8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 16, 2021

Great Elm Capital Corp.

(Exact name of Registrant as Specified in Its Charter)

Maryland	814-01211	81-2621577
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
800 South Street, Suite 230, Waltham, MA		02453
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (617) 375-3006

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	GECC	Nasdaq Global Market
6.50% Notes due 2022	GECCL	Nasdaq Global Market
6.75% Notes due 2025	GECCM	Nasdaq Global Market
6.50% Notes due 2024	GECCN	Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On March 16, 2021, Great Elm Capital Corp. issued the press release and published a presentation furnished as exhibits 99.1 and 99.2, respectively, to this report.

The foregoing information (including the exhibits hereto) are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are furnished with this report but shall not be deemed filed:

Exhibit Number	Description
99.1	Earnings Press Release, dated March 16, 2021.
99.2	Presentation, dated March 16, 2021.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GREAT ELM CAPITAL CORP.
Date:  March 16, 2021	/s/  Keri A. Davis
	By:	Keri A. Davis
	Title:	Chief Financial Officer

EX-99.1

Exhibit 99.1

Great Elm Capital Corp. Announces Fourth Quarter 2020 Financial Results HIGHLIGHTED BY NET INVESTMENT INCOME of $0.07 per share

Company to Host Quarterly Conference Call at 11:00 AM ET Today

WALTHAM, MA, March 16, 2021 – Great Elm Capital Corp. (“we,” “us,” “our,” or “GECC,”) (NASDAQ: GECC), a business development company, today announced its financial results for the fourth quarter and year ended December 31, 2020.

Financial Highlights

▪ Net investment income (“NII”) for the quarter was $1.6 million, as compared to NII of $1.9 million for the quarter ended September 30, 2020. NII was impacted by slower than anticipated deployment of capital following the completion of GECC’s rights offering, repayments and higher than anticipated legal expenses.

▪ NII per share was $0.07 based on weighted average shares outstanding of 22,249,283, as compared to NII per share of $0.18, based on weighted average shares outstanding of 10,660,894, for the quarter ended September 30, 2020.

▪ On October 1, 2020, we successfully completed a non-transferable rights offering which entitled holders of rights to purchase one new share of common stock for each right held at a subscription price of $2.95 per share. In total, we sold 10,761,950 shares of our common stock for aggregate gross proceeds of approximately $31.7 million.

▪ As of December 31, 2020, GECC’s asset coverage ratio was approximately 167.1%, up from 150.9% as of September 30, 2020, 144.5% as of June 30, 2020 and 141.1% as of March 31, 2020. GECC’s minimum asset coverage ratio is 150.0%.

▪ Net assets grew to approximately $79.6 million on December 31, 2020, as compared to net assets of $60.5 million at September 30, 2020, $53.2 million at June 30, 2020 and $50.8 million at March 31, 2020.

▪ NAV per share was $3.46 on December 31, 2020, compared to $5.53 at September 30, 2020.  The decline from the prior quarter includes the effect of dilution of $1.35 per share from the rights offering and $0.06 per share from stock distributions in the fourth quarter of 2020.

▪ For the year ended December 31, 2020, we repurchased $5.3 million in aggregate principal of our senior notes at a weighted average price of $19.16 per note.

Management Commentary

Peter A. Reed, GECC’s Chief Executive Officer, stated, “Our fourth quarter income decline was the result of cash drag from higher cash balances than we had planned, greater than anticipated legal expenses, and unrealized losses from legacy investments. Our position in Avanti was the largest of our unrealized losses in the quarter, as uncertainty of the status of its refinancing and delayed new business significantly impacted its valuation. While these results are a disappointing way to end the year, we ended the quarter with a strong and liquid balance sheet and with continued momentum in our effort to invest more in specialty finance. Finally, after year end, Avanti successfully extended the maturity of its first lien debt. We have much work to do but are positioned to have a better year in 2021.”

