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

Eagle Point Credit Management LLC has reduced its beneficial ownership in Carlyle Credit Income Fund's Preferred Shares to 28.11% through a series of secondary market sales.

Summary

• Eagle Point Credit Management LLC (EPCM), a Delaware limited liability company and registered investment adviser, has filed an Amendment No. 6 to its Schedule 13D regarding its holdings in Carlyle Credit Income Fund's Preferred Shares.
• EPCM, on behalf of its managed accounts, now beneficially owns 584,778 Series A Preferred Shares of Carlyle Credit Income Fund.
• This ownership represents approximately 28.11% of the Issuer's total 2,080,000 preferred shares outstanding as of September 30, 2024.
• Subsequent to the last Schedule 13D amendment filed on January 8, 2025, EPCM's accounts engaged in multiple secondary market sales of Preferred Shares.
• These sales occurred between January 8, 2025, and February 21, 2025, with prices ranging from $25.72 to $26.45 per Preferred Share.
• The funds used for the initial acquisition of these shares came from each applicable Account's available investment capital, and the purpose of the investment remains for investment purposes.

Sentiment

Score: 5

Explanation: The document reports a reduction in a significant stake through sales, which could be interpreted neutrally to slightly negative for the issuer as a large holder is reducing exposure, but positive for the reporting person realizing gains. Overall, it's a factual disclosure of portfolio management activity.

Positives

• Eagle Point Credit Management LLC's accounts realized gains by selling Preferred Shares at prices ranging from $25.72 to $26.45 per share, indicating profitable portfolio management.
• The active management of the investment portfolio by EPCM demonstrates ongoing evaluation and strategic adjustments.

Negatives

• Eagle Point Credit Management LLC has reduced its beneficial ownership percentage in Carlyle Credit Income Fund's Preferred Shares, indicating a decrease in its stake.

Future Outlook

Eagle Point Credit Management LLC states that it acquired the Preferred Shares for investment purposes and will continue to analyze such investments on an ongoing basis, reserving the right to increase or decrease its ownership of the Preferred Shares over time.

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 filing reflects a specific investment management firm's portfolio adjustments within the preferred shares market, a common activity for investment advisers managing client accounts. It does not provide broader industry trends or competitive analysis.

Legal Proceedings

• During the past five years, none of the Disclosed Parties has been convicted in any criminal proceeding (excluding traffic violations or similar misdemeanors).
• During the past five years, none of the Disclosed Parties was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to 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.

Stakeholder Impact

• Shareholders of Carlyle Credit Income Fund may note the reduction in stake by a significant institutional holder, which could influence market perception.
• For Eagle Point Credit Management LLC's clients (Accounts), the sales represent portfolio rebalancing and potential profit realization.

Next Steps

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

Key Dates

Keywords

Eagle Point Credit Management, Carlyle Credit Income Fund, Preferred Shares, Schedule 13D, Beneficial Ownership, Investment Adviser, SEC Filing, Equity Stake, Fund Management