Eagle Point Credit Company Announces Note Offering
Eagle Point Credit Company Inc. (NYSE:ECC) has made an important announcement regarding its financial strategy. The company, which is known for its focus on generating high current income and capital appreciation, revealed that it has priced an underwritten public offering of $100 million. This offering includes the company's 7.75% notes that are due in 2030, also referred to as the "2030 Notes." The net proceeds of this offering are expected to reach approximately $96.5 million after accounting for necessary underwriting discounts and related expenses.
Details of the 2030 Notes
The 2030 Notes will be available in denominations of $25 and multiples of $25, making them accessible to a broad range of investors. These notes are designed to carry an annual interest rate of 7.75%, with payments made quarterly, the first of which is scheduled for March 31, 2025. The maturity date is set for June 30, 2030. Investors will also have the opportunity to participate in additional offerings, as Eagle Point has allowed underwriters a 30-day option to purchase up to $15 million more in 2030 Notes to cover any overallotments.
Strategic Timeline for Closing
The completion of this offering is expected to take place in December 2024, pending the usual closing conditions. Once the offering process is finalized, Eagle Point intends to list the 2030 Notes on the New York Stock Exchange under the symbol “ECCU,” further enhancing their visibility in the marketplace.
Bookrunning and Management Teams
Leading this significant offering is Lucid Capital Markets, LLC, which serves as the lead bookrunner. They are joined by respected names in the financial sector such as B. Riley Securities, Inc., Piper Sandler & Co., and Janney Montgomery Scott LLC, all of whom are acting as joint bookrunners. Furthermore, InspereX LLC and William Blair & Company, L.L.C. have been designated as lead managers. The presence of Clear Street LLC and Wedbush Securities Inc. as co-managers signifies the strong backing of experienced financial institutions.
Investor Considerations
Investors are encouraged to thoroughly review the investment objectives, risks, charges, and expenses associated with this offering. It is vital to consider the preliminary prospectus supplement and the accompanying prospectus that contains detailed information about the investment opportunity. These documents, filed with the Securities and Exchange Commission (SEC), should guide investors before they make any decisions. For those interested in obtaining copies, they can reach out to Lucid Capital Markets or visit the SEC's website for more insights.
About Eagle Point Credit Company
Eagle Point Credit Company operates as a non-diversified, closed-end management investment company. The firm's core mission revolves around generating substantial current income while also seeking to appreciate capital. This objective is achieved primarily through investments in equity and junior debt tranches of collateralized loan obligations. Eagle Point Credit Management LLC, an external management firm, oversees the company's investment strategies.
Frequently Asked Questions
What are the 2030 Notes issued by Eagle Point Credit Company?
The 2030 Notes are a public offering of 7.75% notes due in 2030, aimed at providing high current income to investors.
What is the purpose of the $100 million note offering?
The offering will help raise capital for investment opportunities while enhancing shareholder value.
When is the expected closing date for the offering?
The offering is expected to close in December 2024, subject to standard conditions.
Who is managing the note offering?
Lucid Capital Markets, LLC is acting as the lead bookrunner, supported by several joint bookrunners and managers.
How can investors learn more about their investment options?
Investors can refer to the preliminary prospectus supplement and the accompanying prospectus available through Lucid Capital Markets or the SEC's website for detailed information.
