Great Elm Capital Corp.
For the period ended Mar 31, 2026. Filed May 4, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 4, 2026
GECC$5.00-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0001193125-25-264873
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-04.
0001193125-26-204228
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 107 previous paragraphs and 101 current paragraphs.
69 unchanged; 23 reworded; 8 added; 13 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Effective February 2026, GECM waived all accrued and unpaid incentive fees through March 31, 2026. As of December 31, 2025, there were approximately $2.3 million of accrued and unpaid incentive fees on our balance sheet. For the three months ended March 31, 2026, an additional $0.5 million of incentive fees were accrued, resulting in $2.8 million of accrued and unpaid incentive fees. In connection with the incentive fee waiver, we recognized the reversal of these accrued and unpaid incentive fees during the three months ended March 31, 2026, resulting in a corresponding increase in net income and increase in net asset value in the period (subject to any offsetting additional expenses or losses). The incentive fee waiver is not subject to recapture. Effective April 2026, GECM waived all accrued and unpaid incentive fees through June 30, 2026.
Current report
Administration fees increased for the three months ended March 31, 2026 as compared to the corresponding period in the prior year primarily due to higher allocable overhead and other expenses incurred by GECM under the Administration Agreement.
Current report
Realized gain for the three months ended March 31, 2026 includes approximately $2.7 million from the realization of our investment in Stone Ridge Opportunities Fund, LP (“Stone Ridge”) and $0.7 million from the partial realization of our investment in the unsecured bond of American Coastal Insurance Corp (“American Coastal”). Realized losses for the three months ended March 31, 2026 were primarily driven by a $0.2 million loss on the sale of our equity investment in the State Street Blackstone Senior Loan ETF, $0.2 million from the partial realization of our investment in the first lien term loan of Auction.com, and $0.1 million from the partial realization of our investment in the first lien second out term loan of Conuma Resources LTD. The remaining $0.6 million of realized losses was attributable to smaller positions, none of which were individually material, and reflected routine portfolio activity.
Current report
For the three months ended March 31, 2026, net unrealized depreciation was primarily attributable to (i) approximately $3.8 million of unrealized depreciation related to our investment in CLO JV, driven by decreases in the fair value of the underlying CLO investments and (ii) approximately $2.3 million of net unrealized depreciation related to our investment in Universal Fiber Systems, LLC (“Universal Fibers”). In addition, unrealized depreciation included approximately $2.6 million attributable to the reversal of previously recognized unrealized appreciation on our investment in Stone Ridge and approximately $1.1 million attributable to the reversal of previously recognized unrealized appreciation on our investment in American Coastal, in each case in connection with the realization activity discussed above.
Current report
These unrealized losses were partially offset by unrealized appreciation attributable to increases in the fair value of (i) approximately $0.5 million related to our investment in CW Opportunity 2 LP, (ii) approximately $0.4 million related to our investment in W&T Offshore, Inc., and (iii) approximately $0.3 million related to our investment in Trouvaille RE Ltd. In addition, unrealized appreciation included approximately $1.1 million attributable to the reversal of previously recognized unrealized depreciation on our investment in Del Monte Food Corp II, Inc., primarily in connection with a $1.6 million partial paydown of our junior debtor-in-possession loan.
Current report
For the three months ended March 31, 2026, net cash provided by operating activities was approximately $23.5 million, reflecting $54.5 million provided by the sales of investments and principal payments offset by $25.9 million used for the purchase of investments and $6.5 million from the change in short-term investments.
Current report
For the three months ended March 31, 2026, net cash used for financing activities was $25.3 million. Cash outflows included $20.4 million to repurchase and redeem the 5.875% notes due 2026 (the “GECCO Notes”), $0.5 million from the repurchases of common stock, and $4.2 million in distributions to stockholders.
Current report
NAV per share is determined as of the last day in the relevant quarter and therefore does not necessarily reflect the NAV per share on the date of the high and low closing sales prices. The NAVs shown are based on outstanding shares at the end of each period.
Removed paragraphs (13)
Previous report
There was no incentive fee accrued for the three months ended September 30, 2025 due to decreased investment income and capital raises during the period resulting in increased hurdles which is based on the average capital invested during the period. Despite the current quarter decrease, incentive fees increased for the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024 due to a trend of increased pre-incentive net investment income throughout the year.
