false0001604174The example should not be considered a representation of future returns or expenses, and actual returns and expenses may be greater or less than those shown. The example assumes that the estimated “other expenses” set forth in the Annual Expenses table are accurate, and that all dividends and distributions are reinvested at NAV. In addition, because the example assumes a 5% annual return, the example does not reflect the payment of the incentive fee. The Company’s actual rate of return may be greater or less than the hypothetical 5% return shown in the example. In the event that the Company sells its securities publicly through underwriters or agents (including each underwritten offering by selling stockholders), the related prospectus supplement will disclose the applicable sales load. In the event that the Company sells its securities publicly through underwriters or agents (including each underwritten offering by selling stockholders), the related prospectus supplement will disclose the estimated amount of total offering expenses (which may include offering expenses borne by third parties on the Company’s behalf), the offering price and the offering expenses borne by the Company as a percentage of the offering price. The expenses associated with the dividend reinvestment plan are included in “Other expenses.” If a participant elects by written notice to the plan administrator prior to termination of his or her account to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15.00 transaction fee plus a $0.07 per share brokerage commission from the proceeds. See the section “Dividend Reinvestment Plan,” below. The Company’s base management fee is calculated and payable quarterly in arrears at an annual rate equal to 1.75% of the Company’s “Total Equity Base,” or the NAV attributable to the common stock and the paid-in or stated capital of the Company’s preferred stock. See the section “The Adviser and the Administrator — Investment Advisory Agreement — Management Fee and Incentive Fee” in the Company’s prospectus for additional information regarding the calculation of the base management fee. The base management fee referenced in the table above is based on actual amounts incurred during the three months ended December 31, 2023, annualized for a full year, and reflects the pro forma effect of the actions described above. Such actions were assumed to have taken place at the start of such period. In addition, such amount reflects the $137.9 million of the Company’s Preferred Stock outstanding as of December 31, 2023, the Company’s NAV for such period (as adjusted to account for the actions described above), and the $170.5 million aggregate principal amount of the Company’s notes outstanding as of December 31, 2023 on which management fees are not payable. For purposes of this table, the SEC requires that the “Base management fee” percentage be calculated as a percentage of net assets attributable to common stockholders, rather than total assets, including assets that have been funded with borrowed monies because common stockholders bear all of this cost. If the management fee were calculated instead as a percentage of the Company’s total assets (as adjusted for the assumptions described above), the Company’s base management fee would be approximately 1.49% of total assets. The incentive fee referenced in the table is based on the Company’s pre-incentive fee net investment income for the three months ended December 31, 2023, annualized for a full year, and adjusted to reflect the pro forma effect of the actions described above. Such actions were assumed to have taken place at the start of such period. In addition, the incentive fee also assumes that such pro forma total assets earn net investment income at the same rate as that earned in respect of the Company’s total deployed assets during the three months ended December 31, 2023, annualized for a full fiscal year, and is based on the total assets assumed for such period. The Company has agreed to pay the Adviser as compensation under the Investment Advisory Agreement a quarterly incentive fee equal to 20% of the Company’s Pre-Incentive Fee Net Investment Income for the immediately preceding quarter, subject to a hurdle of 2.00% of the Company’s NAV per quarter (or an annualized hurdle rate of 8.00%) and a catch-up feature. Pre-Incentive Fee Net Investment Income includes accrued income that the Company has not yet received in cash. However, the portion of the incentive fee that is attributable to deferred interest (such as payment-in-kind, or “PIK,” interest or original issue discount, or “OID) will be paid to the Adviser, without interest, only if and to the extent the Company actually receives such interest in cash, and any accrual will be reversed if and to the extent such interest is reversed in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual. No incentive fees are payable to the Adviser in respect of any capital gains. The incentive fee in each calendar quarter is paid to the Adviser as follows: no incentive fee in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the hurdle of 2.00% of the Company’s NAV; 100% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle but is less than 2.50% of the Company’s NAV in any calendar quarter. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 2.50% of the Company’s NAV) is referred to as the “catch-up.” The “catch-up” is meant to provide the Adviser with 20% of the Company’s Pre-Incentive Fee Net Investment Income as if a hurdle did not apply if this net investment income meets or exceeds 2.50% of the Company’s NAV in any calendar quarter; and 20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.50% of the Company’s NAV in any calendar quarter is payable to the Adviser (that is, once the hurdle is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Net Investment Income thereafter is paid to the Adviser). For a more detailed discussion of the calculation of this fee, see “The Adviser and the Administrator — Investment Advisory Agreement — Management Fee and Incentive Fee” in the Company’s prospectus. “Interest payments on borrowed funds” represents the Company’s annualized interest expense and includes dividends payable on the Preferred Stock and interest payable on the Notes, each as outstanding on December 31, 2023, and includes the pro forma effect of the issuances described above, which, in the aggregate, have a weighted average interest rate of 6.48% per annum. The Company may issue additional shares of preferred stock or debt securities. In the event that the Company were to issue additional shares of preferred stock or debt securities, the Company’s borrowing costs, and correspondingly its total annual expenses, including, in the case of such preferred stock, the base management fee as a percentage of the Company’s net assets attributable to common stock, would increase. “Other expenses” includes the Company’s overhead expenses, including payments under the Administration Agreement based on the Company’s allocable portion of overhead and other expenses incurred by Eagle Point Administration LLC (Eagle Point Administration), the administrator to the Company and an affiliate of the Adviser, and payment of fees in connection with outsourced administrative functions, and are based on estimated amounts for the current fiscal year. See “Related Party Transactions — Administrator” in the Notes to Consolidated Financial Statements. “Other expenses” also includes the ongoing administrative expenses to the independent accountants and legal counsel of the Company, compensation of independent directors, and cost and expenses relating to rating agencies. The average market value per unit is calculated by taking the average of the closing price of each of (a) a share of the Preferred Stock (NYSE: ECCA, ECCB, ECCC, ECC PRD) and(b) $25 principal amount of the Unsecured Notes (NYSE: ECCV, ECCW, ECCX, ECCY, ECCZ) for each day during the years for which each applicable security was listed on the NYSE. The involuntary liquidating preference per unit is the amount to which a share of Preferred Stock would be entitled in preference to any security junior to it upon our involuntary liquidation. The asset coverage per unit figure is the ratio of the Company's total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate dollar amount of outstanding applicable senior securities, as calculated separately for each of the Preferred Stock and the Unsecured Notes in accordance with section 18(h) of the 1940 Act. With respect to the Preferred Stock, the asset coverage per unit figure is expressed in terms of dollar amounts per share of outstanding preferred stock (based on a per share liquidation preference of $25.) With respect to the Unsecured Notes, the asset coverage per unit figure is expressed in terms of dollar amounts per $1,000 principal amount of such notes. Calculated as of the respective high or low closing sales price divided by the quarter end NAV. For the fiscal year ending December 31, 2022, as reported on the Company’s 2022 Form 1099-DIV, distributions made by the Company did not comprise of a return of capital. NAV per share is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The NAVs shown are based on outstanding shares at the end of each period. For the fiscal year ending December 31, 2023, as reported on the Company’s 2023 Form 1099-DIV, distributions made by the Company did not comprise of a return of capital. Assumes (i) $1.04 billion in pro forma total assets as of December 31, 2023 (adjusted to reflect (i) the issuance in the Company’s “at-the-market” offering of 3.9 million shares of our common stock and 227,145 shares of our Series D Preferred Stock from January 1, 2024 through February 15, 2024, yielding net proceeds to the Company of approximately $42.9 million; and (ii) the issuance of 1.96 million shares of the Company’s Series F Term Preferred Stock, yielding net proceeds to the Company of approximately $47.1 million); (ii) $744.8 million in pro forma net assets as of December 31, 2023 (adjusted to reflect the issuances described above); and (iii) an annualized average interest rate on our indebtedness and preferred equity, as of December 31, 2023 (adjusted to reflect the issuances described above), of 6.48%. 0001604174 2023-12-31 0001604174 2023-12-29 0001604174 2023-01-01 2023-12-31 0001604174 2024-02-15 0001604174 2024-02-15 2024-02-15 0001604174 2024-01-31 2024-01-31 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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act File Number: 811-2297

 

Eagle Point Credit Company Inc.

(Exact name of registrant as specified in charter)

 

600 Steamboat Road, Suite 202

Greenwich, CT 06830

(Address of principal executive offices) (Zip code)

 

Thomas P. Majewski

c/o Eagle Point Credit Company Inc.

600 Steamboat Road, Suite 202

Greenwich, CT 06830

(Name and address of agent for service)

 

Copies to

 

Thomas J. Friedmann

Philip Hinkle
Dechert LLP
One International Place, 40th Floor

100 Oliver Street

Boston, MA 02110
(617) 728-7120

 

Registrant’s telephone number, including area code: (203) 340-8500

 

Date of fiscal year end: December 31

 

Date of reporting period: December 31, 2023

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

 

 

 

 

Item 1. Report to Stockholders

 

The Annual Report to stockholders of Eagle Point Credit Company Inc. (the “Company”) for the year ended December 31, 2023 is filed herewith.

 

 

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tm246277d1_annualreportimg2.jpg

 

 

 

Eagle Point Credit Company Inc.

Annual Report – December 31, 2023

 

 

 

Table of Contents

 

Letter to Stockholders and Management Discussion of Company Performance 2
Important Information about this Report and Eagle Point Credit Company Inc. 17
Performance Data 22
Summary of Certain Unaudited Portfolio Characteristics 23
Fees and Expenses (Unaudited) 26
Consolidated Financial Statements for the Year Ended December 31, 2023 (Audited) 29
Price Range of Common Stock 71
Dividend Reinvestment Plan 72
Additional Information 74

 

1

 

 

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Letter to Stockholders and Management Discussion of Company Performance

 

February 22, 2024

 

Dear Fellow Stockholders:

 

We are pleased to provide you with the enclosed report of Eagle Point Credit Company Inc. (“we”, “us”, “our”, or the “Company”) for the fiscal year ended December 31, 2023.

 

The Company is a closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”) and is advised by Eagle Point Credit Management LLC (the “Adviser”). The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. We seek to achieve these objectives by investing primarily in equity and junior debt tranches of collateralized loan obligations (“CLOs”). We may also invest in other securities or instruments that are related investments or that are consistent with our investment objectives.

 

The Company had a strong 2023. For the year ended December 31, 2023, the Company recorded an increase in net assets resulting from operations of $117 million, or $1.80 per weighted average common share.1 This represents a GAAP ROE of 20.79% during the year.2 The Company’s GAAP net investment income net of net realized capital losses was $1.08 per weighted average common share (excluding unrealized appreciation/depreciation). During 2023, our portfolio generated recurring cash flows of $3.22 per share and we paid $1.86 per share in cash distributions with record dates during the year to our shareholders. From December 31, 2022 through December 31, 2023, the Company’s net asset value (“NAV”) per common share increased to $9.21 from $9.07.

 

During 2023, we:

 

  Increased our aggregate monthly common distribution by 14% to $0.16 per share beginning in April 2023 by declaring variable supplemental monthly distributions3 of $0.02 per common share, in addition to our regular monthly distributions of $0.14 per common share.

 

  Strengthened our balance sheet via our at-the-market program, opportunistically deploying the capital into discounted CLO equity investments in the secondary market, many of which had effective yields of over 20%.

 

  Continued to receive strong and consistent cash flows from our investment portfolio in excess of expenses and common stock distributions.

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

2

 

 

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  Managed our CLO equity portfolio such that the Weighted Average Remaining Reinvestment Period (“WARRP”) of the Company’s CLO equity portfolio stood at 2.4 years as of December 31, 2023, compared to the market average of 1.6 years.

 

We continue to be bullish on the Company’s portfolio and the broader economy. In our view, CLOs generally are not particularly sensitive to interest rate movements, as underlying broadly syndicated loans (“BSLs”) and CLO liabilities are both principally floating rate. Because so much of our cash flow is attributable to the difference in spreads between a CLO’s loans and its liabilities, we don’t believe CLO equity cash flows would decline meaningfully in a declining interest rate environment. We also believe having as long of a WARRP as possible provides both near-term protection from loan price volatility and the ability to capitalize on discounted prices to build par in the long run.

 

During 2023, we actively deployed $238 million in net capital into CLO equity, CLO debt, loan accumulation facilities and other investments. Our Adviser focused principally on the CLO secondary market, as CLO secondary opportunities offered hundreds of basis points of additional yield compared to opportunities in the CLO primary market.

 

Our portfolio continued to generate strong recurring cash flows throughout the year. Recurring cash flows from our investment portfolio, which excludes cash received from called CLOs, totaled $208 million, or $3.22 per weighted average common share, compared to cash flows of $163 million, or $3.62 per weighted average common share, received in 2022.

 

We believe our portfolio continues to have the potential for further meaningful upside. The weighted average expected yield of our CLO equity portfolio (excluding called CLOs), based on current market values, was 27.10% as of December 31, 2023, which we believe represents an attractive value. This compares to 27.86% as of December 31, 2022.4

 

Subsequent to year end, we were pleased to raise an additional $47.1 million in net proceeds for investment through the issuance of 8.00% Series F Term Preferred Stock due 2029 (the “Series F Term Preferred Stock”).

 

Today, we have no financing maturities prior to April 2028. All of our debt and preferred stock is fixed rate and we have no secured or “repo”-style financing whatsoever. The weighted average maturity of our outstanding financing stood at 6.2 years as of December 31, 2023, compared to 7.2 years as of December 31, 2022.5

 

As of January 31, 2024, management’s unaudited estimate of the range of the Company’s NAV per common share was between $9.22 and $9.32. The midpoint of this range represents an increase of 0.7% compared to the NAV per common share as of December 31, 2023. As of February 15, 2024, we have approximately $52 million in cash available for investment.

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

3

 

 

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Company Overview

 

Common Stock

 

The Company’s common stock trades on the New York Stock Exchange (NYSE) under the symbol “ECC.” As of December 31, 2023, the NAV per share of the Company’s common stock was $9.21. The trading price of our common stock may, and often does, differ from NAV per share. The closing price per share of our common stock was $9.50 on December 29, 2023, representing a 3.15% premium to NAV per share as of year end.6 For the year ended December 31, 2023, the Company’s total return to common shareholders, on a market price basis and assuming reinvestment of distributions, was approximately 18.92%.7

 

From our initial public offering (“IPO”) on October 7, 2014 through December 31, 2023, our common stock has traded on average at a 10.9% premium to NAV. As of February 15, 2024, the closing price per share of common stock was $9.97, a premium of 7.55% compared to the midpoint of management’s unaudited and estimated NAV range of $9.22 to $9.32 as of January 31, 2024.

