Ellington Credit Company (NYSE: EARN) announced the commencement of an underwritten public offering of unsecured notes due 2031. The closed-end fund will determine the public offering price, interest rate, and other terms through negotiations with underwriters.

The 2031 Notes received a 'BBB' rating from Egan-Jones Ratings Company. The fund plans to grant underwriters a 30-day option to purchase additional notes at the same price and terms to cover overallotments.

Ellington Credit expects to use net proceeds for general corporate purposes, including funding purchases of additional assets in accordance with its investment objectives and repaying short-term borrowings under reverse repurchase agreements used to finance investments.

The notes are expected to be listed on the New York Stock Exchange within 30 days of the original issue date under ticker symbol "ELLA".

Piper Sandler & Co. serves as lead book-running manager for the offering. Lucid Capital Markets LLC and A.G.P./Alliance Global Partners act as joint book-running managers, while B. Riley Securities, Inc., Clear Street LLC and Muriel Siebert & Co., LLC serve as lead managers. Wedbush Securities Inc. acts as co-manager.

Ellington Credit Company is a non-diversified closed-end fund that invests primarily in corporate collateralized loan obligations, focusing on mezzanine debt and equity tranches. The fund is externally managed by an affiliate of Ellington Management Group, L.L.C., a fixed-income investment manager founded in 1994.

A registration statement relating to the securities has been declared effective by the Securities and Exchange Commission, according to the company's announcement.