Previous report
Interest expense increased for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 due to the issuance of $50.0 million in aggregate principal amount of 7.75% notes due 2030 (the "GECCG Notes") in early September 2025 and the redemption of the $40.0 million in aggregate principal amount of 8.75% notes due 2028 (the “GECCZ Notes”) on September 30, 2025 which resulted in double the amount of accrued interest payable for the month of September along with approximately $0.9 million in deferred offering costs on the GECCZ Notes which was fully expensed upon redemption. For the nine months ended September 30, 2025, interest expense increased as compared to the nine months ended September 30, 2024 due to the current quarter activity along with increased average debt outstanding in connection with the issuance of $56.5 million in aggregate principal amount of the 8.50% Notes due 2029 (the “GECCI Notes”) in April and July 2024, and the issuance of $36.0 million in aggregate principal amount of the 8.125% Notes due 2029 (the “GECCH Notes”) in September 2024, offset with the redemption of $45.6 million in aggregate principal amount of the 6.75% Notes due in 2025 (the "GECCM Notes") in October 2024.
Previous report
Net realized gain for the three months and nine ended September 30, 2025 includes approximately $4.3 million in gains on the investments in Nice-Pak Products, Inc. ("Nice-Pak") which were realized in connection with the merger with Vi-Jon and $1.9 million in gain on distributions from the investment in CW Opportunity 2, LP ("CW Opportunity").
Previous report
Realized gain for the nine months ended September 30, 2024 includes $0.8 million in gains from the partial sale of our investment in American Coastal Insurance Corp unsecured bond and $0.8 million in gains from the partial sale of our investment in Blackstone Secured Lending Fund common equity. Realized losses for the nine months ended September 30, 2024 includes $0.6 million on the realization of our investment in PFS Holdings Corp. term loan and $0.3 million in loss from the realization of our investment in Eagle Point Credit Company common equity.
Previous report
For the three months ended September 30, 2025 net unrealized depreciation was primarily driven by unrealized depreciation of approximately $16.3 million across our investments in First Brands, Inc. ("First Brands") resulting from decreases in the public market pricing for these loans in connection with the recent bankruptcy filing, which is in early stages and outcomes remain uncertain. In addition, for the three months ended September 30, 2025, we recognized unrealized depreciation of approximately $4.1 million and $3.2 million on our investments in CW Opportunity and CLO JV, respectively. This unrealized depreciation was offset by distributions of $1.9 million in realized gain distributions and $1.5 million in income distributions from CW Opportunity and CLO JV, respectively, during the quarter. In addition, unrealized depreciation includes approximately $4.5 million in reversal of previously recognized unrealized appreciation on our investments in Nice-Pak in connection with the merger of the company into the new Vivos Holdings, LLC, resulting in realized gains of $4.3 million. These losses were partially offset by unrealized appreciation driven by increases in the fair value of our investments in Trouvaille and Great Elm Specialty Finance, LLC ("GESF") common stock resulting in unrealized appreciation of $1.2 million and $0.9 million, respectively.
Previous report
Net unrealized depreciation for the nine months ended September 30, 2025 was primarily driven by the current quarter losses discussed above which include unrealized depreciation of approximately $17.0 million, $4.1 million and $7.3 million on our investments in First Brands, Nice-Pak, and CLO JV, respectively. These losses are partially offset by unrealized appreciation of $8.5 million on our investment in CW Opportunity during the nine months ended September 30, 2025.
Previous report
For the nine months ended September 30, 2024, unrealized appreciation was primarily driven by an increase in fair value of our investment in Nice-Pak warrants of approximately $2.2 million and in our investment in Maverick Gaming, LLC term loan of approximately $1.5 million. Unrealized depreciation for the nine months ended September 30, 2024 was primarily driven by a decrease in fair value of our investment in GESF common stock of approximately $3.6 million and in our investment in New Wilkie Energy term loan of approximately $2.2 million.
Previous report
For the nine months ended September 30, 2025, net cash used for operating activities was approximately $21.4 million, reflecting the purchases and repayments of investments offset by net investment income, including non-cash income related to accretion of discount and PIK income and proceeds from sales of investments and principal payments received. Net cash provided by purchases and proceeds from sales of investments was approximately $13.8 million, reflecting proceeds from principal repayments and sales of $132.5 million, offset payments for additional investments of $146.3 million.
