Important
Information
This report is transmitted to
the stockholders of Eagle Point Credit Company Inc. (“we”, “us”, “our” or the “Company”).
This report and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter
into any transaction with the Company or any of its affiliates. This report is provided for informational purposes only, does not constitute
an offer to sell securities of the Company or a solicitation of an offer to purchase any such securities, and is not a prospectus. From
time to time, the Company may have a registration statement relating to one or more of its securities on file with the Securities and
Exchange Commission (“SEC”). Any registration statement that has not yet been declared effective by the SEC, and any prospectus
relating thereto, is not complete and may be changed. Any securities that are the subject of such a registration statement may not be
sold until the registration statement filed with the SEC is effective.
The information and its contents
are the property of Eagle Point Credit Management LLC (the “Adviser”) and/or the Company. Any unauthorized dissemination,
copying or use of this presentation is strictly prohibited and may be in violation of law. This presentation is being provided for informational
purposes only.
Investors should
read the Company’s prospectus and SEC filings (which are publicly available on the EDGAR Database on the SEC website at http://www.sec.gov)
carefully and consider their investment goals, time horizons and risk tolerance before investing in the Company. Investors should consider
the Company’s investment objectives, risks, charges and expenses carefully before investing in securities of the Company, as described
in the prospectus. There is no guarantee that any of the goals, targets or objectives described in this report will be achieved.
An investment in the Company is
not appropriate for all investors. The investment program of the Company is speculative, entails substantial risk and includes investment
techniques not employed by traditional mutual funds. An investment in the Company is not intended to be a complete investment program.
Shares of closed-end investment companies, such as the Company, frequently trade at a discount from their net asset value (“NAV”),
which may increase investors’ risk of loss. Past performance is not indicative of, or a guarantee of, future performance.
The performance and certain other portfolio information quoted herein represents information as of March 31, 2024. Nothing herein
shall be relied upon as a representation as to the future performance or portfolio holdings of the Company. Investment return and principal
value of an investment will fluctuate, and shares, when sold, may be worth more or less than their original cost. The Company’s
performance is subject to change since the end of the period noted in this report and may be lower or higher than the performance data
shown herein.
Neither the Adviser nor the Company
provides legal, accounting or tax advice. Any statement regarding such matters is explanatory and may not be relied upon as definitive
advice. Investors should consult with their legal, accounting and tax advisers regarding any potential investment. The information presented
herein is as of the dates noted and is derived from financial and other information of the Company, and, in certain cases, from third
party sources and reports (including reports of third party custodians, CLO collateral managers and trustees) that have not been independently
verified by the Company. As noted herein, certain of this information is estimated and unaudited, and therefore subject to change. The
Company does not represent that such information is accurate or complete, and it should not be relied upon as such. This report does not
purport to be complete and no obligation to update or revise any information herein is being assumed.
About Eagle Point Credit Company
Inc.
The Company is a
publicly-traded, 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, by investing primarily in equity and junior debt tranches
of CLOs. The Company is externally managed and advised by Eagle Point Credit Management LLC. The Company makes certain unaudited
portfolio information available each month on its website in addition to making certain other unaudited financial information available
on its website (www.eaglepointcreditcompany.com). This
information includes (1) an estimated range of the Company’s net investment income (“NII”) and realized capital
gains or losses per share of common stock for each calendar quarter end, generally made available within the first fifteen days after
the applicable calendar month end, (2) an estimated range of the Company’s net asset value (“NAV”) per share of
common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen
days after the
applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable,
and, with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses per
share for the applicable quarter, if available.
Forward-Looking Statements
This report 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 report 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 report.
Table of Contents
Eagle Point Credit Company Inc. &
Subsidiaries
Consolidated Statement of Assets and Liabilities
As of March 31, 2024
(expressed in U.S. dollars)
(Unaudited)
ASSETS | |
| | |
Investments, at fair value (cost $1,128,892,867) (1) | |
$ | 992,861,992 | |
Cash and cash equivalents (restricted cash of $1,250,000) | |
| 63,863,395 | |
Unrealized appreciation on forward currency contracts | |
| 465,817 | |
Interest receivable | |
| 34,967,789 | |
Receivable for shares of common stock issued pursuant to the Company's dividend reinvestment plan | |
| 1,440,134 | |
Excise tax refund receivable | |
| 727,015 | |
Receivable for securities sold | |
| 225,011 | |
Dividend receivable | |
| 41,392 | |
Prepaid expenses | |
| 698,456 | |
Total Assets | |
| 1,095,291,001 | |
| |
| | |
LIABILITIES | |
| | |
6.6875% Unsecured Notes due 2028, at fair value under the fair value option (aggregate principal amount of $32,423,800) (Note 8) | |
| 31,645,629 | |
5.375% Unsecured Notes due 2029, at fair value under the fair value option (aggregate principal amount of $93,250,000) (Note 8) | |
| 84,186,100 | |
6.75% Unsecured Notes due 2031, at fair value under the fair value option (aggregate principal amount of $44,850,000) (Note 8) | |
| 42,893,284 | |
| |
| | |
6.50% Series C Term Preferred Stock due 2031 (Note 7): | |
| | |
6.50% Series C Term Preferred Stock due 2031, at fair value under the fair value option (2,172,553 shares outstanding) | |
| 47,600,636 | |
Unamortized share issuance premium associated with 6.50% Series C Term Preferred Stock due 2031 | |
| 24,097 | |
6.50% Series C Term Preferred Stock due 2031, at fair value, plus associated unamortized share issuance premium | |
| 47,624,733 | |
| |
| | |
8.00% Series F Term Preferred Stock due 2029 (Note 7): | |
| | |
8.00% Series F Term Preferred Stock due 2029, at fair value under the fair value option (2,056,772 shares outstanding) | |
| 51,337,029 | |
Unamortized share issuance premium associated with 8.00% Series F Term Preferred Stock due 2029 | |
| 1,413 | |
8.00% Series F Term Preferred Stock due 2029, at fair value, plus associated unamortized share issuance premium | |
| 51,338,442 | |
| |
| | |
Unrealized depreciation on forward currency contracts | |
| 33,348 | |
Payable for securities purchased | |
| 10,490,828 | |
Incentive fee payable | |
| 6,785,131 | |
Management fee payable | |
| 3,804,325 | |
Professional fees payable | |
| 753,350 | |
Administration fees payable | |
| 358,542 | |
Directors' fees payable | |
| 99,375 | |
Tax expense payable | |
| 24,950 | |
Due to affiliates | |
| 1,720 | |
Other expenses payable | |
| 98,851 | |
Total Liabilities | |
| 280,138,608 | |
| |
| | |
TEMPORARY EQUITY | |
| | |
6.75% Series D Preferred Stock (1,473,782 shares outstanding) (Note 7) | |
| 33,676,923 | |
| |
| | |
COMMITMENTS AND CONTINGENCIES (Note 10) | |
| | |
| |
| | |
NET ASSETS applicable to common stock, $0.001 par value, 100,000,000 shares authorized, 85,301,892 shares issued and outstanding | |
$ | 781,475,470 | |
| |
| | |
NET ASSETS consist of: | |
| | |
Paid-in capital (Note 6) | |
$ | 1,012,873,030 | |
Aggregate distributable earnings (losses) | |
| (225,493,432 | ) |
Accumulated other comprehensive income (loss) | |
| (5,904,128 | ) |
Total Net Assets | |
$ | 781,475,470 | |
Net asset value per share of common stock | |
$ | 9.16 | |
(1) Includes $12,343,196 of affiliated investments at fair value (cost $12,129,844). See Note 5 "Related Party Transactions" for further discussion.
See
accompanying notes to the consolidated financial statements
Eagle Point Credit
Company Inc. & Subsidiaries
Consolidated
Schedule of Investments
As of March 31,
2024
(expressed in U.S.
dollars)
(Unaudited)
Issuer
⁽¹⁾ | |
Investment
Description | |
Acquisition
Date ⁽²⁾ | |
Principal
Amount /
Shares | | |
Cost | | |
Fair
Value ⁽³⁾ | | |
%
of Net
Assets |
Investments
at fair value ⁽⁵⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
CLO
Debt ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Structured
Finance | |
| |
| |
| | | |
| | | |
| | | |
|
United
States | |
| |
| |
| | | |
| | | |
| | | |
|
522 Funding CLO 2017-1(A), Ltd. | |
Secured
Note - Class E-R, 12.78% (3M SOFR + 7.46%, due 10/20/2034) ⁽⁶⁾ | |
09/19/23 | |
$ | 2,000,000 | | |
$ | 1,845,072 | | |
$ | 1,868,600 | | |
0.24% |
AGL
CLO 13 Ltd. | |
Secured
Note - Class E, 12.08% (3M SOFR + 6.76%, due 10/20/2034) ⁽⁶⁾ | |
06/14/23 | |
| 5,950,000 | | |
| 5,656,381 | | |
| 5,927,985 | | |
0.76% |
AGL
CLO 5 Ltd. | |
Secured
Note - Class E-R, 12.03% (3M SOFR + 6.71%, due 07/20/2034) ⁽⁶⁾ | |
08/22/23 | |
| 10,050,000 | | |
| 9,584,133 | | |
| 10,029,900 | | |
1.28% |
Allegany
Park CLO, Ltd. | |
Secured
Note - Class E-R, 11.72% (3M SOFR + 6.40%, due 01/20/2035) ⁽⁶⁾ | |
06/28/23 | |
| 6,000,000 | | |
| 5,427,954 | | |
| 5,831,400 | | |
0.75% |
AMMC
CLO 24, Limited | |
Secured
Note - Class E, 12.15% (3M SOFR + 6.83%, due 01/20/2035) ⁽⁶⁾ | |
08/01/23 | |
| 1,500,000 | | |
| 1,418,200 | | |
| 1,453,200 | | |
0.19% |
Ares
XLIII CLO Ltd. | |
Secured
Note - Class E-R, 12.44% (3M SOFR + 7.12%, due 07/15/2034) ⁽⁶⁾ | |
11/29/23 | |
| 1,650,000 | | |
| 1,569,507 | | |
| 1,619,805 | | |
0.21% |
Ares
LXI CLO Ltd. | |
Secured
Note - Class F-R, 13.35% (3M SOFR + 8.00%, due 04/20/2037) ⁽⁶⁾ | |
03/27/24 | |
| 269,700 | | |
| 269,700 | | |
| 269,700 | | |
0.03% |
Bain
Capital Credit CLO 2019-3, Limited | |
Secured
Note - Class E-R, 12.68% (3M SOFR + 7.36%, due 10/21/2034) ⁽⁶⁾ | |
06/06/23 | |
| 7,300,000 | | |
| 6,498,630 | | |
| 6,997,780 | | |
0.90% |
Bain
Capital Credit CLO 2021-1, Limited | |
Secured
Note - Class E, 12.06% (3M SOFR + 6.76%, due 04/18/2034) ⁽⁶⁾ | |
06/08/23 | |
| 5,600,000 | | |
| 5,012,368 | | |
| 5,402,320 | | |
0.69% |
Bain
Capital Credit CLO 2021-5, Limited | |
Secured
Note - Class E, 12.08% (3M SOFR + 6.76%, due 10/23/2034) ⁽⁶⁾ | |
12/08/23 | |
| 500,000 | | |
| 468,166 | | |
| 484,150 | | |
0.06% |
Barings
CLO Ltd. 2019-III | |
Secured
Note - Class E-R, 12.28% (3M SOFR + 6.96%, due 04/20/2031) ⁽⁶⁾ | |
06/06/23 | |
| 4,500,000 | | |
| 4,013,820 | | |
| 4,492,350 | | |
0.57% |
Barings
CLO Ltd. 2022-I | |
Secured
Note - Class E, 12.31% (3M SOFR + 7.00%, due 04/15/2035) ⁽⁶⁾ | |
03/18/22 | |
| 4,450,000 | | |
| 4,120,991 | | |
| 4,159,860 | | |
0.53% |
Battalion
CLO XXI Ltd. | |
Secured
Note - Class E, 12.04% (3M SOFR + 6.72%, due 07/15/2034) ⁽⁶⁾ | |
06/27/23 | |
| 1,500,000 | | |
| 1,212,427 | | |
| 1,376,850 | | |
0.18% |
Carlyle
US CLO 2021-1, Ltd. | |
Secured
Note - Class D, 11.58% (3M SOFR + 6.26%, due 04/15/2034) ⁽⁶⁾ | |
02/02/21 | |
| 1,250,000 | | |
| 1,240,031 | | |
| 1,239,125 | | |
0.16% |
Carlyle
US CLO 2021-5, Ltd. | |
Secured
Note - Class E, 11.83% (3M SOFR + 6.51%, due 07/20/2034) ⁽⁶⁾ | |
08/18/23 | |
| 1,675,000 | | |
| 1,607,013 | | |
| 1,674,833 | | |
0.21% |
Carlyle
US CLO 2021-10, Ltd. | |
Secured
Note - Class E, 12.08% (3M SOFR + 6.76%, due 10/20/2034) ⁽⁶⁾ | |
03/27/24 | |
| 8,075,000 | | |
| 7,971,618 | | |
| 8,062,080 | | |
1.03% |
Carlyle
US CLO 2024-1, Ltd. | |
Secured
Note - Class E, 12.21% (3M SOFR + 6.92%, due 04/15/2037) ⁽⁶⁾ | |
01/26/24 | |
| 2,650,000 | | |
| 2,636,828 | | |
| 2,633,835 | | |
0.34% |
CarVal
CLO II Ltd. | |
Secured
Note - Class E-R, 12.15% (3M SOFR + 6.83%, due 04/20/2032) ⁽⁶⁾ | |
09/06/23 | |
| 2,587,000 | | |
| 2,473,719 | | |
| 2,574,065 | | |
0.33% |
CBAM
2017-1, Ltd. | |
Secured
Note - Class E, 12.08% (3M SOFR + 6.76%, due 07/20/2030) ⁽⁶⁾ | |
03/27/24 | |
| 5,000,000 | | |
| 4,998,750 | | |
| 4,994,000 | | |
0.64% |
CIFC
Funding 2015-III, Ltd. | |
Secured
Note - Class F-R, 12.37% (3M SOFR + 7.06%, due 04/19/2029) ⁽⁶⁾ | |
02/23/18 | |
| 2,450,000 | | |
| 2,403,116 | | |
| 2,088,625 | | |
0.27% |
CIFC
Funding 2017-III, Ltd. | |
Secured
Note - Class D, 11.58% (3M SOFR + 6.26%, due 07/20/2030) ⁽⁶⁾ | |
09/18/23 | |
| 4,000,000 | | |
| 3,822,077 | | |
| 4,000,000 | | |
0.51% |
CIFC
Funding 2020-I, Ltd. | |
Secured
Note - Class E-R, 11.83% (3M SOFR + 6.51%, due 07/15/2036) ⁽⁶⁾ | |
12/13/23 | |
| 2,950,000 | | |
| 2,906,823 | | |
| 2,907,815 | | |
0.37% |
Dryden
53 CLO, Ltd. | |
Secured
Note - Class F, 13.08% (3M SOFR + 7.76%, due 01/15/2031) ⁽⁶⁾ | |
11/28/17 | |
| 1,295,000 | | |
| 1,209,139 | | |
| 967,365 | | |
0.12% |
Dryden
75 CLO, Ltd. | |
Secured
Note - Class E-R2, 12.18% (3M SOFR + 6.86%, due 04/15/2034) ⁽⁶⁾ | |
05/30/23 | |
| 3,200,000 | | |
| 2,782,502 | | |
| 2,975,040 | | |
0.38% |
Halcyon
Loan Advisors Funding 2018-1 Ltd. | |
Secured
Note - Class A-2, 7.38% (3M SOFR + 2.06%, due 07/21/2031) ⁽⁶⁾ | |
10/21/21 | |
| 6,955,000 | | |
| 6,927,154 | | |
| 6,946,654 | | |
0.89% |
HarbourView
CLO VII-R, Ltd. | |
Secured
Note - Class F, 13.83% (3M SOFR + 8.53%, due 07/18/2031) ⁽⁶⁾ ⁽⁷⁾ | |
05/17/18 | |
| 847,890 | | |
| 815,921 | | |
| 320,503 | | |
0.04% |
HPS
Loan Management 12-2018, Ltd. | |
Secured
Note - Class C, 8.31% (3M SOFR + 3.01%, due 07/18/2031) ⁽⁶⁾ | |
03/13/23 | |
| 1,800,000 | | |
| 1,635,856 | | |
| 1,787,400 | | |
0.23% |
HPS
Loan Management 12-2018, Ltd. | |
Secured
Note - Class D, 10.71% (3M SOFR + 5.41%, due 07/18/2031) ⁽⁶⁾ | |
06/21/23 | |
| 550,000 | | |
| 472,652 | | |
| 537,955 | | |
0.07% |
KKR
CLO 17 Ltd. | |
Secured
Note - Class E-R, 12.97% (3M SOFR + 7.65%, due 04/15/2034) ⁽⁶⁾ | |
09/07/23 | |
| 3,900,000 | | |
| 3,663,826 | | |
| 3,863,730 | | |
0.49% |
KKR
CLO 24 Ltd. | |
Secured
Note - Class E, 11.96% (3M SOFR + 6.64%, due 04/20/2032) ⁽⁶⁾ | |
06/22/23 | |
| 1,400,000 | | |
| 1,255,525 | | |
| 1,396,780 | | |
0.18% |
Madison
Park Funding XLIV, Ltd. | |
Secured
Note - Class E, 11.43% (3M SOFR + 6.11%, due 01/23/2031) ⁽⁶⁾ | |
11/30/23 | |
| 1,575,000 | | |
| 1,525,025 | | |
| 1,574,213 | | |
0.20% |
Marathon
CLO VII Ltd. | |
Secured
Note - Class D, 10.98% (3M SOFR + 5.66%, due 10/28/2025) ⁽⁶⁾ ⁽⁷⁾ ⁽¹⁹⁾ | |
02/08/18 | |
| 3,345,553 | | |
| 1,022,287 | | |
| 2,074,912 | | |
0.27% |
Marathon
CLO VIII Ltd. | |
Secured
Note - Class D-R, 12.00% (3M SOFR + 6.70%, due 10/18/2031) ⁽⁶⁾ | |
08/14/18 | |
| 4,150,000 | | |
| 4,088,225 | | |
| 3,210,440 | | |
0.41% |
Marathon
CLO XI Ltd. | |
Secured
Note - Class D, 11.08% (3M SOFR + 5.76%, due 04/20/2031) ⁽⁶⁾ | |
02/06/18 | |
| 1,650,000 | | |
| 1,650,000 | | |
| 1,347,060 | | |
0.17% |
Morgan
Stanley Eaton Vance CLO 2021-1, Ltd. | |
Secured
Note - Class E, 12.33% (3M SOFR + 7.01%, due 10/20/2034) ⁽⁶⁾ | |
01/25/24 | |
| 4,000,000 | | |
| 3,902,662 | | |
| 3,932,800 | | |
0.50% |
Neuberger
Berman Loan Advisers CLO 31, Ltd. | |
Secured
Note - Class E-R, 12.08% (3M SOFR + 6.76%, due 04/20/2031) ⁽⁶⁾ | |
06/08/23 | |
| 5,000,000 | | |
| 4,797,281 | | |
| 4,982,000 | | |
0.64% |
Neuberger
Berman Loan Advisers CLO 33, Ltd. | |
Secured
Note - Class E-R, 11.83% (3M SOFR + 6.51%, due 10/16/2033) ⁽⁶⁾ | |
07/27/23 | |
| 1,450,000 | | |
| 1,376,050 | | |
| 1,429,120 | | |
0.18% |
Neuberger
Berman Loan Advisers CLO 45, Ltd. | |
Secured
Note - Class E, 11.83% (3M SOFR + 6.51%, due 10/14/2035) ⁽⁶⁾ | |
12/13/23 | |
| 5,000,000 | | |
| 4,923,430 | | |
| 4,999,500 | | |
0.64% |
Octagon
51, Ltd. | |
Secured
Note - Class E, 12.33% (3M SOFR + 7.01%, due 07/20/2034) ⁽⁶⁾ | |
01/24/24 | |
| 2,500,000 | | |
| 2,437,822 | | |
| 2,453,250 | | |
0.31% |
Octagon
59, Ltd. | |
Secured
Note - Class E, 12.91% (3M SOFR + 7.60%, due 05/15/2035) ⁽⁶⁾ | |
06/12/23 | |
| 3,375,000 | | |
| 3,112,497 | | |
| 3,198,488 | | |
0.41% |
Octagon
Investment Partners XXI, Ltd. | |
Secured
Note - Class D-RR, 12.57% (3M SOFR + 7.26%, due 02/14/2031) ⁽⁶⁾ | |
06/06/23 | |
| 825,000 | | |
| 705,137 | | |
| 810,563 | | |
0.10% |
Octagon
Investment Partners 27, Ltd. | |
Secured
Note - Class F-R, 13.43% (3M SOFR + 8.11%, due 07/15/2030) ⁽⁶⁾ | |
07/05/18 | |
| 900,000 | | |
| 854,829 | | |
| 633,510 | | |
0.08% |
Octagon
Investment Partners 43, Ltd. | |
Secured
Note - Class E, 12.19% (3M SOFR + 6.86%, due 10/25/2032) ⁽⁶⁾ | |
06/26/23 | |
| 4,325,000 | | |
| 3,989,080 | | |
| 4,166,705 | | |
0.53% |
Octagon
Investment Partners 44, Ltd. | |
Secured
Note - Class E-R, 12.33% (3M SOFR + 7.01%, due 10/15/2034) ⁽⁶⁾ | |
08/27/21 | |
| 762,500 | | |
| 762,500 | | |
| 664,976 | | |
0.09% |
OZLM
XXII, Ltd. | |
Secured
Note - Class D, 10.88% (3M SOFR + 5.56%, due 01/17/2031) ⁽⁶⁾ | |
02/05/18 | |
| 900,000 | | |
| 897,726 | | |
| 837,990 | | |
0.11% |
Regatta
X Funding Ltd. | |
Secured
Note - Class D, 8.33% (3M SOFR + 3.01%, due 01/17/2031) ⁽⁶⁾ | |
06/02/22 | |
| 1,850,000 | | |
| 1,786,135 | | |
| 1,843,895 | | |
0.24% |
Rockford
Tower CLO 2021-2, Ltd. | |
Secured
Note - Class E, 11.98% (3M SOFR + 6.66%, due 07/20/2034) ⁽⁶⁾ | |
02/06/24 | |
| 3,400,000 | | |
| 3,175,293 | | |
| 3,192,260 | | |
0.41% |
RR
1 Ltd. | |
Secured
Note - Class D-1-B, 11.93% (3M SOFR + 6.61%, due 07/15/2035) ⁽⁶⁾ | |
01/24/24 | |
| 3,000,000 | | |
| 2,908,426 | | |
| 2,943,000 | | |
0.38% |
RR
3 Ltd. | |
Secured
Note - Class C-R2, 8.08% (3M SOFR + 2.76%, due 01/15/2030) ⁽⁶⁾ | |
10/27/21 | |
| 2,175,000 | | |
| 2,145,730 | | |
| 2,139,548 | | |
0.27% |
RR
4 Ltd. | |
Secured
Note - Class D, 11.43% (3M SOFR + 6.11%, due 04/15/2030) ⁽⁶⁾ | |
08/04/23 | |
| 8,750,000 | | |
| 8,029,163 | | |
| 8,666,000 | | |
1.11% |
RR
6 Ltd. | |
Secured
Note - Class D-R, 11.43% (3M SOFR + 6.11%, due 04/15/2036) ⁽⁶⁾ | |
06/26/23 | |
| 4,260,000 | | |
| 3,795,912 | | |
| 4,076,820 | | |
0.52% |
RR
8 Ltd. | |
Secured
Note - Class D, 11.98% (3M SOFR + 6.66%, due 04/15/2033) ⁽⁶⁾ | |
11/08/23 | |
| 2,725,000 | | |
| 2,629,864 | | |
| 2,702,383 | | |
0.35% |
Steele
Creek CLO 2019-1, Ltd. | |
Secured
