Great Elm Capital Corp Offers Senior Notes

Business development company Great Elm Capital Corp (NASDAQ:GECC) is going to offer a new offering of baby bonds.

The notes have a coupon of 6.50% and they will sell 1.6 million shares (bonds) with 240,000 shares available for over allotments.

The senior notes will mature in 2024 and carry a rating of BBB from Egan Jones (for what that is worth).

The baby bonds will have a ticker of GECCN.

GECC has a 2 older issues of baby bonds outstanding at this time which can be seen here.

The pricing term sheet can be read here.

9 thoughts on “Great Elm Capital Corp Offers Senior Notes”

  1. if your lucky the older ones will dip before the newer ones come out. I am going to miss out on this one.

  2. I sold NEWTZ awhile ago and it it’s trading above $27 now. Any thoughts why this issue would be so far above par?


    1. TechGuy—someone has lost their mind. The yield to worst (assumes it is redeemed tomorrow as it is in the redeemable period) is about -9%.

      This issue was originally only 328,000 shares so no real float. Average daily volume is about 1,000 shares.

      Someone apparently thinks the 6.91% current yield is pretty tasty and they are will to put $2-3 bucks on the line to own it–fools. The issue goes ex tomorrow–sometimes on the ex the issue will drop by multiples of the ex amount–we will watch this one.

    2. I took profits and bailed out on NEWTZ a short while ago also…getting singed by the ECCA redemption has made me skittish.

      *Blues up 4-0 in the third!!

  3. FWIW, Nicholas Marshi, the very thorough analyst behind the “BDC Reporter” site, blogs about this issue here.

    1. Mike D., Thanks for the link. Anyone know when this will start trading on Fidelity of TD?

      1. C Malcolm–on these types of issues no one ever really knows when they will begin trading–normally within a week. If you call their bond desk they may be able to get it now–otherwise it may be a week or 10 days before exchange trading starts.

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