Great Elm Capital (GECC) said Tuesday that it expects a direct net asset value impact of about $16.5 million for the quarter ended Sept. 30 from its investments in First Brands Group, which filed for bankruptcy in September.

On a preliminary basis, Great Elm Capital estimates its investments in First Brands Group to negatively impact its net asset value by about $1.15 to $1.25 per share, based on its outstanding share count as of Sept. 30.

The company said it holds $4.8 million principal amount of First Brands' first lien term loan and $16.2 million principal amount of the second lien loan as of Sept. 30, with respective fair market values of about $1.7 million and $900,000 as of the same date.

Great Elm Capital said it also has additional exposure to First Brands' first lien term loan through its investments in collateralized loan obligations or CLOs. The is estimated to have a preliminary negative impact of $0.25 per share on the Q3 value of its CLO investments, the company added.

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