Eagle Point Credit Company Inc. Announces Second Quarter 2016 Financial Results
Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC, NYSE:ECCA, NYSE:ECCZ) today announced financial results for the
fiscal quarter ended June 30, 2016 and net asset value (“NAV”) as of June 30, 2016 in addition to certain portfolio activity
through August 19, 2016.
SECOND QUARTER HIGHLIGHTS
The Company’s net investment income (“NII”) and realized capital gains for the quarter ended June 30, 2016 was $0.57 per share
of common stock (based on the average daily number of shares outstanding for the period) in the aggregate. This compares to NII and
realized capital gains per share of $0.61 for the quarter ended March 31, 2016, and $0.47 per share for the quarter ended June 30,
2015.
For the quarter ended June 30, 2016, the Company recorded net income of $26.2 million, or $1.81 per share of common stock (based
on the average daily number of shares outstanding for the period). Net income was comprised of total investment income of $13.3
million, net unrealized appreciation, or unrealized mark-to-market gain on investments, of $18.0 million and realized capital gains
on investments of $0.3 million, offset by total expenses of $5.4 million. Expenses include, among other items, interest expense and
amortization of deferred issuance costs related to the Company’s 7.75% Series A Term Preferred Stock due 2022 (the “Series A Term
Preferred Stock”) and the Company’s 7.00% Unsecured Notes due 2020.
During the quarter ended June 30, 2016, the Company received $24.3 million of cash flow from its investment portfolio, or $1.68
per share of common stock (based on the average daily number of shares outstanding during the period).
The NAV of the Company as of June 30, 2016 was $218.7 million, or $14.46 per share of common stock. This was an increase of
$38.7 million or $1.44 per share from the quarter ended March 31, 2016.
During the quarter ended June 30, 2016, the Company made new investments totaling $57.9 million (inclusive of amounts
reinvested).
As of June 30, 2016, the weighted average effective yield on the Company’s collateralized loan obligation (“CLO”) equity
portfolio was 17.03%, up from 16.77% as of March 31, 2016 and up from 16.47% as of June 30, 2015. 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, 2016 was $16.10, representing an 11.3% premium to NAV as
of such date.
As of June 30, 2016 on a look-through basis, and based on the most recent CLO trustee reports received by such date, the Company
had exposure to approximately 1,125 unique corporate obligors. The largest look-through obligor represented 1.0% of the Company’s
CLO equity and loan accumulation facility portfolio. The top-ten largest look-through obligors represented 7.7% of the Company’s
CLO equity and loan accumulation facility portfolio.
As of June 30, 2016, the Company had debt and preferred securities outstanding which totaled approximately 31% of its total
assets (less current liabilities).
ADDITIONAL INFORMATION
The Company has made available on its website, http://eaglepointcreditcompany.com (in the financial statements and reports section), its First Half 2016
Stockholder Letter and Semiannual Report, which includes the Company’s unaudited consolidated financial statements as of and for
the period ended June 30, 2016. The Company has also filed this report with the Securities and Exchange Commission. The Company
published an investor presentation which contains additional information about the Company and its portfolio as of and for the
quarter ended June 30, 2016.
In addition, the Company makes a monthly estimate of NAV and certain additional financial information available to investors on
its website. This information includes (1) an estimated range of the Company’s NII and realized capital gains or losses per share
of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar
month end, (2) an estimated range of the Company’s NAV per share of common stock for the prior month end and certain additional
portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and
(3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter
end, an updated estimate of the Company’s NII and realized capital gains or losses for the applicable quarter, if available.
THIRD QUARTER 2016 PORTFOLIO ACTIVITY THROUGH AUGUST 19, 2016 AND OTHER UPDATES
Since June 30, 2016 and through August 19, 2016, the Company has received cash distributions on its investment portfolio
totaling $20.8 million, or $1.37 per share of common stock (not all of which represents NII). In addition, as published on the
Company’s website this week, Company management’s unaudited estimate of the NAV per share of its common stock as of July 31, 2016
is $16.33. This estimate was published for information purposes only and is subject to revision.
During the third quarter of 2016 through August 19, 2016, the Company has made new investments totaling $12.4 million, which
includes 3 new CLO equity investments.
DISTRIBUTIONS
On July 29, 2016, the Company paid a distribution of $0.60 per share of common stock to stockholders of record as of June 30,
2016. This is consistent with prior distributions paid by the Company. The Company intends to pay a quarterly distribution on its
shares of common stock for the third quarter of 2016, which the Company expects to declare within the next few weeks. The Company
expects the upcoming quarterly distribution to be in line with its prior distributions.
The Company paid a distribution of $0.161459 per share of the Series A Term Preferred Stock (NYSE: ECCA) on July 29, 2016, to
stockholders of record as of July 15, 2016. The distribution represented a 7.75% annualized rate, based on the Series A Term
Preferred Stock’s $25 liquidation preference per share. Additionally, and as previously announced, the Company declared
distributions of $0.161459 per share on its Series A Term Preferred Stock, payable on each of August 31, 2016 and September 30,
2016, to stockholders of record as of August 15, 2016 and September 15, 2016, respectively.
CONFERENCE CALL
As previously disclosed, the Company will host a conference call at 11:00 a.m. (Eastern Time) on Wednesday, August 24, 2016 to
discuss the Company’s financial results for the quarter ended June 30, 2016, and a 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 51229612 approximately 10 to 15 minutes prior to the call. An archived replay of the call will be available shortly
afterwards until September 23, 2016. To hear the replay, please dial (855) 859-2056 (domestic) or (404) 537-3406 (international).
For the replay, enter conference ID 51229612.
ABOUT EAGLE POINT CREDIT COMPANY
The Company is a non-diversified, closed-end management investment company. The Company’s investment objectives are 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). This information includes (1) an estimated range of the Company’s NII and
realized capital gains or losses per share of common stock for each calendar quarter end, generally made available within the first
fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s NAV per share of common stock for the
prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after
the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and,
with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses for the
applicable quarter, if available.
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 U.S. Securities and Exchange Commission (“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.
Investor Relations:
Eagle Point Credit Company Inc.
Kenneth P. Onorio, 203-340-8500
Chief Financial Officer
IR@EaglePointCredit.com
www.eaglepointcreditcompany.com
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