Eagle Point Credit Company Inc. Third Quarter Net Asset Value and Portfolio Update
Eagle Point Credit Company Inc. (NYSE:ECC) (the “Company”) today announced the Company’s net asset value and portfolio update for the third fiscal quarter of 2014 and portfolio activity through November 14, 2014.
Third Quarter Highlights
The Company’s unaudited net asset value at the end of the third quarter was $173.5 million. The total amount of capital invested during the third quarter was $41.3 million. Investment activity included seven CLO equity investments and one new CLO loan accumulation facility investment. Additionally, four of the Company’s five CLO loan accumulation facilities that were outstanding at June 30, 2014 were repaid in full with accrued interest.
As of September 30, 2014 on a look-through basis, the Company had exposure to approximately 921 distinct corporate obligors. The largest look-through obligor represented 0.9% of the Company’s total assets. The top-ten largest look-through obligors represented 7.1% of the Company’s total assets.
Portfolio Activity Through November 14, 2014
The Company’s cash balance on September 30, 2014 was approximately $39.4 million, which includes $8.9 million of new capital invested by our former parent company. The IPO raised an additional $103.1 million of cash for the Company. Taken together, the Company had approximately $142.5 million of cash to deploy in its investment strategy.
The Company has made significant progress towards achieving its ramp up objectives. In the fourth quarter through November 14, the Company has invested or committed to invest $74.1 million net of new investments, across nine CLO new opportunities. This represents approximately 52% of the Company’s cash available for ramp up. The investments include two majority investments and several minority CLO equity investments. The weighted average expected yield on these new investments is 15.12%.
During the fourth quarter, the CLOs associated with both of the CLO loan accumulation facilities listed on the Company’s schedule of investments as of September 30, 2014 have been priced and one has closed.
To date in the fourth quarter, the Company has received cash distributions on its investment portfolio totaling $6.2 million.
The Company will host a conference call at 11:00 a.m. (Eastern Time) on Monday, November 17, 2014 to discuss the quarterly financial results and portfolio update. All interested parties may participate in the conference call by dialing (877) 201-0168 (domestic) or (647) 788-4901 (international), and entering Conference ID 29744201 approximately 10-15 minutes prior to the call. An archived replay of the call will be available shortly after the call until December 2, 2014. To hear the replay, please dial (855) 859-2056 (domestic) or (404) 537-3406 (international). For all replays, enter conference ID 29744201.
The Company closed its initial public offering on October 14, 2014. A registration statement relating to the Company’s common stock has been filed with, and declared effective by, the U.S. Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the shares of common stock referred to in this press release in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.
Investors should consider the Company’s investment objectives, risks, charges and expenses carefully before investing. An investment in the Company is not appropriate for all investors, and the Company is not intended to be a complete investment program. Shares of closed-end investment companies frequently trade at a discount from their net asset value, which may increase investors’ risk of loss.
ABOUT EAGLE POINT CREDIT COMPANY
The Company is a non-diversified, closed-end management investment company. The Company’s investment objective is to generate high current income and capital appreciation primarily through investment in equity and junior debt tranches of collateralized loan obligations. The Company is externally managed and advised by Eagle Point Credit Management LLC. The principals of Eagle Point Credit Management LLC are Thomas P. Majewski, Daniel W. Ko and Daniel M. Spinner. Certain unaudited portfolio information of the Company will be available on the Company’s website (www.eaglepointcredit.com) for each full month following the Company’s initial public offering.
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
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