Eagle Point Credit Management LLC, along with its related entities Eagle Point CIF GP I LLC and Eagle Point DIF GP I LLC, has reported a sale of preferred stock in OFS Credit Company, Inc. (NASDAQ:OCCI). The transaction, which took place on March 21, 2024, involved the sale of 6.125% Series C Term Preferred Stock due 2026 at a price of $24.12 per share, totaling $24.
The recent filing with the Securities and Exchange Commission revealed that the sale reduced the holdings of the reporting entities to 42,325 shares of the same series of preferred stock. Additionally, the entities hold 36,294 shares of 5.25% Series E Term Preferred Stock due 2026, which were not part of the reported transaction.
The reporting entities, which are managed by Eagle Point Credit Management LLC, are considered to have an "indirect pecuniary interest" in the securities, as per the footnotes in the SEC filing. The General Partners—Eagle Point CIF GP I LLC and Eagle Point DIF GP I LLC—serve as general partners to certain funds that directly hold the securities. However, the reporting entities have disclaimed beneficial ownership of the securities, stating that the inclusion of these securities in the report is not an admission of beneficial ownership for any purpose.
Kenneth P. Onorio, the Chief Financial Officer of Eagle Point Credit Management LLC and the General Partners, signed off on the SEC filing, which was dated March 25, 2024. Investors monitoring Eagle Point's investment movements will note this transaction as part of their ongoing assessment of the company's financial activities.
InvestingPro Insights
In light of the recent sale of preferred stock by Eagle Point Credit Management LLC in OFS Credit Company, Inc. (NASDAQ:OCCI), investors may find the following InvestingPro data and tips useful for a deeper financial analysis of OCCI:
The market capitalization of OFS Credit Company stands at a modest $109.88 million, reflecting a relatively small-scale operation in the financial market. Despite this, OCCI has demonstrated a robust revenue growth of 15.8% in the last twelve months as of Q1 2024, which could signal a positive trajectory for the company's financial performance. This is further substantiated by a quarterly revenue growth of 17.32% in Q1 2024, indicating a consistent upward trend.
Investors looking for income-generating investments might be attracted to OCCI's significant dividend yield of 17.42%, which is particularly notable in the current investment landscape. This yield is backed by OCCI's strong profitability over the last twelve months, as suggested by an operating income of $21.54 million. Indeed, the company's ability to pay out such dividends is supported by its liquid assets, which exceed its short-term obligations, as highlighted by one of the InvestingPro Tips.
However, those focused on long-term value may heed the InvestingPro Tip cautioning that the company's valuation implies a poor free cash flow yield. This could suggest that while the company is profitable and able to reward shareholders in the short term, its ability to generate cash after accounting for capital expenditures might be less appealing for value-oriented investors.
For those interested in further analysis, there are additional InvestingPro Tips available for OCCI, which can be found at: https://www.investing.com/pro/OCCI. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover more in-depth insights that could inform your investment decisions.
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