Eagle Point Credit (ECC) Tops Q2 EPS by 1c

Eagle Point Credit (NYSE: ECC) reported Q2 EPS of $0.34, $0.01 better than the analyst estimate of $0.33.

• Net investment income (“NII”) net of realized capital gains from the Company’s portfolio and capital losses from financing activities of $0.34 per weighted average common share1.
• NAV per common share of $16.51 as of June 30, 2018.
• Second quarter 2018 GAAP net income (inclusive of unrealized mark-to-market gains) of $9.5 million, or $0.44 per weighted average common share.
• Weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio was 14.08% as of June 30, 2018.
• Deployed $31.3 million in net capital and received $35.4 million in cash distributions from the Company’s investment portfolio in the second quarter of 2018.
• 8 of the Company’s CLO investments were reset and 1 of the Company’s CLO investments was refinanced during the second quarter of 2018.
• Completed an underwritten public offering of $67.3 million in aggregate principal amount of its 6.6875% notes due 2028 (ECCX), including a partial exercise of the underwriters’ overallotment option, resulting in net proceeds to the Company of approximately $64.9 million.
• Fully redeemed its 7.00% notes due 2020 (ECCZ).

“We remain proactive with respect to managing our portfolio and balance sheet as we seek to unlock additional long-term value for our stockholders,” said Thomas Majewski, Chief Executive Officer. “During the second quarter, we completed the effective refinancing of our 7.00% ECCZ notes with our new 6.6875% ECCX notes, further lowering our cost of capital and extending the weighted average maturity of our outstanding notes and preferred stock to approximately eight years. Additionally, we continued to focus on CLO resets to take advantage of our Adviser’s deep investing experience, completing 8 during the quarter and thus further lengthening the reinvestment period in each transaction and locking in lower cost CLO debt. During the second quarter, we also deployed $78.4 million opportunistically into new investments, while selling certain investments where we saw particularly strong demand and pricing.”

“We recorded NII net of realized capital gains and losses per share in the second quarter of $0.34, which was impacted by the acceleration of unamortized deferred debt issuance costs associated with the ECCZ redemption and our election to recognize expenses related to the ECCX issuance in the period they were incurred,” noted Mr. Majewski. “Non-recurring losses and costs related to the early repayment of ECCZ and the new ECCX issuance totaled approximately $0.20 per share during the quarter. With the pace of spread compression continuing to slow, we are actively managing our portfolio and, when appropriate, pursuing additional CLO resets in an effort to lock in longer and lower cost liabilities.”

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

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• Range Impact, Inc. (RNGE) Reports Q2 Loss of $0.02
• Eagle Point Credit Company Announces Second Quarter 2026 Financial Results and Fourth Quarter 2026 Common and Preferred Distributions