E A G L E P O I N T C R E D I T C O M P A N Y
Q U A R T E R L Y U P D A T E - Q 1 2 0 2 4
M A Y 2 1 , 2 0 2 4
IMPORTANT INFORMATION
This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with Eagle Point Credit Company Inc. ("ECC" or the "Company") or any of its affiliates. This presentation 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.
This presentation is solely for the use of the intended recipient(s). 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 presentation 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-endinvestment companies, such as the Company, frequently trade at a discount from their net asset value, 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 dates noted herein. 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.
Information contained on our website is not incorporated by reference into this report and you should not consider information contained on our website to be part of this report or any other report we file with the SEC.
ABOUT EAGLE POINT CREDIT COMPANY
The Company is a non-diversified,closed-end management investment company. The Company's primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, 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
- 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
These materials 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 presentation 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 presentation.
Eagle Point Credit is a registered trademark of Eagle Point Credit Management LLC. © 2024. Eagle Point Credit Company Inc. All Rights Reserved.
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TABLE OF CONTENTS
- Introduction to Eagle Point Credit Company (ECC)
- Senior Investment Team and Investment Process
- CLO Equity Overview
- ECC Supplemental Information
- Selected Market Data
2
I N T R O D U C T I O N T O
E A G L E P O I N T C R E D I T C O M P A N Y ( E C C )
INTRODUCTION TO ECC
Company and Adviser Overview
The Company: Eagle Point Credit Company Inc. (ECC)
IPO Date | | October 7, 2014 |
Primary Investment | | To generate high current income by investing primarily in equity and junior debt tranches |
Objective | of collateralized loan obligations, or "CLOs" | |
Total Market | | $1,143.6 million1 |
Capitalization | ||
Distributions | | Monthly distribution of $0.16 per share of common stock beginning in April 2023 |
(distribution rate of 19.1%)2 | ||
| $20.47 cumulative common distributions per share since IPO2 | |
The Adviser: Eagle Point Credit Management LLC
History | | Eagle Point Credit Management LLC ("Eagle Point" or the "Adviser") was formed in 2012 |
by Thomas Majewski and Stone Point Capital | ||
| Eagle Point is headquartered in Greenwich, CT and has 76 professionals3 | |
Assets Under | | Over $9.6 billion managed across the Eagle Point platform on behalf of institutional, high |
Management | net worth and retail investors4 | |
- Combined market capitalization of ECC, ECCC, ECC PRD, ECCF, ECCX, ECCW and ECCV based on securities outstanding as of March 31, 2024 market prices as of April 30, 2024.
- Based on ECC's closing market price of $10.05 per share as of April 30,2024 and frequency and aggregate amount of regular and supplemental distributions most recently declared by the Company. Cumulative common distribution amount is as of March 31, 2024. To date, a portion of common stock distributions has been estimated to be a return of capital as noted under the Tax Information section on the Company's website. The actual components of the Company's distributions for U.S. tax reporting purposes can only be finally determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099-DIV. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Company's investment performance and should not be confused with "yield" or "income". Future distributions may consist of a return of capital. Not a guarantee of future distributions or yield.
- As of March 31, 2024. Professionals count includes wholly owned subsidiaries of Eagle Point.
4. | As March 31, 2024, includes committed but undrawn capital and assets managed by Eagle Point Credit Management LLC and certain of its affiliates. | 4 |
INTRODUCTION TO ECC
ECC Highlights
CLO Equity is an | | The Credit Suisse Leveraged Loan Index has generated positive total returns in 29 of the |
Attractive Asset Class | past 32 full calendar years1 | |
| Eagle Point believes CLO equity provides an attractive way to obtain exposure to senior | |
secured loans | ||
Specialized | | Eagle Point is focused on CLO securities and related investments (as well as other |
Investment Team | income-oriented investments) | |
| Each member of the Senior Investment Team is a CLO industry specialist who has been | |
directly involved in the CLO market for the majority of their career | ||
Differentiated | | The Company pursues a differentiated private equity style investment approach focused |
Investment Strategy | on proactively sourcing investment opportunities in CLO equity, seeking to take | |
and Process | significant stakes and to influence key terms and conditions | |
Alignment of Interests | | Adviser and Senior Investment Team have approximately $15.7 million invested in |
securities issued by the Company2 | ||
Past performance is not indicative of, or a guarantee of, future performance. Please see important information on page 1.
