Eagle Point Credit Company Inc. (NYSE:ECC) (NYSE:ECCA) (the
“Company”) today announced financial results for the quarter ended
September 30, 2015 and net asset value (“NAV”) as of September 30,
2015 in addition to certain portfolio activity through November 11,
2015.
THIRD QUARTER HIGHLIGHTS
For the quarter ended September 30, 2015, the Company had a net
loss of $30.4 million, or $2.20 per share of common stock. The NAV
of the Company as of September 30, 2015 was $218.6 million, or
$15.82 per share of common stock. As previously noted, the change
in the Company’s NAV from the beginning to the end of the third
quarter was attributable to pricing pressure faced by the
investments held within the Company’s portfolio.
The Company’s net loss of $30.4 million was comprised of total
investment income of $11.7 million and a net realized gain on
investments of $0.1 million, offset by total expenses of $4.7
million and net unrealized depreciation, or unrealized market loss
on investments, of $37.5 million. Expenses include, among other
items, interest expense and amortization of issuance costs related
to the Company’s Series A Term Preferred Stock.
Chief Executive Officer Thomas Majewski commented, “Despite a
decrease in NAV quarter-on-quarter, we are very pleased with the
quarter-on-quarter growth in the Company’s net investment income
from $0.46 to $0.51 per share of common stock.”
During the third quarter, the Company received $16.3 million of
cash flow from its investment portfolio, or $1.18 per share of
common stock.
During the third quarter, the Company invested in one
collateralized loan obligation (“CLO”) equity position, three new
loan accumulation facility investments and additional follow-on
loan accumulation facility investments. The total amount of net
capital invested in the period was $38.1 million.
As of September 30, 2015, the weighted average effective yield
on the Company’s CLO equity portfolio was 16.65%, up from 16.47% as
of June 30, 2015. 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
September 30, 2015 was $19.04, representing a 20.4% premium to NAV
as of such date.
As of September 30, 2015 on a look-through basis, and based on
the most recent CLO trustee reports received by such date, the
Company had exposure to approximately 1,070 unique corporate
obligors. The largest look-through obligor represented 0.9% of the
Company’s CLO equity and loan accumulation facility portfolio. The
top-ten largest look-through obligors represented 6.7% of the
Company’s CLO equity and loan accumulation facility portfolio.
ADDITIONAL INFORMATION
The Company filed Form N-Q, which contains additional
information about the Company’s portfolio as of September 30, 2015,
with the Securities and Exchange Commission. In addition, the
Company filed a copy of its unaudited consolidated financial
statements as of and for the quarter ended September 30, 2015.
These filings are available on the Company’s website
(www.eaglepointcreditcompany.com).
The Company published an investor presentation which contains
additional information about the Company and its portfolio as of
and for the quarter ended September 30, 2015. In addition, the
Company makes monthly unaudited management estimates of NAV
available on its website. This includes, generally within the first
fifteen days after each calendar month end, an estimated range of
the Company’s NAV per share of common stock.
FOURTH QUARTER PORTFOLIO ACTIVITY THROUGH NOVEMBER 11,
2015
Since September 30, 2015, the Company received cash
distributions on its investment portfolio totaling $20.3 million,
or $1.47 per share of common stock. In addition, as published last
week, the Company’s unaudited estimate of its NAV per share of
common stock as of October 31, 2015 was between $15.45 and $15.55.
This range reflects management’s preliminary estimate for the
period ending October 31, 2015, which was announced for information
purposes only, and is subject to revision.
To date, the Company has made one new CLO equity investment
during the fourth quarter.
DISTRIBUTIONS
On October 30, 2015, the Company paid a distribution of $0.60
per share of common stock for stockholders of record as of
September 30, 2015. This is consistent with prior distributions
paid by the Company. The Company intends to pay a quarterly
distribution on its shares of common stock for the fourth quarter
of 2015, which the Company expects to declare within the next few
weeks. The Company expects the distribution to be in line with its
prior distributions. Based on management’s preliminary estimate of
the Company’s taxable income for its current tax year, the Company
does not expect to declare any additional special distributions for
the Company’s tax year ending November 30, 2015.
The Company paid a distribution of $0.161459 per share of the
Series A Term Preferred Stock (NYSE: ECCA) on October 30, 2015, for
stockholders of record on October 15, 2015. The distribution
represented a 7.75% annualized rate, based on the Series A
Preferred Stock’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 November 30, 2015 and December 31, 2015,
for stockholders of record on November 16, 2015 and December 15,
2015, respectively.
CONFERENCE CALLS
As previously disclosed, the Company will host a conference call
at 11:00 a.m. (Eastern Time) on Tuesday, November 17, 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 73976832 approximately 10 to 15 minutes
prior to the call. An archived replay of the call will be available
shortly afterwards until December 17, 2015. To hear the replay,
please dial (855) 859-2056 (domestic) or (404) 537-3406
(international). For the replay, enter conference ID 73976832.
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
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
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151117006148/en/
Investor Relations:Eagle Point Credit Company Inc.Kenneth P.
Onorio, 203-340-8500Chief Financial
Officerir@EaglePointCredit.comwww.eaglepointcreditcompany.com
Eagle Point Credit (NYSE:ECCA)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eagle Point Credit (NYSE:ECCA)
Historical Stock Chart
From Jul 2023 to Jul 2024