Eagle Point Credit Co. 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Eagle Point Credit Company Inc. on January 14, 2022, covering events occurring on January 13 and January 14, 2022. The company is a Delaware corporation with principal executive offices in Greenwich, CT.
Key Financial Metrics and Capital Actions
The filing details significant capital structure changes involving new debt issuance and the redemption of existing securities. No revenue, profit, or cash flow metrics are provided in this specific filing.
- New Debt Issuance: Entered into an underwriting agreement to sell $87,000,000 aggregate principal amount of 5.375% Notes due 2029 (Trading Symbol: ECCV).
- Over-Allotment Option: Underwriters hold an option to purchase up to an additional $13,000,000 of the 2029 Notes.
- Preferred Stock Redemption: Elected to redeem in full all outstanding shares of 7.75% Series B Term Preferred Stock due 2026.
- Debt Redemption (Full): Elected to redeem in full all outstanding 6.75% Notes due 2027.
- Debt Redemption (Partial): Elected to redeem 50% ($32,423,775) of outstanding 6.6875% Notes due 2028, leaving $32,423,800 outstanding.
Material Changes and Transaction Details
The primary material change is the restructuring of the company's capital base through refinancing activities.
- Closing Dates: The new 2029 Notes offering is expected to close on January 24, 2022. The redemptions are expected to be completed on February 14, 2022 (Notes) and February 28, 2022 (Preferred Stock).
- Redemption Pricing: The redemption price for the Series B Preferred Stock and the Notes is $25 per share/note plus accrued and unpaid dividends or interest up to, but excluding, the respective redemption dates.
- Listing: The new 2029 Notes are expected to be listed on the New York Stock Exchange.
Outlook, Risks, and Management Commentary
Management commentary is limited to the execution of the underwriting agreement and redemption notices. The filing states that the closing of the new offering is subject to customary closing conditions. The document explicitly notes that this 8-K does not constitute the official notice of redemption for the affected securities; formal notices are being provided by the Redemption Agent.
Investor Verification Checklist
- Verify the final closing of the $87 million 2029 Notes offering on or around January 24, 2022.
- Confirm whether the underwriters exercised the $13 million over-allotment option.
- Monitor the completion of the Series B Preferred Stock redemption on February 28, 2022.
- Confirm the full redemption of the 2027 Notes and the partial redemption of the 2028 Notes on February 14, 2022.
- Review the full text of the Underwriting Agreement (Exhibit 1.1) for specific terms and covenants not detailed in this summary.