1. The CSLLI tracks the investable universe of the US dollar-denominated leveraged loan market. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Similarly, since 2001, from a total return perspective, the Morningstar LSTA US Leveraged Loan Index experienced only three down full calendar years (2008, 2015 and 2022 with returns of -29.1%,-0.7% and -0.6%, respectively). The Morningstar LSTA US Leveraged Loan Index is a market value-weighted index designed to measure the performance of the U.S. leveraged loan market based upon weightings, spreads and
interest payments. See page 16. | ||
2. | Amount includes holdings of Eagle Point and its senior investment personnel as of March 31, 2024 (based on market values as of April 30, 2024). | 5 |
INTRODUCTION TO ECC
Cumulative Common Stock Distributions
ECC currently pays a monthly regular distribution of $0.14 per share and a variable supplemental distribution of $0.02 per share1
ECC Cumulative Distributions Per Share2
$25
$20
$15
$10
$5
$0
$19.99 $20.47
$18.13
$15.76
$14.12
$12.80
$10.40
$8.00
$4.75
$2.35
2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | YTD 2024 |
Regular and Supplemental Distributions | Special Distributions Declared During Year | ||||||||
- Based on frequency of regular and supplemental distributions most recently declared by the Company.
- As of March 31, 2024. To date, a portion of common stock distributions has been estimated to be a return of capital as noted under the Tax Information section on the Company's website. The actual components of the Company's distributions for U.S. tax reporting purposes can only be finally determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099-DIV. A distribution comprised in whole or in
part by a return of capital does not necessarily reflect the Company's investment performance and should not be confused with "yield" or "income". Future distributions may consist of a return of capital. Not a guarantee of | |
future distributions or yield. | 6 |
INTRODUCTION TO ECC
Track Record: Common Stock Total Return and Price to Book Ratio
For the period of October 7, 2014 - April 30, 2024:
- ECC generated a total return1 of 119.3% versus 115.67% for the S&P BDC Index2 (annualized net total return of 8.55% for ECC versus 8.36% for the S&P BDC Index)
- ECC traded at an average premium to book value of 10.8% while the BDCs comprising the S&P BDC Index2 traded at an average discount of -5.8%
Value of $10,000 Invested | Price to Book Ratio3 | ||||||||||||||||||||||||||
$21,933 | 160% | SPBDC P/B | |||||||||||||||||||||||||
ECC | Average SPBDC P/B | ||||||||||||||||||||||||||
$21,000 | $21,567 | ||||||||||||||||||||||||||
SPBDC | ECC P/B | ||||||||||||||||||||||||||
Average ECC P/B | |||||||||||||||||||||||||||
$18,000 | 140% | ||||||||||||||||||||||||||
$15,000 | 120% | 110.83% | |||||||||||||||||||||||||
109.72% | |||||||||||||||||||||||||||
$12,000 | |||||||||||||||||||||||||||
100% | 103.09% | ||||||||||||||||||||||||||
$9,000 | |||||||||||||||||||||||||||
80% | 94.18% | ||||||||||||||||||||||||||
$6,000 | |||||||||||||||||||||||||||
$3,000 | 60% | ||||||||||||||||||||||||||
$0 | 40% | ||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
Past performance is not indicative of, or a guarantee of, future performance. Please see Important Information on page 1.
- Total return is calculated as the percent change in the value of $10,000 invested in ECC common stock at the time of the Company's IPO and assumes that any dividends or distributions are reinvested at prices obtained by the Company's dividend reinvestment plan on the applicable payment date. Future results may vary and may be higher or lower than those shown. Returns do not reflect the deduction of taxes that a shareholder would pay on Company distributions or the sale of Company shares.
- The S&P BDC Index is designed to track leading business development companies (BDCs) that trade on NYSE and NASDAQ and satisfy market capitalization and equity requirements. Although ECC is not a BDC, BDCs generally invest in high yielding credit investments, as does ECC. In addition, similar to ECC, BDCs generally elect to be classified as a regulated investment company under the U.S. Internal Revenue Code of 1986, as amended, which generally requires an investment company to distribute its taxable income to shareholders. You cannot invest directly in an index.
- Price to book is calculated as price per share divided by book value per share, which for ECC, reflects management's reported estimate of book value for periods where final determined book values are not available. Future results may vary and may be higher or lower than those shown.
