Eagle Point Credit to Sell New Baby Bond

CLO owner (collateralized loan obligation) company Eagle Point Credit (ECC) has announced they are selling a new issue of notes ($25 baby bonds).

The company MAY use the proceeds to redeem either the ECCB 7.75% term preferred and/or the 6.687% notes (ECCX) and/or the 6.5% (ECCY) notes.

The issue will have a maturity date in 2029–there will be a optional early redemption available to the company but the dates have not been announced.

The notes are rated BBB+ by Egan Jones.

Eagle Point Credit has term preferreds, perpetual preferreds and baby bonds currently outstanding–they can be seen here.

The preliminary prospectus can be read here.

mbg was on this one and Larry Robard chimed in with yield talk in the 5.25-5.375% area.

3 thoughts on “Eagle Point Credit to Sell New Baby Bond”

  1. Small correction on your note?: I see ECCY as 6.75%, not 6.5%, so might be more likely to be called than the X. Of course I’d assume B is first in line, unless they want to hold onto a preferred vs a bond. And, depending on amounts (which I haven’t bothered to look at yet), X and Y might get called together.

  2. Thanks for info I wasnt fighting City Hall on this. Bought ECCB after sell off from partial call. Looks like a couple monthly divis collected and 20 cents cap gain at 25.38 sell this morn. Was time for me to move on.

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