Note - Class E, 12.59% (3M SOFR + 7.27%, due 04/15/2032) ⁽⁶⁾ | |
03/22/19 | |
| 3,091,000 | | |
| 2,977,552 | | |
| 2,834,138 | | |
0.36% |
TICP
CLO VII, Ltd. | |
Secured
Note - Class E-R, 12.63% (3M SOFR + 7.31%, due 04/15/2033) ⁽⁶⁾ | |
09/06/23 | |
| 3,400,000 | | |
| 3,279,590 | | |
| 3,393,880 | | |
0.43% |
Wehle
Park CLO, Ltd. | |
Secured
Note - Class E, 12.07% (3M SOFR + 6.75%, due 04/21/2035) ⁽⁶⁾ | |
11/07/23 | |
| 1,410,000 | | |
| 1,331,713 | | |
| 1,406,052 | | |
0.18% |
Wind
River 2019-2 CLO Ltd. | |
Secured
Note - Class E-R, 12.31% (3M SOFR + 7.00%, due 01/15/2035) ⁽⁶⁾ | |
02/04/22 | |
| 2,650,000 | | |
| 2,491,824 | | |
| 2,456,285 | | |
0.31% |
Zais
CLO 9, Limited | |
Secured
Note - Class D, 9.03% (3M SOFR + 3.71%, due 07/20/2031) ⁽⁶⁾ | |
01/10/24 | |
| 1,650,000 | | |
| 1,567,500 | | |
| 1,650,000 | | |
0.21% |
Total
CLO Debt | |
| |
| |
| | | |
| 168,083,152 | | |
| 172,503,493 | | |
22.06% |
| |
| |
| |
| | | |
| | | |
| | | |
|
CLO
Equity ⁽⁴⁾ ⁽⁸⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Structured
Finance | |
| |
| |
| | | |
| | | |
| | | |
|
United
States | |
| |
| |
| | | |
| | | |
| | | |
|
1988
CLO 1 Ltd. | |
Income
Note (effective yield 8.50%, maturity 10/15/2037) ⁽⁹⁾ ⁽¹⁸⁾ | |
09/23/22 | |
| 7,876,000 | | |
| 5,689,598 | | |
| 5,618,864 | | |
0.72% |
1988
CLO 2 Ltd. | |
Income
Note (effective yield 6.75%, maturity 04/15/2038) ⁽⁹⁾ ⁽¹⁸⁾ | |
02/08/23 | |
| 9,334,000 | | |
| 6,446,792 | | |
| 5,712,947 | | |
0.73% |
1988
CLO 3 Ltd. | |
Income
Note (effective yield 10.08%, maturity 10/15/2038) ⁽⁹⁾ ⁽¹⁸⁾ | |
09/12/23 | |
| 9,267,000 | | |
| 7,099,398 | | |
| 6,875,047 | | |
0.88% |
ALM
VIII, Ltd. | |
Preferred
Share (effective yield 0.00%, maturity 10/20/2028) ⁽⁹⁾ ⁽¹¹⁾ | |
06/02/16 | |
| 8,725,000 | | |
| - | | |
| 13,088 | | |
0.00% |
Anchorage
Credit Funding 12, Ltd. | |
Income
Note (effective yield 12.73%, maturity 10/25/2038) ⁽⁹⁾ | |
09/04/20 | |
| 9,250,000 | | |
| 6,658,882 | | |
| 3,831,665 | | |
0.49% |
Anchorage
Credit Funding 13, Ltd. | |
Subordinated
Note (effective yield 11.71%, maturity 07/27/2039) ⁽⁹⁾ | |
05/25/21 | |
| 1,200,000 | | |
| 1,078,356 | | |
| 662,859 | | |
0.08% |
Ares
XXXIV CLO Ltd. | |
Subordinated
Note (effective yield 21.36%, maturity 04/17/2033) ⁽⁹⁾ | |
09/16/20 | |
| 18,075,000 | | |
| 6,688,395 | | |
| 5,517,445 | | |
0.71% |
Ares
XLI CLO Ltd. | |
Income
Note (effective yield 13.84%, maturity 04/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
11/29/16 | |
| 29,388,000 | | |
| 14,298,422 | | |
| 11,258,979 | | |
1.44% |
Ares
XLIII CLO Ltd. | |
Income
Note (effective yield 10.75%, maturity 10/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ | |
04/04/17 | |
| 30,850,000 | | |
| 15,131,834 | | |
| 10,951,902 | | |
1.40% |
Ares
XLIII CLO Ltd. | |
Subordinated
Note (effective yield 10.75%, maturity 10/15/2029) ⁽⁹⁾ | |
11/10/21 | |
| 1,505,000 | | |
| 683,485 | | |
| 483,723 | | |
0.06% |
Ares
XLIV CLO Ltd. | |
Subordinated
Note (effective yield 15.15%, maturity 04/15/2034) ⁽⁹⁾ | |
10/06/21 | |
| 13,131,000 | | |
| 4,713,670 | | |
| 3,940,694 | | |
0.50% |
Ares
XLVII CLO Ltd. | |
Subordinated
Note (effective yield 12.50%, maturity 04/15/2030) ⁽⁹⁾ | |
10/22/20 | |
| 8,500,000 | | |
| 3,401,921 | | |
| 2,295,538 | | |
0.29% |
Ares
LI CLO Ltd. | |
Income
Note (effective yield 14.66%, maturity 07/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
01/25/19 | |
| 13,353,849 | | |
| 8,550,714 | | |
| 6,800,683 | | |
0.87% |
Ares
LVIII CLO Ltd. | |
Subordinated
Note (effective yield 15.19%, maturity 01/15/2035) ⁽⁹⁾ | |
08/17/21 | |
| 6,175,000 | | |
| 4,395,893 | | |
| 3,879,793 | | |
0.50% |
Ares
LXI CLO Ltd. | |
Subordinated
Note (effective yield 21.06%, maturity 10/20/2034) ⁽⁹⁾ | |
01/24/24 | |
| 4,650,000 | | |
| 2,976,000 | | |
| 2,872,980 | | |
0.37% |
Ares
LXIV CLO Ltd. | |
Subordinated
Note (effective yield 18.34%, maturity 04/15/2035) ⁽⁹⁾ | |
01/26/23 | |
| 15,875,000 | | |
| 12,201,916 | | |
| 12,105,760 | | |
1.55% |
Ares
LXIX CLO Ltd. | |
Income
Note (effective yield 22.96%, maturity 04/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
01/31/24 | |
| 14,100,000 | | |
| 10,162,716 | | |
| 10,197,687 | | |
1.30% |
Bain
Capital Credit CLO 2021-1, Limited | |
Subordinated
Note (effective yield 15.09%, maturity 04/18/2034) ⁽⁹⁾ | |
04/29/21 | |
| 9,100,000 | | |
| 6,947,123 | | |
| 5,171,035 | | |
0.66% |
Bain
Capital Credit CLO 2021-7, Limited | |
Subordinated
Note (effective yield 26.09%, maturity 01/22/2035) ⁽⁹⁾ | |
09/05/23 | |
| 7,250,000 | | |
| 4,330,187 | | |
| 4,446,021 | | |
0.57% |
Bardin
Hill CLO 2021-2 Ltd. | |
Subordinated
Note (effective yield 36.33%, maturity 10/25/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/24/21 | |
| 5,550,000 | | |
| 3,243,565 | | |
| 3,412,879 | | |
0.44% |
Barings
CLO Ltd. 2018-I | |
Income
Note (effective yield 4.53%, maturity 04/15/2031) ⁽⁹⁾ ⁽¹⁰⁾ | |
02/23/18 | |
| 20,808,000 | | |
| 8,931,071 | | |
| 5,992,726 | | |
0.77% |
Barings
CLO Ltd. 2019-I | |
Income
Note (effective yield 17.90%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
02/12/19 | |
| 13,085,000 | | |
| 8,743,592 | | |
| 7,305,715 | | |
0.93% |
Barings
CLO Ltd. 2019-II | |
Income
Note (effective yield 15.64%, maturity 04/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/15/19 | |
| 16,150,000 | | |
| 9,789,281 | | |
| 7,599,672 | | |
0.97% |
Barings
CLO Ltd. 2020-I | |
Income
Note (effective yield 33.23%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/04/20 | |
| 5,550,000 | | |
| 2,811,967 | | |
| 3,626,228 | | |
0.46% |
Barings
CLO Ltd. 2021-II | |
Subordinated
Note (effective yield 18.63%, maturity 07/15/2034) ⁽⁹⁾ | |
09/07/22 | |
| 9,250,000 | | |
| 6,697,367 | | |
| 6,047,523 | | |
0.77% |
Barings
CLO Ltd. 2021-III | |
Subordinated
Note (effective yield 11.57%, maturity 01/18/2035) ⁽⁹⁾ | |
11/17/21 | |
| 2,000,000 | | |
| 1,468,663 | | |
| 1,147,479 | | |
0.15% |
Barings
CLO Ltd. 2022-I | |
Income
Note (effective yield 20.81%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/18/22 | |
| 7,500,000 | | |
| 5,520,737 | | |
| 5,403,819 | | |
0.69% |
Barings
CLO Ltd. 2022-II | |
Income
Note (effective yield 32.36%, maturity 07/15/2072) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/21/22 | |
| 10,800,000 | | |
| 4,011,437 | | |
| 5,523,386 | | |
0.71% |
Basswood
Park CLO, Ltd. | |
Subordinated
Note (effective yield 18.32%, maturity 04/20/2034) ⁽⁹⁾ | |
08/17/21 | |
| 27,750,000 | | |
| 20,261,421 | | |
| 19,006,030 | | |
2.43% |
Basswood
Park CLO, Ltd. | |
Class
M-1 Notes (effective yield 1817.80%, maturity 04/20/2034) ⁽⁹⁾ | |
02/15/24 | |
| 5,000,000 | | |
| 4,500 | | |
| 28,796 | | |
0.00% |
Basswood
Park CLO, Ltd. | |
Class
M-2 Notes (effective yield 1817.80%, maturity 04/20/2034) ⁽⁹⁾ | |
02/15/24 | |
| 5,000,000 | | |
| 10,500 | | |
| 67,191 | | |
0.01% |
Battalion
CLO IX Ltd. | |
Income
Note (effective yield 13.52%, maturity 07/15/2031) ⁽⁹⁾ ⁽¹⁰⁾ | |
07/09/15 | |
| 18,734,935 | | |
| 8,166,634 | | |
| 4,924,149 | | |
0.63% |
See accompanying
notes to the consolidated financial statements
Eagle Point Credit
Company Inc. & Subsidiaries
Consolidated
Schedule of Investments
As of March 31,
2024
(expressed in U.S.
dollars)
(Unaudited)
Issuer
⁽¹⁾ | |
Investment
Description | |
Acquisition
Date ⁽²⁾ | |
Principal
Amount /
Shares | | |
Cost | | |
Fair
Value ⁽³⁾ | | |
%
of Net
Assets |
CLO
Equity ⁽⁴⁾ ⁽⁸⁾ (continued) | |
| |
| |
| | | |
| | | |
| | | |
|
Structured Finance
(continued) | |
| |
| |
| | | |
| | | |
| | | |
|
United States
(continued) | |
| |
| |
| | | |
| | | |
| | | |
|
Battalion CLO
18 Ltd. | |
Income Note (effective
yield 35.63%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
08/25/20 | |
$ | 8,400,000 | | |
$ | 4,529,900 | | |
$ | 4,531,558 | | |
0.58% |
Battalion CLO
XIX Ltd. | |
Income Note (effective
yield 26.40%, maturity 04/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/11/21 | |
| 8,600,000 | | |
| 4,718,776 | | |
| 4,042,241 | | |
0.52% |
Battalion CLO
XXIII Ltd. | |
Income Note (effective
yield 22.11%, maturity 07/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
05/19/22 | |
| 8,800,000 | | |
| 6,258,257 | | |
| 4,816,621 | | |
0.62% |
Bear Mountain
Park CLO, Ltd. | |
Income Note (effective
yield 18.41%, maturity 07/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
07/13/22 | |
| 12,875,000 | | |
| 10,572,907 | | |
| 11,960,420 | | |
1.53% |
Belmont Park
CLO, Ltd. | |
Income Note (effective
yield 17.29%, maturity 04/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
02/21/24 | |
| 14,950,000 | | |
| 10,831,724 | | |
| 10,916,704 | | |
1.40% |
Bethpage Park
CLO, Ltd. | |
Income Note (effective
yield 17.12%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/24/21 | |
| 14,750,000 | | |
| 8,982,605 | | |
| 8,269,300 | | |
1.06% |
BlueMountain
CLO 2013-2 Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 10/22/2030) ⁽⁹⁾ ⁽¹²⁾ | |
10/21/14 | |
| 23,000,000 | | |
| 5,451,809 | | |
| 1,150,000 | | |
0.15% |
BlueMountain
CLO 2018-1 Ltd. | |
Subordinated
Note (effective yield 48.12%, maturity 07/30/2030) ⁽⁹⁾ | |
03/26/20 | |
| 5,550,000 | | |
| 780,455 | | |
| 613,044 | | |
0.08% |
BlueMountain
CLO XXIII Ltd. | |
Subordinated
Note (effective yield 13.30%, maturity 10/20/2031) ⁽⁹⁾ | |
02/24/21 | |
| 6,340,000 | | |
| 3,627,984 | | |
| 2,636,972 | | |
0.34% |
BlueMountain
CLO XXIV Ltd. | |
Subordinated
Note (effective yield 28.17%, maturity 04/20/2034) ⁽⁹⁾ | |
06/16/20 | |
| 7,375,000 | | |
| 3,907,782 | | |
| 3,523,160 | | |
0.45% |
BlueMountain
CLO XXV Ltd. | |
Subordinated
Note (effective yield 25.06%, maturity 07/15/2036) ⁽⁹⁾ | |
06/23/20 | |
| 6,525,000 | | |
| 3,850,126 | | |
| 3,291,624 | | |
0.42% |
Bristol Park
CLO, Ltd. | |
Income Note (effective
yield 0.00%, maturity 04/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
11/01/16 | |
| 34,250,000 | | |
| 12,299,654 | | |
| 8,623,649 | | |
1.10% |
Carlyle Global
Market Strategies CLO 2014-5, Ltd. | |
Subordinated
Note (effective yield 10.42%, maturity 07/15/2031) ⁽⁹⁾ | |
06/02/16 | |
| 10,800,000 | | |
| 2,272,314 | | |
| 1,576,520 | | |
0.20% |
Carlyle US CLO
2017-4, Ltd. | |
Income Note (effective
yield 0.00%, maturity 01/15/2030) ⁽⁹⁾ ⁽¹²⁾ | |
10/13/17 | |
| 9,000,000 | | |
| 3,565,068 | | |
| 2,340,000 | | |
0.30% |
Carlyle US CLO
2018-1, Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 04/20/2031) ⁽⁹⁾ ⁽¹¹⁾ | |
03/23/21 | |
| 4,730,000 | | |
| 1,180,846 | | |
| 567,600 | | |
0.07% |
Carlyle US CLO
2018-4, Ltd. | |
Subordinated
Note (effective yield 9.31%, maturity 01/20/2031) ⁽⁹⁾ | |
02/18/21 | |
| 6,625,000 | | |
| 3,898,761 | | |
| 2,979,386 | | |
0.38% |
Carlyle US CLO
2019-4, Ltd. | |
Subordinated
Note (effective yield 20.46%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
04/13/21 | |
| 7,005,000 | | |
| 5,268,306 | | |
| 5,108,270 | | |
0.65% |
Carlyle US CLO
2021-1, Ltd. | |
Income Note (effective
yield 22.79%, maturity 04/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
02/02/21 | |
| 13,425,000 | | |
| 7,042,245 | | |
| 7,003,780 | | |
0.90% |
Carlyle US CLO
2021-4, Ltd. | |
Subordinated
Note (effective yield 14.59%, maturity 04/20/2034) ⁽⁹⁾ | |
11/17/21 | |
| 11,475,000 | | |
| 9,421,858 | | |
| 8,008,993 | | |
1.02% |
Carlyle US CLO
2021-7, Ltd. | |
Income Note (effective
yield 18.52%, maturity 10/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
08/11/21 | |
| 10,400,000 | | |
| 7,222,438 | | |
| 6,643,234 | | |
0.85% |
Carlyle US CLO
2022-1, Ltd. | |
Income Note (effective
yield 19.48%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/15/22 | |
| 8,150,000 | | |
| 5,842,190 | | |
| 5,311,766 | | |
0.68% |
Carlyle US CLO
2023-3, Ltd. | |
Income Note (effective
yield 16.23%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
07/06/23 | |
| 9,400,000 | | |
| 6,962,327 | | |
| 6,217,619 | | |
0.80% |
Carlyle US CLO
2024-1, Ltd. | |
Income Note (effective
yield 15.00%, maturity 04/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
01/26/24 | |
| 11,475,000 | | |
| 9,433,701 | | |
| 9,374,173 | | |
1.20% |
CIFC Funding
2013-II, Ltd. | |
Income Note (effective
yield 0.00%, maturity 10/18/2030) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
06/06/14 | |
| 17,265,625 | | |
| 3,209,976 | | |
| 2,544,394 | | |
0.33% |
CIFC Funding
2014, Ltd. | |
Income Note (effective
yield 11.71%, maturity 01/18/2031) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/06/14 | |
| 16,033,750 | | |
| 3,721,693 | | |
| 2,521,705 | | |
0.32% |
CIFC Funding
2014-III, Ltd. | |
Income Note (effective
yield 14.77%, maturity 10/22/2031) ⁽⁹⁾ | |
02/17/15 | |
| 19,725,000 | | |
| 5,192,972 | | |
| 4,005,867 | | |
0.51% |
CIFC Funding
2014-IV-R, Ltd. | |
Income Note (effective
yield 15.07%, maturity 01/17/2035) ⁽⁹⁾ | |
08/05/14 | |
| 8,457,500 | | |
| 3,297,523 | | |
| 2,520,161 | | |
0.32% |
CIFC Funding
2015-III, Ltd. | |
Income Note (effective
yield 0.00%, maturity 04/19/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
06/23/15 | |
| 9,724,324 | | |
| 1,788,701 | | |
| 901,392 | | |
0.12% |
CIFC Funding
2019-III, Ltd. | |
Subordinated
Note (effective yield 20.05%, maturity 10/16/2034) ⁽⁹⁾ | |
04/18/19 | |
| 2,875,000 | | |
| 2,126,270 | | |
| 2,166,582 | | |
0.28% |
CIFC Funding
2019-IV, Ltd. | |
Income Note (effective
yield 18.31%, maturity 10/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/07/19 | |
| 14,000,000 | | |
| 10,091,261 | | |
| 9,685,297 | | |
1.24% |
CIFC Funding
2019-V, Ltd. | |
Subordinated
Note (effective yield 20.74%, maturity 01/15/2035) ⁽⁹⁾ | |
02/07/23 | |
| 12,975,000 | | |
| 9,393,397 | | |
| 9,874,262 | | |
1.26% |
CIFC Funding
2020-I, Ltd. | |
Income Note (effective
yield 32.52%, maturity 07/15/2032) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/12/20 | |
| 9,400,000 | | |
| 5,001,292 | | |
| 6,218,128 | | |
0.80% |
CIFC Funding
2020-II, Ltd. | |
Subordinated
Note (effective yield 22.61%, maturity 10/20/2034) ⁽⁹⁾ | |
02/07/23 | |
| 5,500,000 | | |
| 4,009,277 | | |
| 4,237,812 | | |
0.54% |
CIFC Funding
2020-IV, Ltd. | |
Income Note (effective
yield 21.94%, maturity 01/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
12/11/20 | |
| 7,900,000 | | |
| 5,606,434 | | |
| 5,780,161 | | |
0.74% |
CIFC Funding
2021-III, Ltd. | |
Income Note (effective
yield 20.03%, maturity 07/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
04/23/21 | |
| 17,275,000 | | |
| 10,178,577 | | |
| 9,668,649 | | |
1.24% |
CIFC Funding
2021-VI, Ltd. | |
Income Note (effective
yield 19.12%, maturity 10/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/22/21 | |
| 12,200,000 | | |
| 8,985,383 | | |
| 8,579,922 | | |
1.10% |
CIFC Funding
2022-I, Ltd. | |
Income Note (effective
yield 19.46%, maturity 04/17/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
01/27/22 | |
| 12,950,000 | | |
| 10,053,190 | | |
| 10,092,931 | | |
1.29% |
CIFC Funding
2022-VI, Ltd. | |
Income Note (effective
yield 15.14%, maturity 07/16/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
08/01/22 | |
| 10,700,000 | | |
| 8,543,866 | | |
| 9,177,029 | | |
1.17% |
CIFC Funding
2023-I, Ltd. | |
Income Note (effective
yield 20.65%, maturity 10/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/14/23 | |
| 11,550,000 | | |
| 9,240,446 | | |
| 10,569,295 | | |
1.35% |
Cutwater 2015-I,
Ltd. | |
Income Note (effective
yield 0.00%, maturity 01/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
05/01/15 | |
| 31,100,000 | | |
| 8,252,702 | | |
| 496,319 | | |
0.06% |
Dewolf Park CLO,
Ltd. | |
Income Note (effective
yield 1.53%, maturity 10/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ | |
08/10/17 | |
| 7,700,000 | | |
| 3,400,298 | | |
| 2,614,286 | | |
0.33% |
Dryden 53 CLO,
Ltd. | |
Income Note (effective
yield 0.00%, maturity 01/15/2031) ⁽⁹⁾ ⁽¹²⁾ | |
11/28/17 | |
| 7,684,999 | | |
| 2,472,497 | | |
| 1,613,506 | | |
0.21% |
Dryden 64 CLO,
Ltd. | |
Subordinated
Note (effective yield 21.26%, maturity 04/18/2031) ⁽⁹⁾ | |
05/11/20 | |
| 9,600,000 | | |
| 2,569,717 | | |
| 1,914,978 | | |
0.25% |
Dryden 68 CLO,
Ltd. | |
Income Note (effective
yield 13.65%, maturity 07/15/2049) ⁽⁹⁾ ⁽¹⁰⁾ | |
05/30/19 | |
| 14,080,000 | | |
| 8,942,893 | | |
| 6,254,029 | | |
0.80% |
Dryden 85 CLO,
Ltd. | |
Income Note (effective
yield 24.03%, maturity 10/15/2049) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/17/20 | |
| 8,610,000 | | |
| 6,098,580 | | |
| 5,439,654 | | |
0.70% |
Dryden 94 CLO,
Ltd. | |
Income Note (effective
yield 20.77%, maturity 07/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
04/28/22 | |
| 12,200,000 | | |
| 8,645,064 | | |
| 7,688,479 | | |
0.98% |
Dryden 109 CLO,
Ltd. | |
Subordinated
Note (effective yield 19.71%, maturity 04/20/2035) ⁽⁹⁾ | |
02/15/23 | |
| 8,100,000 | | |
| 6,155,761 | | |
| 5,366,882 | | |
0.69% |
Eaton Vance CLO
2015-1, Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 01/20/2030) ⁽⁹⁾ ⁽¹²⁾ | |
06/05/20 | |
| 6,372,500 | | |
| 1,326,136 | | |
| 828,425 | | |
0.11% |
Eaton Vance CLO
2020-1, Ltd. | |
Subordinated
Note (effective yield 18.67%, maturity 10/15/2034) ⁽⁹⁾ | |
08/08/23 | |
| 6,500,000 | | |
| 4,702,990 | | |
| 4,119,315 | | |
0.53% |
Eaton Vance CLO
2020-2, Ltd. | |
Subordinated
Note (effective yield 21.34%, maturity 01/15/2035) ⁽⁹⁾ | |
09/16/22 | |
| 11,175,000 | | |
| 7,682,616 | | |
| 7,059,746 | | |
0.90% |
Elmwood CLO 14
Ltd. | |
Subordinated
Note (effective yield 21.81%, maturity 04/20/2035) ⁽⁹⁾ | |
06/06/23 | |
| 7,000,000 | | |
| 5,042,155 | | |
| 5,542,728 | | |
0.71% |
Elmwood CLO 17
Ltd. | |
Subordinated
Note (effective yield 20.35%, maturity 07/17/2035) ⁽⁹⁾ | |
04/25/23 | |
| 6,550,000 | | |
| 4,845,105 | | |
| 5,316,617 | | |
0.68% |
Elmwood CLO 21
Ltd. | |
Subordinated
Note (effective yield 16.26%, maturity 10/20/2036) ⁽⁹⁾ | |
10/27/23 | |
| 4,900,000 | | |
| 3,361,188 | | |
| 3,330,060 | | |
0.43% |
Generate CLO
9 Ltd. | |
Subordinated
Note (effective yield 24.60%, maturity 10/20/2034) ⁽⁹⁾ | |
04/27/22 | |
| 11,250,000 | | |
| 8,425,285 | | |
| 9,283,059 | | |
1.19% |
Greywolf CLO
IV, Ltd. | |
Subordinated
Note (effective yield 19.63%, maturity 04/17/2034) ⁽⁹⁾ | |
03/26/21 | |
| 7,520,000 | | |
| 4,145,017 | | |
| 3,427,692 | | |
0.44% |
HarbourView CLO
VII-R, Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 07/18/2031) ⁽⁹⁾ ⁽¹²⁾ | |
09/29/17 | |
| 1,100,000 | | |
| 399,175 | | |
| 110 | | |
0.00% |
Kings Park CLO,
Ltd. | |
Subordinated
Note (effective yield 26.20%, maturity 01/21/2035) ⁽⁹⁾ | |
04/27/23 | |
| 5,222,500 | | |
| 3,165,986 | | |
| 3,631,934 | | |
0.46% |
KKR CLO 36 Ltd. | |
Subordinated
Note (effective yield 19.14%, maturity 10/15/2034) ⁽⁹⁾ | |
05/03/22 | |
| 6,000,000 | | |
| 4,433,669 | | |
| 4,035,314 | | |
0.52% |
KKR CLO 37 Ltd. | |
Subordinated
Note (effective yield 23.19%, maturity 01/20/2035) ⁽⁹⁾ | |
01/25/24 | |