Previous report
For the nine months ended September 30, 2025, net cash provided by financing activities was $21.4 million. Cash inflows consisted of $27.3 million in proceeds from the issuance of common equity and $48.4 million in proceeds from the issuance of the GECCG Notes. Cash outflows included $40.0 million to redeem the GECCZ notes and $14.1 million in distributions to stockholders.
Previous report
Issuance of GECCG Notes
Previous report
On October 2, 2025, the Company issued an additional $7.5 million of the GECCG Notes upon full exercise of the underwriters' over-allotment option.
Previous report
Share Repurchase Program
Previous report
Following quarter end, the Company’s Board of Directors authorized a new share repurchase program, whereby the Company may repurchase up to an aggregate of $10 million of its outstanding common shares. Such repurchases may be accomplished through a Rule 10b5-1 plan, which sets certain restrictions on the method, timing, price and volume of share repurchases. The repurchase program does not obligate the Company to acquire any specific number of shares.
Reworded paragraphs (23)
Previous wording
We generate revenue primarily from interest on the debt investments that we hold. We may also generate revenue from dividends on the equity investments that we hold, capital gains on the disposition of investments, and lease, fee, and other income. Our investments in fixed income instruments generally have an expected maturity of three to five years, although we have no lower or upper constraint on maturity. Our debt investments generally pay interest quarterly or semi-annually. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments and preferred stock investments may defer payments of cash interest or dividends or payment-in-kind (“PIK”). In addition, we may generate revenue in the form of prepayment fees, commitment, origination, due diligence fees, end-of-term or exit fees, fees for providing significant managerial assistance, consulting fees and other investment-related income.
Current wording
We generate revenue primarily from interest on the debt investments that we hold. We may also generate revenue from dividends on the equity investments that we hold, capital gains on the disposition of investments and other income. Our investments in fixed income instruments generally have an expected maturity of three to five years, although we have no lower or upper constraint on maturity. Our debt investments generally pay interest quarterly or semi-annually. Payments of principal of our debt investments may be amortized over the stated term of the investment, deferred for several years or due entirely at maturity. In some cases, our debt investments and preferred stock investments may defer payments of cash interest or dividends or payment-in-kind (“PIK”). In addition, we may generate revenue in the form of prepayment fees, commitment, origination, due diligence fees, end-of-term or exit fees, fees for providing significant managerial assistance, consulting fees and other investment-related income.
Previous wording
GECM, as the Board's valuation designee approves in good faith the valuation of our portfolio as of the end of each quarter. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may impact the market quotations used to value some of our investments.
Current wording
GECM, as the Board’s valuation designee, approves in good faith the valuation of our portfolio as of the end of each quarter, subject to the general oversight of the Board of Directors. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and may differ materially from the values that we may ultimately realize. In addition, changes in the market environment and other events may impact the market quotations used to value some of our investments.
Previous wording
The following is a summary of our investment activity for the year ended December 31, 2024 and the nine months ended September 30, 2025:
Current wording
The following is a summary of our investment activity for the year ended December 31, 2025 and the three months ended March 31, 2026:
Previous wording
The following is a reconciliation of the investment portfolio for the nine months ended September 30, 2025 and the year ended December 31, 2024. Investments in short-term securities, including U.S. Treasury Bills and money market mutual funds, are excluded from the table below.
Current wording
The following is a reconciliation of the investment portfolio for the three months ended March 31, 2026 and the year ended December 31, 2025. Investments in short-term securities, including U.S. Treasury Bills and money market mutual funds, are excluded from the table below.
Previous wording
Interest income decreased for the three months ended September 30, 2025 as compared to the corresponding periods in the prior year primarily due to a lower average coupon rate across the portfolio in combination with decreased debt investment portfolio size. As of September 30, 2025, the debt investment portfolio had an average coupon rate of 10.8% on approximately $224.1 million of principal as compared to 12.3% on approximately $241.2 million of principal as of September 30, 2024, excluding positions on non-accrual in each period. Interest income for the nine months ended September 30, 2025 was consistent with the interest income for the nine months ended September 30, 2024. Interest income includes PIK interest which is reported in the statements of operations. The total PIK interest earned remained consistent for the three and nine months ended September 30, 2025 as compared to the corresponding periods in the prior year.