 

In connection with our at-the-market offering program, the Company sold 20.2 million shares of our common stock during the year ended December 31, 2023 at premiums to NAV for total net proceeds to the Company of approximately $202 million. The common stock issuance resulted in $0.33 per common share of NAV accretion.

 

The Company paid 12 monthly distributions of $0.14 per share of common stock from January 2023 through December 2023, and paid nine variable supplemental monthly distributions of $0.02 per share of common stock from April 2023 through December 2023. In the aggregate, we paid cumulative monthly distributions of $1.86 per share to common stockholders in 2023. Please note the actual frequency, components and amount of such distributions are subject to variation over time.

 

An investor who purchased common stock as part of our IPO at $20.00 per share has received total cash distributions of $19.99 per share since the IPO through December 31, 2023 – in other words, the investor has essentially received a full return on their initial cash investment, while still owning their shares in the Company. As of January 2024, IPO-to-date common distributions officially exceeded our IPO price. A certain portion of these distributions was comprised of a return of capital as reported on Form 1099-DIV.8

 

We also want to highlight the Company’s dividend reinvestment plan for common stockholders. This plan allows common stockholders to have their distributions automatically reinvested into new shares of common stock. If the prevailing market price of our common stock exceeds our NAV per share, such reinvestment is at a discount (up to five percent) to the prevailing market price. If the prevailing market price of our common stock is less than our NAV per share, such

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

4

 

 

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reinvestment is at the prevailing market price, subject to the terms in the dividend reinvestment plan. We encourage all common stockholders to carefully review the terms of the plan. See “Dividend Reinvestment Plan” in the enclosed report.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

5

 

 

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Other Securities

 

In addition to our common stock, the Company has six other securities which trade on the NYSE, which are summarized below:

 

Security NYSE
Symbol
Par Amount
Outstanding
Rate Payment
Frequency
Callable Maturity
6.50% Series C Term Preferred Stock due 2031 ECCC $54.3 million 6.50% Monthly June 2024 June 2031
6.75% Series D Preferred Stock ECC PRD $28.9 million 6.75% Monthly November 2026 None
8.00% Series F Term Preferred Stock due 2029 ECCF $49.0 million 8.00% Monthly January 2026 January 2029
6.6875% Notes due 2028 ECCX $32.4 million 6.6875% Quarterly Callable April 2028
6.75% Notes due 2031 ECCW $44.9 million 6.75% Quarterly March 2024 March 2031
5.375% Notes due 2029 ECCV $93.3 million 5.375% Quarterly January 2025 January 2029

 

 

The weighted average maturity on our outstanding notes and preferred stock as of December 31, 2023 was approximately 6.2 years, compared to 7.2 years at the end of 2022. In addition, all of our financing is fixed rate, providing us with added certainty in a potentially further rising rate environment.5

 

Pursuant to our at-the-market offering program, the Company sold 65,458 shares of its 6.75% Series D Preferred Stock (the “Series D Preferred Stock”) during the year ended December 31, 2023 for total net proceeds to the Company of approximately $1.3 million. These are perpetual securities and we believe represent a very valuable component of the Company’s capital structure.

 

Subsequent to year-end, the Company issued its Series F Term Preferred Stock at a fixed rate of 8.00%, generating net proceeds to the Company of $47.1 million.

 

As of December 31, 2023, we had debt and preferred securities outstanding which totaled approximately 27% of our total assets (less current liabilities). Based on the midpoint of management’s estimated January 31, 2024 NAV, leverage slightly increased to 30% as a result of the issuance of the Series F Term Preferred Stock. Over the long term, management expects to operate the Company generally with leverage within a range of 25% to 35% of total assets

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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under normal market conditions. As market conditions evolve, or should significant opportunities present themselves, the Company may incur leverage outside of this range, subject to applicable regulatory and contractual limits.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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Portfolio Overview

 

2023 Portfolio Update

 

The secondary market was a key focus for our portfolio throughout 2023, as CLO secondary levels offered hundreds of basis points of additional yield relative to comparable investments in the CLO primary market. While the new issue market typically prices at or around par, the CLO secondary market provided opportunities to buy attractive investments at material discounts. During 2023, the Adviser invested $105 million in the secondary CLO equity market at a weighted average effective yield of 21.74%.

 

Our portfolio continued to generate consistently strong cash flows in 2023. During the year, the Company received cash distributions from our portfolio, excluding called CLOs, of $208 million, or $3.22 per weighted average common share. Further, the Company deployed $238 million in net capital into CLO equity, CLO debt, loan accumulation facilities and other investments.

 

Included within this annual report, you will find detailed portfolio information, including certain look-through information related to the underlying collateral characteristics of the CLO equity investments that we held as of December 31, 2023.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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Market Overview9

 

Loan Market

 

Despite a few periods of considerable volatility in 2023, the BSL market capped off its strongest year since 2009. The Credit Suisse Leverage Loan Index10 (“CSLLI”) recorded a total return of 13.04% in 2023. Firming BSL prices, higher floating rate coupons, and below average loan default levels drove performance through most of the year, as demand from investors seeking yields amidst the higher-for-longer environment overshadowed intermittent risk-off periods during the year. From November into year-end, economic data pointed investors towards a “soft landing” – or even “no landing” – scenario, igniting a broad rally across debt markets, including BSLs and CLOs.

 

Average BSL prices finished 2023 at 95.32. This is an increase from 91.89 at the beginning of the year, but still below pre-Ukraine war levels. As such, with a significant share of high-quality issuers still trading at discounted prices, we believe this represents a path to further upside. Additionally, markets like these allow CLO collateral managers to improve underlying loan portfolios through relative value swaps.

 

The trailing 12-month average default rate ended 2023 at 1.53%. This compares to 0.72% for 2022 but remains comfortably below the long-term average of 2.70%.11 The Fund’s underlying portfolio has a materially lower default exposure at only 0.40%. According to JP Morgan, default activity for December 2023 was the lowest since October 2022, highlighting that while higher costs are impacting many BSL issuers, their fundamentals are holding up well. Indeed, third quarter earnings show continued growth in issuers’ revenue and EBITDA, helping to offset the effects of rising rates.

 

Refinancing activity by BSL issuers increased on a year-over-year basis, accounting for over 58% of 2023’s new supply volume, compared to 26% in 2022. The 12-month trailing loan repayment rate increased to nearly 17.6% in December, its highest monthly level for the year. With only 7% of the outstanding loan market at year-end set to mature prior to 2026, the often-feared maturity wall has been pushed out: debt coming due in 2025 was cut down by 58% in 2023 to $83.1 billion, and 2026 maturities were reduced by 26% to $175 billion. Only 5.9% of the loan portfolios underlying our CLO equity positions mature prior to 2026.

 

For 2023, mutual funds and ETFs investing in U.S. leveraged loans experienced net outflows of $17 billion, compared to net outflows of $13 billion in 2022.12 The high-yield mutual fund/ETF market, by comparison, recorded $7 billion of net outflows in 2023 after recording $49 billion of net outflows in 2022. While these are significant sums of money, they represent a small fraction of the overall $1.4 trillion BSL market.

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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A notable dynamic that picked up steam during the second half of the year was the trend of stressed BSLs being prepaid and refinanced into new facilities from private credit funds and business development companies (“BDCs”). Due to the sheer amount of capital raised for private credit, we even saw CCC-rated loans getting paid off at par as companies refinanced their BSL debt in the private credit market. The prepayment of CCC-rated loans allows reinvesting CLOs to redeploy capital into higher quality discounted loan issues. This has been a good trend for CLOs and if it continues into 2024, as we expect, the potential reduction of tail risk is net positive for CLOs. Overall, private credit managers refinanced around $16 billion of BSLs in 2023, according to LCD Pitchbook.

 

CLO Market

 

The CLO market saw $116 billion of new CLO issuance in 2023, according to LCD Pitchbook. Wide liability spreads and a generally unattractive CLO equity arbitrage did little to deter the less economically sensitive captive CLO funds from issuing CLOs. We believe due to the misalignment of incentive, many CLO issuers with captive CLO funds are willing to accept suboptimal CLO equity returns in order to generate new fee streams for themselves. Of the 208 new BSL CLOs issued during the year, we estimate over 80% were supported by captive CLO funds, while economically sensitive investors like our Adviser focused on the attractive opportunities in the secondary market.

 

CLO refinancing and reset volumes declined in 2023. Of the $24.6 billion in refinancings and resets across 57 transactions in 2023, $14.7 billion occurred in the last three months of the year, per LCD Pitchbook data, as CLO debt spreads tightened with the year-end rally.

 

By the end of 2023, CLO AAA discount margins averaged approximately 175 basis points over the secured overnight financing rate (“SOFR”), a tightening of 53 basis points since the end of 2022. Though the financing cost of new issue CLOs tightened throughout 2023, liability spreads are still wider than what we view to be attractive. The Company’s portfolio enjoys a weighted average CLO AAA financing cost of 145 basis points. That said, while we believe that most current CLO equity IRRs for new issues do not represent attractive value, some do and we do expect the tightening among primary CLO AAAs spreads will help improve the CLO equity arbitrage in 2024. Indeed, we have recently seen the return of some large AAA investors, providing new sources of demand for AAA tranches.

 

Additional Information

 

In addition to the Company’s regulatory requirement to file certain quarterly and annual portfolio information as described further in the enclosed report, the Company makes a monthly estimate of NAV and certain additional financial information available to investors via our website (www.eaglepointcreditcompany.com). This information includes (1) an estimated range of the Company’s net investment income and realized capital gains or losses per share of common

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s NAV per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company’s net investment income and realized capital gains or losses per share for the applicable quarter, if available.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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Subsequent Developments

 

Management’s unaudited estimate of the range of the Company’s NAV per share of common stock was between $9.22 and $9.32 as of January 31, 2024. The midpoint of this range represents an increase of 0.7% compared to the NAV per common share as of December 31, 2023.

 

On January 18, 2024, the Company closed an underwritten public offering of 1,400,000 shares of Series F Term Preferred Stock, resulting in net proceeds to the Company of $33.6 million after payment of underwriting discounts, commissions and estimated offering expenses. Subsequently, on January 31, 2024, the underwriters purchased an additional 160,000 shares of its Series F Term Preferred Stock pursuant to the underwriters’ overallotment option, which resulted in additional net proceeds to the Company of approximately $3.9 million after payment of underwriting discounts.

 

On January 23, 2024, the Company reopened the underwritten public offering of the Series F Term Preferred Stock selling an additional 400,000 shares of Series F Term Preferred Stock, resulting in net proceeds to the Company of approximately $9.6 million after payment of underwriting discounts, commissions and estimated offering expenses.

 

On January 31, 2024, the Company paid an aggregate monthly distribution of $0.16 per common share, inclusive of a variable supplemental distribution of $0.02 per share and a regular distribution of $0.14 per share, to holders of record on January 11, 2024. Additionally, and as previously announced, the Company declared aggregate monthly distributions of $0.16 per common share, inclusive of variable supplemental distributions of $0.02 per share and regular distributions of $0.14 per share, payable on each of February 29, 2024, March 28, 2024, April 30, 2024, May 31, 2024 and June 28, 2024 to holders of record on February 9, 2024, March 8, 2024, April 10, 2024, May 13, 2024 and June 10, 2024, respectively.

 

On January 31, 2024, the Company paid a monthly distribution of $0.135417 per share of the Company’s 6.50% Series C Term Preferred Stock due 2031 (the “Series C Term Preferred Stock”) to holders of record on January 11, 2024. Additionally, and as previously announced, the Company declared distributions of $0.135417 per share on Series C Term Preferred Stock, payable on each of February 29, 2024, March 28, 2024, April 30, 2024, May 31, 2024 and June 28, 2024 to holders of record on February 9, 2024, March 8, 2024, April 10, 2024, May 13, 2024 and June 10, 2024, respectively.

 

On January 31, 2024, the Company paid a monthly distribution of $0.140625 per share of the Company’s Series D Preferred Stock to holders of record on January 11, 2024. Additionally, and as previously announced, the Company declared distributions of $0.140625 per share on Series D Preferred Stock, payable on each of February 29, 2024, March 28, 2024, April 30, 2024, May 31, 2024 and June 28, 2024 to holders of record on February 9, 2024, March 8, 2024, April 10, 2024, May 13, 2024 and June 10, 2024, respectively.

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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As previously announced, the Company declared a distribution of $0.227778 per share on the Company’s Series F Term Preferred Stock, payable on February 29, 2024 to holders of record as of February 9, 2024. The Company also declared distributions of $0.166667 per share on Series F Term Preferred Stock, payable on March 28, 2024, April 30, 2024, May 31, 2024 and June 28, 2024 to holders of record as of March 8, 2024, April 10, 2024, May 13, 2024 and June 10, 2024, respectively.

 

At a special meeting of stockholders held on February 13, 2024, stockholders of the Company approved an amendment to the Company's Certificate of Incorporation to increase the number of authorized shares of the Company’s common stock from 100 million to 200 million, which had the effect of increasing the total number of authorized shares of common stock and preferred stock from 120 million to 220 million in the aggregate.

 

In the period from January 1, 2024 through February 15, 2024, the Company received cash distributions on its investment portfolio of $50.4 million. During that same period, the Company made net new investments totaling $95.5 million. As of February 15, 2024, the Company had approximately $52 million of cash available for investment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* * * * *

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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Management remains keenly focused on continuing to create value for our stockholders. We appreciate the trust and confidence our fellow stockholders have placed in the Company.

 

 

Thomas Majewski

Chief Executive Officer

 

This letter is intended to assist stockholders in understanding the Company’s performance during the twelve months ended December 31, 2023. The views and opinions in this letter were current as of February 15, 2024. Statements other than those of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors. The Company undertakes no duty to update any forward-looking statement made herein. Information contained on our website is not incorporated by reference into this stockholder letter and you should not consider information contained on our website to be part of this stockholder letter or any other report we file with the Securities and Exchange Commission.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

Please see page 15 for endnotes.

