Eagle Point Credit Company Inc. (NYSE:ECC) (NYSE:ECCA) (the “Company”)
today announced net income for the quarter ended June 30, 2015 and net
asset value as of June 30, 2015 in addition to certain portfolio
activity through August 21, 2015.
SECOND QUARTER HIGHLIGHTS
For the quarter ended June 30, 2015, the Company had net income of $6.4
million, or $0.46 per share of common stock. The net asset value (“NAV”)
of the Company as of June 30, 2015 was $257.2 million, or $18.62 per
share of common stock.
The Company’s net income of $6.4 million was comprised of total
investment income of $10.2 million and a net gain on investments of $0.1
million, offset by total expenses of ($3.9) million. Expenses include
($0.5) million of interest expense related to the Company’s recently
issued Series A Term Preferred Stock.
During the quarter, the Company received $20.1 million of cash flow from
its investment portfolio, or $1.46 per share of common stock.
During the second quarter, the Company invested in 5 collateralized loan
obligation (“CLO”) equity positions, 2 new loan accumulation facility
investments and additional follow-on loan accumulation facility
investments. The total amount of net capital invested in the period was
$25.1 million. The Company also purchased several small CLO debt
positions, in each case in conjunction with a CLO equity purchase. 3
loan accumulation facilities were monetized as their associated CLOs
priced and closed.
As of June 30, 2015, the weighted average effective yield on the
Company’s CLO equity portfolio was 16.47%. The weighted average
effective yield of these CLO equity investments includes a provision for
credit losses.
The closing price per share of the Company’s common stock on June 30,
2015 was $20.23, representing an 8.65% premium to net asset value as of
such date.
As of June 30, 2015 on a look-through basis, the Company had exposure to
approximately 1,048 unique corporate obligors. The largest look-through
obligor represented 0.87% of the Company’s CLO equity and loan
accumulation facility portfolio. The top-ten largest look-through
obligors represented 6.74% of the Company’s CLO equity and loan
accumulation facility portfolio.
ADDITIONAL INFORMATION
The Company has made available on its website, http://eaglepointcreditcompany.com
(in the portfolio overview section), its Semiannual Report, which
includes the Company’s unaudited financial statements as of and for the
period ended June 30, 2015. The Company has also published an investor
presentation which has additional information about the Company and its
portfolio as of and for the quarter ended June 30, 2015. In addition,
the Company makes monthly unaudited management estimates of the
Company’s net asset value available on its website.
THIRD QUARTER PORTFOLIO ACTIVITY THROUGH AUGUST 21, 2015
Since June 30, 2015, the Company has received cash distributions on its
investment portfolio totaling $14.6 million, or $1.06 per share of
common stock.
As of August 21, 2015, the Company has fully deployed the net proceeds
from its previous offering of Series A Term Preferred Stock and, as a
result, expects net investment income to grow compared to the quarter
ended June 30, 2015, under current market conditions. The Company has
made 1 new CLO equity investment, 3 new loan accumulation facility
investments and additional follow-on loan accumulation facility
investments during the third quarter.
DISTRIBUTIONS
The Company paid a distribution of $0.60 per share of common stock for
the quarter ended June 30, 2015 on July 31, 2015. The distribution
represented approximately a 12% annualized rate, based on the Company’s
initial public offering (“IPO”) price of $20. The Company intends to pay
a quarterly distribution on its shares of common stock for the third
quarter of 2015, which the Company expects to declare within the next
two weeks. The Company expects the distribution to be in line with its
prior distributions of 12% per annum of the IPO price.
The Company paid a distribution of $0.161459 per share of the Series A
Term Preferred Stock (NYSE: ECCA) on July 31, 2015, for stockholders of
record on July 15, 2015. The distribution represented a 7.75% annualized
rate, based on the Company’s $25 liquidation preference per share.
Additionally and as previously disclosed, the Company declared
distributions of $0.161459 per share on its Series A Term Preferred
Stock, payable on each of August 31, 2015 and September 30, 2015, for
stockholders of record on August 17, 2015 and September 15, 2015,
respectively.
CONFERENCE CALLS
As previously disclosed, the Company will host a conference call at
11:00 a.m. (Eastern Time) on Wednesday, August 26, 2015 to discuss the
quarterly financial results and portfolio update. All interested parties
may participate in the conference call by dialing (877) 201-0168
(domestic) or (647) 788-4901(international), and entering Conference ID
90753651 approximately 10 to 15 minutes prior to the call. An archived
replay of the call will be available shortly after the call until
September 26, 2015. To hear the replay, please dial (855) 859-2056
(domestic) or (404) 537-3406 (international). For the replay, enter
conference ID 90753651.
In addition, the Company plans to arrange a conference call in early
September to provide an overview of the potential tax treatment of a CLO
equity investment. Details of the call will follow shortly.
ABOUT EAGLE POINT CREDIT COMPANY
The Company is a non-diversified, closed-end management investment
company. The Company’s investment objective is to generate high current
income and capital appreciation primarily through investment in equity
and junior debt tranches of collateralized loan obligations. The Company
is externally managed and advised by Eagle Point Credit Management LLC.
The principals of Eagle Point Credit Management LLC are Thomas P.
Majewski, Daniel W. Ko and Daniel M. Spinner. The Company makes certain
unaudited portfolio information is available on its website on a monthly
basis as well as certain other unaudited financial information (www.eaglepointcreditcompany.com).
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995.
Statements other than statements of historical facts included in this
press release may constitute forward-looking statements and are not
guarantees of future performance or results and involve a number of
risks and uncertainties. Actual results may differ materially from those
in the forward-looking statements as a result of a number of factors,
including those described in the prospectus and the Company’s other
filings with the SEC. The Company undertakes no duty to update any
forward-looking statement made herein. All forward-looking statements
speak only as of the date of this press release.
Source: Eagle Point Credit Company Inc.
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