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v3.26.1

Debt | 6 Months Ended
--- | ---
Jun. 30, 2026
Debt Disclosure [Abstract] |
Debt | 5. DEBT Revolver On May 5, 2021, the Company entered into a Loan, Guarantee and Security Agreement (the “Loan Agreement”) with City National Bank (“CNB”). The Loan Agreement provides for a senior secured revolving line of credit of up to $25 million (subject to a borrowing base as defined in the Loan Agreement). The Company may request to increase the revolving line in an aggregate amount not to exceed $25 million, which increase is subject to the sole discretion of CNB. On November 22, 2023, the Company amended the Loan Agreement to extend the maturity date of the revolving line from May 5, 2024 to May 5, 2027. The Company is required to pay a commitment fee of 0.50% per annum on any unused portion of the revolving line of credit when less than $25 million is drawn; if borrowings are $25 million or more on the facility, the commitment fee decreases to 0.25% per annum on any unused portion of the revolving line of credit. On August 13, 2025, the Company amended the Loan Agreement to increase the commitment of the revolving line of credit to up to $50 million (subject to a borrowing base as defined in the Loan Agreement). The amendment also allows the Company to request an increase of the Revolving Facility in an aggregate amount not to exceed $40 million (up to a revolving line of $90 million), which increase is subject to the sole discretion of CNB and updates the maturity date of the revolving line to the earlier of (i) May 5, 2027 and (ii) May 31, 2026 if the Company’s 5.875% notes due 2026 have not been refinanced prior to such date. In addition, the amendment provides that borrowings under the Revolving Facility shall bear interest at a rate equal to (i) at all times when a minimum deposit test is met (a) SOFR plus 2.50% or (b) a base rate plus 1.50% and (ii) at all times when a minimum deposit test is not met (a) SOFR plus 3.50% or (b) a base rate plus 2.50%. The amendment also amended the financial covenant of minimum net assets requirement to be of not less than $80 million. On June 8, 2026, the Company amended the Loan Agreement to extend the maturity date of the Revolving Facility to the earlier of (i) June 8, 2029, and (ii) March 31, 2029 if the Company’s 8.50% notes due 2029 have not been refinanced on or prior to such date. As of June 30, 2026, there were $11.0 million in borrowings outstanding under the revolving line. Borrowings under the revolving line are secured by a first priority security interest in substantially all of the Company’s assets, subject to certain specified exceptions. The Company has made customary representations and warranties and is required to comply with various affirmative and negative covenants, reporting requirements and other customary requirements for similar loan agreements. In addition, the Loan Agreement contains financial covenants requiring (i) net assets of not less than $80 million, (ii) asset coverage equal to or greater than 150% and (iii) bank asset coverage equal to or greater than 300%, in each case tested as of the last day of each fiscal quarter of the Company. Borrowings are also subject to the leverage restrictions contained in the Investment Company Act of 1940, as amended. Unsecured Notes On June 23, 2021, the Company issued $50.0 million in aggregate principal amount of 5.875% notes due 2026 (the “GECCO Notes”). On July 9, 2021, the Company issued an additional $7.5 million of the GECCO Notes upon full exercise of the underwriters’ over-allotment option. In December 2025, the Company repurchased $18.5 million of the outstanding principal on the GECCO Notes. During the three months