| 7,150,000 | | |
| 5,335,688 | | |
| 5,384,615 | | |
0.69% |
Lake Shore MM
CLO I Ltd. | |
Income Note (effective
yield 18.51%, maturity 04/15/2033) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/08/19 | |
| 14,550,000 | | |
| 9,412,480 | | |
| 6,114,574 | | |
0.78% |
LCM 38 Ltd. | |
Income Note (effective
yield 26.58%, maturity 07/15/2034) ⁽⁹⁾ | |
01/31/24 | |
| 5,228,500 | | |
| 4,824,598 | | |
| 4,791,585 | | |
0.61% |
Madison Park
Funding XXI, Ltd. | |
Subordinated
Note (effective yield 25.77%, maturity 10/15/2049) ⁽⁹⁾ | |
08/22/16 | |
| 6,462,500 | | |
| 3,565,074 | | |
| 3,183,359 | | |
0.41% |
Madison Park
Funding XXII, Ltd. | |
Subordinated
Note (effective yield 20.31%, maturity 01/15/2033) ⁽⁹⁾ | |
10/30/18 | |
| 6,327,082 | | |
| 3,638,681 | | |
| 3,400,534 | | |
0.44% |
Madison Park
Funding XXXIV, Ltd. | |
Subordinated
Note (effective yield 25.63%, maturity 04/25/2048) ⁽⁹⁾ | |
09/27/22 | |
| 8,300,000 | | |
| 4,925,979 | | |
| 4,772,503 | | |
0.61% |
Madison Park
Funding XL, Ltd. | |
Subordinated
Note (effective yield 25.67%, maturity 02/28/2047) ⁽⁹⁾ | |
06/02/16 | |
| 16,550,000 | | |
| 4,728,944 | | |
| 4,207,310 | | |
0.54% |
Madison Park
Funding XLIV, Ltd. | |
Subordinated
Note (effective yield 18.83%, maturity 01/23/2048) ⁽⁹⁾ | |
11/16/18 | |
| 8,744,821 | | |
| 4,602,442 | | |
| 4,222,104 | | |
0.54% |
Madison Park
Funding XLVII, Ltd. | |
Subordinated
Note (effective yield 21.65%, maturity 01/19/2034) ⁽⁹⁾ | |
04/29/21 | |
| 2,000,000 | | |
| 1,587,439 | | |
| 1,757,427 | | |
0.22% |
Madison Park
Funding LII, Ltd. | |
Subordinated
Note (effective yield 17.79%, maturity 01/22/2035) ⁽⁹⁾ | |
03/13/24 | |
| 6,500,000 | | |
| 4,631,250 | | |
| 4,597,898 | | |
0.59% |
Madison Park
Funding LXII, Ltd. | |
Subordinated
Note (effective yield 16.80%, maturity 07/17/2036) ⁽⁹⁾ | |
07/27/23 | |
| 5,600,000 | | |
| 4,235,000 | | |
| 3,756,121 | | |
0.48% |
Marathon CLO
VI Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 05/13/2028) ⁽⁹⁾ ⁽¹²⁾ | |
06/06/14 | |
| 6,375,000 | | |
| 191,250 | | |
| 638 | | |
0.00% |
Marathon CLO
VII Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 10/28/2025) ⁽⁹⁾ ⁽¹²⁾ | |
10/30/14 | |
| 10,526,000 | | |
| 52,630 | | |
| 1,053 | | |
0.00% |
Marathon CLO
VIII Ltd. | |
Income Note (effective
yield 0.00%, maturity 10/18/2031) ⁽⁹⁾ ⁽¹²⁾ | |
06/16/15 | |
| 16,333,000 | | |
| 7,343,630 | | |
| 979,980 | | |
0.13% |
Marathon CLO
X Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 11/15/2029) ⁽⁹⁾ ⁽¹²⁾ | |
08/09/17 | |
| 2,550,000 | | |
| 229,500 | | |
| 280,500 | | |
0.04% |
Marathon CLO
XI Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 04/20/2031) ⁽⁹⁾ ⁽¹²⁾ | |
02/06/18 | |
| 2,075,000 | | |
| 1,104,318 | | |
| 186,750 | | |
0.02% |
Marathon CLO
XII Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 04/18/2031) ⁽⁹⁾ ⁽¹²⁾ | |
09/06/18 | |
| 4,500,000 | | |
| 2,251,667 | | |
| 585,000 | | |
0.07% |
Morgan Stanley
Eaton Vance CLO 2023-19, Ltd. | |
Subordinated
Note (effective yield 15.97%, maturity 07/20/2036) ⁽⁹⁾ | |
02/21/24 | |
| 4,150,000 | | |
| 2,656,000 | | |
| 2,781,808 | | |
0.36% |
Octagon Investment
Partners XIV, Ltd. | |
Income Note (effective
yield 0.00%, maturity 07/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
06/06/14 | |
| 20,572,125 | | |
| 5,062,309 | | |
| 355,942 | | |
0.05% |
Octagon Investment
Partners 26, Ltd. | |
Income Note (effective
yield 15.86%, maturity 07/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/23/16 | |
| 13,750,000 | | |
| 3,033,284 | | |
| 1,716,678 | | |
0.22% |
Octagon Investment
Partners 27, Ltd. | |
Income Note (effective
yield 17.09%, maturity 07/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ | |
05/25/16 | |
| 11,804,048 | | |
| 2,898,707 | | |
| 1,703,383 | | |
0.22% |
Octagon Investment
Partners 29, Ltd. | |
Subordinated
Note (effective yield 9.06%, maturity 01/24/2033) ⁽⁹⁾ | |
05/05/21 | |
| 9,875,000 | | |
| 5,774,396 | | |
| 3,758,544 | | |
0.48% |
Octagon Investment
Partners 37, Ltd. | |
Subordinated
Note (effective yield 5.92%, maturity 07/25/2030) ⁽⁹⁾ | |
05/25/21 | |
| 1,550,000 | | |
| 749,905 | | |
| 426,155 | | |
0.05% |
Octagon Investment
Partners 44, Ltd. | |
Income Note (effective
yield 13.92%, maturity 07/20/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/19/19 | |
| 13,500,000 | | |
| 8,616,340 | | |
| 6,058,392 | | |
0.78% |
Octagon Investment
Partners 45, Ltd. | |
Subordinated
Note (effective yield 23.86%, maturity 04/15/2035) ⁽⁹⁾ | |
07/27/23 | |
| 18,155,000 | | |
| 10,977,312 | | |
| 10,029,810 | | |
1.28% |
Octagon Investment
Partners 46, Ltd. | |
Income Note (effective
yield 30.90%, maturity 07/15/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/26/20 | |
| 10,650,000 | | |
| 4,730,997 | | |
| 4,606,309 | | |
0.59% |
Octagon Investment
Partners 48, Ltd. | |
Subordinated
Note (effective yield 17.92%, maturity 10/20/2034) ⁽⁹⁾ | |
03/25/22 | |
| 10,000,000 | | |
| 7,674,887 | | |
| 6,349,888 | | |
0.81% |
Octagon Investment
Partners 50, Ltd. | |
Income Note (effective
yield 25.16%, maturity 01/16/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
10/06/20 | |
| 9,250,000 | | |
| 5,058,190 | | |
| 4,723,285 | | |
0.60% |
Octagon 51, Ltd. | |
Income B Note
(effective yield 19.20%, maturity 07/20/2034) ⁽⁹⁾ | |
04/16/21 | |
| 17,300,000 | | |
| 12,363,264 | | |
| 10,772,678 | | |
1.38% |
Octagon 55, Ltd. | |
Subordinated
Note (effective yield 13.18%, maturity 07/20/2034) ⁽⁹⁾ | |
02/11/22 | |
| 8,700,000 | | |
| 6,396,754 | | |
| 4,890,096 | | |
0.63% |
Octagon 58, Ltd. | |
Income Note (effective
yield 21.42%, maturity 07/15/2037) ⁽⁹⁾ ⁽¹⁰⁾ | |
04/21/22 | |
| 14,900,000 | | |
| 10,432,396 | | |
| 9,783,915 | | |
1.25% |
OFSI BSL VIII,
Ltd. | |
Income Note (effective
yield 0.00%, maturity 08/16/2037) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
07/18/17 | |
| 7,719,320 | | |
| 3,193,321 | | |
| 550,589 | | |
0.07% |
Palmer Square
CLO 2021-4, Ltd. | |
Subordinated
Note (effective yield 21.53%, maturity 10/15/2034) ⁽⁹⁾ | |
02/12/24 | |
| 3,500,000 | | |
| 2,633,750 | | |
| 2,734,473 | | |
0.35% |
Regatta VII Funding
Ltd. | |
Subordinated
Note (effective yield 6.47%, maturity 12/20/2028) ⁽⁹⁾ | |
10/01/21 | |
| 6,450,000 | | |
| 2,596,052 | | |
| 1,672,089 | | |
0.21% |
Regatta VII Funding
Ltd. | |
Class R1A Note
(effective yield 51.99%, maturity 06/20/2034) ⁽⁹⁾ | |
10/01/21 | |
| 10,126,500 | | |
| 18,201 | | |
| 20,724 | | |
0.00% |
Regatta VII Funding
Ltd. | |
Class R2 Note
(effective yield 100.90%, maturity 06/20/2034) ⁽⁹⁾ | |
10/01/21 | |
| 10,126,500 | | |
| 110,484 | | |
| 186,249 | | |
0.02% |
Regatta XX Funding
Ltd. | |
Income Note (effective
yield 17.98%, maturity 10/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ | |
08/04/21 | |
| 11,000,000 | | |
| 7,152,134 | | |
| 7,155,631 | | |
0.92% |
See accompanying
notes to the consolidated financial statements
Eagle Point Credit
Company Inc. & Subsidiaries
Consolidated
Schedule of Investments
As of March 31,
2024
(expressed in U.S.
dollars)
(Unaudited)
Issuer
⁽¹⁾ | |
Investment
Description | |
Acquisition
Date ⁽²⁾ | |
Principal
Amount /
Shares | | |
Cost | | |
Fair
Value ⁽³⁾ | | |
%
of Net
Assets |
CLO
Equity ⁽⁴⁾ ⁽⁸⁾ (continued) | |
| |
| |
| | | |
| | | |
| | | |
|
Structured Finance
(continued) | |
| |
| |
| | | |
| | | |
| | | |
|
United States
(continued) | |
| |
| |
| | | |
| | | |
| | | |
|
Regatta XXI Funding
Ltd. | |
Subordinated
Note (effective yield 16.85%, maturity 10/20/2034) ⁽⁹⁾ | |
06/10/22 | |
$ | 9,000,000 | | |
$ | 6,356,824 | | |
$ | 6,374,496 | | |
0.82% |
Regatta XXII
Funding Ltd. | |
Subordinated
Note (effective yield 22.17%, maturity 07/20/2035) ⁽⁹⁾ | |
06/20/23 | |
| 3,000,000 | | |
| 2,108,695 | | |
| 2,488,285 | | |
0.32% |
Regatta XXIV
Funding Ltd. | |
Subordinated
Note (effective yield 19.36%, maturity 01/20/2035) ⁽⁹⁾ | |
02/14/23 | |
| 4,300,000 | | |
| 2,726,454 | | |
| 2,957,149 | | |
0.38% |
Rockford Tower
CLO 2019-1, Ltd. | |
Subordinated
Note (effective yield 15.89%, maturity 04/20/2034) ⁽⁹⁾ | |
06/14/21 | |
| 10,300,000 | | |
| 7,175,009 | | |
| 5,236,732 | | |
0.67% |
Rockford Tower
CLO 2021-3, Ltd. | |
Subordinated
Note (effective yield 11.30%, maturity 10/20/2034) ⁽⁹⁾ | |
04/22/22 | |
| 26,264,625 | | |
| 20,137,589 | | |
| 13,233,659 | | |
1.69% |
Rockford Tower
CLO 2022-3, Ltd. | |
Subordinated
Note (effective yield 20.62%, maturity 01/20/2035) ⁽⁹⁾ | |
07/27/23 | |
| 3,600,000 | | |
| 2,560,500 | | |
| 2,989,883 | | |
0.38% |
RR 23 Ltd. | |
Subordinated
Note (effective yield 18.23%, maturity 10/15/2035) ⁽⁹⁾ | |
10/12/23 | |
| 6,800,000 | | |
| 4,072,154 | | |
| 4,275,526 | | |
0.55% |
Shackleton 2019-XIV
CLO, Ltd. | |
Subordinated
Note (effective yield 21.47%, maturity 07/20/2034) ⁽⁹⁾ | |
02/01/24 | |
| 5,525,000 | | |
| 4,294,875 | | |
| 4,217,272 | | |
0.54% |
Steele Creek
CLO 2018-1, Ltd. | |
Income Note (effective
yield 0.00%, maturity 04/15/2048) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
03/28/18 | |
| 11,370,000 | | |
| 4,396,771 | | |
| 1,645,238 | | |
0.21% |
Steele Creek
CLO 2019-1, Ltd. | |
Income Note (effective
yield 10.45%, maturity 04/15/2049) ⁽⁹⁾ ⁽¹⁰⁾ | |
03/22/19 | |
| 8,500,000 | | |
| 5,078,254 | | |
| 2,500,759 | | |
0.32% |
Unity-Peace Park
CLO, Ltd. | |
Subordinated
Note (effective yield 16.95%, maturity 04/20/2035) ⁽⁹⁾ | |
09/07/23 | |
| 34,020,000 | | |
| 26,303,049 | | |
| 25,649,514 | | |
3.28% |
Venture 41 CLO,
Limited | |
Subordinated
Note (effective yield 20.24%, maturity 01/20/2034) ⁽⁹⁾ | |
11/30/21 | |
| 3,325,000 | | |
| 2,367,730 | | |
| 1,908,553 | | |
0.24% |
Wellman Park
CLO, Ltd. | |
Subordinated
Note (effective yield 21.70%, maturity 07/15/2034) ⁽⁹⁾ | |
09/20/23 | |
| 10,275,000 | | |
| 6,848,203 | | |
| 7,112,162 | | |
0.91% |
Wellman Park
CLO, Ltd. | |
Class M-1 Notes
(effective yield 19.30%, maturity 07/15/2034) ⁽⁹⁾ | |
09/20/23 | |
| 10,275,000 | | |
| 92,463 | | |
| 66,073 | | |
0.01% |
Wellman Park
CLO, Ltd. | |
Class M-2 Notes
(effective yield 15.36%, maturity 07/15/2034) ⁽⁹⁾ | |
09/20/23 | |
| 10,275,000 | | |
| 231,147 | | |
| 155,266 | | |
0.02% |
Whetstone Park
CLO, Ltd. | |
Subordinated
Note (effective yield 17.81%, maturity 01/20/2035) ⁽⁹⁾ | |
05/03/22 | |
| 10,560,000 | | |
| 8,214,841 | | |
| 8,076,282 | | |
1.03% |
Wind River 2013-2
CLO Ltd. | |
Income Note (effective
yield 0.00%, maturity 10/18/2030) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
06/06/14 | |
| 11,597,500 | | |
| 3,526,113 | | |
| 852,865 | | |
0.11% |
Wind River 2014-1
CLO Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 07/18/2031) ⁽⁹⁾ ⁽¹²⁾ | |
05/05/16 | |
| 9,681,764 | | |
| 2,167,725 | | |
| 290,453 | | |
0.04% |
Wind River 2014-3
CLO Ltd. | |
Subordinated
Note (effective yield 0.00%, maturity 10/22/2031) ⁽⁹⁾ ⁽¹²⁾ | |
12/17/14 | |
| 11,000,000 | | |
| 3,292,029 | | |
| 1,210,000 | | |
0.15% |
Wind River 2017-1
CLO Ltd. | |
Income Note (effective
yield 13.63%, maturity 04/18/2036) ⁽⁹⁾ ⁽¹⁰⁾ | |
02/02/17 | |
| 17,700,000 | | |
| 9,997,869 | | |
| 6,545,324 | | |
0.84% |
Wind River 2017-3
CLO Ltd. | |
Income Note (effective
yield 11.96%, maturity 04/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
08/09/17 | |
| 23,940,000 | | |
| 14,179,442 | | |
| 8,909,369 | | |
1.14% |
Wind River 2018-1
CLO Ltd. | |
Income Note (effective
yield 7.98%, maturity 07/15/2030) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/22/18 | |
| 15,750,000 | | |
| 8,416,891 | | |
| 5,090,405 | | |
0.65% |
Wind River 2019-2
CLO Ltd. | |
Income Note (effective
yield 25.03%, maturity 01/15/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
09/20/19 | |
| 13,470,000 | | |
| 8,286,417 | | |
| 7,113,584 | | |
0.91% |
Wind River 2022-2
CLO Ltd. | |
Income Note (effective
yield 23.54%, maturity 07/20/2035) ⁽⁹⁾ ⁽¹⁰⁾ | |
06/03/22 | |
| 8,950,000 | | |
| 6,227,895 | | |
| 5,106,484 | | |
0.65% |
Zais CLO 3, Limited | |
Income Note (effective
yield 0.00%, maturity 07/15/2031) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
04/08/15 | |
| 16,871,644 | | |
| 5,385,777 | | |
| 1,319,526 | | |
0.17% |
Zais CLO 5, Limited | |
Subordinated
Note (effective yield 0.00%, maturity 10/15/2028) ⁽⁹⁾ ⁽¹²⁾ | |
09/23/16 | |
| 5,950,000 | | |
| 595 | | |
| 595 | | |
0.00% |
Zais CLO 6, Limited | |
Subordinated
Note (effective yield 0.00%, maturity 07/15/2029) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹²⁾ | |
05/03/17 | |
| 11,600,000 | | |
| - | | |
| 24,763 | | |
0.00% |
Zais CLO 7, Limited | |
Income Note (effective
yield 0.00%, maturity 04/15/2030) ⁽⁹⁾ ⁽¹²⁾ | |
09/11/17 | |
| 12,777,500 | | |
| 1,278 | | |
| 1,278 | | |
0.00% |
Zais CLO 9, Limited | |
Subordinated
Note (effective yield 0.00%, maturity 07/20/2031) ⁽⁹⁾ ⁽¹²⁾ | |
10/29/18 | |
| 3,015,000 | | |
| 1,635,162 | | |
| 301,500 | | |
0.04% |
Total United
States | |
| |
| |
| | | |
| 864,416,166 | | |
| 722,887,241 | | |
92.49% |
European Union
- Various | |
| |
| |
| | | |
| | | |
| | | |
|
Dryden 88 Euro
CLO 2020 DAC | |
Subordinated
Note (effective yield 15.53%, maturity 07/20/2034) ⁽⁹⁾ ⁽¹³⁾ | |
04/23/21 | |
| 600,000 | | |
| 542,916 | | |
| 368,264 | | |
0.05% |
BBAM European
CLO II DAC | |
Subordinated
Note (effective yield 29.11%, maturity 10/15/2034) ⁽⁹⁾ ⁽¹⁰⁾ ⁽¹³⁾ | |
11/05/21 | |
| 1,000,000 | | |
| 1,135,010 | | |
| 1,115,341 | | |
0.14% |
OCP Euro CLO
2019-3 DAC | |
Subordinated
Note (effective yield 23.56%, maturity 04/20/2033) ⁽⁹⁾ ⁽¹³⁾ | |
05/26/21 | |
| 1,500,000 | | |
| 1,253,678 | | |
| 1,167,545 | | |
0.15% |
Total European
Union - Various | |
| |
| |
| | | |
| 2,931,604 | | |
| 2,651,150 | | |
0.34% |
Total
CLO Equity | |
| |
| |
| | | |
| 867,347,770 | | |
| 725,538,391 | | |
92.83% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Loan Accumulation
Facilities ⁽⁴⁾ ⁽¹⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Structured Finance | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Steamboat XLII
Ltd. | |
Loan Accumulation
Facility ⁽⁹⁾ | |
09/06/22 | |
| 4,937,500 | | |
| 4,937,500 | | |
| 4,958,258 | | |
0.63% |
Steamboat XLIV
Ltd. | |
Loan Accumulation
Facility ⁽⁹⁾ | |
03/21/23 | |
| 8,960,000 | | |
| 8,960,000 | | |
| 8,982,153 | | |
1.15% |
Steamboat XLVI
Ltd. | |
Loan Accumulation
Facility ⁽⁹⁾ | |
03/22/24 | |
| 5,700,000 | | |
| 5,700,000 | | |
| 5,700,249 | | |
0.73% |
Total Loan
Accumulation Facilities | |
| |
| |
| | | |
| 19,597,500 | | |
| 19,640,660 | | |
2.51% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Asset Backed
Securities ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Structured Finance | |
| |
| |
| | | |
| | | |
| | | |
|
France | |
| |
| |
| | | |
| | | |
| | | |
|
FCT Alma 2022 | |
Mezzanine Notes,
12.00% (due 08/04/2025) ⁽⁹⁾ ⁽¹³⁾ ⁽¹⁵⁾ | |
08/02/23 | |
| 14,700,000 | | |
| 15,959,727 | | |
| 15,967,157 | | |
2.04% |
Ireland | |
| |
| |
| | | |
| | | |
| | | |
|
Cork Harmony
Consumer Loans DAC | |
Mezzanine Loan,
14.35% (1M EURIBOR + 10.50%, due 07/14/2026) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ ⁽¹⁶⁾ | |
07/13/23 | |
| 2,571,429 | | |
| 2,777,018 | | |
| 2,775,226 | | |
0.36% |
Total Asset
Backed Securities | |
| |
| |
| | | |
| 18,736,745 | | |
| 18,742,383 | | |
2.40% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Bank Debt
Term Loan ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Consumer Products | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
JP Intermediate
B LLC | |
Term B 1L Senior
Secured Loan, 11.07% (3M LIBOR + 5.50%, due 08/21/2027) ⁽⁶⁾ | |
03/02/21 | |
| 502,328 | | |
| 491,256 | | |
| 62,791 | | |
0.01% |
| |
| |
| |
| | | |
| | | |
| | | |
|
CFO Debt
⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Structured Finance | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Glendower Capital
Secondaries CFO, LLC | |
Class B Loan,
Delayed Draw, 11.50% (due 07/12/2038) ⁽⁹⁾ ⁽¹⁵⁾ ⁽¹⁶⁾ | |
07/13/23 | |
| 1,151,660 | | |
| 1,130,548 | | |
| 1,166,170 | | |
0.15% |
Glendower Capital
Secondaries CFO, LLC | |
Class C Loan,
Delayed Draw, 14.50% (due 07/12/2038) ⁽⁹⁾ ⁽¹⁵⁾ ⁽¹⁶⁾ | |
07/13/23 | |
| 527,343 | | |
| 517,677 | | |
| 534,621 | | |
0.07% |
Total CFO
Debt | |
| |
| |
| | | |
| 1,648,225 | | |
| 1,700,791 | | |
0.22% |
| |
| |
| |
| | | |
| | | |
| | | |
|
CFO Equity
⁽⁴⁾ ⁽⁸⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Structured Finance | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Glendower Capital
Secondaries CFO, LLC | |
Subordinated
Loan, Delayed Draw (effective yield 44.85%, maturity 07/12/2038) ⁽⁹⁾ ⁽¹⁶⁾ | |
07/13/23 | |
| 1,202,150 | | |
| 1,202,150 | | |
| 1,373,329 | | |
0.18% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Common Stock | |
| |
| |
| | | |
| | | |
| | | |
|
Financial Services | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Delta Financial
Holdings LLC | |
Common Units
⁽⁴⁾ ⁽⁹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ | |
07/19/23 | |
| 1 | | |
| 1,147 | | |
| 574 | | |
0.00% |
Delta Leasing
SPV III, LLC | |
Common Equity
⁽⁴⁾ ⁽⁹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ | |
07/19/23 | |
| 18 | | |
| 18 | | |
| 9 | | |
0.00% |
Lender MCS Holdings,
Inc. | |
Common Stock
⁽⁴⁾ ⁽¹⁹⁾ | |
08/12/22 | |
| 589 | | |
| - | | |
| 1,767 | | |
0.00% |
Senior Credit
Corp 2022 LLC | |
Common Stock
⁽⁴⁾ ⁽¹⁶⁾ ⁽²⁰⁾ | |
01/30/23 | |
| 2,151,309 | | |
| 2,151,309 | | |
| 2,365,162 | | |
0.30% |
XAI Octagon Floating
Rate Alternative Income Trust | |
Common Equity | |
02/01/24 | |
| 383,107 | | |
| 2,700,330 | | |
| 2,716,229 | | |
0.35% |
Total Financial
Services | |
| |
| |
| | | |
| 4,852,804 | | |
| 5,083,741 | | |
0.65% |
Leisure | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
All Day Holdings
LLC | |
Common Stock
⁽⁴⁾ ⁽¹⁹⁾ | |
08/19/22 | |
| 560 | | |
| - | | |
| 8 | | |
0.00% |
Oil & Gas | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
McDermott International
Ltd | |
Common Stock
⁽⁴⁾ ⁽¹⁹⁾ | |
12/31/20 | |
| 243,875 | | |
| 126,820 | | |
| 36,581 | | |
0.00% |
Total Common
Stock | |
| |
| |
| | | |
| 4,979,624 | | |
| 5,120,330 | | |
0.65% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Corporate
Bonds ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Financial Services | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Delta Leasing
SPV III, LLC | |
Notes, Delayed
Draw, 13.00% (due 07/18/2030) ⁽⁷⁾ ⁽⁹⁾ ⁽¹⁵⁾ ⁽¹⁶⁾
⁽²⁰⁾ | |
07/19/23 | |
| 4,705,847 | | |
| 4,705,847 | | |
| 4,705,847 | | |
0.60% |
Senior Credit
Corp 2022 LLC | |
Senior Unsecured,
8.50% (due 12/05/2028) ⁽¹⁵⁾ ⁽¹⁶⁾ ⁽²⁰⁾ | |
01/30/23 | |
| 5,019,722 | | |
| 5,019,722 | | |
| 5,019,722 | | |
0.64% |
Total Corporate
Bonds | |
| |
| |
| | | |
| 9,725,569 | | |
| 9,725,569 | | |
1.24% |
See accompanying
notes to the consolidated financial statements
Eagle Point Credit
Company Inc. & Subsidiaries
Consolidated
Schedule of Investments
As of March 31,
2024
(expressed in U.S.
