Eagle Point Credit Company Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Eagle Point Credit Company Inc. on March 25, 2021. The report details the entry into a material definitive agreement regarding a new debt issuance.
Key Financial Metrics and Transaction Details
- Debt Issuance: The Company issued $39.0 million aggregate principal amount of 6.75% Notes due 2031.
- Underwriter Option: Underwriters hold an option to purchase up to an additional $5,850,000 of Notes within 30 days of March 18, 2021.
- Interest Rate: 6.75% per annum, payable quarterly (June 30, September 30, December 31, and March 31).
- Maturity Date: March 31, 2031.
- Trading Symbol: ECCW (New York Stock Exchange).
- Redemption Terms: Notes may be redeemed in whole or in part at the Company's option on or after March 29, 2024, at 100% of principal plus accrued interest.
- Financial Statements: This filing does not contain revenue, profit, cash flow, or margin data; it is a transaction report.
Material Changes
The primary material change is the creation of a new direct financial obligation through the issuance of the 6.75% Notes due 2031. The Company entered into a Fourth Supplemental Indenture to govern this issuance. No prior comparable period financial data is provided in this specific filing.
Outlook, Risks, and Contingencies
- Covenants: The Indenture includes a covenant requiring compliance with Section 18(a)(1)(A) of the Investment Company Act of 1940 regarding asset coverage.
- Additional Issuance: The Company retains the ability to issue additional series of Notes with the same ranking and terms without holder consent.
- Listing: The Notes are expected to trade on the NYSE beginning on or around March 29, 2021.
- Regulatory Compliance: Redemption exercises must comply with the Investment Company Act of 1940.
Key Facts for Investor Verification
- Verify the final closing amount including any exercise of the $5.85 million underwriter option.
- Confirm the listing status of the Notes under symbol "ECCW" on the NYSE.
- Review the full text of the Fourth Supplemental Indenture (Exhibit 4.1) for specific limitations and exceptions to covenants.
- Monitor the Company's asset coverage ratio to ensure continued compliance with the 1940 Act covenant.