Eagle Point Credit Company Inc. (NYSE:ECC) (NYSE:ECCA) (the “Company”)
has today announced certain updated and estimated portfolio information
for the month ended August 31, 2015.
Over the last month, global markets faced significant price volatility.
The Company believes that the volatility was prompted by changes in oil
and other commodity prices, among other macro factors.
During August, many investments in the Company’s collateralized loan
obligation (“CLO”) portfolio also faced pricing pressure. Based on
preliminary results, the Company’s unaudited estimate of its net asset
value (“NAV”) per share of common stock as of August 31, 2015 is between
$17.45 and $17.55. As the Company generally determines its NAV on a
quarterly basis, this range reflects management’s current estimate for
the period ending August 31, 2015, is announced for information purposes
only and is subject to revision.
Within the Company’s portfolio, based on information provided to us as
of August 2015, the Company estimates that it has exposure to
approximately 1,082 distinct underlying borrowers, with no one borrower
representing over 0.93% of the Company’s aggregate exposure to
underlying loans. As of August 2015, the Company’s portfolio of
investments had estimated exposure to the Oil and Gas industry and
Metals and Mining industry of 4.4% and 1.5%, respectively.
Further, the Company estimates that over 97.3% of its exposure to
corporate credit is in the form of senior secured loans. The Company
believes this form of exposure provides greater protection to creditors
who typically enjoy a first-priority pledge on a borrower’s assets as
compared to high yield bond investors who are typically “second in line”
and often unsecured.
Finally, upon a review of the Company’s current portfolio, the Company
does not anticipate a material change in its internal return estimates
for the Company’s CLO equity positions.
The Company typically makes the above unaudited estimates of portfolio
and NAV information available on its website (www.eaglepointcreditcompany.com)
toward the latter part of each month. However, given the recent market
volatility, the Company decided to accelerate this announcement for the
August 2015 month end. In addition, the Company plans on publishing an
August 2015 portfolio update later this month with additional
information (including an updated estimated NAV, if applicable) that is
in line with the Company’s usual practice for prior months.
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 available each month on its website in
addition to making certain other unaudited financial information
available on its website (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 Company’s 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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