 

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ABOUT OUR ADVISER

 

Eagle Point Credit Management LLC is a specialist asset manager focused on investing in CLO Securities and other income-oriented credit investments. As of December 31, 2023, our Adviser had approximately $9.1 billion of assets under management (inclusive of undrawn capital commitments).13

 

 

Notes

 

  1  Weighted average common share” is calculated based on the average daily number of shares of common stock outstanding during the period and “per common share” refers to per share of the Company’s common stock.
  2  Return on our common equity reflects the Company’s cumulative monthly performance net of applicable expenses and fees measured against beginning capital adjusted for any common equity issued during the period.
  3  The declared supplemental distributions during 2023 relate to the excess of the Company’s estimated taxable income for the tax year ended November 30, 2022 over the aggregate amount distributed to common stockholders for the same time period. In the event any future supplemental distributions are declared, amounts may vary.
  4  Weighted average effective yield is based on an investment’s amortized cost and expected future cash flows whereas weighted average expected yield is based on an investment’s fair market value and expected future cash flows as of the applicable period end as disclosed in the Company’s financial statements, which is subject to change from period to period.
  5  For purposes of the weighted average maturity calculation, a 10-year maturity is assumed for the Series D Preferred Stock.
  6  An investment company trades at a premium when the market price at which its common shares trade is more than its net asset value per common share. Alternatively, an investment company trades at a discount when the market price at which its common shares trade is less than its net asset value per common share.
  7  Total return based on market value is calculated assuming shares of the Company’s common stock were purchased at the market price as of the beginning of the period, and distributions paid to common stockholders during the period were reinvested at prices obtained by the Company’s dividend reinvestment plan, and the total number of shares were sold at the closing market price per share on the last day of the period. Total return does not reflect any sales load.
  8  To date, a portion of common stock distributions has been estimated to be a return of capital as noted under the Tax Information section on the Company’s website. The actual components of the Company's distributions for U.S. tax reporting purposes can only be finally determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099-DIV. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Company’s investment performance and should not be confused with “yield” or “income”. Future distributions may consist of a return of capital. Not a guarantee of future distributions or yield.
  9  JPMorgan Chase & Co.; S&P Capital IQ; Pitchbook LCD; Credit Suisse
  10  The CSLLI tracks the investable universe of the US dollar-denominated leveraged loan market. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.
  11  “Par-weighted default rate” represents the rate of obligors who fail to remain current on their loans based on the par amount.
  12  JPMorgan Chase & Co. North American Credit Research – JPM High Yield and Leveraged Loan Research (cumulative 2023 reports).
  13  Calculated in the aggregate with certain affiliated advisers.

 

 

 

 

 

Past performance is not indicative of, or a guarantee of, future performance.

 

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Page Intentionally Left Blank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Important Information about this Report and Eagle Point Credit Company Inc.

 

This report is transmitted to the stockholders of Eagle Point Credit Company Inc. (“we”, “us”, “our” or the “Company”) and is furnished pursuant to certain regulatory requirements. This report and the information and views herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company or any of its affiliates. This report is provided for informational purposes only, does not constitute an offer to sell securities of the Company and is not a prospectus. From time to time, the Company may have a registration statement relating to one or more of its securities on file with the US Securities and Exchange Commission (“SEC”). Any registration statement that has not yet been declared effective by the SEC, and any prospectus relating thereto, is not complete and may be changed. Any securities that are the subject of such a registration statement may not be sold until the registration statement filed with the SEC is effective.

 

The information and its contents are the property of Eagle Point Credit Management LLC (the “Adviser”) and/or the Company. Any unauthorized dissemination, copying or use of this presentation is strictly prohibited and may be in violation of law. This presentation is being provided for informational purposes only.

 

Investors should read the Company’s prospectus and SEC filings (which are publicly available on the EDGAR Database on the SEC website at http://www.sec.gov) carefully and consider their investment goals, time horizons and risk tolerance before investing in the Company. Investors should consider the Company’s investment objectives, risks, charges and expenses carefully before investing in securities of the Company. There is no guarantee that any of the goals, targets or objectives described in this report will be achieved.

 

An investment in the Company is not appropriate for all investors. The investment program of the Company is speculative, entails substantial risk and includes investment techniques not employed by traditional mutual funds. An investment in the Company is not intended to be a complete investment program. Shares of closed-end investment companies, such as the Company, frequently trade at a discount from their net asset value (“NAV”), which may increase investors’ risk of loss. Past performance is not indicative of, or a guarantee of, future performance. The performance and certain other portfolio information quoted herein represents information as of December 31, 2023. Nothing herein should be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data shown herein.

 

Neither the Adviser nor the Company provide legal, accounting or tax advice. Any statement regarding such matters is explanatory and may not be relied upon as definitive advice. Investors should consult with their legal, accounting and tax advisors regarding any potential investment. The information presented herein is as of the dates noted herein and is derived from financial and other information of the Company, and, in certain cases, from third party sources and reports (including reports of third-party custodians, CLO managers and trustees) that have not been independently verified by the Company. As noted herein, certain of this information is estimated and unaudited, and therefore subject to change. We do not represent that such information is accurate or complete, and it should not be relied upon as such.

 

Eagle Point Credit Company Inc.

 

The following information in this annual report is a summary of certain changes during the fiscal year ended December 31, 2023. This information may not reflect all of the changes that have occurred since you purchased shares of our common stock.

 

During the applicable period, there have been: (i) no material changes to the Company’s investment objectives and policies that have not been approved by shareholders, (ii) no material changes to the Company’s principal risks, (iii) no changes to the persons primarily responsible for day-to-day management of the Company; and (iv) no changes to the Company’s charter or bylaws that would delay or prevent a change of control of the Company.

 

Investment Objectives and Strategies

 

We are an externally managed, non-diversified closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). We have elected to be treated,

 

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and intend to qualify annually, as a regulated investment company, or “RIC,” under Subchapter M of the Internal Revenue Code of 1986, as amended, or the “Code,” commencing with our tax year ended November 30, 2014.

 

Our primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. We seek to achieve our investment objectives by investing primarily in equity and junior debt tranches of CLOs, that are collateralized by a portfolio consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors. We may also invest in other related securities and instruments or other securities and instruments that the Adviser believes are consistent with our investment objectives, including senior debt tranches of CLOs, loan accumulation facilities (“LAFs”), securities issued by other securitization vehicles, such as credit linked notes and collateralized bond obligations (“CBOs”), and synthetic investments such as significant risk transfer securities and credit risk transfer securities issued by banks or other financial institutions. We may also acquire securities issued by other investments companies, including closed-end funds, business development companies, mutual funds, and exchange-traded funds, and may otherwise invest indirectly in securities consistent with our investment objectives. The amount that we will invest in other securities and instruments, which may include investments in debt and other securities issued by CLOs collateralized by non-U.S. loans, securities of other collective investment vehicles, will vary from time to time and, as such, may constitute a material part of our portfolio on any given date, all as based on the Adviser’s assessment of prevailing market conditions.

 

The CLO securities in which we primarily seek to invest are unrated or rated below investment grade and are considered speculative with respect to timely payment of interest and repayment of principal. Unrated and below investment grade securities are also sometimes referred to as “junk” securities. In addition, the CLO equity and junior debt securities in which we invest are highly leveraged (with CLO equity securities typically being leveraged ten times), which magnifies our risk of loss on such investments. LAFs are short- to medium-term facilities often provided by the bank that will serve as the placement agent or arranger on a CLO transaction. LAFs typically incur leverage between four and six times prior to a CLO’s pricing.

 

These investment objectives and strategies are not fundamental policies of ours and may be changed by our board of directors without prior approval of our stockholders.

 

“Names Rule” Policy

 

In accordance with the requirements of the 1940 Act, we have adopted a policy to invest at least 80% of our assets in the particular type of investments suggested by our name. Accordingly, under normal circumstances, we invest at least 80% of the aggregate of our net assets and borrowings for investment purposes in credit and credit-related instruments. For purposes of this policy, we consider credit and credit-related instruments to include, without limitation: (i) equity and debt tranches of CLOs, LAFs and securities issued by other securitization vehicles, such as credit-linked notes and CBOs, and synthetic investments, such as significant risk transfer securities and credit risk transfer securities issued by banks or other financial institutions; (ii) secured and unsecured floating rate and fixed rate loans; (iii) investments in corporate debt obligations, including bonds, notes, debentures, commercial paper and other obligations of corporations to pay interest and repay principal; (iv) debt issued by governments, their agencies, instrumentalities, and central banks; (v) commercial paper and short-term notes; (vi) preferred stock; (vii) convertible debt securities; (viii) certificates of deposit, bankers’ acceptances and time deposits; and (ix) other credit-related instruments. Our investments in derivatives, other investment companies, and other instruments designed to obtain indirect exposure to credit and credit-related instruments are counted towards our 80% investment policy to the extent such instruments have similar economic characteristics to the investments included within that policy.

 

Our 80% policy with respect to investments in credit and credit-related instruments is not fundamental and may be changed by our board of directors without stockholder approval. Stockholders will be provided with sixty (60) days’ notice in the manner prescribed by the SEC before making any change to this policy. Our investments in derivatives, other investment companies, and other instruments designed to obtain indirect exposure to credit and credit-related instruments are counted towards our 80% investment policy to the extent such instruments have similar economic characteristics to the investments included within that policy.

 

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Investment Restrictions

 

Our investment objectives and our investment policies and strategies, except for the eight investment restrictions designated as fundamental policies under this caption, are not fundamental and may be changed by the board of directors without stockholder approval.

 

The following eight investment restrictions are designated as fundamental policies and, as such, cannot be changed without the approval of the holders of a majority of our outstanding voting securities:

 

  1. We may not borrow money, except as permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction;
  2. ​We may not engage in the business of underwriting securities issued by others, except to the extent that we may be deemed to be an underwriter in connection with the disposition of portfolio securities;
  3. ​We may not purchase or sell physical commodities or contracts for the purchase or sale of physical commodities. Physical commodities do not include futures contracts with respect to securities, securities indices, currency or other financial instruments;
  4. ​We may not purchase or sell real estate, which term does not include securities of companies which deal in real estate or mortgages or investments secured by real estate or interests therein, except that we reserve freedom of action to hold and to sell real estate acquired as a result of our ownership of securities;
  5. ​We may not make loans, except to the extent permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction. For purposes of this investment restriction, the purchase of debt obligations (including acquisitions of loans, loan participations or other forms of debt instruments) shall not constitute loans by us;
  6. ​We may not issue senior securities, except to the extent permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, the SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction;
  7. ​We may not invest in any security if as a result of such investment, 25% or more of the value of our total assets, taken at market value at the time of each investment, are in the securities of issuers in any particular industry except (a) securities issued or guaranteed by the U.S. government and its agencies and instrumentalities or tax-exempt securities of state and municipal governments or their political subdivisions (however, not including private purpose industrial development bonds issued on behalf of non-government issuers), or (b) as otherwise provided by the 1940 Act, as amended from time to time, and as modified or supplemented from time to time by (i) the rules and regulations promulgated by the SEC under the 1940 Act, as amended from time to time, and (ii) any exemption or other relief applicable to us from the provisions of the 1940 Act, as amended from time to time. For purposes of this restriction, in the case of investments in loan participations between us and a bank or other lending institution participating out the loan, we will treat both the lending bank or other lending institution and the borrower as “issuers.” For purposes of this restriction, an investment in a CLO, collateralized bond obligation, collateralized debt obligation or a swap or other derivative will be considered to be an investment in the industry (if any) of the underlying or reference security, instrument or asset; and
  8. ​We may not engage in short sales, purchases on margin, or the writing of put or call options, except as permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction.

 

​The latter part of certain of our fundamental investment restrictions (i.e., the references to “except to the extent permitted by (i) the 1940 Act, or interpretations or modifications by the SEC, the SEC staff or other authority with appropriate jurisdiction, or (ii) exemptive or other relief or permission from the SEC, SEC staff or other authority with appropriate jurisdiction) provides us with flexibility to change our limitations in connection with changes in applicable law, rules, regulations or exemptive relief. The language used in these restrictions provides the necessary flexibility to allow our board of directors to respond efficiently to these kinds of developments without the delay and expense of a stockholder meeting.

 

19

 

 

Our 80% policy with respect to investments in credit and credit-related instruments is not fundamental and may be changed by our board of directors without stockholder approval. Stockholders will be provided with sixty (60) days’ notice in the manner prescribed by the SEC before making any change to this policy. Our investments in derivatives, other investment companies, and other instruments designed to obtain indirect exposure to credit and credit-related instruments are counted towards our 80% investment policy to the extent such instruments have similar economic characteristics to the investments included within that policy.

 

Whenever an investment policy or investment restriction set forth in this report or in our prospectus states a maximum percentage of assets that may be invested in any security or other asset or describes a policy regarding quality standards, such percentage limitation or standard shall be determined immediately after and as a result of our acquisition of such security or asset. Accordingly, any later increase or decrease resulting from a change in values, assets or other circumstances or any subsequent rating change made by a rating agency (or as determined by the Adviser if the security is not rated by a rating agency) will not compel us to dispose of such security or other asset. Notwithstanding the foregoing, we must always be in compliance with the borrowing policies set forth above.

 

Use of Leverage and Leverage Risks

 

The use of leverage, whether directly or indirectly through investments such as CLO equity or junior debt securities that inherently involve leverage, may magnify our risk of loss. CLO equity or junior debt securities are very highly leveraged (with CLO equity securities typically being leveraged approximately ten times), and therefore the CLO securities in which we are currently invested and in which we intend to invest are subject to a higher degree of loss since the use of leverage magnifies losses.

 

We previously incurred leverage through the issuance of our preferred stock and our unsecured notes. We may incur additional leverage, directly or indirectly, through one or more special purpose vehicles, indebtedness for borrowed money, as well as leverage in the form of derivative transactions, additional shares of preferred stock, debt securities and other structures and instruments, in significant amounts and on terms that the Adviser and our board of directors deem appropriate, subject to applicable limitations under the 1940 Act. Such leverage may be used for the acquisition and financing of our investments, to pay fees and expenses and for other purposes. Such leverage may be secured and/or unsecured. The more leverage we employ, the more likely a substantial change will occur in our NAV. Accordingly, any event that adversely affects the value of an investment would be magnified to the extent leverage is utilized. The cumulative effect of the use of leverage with respect to any investments in a market that moves adversely to such investments could result in a substantial loss that would be greater than if our investments were not leveraged.

 

The following table is intended to illustrate the effect of the use of direct leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below.

