Eagle Point Credit (ECC) Tops Q1 EPS by 2c

Eagle Point Credit (NYSE: ECC) reported Q1 EPS of $0.28, $0.02 better than the analyst estimate of $0.26.

FIRST QUARTER 2021 HIGHLIGHTS

• Net investment income (“NII”) and realized capital gains of $0.28 per weighted average common share1 for the first quarter.
• NAV per common share of $12.02 as of March 31, 2021, up from $11.18 per common share as of December 31, 2020.
• First quarter GAAP net income (inclusive of unrealized mark-to-market gains) of $35.2 million, or $1.09 per weighted average common share.
• Weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio (excluding called CLOs), based on amortized cost, was 14.40% as of March 31, 2021. Weighted average expected yield of the Company’s CLO equity portfolio (excluding called CLOs), based on fair market value, was 17.80% as of March 31, 20212.
• Deployed $41.7 million in net capital and received $32.5 million in recurring cash distributions3 from the Company’s investment portfolio.
• 3 of the Company’s CLO equity investments were reset and 7 of the Company’s CLO equity investments were refinanced.
• Issued 242,268 shares of Series B Term Preferred Stock, pursuant to the Company’s “at-the-market” offering program, for total net proceeds to the Company of approximately $6.0 million.
• Completed an underwritten public offering of $39.0 million in aggregate principal amount of 6.75% notes due 2031 (“ECCW”), resulting in net proceeds to the Company of approximately $37.5 million.

“Our strong momentum from the second half of 2020 continued throughout the first quarter, as our NAV per common share increased by 8% from the end of 2020,” said Thomas Majewski, Chief Executive Officer. “For the quarter, we generated NII and realized capital gains of $0.28 per common share, after giving effect to a charge of $0.04 per share related to non-recurring expenses from our ECCW issuance. Excluding these items, we would have generated NII and realized capital gains of $0.32 per common share, in excess of our distribution. Our investment portfolio remained resilient and recurring cash flows from the portfolio increased. Given the strength of the Company’s recent financial performance and our outlook for the future, we were pleased to increase our monthly distributions by 25% to $0.10 per common share beginning in July.”

“Additionally, we further strengthened our liquidity position during the quarter as we successfully completed the offering of our 6.75% ECCW Notes due 2031, providing us with net proceeds of $43.2 million and lengthening our average debt maturity,” added Mr. Majewski. “With no debt maturities prior to October 2026 and over $13 million of cash on our balance sheet as of April 30, we are well positioned to take advantage of investment opportunities and generate attractive risk-adjusted returns.”

For earnings history and earnings-related data on Eagle Point Credit (ECC) click here.

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