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Portfolio and Investment Activity

As of December 31, 2020, we held 31 debt investments, totaling approximately $108.2 million and representing 71.3% of the fair market value of our total investments. First lien and/or secured debt investments comprised a substantial majority of the fair market value of our debt investments.

As of the same date, we held 10 equity investments, totaling approximately $43.5 million and representing 28.7% of the fair market value of our total investments. Three of the 10 equity investments, totaling approximately $27.4 million of fair value as of December 31, 2020, are income-generating equity investments.

As of December 31, 2020, the weighted average current yield on our debt portfolio was 11.7%. Floating rate instruments comprised approximately 54.2% of the fair market value of debt investments.

During the quarter ended December 31, 2020, we deployed approximately $35.3 million into new investments⁽¹⁾, at a weighted average current yield of 10.9%. The weighted average price of the debt deployment activity was 94% of par.

During the quarter ended December 31, 2020, we monetized, in part or in full, 22 investments for approximately $43.8⁽²⁾ million, at a weighted average current yield of 8.8%. The weighted average realized price was 100% of par.

Financial Review

Total investment income for the quarter ended December 31, 2020 was approximately $5.7 million, or $0.26 per share. Total expenses for the quarter ended December 31, 2020 were approximately $4.1 million, or $0.18 per share.

Net realized gains for the quarter ended December 31, 2020 were approximately $0.8 million, or $0.03 per share. Net unrealized depreciation from investments for the quarter ended December 31, 2020 was approximately $12.1 million, or $0.54 per share.

Liquidity and Capital Resources

As of December 31, 2020, our cash balance was approximately $52.6 million, exclusive of holdings of United States Treasury Bills and restricted cash. Total debt outstanding as of December 31, 2020 was $118.7 million, comprised of our 6.50% senior notes due September 2022 (NASDAQ: GECCL), our 6.50% senior notes due June 2024 (NASDAQ: GECCN) and our 6.75% senior notes due January 2025 (NASDAQ: GECCM). During the year ended December 31, 2020, we repurchased $5.3 million in aggregate principal of our senior notes at a weighted average price of $19.16 per note.

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Distributions

We also announced this morning that our board of directors set a $0.10 per share cash distribution for the quarter ending June 30, 2021.

The record and payment dates for the distribution are expected to be set by GECC in the second quarter pursuant to authority granted by its board of directors.

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Conference Call and Webcast

GECC will discuss these results in a conference call later this morning (Tuesday, March 16, 2021) at 11:00 a.m. ET.

Conference Call Details

Date/Time:Tuesday, March 16, 2021 – 11:00 a.m. ET

Participant Dial-In Numbers:

(United States):844-820-8297

(International):661-378-9758

To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode "GECC." An accompanying slide presentation will be available in .pdf format via the “Investor Relations” section of Great Elm Capital Corp.’s website at http://www.investor.greatelmcc.com/events-and-presentations/presentationsafter the issuance of the earnings release.

Webcast

The call and presentation will also be simultaneously webcast over the Internet via the Investor Relations section of GECC’s website or by clicking on the conference call link: Great Elm Capital Corp (GECC) Q4 2020 Conference Call Webcast.

About Great Elm Capital Corp.

Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC seeks to generate attractive, risk-adjusted returns through both current income and capital appreciation.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

This press release does not constitute an offer of any securities for sale.

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Endnotes:

⁽¹⁾ This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.

⁽²⁾ This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.

Media & Investor Contact:

Investor Relations

+1 (617) 375-3006

investorrelations@greatelmcap.com

Adam Prior

The Equity Group Inc.

