch茅ance de sa dette.
Great Elm Capital Corp. (GECC) hat eine bedingte R眉ckzahlung ihrer 6,75% Anleihen mit F盲lligkeit 2025 bekannt gegeben. Die R眉ckzahlung ist f眉r den 12. Oktober 2024 vorgesehen, vorbehaltlich des erfolgreichen Abschlusses des 枚ffentlichen Angebots von GECC f眉r 8,125% Anleihen mit F盲lligkeit 2029. Die 2025 Anleihen werden zum 100% ihres Nennbetrags zur眉ckgezahlt, zuz眉glich aufgelaufener und unbezahlter Zinsen vom 30. September 2024 bis zum R眉ckzahlungstermin.
GECC beh盲lt sich das Recht vor, das R眉ckzahlungsdatum zu verz枚gern oder die R眉ckzahlung abzubrechen, wenn das Angebot der 2029 Anleihen nicht wie geplant abgeschlossen wird. Dieser Schritt deutet darauf hin, dass GECC ihre Schulden umstrukturiert, m枚glicherweise um von g眉nstigeren Bedingungen zu profitieren oder um das F盲lligkeitenprofil ihrer Schulden zu verl盲ngern.
- Potential improvement in debt structure through new 8.125% Notes due 2029 offering
- Full redemption of existing 6.75% Notes due 2025 at par value, avoiding any premium payments
- Increase in interest rate from 6.75% to 8.125% on new notes, potentially raising borrowing costs
- Redemption is conditional, creating uncertainty for current noteholders
Insights
Great Elm Capital Corp's announcement to redeem its 6.75% Notes due 2025 is a significant move that could reshape its debt structure. The conditional redemption, contingent on the successful completion of a new 8.125% Notes due 2029 offering, suggests a strategic shift in the company's financing approach. This maneuver, if executed, would extend GECC's debt maturity profile by four years, potentially providing more financial flexibility.
However, investors should note the higher interest rate of
It's important to monitor the success of the 2029 Notes Offering, as it directly affects the redemption of the 2025 Notes. If the new offering fails, GECC may have to reconsider its debt management strategy, potentially leading to market uncertainty about the company's financial position.
The conditional redemption announcement by Great Elm Capital Corp. signals a proactive approach to debt management, which could be viewed positively by the market. However, the success of this strategy hinges on investor appetite for the new 8.125% Notes due 2029. The higher yield might attract income-focused investors, potentially ensuring a successful offering.
From a broader perspective, this move reflects the current interest rate environment. The company's decision to issue higher-yielding notes suggests an expectation of continued high interest rates in the medium term. This aligns with recent market sentiments and could be seen as a prudent, albeit costly, hedge against future rate hikes.
Investors should pay close attention to the market's reception of the new notes offering. A successful issuance could boost confidence in GECC's financial management and potentially support its stock price. Conversely, any difficulties in placing the new notes might raise concerns about the company's ability to refinance its debt effectively, possibly leading to negative market reactions.
PALM BEACH GARDENS, Fla., Sept. 12, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the 鈥�Company鈥� or 鈥�GECC鈥�) (NASDAQ: GECC) announced today that it has caused notices to be issued to the holders of its
About Great Elm Capital Corp.
GECC is an externally managed business development company that seeks to generate both current income and capital appreciation through debt and income generating equity investments, including investments in specialty finance businesses.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this communication that are not historical facts are 鈥渇orward-looking鈥� 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 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渟hould,鈥� 鈥渨ill,鈥� 鈥渆stimate,鈥� 鈥渄esigned,鈥� 鈥渟eek,鈥� 鈥渃ontinue,鈥� 鈥渦pside,鈥� 鈥減otential鈥� 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, fluctuations in interest rates, inflationary pressure, the price of GECC common stock and the performance of GECC鈥檚 portfolio and investment manager. Information concerning these and other factors can be found in GECC鈥檚 Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. 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.
Media & Investor Contact:
Investor Relations
investorrelations@greatelmcap.com
FAQ
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