133 0 Kommentare Eagle Point Credit Company Inc. Announces First Quarter 2024 Financial Results

Eagle Point Credit Company Inc. (the “Company”) (NYSE: ECC, ECCC, ECC PRD, ECCF, ECCV, ECCW, ECCX) today announced financial results for the quarter ended March 31, 2024 and certain additional activity through April 30, 2024.

“The Company had a solid start to the year, deploying $131.1 million in net capital into new investments that we expect to generate attractive risk-adjusted returns and enhance our net investment income moving forward,” said Thomas P. Majewski, Chief Executive Officer. “For the first quarter, we generated net investment income and realized capital gains, excluding non-recurring expenses, of $0.31 per share. In addition, we strengthened our balance sheet by issuing common stock at a premium to NAV as well as through issuing our new 8.00% Series F Term Preferred Stock. Looking ahead, we expect to further grow our portfolio through attractive CLO equity investments in both the new issue and secondary markets and improve our portfolio’s expected yield with an increase in refinancing and reset activity.”

FIRST QUARTER 2024 RESULTS

Net asset value (“NAV”) per common share of $9.16 as of March 31, 2024, compared to $9.21 as of December 31, 2023.
Net investment income (“NII”) and realized capital gains of $0.29 per weighted average common share, which is net of a non-recurring expense of $0.02 per share related to the issuance of the Company’s 8.00% Series F Term Preferred Stock due 2029 (the “Series F Term Preferred Stock”).^1,2 This compares to $0.33 of NII and realized capital gains per weighted average common share for the quarter ended December 31, 2023, and $0.32 of NII less realized capital losses per weighted average common share for the quarter ended March 31, 2023.
GAAP net income (inclusive of unrealized mark-to-market gains) of $34.7 million, or $0.43 per weighted average common share.
Received $56.2 million in recurring cash distributions³ from the Company’s investment portfolio, or $0.70 per weighted average common share, which was in line with the Company’s aggregate distributions on its common stock and operating costs for the quarter.
Deployed $131.1 million in net capital into collateralized loan obligation (“CLO”) equity, CLO debt, loan accumulation facilities and other investments. The weighted average effective yield of new CLO equity investments made by the Company during the quarter, which includes a provision for credit losses, was 19.4% as measured at the time of investment.
As of March 31, 2024:
- The weighted average effective yield of the Company’s CLO equity portfolio (excluding called CLOs), based on amortized cost, was 16.43%. This compares to 16.70% as of December 31, 2023 and 15.83% as of March 31, 2023.⁴
- The weighted average expected yield of the Company’s CLO equity portfolio (excluding called CLOs), based on fair market value, was 23.96%. This compares to 27.10% as of December 31, 2023 and 25.96% as of March 31, 2023.⁴
Completed an underwritten public offering of $49.0 million in aggregate principal amount of Series F Term Preferred Stock, resulting in net proceeds to the Company of approximately $47.1 million.
Issued approximately 7.9 million shares of common stock, 317,387 shares of 6.75% Series D Preferred Stock (the “Series D Preferred Stock”) and 96,772 shares of Series F Term Preferred Stock pursuant to the Company’s “at-the-market” offering program for total net proceeds of approximately $86.3 million. The common stock issuance resulted in $0.06 per share of NAV accretion for the quarter ended March 31, 2024.
As of March 31, 2024, the Company had debt and preferred equity securities outstanding which totaled approximately 29.2% of its total assets (less current liabilities).⁵
As of March 31, 2024, on a look-through basis, and based on the most recent CLO trustee reports received by such date:
- The Company, through its investments in CLO equity securities, had indirect exposure to approximately 1,793 unique corporate obligors.
- The largest look-through obligor represented 0.7% of the loans underlying the Company’s CLO equity portfolio.
- The top-ten largest look-through obligors together represented 5.2% of the loans underlying the Company’s CLO equity portfolio.
- The look-through weighted average spread of the loans underlying the Company’s CLO equity portfolio was 3.74% as of March 2024, down 5 basis points from December 2023.
GAAP net income was comprised of total investment income of $40.8 million, total net unrealized appreciation on investments of $7.8 million, net unrealized depreciation on certain liabilities held at fair value of $2.9 million and realized capital gains of $1.1 million, partially offset by financing costs and operating expenses of $17.9 million.
Recorded other comprehensive loss of $4.6 million.