Ladies and gentlemen, thank you for standing by, and welcome to the Great Elm Capital Corp. Fourth Quarter 2020 Financial Results Call. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would now like to hand the conference over to a representative of the company. Please go ahead.

Thank you, and good morning, everyone. Thank you for joining us today for Great Elm Capital Corp.'s fourth quarter earnings conference call. If you would like to be added to our distribution list, you can e-mail investorrelations@greatelmcap.com or you can sign up for alerts directly on our website, www.greatelmcc.com. In addition to our comments for today's call, we'll be utilizing investor presentation as an accompaniment. While we will not be directly referring to the slides, our comments today will generally follow the formal structure of the presentation. The slide presentation accompanying this morning's call and webcast can be found on our website under Financial Information, Quarterly Results. On the website, you can also find a copy of this presentation, our earnings release, Form 10- K and a link to the webcast. I would like to call your attention to the customary safe harbor language regarding forward-looking information. Also, please note that nothing in today's call constitutes an offer to sell or solicitation of offers to purchase our securities. Today's conference call includes forward-looking statements and projections, and we ask that you refer to Great Elm Capital Corp.'s filings with the SEC for important factors that could cause actual results to differ materially from these projections. Great Elm Capital Corp. does not undertake to update its forward-looking statements unless required by law. To obtain copies of SEC filings, please visit Great Elm Capital Corp.'s website under Financial Information, SEC Filings or visit the SEC's website. Hosting the call this morning is Peter Reed, Great Elm Capital Corp.'s President and Chief Executive Officer. As a reminder, this webcast is being recorded on Tuesday, March 16, 2021. With that, I'd now like to turn the call over to Peter. Please go ahead, Peter.

Thank you, Adam. Good morning, and thank you for joining us today. On today's call, we have our COO, Adam Kleinman; and our CFO, Keri Davis. I will begin with an overview of GECC's investment performance during the quarter, discuss the challenges that we face and the impact on the period and explain where we are subsequent to year-end. Keri will then discuss our capital position in greater detail, and then I'll return for closing remarks. Overall, despite the uncertainty of the pandemic on the economy, credit markets in general and specifically on our portfolio companies, we are pleased to exit 2020 in a solid financial position and with dry powder to continue the progress made in repositioning our portfolio. GECC is an externally managed total return-focused BDC. We seek to generate both current income and capital appreciation from its portfolio of investments comprised primarily of secured loans, secured bonds and specialty finance investments. The business currently has total assets of $283.3 million with $79.6 million of net asset value or $3.46 per share and pay a quarterly dividend of $0.10 per share. The weighted average current yield on our debt holdings was approximately 11.7%. 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. As we discussed during our second quarter 2020 conference call, our management team and Board made the determination to reposition our portfolio, which we believe was necessary in order to better strengthen GECC's ability to compete in the market. We've had success in our specialty finance business, Prestige Capital. It's impossible to conduct a thorough analysis of our operations to date without first discussing the rights offering that the company completed in October 2020. Throughout our…

Thanks, Pete. I'll provide a basic overview of the Great Elm BDC portfolio and close with investment activity during the period. Our December 31 portfolio contained 41 investments, 31 of which are debt, and 10 of which are equity. The 31 debt investments account for $108 million or approximately 71% of the fair value, and 10 equity investments account for approximately $44 million of fair value in the portfolio. The weighted average current yield on our debt investments was 11.7%, while the weighted average current yield of our income-generating equity investments in Prestige and Crestwood Equity Partners is approximately 15.2%. We intend to grow the yield-generating equity portion of our portfolio as we target income-generating specialty finance investments to expand and diversify our holdings. We increased our equity investments from last quarter, and it's important to note that 3 of the 10 equity investments totaling approximately $27.4 million of fair value at December 31 are income-generating equity investments. Of the $108 million of debt holdings, roughly $59 million is invested in floating rate debt with a weighted average current yield of 9.4%. Roughly $50 million is invested in fixed rate debt with a weighted average current yield of 14.7%. Our portfolio is currently heavily weighted in the wireless telecommunications service business due to our largest holding, Avanti. However, as we grow our investments in the specialty finance space and further diversify our holdings, we expect the portfolio to generally be less concentrated with additional focus in the specialty finance sector. As Peter noted earlier, we saw higher-than-normal number of prepayments during the period and exited 12 positions. We've been able to successfully find compelling debt investment opportunities at prices below par in each of the last 6 quarters with this past quarter's weighted average price of new debt investments at…