dollars)
(Unaudited)
Issuer
⁽¹⁾ | |
Investment
Description | |
Acquisition
Date ⁽²⁾ | |
Principal
Amount /
Shares | | |
Cost | | |
Fair
Value ⁽³⁾ | | |
%
of Net
Assets |
Preferred
Stock ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Financial Services | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Delta Financial
Holdings LLC | |
Preferred Units
⁽⁹⁾ ⁽¹⁹⁾ ⁽²⁰⁾ | |
07/19/23 | |
$ | 252 | | |
$ | 251,801 | | |
$ | 251,882 | | |
0.03% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Regulatory
Capital Relief Securities ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Banking | |
| |
| |
| | | |
| | | |
| | | |
|
Canada | |
| |
| |
| | | |
| | | |
| | | |
|
Boreal Series
2022-2 | |
Guarantee Linked
Note - Class F, 18.36% (3M CDOR + 13.00%, due 02/20/2028) ⁽⁶⁾ ⁽⁹⁾ ⁽¹⁷⁾ | |
11/30/22 | |
| 4,550,000 | | |
| 3,382,020 | | |
| 3,463,802 | | |
0.44% |
France | |
| |
| |
| | | |
| | | |
| | | |
|
AASFL 2022-1 | |
Credit Linked
Note - Class B, 16.36% (1M EURIBOR + 12.50%, due 12/27/2030) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ | |
11/22/22 | |
| 2,760,318 | | |
| 2,842,989 | | |
| 2,979,143 | | |
0.38% |
BNP Paribas | |
Marianne Credit
Linked Note, 13.44% (3M EURIBOR + 9.50%, due 10/12/2032) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ | |
09/22/23 | |
| 1,154,658 | | |
| 1,229,306 | | |
| 1,246,214 | | |
0.16% |
FCT Junon 2023-1 | |
Class A Notes,
13.67% (3M EURIBOR + 9.75%, due 11/08/2033) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ | |
09/26/23 | |
| 4,800,000 | | |
| 5,074,320 | | |
| 5,180,511 | | |
0.66% |
PXL 2022-1 | |
Junior Credit
Linked Note, 16.81% (3M EURIBOR + 12.875%, due 12/29/2029) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ | |
12/16/22 | |
| 3,800,000 | | |
| 4,025,340 | | |
| 4,098,297 | | |
0.52% |
Total France | |
| |
| |
| | | |
| 13,171,955 | | |
| 13,504,165 | | |
1.72% |
United States | |
| |
| |
| | | |
| | | |
| | | |
|
CRAFT 2022-1A | |
Credit Linked
Note, 17.32% (CD SOFR + 12.00%, due 04/21/2032) ⁽⁶⁾ ⁽⁹⁾ | |
10/26/22 | |
| 4,300,000 | | |
| 4,300,000 | | |
| 4,666,196 | | |
0.60% |
LOFT 2022-1A | |
Note - Class
C, 24.36% (CD SOFR + 19.00%, due 02/28/2032) ⁽⁶⁾ ⁽⁹⁾ | |
08/22/22 | |
| 1,700,000 | | |
| 1,700,000 | | |
| 1,751,663 | | |
0.22% |
Muskoka Series
2022-1 | |
Guarantee Linked
Note - Class F, 15.61% (CD SOFR + 10.25%, due 11/10/2027) ⁽⁶⁾ ⁽⁹⁾ | |
10/12/22 | |
| 3,800,000 | | |
| 3,800,000 | | |
| 3,927,206 | | |
0.50% |
Standard Chartered
7 | |
Note - Class
B, 16.36% (CD SOFR + 11.00%, due 04/25/2031) ⁽⁶⁾ ⁽⁹⁾ | |
10/07/22 | |
| 6,100,000 | | |
| 6,100,000 | | |
| 6,296,336 | | |
0.81% |
TRAFIN 2023-1 | |
Notes, 15.35%
(CD SOFR + 10.00%, due 06/01/2029) ⁽⁶⁾ ⁽⁹⁾ | |
11/27/23 | |
| 2,375,000 | | |
| 2,375,000 | | |
| 2,395,226 | | |
0.31% |
Total United
States | |
| |
| |
| | | |
| 18,275,000 | | |
| 19,036,627 | | |
2.44% |
Spain | |
| |
| |
| | | |
| | | |
| | | |
|
Autonoria Spain
2022 FT | |
Note - Class
G, 15.85% (1M EURIBOR + 12.00%, due 01/31/2040) ⁽⁶⁾ ⁽⁹⁾ ⁽¹³⁾ | |
09/14/22 | |
| 2,004,409 | | |
| 2,000,100 | | |
| 2,197,779 | | |
0.28% |
Total Regulatory
Capital Relief Securities | |
| |
| |
| | | |
| 36,829,075 | | |
| 38,202,373 | | |
4.88% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Warrants ⁽⁴⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
Oil & Gas | |
| |
| |
| | | |
| | | |
| | | |
|
United States | |
| |
| |
| | | |
| | | |
| | | |
|
Greenfire
Resources Ltd | |
Warrant ⁽¹⁹⁾ | |
09/27/23 | |
| 2,008 | | |
| - | | |
| - | | |
0.00% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Total investments at fair
value as of March 31, 2024 | |
| |
| |
| | | |
$ | 1,128,892,867 | | |
$ | 992,861,992 | | |
127.01% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Liabilities
at fair value ⁽²¹⁾ | |
| |
| |
| | | |
| | | |
| | | |
|
6.6875% Unsecured
Notes due 2028 | |
Unsecured Note | |
| |
$ | (32,423,800 | ) | |
$ | (32,423,800 | ) | |
$ | (31,645,629 | ) | |
-4.05% |
5.375% Unsecured
Notes due 2029 | |
Unsecured Note | |
| |
| (93,250,000 | ) | |
| (93,250,000 | ) | |
| (84,186,100 | ) | |
-10.77% |
6.75% Unsecured
Notes due 2031 | |
Unsecured Note | |
| |
| (44,850,000 | ) | |
| (44,850,000 | ) | |
| (42,893,284 | ) | |
-5.49% |
6.50% Series
C Term Preferred Stock due 2031 | |
Preferred Stock | |
| |
| (54,313,825 | ) | |
| (54,337,922 | ) | |
| (47,600,636 | ) | |
-6.09% |
8.00% Series
F Term Preferred Stock due 2029 | |
| |
| |
| (51,419,300 | ) | |
| (51,420,713 | ) | |
| (51,337,029 | ) | |
-6.57% |
Total liabilities at fair
value as of March 31, 2024 | |
| |
| |
| | | |
$ | (276,282,435 | ) | |
$ | (257,662,678 | ) | |
-32.97% |
| |
| |
| |
| | | |
| | | |
| | | |
|
Net assets
above (below) investments at fair value and liabilities at fair value | |
| |
| |
| | | |
| | | |
| 46,276,156 | | |
|
| |
| |
| |
| | | |
| | | |
| | | |
|
Net
assets as of March 31, 2024 | |
| |
| |
| | | |
| | | |
$ | 781,475,470 | | |
|
(1) |
|
Unless otherwise noted, the Company is not affiliated with, nor does it "control" (as such term is defined in the Investment Company Act of 1940 (the "1940 Act")), any of the issuers listed. In general, under the 1940 Act, the Company would be presumed to "control" an issuer if it owned 25% or more of its voting securities. |
(2) |
|
Acquisition date represents the initial date of purchase or the date the investment was contributed to the Company at the time of the Company's formation. |
(3) |
|
Fair value is determined by the Adviser in accordance with written valuation policies and procedures, subject to oversight by the Company’s Board of Directors, in accordance with Rule 2a-5 under the 1940 Act. |
(4) |
|
Securities exempt from registration under the Securities Act of 1933, and are deemed to be “restricted securities”. As of March 31, 2024, the aggregate fair value of these securities is $990.1 million, or 126.66% of the Company's net assets. |
(5) |
|
Country represents the principal country of risk where the investment has exposure. |
(6) |
|
Variable rate investment. Interest rate shown reflects the rate in effect at the reporting date. Investment description includes the reference rate and spread. |
(7) |
|
As of March 31, 2024, the investment includes interest income capitalized as additional investment principal, referred to as "PIK" interest. The PIK interest rate represents the interest rate at payment date when PIK interest is received. See Note 2 "Summary of Significant Accounting Policies" for further discussion. |
(8) |
|
CLO equity and CFO equity are entitled to recurring distributions which are generally equal to the remaining cash flow of payments made by underlying assets less contractual payments to debt holders and fund expenses. The effective yield is estimated based on the current projection of the amount and timing of these recurring distributions in addition to the estimated amount of terminal principal payment. The effective yield and investment cost may ultimately not be realized. As of March 31, 2024, the Company's weighted average effective yield on its aggregate CLO equity positions, based on current amortized cost, was 16.40%. When excluding called CLOs, the Company's weighted average effective yield on its CLO equity positions was 16.43%. |
(9) |
|
Classified as Level III investment. See Note 3 "Investments" for further discussion. |
(10) |
|
Fair value includes the Company's interest in fee rebates on CLO subordinated and income notes. |
(11) |
|
As of March 31, 2024, the investment has been called. Expected value of residual distributions, once received, is anticipated to be recognized as return of capital, pending any remaining amortized cost, and/or realized gain for any amounts received in excess of such amortized cost. |
(12) |
|
As of March 31, 2024, the effective yield has been estimated to be 0%. The aggregate projected amount of future recurring distributions and terminal principal payment is less than the amortized investment cost. Future recurring distributions, once received, will be recognized solely as return of capital until the aggregate projected amount of future recurring distributions and terminal principal payment exceeds the amortized investment cost. |
(13) |
|
Investment principal amount is denominated in EUR. |
(14) |
|
Loan accumulation facilities are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. |
(15) |
|
Fixed rate investment. |
(16) |
|
This investment has an unfunded commitment as of March 31, 2024. See Note 10 "Commitments and Contingencies" for further discussion. |
(17) |
|
Investment principal amount is denominated in CAD. |
(18) |
|
Fair value includes the Company's interest in fee rebates on CLO income notes along with the Company’s share of income from a revenue sharing agreement. |
(19) |
|
The following investment is not an income producing security. |
(20) |
|
The following is an affiliated investment as defined under the 1940 act, which represents investments in which the Company owns 5% or more of the outstanding voting securities under common ownership or control. See Note 4 "Related Party Transactions" for further discussion. |
(21) |
|
The Company has accounted for its 6.6875% Notes due 2028, 5.375% Notes due 2029, 6.75% Notes due 2031, 6.50% Series C Term Preferred Stock due 2031 and 8.00% Series F Term Preferred Stock due 2029 utilizing the fair value option election under ASC Topic 825. Accordingly, the aforementioned notes and preferred stock are carried at their fair value. See Note 2 "Summary of Significant Accounting Policies" for further discussion. |
|
Reference Key: |
CAD |
Canadian Dollar |
CD |
Compounded Daily |
CDOR |
Canadian Dollar Offered Rate |
EUR |
Euro |
EURIBOR |
Euro London Interbank Offered Rate |
LIBOR |
London Interbank Offered Rate |
SOFR |
Secured Overnight Financing Rate |
See accompanying
notes to the consolidated financial statements
Eagle Point Credit
Company Inc. & Subsidiaries
Consolidated
Schedule of Investments
As of March 31,
2024
(expressed in U.S.
dollars)
(Unaudited)
Forward Currency Contracts, at Fair Value (1)
Currency
Purchased | |
Currency
Sold | |
Counterparty | |
Acquisition
Date | |
Settlement
Date | |
Fair
Value | |
| |
| |
| |
| |
| |
| |
Unrealized appreciation on forward currency contracts | |
| |
| | |
USD | |
4,120,403 | | |
EUR | |
3,800,000 | | |
Barclays
Bank PLC | |
3/27/2024 | |
4/30/2024 | |
$ | 29,779 | |
USD | |
3,363,984 | | |
CAD | |
4,536,000 | | |
Barclays Bank
PLC | |
2/23/2024 | |
4/30/2024 | |
| 11,783 | |
USD | |
5,189,780 | | |
EUR | |
4,800,000 | | |
Barclays Bank
PLC | |
2/12/2024 | |
4/30/2024 | |
| 37,615 | |
USD | |
3,379,193 | | |
EUR | |
3,100,000 | | |
Barclays Bank
PLC | |
1/26/2024 | |
4/30/2024 | |
| 24,293 | |
USD | |
13,442,581 | | |
EUR | |
12,300,000 | | |
Barclays Bank
PLC | |
1/22/2024 | |
4/30/2024 | |
| 96,390 | |
USD | |
1,321,426 | | |
EUR | |
1,200,000 | | |
Barclays Bank
PLC | |
1/10/2024 | |
4/12/2024 | |
| 25,158 | |
USD | |
16,119,445 | | |
EUR | |
14,700,000 | | |
Barclays
Bank PLC | |
1/9/2024 | |
4/11/2024 | |
| 240,799 | |
| |
| | |
| |
| | |
| |
| |
| |
$ | 465,817 | |
| |
| | |
| |
| | |
| |
| |
| |
| | |
Unrealized depreciation on forward currency contracts |
| |
| |
| | |
EUR | |
5,213,096 | | |
USD | |
5,668,679 | | |
Barclays Bank
PLC | |
2/23/2024 | |
4/30/2024 | |
$ | (33,348 | ) |
(1) See Note 4 "Derivative Contracts" for further discussion relating to forward currency contracts held by the Company.
See accompanying notes to the
consolidated financial statements
Eagle Point Credit Company Inc. & Subsidiaries
Consolidated Statement of Operations
For the three months ended March 31, 2024
(expressed in U.S. dollars)
(Unaudited)
INVESTMENT INCOME | |
| | |
Interest income (1) | |
$ | 38,879,537 | |
Other income | |
| 1,709,696 | |
Dividend income (1) | |
| 221,244 | |
Total Investment Income | |
| 40,810,477 | |
| |
| | |
EXPENSES | |
| | |
Incentive fee | |
| 5,721,100 | |
Interest expense | |
| 4,179,589 | |
Management fee | |
| 3,804,325 | |
Commission expense | |
| 1,579,666 | |
Professional fees | |
| 852,480 | |
Tax expense | |
| 375,000 | |
Administration fees | |
| 359,976 | |
Directors' fees | |
| 99,375 | |
Other expenses | |
| 393,716 | |
Total Expenses | |
| 17,365,227 | |
| |
| | |
NET INVESTMENT INCOME | |
| 23,445,250 | |
| |
| | |
6.75% Series D Preferred Stock distributions (Note 2) | |
| 560,849 | |
| |
| | |
NET INVESTMENT INCOME LESS DISTRIBUTIONS ON 6.75% SERIES D PREFERED STOCK | |
| 22,884,401 | |
| |
| | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | |
| | |
Net realized gain (loss) on: | |
| | |
Investments, foreign currency and cash equivalents | |
| 1,701,347 | |
Forward currency contracts | |
| (574,832 | ) |
Net unrealized appreciation (depreciation) on: | |
| | |
Investments, foreign currency and cash equivalents (1) | |
| 5,988,238 | |
Forward currency contracts | |
| 1,806,365 | |
Net change in unrealized (appreciation) depreciation on liabilities at fair value under the fair value option | |
| 2,908,052 | |
NET REALIZED AND UNREALIZED GAIN (LOSS) | |
| 11,829,170 | |
| |
| | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | |
$ | 34,713,571 | |
(1) Interest income, dividend income and net unrealized appreciation (depreciation) on investments, foreign currency and cash equivalents include balances attributed to affiliated investments of $234,464, $78,059 and ($891), respectively. See Note 5 "Related Party Transactions" for further discussion.
See accompanying
notes to the consolidated financial statements
Eagle Point Credit Company Inc. & Subsidiaries
Consolidated Statement of Comprehensive Income
For the three months ended March 31, 2024
(expressed in U.S. dollars)
(Unaudited)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | |
$ | 34,713,571 | |
| |
| | |
OTHER COMPREHENSIVE INCOME (LOSS) (1) | |
| | |
Change in unrealized (appreciation) depreciation on liabilities at fair value under the fair value option | |
| (4,554,080 | ) |
| |
| | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS AND COMPREHENSIVE INCOME | |
$ | 30,159,491 | |
| (1) | See Note 2 "Summary
of Significant Accounting Policies- Other Financial Assets and Financial Liabilities at Fair Value" for further discussion
relating to other comprehensive income. |
See accompanying
notes to the consolidated financial statements
Eagle Point Credit Company Inc. & Subsidiaries
Consolidated Statements of
Operations
(expressed in U.S. dollars)
(Unaudited)
| |
For the | | |
For the | |
| |
three months ended | | |
three months ended | |
| |
March 31, 2024 | | |
March 31, 2023 | |
INVESTMENT INCOME | |
| | | |
| | |
Interest income (1) | |
$ | 38,879,537 | | |
$ | 30,044,023 | |
Other income | |
| 1,709,696 | | |
| 1,874,397 | |
Dividend income (1) | |
| 221,244 | | |
| - | |
Total Investment Income | |
| 40,810,477 | | |
| 31,918,420 | |
| |
| | | |
| | |
EXPENSES | |
| | | |
| | |
Incentive fee | |
| 5,721,100 | | |
| 4,835,049 | |
Interest expense | |
| 4,179,589 | | |
| 3,408,413 | |
Management fee | |
| 3,804,325 | | |
| 2,649,670 | |
Commission expense | |
| 1,579,666 | | |
| - | |
Professional fees | |
| 852,480 | | |
| 489,504 | |
Tax expense | |
| 375,000 | | |
| 38,420 | |
Administration fees | |
| 359,976 | | |
| 329,564 | |
Directors' fees | |
| 99,375 | | |
| 99,375 | |
Other expenses | |
| 393,716 | | |
| 267,343 | |
Total Expenses | |
| 17,365,227 | | |
| 12,117,338 | |
| |
| | | |
| | |
NET INVESTMENT INCOME | |
| 23,445,250 | | |
| 19,801,082 | |
| |
| | | |
| | |
6.75% Series D Preferred Stock distributions (Note 2) | |
| 560,849 | | |
| 460,888 | |
| |
| | | |
| | |
NET INVESTMENT INCOME LESS DISTRIBUTIONS ON 6.75% SERIES D PREFERED STOCK | |
| 22,884,401 | | |
| 19,340,194 | |
| |
| | | |
| | |
REALIZED AND UNREALIZED GAIN (LOSS) | |
| | | |
| | |
Net realized gain (loss) on: | |
| | | |
| | |
Investments, foreign currency and cash equivalents | |
| 1,701,347 | | |
| (1,075,024 | ) |
Forward currency contracts | |
| (574,832 | ) | |
| - | |
Net unrealized appreciation (depreciation) on: | |
| | | |
| | |
Investments, foreign currency and cash equivalents (1) | |
| 5,988,238 | | |
| 7,004,712 | |
Forward currency contracts | |
| 1,806,365 | | |
| - | |
Net change in unrealized (appreciation) depreciation on liabilities at fair value under the fair value option | |
| 2,908,052 | | |
| (5,208,730 | ) |
NET REALIZED AND UNREALIZED GAIN (LOSS) | |
| 11,829,170 | | |
| 720,958 | |
| |
| | | |
| | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | |
$ | 34,713,571 | | |
$ | 20,061,152 | |
Note: The above Consolidated Statements of Operations represents the three months ended March 31, 2024, and the three months ended March 31, 2023 and has been provided as supplemental information to the consolidated financial statements.
See accompanying
notes to the consolidated financial statements
Eagle Point Credit Company Inc. & Subsidiaries
Consolidated Statements of
Changes in Net Assets
(expressed in U.S. dollars, except share amounts)
(Unaudited)
| |
For the | | |
For the | |
| |
three months ended | | |
year ended | |
| |
March 31, 2024 | | |
December 31, 2023 | |
Net increase (decrease) in net assets resulting from operations: | |
| | | |
| | |
Net investment income | |
$ | 23,445,250 | | |
$ | 88,134,018 | |
6.75% Series D Preferred Stock distributions (Note 2) | |
| (560,849 | ) | |
| (1,863,486 | ) |
Net realized gain (loss) on: | |
| | | |
| | |
Investments, foreign currency and cash equivalents | |
| 1,701,347 | | |
| (16,255,570 | ) |
Forward currency contracts | |
| (574,832 | ) | |
| (162,560 | ) |
Net unrealized appreciation (depreciation) on: | |
| | | |
| | |
Investments, foreign currency and cash equivalents | |
| 5,988,238 | | |
| 51,957,990 | |
Forward currency contracts | |
| 1,806,365 | | |
| (1,373,895 | ) |
Net unrealized (appreciation) depreciation on liabilities at fair value under the fair value option | |
| 2,908,052 | | |
| (3,548,112 | ) |
Total net increase (decrease) in net assets resulting from operations | |
| 34,713,571 | | |
| 116,888,385 | |
| |
| | | |
| | |
Other comprehensive income (loss): | |
| | | |
| | |
Net change in unrealized (appreciation) depreciation on liabilities at fair value under the fair value option | |
| (4,554,080 | ) | |
| (5,861,663 | ) |
| |
| | | |
| | |
Common stock distributions: | |
| | | |
| | |
Total earnings distributed | |
| (38,771,229 | ) | |
| (120,694,640 | ) |
Common stock distributions from tax return of capital | |
| - | | |
| - | |
Total common stock distributions | |
| (38,771,229 | ) | |
| (120,694,640 | ) |
| |
| | | |
| | |
Capital share transactions: | |
| | | |
| | |
Proceeds from the issuance of shares of common stock pursuant to the Company's "at the market" program, net of commissions and offering expenses | |
| 77,636,163 | | |
| 201,608,459 | |
Proceeds from the issuance of shares of common stock pursuant to the Company's dividend reinvestment plan | |
| 4,107,478 | | |
| 17,137,262 | |
Total capital share transactions | |
| 81,743,641 | | |
| 218,745,721 | |
| |
| | | |
| | |
Total increase (decrease) in net assets | |
| 73,131,903 | | |
| 209,077,803 | |
Net assets at beginning of period | |
| 708,343,567 | | |
| 499,265,764 | |
Net assets at end of period | |
$ | 781,475,470 | | |
$ | 708,343,567 | |
| |
| | | |
| | |
Capital share activity: | |
| | | |
| | |
Shares of common stock sold pursuant to the Company's "at the market" program | |
| 7,925,027 | | |
| 20,155,643 | |
Shares of common stock issued pursuant to the Company's dividend reinvestment plan | |
| 428,727 | | |
| 1,746,514 | |
Total increase (decrease) in capital share activity | |
| 8,353,754 | | |
| 21,902,157 | |
See accompanying
notes to the consolidated financial statements
Eagle Point Credit Company Inc. & Subsidiaries
Consolidated Statement of Cash
Flows
For the three months ended March 31, 2024
(expressed in U.S. dollars)
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES | |
| | |
Net increase (decrease) in net assets resulting from operations | |
$ | 34,713,571 | |
| |
| | |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | |
| | |
Purchases of investments | |
| (172,186,379 | ) |
Proceeds from sales of investments and repayments of principal (1) | |
| 67,561,531 | |
Payment-in-kind interest | |
| (20,034 | ) |
Net realized gain (loss) on: | |
| | |
Investments, foreign currency and cash equivalents | |
| (1,701,347 | ) |
Forward currency contracts | |
| 574,832 | |
Net unrealized appreciation (depreciation) on: | |
| | |
Investments, foreign currency and cash equivalents | |
| (5,988,238 | ) |
Forward currency contracts | |
| (1,806,365 | ) |
Net change in unrealized appreciation (depreciation) on liabilities at fair value under the fair value option | |
| (2,908,052 | ) |
Amortization (accretion) included in interest expense | |
| (28,101 | ) |
Amortization (accretion) of premiums or discounts on debt securities | |
| (195,218 | ) |
Changes in assets and liabilities: | |
| | |
Interest receivable | |
| (510,388 | ) |
Dividend receivable | |
| (41,392 | ) |
Prepaid expenses | |
| (55,549 | ) |
Incentive fee payable | |
| (774,263 | ) |
Management fee payable | |
| 425,609 | |
Professional fees payable | |
| 314,754 | |
Administration fees payable | |
| 170,850 | |
Directors' fees payable | |
| (99,375 | ) |
Due to affiliates | |
| 196 | |
Tax expense payable | |
| 4,950 | |
Other expenses payable | |
| 34,708 | |
Net cash provided by (used in) operating activities | |
| (82,513,700 | ) |
| |
| | |
CASH FLOWS FROM FINANCING ACTIVITIES | |
| | |
Common stock distributions, net of change in common stock distribution payable | |
| (38,771,229 | ) |
Proceeds from the issuance of shares of common stock pursuant to the Company's "at the market" program, net of commissions and offering expenses | |
| 77,636,163 | |
Proceeds from the issuance of shares of common stock pursuant to the Company's dividend reinvestment plan, net of change in receivable for shares of common stock issued | |
| 3,978,771 | |
Issuance of 6.75% Series D Preferred Stock pursuant to the Company's "at the market" program | |
| 6,243,786 | |
Issuance of 8.00% Series F Term Preferred Stock due 2029 | |
| 49,000,000 | |
Issuance of 8.00% Series F Term Preferred Stock due 2029 pursuant to the Company's "at the market" program | |
| 2,419,300 | |
Share issuance premium associated with 8.00% Series F Term Preferred Stock due 2029 | |
| 1,438 | |
Net cash provided by (used in) financing activities | |
| 100,508,229 | |
| |
| | |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | |
| 17,994,529 | |
| |
| | |
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | |
| (576,601 | ) |
| |
| | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | |
| 46,445,467 | |
| |
| | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | |
$ | 63,863,395 | |
| |
| | |
Supplemental disclosures: | |
| | |
Cash paid for interest expense | |
$ | 4,207,690 | |
Cash paid for excise tax | |
$ | 350,000 | |
Cash paid for 6.75% Series D Preferred Stock distributions | |
$ | 560,849 | |
Cash paid for franchise taxes | |
$ | 20,050 | |
| (1) | Proceeds from
sales or maturity of investments includes $15,526,414 of return of capital on CLO equity investments from recurring cash flows and distributions
from called deals. |
See accompanying
notes to the consolidated financial statements
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
Eagle Point Credit
Company Inc. (the “Company”) is an externally managed, non-diversified closed-end management investment company registered
under the Investment Company Act of 1940, as amended (the “1940 Act”). 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 collateralized loan obligations (“CLOs”) that are
collateralized by a portfolio consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct
underlying borrowers across various industry sectors. The Company may also invest in other related securities and instruments or other
securities and instruments that Eagle Point Credit Management LLC (the “Adviser”) believes are consistent with the Company’s
investment objectives, including senior debt tranches of CLOs, loan accumulation facilities (“LAFs”) and securities and instruments
of corporate issuers. From time to time, in connection with the acquisition of CLO equity, the Company may receive fee rebates from the
CLO issuer. The CLO securities in which the Company primarily seeks to invest are unrated or rated below investment grade and are considered
speculative with respect to timely payment of interest and repayment of principal.
