Eagle Point to use 7.75% series B preferreds proceeds to buy CLO debt

By Devika Patel

Knoxville, Tenn., Aug. 17 – Eagle Point Income Co. Inc. plans to use the $31.2 million of net proceeds from a recent sale of 7.75% series B preferred stock to invest further in CLO debt and equity.

“In July, we further strengthened our capital position with our 7.75% series B term preferred stock offering,” managing partner Tom Majewski said on the company’s second quarter ended June 30 earnings conference call on Tuesday.

“The new preferred stock is due in 2028 and we received net proceeds from the offering of $31.2 million, which includes the full exercise and closing of the underwriter’s overallotment or greenshoe option,” Majewski said.

“We are well positioned to deploy the proceeds opportunistically into additional CLO debt and equity investments to further increase [net interest income] on a sustainable basis,” Majewski stated in a Tuesday press release.

The externally managed non-diversified closed-end management investment company is based in Greenwich, Conn.

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