 

Assumed Return on Our Portfolio (Net of Expenses) -10% -5% 0% 5% 10%
Corresponding return to common stockholder(1)  -16.71% -9.70% -2.68% 4.33% 11.34%

 

 
  (1) Assumes (i) $1.04 billion in pro forma total assets as of December 31, 2023 (adjusted to reflect (i) the issuance in the Company’s “at-the-market” offering of 3.9 million shares of our common stock and 227,145 shares of our Series D Preferred Stock from January 1, 2024 through February 15, 2024, yielding net proceeds to the Company of approximately $42.9 million; and (ii) the issuance of 1.96 million shares of the Company’s Series F Term Preferred Stock, yielding net proceeds to the Company of approximately $47.1 million); (ii) $744.8 million in pro forma net assets as of December 31, 2023 (adjusted to reflect the issuances described above); and (iii) an annualized average interest rate on our indebtedness and preferred equity, as of December 31, 2023 (adjusted to reflect the issuances described above), of 6.48%.

 

Based on our assumed leverage described above, our investment portfolio would have been required to experience an annual return of at least 1.92% to cover annual interest and dividend payments on our outstanding indebtedness and preferred equity.

 

20

 

 

Principal Risk Factors

 

For a description of the principal risk factors associated with an investment in the Company, please refer to Note 3 to the Consolidated Financial Statements, “Investments – Investment Risk Factors and Concentration of Investments”.

 

Additional Information

 

The Company makes certain unaudited portfolio information available each month on its website in addition to making certain other unaudited financial information available on its website (www.eaglepointcreditcompany.com). This information includes (1) an estimated range of the Company’s net investment income (NII) and realized capital gains or losses per weighted average share of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s NAV per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses for the applicable quarter, if available.

 

Information contained on our website is not incorporated by reference into this Annual Report and you should not consider information contained on our website to be part of this Annual Report or any other report we file with the SEC.

 

Forward-Looking Statements

 

This report may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this report may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this report.

 

21

 

 

Performance Data1

 

The following graph shows the market price performance of a $10,000 investment in the Company’s common shares for the period from October 7, 2014 (inception) through December 31, 2023. The performance calculation assumes the purchase of Company shares at the offering price at the beginning of the period and the sale of Company shares at the market price at the end of the period. Ending values for each year are as of December 31 of the applicable year. For comparative purposes, the performance of a relevant third-party securities market index, the S&P BDC Index, is shown. Distributions are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan. The performance does not reflect brokerage commissions in connection with the purchase or sale of Company shares, which if included would lower the performance shown above. Returns do not reflect the deduction of taxes that a shareholder would pay on Company distributions or the sale of Company shares.

 

Past performance is not indicative of, or a guarantee of, future performance. Future results may vary and may be higher or lower than the data shown.

 

Value of $10,000 Invested

 

tm246277d1_sp2img001.jpg 

 

  Average Annualized Total Return  Cumulative
Return
 
  1 Year  3 Year  5 Year  Since
Inception
  Since
Inception
 
ECC  18.92%   16.81%   8.97%   7.44%   94.02% 

S&P BDC Index

  

27.58%

   

16.68%

   

13.16%

   

7.80%

   

100.06%

 

 

 

 

 

 

 

 

 

 

Please see footnote disclosures on page 25.

 

22

 

 

Summary of Certain Unaudited Portfolio Characteristics

 

The information presented below is on a look–through basis to the collateralized loan obligation, or “CLO”, equity held by the Company as of December 31, 2023 (except as otherwise noted) and reflects the aggregate underlying exposure of the Company based on the portfolios of those investments. The data is estimated and unaudited and is derived from CLO trustee reports received by the Company relating to December 2023 and from custody statements and/or other information received from CLO collateral managers, or other third party sources.

 

Summary of Portfolio Investments (as of 12/31/2023)2

 

tm246277d1_sp2img002.jpg 

 

 

Cash: $43.1 million2
 
Summary of Underlying Portfolio Characteristics (as of 12/31/2023)3
Number of Unique Underlying Loan Obligors  1,796 
Largest Exposure to an Individual Obligor  0.76% 
Average Individual Loan Obligor Exposure  0.06% 
Top 10 Loan Obligors Exposure  5.39% 
Currency: USD Exposure  99.62% 
Aggregate Indirect Exposure to Senior Secured Loans4  95.44% 
Weighted Average Junior OC Cushion  4.28% 
Weighted Average Market Value of Loan Collateral  96.54% 
Weighted Average Stated Loan Spread  3.79% 
Weighted Average Loan Rating5  B+/B 
Weighted Average Loan Maturity  4.4 years 
Weighted Average Remaining CLO Reinvestment Period  2.4 years 

 

23

 

 

Top 10 Underlying Obligors3
   
Obligor % of Total
Asurion 0.8%
Numericable 0.6%
Virgin Media 0.5%
Athenahealth 0.5%
Cablevision 0.5%
Transdigm 0.5%
Medline Industries 0.5%
Mcafee 0.5%
Ineos 0.5%
Univision Communications 0.5%
Total 5.4%

 

Rating Distribution of Underlying Obligors3,5

 tm246277d1_sp2img004.jpg

Top 10 Industries of Underlying Obligors3,6

 

Industry % of Total
Technology: Software & Services 11.4%
Media 6.5%
Health Care Providers & Services 5.6%
Hotels, Restaurants & Leisure 5.0%
Diversified Financial Services 4.2%
Diversified Telecommunications Services 4.1%
Commercial Services & Supplies 4.0%
Insurance 3.9%
Chemicals 3.3%
Technology: Hardware & Equipment 3.2%
Total 51.2%

 

Maturity Distribution of Underlying Obligors3

 

tm246277d1_sp2img005.jpg

 

24

 

 

Notes

 

1The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. The indices shown herein have not been selected to represent a benchmark for a strategy’s performance, but are instead disclosed to allow for comparison of the Company’s returns to that of known, recognized and/or similar indices. The S&P BDC Index is intended to measure the performance of all Business Development Companies (BDCs) that are listed on the NYSE or NASDAQ and satisfy market capitalization and other eligibility requirements. Although ECC is not a BDC, BDCs generally invest in high yielding credit investments, as does ECC. In addition, similar to ECC, BDCs generally elect to be classified as a regulated investment company under the U.S. Internal Revenue Code of 1986, as amended, which generally requires an investment company to distribute its taxable income to shareholders.
2The summary of portfolio investments shown is based on the estimated fair value of the underlying positions and cash net of pending settlements as of December 31, 2023. Cash excludes restricted cash.
3The information presented herein is on a look-through basis to the collateralized loan obligation, or “CLO”, equity held by the Company as of December 31, 2023 (except as otherwise noted) and reflects the aggregate underlying exposure of the Company based on the portfolios of those investments. The data is estimated and unaudited and is derived from CLO trustee reports received by the Company relating to December 2023 and from custody statements and/or other information received from CLO collateral managers and other third-party sources. Information relating to the market price of underlying collateral is as of month end; however, with respect to other information shown, depending on when such information was received, the data may reflect a lag in the information reported. As such, while this information was obtained from third party data sources, December 2023 trustee reports and similar reports, other than market price, it does not reflect actual underlying portfolio characteristics as of December 31, 2023 and this data may not be representative of current or future holdings. The weighted average remaining reinvestment period information is based on the fair value of CLO equity investments held by the Company as of December 31, 2023.
4We obtain exposure in underlying senior secured loans indirectly through CLOs and related investments.
5Credit ratings shown are based on those assigned by Standard & Poor’s Rating Group, or “S&P,” or, for comparison and informational purposes, if S&P does not assign a rating to a particular obligor, the weighted average rating shown reflects the S&P equivalent rating of a rating agency that rated the obligor provided that such other rating is available with respect to a CLO equity or related investment held by us. In the event multiple ratings are available, the lowest S&P rating, or if there is no S&P rating, the lowest equivalent rating, is used. The ratings of specific borrowings by an obligor may differ from the rating assigned to the obligor and may differ among rating agencies. For certain obligors, no rating is available in the reports received by the Company. Such obligors are not shown in the graphs and, accordingly, the sum of the percentages in the graphs may not equal 100%. Ratings below BBB- are below investment grade. Further information regarding S&P’s rating methodology and definitions may be found on its website (www.standardandpoors.com). This data includes underlying portfolio characteristics of the Company’s CLO equity.
6Industry categories are based on the S&P industry categorization of each obligor as reported in CLO trustee reports to the extent so reported. Certain CLO trustee reports do not report the industry category of all of the underlying obligors and where such information is not reported, it is not included in the summary look-through industry information shown. As such, the Company’s exposure to a particular industry may be higher than that shown if industry categories were available for all underlying obligors. In addition, certain underlying obligors may be re-classified from time to time based on developments in their respective businesses and/or market practices. Accordingly, certain underlying borrowers that are currently, or were previously, summarized as a single borrower in a particular industry may in current or future periods be reflected as multiple borrowers or in a different industry, as applicable.

 

25

 

 

Fees and Expenses (Unaudited)

 

 

The following table is intended to assist you in understanding the costs and expenses that an investor in shares of the Company’s common stock will bear directly or indirectly. The expenses shown in the table under “Annual Expenses” are estimated based on historical fees and expenses incurred by the Company, as appropriate. In addition, such amounts are based on the Company’s pro forma total assets as of December 31, 2023, which have been adjusted to reflect (i) the issuance in the Company’s “at-the-market” offering of 3.9 million shares of our common stock and 227,145 shares of our Series D Preferred Stock from January 1, 2024 through February 15, 2024, yielding net proceeds to the Company of approximately $42.9 million; (ii) the issuance of 1.96 million shares of the Company’s Series F Term Preferred Stock, yielding net proceeds to the Company of approximately $47.1 million, which would mean that the Company’s adjusted total assets are assumed to equal approximately $1.04 billion. As of December 31, 2023, and pro forma for the issuances described above (excluding any distributions paid after December 31, 2023), the Company’s leverage, including the outstanding notes and preferred stock, represented approximately 29.9% of the Company’s total assets (less current liabilities). Such expenses, and actual leverage incurred by the Company, may vary in the future. Whenever this report (or other Company disclosures, including the Company’s prospectus) contain a reference to fees or expenses paid by the Company, the Company’s common stockholders will indirectly bear such fees or expenses.

 

Stockholder Transaction Expenses (as a percentage of the offering price):
Sales load %(1)
Offering expenses borne by the Company %(2)
Dividend reinvestment plan expenses  Up to $15(3)
Total stockholder transaction expenses —%
Annual Expenses (as a percentage of net assets attributable to common stock):
Base management fee 2.09%(4)
Incentive fee payable under the Investment Advisory Agreement (20%) 3.80%(5)
Interest payments on borrowed funds 2.42%(6)
Other expenses 0.64%(7)
Total annual expenses 8.95%

 

  (1) In the event that the Company sells its securities publicly through underwriters or agents (including each underwritten offering by selling stockholders), the related prospectus supplement will disclose the applicable sales load.
  (2) In the event that the Company sells its securities publicly through underwriters or agents (including each underwritten offering by selling stockholders), the related prospectus supplement will disclose the estimated amount of total offering expenses (which may include offering expenses borne by third parties on the Company’s behalf), the offering price and the offering expenses borne by the Company as a percentage of the offering price.
  (3) The expenses associated with the dividend reinvestment plan are included in “Other expenses.” If a participant elects by written notice to the plan administrator prior to termination of his or her account to have the plan administrator sell part or all of the shares held by the plan administrator in the participant’s account and remit the proceeds to the participant, the plan administrator is authorized to deduct a $15.00 transaction fee plus a $0.07 per share brokerage commission from the proceeds. See the section “Dividend Reinvestment Plan,” below.
  (4) The Company’s base management fee is calculated and payable quarterly in arrears at an annual rate equal to 1.75% of the Company’s “Total Equity Base,” or the NAV attributable to the common stock and the paid-in or stated capital of the Company’s preferred stock. See the section “The Adviser and the Administrator — Investment Advisory Agreement — Management Fee and Incentive Fee” in the Company’s prospectus for additional information regarding the calculation of the base management fee. The base management fee referenced in the table above is based on actual amounts incurred during the three months ended December 31, 2023, annualized for a full year, and reflects the pro forma effect of the actions described above. Such actions were assumed to have taken place at the start of such period. In addition, such amount reflects the $137.9 million of the Company’s Preferred Stock outstanding as of December 31, 2023, the Company’s NAV for such period (as adjusted to account for the actions described above), and the $170.5 million aggregate principal amount of the Company’s notes outstanding as of December 31, 2023 on which management fees are not payable. For purposes of this table, the SEC requires that the “Base management fee” percentage be calculated as a percentage of net assets attributable to common stockholders, rather than total assets, including assets that have been funded with borrowed monies because common stockholders bear all of this cost. If the management fee were calculated instead as a percentage of the Company’s

 

26

 

 

    total assets (as adjusted for the assumptions described above), the Company’s base management fee would be approximately 1.49% of total assets.
  (5) The incentive fee referenced in the table is based on the Company’s pre-incentive fee net investment income for the three months ended December 31, 2023, annualized for a full year, and adjusted to reflect the pro forma effect of the actions described above. Such actions were assumed to have taken place at the start of such period. In addition, the incentive fee also assumes that such pro forma total assets earn net investment income at the same rate as that earned in respect of the Company’s total deployed assets during the three months ended December 31, 2023, annualized for a full fiscal year, and is based on the total assets assumed for such period. The Company has agreed to pay the Adviser as compensation under the Investment Advisory Agreement a quarterly incentive fee equal to 20% of the Company’s Pre-Incentive Fee Net Investment Income for the immediately preceding quarter, subject to a hurdle of 2.00% of the Company’s NAV per quarter (or an annualized hurdle rate of 8.00%) and a catch-up feature. Pre-Incentive Fee Net Investment Income includes accrued income that the Company has not yet received in cash. However, the portion of the incentive fee that is attributable to deferred interest (such as payment-in-kind, or “PIK,” interest or original issue discount, or “OID) will be paid to the Adviser, without interest, only if and to the extent the Company actually receives such interest in cash, and any accrual will be reversed if and to the extent such interest is reversed in connection with any write-off or similar treatment of the investment giving rise to any deferred interest accrual. No incentive fees are payable to the Adviser in respect of any capital gains.

 

The incentive fee in each calendar quarter is paid to the Adviser as follows:

 

  no incentive fee in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the hurdle of 2.00% of the Company’s NAV;
  100% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle but is less than 2.50% of the Company’s NAV in any calendar quarter. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the hurdle but is less than 2.50% of the Company’s NAV) is referred to as the “catch-up.” The “catch-up” is meant to provide the Adviser with 20% of the Company’s Pre-Incentive Fee Net Investment Income as if a hurdle did not apply if this net investment income meets or exceeds 2.50% of the Company’s NAV in any calendar quarter; and
  20% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.50% of the Company’s NAV in any calendar quarter is payable to the Adviser (that is, once the hurdle is reached and the catch-up is achieved, 20% of all Pre-Incentive Fee Net Investment Income thereafter is paid to the Adviser). For a more detailed discussion of the calculation of this fee, see “The Adviser and the Administrator — Investment Advisory Agreement — Management Fee and Incentive Fee” in the Company’s prospectus.