The Company was initially
formed on March 24, 2014 and commenced operations on June 6, 2014. On October 7, 2014, the Company priced its initial public offering
(the “IPO”) and on October 8, 2014, the Company’s shares began trading on the New York Stock Exchange (the “NYSE”)
under the symbol “ECC”.
The Company intends
to operate so as to qualify to be taxed as a regulated investment company (“RIC”) under subchapter M of the Internal Revenue
Code of 1986, as amended (the “Code”), for federal income tax purposes.
The Adviser is the
investment adviser of the Company and manages the investments of the Company subject to the supervision of the Company’s Board
of Directors (the “Board”). The Adviser is registered as an investment adviser with the U.S. Securities and Exchange Commission
(the “SEC”) under the Investment Advisers Act of 1940, as amended. Eagle Point Administration LLC, an affiliate of the Adviser,
is the administrator of the Company (the “Administrator”).
The consolidated financial
statements include the accounts of the Company and its wholly-owned subsidiaries- Eagle Point Credit Company Sub (Cayman) Ltd. (“Sub
I”), a Cayman Islands exempted company, Eagle Point Credit Company Sub II (Cayman) Ltd (“Sub II”), a Cayman Islands
exempted company and Eagle Point Credit Company Sub II (US) LLC (“Sub II US”), a Delaware limited liability company. All
intercompany accounts and transactions have been eliminated upon consolidation. As of March 31, 2024, Sub I, Sub II and Sub II US represent
52.3%, 2.7% and 0.8% of the Company’s net assets, respectively.
| 2. | SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Accounting
The consolidated financial
statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company
is an investment company and follows the accounting and reporting guidance applicable to investment companies in the Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services – Investment
Companies. Items included in the consolidated financial statements are measured and presented in United States dollars.
Use
of Estimates
The preparation of
financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts
included in the consolidated financial statements and accompanying notes as of the reporting date. Actual results may differ from those
estimates.
Valuation of Investments
The most significant
estimate inherent in the preparation of the consolidated financial statements is the valuation of investments.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
The Company accounts
for its investments in accordance with U.S. GAAP, and fair values its investment portfolio in accordance with the provisions of the FASB
ASC Topic 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value
and requires enhanced disclosures about fair value measurements. Investments are reflected in the consolidated financial statements at
fair value. Fair value is the estimated amount that would be received to sell an asset, or paid to transfer a liability, in an orderly
transaction between market participants at the measurement date (i.e., the exit price).
Pursuant to Rule 2a-5
under the 1940 Act adopted by the SEC in December 2020 (“Rule 2a-5”), the Board has elected to designate the Adviser as “valuation
designee” to perform fair value determinations, subject to Board oversight and certain other conditions. In the absence of readily
available market quotations, as defined by Rule 2a-5, the Adviser determines the fair value of the Company’s investments in accordance
with its written valuation policy approved by the Board. There is no single method for determining fair value in good faith. As a result,
determining fair value requires judgment be applied to the specific facts and circumstances of each portfolio investment while employing
a consistently applied valuation process for the types of investments held by the Company. Due to the uncertainty of valuation, this
estimate may differ significantly from the value that would have been used had a ready market for the investments existed, and the differences
could be material.
The Company determines
fair value based on assumptions that market participants would use in pricing an asset or liability in an orderly transaction at the
measurement date. When considering market participant assumptions in fair value measurements, the following fair value hierarchy prioritizes
and ranks the level of market price observability used in measuring investments:
| · | Level
I – Unadjusted quoted prices in active markets for identical assets or liabilities
that the Company is able to access as of the reporting date. |
| · | Level
II – Inputs, other than quoted prices included in Level I, that are observable
either directly or indirectly as of the reporting date. These inputs may include (a) quoted
prices for similar assets in active markets, (b) quoted prices for identical or similar assets
in markets that are not active, (c) inputs other than quoted prices that are observable for
the asset, or (d) inputs derived principally from or corroborated by observable market data
by correlation or other means. |
| · | Level
III – Pricing inputs are unobservable for the investment and little, if any, active
market exists as of the reporting date. Fair value inputs require significant judgment or
estimation from the Adviser. |
In certain cases, inputs
used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category
within the fair value hierarchy is appropriate for any given investment is based on the lowest level of input significant to that fair
value measurement. The assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment
and consideration of factors specific to the investment.
Market price observability
is impacted by a number of factors, including the type of investment, the characteristics specific to the investment and the state of
the marketplace (including the existence and transparency of transactions between market participants). Investments with readily available
actively quoted prices, or for which fair value can be measured from actively quoted prices in an orderly market, will generally have
a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Investments for which
observable, quoted prices in active markets do not exist are reported at fair value based on Level III inputs. The amount determined
to be fair value may incorporate the Adviser’s own assumptions (including assumptions the Adviser believes market participants
would use in valuing investments and assumptions relating to appropriate risk adjustments for nonperformance and lack of marketability),
as provided for in the Adviser’s valuation policy.
Joint Venture (“JV”)
investments held by the Company are measured using net asset value (“NAV”) as a practical expedient and are not categorized
within the fair value hierarchy.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
An estimate of fair
value is made for each investment at least monthly taking into account information available as of the reporting date and is subject
to review by the Board on a quarterly basis.
See Note 3 “Investments”
for further discussion relating to the Company’s investments.
Forward Currency
Contracts
The Company may enter
into forward currency contracts to manage the Company’s exposure to foreign currencies in which some of the Company’s investments
are denominated. A forward currency contract is an agreement between the Company and a counterparty to buy and sell a currency at an
agreed-upon exchange rate and on an agreed-upon future date. Forward currency contracts are recorded at fair value and the cumulative
change in fair value is reported as unrealized appreciation (depreciation) on forward currency contracts on the Consolidated Statement
of Assets and Liabilities. The Company records a realized gain or (loss) on the settlement of a forward currency contract with such realized
gains or (losses) reported on the Consolidated Statement of Operations. Cash amounts pledged for forward currency contracts is considered
restricted.
Temporary Equity
The
Company’s 6.75% Series D Preferred Stock (the “Series D Preferred Stock”) is accounted for in the Company’s Consolidated
Statement of Assets and Liabilities as temporary equity. FASB ASC Topic 480-10-S99, Distinguishing Liabilities from Equity (“ASC
480”), requires preferred stock that is contingently redeemable upon an occurrence of an event outside the Company’s control
to be classified as temporary equity. Deferred issuance costs on the Series D Preferred Stock consist of fees and expenses incurred
in connection with the issuance net of issuance premiums/(discounts), which are capitalized into temporary equity, and are amortized
only when it is probable the Series D Preferred Stock will become redeemable. As of March 31, 2024, the Company is compliant with all
contingent redemption provisions of the preferred offering; therefore, no deferred issuance costs have been amortized. The following
table reflects Series D Preferred Stock balances as of March 31, 2024:
| |
Shares
Outstanding | | |
Liquidation
Preference | | |
Deferred
Issuance Costs | | |
Carrying
Value | |
Series
D Preferred Stock | |
| 1,473,782 | | |
$ | 36,844,550 | | |
$ | (3,167,627 | ) | |
$ | 33,676,923 | |
Distributions paid
on the Series D Preferred Stock are included in the Consolidated Statement of Operations as a component of net increase (decrease) in
net assets resulting from operations.
Other Financial
Assets and Financial Liabilities at Fair Value
The
Fair Value Option (“FVO”) under FASB ASC Subtopic 825-10, Fair Value Option (“ASC 825”), allows companies
to make an irrevocable election to use fair value as the initial and subsequent accounting measurement for certain financial assets and
liabilities. The decision to elect the FVO is determined on an instrument-by-instrument basis and must be applied to an entire instrument.
Assets and liabilities measured at fair value are required to be reported separately from those instruments measured using another accounting
method and changes in fair value attributable to instrument-specific credit risk on financial liabilities for which the FVO is elected
are required to be presented separately in other comprehensive income. Additionally, upfront offering costs related to such instruments,
inclusive of the costs associated with issuances under the Company’s at-the-market (“ATM”) program, are recognized
in earnings as incurred and are not deferred.
The
Company elected to account for its 6.6875% Unsecured Notes due 2028 (the “Series 2028 Notes”), 5.375% Unsecured Notes due
2029 (the “Series 2029 Notes”), 6.75% Unsecured Notes due 2031 (the “Series 2031 Notes” and collectively
with the Series 2028 Notes and Series 2029 Notes, the “Unsecured Notes”), 6.50% Series C Term Preferred Stock due 2031 (the
“Series C Term Preferred Stock”) and its 8.00% Series F Term Preferred Stock due 2029 (the “Series F Term Preferred
Stock” and collectively with the Series C Term Preferred Stock, the “Term Preferred Stock”) utilizing the FVO under
ASC 825. The primary reason for electing the FVO is to reflect economic events in the same period in which they are incurred and address
simplification of reporting
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
and presentation.
Investment Income
Recognition
Interest income from
investments in CLO debt, asset backed securities (“ABS”), bank debt term loans, collateralized fund obligation (“CFO”)
debt, corporate bonds and regulatory capital relief securities is recorded using the accrual basis of accounting to the extent such amounts
are expected to be collected. Interest income on such investments is generally expected to be received in cash. The Company applies the
provisions of Accounting Standards Update No. 2017-08 Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”)
in calculating amortization of premium for applicable investments. Amortization of premium or accretion of discount is recognized using
the effective interest method.
In certain circumstances,
all or a portion of interest income from a given investment may be paid in the form of additional investment principal, often referred
to as payment-in-kind (“PIK”) interest. PIK interest is included in interest income and interest receivable through the payment
date. The PIK interest rate represents the coupon rate at payment date when PIK interest is received. On the payment date, all or a portion
of interest receivable is capitalized as additional principal in the investment. To the extent the Company does not believe it will ultimately
be able to collect PIK interest, the investment will be placed on non-accrual status, and previously recorded PIK interest income will
be reversed.
CLO equity investments,
fee rebates and CFO equity investments recognize investment income for U.S. GAAP purposes on the accrual basis utilizing an effective
interest methodology based upon an effective yield to maturity utilizing projected cash flows. ASC Topic 325-40, Beneficial Interests
in Securitized Financial Assets, requires investment income from such investments to be recognized under the effective interest method,
with any difference between cash distributed and the amount calculated pursuant to the effective interest method being recorded as an
adjustment to the cost basis of the investment. It is the Adviser’s policy to update the effective yield for each CLO equity and
fee rebate position held within the Company’s portfolio at the initiation of each investment and each subsequent quarter thereafter.
It is the Adviser’s policy to review the effective yield for each CFO equity position at each measurement date and update periodically
based on the facts and circumstances known to the Adviser.
LAFs
recognize interest income according to the guidance noted in ASC Topic 325-40-35-1, Beneficial Interest in Securitized Financial
Assets, which states that the holder of a beneficial interest in securitized financial assets shall determine interest income over
the life of the beneficial interest in accordance with the effective yield method, provided such amounts are expected to be collected.
FASB ASC 325-40-20 further defines “beneficial interests,” among other things, as “rights to receive all or portions
of specified cash inflows received by a trust or other entity.” FASB ASC 325-40-15-7 also states that for income recognition purposes,
beneficial interests in securitized financial assets (such as those in LAFs) are within the scope of ASC 325-40 because it is customary
for certain industries, such as investment companies, to report interest income as a separate item in their income statements even though
the investments are accounted for at fair value. The amount of interest income from loan accumulation facilities recorded for the three
months ended March 31, 2024 was $1.3 million.
Other Income
Other income includes
the Company’s share of income under the terms of fee rebate agreements and commitment fee income.
Dividend Income
Dividend income represents
dividend income from the Company’s common stock investments.
Interest Expense
Interest expense includes
the Company’s distributions associated with its Term Preferred Stock and interest paid associated with its Unsecured Notes. Interest
expense also includes the Company’s amortization of original issue premiums associated with its Term Preferred Stock.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
The following table
summarizes the components of interest expense for the three months ended March 31, 2024:
| |
Series
C Term
Preferred Stock | | |
Series
F Term
Preferred Stock | | |
Series
2028
Notes | | |
Series
2029
Notes | | |
Series
2031
Notes | | |
Total | |
Distributions
declared and paid | |
$ | 882,602 | | |
$ | 773,113 | | |
$ | 542,085 | | |
$ | 1,253,046 | | |
$ | 756,844 | | |
$ | 4,207,690 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Amortization
of issuance premium | |
| (28,077 | ) | |
| (24 | ) | |
| - | | |
| - | | |
| - | | |
| (28,101 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Total
interest expense | |
$ | 854,525 | | |
$ | 773,089 | | |
$ | 542,085 | | |
$ | 1,253,046 | | |
$ | 756,844 | | |
$ | 4,179,589 | |
The Company’s
Term Preferred Stock and Unsecured Notes had no interest payable outstanding as of March 31, 2024.
See Note 7 “Preferred
Stock” and Note 8 “Unsecured Notes” for further discussion relating to the Term Preferred Stock issuances and Unsecured
Notes issuances, respectively.
Original Issue Premiums
Original
issue premiums on liabilities consist of premiums received in connection with the issuance of the Term Preferred Stock as part
of the Company’s ATM program, consistent with FASB ASC Topic 835-30-35-2. The original issue premiums are capitalized at the time
of issuance and amortized using the effective interest method over the term of the Term Preferred Stock. Amortization of original issue
premiums is reflected as a contra expense within interest expense in the Consolidated Statement of Operations.
Repurchase of Debt
Securities
The
Company records any gains from the repurchase of the Company’s debt at a discount through open market transactions or redemptions
and subsequent retirement as a realized gain or loss in the Consolidated Statement of Operations.
Securities
Transactions
The Company records
the purchase and sale of securities on the trade date. Realized gains and losses on investments sold are recorded on the basis of the
specific identification method.
In certain circumstances
where the Adviser determines it is unlikely to fully amortize a CLO equity or CLO debt investment’s remaining amortized cost, such
remaining cost is written-down to its current fair value and recognized as a realized loss in the Consolidated Statement of Operations.
Cash and Cash Equivalents
The Company has defined
cash and cash equivalents as cash and short-term, highly liquid investments with original maturities of three months or less from the
date of purchase. The Company maintains its cash in bank accounts, which, at times, may exceed federal insured limits. The Adviser monitors
the performance of the financial institution where the accounts are held in order to manage any risk associated with such accounts.
Restricted Cash
Restricted cash is
subject to a legal or contractual restriction by third parties as well as a restriction as to withdrawal or use, including restrictions
that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. The
Company considers cash collateral posted with counterparties for foreign currency contracts to be restricted cash. As of March 31, 2024,
the Company held $1.3 million in restricted cash associated with forward currency contracts entered into by the Company.
Foreign Currency
The Company does not
isolate the portion of its results of operations resulting from changes in foreign exchange rates on investments from the fluctuations
arising from changes in the market price of such investments. Such
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
fluctuations are included
with the net change in unrealized appreciation (depreciation) on investments, foreign currency and cash equivalents. Reported net realized
foreign exchange gains or losses may arise from sales of foreign currency, currency gains or losses realized between trade and settlement
dates on investment transactions, and the difference between the amounts of dividends and interest income recorded on the Company’s
books and the U.S. dollar equivalent of the amounts actually received.
Expense
Recognition
Expenses are recorded
on the accrual basis of accounting.
Prepaid Expenses
Prepaid expenses consist
primarily of insurance premiums, filing fees, shelf registration expenses and ATM program expenses. Prepaid shelf registration expenses
and ATM program expenses represent fees and expenses incurred in connection with the initial registration of the Company’s current
shelf registration and ATM program. Such costs are allocated pro-rata based on the amount issued relative to the total respective offering
amount to paid-in-capital or expense depending on the security being issued pursuant to the shelf registration and ATM program. Any subsequent
costs incurred to maintain the Company’s ATM program are expensed as incurred.
Any unallocated prepaid
expense balance associated with the shelf registration and the ATM program are accelerated into expense at the earlier of the end of
the program period or at the effective date of a new shelf registration or ATM program.
Offering Expenses
Offering expenses associated
with the issuance and sale of shares of common stock, inclusive of expenses incurred associated with offerings under the ATM program,
are charged to paid-in capital at the time the shares are sold in accordance with guidance noted in FASB ASC Topic 946-20-25-5, Investment
Companies – Investment Company Activities – Recognition, during the period incurred.
Federal and Other
Taxes
The Company intends
to continue to operate so as to qualify to be taxed as a RIC under subchapter M of the Code and, as such, to not be subject to federal
income tax on the portion of its taxable income and gains distributed to stockholders. To qualify for RIC tax treatment, among other
requirements, the Company is required to distribute at least 90% of its investment company taxable income, as defined by the Code.
Because U.S. federal
income tax regulations differ from U.S. GAAP, distributions in accordance with tax regulations may differ from net investment income
and realized gains recognized for financial reporting purposes. Differences may be permanent or temporary. Permanent differences are
reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Temporary differences arise
when certain items of income, expense, gain or loss are recognized at some time in the future. Differences in classification may also
result from the treatment of short-term gains as ordinary income for federal income tax purposes. The tax basis components of distributable
earnings may differ from the amounts reflected in the Consolidated Statement of Assets and Liabilities due to temporary book/tax differences
arising primarily from partnerships and passive foreign investment company investments.
As
of March 31, 2024, the federal income tax cost and net unrealized depreciation on securities were as follows:
Cost for federal income tax purposes | |
$ | 1,206,095,389 | |
| |
| | |
Gross unrealized appreciation | |
$ | 28,289,860 | |
Gross unrealized depreciation | |
| (241,523,257 | ) |
Net unrealized depreciation | |
$ | (213,233,397 | ) |
For the three months
ended March 31, 2024, the Company incurred $25,000 in Delaware franchise tax expense
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
and $350,000 in
U.S. federal excise tax related to the 2023 tax year.
The Company’s
subsidiary, Eagle Point Credit Company Sub II (US) LLC has elected to be treated as a corporation for U.S. tax purposes and may be subject
to federal, state and local tax where it operates or is deemed to operate. The subsidiary has no significant tax liability as of March
31, 2024.
Distributions
The composition of
distributions paid to common stockholders from net investment income and capital gains are determined in accordance with U.S. federal
income tax regulations, which differ from U.S. GAAP. Distributions to common stockholders can be comprised of net investment income,
net realized capital gains and return of capital for U.S. federal income tax purposes and are intended to be paid monthly. Distributions
payable to common stockholders are recorded as a liability on ex-dividend date. Unless a common stockholder opts out of the Company’s
dividend reinvestment plan (the “DRIP”), distributions are automatically reinvested in full shares of the Company as of the
payment date, pursuant to the DRIP. The Company’s common stockholders who opt-out of participation in the DRIP (including those
common stockholders whose shares are held through a broker who has opted out of participation in the DRIP) generally will receive all
distributions in cash.
In addition to the
regular monthly distributions, and subject to available taxable earnings of the Company, the Company may make periodic special and/or
supplemental distributions representing the excess of the Company’s net taxable income over the Company’s aggregate monthly
distributions paid during the year.
The characterization
of distributions paid to common stockholders, as set forth in the Consolidated Financial Highlights, reflect estimates made by the Company
for federal income tax purposes. Such estimates are subject to change once the final determination of the source of all distributions
has been made and the final tax return has been filed by the Company.
For
the three months ended March 31, 2024, the Company paid distributions on common stock with record dates during 2024 of $38.8 million
or $0.48 per share.
For
the three months ended March 31, 2024, the Company declared and paid dividends on the Series C Term Preferred Stock of $0.9 million
or approximately $0.41 per share of the Series C Term Preferred Stock.
For
the three months ended March 31, 2024, the Company declared and paid dividends on the Series D Preferred Stock of $0.6 million
or approximately $0.42 per share of the Series D Preferred Stock.