Current wording
Interest income decreased for the three months ended March 31, 2026 as compared to the corresponding period in the prior year primarily due to a lower average coupon rate across the portfolio combined with a decrease in the debt investment portfolio size. As of March 31, 2026, the debt investment portfolio had an average coupon rate of 10.9% on approximately $199.2 million of principal as compared to 11.7% on approximately $256.2 million of principal as of March 31, 2025, excluding positions on non-accrual in each period. Interest income includes PIK interest which is reported in the Statements of Operations. The total PIK interest earned remained consistent for the three months ended March 31, 2026 as compared to the corresponding period in the prior year.
Previous wording
Dividend income decreased for the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 due to fewer holdings in dividend-paying preferred stock investments and reductions in distributions from the investment in the CLO JV which distributed $1.5 million and $3.0 million for the three months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, dividend income included $2.1 million and $8.6 million in distributions from Trouvaille Re Ltd. ("Trouvaille") and the CLO JV respectively. In the nine months ended September 30, 2024, there were no distributions from Trouvaille and distributions from CLO JV were approximately $3.0 million.
Current wording
Dividend income decreased for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 due to fewer holdings in dividend-paying equity investments and reductions in distributions from the investment in the CLO JV which distributed $2.5 million and $3.3 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
Other commitment fees decreased for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024 due to termination of revolver commitments and associated commitment fees. Other income increased for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024 primarily due to non-refundable carry fees, early repayment fees, and amendment fees on new and amended debt positions.
Current wording
Other income decreased for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 primarily due to non-refundable carry fees, early repayment fees, and amendment fees on new and amended debt positions received during the three months ended March 31, 2025. These were one-time fees on investments and were not received during the three months ended March 31, 2026.
Previous wording
Management fees increased for the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024 due to increased management fee assets from growth of the portfolio in the current year periods as compared to the corresponding prior year periods.
Current wording
Management fees decreased for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 due to a decrease in the underlying management fee assets, primarily due to a decline in the fair value of the portfolio of investments, in the current year period as compared to the corresponding prior year period.
Previous wording
Professional services costs increased for the three and nine months ended September 30, 2025 as compared to the corresponding periods in the prior year, primarily due to general rate increases for professional services including valuation, legal and accounting costs along with additional services related to growth in the portfolio and certain one-time costs.
Current wording
Professional services costs increased for the three months ended March 31, 2026 as compared to the corresponding period in the prior year, primarily due to general rate increases for professional services, including legal and accounting fees, along with certain one-time fees.
Previous wording
Realized gain for the three months ended September 30, 2024 includes $0.3 million in gains from the realization of our investment in Florida Marine, LLC term loan. Realized losses for three months ended September 30, 2024 includes $0.2 million in loss from the realization of our investment in Eagle Point Credit Company common equity.
Current wording
Realized gain for the three months ended March 31, 2025 includes $0.2 million in gains from the realization of our investment in W&T Offshore Inc. secured bonds. Realized losses for the three months ended March 31, 2025 includes $0.1 million in loss from the realization of our investment in Dynata, LLC (“Dynata”, formerly known as Research Now Group, Inc.) common equity.
Previous wording
For the three months ended September 30, 2024, unrealized appreciation was primarily driven by an increase in fair value of our investment in CW Opportunity 2 LP of approximately $1.1 million and in our investment in Nice-Pak warrants of approximately $0.5 million. Unrealized depreciation for the three months ended September 30, 2024 was primarily driven by a decrease in fair value of our investment in GESF common stock of approximately $1.1 million and in our investment in Blue Ribbon, LLC term loan of approximately $0.4 million.
Current wording
For the three months ended March 31, 2025, unrealized appreciation was primarily driven by an increase in fair value of our investment in Trouvaille Re Ltd. preference shares of approximately $0.8 million and in our investment in Dynata common equity of approximately $0.8 million. Unrealized depreciation for the three months ended March 31, 2025 was primarily driven by a decrease in fair value of our investment in CLO JV common equity of approximately $1.9 million and in our investment in CW Opportunity 2, LP of approximately $1.1 million.
