Ellington Credit raises $54 million through notes offering

Ellington Credit Company (NYSE: EARN) completed its underwritten public offering of $50 million in 8.50% notes due 2031, with underwriters partially exercising their over-allotment option to purchase an additional $4 million, bringing the total offering to $54 million.

The 2031 Notes received a 'BBB' rating from Egan-Jones Ratings Company. Underwriters retain a 30-day option to purchase up to an additional $7.5 million aggregate principal amount of notes, inclusive of the $4 million partial exercise already completed.

The company plans to use net proceeds for general corporate purposes, including funding additional asset purchases aligned with its investment objectives and repaying short-term borrowings under reverse repurchase agreements used to finance investments. The notes will be listed on the New York Stock Exchange under the symbol "ELLA".

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

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

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