 

  (6) “Interest payments on borrowed funds” represents the Company’s annualized interest expense and includes dividends payable on the Preferred Stock and interest payable on the Notes, each as outstanding on December 31, 2023, and includes the pro forma effect of the issuances described above, which, in the aggregate, have a weighted average interest rate of 6.48% per annum. The Company may issue additional shares of preferred stock or debt securities. In the event that the Company were to issue additional shares of preferred stock or debt securities, the Company’s borrowing costs, and correspondingly its total annual expenses, including, in the case of such preferred stock, the base management fee as a percentage of the Company’s net assets attributable to common stock, would increase.
  (7) “Other expenses” includes the Company’s overhead expenses, including payments under the Administration Agreement based on the Company’s allocable portion of overhead and other expenses incurred by Eagle Point Administration LLC (Eagle Point Administration), the administrator to the Company and an affiliate of the Adviser, and payment of fees in connection with outsourced administrative functions, and are based on estimated amounts for the current fiscal year. See “Related Party Transactions — Administrator” in the Notes to Consolidated Financial Statements. “Other expenses” also includes the ongoing administrative expenses to the independent accountants and legal counsel of the Company, compensation of independent directors, and cost and expenses relating to rating agencies.

Example

 

The following example is furnished in response to the requirements of the SEC and illustrates the various costs and expenses that you would pay, directly or indirectly, on a $1,000 investment in shares of the Company’s common stock for the time periods indicated, assuming (1) total annual expenses of 5.15% of net assets attributable to the Company’s common stock and (2) a 5% annual return*:

 

    1
year
    3 years     5 years     10 years
You would pay the following expenses on a $1,000 investment, assuming a 5% annual return   $52     $ 154     $ 257     $ 512

 

* The example should not be considered a representation of future returns or expenses, and actual returns and expenses may be greater or less than those shown. The example assumes that the estimated “other expenses” set forth in the Annual Expenses table are accurate, and that all dividends and distributions are reinvested at NAV. In addition, because the

 

27

 

 

example assumes a 5% annual return, the example does not reflect the payment of the incentive fee. The Company’s actual rate of return may be greater or less than the hypothetical 5% return shown in the example.

 

28

 

Consolidated Financial Statements for the Year Ended

December 31, 2023 (Audited)

 

 

  

Consolidated Statement of Assets and Liabilities   30
     
Consolidated Schedule of Investments   31
     
Consolidated Statement of Operations   36
     
Consolidated Statement of Comprehensive Income   37
     
Consolidated Statements of Changes in Net Assets   38
     
Consolidated Statement of Cash Flows   39
     
Notes to Consolidated Financial Statements   40
     
Consolidated Financial Highlights   65
     
Supplemental Information   68
     
Report of Independent Registered Public Accounting Firm   69

 

29

 

  

Eagle Point Credit Company Inc. & Subsidiaries

Consolidated Statement of Assets and Liabilities

As of December 31, 2023

(expressed in U.S. dollars)

 

 

 

ASSETS      
Investments, at fair value (cost $1,012,755,723) (1)   $ 870,725,471  
Cash and cash equivalents (restricted cash of $2,710,000)     46,445,467  
Unrealized appreciation on forward currency contracts     8,229  
Interest receivable     34,457,401  
Receivable for shares of common stock issued pursuant to the Company's dividend reinvestment plan     1,311,427  
Excise tax refund receivable     727,015  
Receivable for securities sold     175,664  
Prepaid expenses     642,907  
Total Assets     954,493,581  
         
         
LIABILITIES        
6.6875% Unsecured Notes due 2028, at fair value under the fair value option (aggregate principal amount of $32,423,800) (Note 8)     31,192,085  
         
5.375% Unsecured Notes due 2029, at fair value under the fair value option (aggregate principal amount of $93,250,000) (Note 8)     83,411,752  
         
6.75% Unsecured Notes due 2031, at fair value under the fair value option (aggregate principal amount of $44,850,000) (Note 8)     43,109,820  
         
6.50% Series C Term Preferred Stock due 2031 (Note 7):        
6.50% Series C Term Preferred Stock due 2031, at fair value under the fair value option (2,172,553 shares outstanding)     46,883,694  
Unamortized share issuance premium associated with 6.50% Series C Term Preferred Stock due 2031     52,174  
6.50% Series C Term Preferred Stock due 2031, at fair value, plus associated unamortized share issuance premium     46,935,868  
         
Unrealized depreciation on forward currency contracts     1,382,124  
Incentive fee payable     7,559,394  
Management fee payable     3,378,716  
Payable for securities purchased     836,413  
Professional fees payable     438,596  
Directors' fees payable     198,750  
Administration fees payable     187,692  
Tax expense payable     20,000  
Due to affiliates     1,524  
Other expenses payable     64,143  
Total Liabilities     218,716,877  
         
TEMPORARY EQUITY        
6.75% Series D Preferred Stock (1,156,395 shares outstanding) (Note 7)     27,433,137  
         
COMMITMENTS AND CONTINGENCIES (Note 10)        
         
NET ASSETS applicable to common stock, $0.001 par value, 100,000,000 shares authorized, 76,948,138 shares issued and outstanding   $ 708,343,567  
         
NET ASSETS consist of:      
Paid-in capital (Note 6)   $ 931,129,389  
Aggregate distributable earnings (losses)     (221,435,774 )
Accumulated other comprehensive income (loss)     (1,350,048 )
Total Net Assets   $ 708,343,567  
Net asset value per share of common stock   $ 9.21  

 

(1) Includes $9,333,082 of affiliated investments at fair value (cost $9,090,033).  See Note 5 "Related Party Transactions" for further discussion.

 

See accompanying notes to the consolidated financial statements

 

30

 

 

Eagle Point Credit Company Inc. & Subsidiaries

Consolidated Schedule of Investments

As of December 31, 2023

(expressed in U.S. dollars)

 

 

Issuer ⁽¹⁾ Investment Description Acquisition
Date ⁽²⁾
 Principal
Amount /
Shares
  Cost  Fair Value ⁽³⁾  % of Net
Assets
 
Investments at fair value ⁽⁴⁾ ⁽⁵⁾                   
CLO Debt                   
Structured Finance                   
United States                   
1988 CLO 2 Ltd. Secured Note - Class E, 13.66% (3M SOFR + 8.27%, due 04/15/2038) ⁽⁶⁾ 02/08/23 $952,550  $892,487  $956,741  0.14%
AGL CLO 13 Ltd. Secured Note - Class E, 12.18% (3M SOFR + 6.76%, due 10/20/2034) ⁽⁶⁾ 06/14/23  2,500,000   2,227,809   2,441,250  0.34%
AGL CLO 5 Ltd. Secured Note - Class E-R, 12.13% (3M SOFR + 6.71%, due 07/20/2034) ⁽⁶⁾ 08/22/23  10,050,000   9,574,776   9,696,240  1.37%
Allegany Park CLO, Ltd. Secured Note - Class E-R, 11.82% (3M SOFR + 6.40%, due 01/20/2035) ⁽⁶⁾ 06/28/23  6,000,000   5,418,874   5,685,000  0.80%
ALM 2020, Ltd. Secured Note - Class D, 11.66% (3M SOFR + 6.26%, due 10/15/2029) ⁽⁶⁾ 12/13/23  1,950,000   1,905,072   1,910,805  0.27%
AMMC CLO 24, Limited Secured Note - Class E, 12.25% (3M SOFR + 6.83%, due 01/20/2035) ⁽⁶⁾ 08/01/23  1,500,000   1,416,875   1,436,400  0.20%
Ares XXXVII CLO Ltd. Secured Note - Class D-R, 11.81% (3M SOFR + 6.41%, due 10/15/2030) ⁽⁶⁾ 09/12/23  2,700,000   2,443,264   2,521,530  0.36%
Ares XLIII CLO Ltd. Secured Note - Class E-R, 12.52% (3M SOFR + 7.12%, due 07/15/2034) ⁽⁶⁾ 11/29/23  1,650,000   1,568,079   1,582,515  0.22%
Assurant CLO I Ltd. Secured Note - Class E-R, 12.88% (3M SOFR + 7.46%, due 10/20/2034) ⁽⁶⁾ 09/19/23  2,000,000   1,842,824   1,818,000  0.26%
Bain Capital Credit CLO 2019-3, Limited Secured Note - Class E-R, 12.77% (3M SOFR + 7.36%, due 10/21/2034) ⁽⁶⁾ 06/06/23  5,800,000   5,046,503   5,613,820  0.79%
Bain Capital Credit CLO 2021-1, Limited Secured Note - Class E, 12.16% (3M SOFR + 6.76%, due 04/18/2034) ⁽⁶⁾ 06/08/23  5,600,000   5,001,881   5,293,680  0.75%
Bain Capital Credit CLO 2021-5, Limited Secured Note - Class E, 12.17% (3M SOFR + 6.76%, due 10/23/2034) ⁽⁶⁾ 12/08/23  500,000   467,629   467,250  0.07%
Barings CLO Ltd. 2019-III Secured Note - Class E-R, 12.38% (3M SOFR + 6.96%, due 04/20/2031) ⁽⁶⁾ 06/06/23  4,500,000   4,002,617   4,368,600  0.62%
Barings CLO Ltd. 2022-I Secured Note - Class E, 12.40% (3M SOFR + 7.00%, due 04/15/2035) ⁽⁶⁾ 03/18/22  4,450,000   4,114,827   4,095,335  0.58%
Barings CLO Ltd. 2022-II Secured Note - Class E, 13.23% (3M SOFR + 7.84%, due 07/15/2035) ⁽⁶⁾ 06/21/22  1,080,000   1,069,961   1,073,520  0.15%
Battalion CLO XXI Ltd. Secured Note - Class E, 12.12% (3M SOFR + 6.72%, due 07/15/2034) ⁽⁶⁾ 06/27/23  1,500,000   1,208,164   1,274,100  0.18%
Beechwood Park CLO, Ltd. Secured Note - Class E, 11.90% (3M SOFR + 6.50%, due 01/17/2035) ⁽⁶⁾ 11/30/23  775,000   737,540   748,805  0.11%
Carlyle US CLO 2021-1, Ltd. Secured Note - Class D, 11.66% (3M SOFR + 6.26%, due 04/15/2034) ⁽⁶⁾ 02/02/21  1,250,000   1,239,907   1,189,500  0.17%
Carlyle US CLO 2021-5, Ltd. Secured Note - Class E, 11.93% (3M SOFR + 6.51%, due 07/20/2034) ⁽⁶⁾ 08/18/23  1,675,000   1,605,699   1,613,193  0.23%
Carlyle US CLO 2022-1, Ltd. Secured Note - Class D, 8.79% (3M SOFR + 3.40%, due 04/15/2035) ⁽⁶⁾ 03/15/22  850,000   848,725   828,070  0.12%
CarVal CLO II Ltd. Secured Note - Class E-R, 12.25% (3M SOFR + 6.83%, due 04/20/2032) ⁽⁶⁾ 09/06/23  2,350,000   2,234,853   2,244,015  0.32%
CIFC Funding 2015-III, Ltd. Secured Note - Class F-R, 12.46% (3M SOFR + 7.06%, due 04/19/2029) ⁽⁶⁾ 02/23/18  2,450,000   2,400,368   1,927,415  0.27%
CIFC Funding 2017-III, Ltd. Secured Note - Class D, 11.68% (3M SOFR + 6.26%, due 07/20/2030) ⁽⁶⁾ 09/18/23  2,000,000   1,864,098   1,946,600  0.27%
CIFC Funding 2020-I, Ltd. Secured Note - Class E-R, 11.91% (3M SOFR + 6.51%, due 07/15/2036) ⁽⁶⁾ 12/13/23  2,950,000   2,906,018   2,910,765  0.41%
CIFC Funding 2022-I, Ltd. Secured Note - Class E, 11.80% (3M SOFR + 6.40%, due 04/17/2035) ⁽⁶⁾ 01/27/22  1,700,000   1,700,000   1,667,360  0.24%
Dryden 53 CLO, Ltd. Secured Note - Class F, 13.16% (3M SOFR + 7.76%, due 01/15/2031) ⁽⁶⁾ 11/28/17  1,095,000   1,059,223   854,976  0.12%
Dryden 75 CLO, Ltd. Secured Note - Class E-R2, 12.26% (3M SOFR + 6.86%, due 04/15/2034) ⁽⁶⁾ 05/30/23  3,200,000   2,775,553   2,939,520  0.41%
Halcyon Loan Advisors Funding 2018-1 Ltd. Secured Note - Class A-2, 7.48% (3M SOFR + 2.06%, due 07/21/2031) ⁽⁶⁾ 10/21/21  10,955,000   10,925,078   10,824,636  1.53%
HarbourView CLO VII-R, Ltd. Secured Note - Class F, 13.93% (3M SOFR + 8.53%, due 07/18/2031) ⁽⁶⁾ ⁽⁷⁾ 05/17/18  869,565   836,205   121,826  0.02%
HPS Loan Management 12-2018, Ltd. Secured Note - Class C, 8.41% (3M SOFR + 3.01%, due 07/18/2031) ⁽⁶⁾ 03/13/23  1,800,000   1,628,997   1,751,760  0.25%
HPS Loan Management 12-2018, Ltd. Secured Note - Class D, 10.81% (3M SOFR + 5.41%, due 07/18/2031) ⁽⁶⁾ 06/21/23  550,000   469,943   514,635  0.07%
KKR CLO 17 Ltd. Secured Note - Class E-R, 13.05% (3M SOFR + 7.65%, due 04/15/2034) ⁽⁶⁾ 09/07/23  3,900,000   3,659,559   3,709,290  0.52%
KKR CLO 24 Ltd. Secured Note - Class E, 12.06% (3M SOFR + 6.64%, due 04/20/2032) ⁽⁶⁾ 06/22/23  1,400,000   1,251,130   1,331,540  0.19%
KKR CLO 28 Ltd. Secured Note - Class E, 12.15% (3M SOFR + 6.76%, due 03/15/2031) ⁽⁶⁾ 07/13/23  550,000   511,438   535,975  0.08%
Madison Park Funding XLIV, Ltd. Secured Note - Class E, 11.52% (3M SOFR + 6.11%, due 01/23/2031) ⁽⁶⁾ 11/30/23  1,575,000   1,523,290   1,536,885  0.22%
Marathon CLO VII Ltd. Secured Note - Class D, 11.05% (3M SOFR + 5.66%, due 10/28/2025) ⁽⁶⁾ ⁽⁷⁾ ⁽¹⁹⁾ 02/08/18  3,235,476   1,055,643   1,942,256  0.27%
Marathon CLO VIII Ltd. Secured Note - Class D-R, 12.10% (3M SOFR + 6.70%, due 10/18/2031) ⁽⁶⁾ 08/14/18  4,150,000   4,089,266   2,746,055  0.39%
Marathon CLO XI Ltd. Secured Note - Class D, 11.18% (3M SOFR + 5.76%, due 04/20/2031) ⁽⁶⁾ 02/06/18  1,650,000   1,650,000   1,149,060  0.16%
Neuberger Berman Loan Advisers CLO 31, Ltd. Secured Note - Class E-R, 12.18% (3M SOFR + 6.76%, due 04/20/2031) ⁽⁶⁾ 06/08/23  2,000,000   1,815,918   1,943,600  0.27%
Neuberger Berman Loan Advisers CLO 33, Ltd. Secured Note - Class E-R, 11.91% (3M SOFR + 6.51%, due 10/16/2033) ⁽⁶⁾ 07/27/23  1,000,000   938,805   958,000  0.14%
Neuberger Berman Loan Advisers CLO 45, Ltd. Secured Note - Class E, 11.91% (3M SOFR + 6.51%, due 10/14/2035) ⁽⁶⁾ 12/13/23  5,000,000   4,922,074   4,924,000  0.70%
Octagon 59, Ltd. Secured Note - Class E, 12.98% (3M SOFR + 7.60%, due 05/15/2035) ⁽⁶⁾ 06/12/23  3,375,000   3,108,772   3,151,575  0.44%
Octagon Investment Partners XXI, Ltd. Secured Note - Class D-RR, 12.64% (3M SOFR + 7.26%, due 02/14/2031) ⁽⁶⁾ 06/06/23  825,000   701,764   762,795  0.11%
Octagon Investment Partners 27, Ltd. Secured Note - Class F-R, 13.51% (3M SOFR + 8.11%, due 07/15/2030) ⁽⁶⁾ 07/05/18  900,000   853,333   626,940  0.09%
Octagon Investment Partners 43, Ltd. Secured Note - Class E, 12.24% (3M SOFR + 6.86%, due 10/25/2032) ⁽⁶⁾ 06/26/23  3,325,000   3,019,898   3,205,633  0.45%
Octagon Investment Partners 44, Ltd. Secured Note - Class E-R, 12.41% (3M SOFR + 7.01%, due 10/15/2034) ⁽⁶⁾ 08/27/21  762,500   762,500   621,743  0.09%
OZLM XXII, Ltd. Secured Note - Class D, 10.96% (3M SOFR + 5.56%, due 01/17/2031) ⁽⁶⁾ 02/05/18  900,000   897,612   766,890  0.11%
Regatta X Funding Ltd. Secured Note - Class D, 8.41% (3M SOFR + 3.01%, due 01/17/2031) ⁽⁶⁾ 06/02/22  1,850,000   1,783,349   1,815,035  0.26%
RR 3 Ltd. Secured Note - Class C-R2, 8.16% (3M SOFR + 2.76%, due 01/15/2030) ⁽⁶⁾ 10/27/21  875,000   867,604   853,125  0.12%
RR 4 Ltd. Secured Note - Class D, 11.51% (3M SOFR + 6.11%, due 04/15/2030) ⁽⁶⁾ 08/04/23  8,750,000   8,003,199   8,194,375  1.16%
RR 6 Ltd. Secured Note - Class D-R, 11.51% (3M SOFR + 6.11%, due 04/15/2036) ⁽⁶⁾ 06/26/23  4,260,000   3,787,376   3,996,306  0.56%
RR 8 Ltd. Secured Note - Class D, 12.06% (3M SOFR + 6.66%, due 04/15/2033) ⁽⁶⁾ 11/08/23  2,725,000   2,627,665   2,678,130  0.38%
Signal Peak CLO 5, Ltd. Secured Note - Class D, 8.29% (3M SOFR + 2.91%, due 04/25/2031) ⁽⁶⁾ 10/28/21  2,300,000   2,282,973   2,233,760  0.32%
Steele Creek CLO 2019-1, Ltd. Secured Note - Class E, 12.67% (3M SOFR + 7.27%, due 04/15/2032) ⁽⁶⁾ 03/22/19  3,091,000   2,976,005   2,692,570  0.38%
TICP CLO VII, Ltd. Secured Note - Class E-R, 12.71% (3M SOFR + 7.31%, due 04/15/2033) ⁽⁶⁾ 09/06/23  3,400,000   3,277,114   3,348,660  0.47%
Wehle Park CLO, Ltd. Secured Note - Class E, 12.16% (3M SOFR + 6.75%, due 04/21/2035) ⁽⁶⁾ 11/07/23  1,410,000   1,330,501   1,379,262  0.19%
Wind River 2019-2 CLO Ltd. Secured Note - Class E-R, 12.39% (3M SOFR + 7.00%, due 01/15/2035) ⁽⁶⁾ 02/04/22  1,912,500   1,806,579   1,716,469  0.24%
Total CLO Debt          140,937,216   141,137,791  19.95%
                    