ended March 31, 2026, the Company repurchased $0.4 million of the outstanding principal on the GECCO Notes. On March 31, 2026, the Company redeemed $20.0 million of outstanding GECCO Notes at 100% of the principal amount. O n May 27, 2026, we redeemed the remaining $18.6 million of outstanding GECCO Notes in full. On August 16, 2023, the Company issued $40.0 million in aggregate principal amount of 8.75% notes due 2028 (the “GECCZ Notes”). On August 29, 2025, we caused redemption notices to be issued to the holders of the GECCZ Notes regarding the Company's exercise of its option to redeem $40.0 million aggregate principal amount of the issued and outstanding GECCZ Notes. We redeemed all of the issued and outstanding GECCZ Notes on September 30, 2025 at 100% of the principal amount plus accrued and unpaid interest thereon from July 1, 2025 through, but excluding, the redemption date, September 30, 2025. On April 17, 2024, the Company issued $30.0 million in aggregate principal amount of 8.50% notes due 2029 (the “GECCI Notes”). On April 25, 2024, the Company issued an additional $4.5 million of the GECCI Notes upon full exercise of the underwriters’ over-allotment option. On July 9, 2024, we issued an additional $22.0 million in aggregate principal amount of the GECCI Notes in a direct placeme nt. On July 20, 2026, the Company caused a notice to be issued to the holders of the GECCI Notes regarding the Company’s exercise of its option to redeem $6.5 million aggregate principal amount of the issued and outstanding GECCI Notes on August 19, 2026. On September 19, 2024, the Company issued $36.0 million in aggregate principal amount of 8.125% notes due 2029 (the “GECCH Notes”). On October 3, 2024, the Company issued an additional $5.4 million of the GECCH Notes upon full exercise of the underwriters' over-allotment option. On September 11, 2025, the Company issued $50.0 million in aggregate principal amount of 7.75% notes due 2030 (the “GECCG Notes”). On October 2, 2025, we issued an additional $7.5 million of the GECCG Notes upon partial exercise of the underwriters’ over-allotment option. The Notes are our unsecured obligations and rank equal with all of our outstanding and future unsecured unsubordinated indebtedness. The unsecured notes are effectively subordinated, or junior in right of payment, to indebtedness under our Loan Agreement and any other future secured indebtedness that the Company may incur to the extent of the value of the assets securing such indebtedness and structurally subordinated to all future indebtedness and other obligations of our subsidiaries. The Company pays interest on the unsecured notes on March 31, June 30, September 30 and December 31 of each year. The GECCI Notes, GECCH Notes and GECCG Notes will mature on April 30, 2029, December 31, 2029 and December 31, 2030, respectively. The GECCI Notes are currently callable at the Company’s option and the GECCH Notes and GECCG Notes can be called on or after December 31, 2026 and December 31, 2027, respectively. Holders of the unsecured notes do not have the option to have the unsecured notes repaid prior to the stated maturity date. The unsecured notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof. As part of the offerings, the Company incurred fees and costs, which are treated as a reduction of the carrying amount of the debt on the Company’s Statements of Assets and Liabilities. These deferred financing costs presented as a reduction to the Notes payable balance are being amortized into interest expense over the term of the Notes. The Company may repurchase the Notes in accordance with the Investment Company Act and the rules promulgated thereunder. Information about the Company’s senior securities (including debt securities and other indebtedness) is shown in the following table:
As of |  | Total Amount Outstanding(1) |  |  | Asset Coverage Ratio Per Unit(2) |  |  | Involuntary Liquidation Preference Per Unit(3) |  | Average Market Value Per Unit(4) |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |
8.25% Notes due 2020 |  | $ | 33,646 |  |  | $ | 6,168 |  |  | N/A |  | $ | 1.02 |
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |
6.50% Notes due 2022 (“GECCL Notes”) |  | $ | 32,631 |  |  | $ | 5,010 |  |  | N/A |  | $ | 1.02 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |
GECCL Notes |  | $ | 32,631 |  |  | $ | 2,393 |  |  | N/A |  | $ | 1.01 |
6.75% Notes due 2025 (“GECCM Notes”) |  |  | 46,398 |  |  |  | 2,393 |  |  | N/A |  |  | 0.98 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
GECCL Notes |  | $ | 32,631 |  |  | $ | 1,701 |  |  | N/A |  | $ | 1.01 |
GECCM Notes |  |  | 46,398 |  |  |  | 1,701 |  |  | N/A |  |  | 1.01 |
6.50% Notes due 2024 (“GECCN Notes”) |  |  | 45,000 |  |  |  | 1,701 |  |  | N/A |  |  | 1.00 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
GECCL Notes |  | $ | 30,293 |  |  | $ | 1,671 |  |  | N/A |  | $ | 0.89 |
GECCM Notes |  |  | 45,610 |  |  |  | 1,671 |  |  | N/A |  |  | 0.84 |
GECCN Notes |  |  | 42,823 |  |  |  | 1,671 |  |  | N/A |  |  | 0.84 |
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
GECCM Notes |  | $ | 45,610 |  |  | $ | 1,511 |  |  | N/A |  | $ | 1.00 |
GECCN Notes |  |  | 42,823 |  |  |  | 1,511 |  |  | N/A |  |  | 1.00 |
GECCO Notes |  |  | 57,500 |  |  |  | 1,511 |  |  | N/A |  |  | 1.02 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
GECCM Notes |  | $ | 45,610 |  |  | $ | 1,544 |  |  | N/A |  | $ | 0.99 |
GECCN Notes |  |  | 42,823 |  |  |  | 1,544 |  |  | N/A |  |  | 1.00 |
GECCO Notes |  |  | 57,500 |  |  |  | 1,544 |  |  | N/A |  |  | 1.00 |
Revolving Credit Facility |  |  | 10,000 |  |  |  | 1,544 |  |  | N/A |  |  | - |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
GECCM Notes |  | $ | 45,610 |  |  | $ | 1,690 |  |  | N/A |  | $ | 0.99 |
GECCO Notes |  |  | 57,500 |  |  |  | 1,690 |  |  | N/A |  |  | 0.96 |
GECCZ Notes |  |  | 40,000 |  |  |  | 1,690 |  |  | N/A |  |  | 0.99 |
Revolving Credit Facility |  |  | - |  |  |  | 1,690 |  |  | N/A |  |  | - |
December 31, 2024 |  |  |  |  |  |  |  |  |  |  |
GECCO Notes |  | $ | 57,500 |  |  | $ | 1,697 |  |  | N/A |  | $ | 0.99 |
GECCZ Notes |  |  | 40,000 |  |  |  | 1,697 |  |  | N/A |  |  | 1.01 |
GECCI Notes |  |  | 56,500 |  |  |  | 1,697 |  |  | N/A |  |  | 1.01 |
GECCH Notes |  |  | 41,400 |  |  |  | 1,697 |  |  | N/A |  |  | 1.00 |
Revolving Credit Facility |  |  | - |  |  |  | 1,697 |  |  | N/A |  |  | - |
December 31, 2025 |  |  |  |  |  |  |  |  |  |  |
GECCO Notes |  | $ | 38,983 |  |  | $ | 1,581 |  |  | N/A |  | $ | 1.01 |
GECCI Notes |  |  | 56,500 |  |  |  | 1,581 |  |  | N/A |  |  | 1.01 |
GECCH Notes |  |  | 41,400 |  |  |  | 1,581 |  |  | N/A |  |  | 1.00 |
GECCG Notes |  |  | 57,500 |  |  |  | 1,581 |  |  | N/A |  |  | 1.00 |
Revolving Credit Facility |  |  | - |  |  |  | 1,581 |  |  | N/A |  |  | - |
As of |  | Total Amount Outstanding(1) |  |  | Asset Coverage Ratio Per Unit(2) |  |  | Involuntary Liquidation Preference Per Unit(3) |  | Average Market Value Per Unit(4) |
June 30, 2026 |  |  |  |  |  |  |  |  |  |  |
GECCI Notes |  |  | 56,500 |  |  | $ | 1,664 |  |  | N/A |  |  | 1.01 |
GECCH Notes |  |  | 41,400 |  |  |  | 1,664 |  |  | N/A |  |  | 1.01 |
GECCG Notes |  |  | 57,500 |  |  |  | 1,664 |  |  | N/A |  |  | 1.00 |
Revolving Credit Facility |  |  | 11,000 |  |  |  | 1,664 |  |  | N/A |  |  | - |
