Great Elm Capital Corp. 7.75% Notes Due 2030 Q3 FY2025 earnings call

• After a strong first half of 2025, GECC had a solid start to the third quarter and is on pace to meet/exceed income targets. They raised equity, doubled revolver size, reduced revolver rate, and refinanced debt. - Exposure to First Brands negatively impacted NAV, but Nice-Pak was a success with ~38% IRR over 3 years. - Entering Q4 with leverage in line, $25 million cash deployable, and plan to harvest over $20 million of nonyielding assets. - Board approved $0.37 dividend for Q4 and $10 million share repurchase. - Focus on secured debt, enhancing portfolio quality; Specialty Finance rebranded and upsized its back leverage facility.

In the third quarter, Great Elm Capital Corp. (GECC) generated NII of $2.4 million or $0.20 per share, down from $5.9 million or $0.51 per share in the second quarter. The net assets as of September 30, 2025, were $140 million, consistent with June 30. NAV per share was $10.01 as of September 30 versus $12.10 as of June 30. Great Elm Specialty Finance had a strong third quarter, increasing its distribution to GECC to approximately $450,000 from $120,000 last quarter. The corporate portfolio has over $220 million of investments, with first lien loans comprising 2/3 of the portfolio as of September 30.

• On pace to meet internal income generation targets for 3Q. - Expect NII to significantly rebound in Q4 due to increased CLO distributions and normalized interest expense. - Board approved $0.37 per share cash distribution for Q4, payable December 31. - $25 million of deployable cash, $50 million revolver availability, and plan to deploy nonyielding assets into cash-generating investments.

• Exposure to First Brands was too large, adversely impacting NAV. - Unrealized losses in CW Opportunity 2 LP due to CoreWeave common stock decline. - Need to monitor tariff and trade dynamics and their second/third order effects on the portfolio.

Q: Curious if you could provide color on the cadence and timing of future distributions from CoreWeave?

A: We provided color on distributions in September and October, received distributions covering cost basis, and will update next quarter on distributions.

Q: Is the $20 million of capital from nonyielding assets separate from future expected distributions from CoreWeave?

A: The $20 million or over $20 million includes CoreWeave and other non-yielding assets to be harvested in the coming months into early 2026.

Q: Talk about opportunities in the pipeline, risk-adjusted evaluation, and pipeline size relative to 3 months ago?

A: Spreads in public markets are tight; focused on secured, income-generating opportunities at top of capital structure. Working on private credit transactions, one closing this week, with teens-type return profile and warrants.

Q: Can you comment on CLO distributions in 4Q?

A: The $4.3 million received so far in 4Q is likely close to the full number for the quarter