By Stephanie N. Rotondo
Seattle, Oct. 6 – Eagle Point Credit Co. Inc. sold $30 million of 7.75% series B term preferred stock due 2026, the company said in a press release.
There is a $4.5 million over-allotment option.
The deal came upsized from $25 million. The greenshoe was also increased from $3.75 million.
Keefe Bruyette & Woods Inc. is the bookrunner. FBR Capital Markets & Co. and Wunderlich Securities Inc. are co-lead managers.
Dividends are payable monthly.
The preferreds become redeemable upon a certain date at par plus accrued dividends. The securities also become redeemable if the company fails to maintain an asset coverage ratio of at least 200%.
Proceeds will be used for investments in accordance with the firm’s objectives and strategy and for general working capital purposes.
Eagle Point Credit is a Greenwich, Conn.-based non-diversified, closed-end management investment company.
| Issuer: | Eagle Point Credit Co. Inc.
|
| Securities: | Series B term preferred stock
|
| Amount: | $30 million, or 1.2 million shares
|
| Greenshoe: | $4.5 million, or 180,000 shares
|
| Maturity: | 2026
|
| Bookrunner: | Keefe Bruyette & Woods Inc.
|
| Co-lead managers: | FBR Capital Markets & Co., Wunderlich Securities Inc.
|
| Co-managers: | MUFG, National Securities Corp.
|
| Dividend: | 7.75%
|
| Price: | Par of $25.00
|
| Yield: | 7.75%
|
| Call options: | After a certain date or if the company’s asset coverage ratio falls below 200% at par plus accrued dividends
|
| Pricing date: | Oct. 5
|
| Settlement date: | Oct. 11
|
| Expected listing: | NYSE: ECCB
|
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