Eagle Point Credit Company Inc. Announces Second Quarter 2020 Common Distributions and Provides Financial Update
April 15 2020 - 5:00PM
Business Wire
Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC, ECCB,
ECCX, ECCY) today is pleased to announce the declaration of second
quarter 2020 distributions on shares of the Company’s common stock
and provide certain financial and other updates, including an
update on the Company’s liquidity profile as of April 14, 2020.
Distributions on Common Stock
The Company has declared three separate distributions of $0.08
per share on its common stock, payable on each of May 4, 2020, May
29, 2020 and June 30, 2020 to stockholders of record as of April
27, 2020, May 12, 2020 and June 12, 2020. The following schedule
applies to the distributions:
Record Date
Payable Date
Amount per common share
April 27, 2020
May 4, 2020
$0.08
May 12, 2020
May 29, 2020
$0.08
June 12, 2020
June 30, 2020
$0.08
“We continue to closely monitor and manage our investment
portfolio with respect to the constantly evolving COVID-19
situation,” said Thomas P. Majewski, Chief Executive Officer. “The
Company made the prudent decision to lower our common distributions
for the second quarter 2020 in light of the global economic
headwinds.”
Distributions on common stock are generally paid from net
investment income (regular interest and dividends) and may also
include capital gains and/or a return of capital. The specific tax
characteristics of the distributions will be reported to the
Company’s stockholders on Form 1099 after the end of the 2020
calendar year.
Financial Update
As published on the Company’s website today, management’s
unaudited estimate of the range of the Company’s net asset value
per share of common stock as of March 31, 2020 was between $6.07
and $6.17. In addition, management’s unaudited estimate of the
range of the Company’s net investment income and net realized
capital losses per share of common stock for the quarter ended
March 31, 2020 was between $0.30 and $0.34.
“We believe our balance sheet is well positioned to navigate
through these challenging times,” added Mr. Majewski. “As of April
14, 2020, the Company had approximately $23 million of cash on its
balance sheet and we have no financing maturities prior to October
2026. We have no ‘repurchase’-style financing facilities. Our
balance sheet has enabled us to prudently deploy capital where we
see compelling opportunities.”
The Company has engaged a broker-dealer to repurchase
opportunistically, on the Company’s behalf, a portion of the
Company’s two series of New York Stock Exchange-listed baby bonds
through open market transactions. These baby bonds include the
Company’s unsecured 6.75% notes due 2027 (NYSE: ECCY) and 6.6875%
notes due 2028 (NYSE: ECCX and, together with ECCY, the “Notes”).
The price and other terms of any such repurchases will depend on
prevailing market conditions, the Company’s liquidity and other
factors. Depending on market conditions, the amount of Note
repurchases may be material and may continue through year-end 2020;
however, the Company may reduce or extend this timeframe in its
discretion and without notice. Any Note repurchases will comply
with the provisions of the Investment Company Act of 1940 and the
Securities Exchange Act of 1934. The Company will retire the
repurchased Notes, which would reduce its outstanding leverage.
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 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200415005736/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointCredit.com www.eaglepointcreditcompany.com
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