For
the three months ended March 31, 2024, the Company declared and paid dividends on the Series F Term Preferred Stock of $0.8 million
or approximately $0.39 per share of the Series F Term Preferred Stock.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
Fair
Value Measurement
The following tables
summarize the valuation of the Company’s investments measured and reported at fair value under the fair value hierarchy levels
described in Note 2 “Summary of Significant Accounting Policies” as of March 31, 2024:
Fair
Value Measurement (in millions) | |
| | |
| | |
| | |
| | |
| |
| |
Level
I | | |
Level
II | | |
Level
III | | |
Investments
measured at net asset value | | |
Total | |
Assets
at Fair Value | |
| | | |
| | | |
| | | |
| | | |
| | |
Investments
at Fair Value | |
| | | |
| | | |
| | | |
| | | |
| | |
CLO
Debt | |
$ | - | | |
$ | 172.5 | | |
$ | - | | |
$ | - | | |
$ | 172.5 | |
CLO
Equity | |
| - | | |
| - | | |
| 725.5 | | |
| - | | |
| 725.5 | |
Loan
Accumulation Facilities | |
| - | | |
| - | | |
| 19.6 | | |
| - | | |
| 19.6 | |
Asset
Backed Securities | |
| - | | |
| - | | |
| 18.7 | | |
| - | | |
| 18.7 | |
Bank
Debt Term Loan | |
| - | | |
| 0.1 | | |
| - | | |
| - | | |
| 0.1 | |
CFO
Debt | |
| - | | |
| - | | |
| 1.7 | | |
| - | | |
| 1.7 | |
CFO
Equity | |
| - | | |
| - | | |
| 1.4 | | |
| - | | |
| 1.4 | |
Common
Stock | |
| 2.7 | | |
| - | | |
| 0.0 | | |
| 2.4 | | |
| 5.1 | |
Corporate
Bonds | |
| - | | |
| - | | |
| 4.7 | | |
| 5.0 | | |
| 9.7 | |
Preferred
Stock | |
| - | | |
| - | | |
| 0.3 | | |
| - | | |
| 0.3 | |
Regulatory
Capital Relief Securities | |
| - | | |
| - | | |
| 38.2 | | |
| - | | |
| 38.2 | |
Warrants | |
| - | | |
| 0.00 | | |
| - | | |
| - | | |
| 0.0 | |
Total
Investments at Fair Value (1) | |
$ | 2.7 | | |
$ | 172.6 | | |
$ | 810.2 | | |
$ | 7.4 | | |
$ | 992.9 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities
at Fair Value | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Term
Preferred Stock and Unsecured Notes | |
| | | |
| | | |
| | | |
| | | |
| | |
Series
2028 Notes | |
$ | 31.6 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 31.6 | |
Series
2029 Notes | |
| 84.2 | | |
| - | | |
| - | | |
| - | | |
| 84.2 | |
Series
2031 Notes | |
| 42.9 | | |
| - | | |
| - | | |
| - | | |
| 42.9 | |
Series
C Term Preferred Stock | |
| 47.6 | | |
| - | | |
| - | | |
| - | | |
| 47.6 | |
Series
F Term Preferred Stock | |
| 51.3 | | |
| - | | |
| - | | |
| - | | |
| 51.3 | |
Total
Liabilities at Fair Value (1) | |
$ | 257.6 | | |
$ | - | | |
$ | - | | |
$ | - | | |
$ | 257.6 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Other
Financial Instruments at Fair Value (2) | |
| | | |
| | | |
| | | |
| | | |
| | |
Forward
Currency Contracts | |
| | | |
| | | |
| | | |
| | | |
| | |
Unrealized
appreciation on forward currency contracts | |
$ | - | | |
$ | 0.5 | | |
$ | - | | |
$ | - | | |
$ | 0.5 | |
Unrealized
depreciation on forward currency contracts | |
| - | | |
| (0.0 | ) | |
| - | | |
| - | | |
| (0.0 | ) |
Total
Other Financial Instruments at Fair Value (1) | |
$ | - | | |
$ | 0.4 | | |
$ | - | | |
$ | - | | |
$ | 0.4 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
(1) Amounts may not foot due to rounding. | | |
(2) Other financial instruments at fair value are representative of derivative contracts, such as forward currency contracts. These
instruments are reflected at the unrealized appreciation (depreciation) on the instrument. |
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
Significant
Unobservable Inputs
The following table
summarizes the quantitative inputs and assumptions used for investments categorized within Level III of the fair value hierarchy as of
March 31, 2024.
| |
| Quantitative
Information about Level III Fair Value Measurements |
Assets | |
| Fair
Value | | |
Valuation
Techniques/Methodologies | |
Unobservable
Inputs | |
Range
/ Weighted Average(1) |
| |
| (in
millions) | | |
| |
| |
|
CLO
Equity | |
$ | 706.4 | | |
Discounted Cash Flows | |
Annual
Default Rate (2) | |
0.00% - 8.93% |
| |
| | | |
| |
Annual
Prepayment Rate (3) | |
25.00% |
| |
| | | |
| |
Reinvestment Spread | |
3.44% - 5.59% / 3.68% |
| |
| | | |
| |
Reinvestment Price | |
99.50% |
| |
| | | |
| |
Recovery Rate | |
66.90% - 70.00% / 69.58% |
| |
| | | |
| |
Expected
Yield (4) | |
4.37% - 73.42% / 23.96% |
| |
| | | |
| |
| |
|
Asset
Backed Securities | |
| 18.7 | | |
Discounted Cash Flow | |
Discount Rate | |
12.74% - 13.76% / 12.89% |
CFO
Equity | |
| 1.4 | | |
Discounted Cash Flow | |
Discount
Rate (5) | |
41.01% |
CFO
Debt | |
| 1.7 | | |
Discounted Cash Flow | |
Discount Rate | |
11.40% - 14.70% / 12.44% |
Corporate
Bonds | |
| 4.7 | | |
Discounted Cash Flow | |
Discount
Rate (5) | |
13.00% |
Preferred
Stock | |
| 0.3 | | |
Discounted Cash Flow | |
Discount
Rate (5) | |
12.00% |
Regulatory
Capital Relief Securities | |
| 38.2 | | |
Discounted Cash Flow | |
Discount Rate | |
12.00% - 21.89% / 14.30% |
Total
Fair Value of Level III Investments (6) | |
$ | 771.4 | | |
| |
| |
|
|
(1)
|
Weighted
average calculations are based on the fair value of investments. |
|
(2)
|
A weighted
average is not presented as the input in the discounted cash flow model varies over the life of an investment. |
|
(3)
|
0% is assumed
for defaulted and non-performing assets. |
|
(4)
|
Represents
yield based on fair value and projected future cash flow. |
|
(5)
|
Range
not shown as only one position is included in category. |
|
(6) |
Amounts may
not foot due to rounding. |
In
addition to the techniques and inputs noted in the above table, the Adviser may use other valuation techniques and methodologies when
determining the fair value measurements of the Company’s investments, as provided for in the Adviser’s valuation policy approved
by the Board. Please refer to Note 2 "Summary of Significant Accounting Policies" for further discussion. The table is not
intended to be all-inclusive, but rather provides information on the significant Level III inputs as they relate to the Company’s
fair value measurements as of March 31, 2024. Unobservable inputs and assumptions are reviewed at each measurement date and updated
as necessary to reflect current market conditions.
Increases (decreases)
in the annual default rate, reinvestment price, expected yield and discount rate in isolation would result in a lower (higher) fair value
measurement. Increases (decreases) in the reinvestment spread and recovery rate in isolation would result in a higher (lower) fair value
measurement. Changes in the annual prepayment rate may result in a higher (lower) fair value, depending on the circumstances. Generally,
a change in the assumption used for the annual default rate may be accompanied by a directionally opposite change in the assumption used
for the annual prepayment rate and recovery rate.
Certain
of the Company’s Level III investments have been valued using unadjusted inputs that have not been internally developed by the
Adviser, including third-party transactions, recent transactions and data reported by trustees. As a result, investments with a fair
value of $19.6 million have been excluded from the preceding table. Additionally, the preceding table excludes $19.1 million of
fair value pertaining to called CLO equity that has not yet been fully paid down and CLO equity with expected yields below 0% and over
100%.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes to Consolidated Financial Statements
March 31, 2024
(Unaudited)
Change
in Investments Classified as Level III
The changes
in investments classified as Level III are as follows for the three months ended March 31, 2024:
| |
CLO
Equity | | |
Loan
Accumulation Facilities | | |
Asset
Backed Securities | | |
CFO
Debt | | |
CFO
Equity | |
Balance
as of January 1, 2024 | |
$ | 633.0 | | |
$ | 21.5 | | |
$ | 24.6 | | |
$ | 1.2 | | |
$ | 0.9 | |
Purchases of investments | |
| 106.3 | (1) | |
| 19.0 | | |
| 1.0 | | |
| 0.5 | | |
| 0.4 | |
Proceeds
from sales or maturity of investments | |
| (15.6 | )(2) | |
| (20.8 | )(1) | |
| (6.3 | ) | |
| - | | |
| - | |
Net
realized gains (losses) and net change in unrealized appreciation (depreciation) | |
| 1.8 | | |
| (0.1 | ) | |
| (0.6 | ) | |
| - | | |
| 0.1 | |
Balance
as of March 31, 2024 (3) (4) | |
$ | 725.5 | | |
$ | 19.6 | | |
$ | 18.7 | | |
$ | 1.7 | | |
$ | 1.4 | |
Change in unrealized
appreciation (depreciation) on investments still held as of March 31, 2024 | |
$ | 1.8 | | |
$ | 0.0 | | |
$ | (0.3 | ) | |
$ | 0.0 | | |
$ | 0.1 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| Common
Stock | | |
| Corporate
Bonds | | |
| Preferred
Stock | | |
| Regulatory
Capital Relief Securities | | |
| Total | |
Balance as of
January 1, 2024 | |
$ | 0.0 | | |
$ | 3.0 | | |
$ | 0.3 | | |
$ | 38.4 | | |
$ | 722.8 | |
Purchases of investments | |
| - | | |
| 1.7 | | |
| - | | |
| - | | |
| 128.9 | |
Proceeds
from sales or maturity of investments | |
| - | | |
| - | | |
| - | | |
| (0.6 | ) | |
| (43.3 | ) |
Net
realized gains (losses) and net change in unrealized appreciation (depreciation) | |
| 0.0 | | |
| - | | |
| - | | |
| 0.4 | | |
| 1.8 | |
Balance
as of March 31, 2024 (3) (4) | |
$ | 0.0 | | |
$ | 4.7 | | |
$ | 0.3 | | |
$ | 38.2 | | |
$ | 810.2 | |
Change in unrealized
appreciation (depreciation) on investments still held as of March 31, 2024 | |
$ | - | | |
$ | (0.0 | ) | |
$ | - | | |
$ | 0.4 | | |
$ | 2.0 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Amounts
in millions. | |
| | | |
| | | |
| | | |
| | | |
| | |
|
(1) |
Includes $26.1 million of proceeds
from sales or maturity of investments in loan accumulation facilities transferred to purchases of investments in CLO equity. |
|
(2)
|
Includes $15.5 million of return
of capital on CLO equity investments from recurring cash flows and distributions from called deals. |
|
(3)
|
There were no transfers into or
out of level III investments during the period. |
|
(4) |
Amounts may not foot due to rounding. |
The net realized gains
(losses) recorded for Level III investments are reported in the net realized gain (loss) on investments, foreign currency and cash equivalents
balance in the Consolidated Statement of Operations. Net changes in unrealized appreciation (depreciation) are reported in the net change
in unrealized appreciation (depreciation) on investments, foreign currency and cash equivalents balance in the Consolidated Statement
of Operations.
Fair Value –
Valuation Techniques and Inputs
The Adviser establishes
valuation processes and procedures to ensure the valuation techniques are fair and consistent, and valuation inputs are supportable.
The Adviser has a Valuation Committee comprised of various senior personnel of the Adviser, the majority of which are not members of
the Company’s portfolio management function. The Valuation Committee is responsible for overseeing the valuation process, evaluating
the overall fairness and consistent application of the Adviser’s written valuation policies approved by the Board. The Valuation
Committee reviews and approves the valuation on a monthly basis.
Valuation of
CLO Equity
The Adviser estimates
the fair value of CLO equity investments utilizing the output from a third-party financial
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
tool
based on assumptions derived from internal and external (market) data. The tool contains detailed information on the characteristics
of each CLO, including recent information about assets and liabilities from data sources such as trustee reports, and uses market data
inputs to project future cash flows to CLO equity tranches. Key inputs to the tool, including, but not limited to assumptions for future
loan default rates, recovery rates, prepayment rates, reinvestment rates and discount rates are determined by considering both observable
and third-party market data and prevailing general market assumptions and conventions as well as those of the Adviser. Additionally,
a third-party independent valuation firm is used as an input by the Adviser to determine the fair value of the Company’s investments
in CLO equity. The valuation firm’s advice is only one factor considered in the valuation of such investments, and the Adviser
does not solely rely on such advice in determining the fair value of the Company’s investments in accordance with the 1940 Act.
The
Adviser categorizes CLO equity as Level III investments. Certain pricing inputs may be unobservable. An active market may exist, but
not necessarily for CLO equity investments that the Company holds as of the reporting date.
Valuation
of CLO Debt
The
Company’s investments in CLO debt have been valued using an independent pricing service. The valuation methodology of the independent
pricing service includes incorporating data comprised of observable market transactions, executable bids, broker quotes from dealers
with two sided markets, as well as transaction activity from comparable securities to those being valued. As the independent pricing
service contemplates real time market data and no unobservable inputs or significant judgment has been used by the Adviser in the valuation
of the Company’s investment in CLO debt, such positions are considered Level II assets.
Valuation
of Loan Accumulation Facilities
The
Adviser determines the fair value of LAFs in accordance with FASB ASC Topic 820, Fair Value Measurements and Disclosures, utilizing
the income approach as noted in ASC 820-10-55-3F (the “Income Approach”), in which fair value measurement reflects current
market expectations about the receipt of future amounts (i.e., exit price). LAFs are typically short- to medium-term in nature and formed
to acquire loans on an interim basis that are expected to form part of a specific CLO transaction. Pursuant to LAF governing documents,
loans acquired by the LAF are typically required to be transferred to the contemplated CLO transaction at original cost plus accrued
interest. In such situations, because the LAF will receive its full cost basis in the underlying loan assets and the accrued interest
thereon upon the consummation of the CLO transaction, the Adviser determines the fair value of the LAF as follows: (A) the cost of the
Company’s investment (i.e., the principal amount invested), and (B) to the extent the LAF has realized gains (losses) on its underlying
loan assets which are reported by the Trustee during the applicable reporting period, its attributable portion of such realized gains
(losses).
In
certain circumstances, the LAF documents can contemplate transferring the underlying loans at a price other than original cost plus accrued
interest or the Adviser may determine that, despite the initial expectation that a CLO transaction would result from a LAF, such a transaction
is in fact unlikely to occur and, accordingly, it is unlikely the loans held by the LAF will be transferred at cost. Rather, the loans
held by the LAF will most likely be sold at market value. In such situations, the Adviser will continue to fair value the LAF consistent
with the Income Approach, but modify the fair value measurement to reflect the change in exit strategy of the LAF to incorporate market
expectations of the receipt of future amounts (i.e., exit price). As such, the fair value of the LAF is most appropriately determined
by reference to the market value of the LAF’s underlying loans, which is reflective of the price at which the LAF could sell its
loan assets in an orderly transaction between market participants. As such, in these situations, the Adviser will continue utilizing
the Income Approach and determine the fair value of the LAF as follows: (A) the cost of the Company’s investment (i.e., the principal
amount invested), (B) the Company’s attributable portion of the unrealized gain (loss) on the LAF’s underlying loan assets,
and (C) to the extent the LAF has realized gains (losses) on its underlying loan assets which are reported by the Trustee during the
applicable reporting period, its attributable portion of such realized gains (losses). The Adviser’s measure of the Company’s
attributable portion of the unrealized gain (loss) on the LAF’s underlying loan assets takes into account the Adviser’s current
market expectations of the receipt of future amounts on such assets, which
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
may
be impacted by various factors including any applicable change in market conditions or new information.
The
Adviser categorizes LAFs as Level III investments. There is no active market and prices are unobservable.
Valuation
of Bank Debt Term Loans, ABS, CFO Debt, CFO Equity, Common Stock, Corporate Bonds, Preferred Stock, Regulatory Capital Relief Securities
and Warrants
The
Adviser generally engages a nationally recognized independent valuation agent to determine fair value for bank debt term loans, ABS,
CFO debt, CFO equity, common stock, corporate bonds, preferred stock, regulatory capital relief securities and warrants. The independent
valuation agent performs a discounted cash flow analysis, or other valuation technique appropriate for the facts and circumstances, to
determine the fair value of such investments, ultimately providing a high and low valuation for each investment. The final valuation
recorded is within the high and low band provided by the valuation agent. Given the lack of observable inputs, the Adviser categorizes
these investments as Level III investments.
The
Adviser may also utilize the mid-point of an indicative broker quotation, if available, to value such investments as of the reporting
date. The Adviser generally categorizes investments valued utilizing indicative broker quotations as Level II or Level III depending
on whether an active market exists as of the reporting date.
Exchange-Traded
Investments
The
Adviser values common stock investments that are traded on a national securities exchange at their last reported closing price from the
applicable exchange as of the measurement date. Due to their observability and active market, the Adviser categorizes such investments
as Level I investments.
Valuation
of Joint Venture Investments
JV
investments consist of common stock and senior unsecured notes issued by a JV entity. The Company values such investments using NAV as
a practical expedient, unless it is probable that the Company will sell a portion of the investment at an amount different than NAV.
Valuation
of Unsecured Notes and Term Preferred Stock
The
Unsecured Notes and Term Preferred Stock are considered Level I securities and are valued at their official closing price, taken from
the NYSE.
Investment
Risk Factors and Concentration of Investments
The
following list is not intended to be a comprehensive list of all of the potential risks associated with the Company. The Company’s
prospectus provides a detailed discussion of the Company’s risks and considerations. The risks described in the prospectus are
not the only risks the Company faces. Additional risks and uncertainties not currently known to the Company or that are currently deemed
to be immaterial also may materially and adversely affect its business, financial condition and/or operating results.
Risks
of Investing in CLOs and Other Structured Debt Securities
CLOs
and other structured finance securities are generally backed by a pool of credit-related assets that serve as collateral. Accordingly,
CLO and structured finance securities present risks similar to those of other types of credit investments, including default (credit),
interest rate and prepayment risks. In addition, CLOs and other structured finance securities are often governed by a complex series
of legal documents and contracts, which increases the risk of dispute over the interpretation and enforceability of such documents relative
to other types of investments. There is also a risk that the trustee of a CLO does not properly carry out its duties to the CLO, potentially
resulting in loss to the CLO. CLOs are also inherently leveraged vehicles and are subject to leverage risk.
Subordinated
Securities Risk
CLO
equity and junior debt securities that the Company may acquire are subordinated to more senior tranches of CLO debt. CLO equity and junior
debt securities are subject to increased risks of default relative to the holders of superior priority interests in the same CLO. In
addition, at the time of issuance, CLO equity securities are under-collateralized in that the face amount of the CLO debt and CLO equity
of a CLO at inception exceed its total
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
assets.
The Company will typically be in a subordinated or first loss position with respect to realized losses on the underlying assets held
by the CLOs in which the Company is invested.
High
Yield Investment Risk
The
CLO equity and junior debt securities that the Company acquires are typically rated below investment grade, or in the case of CLO equity
securities unrated, and are therefore considered “higher yield” or “junk” securities and are considered speculative
with respect to timely payment of interest and repayment of principal. The senior secured loans and other credit-related assets underlying
CLOs are also higher yield investments. Investing in CLO equity and junior debt securities and other high yield investments typically
involves greater credit and liquidity risk than investment grade obligations, which may adversely impact the Company’s performance.
Leverage
Risk
The
use of leverage, whether directly or indirectly through investments such as CLO equity or junior debt securities that inherently involve
leverage, may magnify the Company’s risk of loss. CLO equity or junior debt securities are very highly leveraged (with CLO equity
securities typically being leveraged ten times), and therefore the CLO securities in which the Company invests are subject to a higher
degree of risk of loss since the use of leverage magnifies losses.
Credit
Risk
If
(1) a CLO in which the Company invests, (2) an underlying asset of any such CLO or (3) any other type of credit investment in the Company’s
portfolio declines in price or fails to pay interest or principal when due because the issuer or debtor, as the case may be, experiences
a decline in its financial status, the Company’s income, NAV and/or market price would be adversely impacted.
Key
Personnel Risk
The
Adviser manages our investments. Consequently, the Company’s success depends, in large part, upon the services of the Adviser and
the skill and expertise of the Adviser’s professional personnel. There can be no assurance that the professional personnel of the
Adviser will continue to serve in their current positions or continue to be employed by the Adviser. We can offer no assurance that their
services will be available for any length of time or that the Adviser will continue indefinitely as the Company’s investment adviser.
Conflicts
of Interest Risk
The
Company’s executive officers and directors, and the Adviser and certain of its affiliates and their officers and employees, including
the members of the Investment Committee, have several conflicts of interest as a result of the other activities in which they engage.
Prepayment
Risk
The
assets underlying the CLO securities in which the Company invests are subject to prepayment by the underlying corporate borrowers. As
such, the CLO securities and related investments in which the Company invests are subject to prepayment risk. If the Company or a CLO
collateral manager are unable to reinvest prepaid amounts in a new investment with an expected rate of return at least equal to that
of the investment repaid, the Company’s investment performance will be adversely impacted.
Liquidity
Risk
Generally,
there is no public market for the CLO investments in which the Company invests. As such, the Company may not be able to sell such investments
quickly, or at all. If the Company is able to sell such investments, the prices the Company receives may not reflect the Adviser’s
assessment of their fair value or the amount paid for such investments by the Company.
Incentive
Fee Risk
The
Company’s incentive fee structure and the formula for calculating the fee payable to the Adviser may incentivize the Adviser to
pursue speculative investments and use leverage in a manner that adversely impacts the Company’s performance.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
Fair
Valuation of the Company’s Portfolio Investments
Generally,
there is no public market for the CLO investments and certain other credit assets in which the Company may invest. The Adviser values
these securities at least quarterly, or more frequently as may be required from time to time, at fair value. The Adviser’s determinations
of the fair value of the Company’s investments have a material impact on the Company’s net earnings through the recording
of unrealized appreciation or depreciation of investments and may cause the Company’s NAV on a given date to understate or overstate,
possibly materially, the value that the Company ultimately realizes on one or more of the Company’s investments.
Limited
Investment Opportunities Risk
The
market for CLO securities is more limited than the market for other credit related investments. The Company can offer no assurances that
sufficient investment opportunities for the Company’s capital will be available. In recent years there has been a marked increase
in the number of, and flow of capital into, investment vehicles established to pursue investments in CLO securities whereas the size
of the market is relatively limited. While the Company cannot determine the precise effect of such competition, such increase may result
in greater competition for investment opportunities, which may result in an increase in the price of such investments relative to the
risk taken on by holders of such investments. Such competition may also result under certain circumstances in increased price volatility
or decreased liquidity with respect to certain positions.
Non-Diversification
Risk
The
Company is a non-diversified investment company under the 1940 Act and expect to hold a narrower range of investments than a diversified
fund under the 1940 Act.
Market
Risk
Political,
regulatory, economic and social developments, and developments that impact specific economic sectors, industries or segments of the market,
can affect the value of the Company’s investments. A disruption or downturn in the capital markets and the credit markets could
impair the Company’s ability to raise capital, reduce the availability of suitable investment opportunities for the Company, or
adversely and materially affect the value of the Company’s investments, any of which would negatively affect the Company’s
business. These risks may be magnified if certain events or developments adversely interrupt the global supply chain, and could affect
companies worldwide.
Loan
Accumulation Facilities Risk
The
Company may invest in LAFs, which are short to medium term facilities often provided by the bank that will serve as placement agent or
arranger on a CLO transaction and which acquire loans on an interim basis which are expected to form part of the portfolio of a future
CLO. Investments in LAFs have risks similar to those applicable to investments in CLOs. Leverage is typically utilized in such a facility
and as such the potential risk of loss will be increased for such facilities employing leverage. In the event a planned CLO is not consummated,
or the loans are not eligible for purchase by the CLO, the Company may be responsible for either holding or disposing of the loans. This
could expose the Company to credit and/or mark-to-market losses, and other risks.
Synthetic
Investments Risk
The
Company may invest in synthetic investments, such as significant risk transfer securities and credit risk transfer securities issued
by banks or other financial institutions, or acquire interests in lease agreements that have the general characteristics of loans and
are treated as loans for withholding tax purposes. In addition to the credit risks associated with the applicable reference assets, the
Company will usually have a contractual relationship only with the counterparty of such synthetic investment, and not with the reference
obligor of the reference asset. Accordingly, the Company generally will have no right to directly enforce compliance by the reference
obligor with the terms of the reference asset nor will it have any rights of setoff against the reference obligor or rights with respect
to the reference asset. The Company will not directly benefit from the collateral supporting the reference asset and will not have the
benefit of the remedies that would normally be available to a holder of such reference asset. In addition, in the event of the insolvency
of the counterparty, the Company may be treated as a general creditor of such counterparty, and will not have any claim with respect
to the reference asset.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
Currency
Risk
Although
the Company primarily makes investments denominated in U.S. dollars, the Company may make investments denominated in other currencies.
The Company’s investments denominated in currencies other than U.S. dollars will be subject to the risk that the value of such
currency will decrease in relation to the U.S. dollar. The Company may or may not hedge currency risk.
Hedging
Risk
Hedging
transactions seeking to reduce risks may result in poorer overall performance than if the Company had not engaged in such hedging transactions.
Additionally, such transactions may not fully hedge the Company’s risks.
Reinvestment
Risk
CLOs
will typically generate cash from asset repayments and sales that may be reinvested in substitute assets, subject to compliance with
applicable investment tests. If the CLO collateral manager causes the CLO to purchase substitute assets at a lower yield than those initially
acquired or sale proceeds are maintained temporarily in cash, it would reduce the excess interest-related cash flow, thereby having a
negative effect on the fair value of the Company’s assets and the market value of the Company’s securities. In addition,
the reinvestment period for a CLO may terminate early, which would cause the holders of the CLO’s securities to receive principal
payments earlier than anticipated. There can be no assurance that the Company will be able to reinvest such amounts in an alternative
investment that provides a comparable return relative to the credit risk assumed.
Interest
Rate Risk
The
price of certain of the Company’s investments may be significantly affected by changes in interest rates, including recent increases
in interest rates. Although senior secured loans are generally floating rate instruments, the Company’s investments in senior secured
loans through investments in junior equity and debt tranches of CLOs are sensitive to interest rate levels and volatility. For example,
because the senior secured loans constituting the underlying collateral of CLOs typically pay a floating rate of interest, a reduction
in interest rates would generally result in a reduction in the residual payments made to the Company as a CLO equity holder (as well
as the cash flow the Company receives on the Company’s CLO debt investments and other floating rate investments). Further, in the
event of a significant rising interest rate environment and/or economic downturn, loan defaults may increase and result in credit losses
that may adversely affect the Company’s cash flow, fair value of the Company’s assets and operating results. Because CLOs
generally issue debt on a floating rate basis, an increase in the relevant benchmark index will increase the financing costs of CLOs.
Refinancing
Risk
If
the Company incurs debt financing and subsequently refinances such debt, the replacement debt may be at a higher cost and on less favorable
terms and conditions. If the Company fails to extend, refinance or replace such debt financings prior to their maturity on commercially
reasonable terms, the Company’s liquidity will be lower than it would have been with the benefit of such financings, which would
limit the Company’s ability to grow, and holders of the Company’s common stock would not benefit from the potential for increased
returns on equity that incurring leverage creates.
Tax
Risk
If
the Company fails to qualify for tax treatment as a RIC under Subchapter M of the Code for any reason, or otherwise becomes subject to
corporate income tax, the resulting corporate taxes (and any related penalties) could substantially reduce the Company’s net assets,
the amount of income available for distributions to the Company’s stockholders, and the amount of income available for payment
of the Company’s other liabilities.
Derivatives
Risk
Derivative
instruments in which the Company may invest may be volatile and involve various risks different from, and in certain cases greater than,
the risks presented by other instruments. The primary risks related to derivative transactions include counterparty, correlation, liquidity,
leverage, volatility, over-the-counter trading, operational and legal risks. In addition, a small investment in derivatives could have
a large potential impact on the Company’s
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
performance,
effecting a form of investment leverage on the Company’s portfolio. In certain types of derivative transactions, the Company could
lose the entire amount of the Company’s investment; in other types of derivative transactions the potential loss is theoretically
unlimited.
