|Over a quarter ago|
Great Elm Capital appoints Jason Reese, Eric Scheyer to board of directors » 07:4402/2702/27/20
Great Elm Capital Group…
Great Elm Capital Group announced that on February 26, 2020, it issued $30 million in aggregate principal of 5.00% convertible senior PIK notes, due 2030. Investors in the Notes include the Company's largest existing shareholders, funds managed by Imperial Capital Asset Management and Northern Right Capital Management LP, as well as specific members of a large alternative asset manager investing in their individual capacities. The Company also announced that Jason Reese, Chairman and Chief Executive Officer of Imperial, and Eric Scheyer, partner at Magnetar Capital, will join the Company's Board of Directors. Mr. Reese will join the Board as Executive Co-Chairman alongside Co-Chairman Jeffrey Serota. In connection with the new appointments to the Board, one of the Company's existing directors, H. Steven Wilson, has submitted his resignation, effective February 25, 2020. Interest on the Notes will be payable semiannually, in kind or in cash at the Company's option. The Notes may initially be converted at the investors' option at $3.4722 per share. The Company has the right to cause all of the outstanding Notes to be automatically converted into shares of the Company's common stock, subject to certain conditions. The Notes have substantially no restrictive covenants. Proceeds from the Notes may be used for general corporate purposes, including funding future acquisitions. The Company has made meaningful progress on its pipeline of acquisition opportunities that it continues to actively pursue.