By Stephanie N. Rotondo and Toni Weeks
Phoenix, May 13 – Eagle Point Credit Co. Inc. priced an underwritten public offering of 7.75% series A term preferred stock due June 30, 2022 on Wednesday, according to a press release.
The deal came at the tight end of talk for a dividend in the 7.875% area.
The company is selling 1.6 million shares at the liquidation preference of $25 per share for proceeds of $40 million. The amount was upsized from the $35 million announced on Monday.
Underwriters have been granted a 30-day greenshoe option for an additional 240,000 shares.
Deutsche Bank Securities Inc. and Keefe Bruyette & Woods Inc. are the joint bookrunners. Wunderlich Securities Inc., MUFG, Compass Point and Incapital LLC are the lead managers.
Dividends will be payable monthly.
The preferreds become redeemable June 29, 2018 at par plus accrued dividends. The company can also redeem the preferreds if asset coverage falls below 200%.
The new securities will be listed on the New York Stock Exchange under the ticker symbol “ECCA.”
The Greenwich, Conn.-based company will use proceeds for investments and general corporate purposes.
Eagle Point is an externally managed, non-diversified closed end management investment company.
| Issuer: | Eagle Point Credit Co. Inc.
|
| Issue: | Series A term preferred stock
|
| Amount: | $40 million
|
| Greenshoe: | $6 million
|
| Maturity: | June 30, 2022
|
| Bookrunners: | Deutsche Bank Securities Inc. and Keefe Bruyette & Woods Inc.
|
| Lead managers: | Wunderlich Securities Inc., MUFG, Compass Point and Incapital LLC
|
| Dividend: | 7.75%, payable monthly
|
| Price: | Par of $25
|
| Call option: | Starting June 29, 2018 at par plus accrued dividends; callable if asset coverage falls below 200%
|
| Pricing date: | May 13
|
| Settlement date: | May 18
|
| Talk: | 7.875% area
|
| Security listing: | NYSE: ECCA
|
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