GREENWICH, Conn. - Eagle Point Credit Company Inc. (NYSE: NYSE:ECC) has initiated a continuous public offering of up to 4 million shares of its 7.00% Series AA and AB Convertible and Perpetual Preferred Stock, with a public offering price set at $25 per share.
This move is expected to generate approximately $91 million in net proceeds for the company after accounting for estimated commissions and offering expenses, assuming all shares are sold.
The Preferred Stock comes with a 7.00% annual dividend rate, payable monthly, and has been given a 'BBB' rating by Egan-Jones Ratings Company, an independent rating agency. The perpetual nature of the Preferred Stock allows holders the option to convert their shares into common stock of the company or cash, at the company's discretion, under specific conditions.
Eagle Point Securities LLC, an affiliate of Eagle Point Credit Company and a member of FINRA and SIPC, is managing the dealer for the offering. Prospective investors are advised to thoroughly review the company's investment objectives, risks, charges, and expenses before investing, as detailed in the prospectus supplement dated March 22, 2024, and the accompanying prospectus dated June 9, 2023, filed with the Securities and Exchange Commission (SEC).
The offering is being made solely by means of a prospectus and a related prospectus supplement, which are available upon request from Eagle Point Securities LLC or can be obtained for free by visiting EDGAR on the SEC's website.
Eagle Point Credit Company is a non-diversified, closed-end management investment company, primarily focused on generating high current income and, secondarily, capital appreciation. The company invests mainly in equity and junior debt tranches of collateralized loan obligations and is managed by Eagle Point Credit Management LLC.
The information provided here is based on a press release statement and should be considered in light of potential risks and uncertainties. The company cautions that this press release may contain forward-looking statements, which are not guarantees of future performance and involve known and unknown risks.
These statements are based on current expectations, and actual results may differ materially. The company does not undertake any obligation to update such forward-looking statements.
Investors are encouraged to consult the prospectus and the company's filings with the SEC for a more detailed understanding of the offering and the associated risks.
InvestingPro Insights
Eagle Point Credit Company Inc. (NYSE: ECC) has shown a strong commitment to rewarding its shareholders, as evidenced by the significant 18.93% dividend yield and the fact that the company has consistently maintained dividend payments for 11 consecutive years. This level of shareholder return is particularly noteworthy and aligns with the company's focus on generating high current income.
With a market capitalization of $877.76 million and a price-to-earnings (P/E) ratio of 6.78, ECC presents a profile of a company that offers value to its investors. The P/E ratio is especially interesting as it may suggest the stock is undervalued compared to industry peers, a factor that value investors often look for when assessing potential investments. Moreover, the company’s revenue for the last twelve months as of Q4 2023 stood at $139.07 million, showing a healthy growth trajectory with a 17.43% increase year-over-year.
InvestingPro Tips for ECC highlight the stock's low price volatility, which could appeal to investors seeking stability in their portfolios. Moreover, the company's liquid assets surpass its short-term obligations, indicating a strong liquidity position that can reassure investors of the company's financial health in the near term. For those looking for more in-depth analysis, there are additional InvestingPro Tips available that can provide further insight into ECC's financial metrics and strategic positioning.
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