Eagle Point greenshoe exercised, ups 7.75% preferreds to $34.5 million

By Marisa Wong

Morgantown, W.Va., Oct. 27 – Eagle Point Credit Co. Inc. said the underwriters of its recent offering of 7.75% series B term preferred stock due 2026 exercised their over-allotment option in full. The company sold an additional 180,000 shares at $25.00 each for additional proceeds of $4.5 million.

The company issued the original $30 million, or 1.2 million shares, of 7.75% series B term preferreds on Oct. 11, as previously reported.

The deal came upsized from $25 million. The greenshoe was also increased from $3.75 million.

Keefe Bruyette & Woods Inc. was the bookrunner. FBR Capital Markets & Co. and Wunderlich Securities Inc. were co-lead managers.

Dividends are payable monthly.

The preferreds become redeemable on 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.

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