Counterparty
Risk
The
Company may be exposed to counterparty risk, which could make it difficult for the Company or the issuers in which the Company invests
to collect on obligations, thereby resulting in potentially significant losses.
Price
Risk
Investors
who buy shares at different times will likely pay different prices.
Global
Risks
Due
to highly interconnected global economies and financial markets, the value of the Company’s securities and its underlying investments
may go up or down in response to governmental actions and/or general economic conditions throughout the world. Events such as war, military
conflict, acts of terrorism, social unrest, natural disasters, recessions, inflation, rapid interest rate changes, supply chain disruptions,
sanctions, the spread of infectious illness or other public health threats could also significantly impact the Company and its investments.
Banking
Risk
The
possibility of future bank failures poses risks of reduced financial market liquidity at clearing, cash management and other custodial
financial institutions. The failure of banks which hold cash on behalf of the Company, the Company's underlying obligors, the collateral
managers of the CLOs in which the Company invests (or managers of other securitized or pooled vehicles in which the Company invests),
or the Company’s service providers could adversely affect the Company’s ability to pursue its investment strategies and objectives.
For example, if an underlying obligor has a commercial relationship with a bank that has failed or is otherwise distressed, such company
may experience delays or other disruptions in meeting its obligations and consummating business transactions. Additionally, if a collateral
manager has a commercial relationship with a distressed bank, the manager may experience issues conducting its operations or consummating
transactions on behalf of the CLOs it manages, which could negatively affect the performance of such CLOs (and, therefore, the performance
of the Company).
The
Company enters into forward currency contracts to manage the Company’s exposure to the foreign currencies in which some of the
Company’s investments are denominated. Risks associated with forward currency contracts are the inability of counterparties to
meet the terms of their respective contracts and movements in fair value and exchange rates.
Volume
of Derivative Activities
The
Company considers the notional amounts as of March 31, 2024, categorized by primary underlying risk, to be representative of the volume
of its derivative activity during the three months ended March 31, 2024:
Primary
Underlying Risk | |
Long
Exposure | | |
Short
exposure | |
| |
Notional
amounts | | |
Notional
amounts | |
Foreign
Exchange Risk | |
| | | |
| | |
Forward
Currency Contracts | |
$ | 46,936,812 | | |
$ | 5,668,679 | |
Effect
of Derivatives on the Consolidated Statement of Assets and Liabilities and Consolidated Statement of Operations
The
following table presents the fair value amounts of derivative contracts included in the Consolidated Statement of Assets and Liabilities,
categorized by type of contract, as of March 31, 2024. Balances are presented on a gross
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
basis,
before application of the effect of counterparty and collateral netting. The following table also identifies the realized and unrealized
gain and loss amounts included in the Consolidated Statement of Operations, categorized by type of contract, for the three months ended
March 31, 2024.
Type
of Contracts | |
Derivative
Assets | | |
Derivative
Liabilities | | |
Realized
Gain (Loss) | | |
Unrealized
Gain (Loss) | |
Forward
Currency Contracts | |
$ | 465,817 | | |
$ | (33,348 | ) | |
$ | (574,832 | ) | |
$ | 1,806,365 | |
Offsetting
of Assets and Liabilities
The
Company is subject to master netting agreements with one counterparty. These agreements govern the terms of certain transactions and
reduce the counterparty risk associated with relevant transactions by specifying offsetting mechanisms and collateral posting arrangements
at prearranged exposure levels.
The
following table presents potential effects of netting arrangements for derivative contracts presented in the Consolidated Statement of
Assets and Liabilities, by counterparty, as of March 31, 2024:
| |
Presented
on the Consolidated Statement of Assets and Liabilities | | |
Collateral
(Received) | | |
| |
Type
of Contracts | |
Gross
Value of Assets | | |
Gross
Value of Liabilities | | |
Pledged | | |
Net
Amount | |
Counterparty
1 | |
$ | 465,817 | | |
$ | (33,348 | ) | |
$ | 1,250,000 | | |
$ | 432,469 | |
| 5. | RELATED
PARTY TRANSACTIONS |
Investment
Adviser
On
June 6, 2014, the Company entered into an investment advisory agreement with the Adviser, which was amended and restated on May 16, 2017
(the “Advisory Agreement”). Pursuant to the terms of the Advisory Agreement, the Company pays the Adviser a management fee
and an incentive fee for its services.
The
management fee is calculated and payable quarterly, in arrears, at an annual rate equal to 1.75% of the Company’s “total
equity base.” “Total equity base” means the net asset value attributable to the common stock and the paid-in, or stated,
capital of the Preferred Stock. The management fee is calculated based on the “total equity base” at the end of the most
recently completed calendar quarter end, and, with respect to any common stock or preferred stock issued or repurchased during such quarter,
is adjusted to reflect the number of days during such quarter that such common stock and/or preferred stock, if any, was outstanding.
The management fee for any partial quarter is pro-rated (based on the number of days actually elapsed at the end of such partial quarter
relative to the total number of days in such calendar quarter). The Company was charged management fees of $3.8 million for the three
months ended March 31, 2024, and has a payable balance of $3.8 million as of March 31, 2024.
The
incentive fee is calculated and payable quarterly, in arrears, based on the pre-incentive fee net investment income (the “PNII”)
of the Company for the immediately preceding calendar quarter. For this purpose, PNII means interest income, dividend income and any
other income (including any other fees, such as commitment, origination, structuring, diligence and consulting fees or other fees the
Company receives from an investment) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter
(including the base management fee, expenses payable under the Administration Agreement (as defined below) and any interest expense and
distributions paid on any issued and outstanding preferred stock or debt, but excluding the incentive fee). PNII includes, in the case
of investments with a deferred interest feature (such as original issue discount, debt instruments with payment in-kind interest and
zero coupon securities), accrued income that the Company has not yet received in cash. PNII does not include any realized or unrealized
capital gains or realized or unrealized capital losses. The portion of incentive fee that is attributable to deferred interest (such
as payment-in-kind interest or original issue discount) will be paid to the Adviser, without interest, only if and to the extent the
Company actually receives such deferred interest in cash, and any accrual thereof will be reversed if and to the extent such interest
is reversed in connection with any write-off or similar treatment of the investment giving rise to any deferred
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
interest
accrual.
PNII,
expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter,
is compared to a hurdle rate of 2.00% per quarter. The Company pays the Adviser an incentive fee with respect to the Company’s
PNII in each calendar quarter as follows: (1) no incentive fee in any calendar quarter in which the Company’s PNII does not exceed
the hurdle rate of 2.00%; (2) 100% of the Company’s PNII with respect to that portion of such PNII, if any, exceeding the hurdle
rate but equal to or less than 2.50% in any calendar quarter; and (3) 20% of the amount of the Company’s PNII, if any, exceeding
2.50% in any calendar quarter. The Company incurred incentive fees of $5.7 million for the three months ended March 31, 2024, and has
a payable balance of $6.8 million as of March 31, 2024.
Administrator
Effective
June 6, 2014, the Company entered into an administration agreement (the “Administration Agreement”) with the Administrator,
an affiliate of the Adviser. Pursuant to the Administration Agreement, the Administrator performs, or arranges for the performance
of, the Company’s required administrative services, which include being responsible for the financial records which the Company
is required to maintain and preparing reports which are disseminated to the Company’s stockholders. In addition, the Administrator
provides the Company with accounting services, assists the Company in determining and publishing its net asset value, oversees the preparation
and filing of the Company’s tax returns, monitors the Company’s compliance with tax laws and regulations, and prepares and
assists the Company with any audits by an independent public accounting firm of the consolidated financial statements. The Administrator
is also responsible for printing and disseminating reports to the Company’s stockholders and maintaining the Company’s website,
providing support to investor relations, generally overseeing the payment of the Company’s expenses and the performance of administrative
and professional services rendered to the Company by others, and providing such other administrative services as the Company may from
time to time designate.
Payments
under the Administration Agreement are equal to an amount based upon the Company’s allocable portion of the Administrator’s
overhead in performing its obligations under the Administration Agreement, including rent, the fees and expenses associated with performing
compliance functions and the Company’s allocable portion of the compensation of the Company’s chief compliance officer, chief
financial officer, chief operating officer and the Company’s allocable portion of the compensation of any related support staff.
The Company’s allocable portion of such compensation is based on an allocation of the time spent on the Company relative
to other matters. To the extent the Administrator outsources any of its functions, the Company pays the fees on a direct basis, without
profit to the Administrator. Certain accounting and other administrative services have been delegated by the Administrator to SS&C
Technologies, Inc. (“SS&C”). The Administration Agreement may be terminated by the Company without penalty upon not less
than sixty days’ written notice to the Administrator and by the Administrator upon not less than ninety days’ written notice
to the Company. The Administration Agreement is approved by the Board, including by a majority of the Company’s independent directors,
on an annual basis.
For
the three months ended March 31, 2024, the Company was charged a total of $0.4 million in administration fees consisting of $0.2 million
and $0.1 million, relating to services provided by the Administrator and SS&C, respectively, which are included in the Consolidated
Statement of Operations and, of which $0.4 million was payable as of March 31, 2024.
Affiliated
Ownership
As
of March 31, 2024, the Adviser and senior investment team held an aggregate of 1.8% of the Company’s common stock and 0.1% of the
Series C Term Preferred Stock. This represented 1.7% of the total outstanding voting stock of the Company as of March 31, 2024. Additionally,
the senior investment team held an aggregate of 0.4% of the Series 2028 Notes, as of March 31, 2024.
Exemptive
Relief
On
March 17, 2015, the SEC issued an order granting the Company exemptive relief to co-invest in certain
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
negotiated
investments with affiliated investment funds managed by the Adviser, subject to certain conditions.
Due
to Affiliates
Due
to affiliates reported in the Consolidated Statement of Assets and Liabilities represents amounts payable to the Adviser for expenses
paid on behalf of the Company.
Affiliated
Investments
The
Company has investments that are considered affiliated investments as defined under the 1940 act, which represents investments in which
the Company owns 5% or more of the outstanding voting securities under common ownership or control. The following investments were considered
affiliated investments, for which the Company’s ownership alongside other funds also managed by the Adviser exceeds 5% or more
of outstanding voting securities as of March 31, 2024.
Issuer | |
Investment
Description | |
Interest
Income | | |
Dividend
Income | | |
Net
unrealized
appreciation
(depreciation) on
Investments,
foreign
currency and
cash
equivalents | | |
Fair
Value | | |
Funded
Commitment | | |
Unfunded
Commitment | |
Delta
Leasing SPV III, LLC | |
Notes,
Delayed Draw, 13.00% (due 07/18/2030) | |
$ | 135,552 | | |
$ | - | | |
$ | (885 | ) | |
$ | 4,705,847 | | |
$ | 4,705,847 | | |
$ | 6,332,503 | |
Delta
Financial Holdings LLC | |
Preferred
Units | |
| - | | |
| - | | |
| (6 | ) | |
| 251,882 | | |
| 251,801 | | |
| N/A
| |
Delta
Financial Holdings LLC | |
Common
Units | |
| - | | |
| - | | |
| - | | |
| 574 | | |
| 1,147 | | |
| N/A
| |
Delta
Leasing SPV III, LLC | |
Common
Equity | |
| - | | |
| - | | |
| - | | |
| 9 | | |
| 18 | | |
| N/A
| |
Senior
Credit Corp 2022 LLC | |
Senior
Unsecured, 8.50% (due 12/05/2028) | |
| 98,912 | | |
| - | | |
| - | | |
| 5,019,722 | | |
| 5,019,722 | | |
| 2,995,278 | |
Senior
Credit Corp 2022 LLC | |
Common
Stock | |
| - | | |
| 78,059 | | |
| - | | |
| 2,365,162 | | |
| 2,151,309 | | |
| 1,283,691 | |
| |
Total | |
$ | 234,464 | | |
$ | 78,059 | | |
$ | (891 | ) | |
$ | 12,343,196 | | |
$ | 12,129,844 | | |
$ | 10,611,472 | |
As
of December 31, 2023, there were 100,000,000 shares of common stock authorized, of which 76,948,138 shares were issued and outstanding.
At
a special meeting of stockholders held on February 13, 2024, stockholders approved an amendment to the Company's Certificate of Incorporation
to increase the number of authorized shares of the Company’s common stock from 100,000,000 to 200,000,000.
On
June 8, 2023, the Company filed a shelf registration with 100,000,000 shares of common stock authorized.
Pursuant
to a prospectus supplement filed with the SEC on June 12, 2023, the Company launched an ATM offering to sell up to $225 million aggregate
amount of its common stock.
Pursuant
to a prospectus supplement filed with the SEC on February 24, 2023, the Company launched a new ATM offering to sell up to $500 million
aggregate amount of its common stock. As a result of the new ATM offering, $18,748 in remaining prepaid expense balance associated with
the previous ATM program was accelerated into expense and reflected in professional fees in the Consolidated Statement of Operations.
For
the three months ended March 31, 2024, the Company sold 7,925,027 shares of its common stock, pursuant to the ATM offerings for total
net proceeds to the Company of $77.6 million. In connection with such sales, the Company paid a total of $1.6 million in sales agent
commissions.
For
the three months ended March 31, 2024, 428,727 shares of common stock were issued in connection with the DRIP for total net proceeds
to the Company of $4.1 million.
As
of March 31, 2024, there were 200,000,000 shares of common stock authorized, of which 85,301,892 shares were issued and outstanding.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
As
of March 31, 2024, there were 20,000,000 shares of preferred stock authorized, par value $0.001 per share, of which 2,172,553 shares
of Series C Term Preferred Stock were issued and outstanding, 1,473,782 shares of Series D Preferred Stock were issued and outstanding
and 2,056,772 shares of Series F Term Preferred Stock were issued and outstanding.
Except
where otherwise stated in the 1940 Act or the Company’s certificate of incorporation, each holder of Preferred Stock will be entitled
to one vote for each share of preferred stock held on each matter submitted to a vote of the Company’s stockholders. The Company’s
preferred stockholders and common stockholders will vote together as a single class on all matters submitted to the Company’s stockholders.
Additionally, the Company’s preferred stockholders will have the right to elect two Preferred Directors at all times, while the
Company’s preferred stockholders and common stockholders, voting together as a single class, will elect the remaining members of
the Board.
Mandatorily
Redeemable Preferred Stock
On
January 18, 2024, the Company closed an underwritten public offering of 1,400,000 shares of its Series F Term Preferred Stock, resulting
in net proceeds to the Company of $33.6 million after payment of underwriting discounts and commissions of $1.1 million and offering
expenses of $0.3 million.
Subsequently,
on January 24, 2024, the Company closed a follow on offering of 400,000 shares of its Series F Term Preferred Stock, resulting in net
proceeds to the Company of $9.6 million after payment of underwriting discounts and commissions of $0.3 million and offering expenses
of $0.1 million.
Subsequently,
on January 31, 2024, the underwriters purchased an additional 160,000 shares of its Series F Term Preferred Stock pursuant to the underwriters’
overallotment option, which resulted in additional net proceeds to the Company of $3.9 million after payment of underwriting discounts
and commissions of $0.1 million.
The
Company has accounted for its Term Preferred Stock as a liability under ASC 480 due to their mandatory redemption requirements.
The
Company is required to redeem all outstanding shares of the Series C Term Preferred Stock and Series F Term Preferred Stock on June 30,
2031 and January 31, 2029, respectively, at a redemption price of $25 per share, plus accrued but unpaid dividends, if any. At any time
on or after June 16, 2024 and January 18, 2026, the Company may, at its sole option, redeem the outstanding shares of the Series C Term
Preferred Stock and Series F Term Preferred Stock, respectively.
The
Company has elected the FVO under ASC 825 for its Term Preferred Stock. Accordingly, the Term Preferred Stock are measured at fair value.
The
estimated change in fair value of the Series C Term Preferred Stock and Series F Term Preferred Stock attributable to market risk for
the three months ended March 31, 2024 is $0.7 million and $0.3 million, respectively, which is recorded as unrealized (appreciation)
depreciation on liabilities at fair value under the FVO on the Consolidated Statement of Operations.
The
estimated change in fair value of the Series C Term Preferred Stock and Series F Term Preferred Stock attributable to instrument-specific
credit risk for the three months ended March 31, 2024 is ($1.4) million and ($0.2) million respectively, which is recorded as unrealized
(appreciation) depreciation on liabilities at fair value under the FVO on the Consolidated Statement of Comprehensive Income. The Company
defines the change in fair value attributable to instrument-specific credit risk as the excess of the total change in fair value over
the change in fair value attributable to changes in a base market rate, such as a United States treasury bond index with a similar maturity
to the instrument being valued.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
Preferred
Stock
The
Company has accounted for its Series D Preferred Stock as temporary equity under ASC 480. Accordingly, the Series D Preferred
Stock is reflected in the Consolidated Statement of Assets and Liabilities at its $25 per share liquidation preference (the “Series
D Liquidation Preference”), net of deferred issuance costs. The deferred issuance costs will remain unamortized until it is probable
the Series D Preferred Stock will be redeemed.
At
any time on or after November 29, 2026, the Company may, at its sole option, redeem the outstanding shares of the Series D Preferred
Stock at the Series D Liquidation Preference, plus accrued but unpaid dividends.
Convertible
Perpetual Preferred Stock
Pursuant
to a prospectus supplement filed with the SEC on March 22, 2024, the Company launched an offering to sell up to 4,000,000 shares of 7.00%
Series AA Convertible and Perpetual Preferred Stock (“Series AA Preferred Stock”) and 7.00% Series AB Convertible and Perpetual
Preferred Stock (“Series AB Preferred Stock” and collectively with the Series AA Preferred Stock, the “Convertible
Perpetual Preferred Stock”) with an aggregate liquidation preference of up to $100 million.
As
of March 31, 2024, no Convertible Perpetual Preferred Stock is issued and outstanding.
ATM
Program
Pursuant
to a prospectus supplement filed with the SEC on June 12, 2023, the Company launched an ATM offering to sell up to 800,000 shares of
Series C Term Preferred Stock and up to 200,000 shares of Series D Preferred Stock with an aggregate liquidation preference of $20.0
million and $5.0 million, respectively.
Pursuant
to a prospectus supplement filed with the SEC on January 31, 2024, the Company updated the ATM offering to allow the Company to sell
up to up to 1,000,000 shares of Series D Preferred Stock with an aggregate liquidation preference of $25.0 million, inclusive of any
shares of such preferred stock previously sold pursuant to the ATM offering.
Pursuant
to a prospectus supplement filed with the SEC on February 23, 2024, the Company launched a new ATM offering to sell up to 800,000 shares
of Series C Term Preferred Stock, up to 1,000,000 shares of Series D Preferred Stock and up to 1,000,000 shares of Series F Term Preferred
Stock with an aggregate liquidation preference of $20.0 million, $25.0 million and $25.0 million, respectively. For the three months
ended March 31, 2024, the Company sold 317,387 shares of its Series D Preferred Stock and 96,772 shares of its Series F Term Preferred
Stock, pursuant to the ATM offerings, for total proceeds to the Company of $8.6 million. In connection with such sales, the Company paid
a total of $0.2 million in sales agent commissions.
See
Note 9 “Asset Coverage” for further discussion on the Company’s calculation of asset coverage with respect to its Preferred
Stock.
As
of March 31, 2024, there were $32.4 million in aggregate principal amount of Series 2028 Notes, $93.3 million in aggregate principal
amount of Series 2029 Notes, and $44.9 million in aggregate principal amount of Series 2031 Notes issued and outstanding.
The
Unsecured Notes were issued in minimum denominations of $25 and integral multiples of $25 in excess thereof.
The
Series 2028 Notes, Series 2029 Notes and Series 2031 Notes will mature on April 30, 2028, January 31, 2029 and March 31, 2031, respectively.
100% of the aggregate principal amount for the Unsecured Notes are payable at maturity. The Company may redeem the Series 2028 Notes
in whole or in part at any time or from time to time at the Company’s option. The Company may redeem the Series 2029 Notes and
the Series 2031 Notes in whole or in part at any time or from time to time at the Company’s option, on or after January 31, 2025
and
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
March
29, 2024, respectively.
The
Company has accounted for its Unsecured Notes utilizing the FVO under ASC 825.
The
estimated change in fair value of the Series 2028 Notes, Series 2029 Notes and Series 2031 Notes attributable to market risk for the
three months ended March 31, 2024 is $0.4 million, $1.0 million and $0.6 million, respectively, which is recorded as unrealized (appreciation)
depreciation on liabilities at fair value under the FVO on the Consolidated Statement of Operations.
The
estimated change in fair value of the Series 2028 Notes, Series 2029 Notes and Series 2031 Notes attributable to instrument-specific
credit risk for the three months ended March 31, 2024 is ($0.8) million, ($1.8) million and ($0.3) million, respectively, which is recorded
as unrealized (appreciation) depreciation on liabilities at fair value under the FVO on the Consolidated Statement of Comprehensive Income.
The Company defines the change in fair value attributable to instrument-specific credit risk as the excess of the total change in fair
value over the change in fair value attributable to changes in a base market rate, such as a United States treasury bond index with a
similar maturity to the instrument being valued.
The
Company has engaged a broker-dealer to repurchase opportunistically, on the Company’s behalf, a portion of the Company’s
Unsecured Notes through open market transactions. The price and other terms of any such repurchases will depend on prevailing market
conditions, the Company’s liquidity and other factors. Depending on market conditions, the amount of Unsecured Note repurchases
may be material and may continue through year-end 2024; however, the Company may reduce or extend this timeframe in its discretion and
without notice. Any Unsecured Note repurchases will comply with the provisions of the 1940 Act and the Securities Exchange Act of 1934.
Upon repurchase, the Company intends to retire the Unsecured Notes reducing the Company’s outstanding leverage. The Company did
not repurchase Unsecured Notes for the three months ended March 31, 2024.
See
Note 9 “Asset Coverage” for further discussion on the Company’s calculation of asset coverage with respect to its Unsecured
Notes.
Under
the provisions of the 1940 Act, the Company is permitted to issue senior securities, including debt securities and preferred stock, and
borrow from banks or other financial institutions, provided that the Company satisfies certain asset coverage requirements.
With
respect to senior securities that are stocks, such as the Preferred Stock, the Company is required to have asset coverage of at least
200%, as measured at the time of issuance of any such senior securities that are stocks and calculated as the ratio of the Company’s
total consolidated assets, less all liabilities and indebtedness not represented by senior securities, over the aggregate amount of the
Company’s outstanding senior securities representing indebtedness plus the aggregate liquidation preference of any outstanding
shares of senior securities that are stocks.
With
respect to senior securities representing indebtedness, such as the Unsecured Notes or any bank borrowings (other than temporary borrowings
as defined under the 1940 Act), the Company is required to have asset coverage of at least 300%, as measured at the time of borrowing
and calculated as the ratio of the Company’s total consolidated assets, less all liabilities and indebtedness not represented by
senior securities, over the aggregate amount of the Company’s outstanding senior securities representing indebtedness.
If
the Company’s asset coverage declines below 300% (or 200%, as applicable), the Company would be prohibited under the 1940 Act from
incurring additional debt or issuing additional preferred stock and from declaring certain distributions to its stockholders. In addition,
the terms of the Preferred Stock and the Unsecured Notes require the Company to redeem shares of the Preferred Stock and/or a certain
principal amount of the Unsecured Notes, if
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
such
failure to maintain the applicable asset coverage is not cured by a certain date.
The
following table summarizes the Company’s asset coverage with respect to its Preferred Stock and Unsecured Notes, as of March 31,
2024, and as of December 31, 2023:
Asset
Coverage of Preferred Stock and Debt Securities
| |
As
of | | |
As
of | |
| |
March
31, 2024 | | |
December
31, 2023 | |
Total
assets | |
$ | 1,095,291,001 | | |
$ | 954,493,581 | |
Less
liabilities and indebtedness not represented by senior securities | |
| (22,450,420 | ) | |
| (14,067,352 | ) |
Net
total assets and liabilities | |
$ | 1,072,840,581 | | |
$ | 940,426,229 | |
| |
| | | |
| | |
Preferred
Stock | |
$ | 142,577,675 | | |
$ | 83,223,700 | |
Unsecured
Notes | |
| 170,523,800 | | |
| 170,523,800 | |
| |
$ | 313,101,475 | | |
$ | 253,747,500 | |
| |
| | | |
| | |
Asset
coverage of preferred stock (1) | |
| 343 | % | |
| 371 | % |
Asset
coverage of debt securities (2) | |
| 629 | % | |
| 551 | % |
(1)
The asset coverage of preferred stock is calculated in accordance with section 18(h) of the 1940 Act, as generally described above.
(2)
The asset coverage ratio of debt securities is calculated in accordance with section 18(h) of the 1940 Act, as generally described above.
| 10. | COMMITMENTS
AND CONTINGENCIES |
The
Company is not currently subject to any material legal proceedings. From time to time, the Company may be a party to certain legal proceedings
in the ordinary course of business, including proceedings relating to the enforcement of the Company’s rights under contracts.
While the outcome of these legal proceedings cannot be predicted with certainty, the Company does not expect these proceedings will have
a material effect upon its financial condition or results of operations.
