Carlyle Credit Income Fund's New Convertible Preferred Shares Deal
Carlyle Credit Income Fund Takes Strategic Steps with Preferred Shares
Carlyle Credit Income Fund (NYSE: CCIF) is making waves in the investment community as it announces a significant transaction involving its 7.25% Series E Convertible Preferred Shares. This privately held placement involves around 17,500 shares, set to propel the Fund's strategy forward while providing investors with attractive benefits.
The Fund, focused on equity and junior debt portions of collateralized loan obligations, anticipates net proceeds of approximately $16.275 million from this offering. This capital infusion, set to close soon, indicates the Fund's proactive approach in managing its financial landscape.
Understanding the Convertible Preferred Shares
With a fixed annual dividend rate of 7.25%, the Convertible Preferred Shares represent a secure source of income for investors, paying out $72.50 per share annually. These shares are structured to ensure that holders can expect consistent returns throughout their investment horizon.
Redemption Terms and Conversion Options
One notable aspect of these shares is the mandatory redemption policy dated for October 30, 2030. Investors can also look forward to the option of early redemption beginning May 1, 2026, providing them with flexibility. The Fund has strategically positioned itself to allow holders the right to convert their shares into common stock, enhancing their investment potential.
Market Opportunities and Investor Returns
With the option to convert preferred shares to common shares, investors could maximize their returns depending on market conditions. The conversion price is defined as either the average market price or the latest net asset value per common share, ensuring fair conversion mechanisms are in place.
Usage of Proceeds and Future Plans
The net proceeds from this offering are earmarked for the redemption of existing 8.75% Series A Preferred Shares due 2028, as well as providing general working capital for the Fund. This prudent financial management strategy speaks to the Fund's commitment to maintaining a strong financial foundation and enhancing shareholder value.
Moreover, this redemption reflects a proactive stance in refining the Fund's capital structure, aiming to optimize the overall return for its investors. The impending redemption also signifies the Fund's strategic shift to focus on enhancing its investment avenues and rebalancing its equity positions.
About Carlyle Credit Income Fund
Carlyle Credit Income Fund operates under the NYSE: CCIF ticker and is recognized for its meticulous investment strategies in collateralized loan obligations. The Fund boasts a robust management framework through Carlyle Global Credit Investment Management, a registered investment advisor that harnesses Carlyle's expansive market reach and expertise.
The Fund's focus on U.S. senior secured loans across a variety of sectors positions it effectively to capitalize on market opportunities while managing risks closely. Carlyle's established reputation as a premier CLO manager supports the Fund's ambitions to deliver value to its stakeholders.
Investor Engagement and Media Relations
For investor inquiries, Joseph Castilla is available at +1 (866) 277-8243 or via email at investorrelations@carlylecreditincomefund.com. Media can reach Kristen Ashton at +1 (212) 813-4763 or at kristen.ashton@carlyle.com for further information.
Frequently Asked Questions
What is Carlyle Credit Income Fund?
Carlyle Credit Income Fund (NYSE: CCIF) is an externally managed closed-end fund focused on investing primarily in equity and junior debt tranches of collateralized loan obligations.
What are the benefits of the Convertible Preferred Shares?
The Convertible Preferred Shares offer a fixed dividend rate of 7.25%, which provides a steady income stream while allowing investors the option of converting to common shares.
What will the proceeds from the sale be used for?
The proceeds are designated for the redemption of existing preferred shares and for general working capital needs of the Fund.
When can investors convert their shares?
Investors can convert their shares starting six months after issuance, providing flexibility and potential for capital growth.
How will the redemption process work?
The redemption of the Series A Preferred Shares will be executed on a set date, with payments made through The Depository Trust Company, ensuring a smooth transaction process for shareholders.
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