+1 (212) 836-9606

aprior@equityny.com

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GREAT ELM CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)

Dollar amounts in thousands (except per share amounts)

	December 31, 2020	December 31, 2019
Assets
Investments
Non-affiliated, non-controlled investments, at fair value    (amortized cost of $147,494 and $168,269, respectively)	$           112,116	$            147,412
Non-affiliated, non-controlled short-term investments, at fair value    (amortized cost of $74,997 and $85,733, respectively)	74,998	85,733
Affiliated investments, at fair value    (amortized cost of $109,840 and $102,704, respectively)	29,289	40,608
Controlled investments, at fair value    (amortized cost of $7,630 and $10,601, respectively)	10,243	9,595
Total investments	226,646	283,348
Cash and cash equivalents	52,582	4,606
Restricted cash	600	-
Interest receivable	2,423	2,350
Dividends receivable	-	14
Due from portfolio company	837	617
Due from affiliates	-	15
Prepaid expenses and other assets	240	89
Total assets	$           283,328	$            291,039
Liabilities
Notes payable 6.50% due September 18, 2022 (including unamortized discount    of $494 and $839, respectively)	$             29,799	$             31,792
Notes payable 6.75% due January 31, 2025 (including unamortized discount    of $1,042 and $1,321, respectively)	44,568	45,078
Notes payable 6.50% due June 30, 2024 (including unamortized discount    of $1,529 and $2,058, respectively)	41,294	42,942
Payable for investments purchased	75,511	72,749
Interest payable	328	354
Distributions payable	1,911	1,338
Accrued incentive fees payable	9,176	8,157
Due to affiliates	764	997
Accrued expenses and other liabilities	362	743
Total liabilities	$           203,713	$            204,150
Commitments and contingencies	$                      -	$                      -
Net Assets
Common stock, par value $0.01 per share (100,000,000 shares authorized,    23,029,453 shares issued and outstanding and 10,062,682 shares issued and    outstanding, respectively)	$                 230	$                  101
Additional paid-in capital	230,504	193,114
Accumulated losses	(151,119)	(106,326)
Total net assets	$             79,615	$             86,889
Total liabilities and net assets	$           283,328	$            291,039
Net asset value per share	$                 3.46	$                 8.63

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GREAT ELM CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

Dollar amounts in thousands (except per share amounts)

	For the Three Months Ended December 31,					For the Year Ended December 31,
	2020			2019		2020		2019
Investment Income:
Interest income from:
Non-affiliated, non-controlled investments	$	2,940		$	5,088	$	12,740	$	17,087
Non-affiliated, non-controlled investments (PIK)		22			-		22		-
Affiliated investments		265			231		981		858
Affiliated investments (PIK)		1,376			1,219		5,218		4,158
Controlled investments		61			76		249		1,411
Controlled investments (PIK)		-			-		-		684
Total interest income		4,664			6,614		19,210		24,198
Dividend income from:
Non-affiliated, non-controlled investments		463			63		867		470
Controlled investments		480			320		2,240		1,600
Total dividend income		943			383		3,107		2,070
Other income from:
Non-affiliated, non-controlled investments		(226	)		5		125		142
Non-affiliated, non-controlled investments (PIK)		368			-		368		-
Affiliated investments		-			-		-		2
Affiliated investments (PIK)		-			1		75		565
Controlled investments		-			9		12		61
Total other income		142			15		580		770
Total investment income	$	5,749		$	7,012	$	22,897	$	27,038
Expenses:
Management fees	$	613		$	746	$	2,511	$	2,953
Incentive fees		210			636		1,020		2,735
Administration fees		182			253		729		987
Custody fees		(8	)		12		51		57
Directors’ fees		47			50		198		200
Professional services		647			122		1,441		833
Interest expense		2,206			2,303		9,126		7,636
Other expenses		187			142		655		491
Total expenses	$	4,084		$	4,264	$	15,731	$	15,892
Net investment income before taxes	$	1,665		$	2,748	$	7,166	$	11,146
Excise tax	$	17		$	209	$	17	$	209
Net investment income	$	1,648		$	2,539	$	7,149	$	10,937

