Overview

* GECC Q3 NAV declines from $12.10 to $10.01 per share due to First Brands bankruptcy

* Company announces $10 mln share repurchase authorization, strengthening shareholder returns

* Net investment income lower due to uneven CLO JV distributions and refinancing costs

Outlook

* Company expects NII to recover in Q4 with increased CLO JV distributions

* Company has ample liquidity and plans to deploy capital into cash-generating investments

Result Drivers

* FIRST BRANDS LOSSES - NAV decline primarily driven by losses on First Brands investments

* CLO JV DISTRIBUTIONS - NII lower due to uneven CLO JV distributions and lack of preference share dividend

* DEBT REFINANCING - Refinancing of high-cost debt expected to lower future borrowing costs

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS -$1.79

Q3 Net $10.01

Asset

Value

Per

Share

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the closed end funds peer group is "hold"

* Wall Street's median 12-month price target for Great Elm Capital Corp ( GECC ) is $10.00, about 25.2% above its November 3 closing price of $7.48

* The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)