Business Context and Reporting Period
Company: Carlyle Credit Income Fund (NYSE: CCIF)
Filing Type: Form 8-K (Current Report)
Date of Report: October 30, 2025
Event: Entry into a Material Definitive Agreement for the issuance of Convertible Preferred Shares.
Key Financial Metrics and Transaction Details
This filing details a specific capital raise rather than periodic financial performance metrics (e.g., revenue, net income, or operating cash flow). The filing text does not provide a clear value for the Fund's overall revenue, profit, or total debt levels outside of this transaction.
- Instrument Issued: 7.25% Series E Convertible Preferred Shares due 2030.
- Shares Sold: Approximately 17,500 shares.
- Liquidation Preference: $1,000.00 per share.
- Issue Price: $930.00 per share.
- Net Proceeds: Approximately $16.275 million (before expenses).
- Dividend Rate: Fixed annual rate of 7.25% ($72.50 per share), payable quarterly.
- First Dividend Payment: January 31, 2026.
Material Changes and Capital Structure
The Fund has altered its capital structure through the issuance of new senior securities. The Series E Convertible Preferred Shares rank:
- Senior to: Common Shares (CCIF).
- Equal to: Series A, Series B, Series C, and Series D Preferred Shares.
- Subordinate to: Amounts owed under the Fund's Credit Agreement and any future senior indebtedness.
Use of Proceeds: The Fund intends to use the net proceeds to fund the redemption of its Series A Preferred Shares, with any remaining proceeds allocated to general working capital purposes.
Guidance, Outlook, and Material Terms
Redemption and Maturity:
- Term Redemption Date: October 30, 2030.
- Optional Redemption: The Fund may redeem shares at its sole option on or after May 1, 2026.
- Asset Coverage Trigger: If the Fund fails to maintain an asset coverage ratio of at least 200%, it is required to redeem a portion of its Preferred Shares within 90 days of the cure date.
Conversion Rights:
- Convertibility Date: Six months after issuance (approximately April 30, 2026).
- Conversion Price: The greater of the 5-day average market price or the most recently reported net asset value per Common Share.
- Penalty for Non-Delivery: If the Fund fails to deliver shares upon conversion, the dividend rate increases by 2.00% annually until fulfilled.
Risks and Contingencies:
- Downgrade Risk: If the shares are downgraded below investment grade, the dividend rate increases by 1.00%.
- Change of Control: Holders have the right to require a cash repurchase at 100% of liquidation preference plus accrued dividends.
- Delisting: Mandatory redemption occurs if Common Shares are delisted from major exchanges for 20 consecutive trading days.
Investor Verification Checklist
- Verify the exact amount of Series A Preferred Shares being redeemed with the $16.275 million in proceeds.
- Confirm the Fund's current asset coverage ratio to assess the risk of mandatory redemption triggers.
- Review the "Fifth Supplement to the Amended and Restated Declaration of Trust" (Exhibit 3.1) for complete legal terms.
- Monitor the Fund's credit rating to determine if the 1.00% dividend penalty for downgrades applies.
- Check the Fund's liquidity position to ensure it can meet the first dividend payment on January 31, 2026.