CLO Equity ⁽⁸⁾                   
Structured Finance                   
United States                   
1988 CLO 1 Ltd. Income Note (effective yield 10.51%, maturity 10/15/2037) ⁽⁹⁾ ⁽¹⁸⁾ 09/23/22  7,876,000   5,734,283   4,909,049  0.69%
1988 CLO 2 Ltd. Income Note (effective yield 9.08%, maturity 04/15/2038) ⁽⁹⁾ ⁽¹⁸⁾ 02/08/23  9,334,000   6,540,687   5,326,091  0.75%
1988 CLO 3 Ltd. Income Note (effective yield 11.43%, maturity 10/15/2038) ⁽⁹⁾ ⁽¹⁸⁾ 09/12/23  9,267,000   7,099,398   7,020,869  0.99%
ALM VIII, Ltd. Preferred Share (effective yield 0.00%, maturity 10/20/2028) ⁽⁹⁾ ⁽¹¹⁾ 06/02/16  8,725,000      17,450  0.00%
Anchorage Credit Funding 12, Ltd. Income Note (effective yield 14.46%, maturity 10/25/2038) ⁽⁹⁾ 09/04/20  9,250,000   6,738,645   4,178,343  0.59%
Anchorage Credit Funding 13, Ltd. Subordinated Note (effective yield 13.27%, maturity 07/27/2039) ⁽⁹⁾ 05/25/21  1,200,000   1,099,039   695,349  0.10%
Ares XXXIV CLO Ltd. Subordinated Note (effective yield 15.00%, maturity 04/17/2033) ⁽⁹⁾ 09/16/20  18,075,000   6,886,291   5,403,443  0.76%
Ares XLI CLO Ltd. Income Note (effective yield 13.74%, maturity 04/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 11/29/16  29,388,000   14,407,266   11,030,572  1.56%
Ares XLIII CLO Ltd. Income Note (effective yield 10.14%, maturity 10/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ 04/04/17  30,850,000   15,323,058   10,741,936  1.52%
Ares XLIII CLO Ltd. Subordinated Note (effective yield 10.14%, maturity 10/15/2029) ⁽⁹⁾ 11/10/21  1,505,000   690,717   469,396  0.07%
Ares XLIV CLO Ltd. Subordinated Note (effective yield 12.75%, maturity 04/15/2034) ⁽⁹⁾ 10/06/21  10,000,000   3,875,355   2,900,629  0.41%
Ares XLVII CLO Ltd. Subordinated Note (effective yield 8.26%, maturity 04/15/2030) ⁽⁹⁾ 10/22/20  8,500,000   3,576,595   2,659,638  0.38%
Ares LI CLO Ltd. Income Note (effective yield 14.44%, maturity 07/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 01/25/19  13,353,849   8,571,879   6,976,839  0.98%
Ares LVIII CLO Ltd. Subordinated Note (effective yield 14.87%, maturity 01/15/2035) ⁽⁹⁾ 08/17/21  6,175,000   4,395,893   3,706,856  0.52%
Ares LXIV CLO Ltd. Subordinated Note (effective yield 19.75%, maturity 04/15/2035) ⁽⁹⁾ 01/26/23  15,875,000   12,235,195   11,590,835  1.64%
Bain Capital Credit CLO 2021-1, Limited Subordinated Note (effective yield 17.50%, maturity 04/18/2034) ⁽⁹⁾ 04/29/21  9,100,000   7,019,400   5,590,748  0.79%
Bain Capital Credit CLO 2021-7, Limited Subordinated Note (effective yield 28.28%, maturity 01/22/2035) ⁽⁹⁾ 09/05/23  5,050,000   3,039,413   3,184,308  0.45%
Bardin Hill CLO 2021-2 Ltd. Subordinated Note (effective yield 32.19%, maturity 10/25/2034) ⁽⁹⁾ ⁽¹⁰⁾ 09/24/21  5,550,000   3,256,936   3,371,373  0.48%
Barings CLO Ltd. 2018-I Income Note (effective yield 4.50%, maturity 04/15/2031) ⁽⁹⁾ ⁽¹⁰⁾ 02/23/18  20,808,000   9,631,930   5,987,095  0.85%
Barings CLO Ltd. 2019-I Income Note (effective yield 19.55%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 02/12/19  13,085,000   8,899,817   7,713,443  1.09%
Barings CLO Ltd. 2019-II Income Note (effective yield 16.93%, maturity 04/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 03/15/19  16,150,000   9,946,368   8,110,935  1.15%
Barings CLO Ltd. 2020-I Income Note (effective yield 36.23%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 09/04/20  5,550,000   2,813,234   3,437,612  0.49%
Barings CLO Ltd. 2021-II Subordinated Note (effective yield 21.54%, maturity 07/15/2034) ⁽⁹⁾ 09/07/22  9,250,000   6,804,598   6,096,599  0.86%
Barings CLO Ltd. 2021-III Subordinated Note (effective yield 16.58%, maturity 01/18/2035) ⁽⁹⁾ 11/17/21  2,000,000   1,499,616   1,152,619  0.16%
Barings CLO Ltd. 2022-I Income Note (effective yield 23.75%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 03/18/22  7,500,000   5,611,581   5,394,438  0.76%
Barings CLO Ltd. 2022-II Income Note (effective yield 36.10%, maturity 07/15/2072) ⁽⁹⁾ ⁽¹⁰⁾ 06/21/22  10,800,000   4,024,098   5,120,264  0.72%
Basswood Park CLO, Ltd. Subordinated Note (effective yield 14.33%, maturity 04/20/2034) ⁽⁹⁾ 08/17/21  4,750,000   3,867,485   3,221,454  0.45%
Battalion CLO IX Ltd. Income Note (effective yield 9.70%, maturity 07/15/2031) ⁽⁹⁾ ⁽¹⁰⁾ 07/09/15  18,734,935   8,698,014   5,730,854  0.81%
Battalion CLO 18 Ltd. Income Note (effective yield 36.98%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 08/25/20  8,400,000   4,529,900   5,107,304  0.72%
Battalion CLO XIX Ltd. Income Note (effective yield 28.76%, maturity 04/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 03/11/21  8,600,000   4,749,555   4,470,741  0.63%

 

See accompanying notes to the consolidated financial statements

 

31

 

 

Eagle Point Credit Company Inc. & Subsidiaries

Consolidated Schedule of Investments

As of December 31, 2023

(expressed in U.S. dollars)

 

 

Issuer ⁽¹⁾ Investment Description Acquisition
Date ⁽²⁾
 Principal
Amount /
Shares
  Cost  Fair Value ⁽³⁾  % of Net
Assets
 
