Ellington Credit Company (NYSE: EARN) announced the pricing of an underwritten public offering of $50 million in 8.50% notes due 2031. The notes will mature on March 30, 2031, and may be redeemed in whole or in part at the company's option on or after March 30, 2028.

The 2031 notes received a 'BBB' rating from Egan-Jones Ratings Company. The company granted underwriters a 30-day option to purchase up to an additional $7.5 million in notes at the same price and terms to cover over-allotments.

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

The offering is expected to close on March 30, 2026, subject to customary closing conditions. The company intends to list the 2031 notes on the New York Stock Exchange under the symbol "ELLA".

Piper Sandler & Co. is acting as lead book-running manager for the offering. Lucid Capital Markets LLC and A.G.P./Alliance Global Partners are serving as joint book-running managers, while B. Riley Securities, Inc., Clear Street LLC and Muriel Siebert & Co., LLC are acting as lead managers.

Ellington Credit Company is a non-diversified closed-end fund that invests primarily in corporate collateralized loan obligations, with a focus 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.

Information is based on a company press release.