Great Elm Capital doubles revolving credit facility to $50 million

NEW YORK - Great Elm Capital Corp. (NASDAQ:GECC), a business development company with a market capitalization of $127 million and trading near its 52-week high of $11.39, announced Wednesday it has amended its revolving credit facility with City National Bank, doubling the borrowing capacity from $25 million to $50 million. According to InvestingPro data, the company has demonstrated strong revenue growth of 29% over the last twelve months.

The amendment includes provisions allowing GECC to potentially increase the overall borrowing capacity to a maximum of $90 million under certain circumstances. Additionally, the interest rate on the facility has been reduced to the applicable Secured Overnight Financing Rate plus 2.50%, down from SOFR plus 3.00%. The company maintains an attractive P/E ratio of 7x, though InvestingPro analysis indicates short-term obligations currently exceed liquid assets.

"The increased borrowing capacity is a testament to our growing capital base and strong operational performance since partnering with CNB on the initial $25.0 million commitment in 2021," said Matt Kaplan, GECC’s Chief Executive Officer, in a press release statement.

The company indicated the amended facility reduces borrowing costs while enhancing flexibility to fund investment opportunities. GECC also noted that shifting its liability mix to more floating rate debt is a strategic move in the current interest rate environment.

Great Elm Capital Corp. focuses on generating current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses and CLOs.

The amendment comes as the company continues to expand its financial capabilities since establishing the initial revolving credit facility with City National Bank in 2021.

In other recent news, Great Elm Capital Corp reported a strong performance for the second quarter of 2025, exceeding Wall Street’s expectations. The company announced earnings per share of $0.51, which surpassed the forecasted $0.40, marking a 27.5% surprise. This achievement was supported by a record total investment income of $14.3 million. These results highlight significant growth and have generated positive reactions from investors. Additionally, the company’s recent developments have caught the attention of analysts and market observers. Although specific analyst upgrades or downgrades were not mentioned, the financial results indicate a robust quarter. These figures are crucial for investors as they assess the company’s financial health and future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.