SCHEDULE 13D/A: Eagle Point Credit Management Reduces Stake in Carlyle Credit Income Fund Preferred Shares

Eagle Point Credit Management LLC has filed an amended Schedule 13D, disclosing a reduced beneficial ownership of 26.95% in Carlyle Credit Income Fund's Preferred Shares following a series of sales.

Summary

• Eagle Point Credit Management LLC (EPCM) filed Amendment No. 7 to Schedule 13D regarding its beneficial ownership in Carlyle Credit Income Fund's Preferred Shares.
• EPCM, as a registered investment adviser, manages certain private funds and separately managed accounts (the "Accounts") that hold these Preferred Shares.
• As of March 14, 2025, EPCM is deemed to beneficially own 569,095 Series A Preferred Shares, representing approximately 26.95% of the Issuer's outstanding preferred shares.
• The Preferred Shares were acquired over time in multiple secondary transactions using each applicable Account's available investment capital.
• Subsequent to the last Schedule 13D amendment filed on February 24, 2025, the Accounts engaged in multiple secondary market sales of Preferred Shares.
• Sales transactions occurred between February 24, 2025, and March 17, 2025, with prices per Preferred Share ranging from $25.71 to $26.15.
• EPCM holds these shares for investment purposes and reserves the right to increase or decrease the Accounts' ownership over time.
• None of the disclosed parties (EPCM and related entities/individuals) have been convicted in criminal proceedings or subject to civil proceedings related to securities laws in the past five years.

Sentiment

Score: 4

Explanation: The document is a factual disclosure of a reduction in beneficial ownership by an investment adviser through secondary market sales. While it indicates a decrease in the reporting person's stake, the stated purpose remains "investment purposes," and the sales occurred at market prices, suggesting a portfolio management decision rather than a negative outlook on the issuer.

Positives

• The reporting person, Eagle Point Credit Management LLC, is a registered investment adviser, indicating professional management of the investment holdings.
• The sales of Preferred Shares occurred at market prices, suggesting an orderly portfolio management decision rather than a distressed sale.

Negatives

• Eagle Point Credit Management LLC has reduced its beneficial ownership stake in Carlyle Credit Income Fund's Preferred Shares through a series of sales transactions since its last filing.

Future Outlook

Eagle Point Credit Management LLC intends to continue analyzing its investments in Carlyle Credit Income Fund's Preferred Shares on an ongoing basis. The reporting person explicitly reserves the right to increase or decrease its ownership of the Preferred Shares over time based on its investment strategy.

Management Comments

• "EPCM caused the Accounts to acquire the Preferred Shares they hold for investment purposes and will continue to analyze such investments on an ongoing basis."
• "EPCM, on behalf of the Accounts, reserves the right to increase or decrease the Accounts' ownership of the Preferred Shares over time."

Industry Context

This Schedule 13D amendment is a routine regulatory disclosure for significant shareholders in U.S. public companies. It reflects an investment adviser's active portfolio management, specifically adjusting its holdings in a closed-end fund's preferred shares. Such filings provide transparency into large institutional investment positions and changes, which can be of interest to other market participants.

Legal Proceedings

• None of the Disclosed Parties (Eagle Point Credit Management LLC, its holding companies, or board members) have been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors) during the past five years.
• None of the Disclosed Parties were a party to a civil proceeding of a judicial or administrative body of competent jurisdiction that resulted in a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws, or finding any violation with respect to such laws, during the past five years.

Stakeholder Impact

• Shareholders of Carlyle Credit Income Fund: The reduction in a significant holder's stake could be perceived by the market as a shift in investment strategy or reduced confidence by a large investor, potentially influencing market sentiment.
• Accounts advised by Eagle Point Credit Management LLC: The sales represent portfolio adjustments made by EPCM on behalf of its advised accounts, impacting their specific holdings and liquidity.

Next Steps

• Eagle Point Credit Management LLC will continue to analyze its investment in Carlyle Credit Income Fund's Preferred Shares.
• Eagle Point Credit Management LLC reserves the right to increase or decrease its ownership of the Preferred Shares in the future.

Key Dates

Keywords

Carlyle Credit Income Fund, Eagle Point Credit Management, Preferred Shares, Schedule 13D, Beneficial Ownership, Investment Adviser, SEC Filing, Secondary Market Sales, Portfolio Management