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Net realized and unrealized gains (losses):
Net realized gain (loss) on investment transactions from:
Non-affiliated, non-controlled investments	$	2,156		$	31		$	(9,604	)	$	1,146
Controlled investments		(1,382	)		-			(1,382)			154
Repurchase of debt		-			-			1,237			-
Total net realized gain (loss)		774			31			(9,749	)		1,300
Net change in unrealized appreciation (depreciation) on investment transactions from:
Non-affiliated, non-controlled investments		(821	)		(3,959	)		(14,520	)		(11,316	)
Affiliated investments		(12,659	)		(241	)		(18,455	)		(7,907	)
Controlled investments		1,425			39			3,619			(561	)
Total net change in unrealized appreciation (depreciation)		(12,055	)		(4,161	)		(29,356	)		(19,784	)
Net realized and unrealized gains (losses)	$	(11,281	)	$	(4,130	)	$	(39,105	)	$	(18,484	)
Net increase (decrease) in net assets resulting from operations	$	(9,633	)	$	(1,591	)	$	(31,956	)	$	(7,547	)
Net investment income per share (basic and diluted):	$	0.07		$	0.25		$	0.54		$	1.07
Earnings per share (basic and diluted):	$	(0.43	)	$	(0.16	)	$	(2.40	)	$	(0.74	)
Weighted average shares outstanding (basic and diluted):		22,249,283			10,062,682			13,309,463			10,249,578

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EX-99.2

Exhibit 99.2

Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential,” “preliminary” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. You should consider the investment objective, risks, charges and expenses of GECC carefully before investing. GECC’s filings with the SEC contain this and other information about GECC and are available by contacting GECC at the phone number and address at the end of this presentation. The SEC also maintains a website that contains the aforementioned documents. The address of the SEC’s website is http://www.sec.gov. These documents should be read and considered carefully before investing.   The performance, distributions and financial data contained herein represent past performance, distributions and results and neither guarantees nor is indicative of future performance, distributions or results. Investment return and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than the original cost. GECC’s market price and net asset value will fluctuate with market conditions. Current performance may be lower or higher than the performance data quoted. All information and data, including portfolio holdings and performance characteristics, is as of December 31, 2020, unless otherwise noted, and is subject to change. This presentation does not constitute an offer of any securities for sale. Forward Looking Statement

About GECC Great Elm Capital Corporation Investment Objective Investment Strategy Externally managed, total-return-focused BDC Liquid balance sheet Directors of GECC, employees of GECM and officers and directors of GECM’s parent, including investment funds managed by directors of GECM’s parent, own approximately 42.5% of GECC’s outstanding shares. To generate both current income and capital appreciation, while seeking to protect against the risk of capital loss To apply the key principles of value investing to the capital structures of middle-market companies and to acquire majority stakes in income-generating specialty finance businesses Portfolio (as of 12/31/2020) $283.3 million of total assets; $151.7 million of portfolio fair value; $79.6 million of net asset value Debt investments carry a weighted average current yield of 11.7%1 41 investments (31 debt, 10 equity) in 32 companies across 22 industries (1) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date.

Rights Offering: Provides Ample Liquidity to Pursue New Investments In October 2020, the Company successfully completed a non-transferable rights offering which entitled holders of rights to purchase one new share of common stock for each right held at a subscription price of $2.95 per share. In total, the Company sold 10,761,950 shares of its common stock for aggregate gross proceeds of approximately $31.7 million. RATIONALE FOR DECISION TO PURSUE RIGHTS OFFERING

Fourth Quarter 2020 Overview: Capital Deployment and Monetization During Q4 2020, monetized $43.8 million across 22 investments, in whole or in part, at a weighted average current yield of 8.8% and a weighted average price of $1.00 This includes the complete exit of 12 positions during the quarter During Q4 2020, deployed $35.3 million into 21 investments at a weighted average current yield of 10.88% and a weighted average price of $0.94 Capital deployed into both secured and unsecured investments GECCL 6.50% Notes due September 2022 GECCN 6.50% Notes due June 2024 GECCM 6.75% Notes due January 2025 Attractive Fixed Rate Debt Deployment of Capital Monetization of Investments

