Eagle Point Credit Increases Convertible Preferred Offering to $200 Million

Citing strong investor demand, Eagle Point Credit Company Inc. (NYSE:ECC) – a closed-end fund focused on investments in collateralized loan obligations – has increased the size of its continuous public offering of its 7% Series AA and Series AB convertible perpetual preferred stock to $200 million.

The expanded offering now includes up to 8 million shares at $25 each. The preferred stock pays a 7% annual dividend, is distributed monthly, and is rated BBB by Egan-Jones Ratings Company – an independent rating agency. The preferred shares are perpetual and may be converted into common stock or cash at the company’s discretion, subject to certain conditions.

“The preferred stock has been met with tremendous interest from investors,” said Thomas Majewski, chief executive officer, in a statement. “We believe the preferred stock offers investors principal stability, regular fixed dividends and attractive liquidity terms in a volatile market.”

The capital raise is expected to provide accretive capital to support the company’s ongoing investment strategy, which focuses on CLO equity and junior debt tranches. AltsWire previously reported on the launch of the Series AA and AB shares last year, noting Eagle Point’s shift toward perpetual preferred capital as a flexible alternative to term-limited instruments.

Eagle Point Credit Company is a non-diversified, closed-end management investment company advised by Eagle Point Credit Management LLC. The company seeks to generate high current income with a secondary objective of capital appreciation.

Click here to visit the AltsWire directory page.