8-K: Eagle Point Credit Company Announces Issuance of 8.00% Series F Term Preferred Stock

Eagle Point Credit Company has entered into an underwriting agreement for the issuance and sale of 400,000 shares of its 8.00% Series F Term Preferred Stock due 2029.

Summary

• Eagle Point Credit Company Inc. has agreed to sell 400,000 shares of its 8.00% Series F Term Preferred Stock due 2029.
• The offering is expected to close on January 24, 2024, subject to customary closing conditions.
• The Series F Term Preferred Stock is expected to be listed on the New York Stock Exchange under the trading symbol ECCF.
• The shares are being offered at a price of $25.00 per share, with Ladenburg Thalmann & Co. Inc. acting as the underwriter.
• The company has entered into an underwriting agreement with Ladenburg Thalmann & Co. Inc., Eagle Point Credit Management LLC, and Eagle Point Administration LLC.

Sentiment

Score: 7

Explanation: The document reflects a routine capital raising activity, which is generally positive for the company's growth and operations. The terms of the offering appear standard, and there are no indications of significant issues.

Positives

• The issuance of new preferred stock provides the company with additional capital.
• The listing on the NYSE will provide increased visibility and liquidity for the new shares.
• The 8.00% dividend rate may be attractive to investors seeking income.

Risks

• The offering is subject to customary closing conditions, which could potentially delay or prevent the closing.
• Market conditions could impact the trading price of the new preferred stock after listing.
• The company's ability to maintain its regulated investment company status under the Code is crucial for tax benefits.

Future Outlook

The company intends to use the net proceeds from the sale of the shares in the manner specified in the Registration Statement and the Prospectus and to continue to operate in a manner to qualify as a regulated investment company under the Code.

Industry Context

This offering is a common method for closed-end investment companies to raise capital. The issuance of preferred stock is a way to attract income-seeking investors and diversify the company's capital structure.

Comparison to Industry Standards

• Other closed-end funds, such as Oxford Lane Capital Corp. and OFS Credit Company, have also issued preferred stock to raise capital.
• The 8.00% dividend rate is within the range of other preferred stock offerings by similar companies.
• The use of Ladenburg Thalmann as underwriter is common for these types of offerings.

Stakeholder Impact

• Shareholders will see a potential increase in the company's capital base.
• New investors will have the opportunity to invest in the Series F Term Preferred Stock.
• The company's employees and management will be responsible for deploying the new capital effectively.

Next Steps

• The offering is expected to close on January 24, 2024.
• The Series F Term Preferred Stock will be listed on the New York Stock Exchange under the symbol ECCF.
• The company will use the net proceeds from the sale of the shares as specified in the Registration Statement and Prospectus.

Key Dates

Keywords

Preferred Stock, Capital Raise, Underwriting Agreement, Eagle Point Credit Company, NYSE Listing, Series F Term Preferred Stock, Ladenburg Thalmann