Source: Bloomberg. | 7 |
INTRODUCTION TO ECC
ECC By The Numbers
19.1% | 134 | Number of | $0.16 | |||
Refis | ||||||
Resets | ||||||
Current | Re-Pricings | Monthly Distribution1 | ||||
Distribution Rate1 | Calls2 | |||||
20 | Average Years of CLO | Exposure to | ||||
Floating Rate | ||||||
Experience of Senior | ||||||
97.4% Senior3 | Secured | |||||
Investment Team | ||||||
Loans | ||||||
Number of Underlying
Loan Obligors3
1,793
Number of CLO
Equity Securities3
152
Number
of CLO
41Collateral
Managers3
Past performance is not indicative of, or a guarantee of, future performance.
1. | Based on ECC's closing market price of $10.05 per share on April 30, 2024 and frequency and amount of current distributions most recently declared by the Company. To date, a portion of common stock distributions has | |
been estimated to be a return of capital as noted under the Tax Information section on the Company's website. The actual components of the Company's distributions for U.S. tax reporting purposes can only be finally | ||
determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099-DIV. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Company's | ||
investment performance and should not be confused with "yield" or "income". Future distributions may consist of a return of capital. Not a guarantee of future distributions or yield. | ||
2. | Since IPO date October 7, 2014 through March 31, 2024. | 8 |
3. | As of March 31, 2024. |
INTRODUCTION TO ECC
Securities Outstanding
Advisor and Senior Investment Team have approximately $15.7million invested in ECC, ECCC and ECCX1
Common Stock
NYSE Ticker | ECC |
Description | Common Stock |
Market Cap2 | $857.3mm |
Price per Share2 | $10.05 |
Distribution3 | $0.16 |
Current | 19.1% |
Distribution Rate3 | |
Payment | Monthly |
Frequency | |
Maturity Date | N/A |
Callable Date | N/A |
Market Value Held | |
by Adviser and | $15.5mm |
Senior Investment | |
Team1 | |
Preferred Stock and Unsecured Notes
NYSE Ticker | ECCC | ECC PRD | ECCF | ECCV | ECCW | ECCX |
Series C | Series D | Series F Term | Unsecured | Unsecured | Unsecured | |
Description | Term Preferred Stock | Perpetual Preferred | Preferred Stock | Notes | Notes | Notes |
Due 2031 | Stock | Due 2029 | Due 2029 | Due 2031 | Due 2028 | |
($25 Liquidation | ($25 Liquidation | ($25 Liquidation | ($25 Par | ($25 Par | ($25 Par | |
Preference) | Preference) | Preference) | Denomination) | Denomination) | Denomination) | |
Principal | $54.3mm | $36.8mm | $51.4mm | $93.3mm | $44.9mm | $32.4mm |
Price per Share2 | $22.40 | $19.39 | $24.81 | $22.45 | $23.98 | $24.14 |
Coupon | 6.50% | 6.75% | 8.00% | 5.375% | 6.75% | 6.6875% |
Yield to Maturity2 | 8.4% | 8.7% | 8.2% | 8.1% | 7.6% | 7.9% |
Payment | Monthly | Monthly | Monthly | Quarterly | Quarterly | Quarterly |
Frequency | ||||||
Maturity Date | 6/30/2031 | Perpetual | 1/31/2029 | 1/31/2029 | 3/31/2031 | 4/30/2028 |
Callable Date | 6/16/2024 | 11/29/2026 | 1/18/2026 | 1/31/2025 | Callable | Callable |
Market Value Held | ||||||
by Adviser and | $67.2K | N/A | N/A | N/A | N/A | $129.7K |
Senior Investment | ||||||
Team1
Past performance is not indicative of, or a guarantee of, future performance. Please see important information on page 1.
- Amount includes holdings of Eagle Point and its senior investment personnel as of March 31, 2024 (based on market values as of April 30, 2024).
- Reflects securities outstanding as of March 31, 2024 and market price as of April 30, 2024. Yield is shown to the stated maturity based on market prices as of April 30, 2024. If called prior to stated maturity, the yield could be adversely impacted.
- Based on ECC's closing market price of $10.05 per share on April 30, 2024 and frequency and aggregate amount of regular and supplemental distributions most recently declared by the Company. To date, a portion of
common stock distributions has been estimated to be a return of capital as noted under the Tax Information section on the Company's website. The actual components of the Company's distributions for U.S. tax reporting | |
purposes can only be finally determined as of the end of each fiscal year of the Company and are thereafter reported on Form 1099-DIV. A distribution comprised in whole or in part by a return of capital does not | |
necessarily reflect the Company's investment performance and should not be confused with "yield" or "income". Future distributions may consist of a return of capital. Not a guarantee of future distributions or yield. | 9 |
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Eagle Point Credit Company Inc. published this content on 21 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 May 2024 11:25:08 UTC.