Great Elm Capital Corp. 7.75% Notes Due 2030 Q4 FY2023 earnings call

• Finished 2023 with approximately 30% return on equity and continued momentum into 2024 with a $24 million equity raise at net asset value.
• In Q4, NII exceeded the base dividend for the fourth consecutive quarter, full year total investment income was over $30 million, the highest in history.
• Rotated into higher yielding investments, with 98% of deployments in Q4 to first lien investments. Amended a $25 million revolving line of credit, extending maturity to May 2027 and reducing cost by 50 basis points.
• Hired Jason Schwartz as Chief Credit Officer for Specialty Finance to drive growth and assist with lending arrangements.

For the general operations: In the fourth quarter, GECC generated NII of $3.3 million, compared to $3.1 million in the third quarter. Full year NII was $12.5 million or $1.55 per share. Net assets as of December 31 rose to $99 million, and NAV per share improved to $12.99. For Specialty Finance: Prestige had invoice financing volume weakness in the back half of 2023 but ended strong and expects a strong first quarter. Great Elm Healthcare Finance has robust deal flow and expects to take advantage of healthcare market dislocation. Sterling Commercial Credit built a pipeline in the fourth quarter. A new asset based and asset backed financing vertical is being developed with bank and non-bank capital providers.

• Well positioned to continue covering quarterly base distribution throughout 2024.
• Continue capital raising initiatives and focus on investments benefiting from elevated rate environment while monitoring the macro landscape.