Eagle Point Credit Company Inc. Announces Company Update for September 2015
October 14 2015 - 6:28PM
Business Wire
Eagle Point Credit Company Inc. (NYSE:ECC) (NYSE:ECCA) (the
“Company”) has today announced certain estimated portfolio
information for the month ended September 30, 2015.
As with the prior month, during September, many holdings in the
Company’s investment portfolio continued to face pricing pressure
consistent with the price volatility faced in the broader global
markets. Based on preliminary results, the Company’s unaudited
estimate of its net asset value (“NAV”) per share of common stock
as of September 30, 2015 was between $15.76 and
$15.86. This range reflects management’s preliminary estimate for
the period ending September 30, 2015, is announced for
information purposes only and is subject to revision when the
Company’s board of directors determines the quarter-end NAV. The
range of estimated NAV per share reflects a reduction for the
Company’s previously declared, but currently unpaid, distribution
of $0.60 per share of common stock, which is carried as a liability
until paid. This distribution is payable on October 30, 2015 to
stockholders of record as of September 30, 2015.
Chief Executive Officer Thomas Majewski commented, “Even during
this period of mark-to-market price volatility, we continue to be
pleased with the cash flow generated by the Company’s investment
portfolio.”
During the Company’s quarter ended September 30, 2015, the
Company received approximately $16.7 million (or approximately
$1.21 per share of common stock) in cash distributions on its
investment portfolio. In its current fiscal quarter ending December
31, 2015, the Company expects to receive in excess of $17.5 million
(or approximately $1.27 per share) in cash distributions on its
investment portfolio. The majority of these cash flows are expected
to be received by the end of October 2015. Based on a review of
these cash flows and its portfolio, the Company does not anticipate
a material change in the internal return estimates for the
Company’s CLO equity positions.
Going forward, the Company intends to make a preliminary monthly
estimate of the range of the Company’s NAV per share of common
stock available on its website (www.eaglepointcreditcompany.com)
within the first 15 days after month end. Thereafter, toward the
latter part of the each month, and in line with the Company’s usual
practice for prior months, the Company intends to continue to make
additional portfolio information available on its website,
including a monthly portfolio update and an updated estimate of
NAV, if applicable.
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
available each month on its website in addition to making certain
other unaudited financial information available on its website
(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
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 press
release.
FURTHER INFORMATION REGARDING PROJECTED FINANCIAL
INFORMATION
The projection of cash distributions expected to be received
from the Company’s investment portfolio during the fiscal quarter
ending December 31, 2015 reflects management’s judgment as of the
date of this press release of conditions it expects to exist and
the course of action it expects the Company to take during the
three months ending December 31, 2015. The projected amount is
based on information included in monthly CLO trustee reports and
assumes that the CLO investments held by the Company comply with
their distribution waterfall requirements for the current period.
Although the Company considers its assumptions to be reasonable as
of the date of this press release, such assumptions are subject to
a wide variety of significant business, economic and competitive
risks and uncertainties that could cause actual results to differ
materially from those contained in the projection, including risks
and uncertainties described in the Company’s filings with the SEC,
such as the risks described as under the heading “Investment Risk
Factors and Concentration of Investments” in the notes to the
Company’s consolidated financial statements included in the
Company’s Semi-Annual Report to Stockholders for the six months
ended June 30, 2015. Accordingly, there can be no assurance that
the projection is indicative of the Company’s future performance or
that actual results will not differ materially from those presented
in the projection.
The projected cash distribution information was not prepared
with a view toward complying with the guidelines established by the
American Institute of Certified Public Accountants with respect to
prospective financial information, but, in the Company’s view, was
prepared on a reasonable basis and reflects the best currently
available estimates and judgments of Company management. However,
this information is not fact and readers of this press release
should not rely upon this information as being necessarily
indicative of future results or to place undue reliance on the
projected financial information. Inclusion of the projected
financial information in this press release should not be regarded
as a representation by any person that the results contained in the
projected financial information will be achieved.
Neither the Company’s independent registered public accounting
firm nor any other independent accountants has compiled, examined,
or performed any procedures with respect to the projected financial
information contained herein, nor has either one of them expressed
any opinion or any other form of assurance on such information or
its achievability, and assume no responsibility for, and disclaim
any association with, the prospective financial information.
The Company does not generally plan to publish projected
financial information. Accordingly, the Company does not intend to
update or otherwise revise the projected financial information for
the fiscal quarter ending December 31, 2015 to reflect
circumstances existing since its preparation or to reflect the
occurrence of unanticipated events, even in the event that any or
all of the underlying assumptions are shown to be in error.
Furthermore, the Company does not intend to update or revise the
prospective financial information to reflect changes in general
economic or industry conditions.
Source: Eagle Point Credit Company Inc.
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version on businesswire.com: http://www.businesswire.com/news/home/20151014006687/en/
Investor Relations:Eagle Point Credit Company Inc.Kenneth P.
Onorio, 203-340-8500Chief Financial
OfficerIR@EaglePointCredit.com
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