2020: Repositioning and Recapitalization Update In 2020, we monetized over $129.2 million, while redeploying $117.3 million into cash-generative investment opportunities that diversify our holdings Intend to more heavily weight investments in specialty finance businesses, like Prestige Capital Finance, LLC (“Prestige”), whose performance has exceeded internal expectations Examine Investments In Light of Changing Macro-economic Environment Following COVID-19 Evaluation Divest Certain Legacy Holdings to Monetize and Reposition Portfolio Repositioning Establish New Positions in Cash-Generating Investments (e.g. Specialty Finance) Proactive Redeployment Completed Strategic Rights Offering in October 2020 Recapitalization

Fourth Quarter 2020: Net Investment Income (“NII”) Analysis NII for the quarter ended December 31, 2020 was approximately $1.6 million, or $0.07 per share*, as compared to NII of $1.9 million or $0.18 per share for the quarter ended September 30, 2020 NII was impacted by slower than anticipated deployment of capital following the completion of the Company’s rights offering, repayments and higher than anticipated legal expenses. During the quarter ended June 30, 2020, we began repositioning the portfolio, including taking actions to create liquidity that had the effect of depressing net investment income (“NII”) Specifically, as the impact of COVID-19 increased volatility in the leveraged credit secondary markets, we monetized investments in anticipation of more attractive redeployment opportunities $ in $000s * Based on weighted average shares outstanding of 22,249,283 for the quarter ended December 31, 2020, and 10,660,894 for the quarter ended September 30, 2020.

Initial date of investment Quarterly net change in realized and unrealized depreciation on investments Name 11/3/2016 11/3/2016 11/3/2016 7/21/2017 ($12.6 Million) ($1.6 Million) ($1.7 Million) ($3.3 Million) Avanti Communications Group plc Davidzon Radio, Inc. Best Western Luling TRU (UK) Asia Limited Fourth quarter 2020 NAV impacted by legacy investments Net realized and unrealized losses of $11.3 million for the fourth quarter of 2020, largely due to write-downs on legacy investments Impact of Legacy Investments on NAV

Initial date of investment Quarterly net change in realized and unrealized appreciation on investments Name 6/19/2020 3/28/2019 11/20/2020 1/29/2019 $3.4 Million $1.5 Million $1.4 Million $0.5 Million Crestwood Equity Partners Aptim Corp. Tensar Corp. Research Now Group, Inc. Newer Investments Continue Solid Performance Legacy investment write-downs were offset by strong performance in such investments as Crestwood Equity, Aptim, Tensar, and Research Now Group

Investment Activity: New Investments (October 1, 2020* – March 12, 2021) Throughout 4Q20 and subsequent to quarter end, we actively deployed approximately $35.3 million of available cash into new investments at a weighted average current yield of 10.88% $ in $000s (1) Investment activity includes activity in Q4 2020 and the subsequent period through and including March 12, 2021. Investment activity does not include revolver draws or PIK interest. (2) Viasat, Inc. receivable was fully repaid in January 2021.    (3) Weighted average current yield is based upon the stated coupon rate and fair value of outstanding investments as of the most recent measurement date or date of purchase, as applicable. These figures do not include Special Purpose Acquisition Companies and Viasat, Inc. receivables.

On February 8, 2019, GECC acquired 80.0% of the outstanding equity interests of Prestige for approximately $7.5 million Prestige is a leading provider of “spot factoring” services, providing clients with an opportunity to sell individual accounts receivable for an upfront payment Specialty Finance Investments: Prestige Capital Finance, LLC Over 30 years in business and through $6+ billion of transactions factored, Prestige has a track record of strong credit underwriting with minimal losses

