Eagle Point Credit Company Inc. (NYSE:ECC) (NYSE:ECCA) (the
“Company”) today announced net income for the quarter ended June
30, 2015 and net asset value as of June 30, 2015 in addition to
certain portfolio activity through August 21, 2015.
SECOND QUARTER HIGHLIGHTS
For the quarter ended June 30, 2015, the Company had net income
of $6.4 million, or $0.46 per share of common stock. The net asset
value (“NAV”) of the Company as of June 30, 2015 was $257.2
million, or $18.62 per share of common stock.
The Company’s net income of $6.4 million was comprised of total
investment income of $10.2 million and a net gain on investments of
$0.1 million, offset by total expenses of ($3.9) million. Expenses
include ($0.5) million of interest expense related to the Company’s
recently issued Series A Term Preferred Stock.
During the quarter, the Company received $20.1 million of cash
flow from its investment portfolio, or $1.46 per share of common
stock.
During the second quarter, the Company invested in 5
collateralized loan obligation (“CLO”) equity positions, 2 new loan
accumulation facility investments and additional follow-on loan
accumulation facility investments. The total amount of net capital
invested in the period was $25.1 million. The Company also
purchased several small CLO debt positions, in each case in
conjunction with a CLO equity purchase. 3 loan accumulation
facilities were monetized as their associated CLOs priced and
closed.
As of June 30, 2015, the weighted average effective yield on the
Company’s CLO equity portfolio was 16.47%. The weighted average
effective yield of these CLO equity investments includes a
provision for credit losses.
The closing price per share of the Company’s common stock on
June 30, 2015 was $20.23, representing an 8.65% premium to net
asset value as of such date.
As of June 30, 2015 on a look-through basis, the Company had
exposure to approximately 1,048 unique corporate obligors. The
largest look-through obligor represented 0.87% of the Company’s CLO
equity and loan accumulation facility portfolio. The top-ten
largest look-through obligors represented 6.74% of the Company’s
CLO equity and loan accumulation facility portfolio.
ADDITIONAL INFORMATION
The Company has made available on its website,
http://eaglepointcreditcompany.com (in the portfolio overview
section), its Semiannual Report, which includes the Company’s
unaudited financial statements as of and for the period ended June
30, 2015. The Company has also published an investor presentation
which has additional information about the Company and its
portfolio as of and for the quarter ended June 30, 2015. In
addition, the Company makes monthly unaudited management estimates
of the Company’s net asset value available on its website.
THIRD QUARTER PORTFOLIO ACTIVITY THROUGH AUGUST 21,
2015
Since June 30, 2015, the Company has received cash distributions
on its investment portfolio totaling $14.6 million, or $1.06 per
share of common stock.
As of August 21, 2015, the Company has fully deployed the net
proceeds from its previous offering of Series A Term Preferred
Stock and, as a result, expects net investment income to grow
compared to the quarter ended June 30, 2015, under current market
conditions. The Company has made 1 new CLO equity investment, 3 new
loan accumulation facility investments and additional follow-on
loan accumulation facility investments during the third
quarter.
DISTRIBUTIONS
The Company paid a distribution of $0.60 per share of common
stock for the quarter ended June 30, 2015 on July 31, 2015. The
distribution represented approximately a 12% annualized rate, based
on the Company’s initial public offering (“IPO”) price of $20. The
Company intends to pay a quarterly distribution on its shares of
common stock for the third quarter of 2015, which the Company
expects to declare within the next two weeks. The Company expects
the distribution to be in line with its prior distributions of 12%
per annum of the IPO price.
The Company paid a distribution of $0.161459 per share of the
Series A Term Preferred Stock (NYSE: ECCA) on July 31, 2015, for
stockholders of record on July 15, 2015. The distribution
represented a 7.75% annualized rate, based on the Company’s $25
liquidation preference per share. Additionally and as previously
disclosed, the Company declared distributions of $0.161459 per
share on its Series A Term Preferred Stock, payable on each of
August 31, 2015 and September 30, 2015, for stockholders of record
on August 17, 2015 and September 15, 2015, respectively.
CONFERENCE CALLS
As previously disclosed, the Company will host a conference call
at 11:00 a.m. (Eastern Time) on Wednesday, August 26, 2015 to
discuss the quarterly financial results and portfolio update. All
interested parties may participate in the conference call by
dialing (877) 201-0168 (domestic) or (647) 788-4901(international),
and entering Conference ID 90753651 approximately 10 to 15 minutes
prior to the call. An archived replay of the call will be available
shortly after the call until September 26, 2015. To hear the
replay, please dial (855) 859-2056 (domestic) or (404) 537-3406
(international). For the replay, enter conference ID 90753651.
In addition, the Company plans to arrange a conference call in
early September to provide an overview of the potential tax
treatment of a CLO equity investment. Details of the call will
follow shortly.
ABOUT EAGLE POINT CREDIT COMPANY
The Company is a non-diversified, closed-end management
investment company. The Company’s investment objective is to
generate high current income and capital appreciation primarily
through investment in equity and junior debt tranches of
collateralized loan obligations. The Company is externally managed
and advised by Eagle Point Credit Management LLC. The principals of
Eagle Point Credit Management LLC are Thomas P. Majewski, Daniel W.
Ko and Daniel M. Spinner. The Company makes certain unaudited
portfolio information is available on its website on a monthly
basis as well as certain other unaudited financial information
(www.eaglepointcreditcompany.com).
FORWARD-LOOKING STATEMENTS
This press release 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 press release 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
prospectus and the Company’s other 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 press release.
Source: Eagle Point Credit Company Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20150826005612/en/
Investor Relations:Eagle Point Credit Company Inc.Kenneth P.
Onorio, 203-340-8500Chief Financial
OfficerIR@EaglePointCredit.com
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