Long-Term Debt

6 Months Ended

Dec. 31, 2025

11. Long-Term Debt

On June 9, 2022, we issued $26.9 million in aggregate principal amount of 7.25% notes due on June 30, 2027 (the GEGGL Notes), which included $1.9 million of GEGGL Notes issued in connection with the partial exercise of the underwriters’ over-allotment option. The GEGGL Notes are unsecured obligations and rank: (i) pari passu, or equal, with the Convertible Notes (as defined below) and any future outstanding unsecured unsubordinated indebtedness; (ii) senior to any of our indebtedness that expressly provides it is subordinated to the GEGGL Notes; (iii) effectively subordinated to any future secured indebtedness; and (iv) structurally subordinated to any future indebtedness and other obligations of any of our current and future subsidiaries. We pay interest on the GEGGL Notes on March 31, June 30, September 30 and December 31 of each year. The GEGGL Notes can be called on, or after, June 30, 2024. Holders of the GEGGL Notes do not have the option to have the notes repaid prior to the stated maturity date. The GEGGL Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.

The Company’s long-term debt is summarized in the following table:


(in thousands)	December 31, 2025			June 30, 2025
GEGGL Notes	$	26,945		$	26,945
Total principal	$	26,945		$	26,945
Unamortized debt discounts and issuance costs		(429	)		(572	)
Long-term debt		26,516			26,373

Deferred financing costs are amortized to interest expense on a straight-line basis over the five-year term of the loan. During the three and six months ended December 31, 2025, the Company incurred interest expense of $0.6 million and $1.1 million, respectively. During the three and six months ended December 31, 2024, the Company incurred interest expense of $0.6 million and $1.1 million, respectively. See Note 5 - Related Party Transactions for interest expense on the Monomoy Note. See Note 12 - Convertible Notes for interest expense on Convertible Notes.

The GEGGL Notes include covenants that limit additional indebtedness or the payment of dividends subject to compliance with a net consolidated debt to equity ratio of 2:1. As of December 31, 2025, our net consolidated debt to equity ratio is 0.2:1.0. The fair value of the GEGGL Notes as of December 31, 2025 and 2024 were $26.5 million and $26.1 million, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Great Elm Group, Inc. 10-Q