Previous wording
As of September 30, 2025, we had approximately $88.7 million of short term investments including money market fund investments and treasury bills. As of September 30, 2025, we had investments in 66 debt instruments across 49 companies, totaling approximately $220.7 million at fair value and 19 equity investments in 15 companies, with an aggregate fair value of approximately $104.4 million.
Current wording
As of March 31, 2026, we had approximately $9.6 million of short term investments in money market fund investments. As of March 31, 2026, we had investments in 65 debt instruments across 49 companies, totaling approximately $190.4 million at fair value and 18 equity investments in 15 companies, with an aggregate fair value of approximately $76.8 million.
Previous wording
In the normal course of business, we may enter into investment agreements under which we commit to make an investment in a portfolio company at some future date or over a specified period of time. As of September 30, 2025, we had approximately $46,000 in unfunded commitments to provide financing to certain of our portfolio companies. We had sufficient availability on our Revolver as well as cash and other liquid assets on our September 30, 2025 balance sheet to satisfy the unfunded commitments.
Current wording
In the normal course of business, we may enter into investment agreements under which we commit to make an investment in a portfolio company at some future date or over a specified period of time. As of March 31, 2026, we had approximately $1.3 million in unfunded commitments to provide financing to certain of our portfolio companies. We had sufficient availability on our Revolver as well as cash and other liquid assets on our March 31, 2026 balance sheet to satisfy the unfunded commitments.
Previous wording
On May 5, 2021, we entered into a Loan, Guarantee and Security Agreement (the “Loan Agreement”) with City National Bank (“CNB”). The Loan Agreement provides for a senior secured revolving line of credit (the “Revolver”) of up to $25 million (subject to a borrowing base as defined in the Loan Agreement). We may request to increase the revolving line in an aggregate amount not to exceed $25 million, which increase is subject to the sole discretion of CNB. In November 2023, the Company entered into an amendment to the Loan Agreement extending the maturity date of the revolving line to May 5, 2027. On August 13, 2025, the Company amended the Loan Agreement to increase the commitment of the revolving line of credit to up to $50 million (subject to a borrowing base as defined in the Loan Agreement). The amendment also allows the Company to request an increase of the Revolving Facility in an aggregate amount not to exceed $40 million (up to a revolving line of $90 million), which increase is subject to the sole discretion of CNB and updates the maturity date of the revolving line to the earlier of (i) May 5, 2027 and (ii) May 31, 2026 if the Company’s 5.875% notes due 2026 have not been refinanced prior to such date. In addition, the Amendment provides that borrowings under the Revolving Facility shall bear interest at a rate equal to (a) SOFR plus 2.50% or (b) a base rate plus 1.50%. The Amendment also amended the financial covenant of minimum net assets requirement to be of not less than $80 million. As of September 30, 2025, there were no borrowings outstanding under the revolving line.
Current wording
On August 13, 2025, we amended the Loan Agreement to increase the commitment of the revolving line of credit to up to $50 million (subject to a borrowing base as defined in the Loan Agreement). The amendment also allows us to request an increase of the Revolving Facility in an aggregate amount not to exceed $40 million (up to a revolving line of $90 million), which increase is subject to the sole discretion of CNB and updates the maturity date of the revolving line to the earlier of (i) May 5, 2027 and (ii) May 31, 2026 if the Company’s 5.875% notes due 2026 have not been refinanced prior to such date. In addition, the amendment provides that borrowings under the Revolving Facility shall bear interest at a rate equal to (i) at all times when a minimum deposit test is met (a) SOFR plus 2.50% or (b) a base rate plus 1.50% and (ii) at all times when a minimum deposit test is not met (a) SOFR plus 3.50% or (b) a base rate plus 2.50%. The amendment also amended the financial covenant of minimum net assets requirement to be of not less than $80 million. As of March 31, 2026, there were no borrowings outstanding under the revolving line.
Previous wording
On January 11, 2018, we issued $43.0 million in aggregate principal amount of 6.75% notes due 2025 (the “GECCM Notes”). On January 19, 2018 and February 9, 2018, we issued an additional $1.9 million and $1.5 million, respectively, of the GECCM Notes upon partial exercise of the underwriters’ over-allotment option. On September 12, 2024, we caused redemption notices to be issued to the holders of the GECCM Notes regarding the Company's exercise of its option to redeem, in whole, the issued and outstanding GECCM Notes. We redeemed all of the issued and outstanding GECCM Notes on October 12, 2024 at 100% of the principal amount plus accrued and unpaid interest thereon from September 30, 2024 through, but excluding, the redemption date, October 12, 2024.
