“ECC generated strong net investment income, net of realized losses, during the quarter, more than covering our common share distributions,” said
“As of quarter-end, 38% of our portfolio was invested in assets outside of the CLO market. Since 2020, we have invested over
THIRD QUARTER 2026 RESULTS
- Net asset value (“NAV”) per common share of
$4.17 as ofSeptember 30, 2026 , compared to$4.51 as ofJune 30, 2026 . - Net investment income (“NII”) of
$0.31 per weighted average common share.1,2 - NII less realized losses from investments of
$0.29 per weighted average common share, compared to negative$0.62 of NII less realized losses from investments for the quarter endedJune 30, 2026 , and$0.16 of NII less realized losses from investments for the quarter endedSeptember 30, 2025 . - GAAP net loss (inclusive of unrealized mark-to-market losses) of
$16.4 million , or$0.12 per weighted average common share. - GAAP net loss was comprised of total investment income of
$63.7 million , realized gains on forward currency contracts of$5.0 million and net unrealized gains on certain liabilities recorded at fair value of$5.0 million , offset by net unrealized losses on investments of$55.8 million , financing costs and operating expenses of$21.9 million , distributions and amortization of offering costs on temporary equity of$6.0 million , net unrealized losses on forward currency contracts of$3.4 million and realized losses on investments of$3.1 million . - Recorded other comprehensive loss of
$4.6 million . - Received
$46.2 million in cash flows from the Company’s investment portfolio,3 or$0.35 per weighted average common share. - Deployed
$62.3 million in gross capital into new investments. The weighted average effective yield of new investments made by the Company during the quarter, which includes a provision for future credit losses, was 19.6% as measured at the time of investment. - As of
September 30, 2026 , the Company’s investment portfolio consisted of 60% CLO investments and 38% private credit investments, with the remainder held in cash. - Completed 7 resets and 9 refinancings of the Company’s CLOs.
- As of
September 30, 2026 :- The weighted average effective yield of the Company’s CLO equity portfolio (excluding called CLOs), based on amortized cost, was 8.4%. This compares to 9.0% as of
June 30, 2026 , and 12.4% as ofSeptember 30, 2025 .4 - The weighted average expected yield of the Company’s CLO equity portfolio (excluding called CLOs), based on fair market value, was 24.2%. This compares to 24.2% as of
June 30, 2026 , and 18.3% as ofSeptember 30, 2025 .4
- The weighted average effective yield of the Company’s CLO equity portfolio (excluding called CLOs), based on amortized cost, was 8.4%. This compares to 9.0% as of
- As of
September 30, 2026 , the Company had debt and preferred equity securities outstanding equal to 49.1% of its total assets (less current liabilities).5 - As of
September 30, 2026 , through its CLO equity investments, on a look-through basis, and based on the most recent CLO trustee reports received by such date:- The Company had indirect exposure to 1,872 unique corporate obligors.
- The largest look-through obligor represented 0.6% of the underlying loan portfolio.
- The top ten largest obligors together represented 4.8% of the underlying loan portfolio.
- The weighted average spread of the underlying loans was 3.11%, down 4 basis points from
June 30, 2026 .
FOURTH QUARTER 2026 PORTFOLIO ACTIVITY THROUGH
- As previously published on the Company’s website, management’s estimate of the range of the Company’s NAV per common share as of
October 31, 2026 , is between$3.73 and$3.83 . - Received
$41.5 million of cash flows from the Company’s investment portfolio. As ofOctober 31, 2026 , some of the Company’s investments have not yet reached their payment dates for the quarter. - Deployed
$5.6 million of gross capital into new investments. - Repurchased
$9.7 million in aggregate principal amount of the Company’s notes due 2029 and$0.5 million in aggregate principal amount of the Company’s Series C Term Preferred Shares due 2031.
FIRST QUARTER 2027 DISTRIBUTIONS
The Company declared three monthly distributions of
Amount per Common Share | Record Dates | Payable Dates |
The Company evaluates its ongoing common share distributions based on a number of factors, including cash flows generated from the Company’s investment portfolio, GAAP earnings and the Company’s requirement to distribute substantially all of its taxable income.
