CLO owner Eagle Point Institutional Income Fund has priced their new term preferred stock offering. The common shares are not publicly traded.
The issue prices at 8.125% and has a mandatory redemption 10/31/2029.
The issue is a monthly dividend payer.
The company is selling 1,240,000 shares with over allotment shares of 186,000.
The pricing term sheet is here.
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Hi
Is there a difference between Eagle Point Income fund vs Eagle Point Institutional Income Fund?
Yesterday they assigned it the temp ticker: EGLPV
Today or tomorrow, it may be EGLPP, as we’ve often seen the “V” change to “P” before.
https://otce.finra.org/otce/dailyList?viewType=Additions
[Note: if you click this link it may show only the tickers assigned today, not yesterday. Change the Start Date to 10/9/2024 to see EGLPV.]
10/09/2024 13:40:40
10/09/2024 00:00:00
EGLPV
Eagle Point Institutional Income Fund Preferred Series A Term % 10/31/2029
Has anyone seen this trading yet?
Not on Fido, just checked.
Thanks D
Bet Monday it will be loaded into the system.
@Charles M: I was able to buy this morning (Oct 11) as EGLPV on Wellstrade (Wellsfargo’s Brokerage). I had a limit order at $24.75 that executed at $24.70.
@Eyeman: Yes, they are different funds. The website is https://www.epiif.com. and the investor information is available there. One important difference is that the Institutional Fund does not have a publicly traded stock. ‘
Another important difference is that the Institutional Fund seems to have more CLO equity than EIC. At least, it says it’s allowed to on their website. But I wasn’t able to determine what the exact amount is. Anyone happen to know, or know where to find this?
Nathan, I only have Schwab and Fido and neither is allowing trades so must not be involved with the book runners.
Another large CD being called today – I have added some preferreds and BBs of late but also now parking some funds in SGOV to see if we get a nice 5-10% pullback soon.
The one year call option dampens my enthusiasm. Maybe if I can grab it early and cheap but that’s unlikely at 8.125%.
mrinprophet–glad you mentioned that as I had a typo–now corrected. 1st call is 10/17/2026 (instead of 2025).
Tim,
Do you find the CLO income funds, as a class, difficult to analyze?
losing trader–generally I find that their portfolios are pretty similar–i.e. they own slices of the same CLOs. Overall their preferreds and baby bonds trade quite similarly. What I want to know is how good they are at raising capital–this is what gives the senior security holder safety by increasing the asset coverage ratio–Oxford Lane and Eagle Point are true experts at selling ‘at the money’ shares on a continuous basis. Keeping the asset coverage up in the 300% area is very nice to see. As far as analyzing the CLOs they hold–good luck–it can be done but would take huge amount of effort and time. I list the asset coverage ratios on the CEF page.
https://innovativeincomeinvestor.com/preferred-stocks-of-closed-end-funds/
I’d be interested in seeing the research if anyone ever gives it a go.
Out of curiosity, I looked up CCIF assets (investments) and there were 40 or something listed/associated. Maybe code could be written to evaluate each and estimate quality and value. Would need to aggregate a huge data source of offerings and keep it updated. Custom AI LLMs of the near future…
https://www.carlylecreditincomefund.com/static-files/c570b4a0-84a6-4fc3-b32a-19879e711b4a
It sure seems like the risk here is the CLO’s start going South, in which case they have to mark them to get a clean opinion, then they may be violating the debt/preferred “covenant” ….and that would make it difficult to sell anything, no?