Prestige is a highly profitable company Prestige’s pretax income in 2020 increased to approximately $4 million on a preliminary, unaudited basis. This represented significant growth over the $2.8 million from 2019. 2020 fourth quarter clients include companies that manufacturer and packages frozen treats for well-known food and beverage companies, a reverse logistics company that specializes in managing excess inventory on behalf of its retail clients, and a company that focuses on the manufacturing and assembly of corrugated retail displays GECC can participate in Prestige’s larger factoring transactions directly 3 completed in 2020 at a rate of 13% per annum Despite not acquiring Prestige until February 2019, GECC received $1.6 million in distributions from Prestige throughout 2019, representing an approximate 24% annualized yield on its investment In 2020, GECC received $2.2 million in distributions, representing an approximate 30% annualized yield on its investment Prestige Capital Finance, LLC – Year End 2020 Update “Overflow” opportunities that would allow GECC to participate in certain of Prestige’s larger factoring transactions directly Significant Mutual Benefits Greater access to capital allows Prestige to increase the size of the transactions it can pursue, which may further enhance its growth Rates of return may be higher than traditional leveraged credit investments Proprietary to GECC and unique to portfolio

Portfolio Review (Quarter Ended 12/31/2020)

Portfolio Review: Quarter End Portfolio Detail 31 Debt Investments $108.2 million Fair Value of Debt Investments 83.0% Weighted Average Dollar Price of Debt Investments 11.7%1 Weighted Average Current Yield of Debt Investments 71.3% Of Invested Capital in Debt Investments 10 Equity Investments $43.5 million Fair Value of Equity Investments Debt Investments: Equity Investments: 28.7% Of Invested Capital in Equity Investments (1) Weighted average current yield is based upon the anticipated distribution rate and fair value of outstanding investments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. 15.3%1 Weighted Average Current Yield of Income-Generating Equity Investments Three of the 10 equity investments, totaling approximately $27.4 million of fair value as of December 31, 2020, are income-generating equity investments.

Portfolio by Asset Type ($MM) Portfolio by Interest Rate Type ($MM) Weighted average fixed rate yield of 14.7%1 Weighted average floating rate yield of 9.4%1 (1) Weighted average fixed and floating rate current yield is based upon the stated coupon rate and fair value of outstanding debt instruments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. Portfolio Review: Quarter End Asset Type and Interest Rate Type

Portfolio Review: Quarter End Industry Breakdown Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. $ in $000s

Portfolio Review: Quarterly Investment Activity (1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and PIK interest. Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. (2) Weighted average current yield metrics specifically refer to the applicable investment activity in the respective period. (3) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein are exclusive of investments in short-term securities, including United States Treasury Bills. Weighted average dollar price is based upon the stated par value and fair value of outstanding debt securities at the measurement date. Weighted average current yield is based upon the stated coupon rate and fair value of outstanding debt securities at the measurement date. New Investments vs. Monetized Investments

Financial Review (Quarter Ended 12/31/2020)

Financial Review: Per Share Data (1) The per share figures are based on a weighted average outstanding share count for the respective period. Financial Highlights – Per Share Data

Financial Review: Quarterly Operating Results (1) The per share figures are based on a weighted average of the shares outstanding for the preceding quarter, except where such amounts need to be adjusted to be consistent with the financial highlights of our consolidated financial statements. (2) Total investment income includes PIK income and net accretion of OID and market discount. (3) Incentive fees include the reversal of certain accrued incentive fees.

Financial Review: Portfolio Total Fair Value of Investments does not include investments in short-term securities, including United States Treasury Bills. Cash does not include our holdings in United States Treasury Bills or Restricted Cash. Financial Highlights - Portfolio

Summary

Capital Activity: Declared Quarterly Cash Distribution Distributions GECC’s Board previously announced its distribution for the quarter ending March 31, 2021 of $0.10 per share These distributions will be paid in cash to shareholders of record as of March 15, 2021 on March 31, 2021 The Board set the distribution for the quarter ending June 30, 2021 at $0.10 per share, with the record and payment dates to be set by GECC pursuant to authority granted by the Board On an annualized basis, this currently represents an indicated yield of 11.5%* on NAV and a 11.0% yield on the March 12, 2021 closing price of $3.63. (* Based on an annualized $0.10 per share total / Net Asset Value of $79.6 million, or $3.46 share)