As
of March 31, 2024, the Company had total unfunded commitments of $19.9 million arising from certain ABS, CFO debt, CFO equity, common
stock and corporate bond investments.
Under
the Company’s organizational documents, its officers and directors are indemnified against certain liabilities arising out of the
performance of their duties to the Company. In addition, during the normal course of business, the Company enters into contracts containing
a variety of representations which provide general indemnifications. The Company’s maximum exposure under these agreements cannot
be known; however, the Company expects any risk of loss to be remote.
| 12. | RECENT
ACCOUNTING PRONOUNCEMENTS |
In
June 2022, the FASB issued Accounting Standards Update No. 2022-03 (“ASU 2022-03”) related to FASB ASC Topic 820 Fair
Value Measurements - Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. This change prohibits
entities from taking into account contractual restrictions on the sale of equity securities when estimating fair value and introduces
required disclosures for such transactions. The Company has fully adopted the provisions of ASU 2022-03, which did not have a material
impact on the Company’s consolidated financial statements and related disclosures.
Eagle
Point Credit Company Inc. & Subsidiaries
Notes
to Consolidated Financial Statements
March
31, 2024
(Unaudited)
On
April 30, 2024, the Company paid a distribution of $0.16 per share on its common stock, consisting of a regular distribution of $0.14
per share and a supplemental distribution of $0.02 per share, to holders of record as of April 10, 2024. Additionally, on May 15, 2024,
the Company declared three separate distributions of $0.16 per share on its common stock, with each distribution consisting of a regular
distribution of $0.14 per share and a supplemental distribution of $0.02 per share. The distributions are payable on each of July 31,
2024, August 30, 2024 and September 30, 2024 to holders of record as of July 11, 2024, August 12, 2024 and September 10, 2024, respectively.
On
April 30, 2024, the Company paid a monthly distribution of $0.135417 per share of its Series C Term Preferred Stock, a monthly distribution
of $0.140625 per share of its Series D Preferred Stock and a monthly distribution of $0.166667 per share of its Series F Term Preferred
Stock to holders of record as of April 10, 2024. Additionally, on May 15, 2024, the Company declared three separate distributions of
$0.135417, $0.140625 and $0.166667 per share of its Series C Term Preferred Stock, Series D Preferred Stock, and Series F Term Preferred
Stock respectively. The distributions are payable on each of July 31, 2024, August 30, 2024 and September 30, 2024 to holders of record
as of July 11, 2024, August 12, 2024 and September 10, 2024, respectively.
Additionally,
on May 15, 2024, the Company declared three separate distributions of $0.145834 per share of its Convertible Perpetual Preferred Stock.
The distributions are payable on each of July 31, 2024, August 30, 2024 and September 30, 2024 to holders of record as of July 11, 2024,
August 12, 2024 and September 10, 2024, respectively.
For
the period from April 1, 2024 to April 30, 2024, the Company sold 3,138,930 shares of its common stock, pursuant to the ATM offering,
for total net proceeds to the Company of approximately $30.9 million. In connection with such sales, the Company paid a total of $0.6
million in sales agent commissions.
For
the period from April 1, 2024 to April 30, 2024, the Company sold 47,281 shares of its Series D Preferred Stock and 17,774 shares of
Series F Term Preferred Stock, pursuant to the ATM offering, for total net proceeds to the Company of approximately $1.3 million. In
connection with such sales, the Company paid a total of $27,503 in sales agent commissions.
Management’s
unaudited estimate of the range of the Company’s NAV per common share as of April 30, 2024 was $8.94 to $9.04.
Management
of the Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date of release
of this report. Management has determined there are no events in addition to those described above which would require adjustment to
or disclosure in the consolidated financial statements and related notes through the date of release of this report.
Eagle
Point Credit Company Inc. Subsidiaries
Consolidated
Financial Highlights
(Unaudited)
Per
Share Data |
|
For
the three
months ended
March 31,
2024 |
|
|
For
the year
ended
December 31,
2023 |
|
|
For
the year
ended
December 31,
2022 |
|
|
For
the year
ended
December 31,
2021 |
|
|
For
the year
ended
December 31,
2020 |
|
|
For
the year
ended
December 31,
2019 |
|
Net
asset value at beginning of period |
|
$ |
9.21 |
|
|
$ |
9.07 |
|
|
$ |
13.39 |
|
|
$ |
11.18 |
|
|
$ |
10.59 |
|
|
$ |
12.40 |
|
Net
investment income (1) (2) |
|
|
0.29 |
|
|
|
1.36 |
|
|
|
1.53 |
|
|
|
1.31 |
|
|
|
1.15 |
|
|
|
1.34 |
|
6.75%
Series D Preferred Stock distributions (2) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
realized gain (loss) and change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments,
foreign currency and cash equivalents (2) (3) |
|
|
0.09 |
|
|
|
0.48 |
|
|
|
(4.39 |
) |
|
|
2.65 |
|
|
|
0.49 |
|
|
|
(1.29 |
) |
Forward
currency contracts (2) |
|
|
0.02 |
|
|
|
(0.02 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
change in unrealized (appreciation) depreciation on liabilities at fair value under the fair value option (2) |
|
|
0.04 |
|
|
|
(0.05 |
) |
|
|
0.69 |
|
|
|
(0.02 |
) |
|
|
0.01 |
|
|
|
(0.08 |
) |
Net
income (loss) and net increase (decrease) in net assets resulting from operations (2) |
|
|
0.43 |
|
|
|
1.74 |
|
|
|
(2.21 |
) |
|
|
3.94 |
|
|
|
1.65 |
|
|
|
(0.03 |
) |
Common
stock distributions from net investment income (4) |
|
|
(0.48 |
) |
|
|
(1.86 |
) |
|
|
(2.37 |
) |
|
|
(1.64 |
) |
|
|
(0.26 |
) |
|
|
(1.40 |
) |
Common
stock distributions from net realized gains on investments (4) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common
stock distributions from tax return of capital (4) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1.06 |
) |
|
|
(1.00 |
) |
Total
common stock distributions declared to stockholders (4) |
|
|
(0.48 |
) |
|
|
(1.86 |
) |
|
|
(2.37 |
) |
|
|
(1.64 |
) |
|
|
(1.32 |
) |
|
|
(2.40 |
) |
Common
stock distributions based on weighted average shares impact (5) |
|
|
- |
|
|
|
- |
|
|
|
(0.13 |
) |
|
|
(0.04 |
) |
|
|
0.02 |
|
|
|
- |
|
Total
common stock distributions |
|
|
(0.48 |
) |
|
|
(1.86 |
) |
|
|
(2.50 |
) |
|
|
(1.68 |
) |
|
|
(1.30 |
) |
|
|
(2.40 |
) |
Effect
of other comprehensive income (2) (6) |
|
|
(0.06 |
) |
|
|
(0.09 |
) |
|
|
0.15 |
|
|
|
(0.08 |
) |
|
|
0.05 |
|
|
|
(0.10 |
) |
Effect
of paid-in capital contribution (2) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Effect
of shares issued (7) |
|
|
0.08 |
|
|
|
0.39 |
|
|
|
0.32 |
|
|
|
0.06 |
|
|
|
0.20 |
|
|
|
0.77 |
|
Effect
of underwriting discounts, commissions and offering expenses associated with shares issued (7) |
|
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.08 |
) |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
|
(0.07 |
) |
Effect
of shares issued in accordance with the Company's dividend reinvestment plan |
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
0.02 |
|
Net
effect of shares issued |
|
|
0.06 |
|
|
|
0.35 |
|
|
|
0.24 |
|
|
|
0.03 |
|
|
|
0.19 |
|
|
|
0.72 |
|
Net
asset value at end of period |
|
$ |
9.16 |
|
|
$ |
9.21 |
|
|
$ |
9.07 |
|
|
$ |
13.39 |
|
|
$ |
11.18 |
|
|
$ |
10.59 |
|
Per
share market value at beginning of period |
|
$ |
9.50 |
|
|
$ |
10.12 |
|
|
$ |
14.00 |
|
|
$ |
10.09 |
|
|
$ |
14.61 |
|
|
$ |
14.21 |
|
Per
share market value at end of period |
|
$ |
10.11 |
|
|
$ |
9.50 |
|
|
$ |
10.12 |
|
|
$ |
14.00 |
|
|
$ |
10.09 |
|
|
$ |
14.61 |
|
Total
return (8) |
|
|
11.84 |
% |
|
|
18.92 |
% |
|
|
-11.60 |
% |
|
|
51.60 |
% |
|
|
-19.76 |
% |
|
|
20.15 |
% |
Shares
of common stock outstanding at end of period |
|
|
85,301,892 |
|
|
|
76,948,138 |
|
|
|
55,045,981 |
|
|
|
37,526,810 |
|
|
|
32,354,890 |
|
|
|
28,632,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
$ |
781,475,470 |
|
|
$ |
708,343,567 |
|
|
$ |
499,265,764 |
|
|
$ |
502,304,335 |
|
|
$ |
361,660,688 |
|
|
$ |
303,272,860 |
|
Ratio
of expenses to average net assets (9) (10) |
|
|
8.31 |
% |
|
|
8.51 |
% |
|
|
9.94 |
% |
|
|
9.71 |
% |
|
|
10.56 |
% |
|
|
10.00 |
% |
Ratio
of net investment income to average net assets (9) (10) |
|
|
13.34 |
% |
|
|
14.73 |
% |
|
|
13.80 |
% |
|
|
9.90 |
% |
|
|
13.44 |
% |
|
|
10.64 |
% |
Portfolio
turnover rate (11) |
|
|
7.21 |
% |
|
|
19.79 |
% |
|
|
30.19 |
% |
|
|
51.56 |
% |
|
|
52.80 |
% |
|
|
34.83 |
% |
Asset
coverage of preferred stock |
|
|
343 |
% |
|
|
371 |
% |
|
|
286 |
% |
|
|
313 |
% |
|
|
354 |
% |
|
|
279 |
% |
Asset
coverage of debt securities |
|
|
629 |
% |
|
|
551 |
% |
|
|
423 |
% |
|
|
534 |
% |
|
|
534 |
% |
|
|
476 |
% |
See
accompanying footnotes to the financial highlights on the following page.
Eagle
Point Credit Company Inc. Subsidiaries
Consolidated
Financial Highlights
(Unaudited)
Per
Share Data |
|
For
the year
ended
December 31,
2018 |
|
|
For
the year
ended
December 31,
2017 |
|
|
For
the year
ended
December 31,
2016 |
|
|
For
the year
ended
December 31,
2015 |
|
|
For
the period
from October 6
2014 to
December 31,
2014 |
|
Net
asset value at beginning of period |
|
$ |
16.77 |
|
|
$ |
17.48 |
|
|
$ |
13.72 |
|
|
$ |
19.08 |
|
|
$ |
20.00 |
|
Net
investment income (1) (2) |
|
|
1.59 |
|
|
|
1.88 |
|
|
|
2.14 |
|
|
|
1.89 |
|
|
|
0.32 |
|
6.75%
Series D Preferred Stock distributions (2) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
realized gain (loss) and change in unrealized appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments,
foreign currency and cash equivalents (2) (3) |
|
|
(3.92 |
) |
|
|
(0.12 |
) |
|
|
3.88 |
|
|
|
(4.85 |
) |
|
|
(0.62 |
) |
Forward
currency contracts (2) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
change in unrealized (appreciation) depreciation on liabilities at fair value under the fair value option (2) |
|
|
0.06 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
income (loss) and net increase (decrease) in net assets resulting from operations (2) |
|
|
(2.27 |
) |
|
|
1.76 |
|
|
|
6.02 |
|
|
|
(2.96 |
) |
|
|
(0.30 |
) |
Common
stock distributions from net investment income (4) |
|
|
(1.51 |
) |
|
|
(2.60 |
) |
|
|
(2.40 |
) |
|
|
(1.53 |
) |
|
|
(0.55 |
) |
Common
stock distributions from net realized gains on investments (4) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Common
stock distributions from tax return of capital (4) |
|
|
(0.89 |
) |
|
|
(0.05 |
) |
|
|
- |
|
|
|
(0.87 |
) |
|
|
- |
|
Total
common stock distributions declared to stockholders (4) |
|
|
(2.40 |
) |
|
|
(2.65 |
) |
|
|
(2.40 |
) |
|
|
(2.40 |
) |
|
|
(0.55 |
) |
Common
stock distributions based on weighted average shares impact (5) |
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total
common stock distributions |
|
|
(2.39 |
) |
|
|
(2.65 |
) |
|
|
(2.40 |
) |
|
|
(2.40 |
) |
|
|
(0.55 |
) |
Effect
of other comprehensive income (2) (6) |
|
|
0.06 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Effect
of paid-in capital contribution (2) |
|
|
0.06 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Effect
of shares issued (7) |
|
|
0.29 |
|
|
|
0.27 |
|
|
|
0.18 |
|
|
|
- |
|
|
|
- |
|
Effect
of underwriting discounts, commissions and offering expenses associated with shares issued (7) |
|
|
(0.12 |
) |
|
|
(0.11 |
) |
|
|
(0.04 |
) |
|
|
- |
|
|
|
(0.07 |
) |
Effect
of shares issued in accordance with the Company's dividend reinvestment plan |
|
|
- |
|
|
|
0.02 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net
effect of shares issued |
|
|
0.17 |
|
|
|
0.18 |
|
|
|
0.14 |
|
|
|
- |
|
|
|
(0.07 |
) |
Net
asset value at end of period |
|
$ |
12.40 |
|
|
$ |
16.77 |
|
|
$ |
17.48 |
|
|
$ |
13.72 |
|
|
$ |
19.08 |
|
Per
share market value at beginning of period |
|
$ |
18.81 |
|
|
$ |
16.71 |
|
|
$ |
16.43 |
|
|
$ |
20.10 |
|
|
$ |
19.93 |
|
Per
share market value at end of period |
|
$ |
14.21 |
|
|
$ |
18.81 |
|
|
$ |
16.71 |
|
|
$ |
16.43 |
|
|
$ |
20.10 |
|
Total
return (8) |
|
|
-13.33 |
% |
|
|
29.45 |
% |
|
|
17.42 |
% |
|
|
-8.12 |
% |
|
|
0.85 |
% |
Shares
of common stock outstanding at end of period |
|
|
23,153,319 |
|
|
|
18,798,815 |
|
|
|
16,474,879 |
|
|
|
13,820,110 |
|
|
|
13,811,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios
and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value at end of period |
|
$ |
287,127,842 |
|
|
$ |
315,256,439 |
|
|
$ |
288,047,335 |
|
|
$ |
189,607,085 |
|
|
$ |
263,560,460 |
|
Ratio
of expenses to average net assets (9) (10) |
|
|
9.85 |
% |
|
|
10.43 |
% |
|
|
10.69 |
% |
|
|
6.73 |
% |
|
|
2.13 |
% |
Ratio
of net investment income to average net assets (9) (10) |
|
|
9.76 |
% |
|
|
10.77 |
% |
|
|
13.72 |
% |
|
|
10.78 |
% |
|
|
6.84 |
% |
Portfolio
turnover rate (11) |
|
|
40.91 |
% |
|
|
41.16 |
% |
|
|
55.32 |
% |
|
|
39.07 |
% |
|
|
37.11 |
% |
Asset
coverage of preferred stock |
|
|
246 |
% |
|
|
268 |
% |
|
|
286 |
% |
|
|
365 |
% |
|
|
N/A
|
|
Asset
coverage of debt securities |
|
|
477 |
% |
|
|
537 |
% |
|
|
722 |
% |
|
|
1028 |
% |
|
|
N/A
|
|
See
accompanying footnotes to the financial highlights on the following page.
Eagle
Point Credit Company Inc. & Subsidiaries
Consolidated
Financial Highlights
(Unaudited)
Footnotes
to the Financial Highlights:
(1) |
Per
share distributions paid to Series A Term Preferred Stock, Series B Term Preferred Stock, Series C Term Preferred Stock preferred
stockholders and Series F Term Preferred Stock, and the aggregate amount of amortized deferred issuance costs and share issuance
premiums associated with the Series A Term Preferred Stock, Series B Term Preferred Stock ,Series C Term Preferred Stock and Series
F Term Preferred Stock are reflected in net investment income, and totaled ($0.02) and ($0.00) per share of common stock, respectively,
for the three months ended March 31, 2024, ($0.05) and ($0.00) per share of common stock, respectively, for the year ended December
31, 2023, ($0.08) and ($0.00) per share of common stock, respectively, for the year ended December 31, 2022, ($0.16) and ($0.01)
per share of common stock, respectively, for the year ended December 31, 2021, ($0.12) and ($0.01) per share of common stock, respectively,
for the year ended December 31, 2020, ($0.25) and ($0.02) per share of common stock, respectively, for the year ended December 31,
2019, ($0.33) and ($0.02) per share of common stock, respectively, for the year ended December 31, 2018, ($0.40) and ($0.02) per
share of common stock, respectively, for the year ended December 31, 2017, ($0.28) and ($0.02) per share of common stock, respectively,
for the year ended December 31, 2016, and ($0.16) and ($0.01) per share of common stock, respectively, for the year ended December
31, 2015. |
(2) |
Per
share amounts are based on weighted average of shares of common stock outstanding for the period. |
(3) |
Net
realized gain (loss) and change in unrealized appreciation (depreciation) on investments, foreign currency and cash equivalents includes
a balancing figure to reconcile to the change in net asset value (“NAV”) per share at the end of each period. The
amount per share may not agree with the change in the aggregate net realized gain (loss) and change in unrealized appreciation (depreciation)
on investments, foreign currency and cash equivalents for the period because of the timing of issuance of the Company’s common
stock in relation to fluctuating market values for the portfolio. |
(4) |
The
information provided is based on estimates available at each respective period. The Company’s final taxable income and the
actual amount required to be distributed will be finally determined when the Company files its final tax returns and may vary from
these estimates. The year ended December 31, 2022 includes a special distribution of $0.50 per share of common stock paid on January
24, 2023 to stockholders of record on December 23, 2022. The year ended December 31, 2021 includes a special distribution of $0.50
per share of common stock paid on January 24, 2022 to stockholders of record on December 23, 2021. |
(5) |
Represents
the difference between the per share amount distributed to common stockholders of record and the per share amount distributed based
on the weighted average of shares of common stock outstanding for the period. |
(6) |
Effect
of other comprehensive income is related to income/(loss) deemed attributable to instrument specific credit risk derived from changes
in fair value associated with liabilities valued under the fair value option (ASC 825.) |
(7) |
Represents
the effect per share of the Company’s ATM offerings, follow-on offerings and initial public offering. Effect of shares issued
reflect the excess of offering price over management’s estimated NAV per share at the time of each respective offering. |
(8) |
Total
return based on market value is calculated assuming shares of the Company’s common stock were purchased at the market price
as of the beginning of the period, and distributions paid to common stockholders during the period were reinvested at prices obtained
by the Company’s dividend reinvestment plan, and the total number of shares were sold at the closing market price per share
on the last day of the period. Total return does not reflect any sales load. Total return for the three months ended March 31, 2024
and for the period from October 6, 2014 to December 31, 2014 are not annualized. |
(9) |
Ratios
for the period from October 6, 2014 to December 31, 2014 are annualized. Ratios for the years ended December 31, 2022, December 31,
2021, December 31, 2020, December 31, 2019 and December 31, 2018 reflect the portion of incentive fee voluntarily waived by the Adviser
of 0.06%, 0.03%, 0.06%, 0.03% and 0.09% of average net assets, respectively. Ratios for the three months ended March 31 2024 and
for the years ended December 31, 2022, December 31, 2021 and December 31, 2016 include excise tax of 0.05%, 0.41%, 0.49% and 0.26%
of average net assets, respectively. Ratios for the year ended December 31, 2023 include excise tax refund of -0.12%. |
(10) |
Ratios
for the three months ended March 31, 2024 and for the years ended December 31, 2023, December 31, 2022, December 31, 2021, December
31, 2020, December 31, 2019, December 31, 2018, December 31, 2017, December 31, 2016, and December 31, 2015 include interest expense
on the Company’s Series A Term Preferred Stock, Series B Term Preferred Stock, Series C Term Preferred Stock, Series C Term
Preferred Stock and the Unsecured Notes of 2.22%, 2.28%, 2.83%, 3.24%, 3.97%, 4.18%, 4.16%, 4.20%, 3.47% and 1.04% of average net
assets, respectively. Ratios do not include distributions to the Series D Preferred Stock stockholders for the three months ended
March 31, 2024 and for the years ended December 31, 2023, December 31, 2022 and December 31, 2021 of 0.30%. 0.31%, 0.37% and 0.03%,
respectively, of average net assets. |
(11) |
The
portfolio turnover rate is calculated as the lesser of total investment purchases executed during the period or the total investment
sales executed during the period and repayments of principal, divided by the average fair value of investments for the same period. |
Eagle
Point Credit Company Inc. & Subsidiaries
Supplemental
Information
(Unaudited)
Senior
Securities Table
Information
about the Company’s senior securities shown in the following table has been derived from the Company’s consolidated financial
statements as of and for the dates noted.
Class |
|
Total
Amount
Outstanding Exclusive
of Treasury Securities |
|
|
Asset
Coverage
Per Unit (1) |
|
|
Involuntary
Liquidating
Preference Per Unit (2) |
|
|
Average
Market
Value Per Unit (3) |
|
For the three months ended March
31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
142,577,675 |
|
|
$ |
85.66 |
|
|
$ |
25 |
|
|
$ |
22.38 |
|
Unsecured Notes |
|
$ |
170,523,800 |
|
|
$ |
6,291.44 |
|
|
|
N/A
|
|
|
$ |
23.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
83,223,700 |
|
|
$ |
92.65 |
|
|
$ |
25 |
|
|
$ |
21.04 |
|
Unsecured Notes |
|
$ |
170,523,800 |
|
|
$ |
5,514.93 |
|
|
|
N/A
|
|
|
$ |
22.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
81,587,250 |
|
|
$ |
71.47 |
|
|
$ |
25 |
|
|
$ |
23.25 |
|
Unsecured Notes |
|
$ |
170,523,800 |
|
|
$ |
4,226.70 |
|
|
|
N/A
|
|
|
$ |
23.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
98,130,500 |
|
|
$ |
78.16 |
|
|
$ |
25 |
|
|
$ |
25.48 |
|
Unsecured Notes |
|
$ |
138,584,775 |
|
|
$ |
5,339.86 |
|
|
|
N/A
|
|
|
$ |
25.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
47,862,425 |
|
|
$ |
88.39 |
|
|
$ |
25 |
|
|
$ |
24.25 |
|
Unsecured Notes |
|
$ |
93,734,775 |
|
|
$ |
5,340.98 |
|
|
|
N/A
|
|
|
$ |
23.93 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
69,843,150 |
|
|
$ |
69.71 |
|
|
$ |
25 |
|
|
$ |
26.04 |
|
Unsecured Notes |
|
$ |
98,902,675 |
|
|
$ |
4,757.42 |
|
|
|
N/A
|
|
|
$ |
25.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
92,568,150 |
|
|
$ |
61.55 |
|
|
$ |
25 |
|
|
$ |
25.78 |
|
Unsecured Notes |
|
$ |
98,902,675 |
|
|
$ |
4,766.23 |
|
|
|
N/A
|
|
|
$ |
25.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
92,139,600 |
|
|
$ |
66.97 |
|
|
$ |
25 |
|
|
$ |
25.75 |
|
Unsecured Notes |
|
$ |
91,623,750 |
|
|
$ |
5,372.28 |
|
|
|
N/A
|
|
|
$ |
25.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
91,450,000 |
|
|
$ |
71.53 |
|
|
$ |
25 |
|
|
$ |
25.41 |
|
Unsecured Notes |
|
$ |
59,998,750 |
|
|
$ |
7,221.89 |
|
|
|
N/A
|
|
|
$ |
25.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31,
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Stock |
|
$ |
45,450,000 |
|
|
$ |
91.16 |
|
|
$ |
25 |
|
|
$ |
25.43 |
|
Unsecured Notes |
|
$ |
25,000,000 |
|
|
$ |
10,275.46 |
|
|
|
N/A
|
|
|
$ |
24.52 |
|
(1) |
The asset
coverage per unit figure is the ratio of the Company's total consolidated assets, less all liabilities and indebtedness not represented
by senior securities, to the aggregate dollar amount of outstanding applicable senior securities, as calculated separately for each
of the Preferred Stock and the Unsecured Notes in accordance with section 18(h) of the 1940 Act. With respect to the Preferred Stock,
the asset coverage per unit figure is expressed in terms of dollar amounts per share of outstanding preferred stock (based on a per
share liquidation preference of $25.) With respect to the Unsecured Notes, the asset coverage per unit figure is expressed
in terms of dollar amounts per $1,000 principal amount of such notes. |
(2) |
The involuntary
liquidating preference per unit is the amount to which a share of Preferred Stock would be entitled in preference to any security
junior to it upon our involuntary liquidation. |
(3) |
The average
market value per unit is calculated by taking the average of the closing price of each of (a) a share of the Preferred Stock (NYSE:
ECCA, ECCB, ECCC, ECCF, ECC PRD) and(b) $25 principal amount of the Unsecured Notes (NYSE: ECCV, ECCW, ECCX, ECCY, ECCZ) for each
day during the years for which each applicable security was listed on the NYSE. |
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