Great Elm simplifies structure
By HME News Staff
Updated 10:15 AM CDT, Mon March 22, 2021
WALTHAM, Mass. – Great Elm Group, which has operating companies in DME, has reached an agreement with MAST Capital Management that results in a simplified capital structure and cleaner corporate governance. GEG will issue $2.24 million of 5% Convertible Senior PIK Notes due 2030 to MAST in exchange for all outstanding obligations under the $3.1 million Senior Secured Note issued by GECC GP to MAST, all common stock in GP held by MAST and its affiliates, and termination of MAST’s board appointment rights. MAST was the beneficial owner of about 7.6% of GEG’s outstanding common stock as of Dec. 31, 2020. Following this transaction, MAST’s common stock holdings in GEG and its $2.25 million of convertible notes are its only investments in GEG or its subsidiaries. Separately, GEG has announced that it has repurchased the GP stock held by certain employees of Great Elm for nominal consideration. As a result of both transactions, GEG will own in excess of 90% of the outstanding common stock of GP. “We are pleased to complete these transactions with MAST,” said Peter Reed, CEO. “GEG benefits from the purchase of the GP Corp Senior Secured Note at a discount, and the increase in our ownership of GP results in a greater share of any future profit from GP accruing to the benefit of GEG and, ultimately, our shareholders.”
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