Investment Takeaways Recent portfolio repositioning and capital decisions have GECC well-positioned to take advantage of market dislocation and grow NII Intend to weight investments in specialty finance businesses in future portfolio Significant cash balance strengthened by rights offering A diversified portfolio, primarily comprised of secured loans, secured bonds and investments in specialty finance businesses uncorrelated to the corporate credit portfolio Debt investments carry a weighted average current yield of 11.7%1 Weighted average current yield of income-generating equity investments carry a weighted average current yield of 15.3%1,2 Liquid Balance Sheet Portfolio Repositioning: Continuing Distributions Cash distribution of $0.10 set for second quarter of 2021 Since the Company’s initial distribution in December 2016, $4.84 in total distributions paid, declared or set (in cash or stock) (1) Weighted average current yield is based upon the anticipated distribution rate and fair value of outstanding investments at the measurement date. Amounts in the above tables do not include investments in short-term securities, including United States Treasury Bills. (2) Three of the 10 equity investments, totaling approximately $27.4 million of fair value as of December 31, 2020, are income-generating equity investments: Prestige Capital Finance, LLC, Blueknight Energy Partners L.P, and Crestwood Equity Partners, LP.

Appendix Financial Statements Balance Sheet General Risks Contact Information

Consolidated Statements of Operations (unaudited) $ in $000s (except per share amounts)

Consolidated Statements of Assets and Liabilities (unaudited) $ in $000s (except per share amounts)

Appendix: General Risks Debt instruments are subject to credit and interest rate risks.   Credit risk refers to the likelihood that an obligor will default in the payment of principal or interest on an instrument. Financial strength and solvency of an obligor are the primary factors influencing credit risk. In addition, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk. Credit risk may change over the life of an instrument, and debt instruments that are rated by rating agencies are often reviewed and may be subject to downgrade. Our debt investments either are, or if rated would be, rated below investment grade by independent rating agencies. These “junk bonds” and “leveraged loans” are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay interest and repay principal. They may be illiquid and difficult to value and typically do not require repayment of principal before maturity, which potentially heightens the risk that we may lose all or part of our investment.   Interest rate risk refers to the risks associated with market changes in interest rates. Interest rate changes may affect the value of a debt instrument indirectly (especially in the case of fixed rate obligations) or directly (especially in the case of an instrument whose rates are adjustable). In general, rising interest rates will negatively impact the price of a fixed rate debt instrument and falling interest rates will have a positive effect on price. Adjustable rate instruments also react to interest rate changes in a similar manner although generally to a lesser degree (depending, however, on the characteristics of the reset terms, including the index chosen, frequency of reset and reset caps or floors, among other factors).   GECC utilizes leverage to seek to enhance the yield and net asset value of its common stock. These objectives will not necessarily be achieved in all interest rate environments. The use of leverage involves risk, including the potential for higher volatility and greater declines of GECC’s net asset value, fluctuations of dividends and other distributions paid by GECC and the market price of GECC’s common stock, among others. The amount of leverage that GECC may employ at any particular time will depend on, among other things, our Board’s and our adviser’s assessment of market and other factors at the time of any proposed borrowing.   As part of our lending activities, we may purchase notes or make loans to companies that are experiencing significant financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings. Although the terms of such financings may result in significant financial returns to us, they involve a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies experiencing significant business and financial difficulties is unusually high. We cannot assure you that we will correctly evaluate the value of the assets collateralizing our investments or the prospects for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to a portfolio company, we may lose all or part of the amounts advanced to the borrower or may be required to accept collateral with a value less than the amount of the investment advanced by us to the borrower.

Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 Phone: +1 (617) 375-3006 investorrelations@greatelmcap.com Adam Prior The Equity Group Inc. +1 (212) 836-9606 aprior@equityny.com Contact Information