Eagle Point Credit Corporation Releases New Presentation

Eagle Point Credit (NYSE:ECC) has released a new investor presentation.

We are noting this release because Eagle Point has some term preferreds and baby bonds which we, and other readers, own from time to time.

We like to review these investor presentations as they do help clarify the business–in this case CLOs (collateralized loan obligations).

Investors should be aware while these presentations are helpful they typically have a very company positive “spin”–meaning they should always be read with a small grain of salt.

The presentation is here.

9 thoughts on “Eagle Point Credit Corporation Releases New Presentation”

  1. One cannot forget the role that CLO’s played in the financial crisis, at least the last one anyway.

    Long ECCA for the time being.

  2. Tim, thank you for posting this presentation. I have spoken to ECC’s senior management a few times and was impressed with their professionalism and candor about their CLO holdings. I also like that management owns $28+ million of ECC securities. Disclosure: I am long ECC equity and term preferreds/notes ECCA, ECCX and ECCY. Wishing you profitable investing, Nomad

    1. I would be interested in knowing that as well since I hold a few shares and would need to redeploy.

    2. DaveR, I posted this earlier on ECC/ECCA. They have to give 30 days notice and I do not see any filing yet:
      I did some further research and it looks like ECC must give 30 days redemption notice; I have not seen ECC file, so we may get some accrued interest:
      Redemption Procedures. We will file a notice of our intention to redeem with the SEC so as to provide the 30 calendar day notice period contemplated by Rule 23c-2 under the 1940 Act, or such shorter notice period as may be permitted by the SEC or its staff.

      If we determine to or are required to redeem, in whole or in part, shares of Series A Term Preferred Stock, we will deliver a notice of redemption, or a “Notice of Redemption,” by overnight delivery, by first class mail, postage prepaid or by electronic means to the holders of record of such shares of Series A Term Preferred Stock to be redeemed, or request the Redemption and Paying Agent, on our behalf, to promptly do so by overnight delivery, by first class mail or by electronic means. A Notice of Redemption will be provided not more than 45 calendar days prior to the date fixed for redemption in such Notice of Redemption, or the “Redemption Date.” If fewer than all of the outstanding shares of Series A Term Preferred Stock are to be redeemed pursuant to either the mandatory redemption provisions triggered by our failure to maintain the required asset coverage or the optional redemption provisions, the shares of Series A Term Preferred Stock to be redeemed will be selected either (1) pro rata among Series A Term Preferred Stock, (2) by lot or (3) in such other manner as our board of directors may determine to be fair and equitable. If fewer than all shares of Series A Term Preferred Stock held by any holder are to be redeemed, the Notice of Redemption mailed to such holder will also specify the number of shares of Series A Term Preferred Stock to be redeemed from such holder or the method of determining such number. We may provide in any Notice of Redemption relating to a redemption contemplated to be effected pursuant to the certificate of designation for the Series A Term Preferred Stock that such redemption is subject to one or more conditions precedent and that we will not be required to effect such redemption unless each such condition has been satisfied. No defect in any Notice of Redemption or delivery thereof will affect the validity of redemption proceedings except as required by applicable law.

      If we give a Notice of Redemption, then at any time from and after the giving of such Notice of Redemption and prior to 12:00 noon, New York City time, on the Redemption Date (so long as any conditions precedent to such redemption have been met or waived by us), we will (i) deposit with the Redemption and Paying Agent Deposit Securities having an aggregate market value at the time of deposit not less than the redemption price of the shares of Series A Term Preferred Stock to be redeemed on the Redemption Date and (ii) give the Redemption and Paying Agent irrevocable instructions and authority to pay the applicable redemption price to the holders of shares of Series A Term Preferred Stock called for redemption on the Redemption Date. Notwithstanding the foregoing, if the Redemption Date is the Mandatory Redemption Date, then such deposit of Deposit Securities will be made no later than 15 calendar days prior to the Mandatory Redemption Date.