CLO Equity ⁽⁸⁾ (continued)                    
Structured Finance (continued)                   
United States (continued)                   
Battalion CLO XXIII Ltd. Income Note (effective yield 24.50%, maturity 07/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 05/19/22 $8,800,000  $6,276,782  $4,841,691  0.68%
Bear Mountain Park CLO, Ltd. Income Note (effective yield 18.78%, maturity 07/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 07/13/22  12,875,000   10,586,626   11,005,320  1.55%
Bethpage Park CLO, Ltd. Income Note (effective yield 17.35%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 09/24/21  14,750,000   9,050,777   7,986,916  1.13%
BlueMountain CLO 2013-2 Ltd. Subordinated Note (effective yield 0.00%, maturity 10/22/2030) ⁽⁹⁾ ⁽¹²⁾ 10/21/14  23,000,000   5,451,809   1,610,000  0.23%
BlueMountain CLO 2018-1 Ltd. Subordinated Note (effective yield 54.67%, maturity 07/30/2030) ⁽⁹⁾ 03/26/20  5,550,000   864,578   710,518  0.10%
BlueMountain CLO XXIII Ltd. Subordinated Note (effective yield 12.33%, maturity 10/20/2031) ⁽⁹⁾ 02/24/21  6,340,000   3,761,803   2,829,112  0.40%
BlueMountain CLO XXIV Ltd. Subordinated Note (effective yield 30.51%, maturity 04/20/2034) ⁽⁹⁾ 06/16/20  7,375,000   3,907,782   4,065,225  0.57%
BlueMountain CLO XXV Ltd. Subordinated Note (effective yield 27.45%, maturity 07/15/2036) ⁽⁹⁾ 06/23/20  6,525,000   3,850,126   3,637,712  0.51%
Bristol Park CLO, Ltd. Income Note (effective yield 0.00%, maturity 04/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 11/01/16  34,250,000   13,114,484   8,286,716  1.17%
Carlyle Global Market Strategies CLO 2014-5, Ltd. Subordinated Note (effective yield 0.00%, maturity 07/15/2031) ⁽⁹⁾ ⁽¹²⁾ 06/02/16  10,800,000   2,532,422   1,944,000  0.27%
Carlyle US CLO 2017-4, Ltd. Income Note (effective yield 0.00%, maturity 01/15/2030) ⁽⁹⁾ ⁽¹²⁾ 10/13/17  9,000,000   3,787,336   2,430,000  0.34%
Carlyle US CLO 2018-1, Ltd. Subordinated Note (effective yield 0.31%, maturity 04/20/2031) ⁽⁹⁾ 03/23/21  4,730,000   1,992,882   1,417,797  0.20%
Carlyle US CLO 2018-4, Ltd. Subordinated Note (effective yield 9.66%, maturity 01/20/2031) ⁽⁹⁾ 02/18/21  6,625,000   3,988,553   3,106,768  0.44%
Carlyle US CLO 2019-4, Ltd. Subordinated Note (effective yield 21.22%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 04/13/21  7,005,000   5,269,898   5,064,943  0.72%
Carlyle US CLO 2021-1, Ltd. Income Note (effective yield 23.19%, maturity 04/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 02/02/21  13,425,000   7,084,672   6,889,693  0.97%
Carlyle US CLO 2021-4, Ltd. Subordinated Note (effective yield 15.75%, maturity 04/20/2034) ⁽⁹⁾ 11/17/21  11,475,000   9,522,836   7,868,479  1.11%
Carlyle US CLO 2021-7, Ltd. Income Note (effective yield 19.28%, maturity 10/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 08/11/21  10,400,000   7,279,922   6,438,143  0.91%
Carlyle US CLO 2022-1, Ltd. Income Note (effective yield 21.44%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 03/15/22  8,150,000   5,866,267   5,459,134  0.77%
Carlyle US CLO 2023-3, Ltd. Income Note (effective yield 15.62%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 07/06/23  9,400,000   7,267,027   6,436,391  0.91%
CIFC Funding 2013-II, Ltd. Income Note (effective yield 0.00%, maturity 10/18/2030) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 06/06/14  17,265,625   3,657,141   3,161,145  0.45%
CIFC Funding 2014, Ltd. Income Note (effective yield 0.00%, maturity 01/18/2031) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 06/06/14  16,033,750   4,188,857   3,085,870  0.44%
CIFC Funding 2014-III, Ltd. Income Note (effective yield 7.68%, maturity 10/22/2031) ⁽⁹⁾ 02/17/15  19,725,000   5,673,010   4,456,356  0.63%
CIFC Funding 2014-IV-R, Ltd. Income Note (effective yield 15.15%, maturity 01/17/2035) ⁽⁹⁾ 08/05/14  8,457,500   3,297,523   2,533,537  0.36%
CIFC Funding 2015-III, Ltd. Income Note (effective yield 0.00%, maturity 04/19/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 06/23/15  9,724,324   1,988,405   904,517  0.13%
CIFC Funding 2019-III, Ltd. Subordinated Note (effective yield 20.92%, maturity 10/16/2034) ⁽⁹⁾ 04/18/19  2,875,000   2,126,270   2,085,449  0.29%
CIFC Funding 2019-IV, Ltd. Income Note (effective yield 18.36%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 06/07/19  14,000,000   10,144,516   9,396,841  1.33%
CIFC Funding 2019-V, Ltd. Subordinated Note (effective yield 21.51%, maturity 01/15/2035) ⁽⁹⁾ 02/07/23  12,975,000   9,464,788   9,593,719  1.35%
CIFC Funding 2020-I, Ltd. Income Note (effective yield 32.94%, maturity 07/15/2032) ⁽⁹⁾ ⁽¹⁰⁾ 06/12/20  9,400,000   5,011,124   6,353,305  0.90%
CIFC Funding 2020-II, Ltd. Subordinated Note (effective yield 22.78%, maturity 10/20/2034) ⁽⁹⁾ 02/07/23  5,500,000   4,061,585   4,232,196  0.60%
CIFC Funding 2020-IV, Ltd. Income Note (effective yield 22.20%, maturity 01/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 12/11/20  7,900,000   5,619,815   5,393,282  0.76%
CIFC Funding 2021-III, Ltd. Income Note (effective yield 20.48%, maturity 07/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 04/23/21  17,275,000   10,203,565   9,512,312  1.34%
CIFC Funding 2021-VI, Ltd. Income Note (effective yield 19.65%, maturity 10/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 09/22/21  12,200,000   9,021,561   8,225,354  1.16%
CIFC Funding 2022-I, Ltd. Income Note (effective yield 20.18%, maturity 04/17/2037) ⁽⁹⁾ ⁽¹⁰⁾ 01/27/22  12,950,000   10,107,698   9,963,690  1.41%
CIFC Funding 2022-VI, Ltd. Income Note (effective yield 16.07%, maturity 07/16/2035) ⁽⁹⁾ ⁽¹⁰⁾ 08/01/22  10,700,000   8,559,398   7,653,766  1.08%
CIFC Funding 2023-I, Ltd. Income Note (effective yield 21.30%, maturity 10/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ 09/14/23  11,550,000   9,240,446   10,306,775  1.46%
Cutwater 2015-I, Ltd. Income Note (effective yield 0.00%, maturity 01/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 05/01/15  31,100,000   8,292,117   1,587,989  0.22%
Dewolf Park CLO, Ltd. Income Note (effective yield 0.00%, maturity 10/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 08/10/17  7,700,000   3,650,788   2,471,832  0.35%
Dryden 53 CLO, Ltd. Income Note (effective yield 0.00%, maturity 01/15/2031) ⁽⁹⁾ ⁽¹²⁾ 11/28/17  7,684,999   2,773,155   1,767,550  0.25%
Dryden 64 CLO, Ltd. Subordinated Note (effective yield 3.48%, maturity 04/18/2031) ⁽⁹⁾ 05/11/20  9,600,000   2,953,426   2,379,454  0.34%
Dryden 68 CLO, Ltd. Income Note (effective yield 15.06%, maturity 07/15/2049) ⁽⁹⁾ ⁽¹⁰⁾ 05/30/19  14,080,000   9,078,434   6,811,315  0.96%
Dryden 85 CLO, Ltd. Income Note (effective yield 25.41%, maturity 10/15/2049) ⁽⁹⁾ ⁽¹⁰⁾ 09/17/20  8,610,000   6,117,999   5,712,768  0.81%
Dryden 94 CLO, Ltd. Income Note (effective yield 23.10%, maturity 07/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ 04/28/22  12,200,000   8,688,968   7,928,814  1.12%
Dryden 109 CLO, Ltd. Subordinated Note (effective yield 22.33%, maturity 04/20/2035) ⁽⁹⁾ 02/15/23  8,100,000   6,157,794   5,663,300  0.80%
Eaton Vance CLO 2015-1, Ltd. Subordinated Note (effective yield 0.00%, maturity 01/20/2030) ⁽⁹⁾ ⁽¹²⁾ 06/05/20  6,372,500   1,537,201   1,019,600  0.14%
Eaton Vance CLO 2020-1, Ltd. Subordinated Note (effective yield 20.77%, maturity 10/15/2034) ⁽⁹⁾ 08/08/23  6,500,000   4,758,950   4,291,690  0.61%
Eaton Vance CLO 2020-2, Ltd. Subordinated Note (effective yield 23.42%, maturity 01/15/2035) ⁽⁹⁾ 09/16/22  11,175,000   7,810,213   7,244,469  1.02%
Elmwood CLO 14 Ltd. Subordinated Note (effective yield 23.03%, maturity 04/20/2035) ⁽⁹⁾ 06/06/23  7,000,000   5,045,933   5,459,465  0.77%
Elmwood CLO 17 Ltd. Subordinated Note (effective yield 21.32%, maturity 07/17/2035) ⁽⁹⁾ 04/25/23  6,550,000   4,856,391   5,174,243  0.73%
Elmwood CLO 21 Ltd. Subordinated Note (effective yield 17.93%, maturity 10/20/2036) ⁽⁹⁾ 10/27/23  4,900,000   3,393,250   3,335,160  0.47%
Generate CLO 9 Ltd. Subordinated Note (effective yield 26.39%, maturity 10/20/2034) ⁽⁹⁾ 04/27/22  11,250,000   8,425,285   9,276,862  1.31%
Greywolf CLO IV, Ltd. Subordinated Note (effective yield 22.64%, maturity 04/17/2034) ⁽⁹⁾ 03/26/21  7,520,000   4,179,313   3,374,074  0.48%
HarbourView CLO VII-R, Ltd. Subordinated Note (effective yield 0.00%, maturity 07/18/2031) ⁽⁹⁾ ⁽¹²⁾ 09/29/17  1,100,000   399,175   110  0.00%
Kings Park CLO, Ltd. Subordinated Note (effective yield 28.47%, maturity 01/21/2035) ⁽⁹⁾ 04/27/23  4,547,500   2,700,279   2,957,466  0.42%
KKR CLO 36 Ltd. Subordinated Note (effective yield 23.57%, maturity 10/15/2034) ⁽⁹⁾ 05/03/22  6,000,000   4,491,071   3,934,963  0.56%
Lake Shore MM CLO I Ltd. Income Note (effective yield 20.89%, maturity 04/15/2033) ⁽⁹⁾ ⁽¹⁰⁾ 03/08/19  14,550,000   9,420,514   6,257,519  0.88%
Madison Park Funding XXI, Ltd. Subordinated Note (effective yield 26.35%, maturity 10/15/2049) ⁽⁹⁾ 08/22/16  6,462,500   3,608,077   3,428,433  0.48%
Madison Park Funding XXII, Ltd. Subordinated Note (effective yield 21.48%, maturity 01/15/2033) ⁽⁹⁾ 10/30/18  6,327,082   3,704,249   3,261,624  0.46%
Madison Park Funding XXXIV, Ltd. Subordinated Note (effective yield 24.79%, maturity 04/25/2048) ⁽⁹⁾ 09/27/22  8,300,000   5,004,138   4,938,415  0.70%
Madison Park Funding XL, Ltd. Subordinated Note (effective yield 18.95%, maturity 02/28/2047) ⁽⁹⁾ 06/02/16  16,550,000   5,019,835   4,554,815  0.64%
Madison Park Funding XLIV, Ltd. Subordinated Note (effective yield 19.63%, maturity 01/23/2048) ⁽⁹⁾ 11/16/18  8,744,821   4,721,604   4,384,603  0.62%
Madison Park Funding XLVII, Ltd. Subordinated Note (effective yield 22.72%, maturity 01/19/2034) ⁽⁹⁾ 04/29/21  2,000,000   1,589,267   1,553,587  0.22%
Madison Park Funding LXII, Ltd. Subordinated Note (effective yield 18.74%, maturity 07/17/2036) ⁽⁹⁾ 07/27/23  5,600,000   4,235,000   3,797,397  0.54%
Marathon CLO VI Ltd. Subordinated Note (effective yield 0.00%, maturity 05/13/2028) ⁽⁹⁾ ⁽¹²⁾ 06/06/14  6,375,000   191,250   638  0.00%
Marathon CLO VII Ltd. Subordinated Note (effective yield 0.00%, maturity 10/28/2025) ⁽⁹⁾ ⁽¹²⁾ 10/30/14  10,526,000   52,630   1,053  0.00%
Marathon CLO VIII Ltd. Income Note (effective yield 0.00%, maturity 10/18/2031) ⁽⁹⁾ ⁽¹²⁾ 06/16/15  16,333,000   7,343,630   979,980  0.14%
Marathon CLO X Ltd. Subordinated Note (effective yield 0.00%, maturity 11/15/2029) ⁽⁹⁾ ⁽¹²⁾ 08/09/17  2,550,000   229,500   229,500  0.03%
Marathon CLO XI Ltd. Subordinated Note (effective yield 0.00%, maturity 04/20/2031) ⁽⁹⁾ ⁽¹²⁾ 02/06/18  2,075,000   1,104,318   290,500  0.04%
Marathon CLO XII Ltd. Subordinated Note (effective yield 0.00%, maturity 04/18/2031) ⁽⁹⁾ ⁽¹²⁾ 09/06/18  4,500,000   2,251,667   540,000  0.08%
Octagon Investment Partners XIV, Ltd. Income Note (effective yield 0.00%, maturity 07/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 06/06/14  20,572,125   5,118,801   344,142  0.05%
Octagon Investment Partners 26, Ltd. Income Note (effective yield 7.19%, maturity 07/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ 03/23/16  13,750,000   3,467,053   2,451,071  0.35%
Octagon Investment Partners 27, Ltd. Income Note (effective yield 11.83%, maturity 07/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ 05/25/16  11,804,048   3,284,243   2,315,267  0.33%
Octagon Investment Partners 29, Ltd. Subordinated Note (effective yield 11.39%, maturity 01/24/2033) ⁽⁹⁾ 05/05/21  9,875,000   5,969,906   3,730,019  0.53%
Octagon Investment Partners 37, Ltd. Subordinated Note (effective yield 3.41%, maturity 07/25/2030) ⁽⁹⁾ 05/25/21  1,550,000   809,033   491,003  0.07%
Octagon Investment Partners 44, Ltd. Income Note (effective yield 15.59%, maturity 07/20/2034) ⁽⁹⁾ ⁽¹⁰⁾ 06/19/19  13,500,000   8,768,438   6,299,497  0.89%
Octagon Investment Partners 45, Ltd. Subordinated Note (effective yield 25.57%, maturity 04/15/2035) ⁽⁹⁾ 07/27/23  18,155,000   11,114,336   10,527,751  1.49%
Octagon Investment Partners 46, Ltd. Income Note (effective yield 32.94%, maturity 07/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ 06/26/20  10,650,000   4,736,280   4,886,531  0.69%
Octagon Investment Partners 48, Ltd. Subordinated Note (effective yield 20.04%, maturity 10/20/2034) ⁽⁹⁾ 03/25/22  10,000,000   7,724,935   6,616,631  0.93%
Octagon Investment Partners 50, Ltd. Income Note (effective yield 26.83%, maturity 01/16/2035) ⁽⁹⁾ ⁽¹⁰⁾ 10/06/20  9,250,000   5,097,161   4,812,240  0.68%
Octagon 51, Ltd. Income B Note (effective yield 18.62%, maturity 07/20/2034) ⁽⁹⁾ 04/16/21  10,350,000   7,899,917   6,560,349  0.93%
Octagon 55, Ltd. Subordinated Note (effective yield 14.11%, maturity 07/20/2034) ⁽⁹⁾ 02/11/22  8,700,000   6,500,565   4,961,475  0.70%
Octagon 58, Ltd. Income Note (effective yield 23.17%, maturity 07/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ 04/21/22  14,900,000   10,519,287   10,051,865  1.42%
OFSI BSL VIII, Ltd. Income Note (effective yield 0.00%, maturity 08/16/2037) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 07/18/17  7,719,320   3,277,866   475,736  0.07%
Regatta VII Funding Ltd. Subordinated Note (effective yield 9.04%, maturity 12/20/2028) ⁽⁹⁾ 10/01/21  6,450,000   2,714,721   1,798,910  0.25%
Regatta VII Funding Ltd. Class R1A Note (effective yield 51.70%, maturity 06/20/2034) ⁽⁹⁾ 10/01/21  10,126,500   18,693   21,436  0.00%
Regatta VII Funding Ltd. Class R2 Note (effective yield 100.52%, maturity 06/20/2034) ⁽⁹⁾ 10/01/21  10,126,500   112,101   192,675  0.03%
Regatta XX Funding Ltd. Income Note (effective yield 20.17%, maturity 10/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ 08/04/21  11,000,000   7,174,485   6,929,622  0.98%
Regatta XXI Funding Ltd. Subordinated Note (effective yield 18.94%, maturity 10/20/2034) ⁽⁹⁾ 06/10/22  9,000,000   6,360,799   6,078,653  0.86%
Regatta XXII Funding Ltd. Subordinated Note (effective yield 24.16%, maturity 07/20/2035) ⁽⁹⁾ 06/20/23  3,000,000   2,108,695   2,368,019  0.33%
Regatta XXIV Funding Ltd. Subordinated Note (effective yield 21.55%, maturity 01/20/2035) ⁽⁹⁾ 02/14/23  4,300,000   2,726,454   2,817,016  0.40%
Rockford Tower CLO 2019-1, Ltd. Subordinated Note (effective yield 23.47%, maturity 04/20/2034) ⁽⁹⁾ 06/14/21  10,300,000   7,175,009   5,566,411  0.79%
Rockford Tower CLO 2021-3, Ltd. Subordinated Note (effective yield 15.98%, maturity 10/20/2034) ⁽⁹⁾ 04/22/22  26,264,625   20,300,441   14,368,493  2.03%
Rockford Tower CLO 2022-3, Ltd. Subordinated Note (effective yield 22.67%, maturity 01/20/2035) ⁽⁹⁾ 07/27/23  3,600,000   2,560,500   2,534,447  0.36%
RR 23 Ltd. Subordinated Note (effective yield 19.59%, maturity 10/15/2035) ⁽⁹⁾ 10/12/23  6,800,000   4,165,000   4,261,955  0.60%

