Eagle Point Credit Company Inc. (NYSE:ECC) (NYSE:ECCA) (the “Company”)
has today announced certain estimated portfolio information for the
month ended September 30, 2015.
As with the prior month, during September, many holdings in the
Company’s investment portfolio continued to face pricing pressure
consistent with the price volatility faced in the broader global
markets. Based on preliminary results, the Company’s unaudited estimate
of its net asset value (“NAV”) per share of common stock as of September
30, 2015 was between $15.76 and $15.86. This range reflects management’s
preliminary estimate for the period ending September 30, 2015, is
announced for information purposes only and is subject to revision when
the Company’s board of directors determines the quarter-end NAV. The
range of estimated NAV per share reflects a reduction for the Company’s
previously declared, but currently unpaid, distribution of $0.60 per
share of common stock, which is carried as a liability until paid. This
distribution is payable on October 30, 2015 to stockholders of record as
of September 30, 2015.
Chief Executive Officer Thomas Majewski commented, “Even during this
period of mark-to-market price volatility, we continue to be pleased
with the cash flow generated by the Company’s investment portfolio.”
During the Company’s quarter ended September 30, 2015, the Company
received approximately $16.7 million (or approximately $1.21 per share
of common stock) in cash distributions on its investment portfolio. In
its current fiscal quarter ending December 31, 2015, the Company expects
to receive in excess of $17.5 million (or approximately $1.27 per share)
in cash distributions on its investment portfolio. The majority of these
cash flows are expected to be received by the end of October 2015. Based
on a review of these cash flows and its portfolio, the Company does not
anticipate a material change in the internal return estimates for the
Company’s CLO equity positions.
Going forward, the Company intends to make a preliminary monthly
estimate of the range of the Company’s NAV per share of common stock
available on its website (www.eaglepointcreditcompany.com)
within the first 15 days after month end. Thereafter, toward the latter
part of the each month, and in line with the Company’s usual practice
for prior months, the Company intends to continue to make additional
portfolio information available on its website, including a monthly
portfolio update and an updated estimate of NAV, if applicable.
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.
FURTHER INFORMATION REGARDING PROJECTED FINANCIAL INFORMATION
The projection of cash distributions expected to be received from the
Company’s investment portfolio during the fiscal quarter ending December
31, 2015 reflects management’s judgment as of the date of this press
release of conditions it expects to exist and the course of action it
expects the Company to take during the three months ending December 31,
2015. The projected amount is based on information included in
monthly CLO trustee reports and assumes that the CLO investments held by
the Company comply with their distribution waterfall requirements for
the current period. Although the Company considers its
assumptions to be reasonable as of the date of this press release, such
assumptions are subject to a wide variety of significant business,
economic and competitive risks and uncertainties that could cause actual
results to differ materially from those contained in the projection,
including risks and uncertainties described in the Company’s filings
with the SEC, such as the risks described as under the heading
“Investment Risk Factors and Concentration of Investments” in the notes
to the Company’s consolidated financial statements included in
the Company’s Semi-Annual Report to Stockholders for the six months
ended June 30, 2015. Accordingly, there can be no assurance that the
projection is indicative of the Company’s future performance or that
actual results will not differ materially from those presented in the
projection.
The projected cash distribution information was not prepared with a
view toward complying with the guidelines established by the American
Institute of Certified Public Accountants with respect to prospective
financial information, but, in the Company’s view, was prepared on a
reasonable basis and reflects the best currently available estimates and
judgments of Company management. However, this information is not fact
and readers of this press release should not rely upon this information
as being necessarily indicative of future results or to place undue
reliance on the projected financial information. Inclusion of the
projected financial information in this press release should not be
regarded as a representation by any person that the results contained in
the projected financial information will be achieved.
Neither the Company’s independent registered public accounting firm
nor any other independent accountants has compiled, examined, or
performed any procedures with respect to the projected financial
information contained herein, nor has either one of them expressed any
opinion or any other form of assurance on such information or its
achievability, and assume no responsibility for, and disclaim any
association with, the prospective financial information.
The Company does not generally plan to publish projected financial
information. Accordingly, the Company does not intend to update or
otherwise revise the projected financial information for the fiscal
quarter ending December 31, 2015 to reflect circumstances existing since
its preparation or to reflect the occurrence of unanticipated events,
even in the event that any or all of the underlying assumptions are
shown to be in error. Furthermore, the Company does not intend to update
or revise the prospective financial information to reflect changes in
general economic or industry conditions.
Source: Eagle Point Credit Company Inc.
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