GECCI · Great Elm Capital Corp. - 8.125

Great Elm Capital Corp. reported first quarter 2026 results with total investment income of $9.5 million, down from $12.6 million in the prior quarter due to lower CLO JV distributions of $2.5 million versus $4.3 million. Despite the decline, net investment income rose to $5.0 million or $0.36 per share from $4.4 million or $0.31 per share, driven by GECM's waiver of $2.8 million in accrued incentive fees through March 31, 2026, and further waiver through June 30, 2026. Net realized and unrealized losses of $5.7 million, primarily from mark-to-market volatility, reduced NAV to $7.74 per share from $8.07. Asset coverage improved to 161.8% from 158.1%. Liquidity remains strong with $10 million cash, $50 million revolver availability, and $4 million liquid assets. The company called or repurchased all $57.5 million GECCO notes due June 2026, eliminating near-term debt maturities until 2029. Management, led by new CEO Jason Reese, emphasized portfolio discipline with less than 1% nonaccrual investments, measured capital deployment, and diversification. The board declared a $0.25 per share dividend for Q2, yielding 18% annualized on May 1 closing price, and continued share repurchases under a $10 million program, buying 0.1 million shares at a 36% NAV discount, with $9.5 million capacity remaining. Reese's appointment as CEO, following his role as Executive Chairman, brings extensive credit experience from Imperial Capital and GECM ties, signaling enhanced oversight without additional compensation.