Eagle Point Credit registers to sell term preferred shares

By Stephanie N. Rotondo

Phoenix, March 20 – Eagle Point Credit Co. Inc. registered to sell series A term preferred stock in a filing with the Securities and Exchange Commission on Friday.

Deutsche Bank Securities Inc. and Keefe, Bruyette & Woods Inc. are the joint bookrunning managers.

The company set a nominal $1 million size for the offering.

Dividends will be payable monthly. If the company fails to redeem the shares on the redemption date or fails to make a dividend payment, the dividend will increase by 2%.

Should the company fail to maintain an asset coverage ratio of 200%, then the company must either redeem however many preferred shares necessary to reach that threshold or the maximum number of shares that can be redeemed with cash on hand.

Proceeds will be used to acquire CLO investments and for general corporate purposes.

Eagle Point plans to list the preferreds.

Eagle Point is a Greenwich, Conn.-based externally managed, non-diversified closed end management investment company.

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