Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC,
NYSE:ECCA, NYSE:ECCB, NYSE:ECCZ) today announced financial results
for the fiscal quarter ended September 30, 2016 and net asset value
(“NAV”) as of September 30, 2016 in addition to certain portfolio
activity through November 11, 2016.
THIRD QUARTER HIGHLIGHTS
The Company’s net investment income (“NII”) and realized capital
gains for the quarter ended September 30, 2016 was $0.54 per share
of common stock (based on the average daily number of shares
outstanding for the period). This compares to NII and realized
capital gains per share of $0.57 for the quarter ended June 30,
2016, and $0.51 per share for the quarter ended September 30,
2015.
For the quarter ended September 30, 2016, the Company recorded
net income of $42.4 million, or $2.80 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
$13.7 million, net unrealized appreciation, or unrealized
mark-to-market gain on investments, of $34.2 million and realized
capital gains on investments of $0.5 million, offset by total
expenses of $6.0 million.
During the quarter ended September 30, 2016, the Company
received $21.6 million of cash flow from its investment portfolio,
or $1.43 per share of common stock (based on the average daily
number of shares outstanding during the period).
The NAV of the Company as of September 30, 2016 was $255.4
million, or $16.66 per share of common stock. This was an increase
of $36.6 million or $2.20 per share from the quarter ended June 30,
2016.
During the quarter ended September 30, 2016, the Company made
gross new investments totaling $52.2 million. The weighted average
effective yield of new collateralized loan obligation (“CLO”)
equity investments made by the Company during the quarter was
20.16% as measured at the time of investment.
As of September 30, 2016, the weighted average effective yield
on the Company’s CLO equity portfolio was 17.27%, up from 17.03% as
of June 30, 2016 and up from 16.65% as of September 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
September 30, 2016 was $17.16, representing a 3.0% premium to NAV
as of such date.
As of September 30, 2016 on a look-through basis, and based on
the most recent CLO trustee reports received by such date, the
Company had indirect exposure to approximately 1,142 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
7.0% of the Company’s CLO equity and loan accumulation facility
portfolio.
As of September 30, 2016, the Company had debt and preferred
securities outstanding which totaled approximately 29.6% its total
assets (less current liabilities).
FOURTH QUARTER 2016 PORTFOLIO ACTIVITY THROUGH NOVEMBER 11,
2016 AND OTHER UPDATES
From October 1, 2016 and through November 11, 2016, the Company
has received cash distributions on its investment portfolio
totaling $20.8 million (not all of which represents NII), or $1.36
per share of common stock. Some of the Company’s investments make
payments later in the quarter and, as of November 11, 2016, those
other investments had not yet reached their payment date for the
current quarter.
From October 1, 2016 through November 11, 2016, the Company has
made gross new investments totaling $56.7 million, which includes
investments in one new CLO equity security and several loan
accumulation facility add-on purchases. Additionally, the Company
converted two of its existing loan accumulation facilities into new
CLOs.
As of November 11, 2016, the Company has approximately $17.3
million of cash available for investment.
As published on the Company’s website last week, Company
management’s unaudited estimate of the range of NAV per share of
its common stock as of October 31, 2016 is $17.18 to $17.28. This
estimate was published for information purposes only and is subject
to revision.
In October 2016, the Company issued 1,380,000 shares of its
newly designated 7.75% Series B Term Preferred Stock due 2026,
which amount includes the exercise of an overallotment option by
the underwriters, at a public offering price of $25 per share. The
issuance resulted in net proceeds to the Company of approximately
$32.8 million after payment of underwriting discounts and
commissions and estimated offering expenses payable by the Company.
On a pro forma basis to account for this offering, the Company has
debt and preferred securities outstanding totaling approximately
35.9% of its total assets (less current liabilities) as of
September 30, 2016.
The Company was able to issue its Series B Term Preferred Stock
at the same 7.75% rate as its Series A Term Preferred Stock, but
with a longer maturity.
REGULAR DISTRIBUTIONS
On October 31, 2016, the Company paid a distribution of $0.60
per share of common stock to stockholders of record as of September
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 fourth quarter of 2016, which the
Company expects to declare in early December. 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
Company’s 7.75% Series A Term Preferred Stock due 2022 (the “Series
A Term Preferred Stock”) (NYSE: ECCA) on October 31, 2016, to
stockholders of record as of October 17, 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 November 30, 2016 and December 30, 2016,
to stockholders of record as of November 15, 2016 and December 15,
2016, respectively.
