Great Elm Capital (US:GECC)2020-08-10 13:29Portfolio Repositioning and Investment Strategy - Great Elm Capital Corp(GECC) began repositioning its portfolio during the quarter ended June 30, 2020, to maximize shareholder value[6] - GECC intends to weight investments in specialty finance businesses more significantly in its future portfolio, like Prestige Capital Finance, LLC[6] - As of June 30, 2020, GECC's portfolio fair value was $1463 million, with debt investments carrying a weighted average current yield of 102%[24] - Throughout Q2 2020 and subsequent to quarter end, GECC actively deployed approximately $255 million into eight new investments at a weighted average current yield of 127%[13] Financial Performance - Net Investment Income(NII) for the quarter ended June 30, 2020, was approximately $09 million, or $009 per share, compared to $27 million, or $026 per share, for the quarter ended March 31, 2020[6] - During Q2 2020, GECC monetized $375 million across 17 investments at a weighted average current yield of 65% and a weighted average price of $098[28] - In 2019, Prestige's pretax income was approximately $28 million on average book equity of $31 million[18] - Through the first half of 2020, Prestige's pretax income was approximately $15 million on average book equity of $33 million[18] Capital Activity and Distributions - GECC's Board set monthly distributions of $0083 per share for the third and fourth quarters of 2020, with approximately 90% to be paid in shares of common stock[56, 57] - As of June 30, 2020, GECC's asset coverage ratio was approximately 1445%, up from 1411% as of March 31, 2020[53]