Carlyle Credit Income Fund Announces Private Placement of Convertible Preferred Shares
Carlyle Credit Income Fund (the “Fund”) (NYSE: CCIF) is an externally managed closed-end fund that primarily invests in equity and junior debt tranches of collateralized loan obligations. Recently, the Fund entered into a Purchase Agreement with select institutional investors for the purchase and sale of approximately 11,517 shares of its 7.125% Series B Convertible Preferred Shares. These shares are scheduled to mature in August 2029 and have a liquidation preference of $1,000.00 each. The Fund expects to receive net proceeds (before expenses) of about $10.6 million from this transaction, with the closing anticipated to occur soon, pending the fulfillment of customary closing conditions.
Details of the Convertible Preferred Shares
The Convertible Preferred Shares will provide a quarterly dividend at a fixed annual rate of 7.125%, based on the liquidation preference, which amounts to $71.25 per share each year. On the designated Term Redemption Date of August 27, 2029, the Fund is required to redeem all outstanding Convertible Preferred Shares. The redemption price will include the liquidation preference along with any unpaid dividends and distributions that have accumulated.
Flexible Redemption Options for Convertible Preferred Shares
Beginning on February 27, 2025, the Fund will have the exclusive right to redeem the Convertible Preferred Shares, either in full or partially, using funds that are legally available for such purposes. Upon redemption, the price will also be the liquidation preference plus any accumulated unpaid dividends.
Conversion Rights of Holders
Holders of the Convertible Preferred Shares have the option to convert their shares into Common Shares of beneficial interest any time after a six-month period from the issuance date. The number of Common Shares received will be based on the liquidation preference plus any 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
At the same time, Carlyle Credit Income Fund has entered into another Purchase Agreement for the sale of Common Shares through 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 price of $7.9592 each, anticipating net proceeds of approximately $11.5 million from this sale, also subject to customary closing conditions.
Important Considerations for Investors
This offering of Common Shares will be conducted solely through a prospectus. Investors are advised to carefully assess their investment goals, the Fund's risk factors, and associated costs before making a decision. Comprehensive descriptions and crucial information regarding the fund's risks and policies can be found in the prospectus supplements and related documents filed with the SEC. Interested individuals may contact the Fund to obtain these documents.
About Carlyle Credit Income Fund
Carlyle Credit Income Fund (NYSE: CCIF) primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs), which are supported 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, a prominent manager in the CLO sector.
Contact Information
For more information 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 intends to use the proceeds from these offerings to acquire new investments, provide returns to shareholders, and cover general working capital needs.
What are the terms associated with the Convertible Preferred Shares?
The Convertible Preferred Shares offer a 7.125% annual dividend and include a redemption obligation on the Term Redemption Date, along with 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 issuance date, based on the predetermined Conversion Price.
What is the projected closing date for these offerings?
The offerings are expected to close soon, contingent upon the completion 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 utilizes Carlyle's extensive resources and expertise in managing CLOs.
