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Eagle Point Income Company Sells Common Shares

As a holder of ‘senior securities’ (debt or preferred shares) I always like to see common shares being sold by a CEF to help build the total net assets (not the common share net asset/share–BUT the total net assets of the company). This helps build the asset coverage ratio on those senior securities.

Eagle Point Income Company (EIC) has just sold 600,000 shares of common shares at $18.45/share. The coverage ratio on the 5% term preferreds was 286% (on a proforma basis) before this offering. Obviously it now a little bit better.

Even a small common offering from EIC helps to raise the coverage ratio and I am happy to see common buyers cover my butt a little more as an owner of their term preferred issue.

The offering is here.

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