Eagle Point stock proceeds to further CLO-focused investing strategy

By Wendy Van Sickle

Columbus, Ohio, May 12 – Eagle Point Credit Co. Inc. plans to pursue its CLO-focused investment strategy with proceeds from an offering of its common shares, according to a Securities and Exchange Commission filing.

After discounts and expenses, the company expects proceeds of about $22.6 million – or about $26 million if the underwriters fully exercise their overallotment option – assuming a price of $19.05 per share, which was the stock’s closing price on May 11, from the offering of 1.25 million shares with a 187,500-share greenshoe.

Eagle Point said it will apply those proceeds to achieve its investment objectives “by investing primarily in equity and junior debt tranches of collateralized loan obligations, or ‘CLOs,’ that are collateralized by a portfolio consisting primarily of below investment grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors.”

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