Eagle Point Credit Company Inc. Announces Third Quarter 2024 Financial Results

Business Wire
10 min read

In This Article:

GREENWICH, Conn., November 14, 2024—(BUSINESS WIRE)—Eagle Point Credit Company Inc. (the "Company") (NYSE: ECC, ECCC, ECC PRD, ECCF, ECCV, ECCW, ECCX) today announced financial results for the quarter ended September 30, 2024 and certain additional activity through October 31, 2024.

"Our portfolio generated another quarter of strong recurring cash flows, and we deployed $171.1 million of net capital into investments with compelling risk-adjusted returns," said Thomas P. Majewski, Chief Executive Officer. "We actively managed our portfolio, completing 14 reset actions in the third quarter alone, and 23 reset and refinancing actions year-to-date. These actions are laying the foundation for the portfolio to further enhance its net investment income over time."

THIRD QUARTER 2024 RESULTS

  • Net asset value ("NAV") per common share of $8.44 as of September 30, 2024, compared to $8.75 as of June 30, 2024.

  • Net investment income ("NII") of $0.29 per weighted average common share.1,2 NII less realized capital losses was $0.23 per weighted average common share.

    • Realized capital losses of $0.08 per weighted average common share were a result of the writedown of amortized cost to fair value for three late-in-life collateralized loan obligation ("CLO") equity positions. The writedowns were reclassifications of unrealized depreciation to realized losses and did not have a meaningful NAV impact. Excluding the reclassifications, the Company realized capital gains of $0.02 per weighted average common share from sales of appreciated investments and repayments.

  • NII less realized capital losses of $0.23 per weighted average common share compares to $0.16 of NII less realized capital losses per weighted average common share for the quarter ended June 30, 2024, and $0.35 of NII and realized capital gains per weighted average common share for the quarter ended September 30, 2023.

  • GAAP net income (inclusive of unrealized mark-to-market depreciation) of $3.9 million, or $0.04 per weighted average common share.

  • Received $68.2 million in recurring cash distributions3 from the Company’s investment portfolio, or $0.66 per weighted average common share, in line with the Company’s aggregate distributions on its common stock and operating costs for the quarter.

  • Deployed $171.1 million in net capital into 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 18.5% as measured at the time of investment.

  • As of September 30, 2024:

    • The weighted average effective yield of the Company’s CLO equity portfolio (excluding called CLOs), based on amortized cost, was 14.61%. This compares to 15.28% as of June 30, 2024 and 16.29% as of September 30, 2023.4

    • The weighted average expected yield of the Company’s CLO equity portfolio (excluding called CLOs), based on fair market value, was 21.21%. This compares to 22.36% as of June 30, 2024 and 27.38% as of September 30, 2023.4

  • Issued approximately 7.5 million shares of common stock, approximately 1.5 million shares of 6.75% Series D Perpetual Preferred Stock (the "Series D Preferred Stock") and 228,509 shares of 8.00% Series F Term Preferred Stock (the "Series F Term Preferred Stock") pursuant to the Company’s "at-the-market" offering program for total net proceeds of approximately $107.1 million. The common stock issuance resulted in $0.08 per share of NAV accretion during the quarter.

  • Issued 422,842 shares of Series AA and 5,900 shares of Series AB 7.00% Convertible and Perpetual Preferred Stock (the "Convertible Perpetual Preferred Stock") for total proceeds of $9.7 million pursuant to the Company’s continuous offering of Convertible Perpetual Preferred Stock.

  • As of September 30, 2024, the Company had debt and preferred equity securities outstanding which totaled approximately 30.7% of its total assets (less current liabilities).5

  • As of September 30, 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 1,792 unique corporate obligors.

    • The largest look-through obligor represented 0.6% of the loans underlying the Company’s CLO equity portfolio.

    • The top-ten largest look-through obligors together represented 5.1% 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 3.54%, down 9 basis points from June 2024.

  • GAAP net income was comprised of total investment income of $47.1 million, offset by unrealized appreciation on certain liabilities held at fair value of $9.8 million, total net unrealized depreciation on investments of $6.8 million, realized capital losses of $6.4 million, financing costs and operating expenses of $17.0 million and distributions and amortization of offering costs on temporary equity of $3.2 million.

  • Recorded other comprehensive income of $4.4 million.

Recommended Stories