Great Elm Capital Group, Inc. Announces Financing In The Form Of A Preferred Equity Investment From Affiliate of JPMorgan Cha...
21 Dicembre 2020 - 10:01PM
Great Elm Capital Group, Inc. (NASDAQ: GEC, “Great Elm”) announced
today a financing transaction with J.P. Morgan Broker-Dealer
Holdings Inc. (“JPM”).
Highlights of the
Transaction
- JPM will provide $37.7 million of
financing
- Proceeds Will be Used to Refinance
Great Elm’s Durable Medical Equipment (“DME”) Business, and to
provide DME with Growth Capital
- Increases Cash at Holding Company
by $5.0 million
- Changes Name to Great Elm Group,
Inc. and completes internal reorganization as part of the
transaction
- New Ticker Symbol will be
“GEG”
- Transaction expected to be
completed by December 29, 2020
Management CommentaryPeter
Reed, Great Elm’s Chief Executive Officer, stated, “This financing
transaction with JPM enables the firm to accelerate the growth of
our existing businesses and at the same time, provides incremental
capital to acquire additional businesses. The transaction will
immediately lower the cost of capital for our DME business and
provide growth capital to take advantage of organic growth and
acquisition opportunities. Longer-term, our goal is to strengthen
the relationship with JPM and seek additional means of enhancing
shareholder value.”
Mr. Reed continued, “As part of this
transaction, we are creating a new parent company and executing a
ticker change which will distinguish Great Elm Group from our
affiliated publicly-traded BDC. Our rebranding underscores the
importance and opportunity associated with the
recapitalization.”
Details of the TransactionAs a
part of this transaction, Great Elm will create a new parent
company, Great Elm Group (NASDAQ: GEG), and formally change its
name and ticker symbol.
Existing GEC stockholders will have their shares
of GEC exchanged in a 1:1 ratio for shares of GEG. GEC shares are
expected to cease trading on the NASDAQ as of the close of the
stock market on December 28, 2020. Shares of GEG are expected to
begin trading prior to the opening of the stock market on December
29, 2020. As a result of this transaction, GEG will own 100% of the
capital stock of GEC, which will be renamed Forest Investments, Inc
(“Forest”).
Upon completion of this transaction, Forest will
issue to JPM $35.0 million of 9.0% preferred stock with a maturity
date of December 29, 2027. Forest will use the proceeds to
refinance DME’s existing term loan debt of approximately $24.8
million as well as put cash on DME’s balance sheet to fund future
growth and pay transaction related fees and expenses. DME will
distribute approximately $2.3 million to GEG.
Forest will then distribute to GEG its common
ownership of the DME business, its ownership of the Investment
Management business, its GECC shares and its cash. Forest will
retain ownership of the Real Estate business and a preferred
interest in the DME business.
JPM will purchase 20% of the common equity of
Forest from GEG for $2.7 million. Ultimately, Forest will be owned
80% by GEG and 20% by JPM.
Company to Host Conference Call &
WebcastGreat Elm will host a conference call and webcast
on Tuesday, December 29, 2020 at 8:30 a.m., Eastern Time, to
discuss the transaction in greater detail.
All interested parties are invited to
participate in the conference call by dialing +1 (844) 820-8297;
international callers should dial +1 (661) 378-9758. Participants
should enter the Conference ID 1064808 when asked.
For a copy of the slide presentation that will be referenced
during the course of our conference call, please
visit: https://www.greatelmcap.com/events-and-presentations/default.aspx or
email investorrelations@greatelmcap.com.
Additionally, the conference call will be
webcast simultaneously
at: https://edge.media-server.com/mmc/p/vrui7g6i.
About Great Elm Capital Group,
Inc.Great Elm Capital Group, Inc. (NASDAQ: GEC) is a
publicly-traded holding company that is building a business across
three operating verticals: investment management, real estate and
operating companies. Great Elm Capital Group, Inc.’s website can be
found at www.greatelmcap.com.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995Statements in this
press release that are “forward-looking” statements, including
statements regarding estimated cost synergies, involve risks and
uncertainties that may individually or collectively impact the
matters described herein. Investors are cautioned not to place
undue reliance on any such forward-looking statements, which speak
only as of the date they are made and represent Great Elm’s
assumptions and expectations in light of currently available
information. These statements involve risks, variables and
uncertainties, and Great Elm’s actual performance results may
differ from those projected, and any such differences may be
material. For information on certain factors that could cause
actual events or results to differ materially from Great Elm’s
expectations, please see Great Elm’s filings with the SEC,
including its most recent annual report on Form 10-K and subsequent
reports on Forms 10-Q and 8-K. Additional information relating to
Great Elm’s financial position and results of operations is also
contained in Great Elm’s annual and quarterly reports filed with
the SEC and available for download at its
website www.greatelmcap.com or at the SEC
website www.sec.gov.
Media & Investor
Contact:Great Elm Capital Group +1
617
375-3006 investorrelations@greatelmcap.comSource:
Great Elm Capital Group, Inc.
Grafico Azioni Great Elm Capital (NASDAQ:GEC)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Great Elm Capital (NASDAQ:GEC)
Storico
Da Mag 2023 a Mag 2024