      Upon the date of the deposit of Deposit Securities by us for purposes of redemption of shares of Series A Term Preferred Stock, all rights of the holders of Series A Term Preferred Stock so called for redemption shall cease and terminate except the right of the holders thereof to receive the applicable redemption price and such shares of Series A Term Preferred Stock will no longer be deemed outstanding for any purpose whatsoever (other than the transfer thereof prior to the applicable Redemption Date and other than the accumulation of dividends on such stock in accordance with the terms of the Series A Term Preferred Stock up to, but excluding, the applicable Redemption Date). We will be entitled to receive, promptly after the Redemption Date, any Deposit Securities in excess of the aggregate redemption price of shares of Series A Term Preferred Stock called for redemption on the Redemption Date. Any Deposit Securities so deposited that are unclaimed at the end of 90 calendar days from the Redemption Date will, to the extent permitted by law, be repaid to us, after which the holders of shares of Series A Term Preferred Stock so called for redemption shall look only to us for payment of the Redemption Price. We will be entitled to receive, from time to time after the Redemption Date, any interest on the Deposit Securities so deposited.

      If any redemption for which a Notice of Redemption has been provided is not made by reason of the absence of our legally available funds in accordance with the certificate of designation and applicable law, such redemption shall be made as soon as practicable to the extent such funds become available. No default will be deemed to have occurred if we have failed to deposit in trust with the Redemption and Paying Agent the applicable redemption price with respect to any shares where (1) the Notice of Redemption relating to such redemption provided that such redemption was subject to one or more conditions precedent and (2) any such condition precedent has not been satisfied at the time or times and in the manner specified in such Notice of Redemption. Notwithstanding the fact that a Notice of Redemption has been provided with respect to any shares of Series A Term Preferred Stock, dividends may be declared and paid on such shares of Series A Term Preferred Stock in accordance with their terms if Deposit Securities for the payment of the redemption price of such shares of Series A Term Preferred Stock shall not have been deposited in trust with the Redemption and Paying Agent for that purpose.

      We may, in our sole discretion and without a stockholder vote, modify the redemption procedures with respect to notification of redemption for the Series A Term Preferred Stock, provided that such modification does not materially and adversely affect the holders of Series A Term Preferred Stock or cause us to violate any applicable law, rule or regulation.
      Reply

    1. We survive another month with the ECCA not being called and ECC keeps the 0.20 per month juicy distribution.
      Eagle Point Credit Company Inc. Announces Third Quarter 2018 Common and Preferred Distributions

      Business Wire Business WireJuly 2, 2018
      GREENWICH, Conn.–(BUSINESS WIRE)–

      Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC, ECCA, ECCB, ECCX, ECCY) today is pleased to announce the declaration of distributions on shares of the Company’s common stock.

      The Company has declared three separate distributions of $0.20 per share on its common stock, payable on each of July 31, 2018, August 31, 2018 and September 28, 2018 to stockholders of record as of July 12, 2018, August 13, 2018 and September 12, 2018, respectively. The following schedule applies to the distributions:

      Ex-Dividend Date Record Date Payable Date
      Amount per common
      share
      July 11, 2018 July 12, 2018 July 31, 2018 $0.20
      August 10, 2018 August 13, 2018 August 31, 2018 $0.20
      September 11, 2018 September 12, 2018 September 28, 2018 $0.20

      The Company is also pleased to announce the declaration of distributions on shares of the Company’s 7.75% Series A Term Preferred Stock due 2022 and 7.75% Series B Term Preferred Stock due 2026 (collectively, the “Preferred Stock”).

      The Company has declared a distribution of $0.161459 per share on its Preferred Stock, payable on each of July 31, 2018, August 31, 2018 and September 28, 2018. The following schedule applies to the distributions:

      Ex-Dividend Date Record Date Payable Date
      Amount per share of
      Preferred Stock
      July 11, 2018 July 12, 2018 July 31, 2018 $0.161459
      August 10, 2018 August 13, 2018 August 31, 2018 $0.161459
      September 11, 2018 September 12, 2018 September 28, 2018 $0.161459

      The distributions on the Preferred Stock reflect an annual distribution rate of 7.75% of the $25 liquidation preference per share of the Preferred Stock for each of July, August and September.

      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 2018 calendar year.

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