Thanks, Keri. I'd like to close with our dividend and capital deployment and then discuss the positive and impactful change at GECC in general. We declared a $0.10 cash distribution to shareholders of record on March 15, 2021, with a payable date of March 31, 2021. We also announced this morning that we will be paying a $0.10 per share cash distribution to shareholders for the quarter ending June 30, 2021. This represents an indicated yield of 11.5% on NAV at year-end and an 11.0% yield on our common stock price as of Friday's close. Moreover, we feel this positions the company favorably where it can examine the dividend on a quarter-by-quarter basis with the potential for increasing as conditions warrant. We've made considerable progress since our announcement of the restructuring of our portfolio in the second quarter. We had difficult and challenging decisions to make during a period of economic uncertainty, and we made them. Throughout the process, we strengthened our balance sheet, have conducted a sizable turnover in our portfolio in a short amount of time at a favorable yield and now have the leveraging capacity to grow. Finally, as an externally managed BDC, Great Elm Capital Management, or GECM, is responsible for the day-to-day investment decisions impacting the BDC, and we are pleased to have added 2 new members to our Investment Committee from Imperial Capital Asset Management; Jason Reese and Matt Kaplan. Jason has been Executive Co-Chairman of Great Elm Group's Board of Directors since February of 2020 and is the Co-Founder, Chairman and Chief Executive Officer of Imperial Capital Asset Management. Matt joined ICAM in 2020 after spending 4 years at Citadel from 2015 through 2019, investing in special situations and event-driven credit and equities. This is a significant development for the BDC. Our goal has been to both strengthen and broaden GECM's reach and financial acumen. We've worked with ICAM for several periods now. We show the same philosophy about investment opportunities in credit markets. We are very pleased to have the benefit of Jason and Matt's expertise, and look forward to working closely for the benefit of all shareholders in the future. With that, we will turn the call over to the operator to open it for questions.

[Operator Instructions] Our first question comes from the line of Nat Stewart of N.A.S. Capital.

It's interesting. I've kind of followed along with the repositioning. The question I have, just I was curious what else you can tell us about how you're going about the search for more businesses like Prestige. Obviously, that was a big win. If you could find a few more like that, that would be great. I assume there are pretty niche businesses with that type of return, probably hard to find, and also, a lot of people wouldn't really want to sell it. So I'm just curious, is there anything else you can tell us about that process or what you're finding as you search for more specialty finance businesses?

Sure. So Nat, I think that's a great question. I think there's a lot of truth in what you've just said. There definitely tend to be niche businesses. Each kind of sub-niche has its own dynamics. That being said, getting the first one done, Prestige is probably the hardest part. And I think the quality of the relationship that we've built there has led to warm introductions with other people that they know. And so we've had an awful lot of conversations with a variety of different companies that fit a similar profile. They aren't all-in factoring, but what we're looking for is a team that's been together for quite some time, has a really good credit underwriting history, has a very profitable niche business and then ideally, on top of that, like Prestige, is able to benefit from an institutional-sized balance sheet for those few instances a year where they have a very interesting transaction opportunity, but the size of that opportunity is bigger than they would stomach on their own. So that's a bit of the profile. We have a lot of conversations ongoing. It was disappointing to not get more done in the quarter. We did close a participation opportunity with a group called Lenders' Funding, and we're very pleased with that and believe that we will have more of those transactions in the coming quarters.

That sounds good. I think that could give the BDC a really nice focus if you're able to execute on this repositioning. And I wish you luck.

Thanks, Nat. Appreciate it.

[Operator Instructions] And at this time, I'd like to turn the call back over to management for closing remarks.

Thank you again for joining us this morning. We look forward to continued dialogue, and please let us know if we can be helpful with anything in follow-up.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.