(1) Total amount of each class of senior securities outstanding at the end of the period presented. (2) Asset coverage per unit is the ratio of the carrying value of the Company’s total assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness. (3) The amount to which such class of senior security would be entitled upon the voluntary liquidation of the issuer in preference to any security junior to it. (4) The average market value per unit for the Notes, as applicable, is based on the average daily prices of such Notes and is expressed per $1 of indebtedness. The terms of the unsecured notes are governed by a base indenture, dated as of September 18, 2017, by and between the Company and Equiniti Trust Company, LLC (formerly known as American Stock Transfer & Trust Company, LLC), as trustee (as supplemented with respect to each series of notes, the “Indenture”). The Indenture’s covenants include restrictions on certain activities in the event the Company falls below the minimum asset coverage requirements set forth in Section 18(a)(1)(A) as modified by Section 61(a)(1) of the Investment Company Act, as well as covenants requiring the Company to provide financial information to the holders of the Notes and the trustee if the Company ceases to be subject to the reporting requirements of the Securities Exchange Act of 1934. These covenants are subject to limitations and exceptions that are described in the Indenture. The Investment Company Act limits, with certain exceptions, the Company’s borrowing such that its asset coverage ratio, as defined in the Investment Company Act, is at least 1.5 to 1 after such borrowing. As of June 30, 2026, the Company’s asset coverage ratio was approximately 166.4%. As of June 30, 2026 and December 31, 2025, the Company was in compliance with all covenants under the indenture. For the three and six months ended June 30, 2026 and 2025, the components of interest expense were as follows:
|  | For the Three Months Ended June 30, |  |  | For the Six Months Ended June 30, |
|  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Borrowing interest expense |  | $ | 3,474 |  |  | $ | 3,895 |  |  | $ | 7,261 |  |  | $ | 7,728 |
Amortization of deferred offering costs |  |  | 380 |  |  |  | 423 |  |  |  | 808 |  |  |  | 841 |
Deferred offering costs expensed at time of redemption |  |  | 14 |  |  |  | - |  |  |  | 55 |  |  |  | - |
Total |  | $ | 3,868 |  |  | $ | 4,318 |  |  | $ | 8,124 |  |  | $ | 8,569 |
Weighted average interest rate (1) |  |  | 9.01 | % |  |  | 8.60 | % |  |  | 8.94 | % |  |  | 8.66 | %
Average outstanding balance |  | $ | 172,731 |  |  | $ | 201,279 |  |  | $ | 183,313 |  |  | $ | 199,519 |
(1) Annualized. The fair value of the Company’s Notes are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Company’s Notes is determined by utilizing market quotations at the measurement date as they are Level 1 securities.
|  | June 30, 2026 |
Facility |  | Commitments |  |  | Borrowings Outstanding |  |  | Fair Value |
Unsecured Debt - GECCI Notes |  |  | 56,500 |  |  |  | 56,500 |  |  |  | 56,936 |
Unsecured Debt - GECCH Notes |  |  | 41,400 |  |  |  | 41,400 |  |  |  | 41,483 |
Unsecured Debt - GECCG Notes |  |  | 57,500 |  |  |  | 57,500 |  |  |  | 57,155 |
Total |  | $ | 155,400 |  |  | $ | 155,400 |  |  | $ | 155,574 |
|  | December 31, 2025 |
Facility |  | Commitments |  |  | Borrowings Outstanding |  |  | Fair Value |
Unsecured Debt - GECCO Notes |  | $ | 38,983 |  |  | $ | 38,983 |  |  | $ | 38,983 |
Unsecured Debt - GECCI Notes |  |  | 56,500 |  |  |  | 56,500 |  |  |  | 56,776 |
Unsecured Debt - GECCH Notes |  |  | 41,400 |  |  |  | 41,400 |  |  |  | 41,648 |
Unsecured Debt - GECCG Notes |  |  | 57,500 |  |  |  | 57,500 |  |  |  | 57,562 |
Total |  | $ | 194,383 |  |  | $ | 194,383 |  |  | $ | 194,969 |

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