Current wording
On June 23, 2021, we issued $50.0 million in aggregate principal amount of GECCO Notes. On July 9, 2021, we issued an additional $7.5 million of the GECCO Notes upon full exercise of the underwriters’ over-allotment option. In December 2025, we repurchased $18.5 million of the outstanding principal on the GECCO Notes. During thethree months ended March 31, 2026, we repurchased $0.4 million of the outstanding principal on the GECCO Notes. On March 31, 2026, we redeemed $20.0 million of outstanding GECCO Notes at 100% of the principal amount. The aggregate principal balance of the GECCO Notes outstanding as of March 31, 2026 was$18.6 million. On April 27, 2026, we caused a notice to be issued to the holders of the GECCO Notes regarding the Company's exercise of its option to redeem $18.6 million aggregate principal amount of the issued and outstanding GECCO Notes on May 27, 2026.
Previous wording
On August 16, 2023, we issued $40.0 million in aggregate principal amount of 8.75% notes due 2028 (the “GECCZ Notes”). On August 29, 2025, we caused redemption notices to be issued to the holders of the GECCZ Notes regarding the Company's exercise of its option to redeem $40 million aggregate principal amount of the issued and outstanding GECCZ Notes. We redeemed all of the issued and outstanding GECCZ Notes on September 30, 2025 at 100% of the principal amount plus accrued and unpaid interest thereon.
Current wording
On August 16, 2023, we issued $40.0 million in aggregate principal amount of 8.75% notes due 2028 (the “GECCZ Notes”). On August 29, 2025, we caused redemption notices to be issued to the holders of the GECCZ Notes regarding the Company's exercise of its option to redeem $40.0 million aggregate principal amount of the issued and outstanding GECCZ Notes. We redeemed all of the issued and outstanding GECCZ Notes on September 30, 2025 at 100% of the principal amount plus accrued and unpaid interest thereon from July 1, 2025 through, but excluding, the redemption date, September 30, 2025.
Previous wording
On September 19, 2024, the Company issued $36.0 million in aggregate principal amount of 8.125% notes due 2029 (the "GECCH Notes"). On October 3, 2024, the Company issued an additional $5.4 million of the GECCH Notes upon full exercise of the underwriters' over-allotment option. The aggregate principal balance of the GECCH Notes outstanding as of September 30, 2025 was$41.4 million.
Current wording
On September 19, 2024, we issued $36.0 million in aggregate principal amount of 8.125% notes due 2029 (the “GECCH Notes”). On October 3, 2024, we issued an additional $5.4 million of the GECCH Notes upon full exercise of the underwriters’ over-allotment option. The aggregate principal balance of the GECCH Notes outstanding as of March 31, 2026 was$41.4 million.
Previous wording
On September 11, 2025, the Company issued $50.0 million in aggregate principal amount of 7.75% notes due 2030 (the "GECCG Notes") and together with the GECCO Notes, GECCI Notes and GECCH Notes, the "Notes"). The aggregate principal balance of the GECCG Notes outstanding as of September 30, 2025 was$50.0 million. On October 2, 2025, we issued an additional $7.5 million of the GECCG Notes upon full exercise of the underwriters' over-allotment option.
Current wording
On September 11, 2025, we issued $50.0 million in aggregate principal amount of 7.75% notes due 2030 (the “GECCG Notes” and together with the GECCO Notes, GECCI Notes and GECCH Notes, the “Notes”). On October 2, 2025, we issued an additional $7.5 million of the GECCG Notes upon full exercise of the underwriters' over-allotment option. The aggregate principal balance of the GECCG Notes outstanding as of March 31, 2026 was$57.5 million.
Previous wording
As of September 30, 2025, our asset coverage ratio was approximately 168.2%. Under the Investment Company Act, we are subject to a minimum asset coverage ratio of 150%.