The Company also declared distributions on its 6.75% Series D Preferred Shares (the “Series D Preferred Shares”) as follows:
Preferred Shares Series | Amount per Share | Record Dates | Payable Dates |
Series D Preferred Shares |
The distributions on the Series D Preferred Shares reflect an annual distribution rate of 6.75% of the
The Company also declared distributions on shares of its 7.00% Series AA Convertible Perpetual Preferred Shares and 7.00% Series AB Convertible Perpetual Preferred Shares (together with the 7.00% Series AA Convertible Perpetual Preferred Shares, the “Convertible Preferred Shares”) as follows:
Preferred Shares Series | Amount per Share | Record Dates | Payable Dates |
7.00% Series AA Convertible Perpetual Preferred Shares | |||
7.00% Series AB Convertible Perpetual Preferred Shares |
The distributions on shares of the Convertible Preferred Shares reflect an annual distribution rate of 7.00% of the
FULL REDEMPTION OF 6.50% SERIES C TERM PREFERRED SHARES DUE 2031 AND PARTIAL REDEMPTION OF 5.375% NOTES DUE 2029
The Company has also announced that it will redeem all of its outstanding 6.50% Series C Term Preferred Shares due 2031 (NYSE: ECCC) (the “Series C Term Preferred Shares”) and 25%, or
All of the Series C Term Preferred Shares and the Redeemed 2029 Notes are held in book-entry form through
CONFERENCE CALL
The Company will host a conference call at
All interested parties may participate in the conference call by dialing (877) 407-0789 (domestic) or (201) 689-8562 (international). Please reference Conference ID 13755170 when calling, and the Company recommends dialing in approximately 10 to 15 minutes prior to the call.
A live webcast will also be available on the Company’s website (www.EaglePointCreditCompany.com). Please go to the Investor Relations section at least 15 minutes prior to the call to register, download and install any necessary audio software.
An archived replay of the call will be available shortly afterwards until
ADDITIONAL INFORMATION
The Company has made available on the investor relations section of its website, www.EaglePointCreditCompany.com (in the financial statements and reports section), its unaudited consolidated financial statements as of and for the period ended
ABOUT EAGLE POINT CREDIT COMPANY
The Company is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company seeks to achieve its investment objectives by investing primarily in equity and junior debt tranches of CLOs. The Company may also invest in other securities consistent with its investment objectives, including portfolio debt securities, infrastructure credit, regulatory capital relief transactions, asset-backed securities and other credit instruments. The Company is externally managed and advised by Eagle Point Credit Management LLC.
In addition to the Company’s regulatory requirement to file certain portfolio information with the SEC, the Company makes certain additional financial information available to investors via its website (www.EaglePointCreditCompany.com), press releases and other public disclosures.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the prospectus and the Company’s other filings with the SEC. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Source: Eagle Point Credit Company
| _______________________ |
1 “Per weighted average common share” is based on the average daily number of common shares outstanding for the period. |
2 NII does not reflect distributions and amortization of offering costs on the Series D Preferred Shares and the Series AA/AB Convertible Perpetual Preferred Shares (collectively with the Series D Preferred Shares, the “temporary equity”) of |
3 “Cash flows from investment portfolio” generally includes cash interest, distributions and other payments received from the Company’s investments, excluding principal proceeds from prepayments, repayments, dispositions and other investment realizations. For certain investments, including residual tranches of collateralized loan obligations, collateralized fund obligations and asset-backed securities, such cash flows may include a return of invested capital and may differ from investment income recognized under the effective yield method. |
4 “Weighted average effective yield” is based on an investment’s amortized cost whereas “weighted average expected yield” is based on an investment’s fair market value as of the applicable period end as disclosed in the Company’s financial statements, which is subject to change from period to period. Please refer to the Company’s quarterly unaudited financial statements for additional disclosures. |
5 Over the long term, management expects to generally operate the Company with leverage within a range of 27.5% to 37.5% of total assets (less current liabilities) under normal market conditions. The Company may incur leverage outside of this range, subject to applicable regulatory limits. |
6 The ability of the Company to declare and pay distributions on its common shares is subject to a number of factors, including the Company’s results of operations. Distributions on its common shares may be comprised of NII (regular interest and dividends), capital gains and/or a return of capital. The actual components of the Company’s distributions for US tax reporting purposes can only be finally determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099. |
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Investor and Media Relations:
(203) 340-8510
IR@eaglepointcredit.com
www.EaglePointCreditCompany.com
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