 

See accompanying notes to the consolidated financial statements

 

32

 

 

Eagle Point Credit Company Inc. & Subsidiaries

Consolidated Schedule of Investments

As of December 31, 2023

(expressed in U.S. dollars)

 

 

Issuer ⁽¹⁾ Investment Description Acquisition
Date ⁽²⁾
 Principal
Amount /
Shares
  Cost  Fair Value ⁽³⁾  % of Net
Assets
 
CLO Equity ⁽⁸⁾ (continued)                    
Structured Finance (continued)                   
United States (continued)                   
Steele Creek CLO 2018-1, Ltd. Income Note (effective yield 6.24%, maturity 04/15/2048) ⁽⁹⁾ ⁽¹⁰⁾ 03/28/18 $11,370,000  $4,782,510  $1,921,272  0.27%
Steele Creek CLO 2019-1, Ltd. Income Note (effective yield 15.96%, maturity 04/15/2049) ⁽⁹⁾ ⁽¹⁰⁾ 03/22/19  8,500,000   5,240,620   2,416,907  0.34%
Unity-Peace Park CLO, Ltd. Subordinated Note (effective yield 20.12%, maturity 04/20/2035) ⁽⁹⁾ 09/07/23  2,000,000   1,475,755   1,465,664  0.21%
Venture 41 CLO, Limited Subordinated Note (effective yield 23.13%, maturity 01/20/2034) ⁽⁹⁾ 11/30/21  3,325,000   2,412,440   1,893,935  0.27%
Wellman Park CLO, Ltd. Subordinated Note (effective yield 21.79%, maturity 07/15/2034) ⁽⁹⁾ 09/20/23  10,275,000   6,887,528   7,105,477  1.00%
Wellman Park CLO, Ltd. Class M-1 Notes (effective yield 19.22%, maturity 07/15/2034) ⁽⁹⁾ 09/20/23  10,275,000   96,011   71,611  0.01%
Wellman Park CLO, Ltd. Class M-2 Notes (effective yield 15.27%, maturity 07/15/2034) ⁽⁹⁾ 09/20/23  10,275,000   240,794   168,228  0.02%
Whetstone Park CLO, Ltd. Subordinated Note (effective yield 19.41%, maturity 01/20/2035) ⁽⁹⁾ 05/03/22  10,560,000   8,270,446   7,731,068  1.09%
Wind River 2013-2 CLO Ltd. Income Note (effective yield 0.00%, maturity 10/18/2030) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 06/06/14  11,597,500   3,772,729   972,648  0.14%
Wind River 2014-1 CLO Ltd. Subordinated Note (effective yield 0.00%, maturity 07/18/2031) ⁽⁹⁾ ⁽¹²⁾ 05/05/16  9,681,764   2,436,031   580,906  0.08%
Wind River 2014-3 CLO Ltd. Subordinated Note (effective yield 0.00%, maturity 10/22/2031) ⁽⁹⁾ ⁽¹²⁾ 12/17/14  11,000,000   3,674,178   1,870,000  0.26%
Wind River 2017-1 CLO Ltd. Income Note (effective yield 16.58%, maturity 04/18/2036) ⁽⁹⁾ ⁽¹⁰⁾ 02/02/17  17,700,000   10,156,909   7,229,380  1.02%
Wind River 2017-3 CLO Ltd. Income Note (effective yield 15.67%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 08/09/17  23,940,000   14,426,092   10,073,345  1.42%
Wind River 2018-1 CLO Ltd. Income Note (effective yield 8.29%, maturity 07/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ 06/22/18  15,750,000   8,871,735   5,706,557  0.81%
Wind River 2019-2 CLO Ltd. Income Note (effective yield 27.39%, maturity 01/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ 09/20/19  13,470,000   8,305,469   7,846,135  1.11%
Wind River 2022-2 CLO Ltd. Income Note (effective yield 26.81%, maturity 07/20/2035) ⁽⁹⁾ ⁽¹⁰⁾ 06/03/22  8,950,000   6,246,739   5,563,131  0.79%
Zais CLO 3, Limited Income Note (effective yield 0.00%, maturity 07/15/2031) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 04/08/15  16,871,644   5,727,939   1,496,652  0.21%
Zais CLO 5, Limited Subordinated Note (effective yield 0.00%, maturity 10/15/2028) ⁽⁹⁾ ⁽¹²⁾ 09/23/16  5,950,000   595   595  0.00%
Zais CLO 6, Limited Subordinated Note (effective yield 0.00%, maturity 07/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ 05/03/17  11,600,000      27,514  0.00%
Zais CLO 7, Limited Income Note (effective yield 0.00%, maturity 04/15/2030) ⁽⁹⁾ ⁽¹²⁾ 09/11/17  12,777,500   1,278   1,278  0.00%
Zais CLO 8, Limited Subordinated Note (effective yield 0.00%, maturity 04/15/2029) ⁽⁹⁾ ⁽¹²⁾ 10/11/18  750,000   75   75  0.00%
Zais CLO 9, Limited Subordinated Note (effective yield 0.00%, maturity 07/20/2031) ⁽⁹⁾ ⁽¹²⁾ 10/29/18  3,015,000   1,635,162   69,606  0.01%
Total United States          773,539,705   630,486,140  89.05%
European Union - Various                   
Dryden 88 Euro CLO 2020 DAC Subordinated Note (effective yield 13.61%, maturity 07/20/2034) ⁽⁹⁾ ⁽¹³⁾ 04/23/21  600,000   566,264   343,672  0.05%
BBAM European CLO II DAC Subordinated Note (effective yield 28.38%, maturity 10/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹³⁾ 11/05/21  1,000,000   1,153,666   1,070,733  0.15%
OCP Euro CLO 2019-3 DAC Subordinated Note (effective yield 21.05%, maturity 04/20/2033) ⁽⁹⁾ ⁽¹³⁾ 05/26/21  1,500,000   1,277,896   1,065,136  0.15%
Total European Union - Various          2,997,826   2,479,541  0.35%
Total CLO Equity          776,537,531   632,965,681  89.40%
                    
Loan Accumulation Facilities ⁽¹⁴⁾                   
Structured Finance                   
United States                   
Steamboat XXXII Ltd. Loan Accumulation Facility ⁽⁹⁾ 11/22/21  3,559,856   3,559,856   3,559,887  0.50%
Steamboat XXXIX Ltd. Loan Accumulation Facility ⁽⁹⁾ 04/13/22  4,817,500   4,817,500   4,802,108  0.68%
Steamboat XLII Ltd. Loan Accumulation Facility ⁽⁹⁾ 09/06/22  1,920,000   1,920,000   1,937,806  0.27%
Steamboat XLIV Ltd. Loan Accumulation Facility ⁽⁹⁾ 03/21/23  5,935,000   5,935,000   5,949,145  0.84%
Steamboat XLV Ltd. Loan Accumulation Facility ⁽⁹⁾ 03/14/23  5,197,500   5,197,500   5,215,838  0.74%
Total Loan Accumulation Facilities          21,429,856   21,464,784  3.03%
                    
Asset Backed Securities                   
Structured Finance                   
France                   
FCT Alma 2022 Mezzanine Notes, 12.00% (due 08/04/2025) ⁽⁹⁾ ⁽¹³⁾ ⁽¹⁵⁾ 08/02/23  14,700,000   15,959,727   16,283,409  2.30%
Ireland                   
Cork Harmony Consumer Loans DAC Mezzanine Loan, 14.33% (1M EURIBOR + 10.50%, due 07/14/2026) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ ⁽¹⁶⁾ 07/13/23  7,540,714   8,283,444   8,325,359  1.18%
Total Asset Backed Securities          24,243,171   24,608,768  3.48%
                    
Bank Debt Term Loan                   
Consumer Products                   
United States                   
JP Intermediate B LLC Term B 1L Senior Secured Loan, 11.14% (3M LIBOR + 5.50%, due 08/21/2027) ⁽⁶⁾ 03/02/21  502,328   489,834   105,489  0.01%
                    
CFO Debt                   
Structured Finance                   
United States                   
Glendower Capital Secondaries CFO, LLC Class B Loan, Delayed Draw, 11.50% (due 07/12/2038) ⁽⁹⁾ ⁽¹⁵⁾ ⁽¹⁶⁾ 07/13/23  793,447   772,336   801,461  0.11%
Glendower Capital Secondaries CFO, LLC Class C Loan, Delayed Draw, 14.50% (due 07/12/2038) ⁽⁹⁾ ⁽¹⁵⁾ ⁽¹⁶⁾ 07/13/23  363,318   353,651   367,315  0.05%
Total CFO Debt          1,125,987   1,168,776  0.16%
                    
CFO Equity ⁽⁸⁾                   
Structured Finance                   
United States                   
Glendower Capital Secondaries CFO, LLC Subordinated Loan, Delayed Draw (effective yield 44.85%, maturity 07/12/2038) ⁽⁹⁾ ⁽¹⁶⁾ 07/13/23  828,233   828,233   948,792  0.13%
                    
Common Stock                   
Financial Services                   
United States                   
Delta Financial Holdings LLC Common Units ⁽⁹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ 07/19/23  1   1,147   574  0.00%
Delta Leasing SPV III, LLC Common Equity ⁽⁹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ 07/19/23  18   18   9  0.00%
Lender MCS Holdings, Inc. Common Stock ⁽¹⁹⁾ 08/12/22  589      6,185  0.00%
Senior Credit Corp 2022 LLC Common Stock ⁽²⁰⁾ 01/30/23  1,764,239   1,764,239   2,006,899  0.28%
Total Financial Services          1,765,404   2,013,667  0.28%
Leisure                   
United States                   
All Day Holdings LLC Common Stock ⁽¹⁹⁾ 08/19/22  560      8  0.00%
Oil & Gas                   
United States                   
McDermott International Ltd Common Stock ⁽¹⁹⁾ 12/31/20  243,875   126,820   14,633  0.00%
Total Common Stock          1,892,224   2,028,308  0.28%
                    
Corporate Bonds                   
Financial Services                   
United States                   
Delta Leasing SPV III, LLC Notes, Delayed Draw, 13.00% (due 07/18/2030) ⁽⁷⁾ ⁽⁹⁾ ⁽¹⁵⁾ ⁽¹⁶⁾ ⁽²⁰⁾ 07/19/23  2,956,270   2,956,270   2,957,154  0.42%
Senior Credit Corp 2022 LLC Senior Unsecured, 8.50% (due 12/05/2028) ⁽¹⁵⁾ ⁽²⁰⁾ 01/30/23  4,116,558   4,116,558   4,116,558  0.58%
Total Financial Services          7,072,828   7,073,712  1.00%
Oil & Gas                   
United States                   
Energy Ventures Gom LLC / EnVen Finance Corp Second Lien, 11.75% (due 04/15/2026) ⁽¹⁵⁾ 06/15/21  533,000   545,753   555,319  0.08%
Total Corporate Bonds          7,618,581   7,629,031  1.08%

 

See accompanying notes to the consolidated financial statements

 

33

 

 

Eagle Point Credit Company Inc. & Subsidiaries

Consolidated Schedule of Investments

As of December 31, 2023

(expressed in U.S. dollars)

 

 

Issuer ⁽¹⁾ Investment Description Acquisition
Date ⁽²⁾
 Principal
Amount /
Shares
  Cost  Fair Value ⁽³⁾  % of Net
Assets
 
Preferred Stock                   
Financial Services                   
United States                   
Delta Financial Holdings LLC Preferred Units ⁽⁹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ 07/19/23 $252  $251,801  $251,888  0.04%
                    
Regulatory Capital Relief Securities                   
Banking                   
Canada                   
Boreal Series 2022-2 Guarantee Linked Note - Class F, 18.50% (3M CDOR + 13.00%, due 02/20/2028) ⁽⁶⁾ ⁽⁹⁾ ⁽¹⁷⁾ 11/30/22  4,550,000   3,382,020   3,433,856  0.48%
France                   
AASFL 2022-1 Credit Linked Note - Class B, 16.38% (1M EURIBOR + 12.50%, due 12/27/2030) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ 11/22/22  3,100,000   3,192,845   3,422,651  0.48%
BNP Paribas Marianne Credit Linked Note, 13.44% (3M EURIBOR + 9.50%, due 10/12/2032) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ 09/22/23  1,200,000   1,277,580   1,324,888  0.19%
FCT Junon 2023-1 Class A Notes, 13.71% (3M EURIBOR + 9.75%, due 11/08/2033) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ 09/26/23  4,800,000   5,074,320   5,299,502  0.75%
PXL 2022-1 Junior Credit Linked Note, 16.80% (3M EURIBOR + 12.875%, due 12/29/2029) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ 12/16/22  3,800,000   4,025,