Current wording
On May 3, 2018, a majority of our stockholders approved the application of the modified minimum asset coverage requirement pursuant to Section 61(a)(2) under the Investment Company Act. As a result of such approval, and subject to satisfying certain ongoing disclosure requirements, effective May 4, 2018 the asset coverage ratio test applicable to the Company was decreased from 200% to 150%. As of March 31, 2026, our asset coverage ratio was approximately 161.8%. Under the Investment Company Act, we are subject to a minimum asset coverage ratio of 150%.
Previous wording
During the last two fiscal years, using the high and low sales prices within each fiscal quarter compared to the NAV at such quarter end, our common stock has traded as high as a 14.4% premium to NAV and as low as a 40.4% discount to NAV.
Current wording
During fiscal years 2024 and 2025 and through April 27, 2026, using the high and low sales prices within each fiscal quarter compared to the NAV at such quarter end, our common stock has traded as high as a 14.4% premium to NAV and as low as a 38.8% discount to NAV.
Previous wording
The last reported closing price for our common stock on October 30, 2025 was$7.64 per share. As of October 29, 2025, we had 11 record holders of our common stock.
Current wording
The last reported closing price for our common stock on April 27, 2026 was$5.52 per share. As of April 27, 2026, we had 12 record holders of our common stock.
Previous wording
Our board set the distribution for the quarter ending December 31, 2025 at a rate of $0.37 per share. The full amount of each distribution will be from distributable earnings. The fourth quarter distribution will be payable on December 31, 2025 to stockholders of record as of December 15, 2025. The distribution will be paid in cash.
Current wording
Our board set the distribution for the quarter ending June 30, 2026 at a rate of $0.25 per share. The full amount of each distribution will be from distributable earnings. The distribution will be payable on June 30, 2026 to stockholders of record as of June 15, 2026. The distribution will be paid in cash.
Previous wording
We are also subject to financial risks, including changes in market interest rates. As of September 30, 2025, approximately $153.9 million in principal amount of our debt investments bore interest at variable rates, which are generally based on SOFR or US prime rate, and many of which are subject to certain floors. Recently, interest rates have risen and a prolonged increase in interest rates will increase our gross investment income and could result in an increase in our net investment income if such increases in interest rates are not offset by a corresponding decrease in the spread over variable rates that we earn on any portfolio investments or an increase in our operating expenses. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for an analysis of the impact of hypothetical base rate changes in interest rates.
Current wording
We are also subject to financial risks, including changes in market interest rates. As of March 31, 2026, approximately $146.0 million in principal amount of our debt investments bore interest at variable rates, which are generally based on SOFR or US prime rate, and many of which are subject to certain floors. Recently, interest rates have risen and a prolonged increase in interest rates will increase our gross investment income and could result in an increase in our net investment income if such increases in interest rates are not offset by a corresponding decrease in the spread over variable rates that we earn on any portfolio investments or an increase in our operating expenses. See “Item 3. Quantitative and Qualitative Disclosures About Market Risk” for an analysis of the impact of hypothetical base rate changes in interest rates.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On May 5, 2021, we entered into a Loan, Guarantee and Security Agreement (the “Loan Agreement”) with City National Bank (“CNB”). The Loan Agreement provides for a senior secured revolving line of credit (the “Revolver”) of up to $25 million (subject to a borrowing base as defined in the Loan Agreement). We may request to increase the revolving line in an aggregate amount not to exceed $25 million, which increase is subject to the sole discretion of CNB. In November 2023, we entered into an amendment to the Loan Agreement extending the maturity date of the revolving line to May 5, 2027. We are required to pay a commitment fee of 0.50% per annum on any unused portion of the revolving line of credit when less than $25 million is drawn; if borrowings are $25 million or more on the facility, the commitment fee decreases to 0.25% per annum on any unused portion of the revolving line of credit.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
On October 2, 2025, we issued an additional $7.5 million of the GECCG Notes upon full exercise of the underwriters' over-allotment option.
Previous report — wording carried elsewhere
On June 23, 2021, we issued $50.0 million in aggregate principal amount of 5.875% notes due 2026 (the “GECCO Notes”). On July 9, 2021, we issued an additional $7.5 million of the GECCO Notes upon full exercise of the underwriters’ over-allotment option. The aggregate principal balance of the GECCO Notes outstanding as of September 30, 2025 was$57.5 million.