Carlyle Credit Income Fund Launches New Capital Offering
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Carlyle Credit Income Fund Announces Private Placement of Convertible Preferred Shares
Carlyle Credit Income Fund (the “Fund”) (NYSE: CCIF), an externally managed closed-end fund focused on investing in primarily equity and junior debt tranches of collateralized loan obligations, has entered into a Purchase Agreement with certain institutional investors. This agreement involves the purchase and sale of approximately 11,517 shares of the Fund’s 7.125% Series B Convertible Preferred Shares, which are set to mature in August 2029, with a liquidation preference of $1,000.00 per share. The Fund anticipates receiving net proceeds (before expenses) from this sale of around $10.6 million. The closing of this offering is expected to occur shortly, contingent upon customary closing conditions being met.
Details of the Convertible Preferred Shares
The Convertible Preferred Shares will offer a quarterly dividend reflecting a fixed annual rate of 7.125% based on the liquidation preference, which translates to $71.25 per share each year. On the stipulated Term Redemption Date of August 27, 2029, the Fund is obligated to redeem all outstanding Convertible Preferred Shares. The redemption price will comprise the liquidation preference along with any accumulated, yet unpaid, dividends and distributions.
Flexible Redemption Options for Convertible Preferred Shares
Starting February 27, 2025, the Fund also holds the exclusive right to redeem the Convertible Preferred Shares in full or in part, drawing upon funds that are legally available for such actions. The price upon redemption will similarly be the liquidation preference plus any accumulated unpaid dividends.
Conversion Rights of Holders
Holders of Convertible Preferred Shares can convert their shares into Common Shares of beneficial interest any time after a six-month period post-issuance date. The number of Common Shares received equals the liquidation preference plus unpaid dividends calculated against the established Conversion Price, which is determined by market rates or the Fund's previously reported net asset value.
Offering of Common Shares
Simultaneously, Carlyle Credit Income Fund has engaged another Purchase Agreement for the sale of Common Shares in a registered direct placement under its effective shelf registration statement filed with the Securities and Exchange Commission (SEC). The Fund plans to sell 1,444,865 Common Shares at a set price of $7.9592 per share, expecting net proceeds of approximately $11.5 million from this sale, subject to customary closing conditions.
Important Considerations for Investors
This offering of Common Shares will be conducted exclusively by means of a prospectus. Investors are encouraged to carefully evaluate their investment objectives, the Fund's risk factors, and various costs before proceeding. Detailed descriptions and vital information about the fund’s risks and policies can be found in the prospectus supplements and accompanying documents filed with the SEC. Interested parties may contact the Fund for these documents.
About Carlyle Credit Income Fund
Carlyle Credit Income Fund (NYSE: CCIF) primarily focuses on investing in equity and junior debt tranches of collateralized loan obligations (CLOs), which are backed by a diversified portfolio of U.S. senior secured loans. The Fund is managed externally by Carlyle Global Credit Investment Management L.L.C. (CGCIM), a registered investment adviser and subsidiary of Carlyle, which is a leading manager in the CLO space.
Contact Information
For further details or inquiries, investors and media representatives can reach out through the following contacts:
Investors: Jane Cai
+1 (866) 277-8243
investorrelations@carlylecreditincomefund.com
Media: Kristen Greco Ashton
+1 (212) 813-4763
kristen.ashton@carlyle.com
Frequently Asked Questions
What is the purpose of the Carlyle Credit Income Fund's new offerings?
The Fund aims to use the proceeds from these offerings to acquire new investments, distribute returns to shareholders, and for general working capital needs.
What are the terms associated with the Convertible Preferred Shares?
The Convertible Preferred Shares feature a 7.125% annual dividend and a redemption obligation on the Term Redemption Date, alongside flexible redemption options for the Fund starting in 2025.
How can investors convert their Convertible Preferred Shares?
Holders of Convertible Preferred Shares can convert them into Common Shares after a six-month period from the issue date, based on the predetermined Conversion Price.
What is the projected closing date for these offerings?
The offerings are projected to close soon, subject to the satisfaction of customary closing conditions.
Who manages the Carlyle Credit Income Fund?
The Carlyle Credit Income Fund is managed by Carlyle Global Credit Investment Management L.L.C., which leverages Carlyle's extensive resources and expertise in managing CLOs.
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