The Company also declared distributions of $0.269098 and
$0.161459 per share on its Series B Term Preferred Stock (NYSE:
ECCB), payable on each of November 30, 2016 and December 30, 2016,
to stockholders of record as of November 15, 2016 and December 15,
2016, respectively. These distributions represent a 7.75%
annualized rate, based on the Series B Term Preferred Stock’s $25
liquidation preference per share for the initial dividend period
ending November 30, 2016 and for the month of December 2016.
SPECIAL DISTRIBUTIONS
As one of the requirements for the Company to maintain its
ability to be taxed as a “regulated investment company” (which it
has elected to be), the Company is generally required to pay
distributions to holders of its common stock in an amount equal to
substantially all of the Company’s taxable income within one year
of the end of its tax year, which is November 30, 2016.
The Company preliminarily estimates its taxable income for the
tax year ending November 30, 2016 will exceed aggregate quarterly
distributions paid to common stockholders. At present, management
estimates special distributions totaling between $0.75 to $1.25 per
share of common stock will be required to meet the distribution
requirement described above. This estimate remains preliminary and
is based solely on information currently available to management
with respect to approximately 60% of the Company’s portfolio. The
actual amounts required to be distributed will not be known until
the Company files its tax returns next year and such amount may
deviate from the above estimated range.
Management expects to target payment of special distributions
pertaining to the Company’s November 30, 2016 tax year in one or
more installments toward the latter part of 2017. The Company
expects to incur a 4% excise tax on the amount distributed. The
amount of such tax is expected to be reported in the Company’s
annual report for the fiscal year ending December 31, 2016.
CONFERENCE CALL
As previously announced, the Company will host a conference call
at 11:00 a.m. (Eastern Time) on Wednesday, November 16, 2016 to
discuss the Company’s financial results for the quarter ended
September 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 9303653 approximately 10 to 15 minutes prior to
the call. An archived replay of the call will be available shortly
afterwards until December 16, 2016. To hear the replay, please dial
(855) 859-2056 (domestic) or (404) 537-3406 (international). For
the replay, enter conference ID 9303653.
ADDITIONAL INFORMATION
The Company filed Form N-Q, which contains additional
information about the Company’s portfolio as of September 30,
2016, with the Securities and Exchange
Commission (“SEC”). In addition, the Company filed a copy of
its unaudited consolidated financial statements as of and for the
quarter ended September 30, 2016 with the SEC. These
filings are available on the Company’s website
(www.eaglepointcreditcompany.com).
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 net investment income (“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.
FURTHER INFORMATION REGARDING PROSPECTIVE FINANCIAL
INFORMATION
The projection of the Company’s taxable income and distributions
for the anticipated tax year ending November 30, 2016 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 or with respect to the anticipated tax
year ending November 30, 2016. The projected result is based on
taxable income reported to date and assumes that current market
conditions continue and 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 “Risk Factors – Risks Related to Our Investments”
in the Company’s most recent prospectus and under the heading
“Investment Risk Factors and Concentration of Investments” in the
notes to the Company’s unaudited consolidated financial statements
included in the Company’s Semi-Annual Report to Stockholders for
the six months ended June 30, 2016 and in the notes to the
Company’s unaudited consolidated financial statements for the
fiscal period ended September 30, 2016. Accordingly, there can be
no assurance that the projection is indicative of the Company’s
future results or that actual results will not differ materially
from those presented in the projection.
The projection of taxable income was not prepared with a view
toward complying with the guidelines established by the American
Institute of Certified Public Accountants and Financial Accounting
Standards Board, as modified by Regulation S-X under the Securities
Act of 1933, as amended, 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 judgment of Company management. However, this
prospective financial 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 such financial information. Inclusion of the prospective
financial information in this press release should not be regarded
as a representation by any person that the results contained in
such 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 prospective
financial information contained herein, or expressed any opinion or
assurance with respect to the prospective financial information or
its achievability, and accordingly each assumes no responsibility
for, and disclaims any association with, the prospective financial
information
Source: Eagle Point Credit Company Inc.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161116005449/en/
Investor Relations:Eagle Point Credit Company Inc.Kyle McGrady,
203-340-8500IR@EaglePointCredit.comwww.eaglepointcreditcompany.com
Eagle Point Credit Company Inc. 7.00% Notes Due 2020 (delisted) (NYSE:ECCZ)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Eagle Point Credit Company Inc. 7.00% Notes Due 2020 (delisted) (NYSE:ECCZ)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024
