Eagle Point Credit Q1 net investment income increases from Q4 (NYSE:ECC)

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Eagle Points Credit (NYSE: ECC) First-quarter adjusted net investment income exceeded its overall regular common distribution for the quarter and reduced its overall funding costs in the quarter, the company said Tuesday.

NAV of $12.64 per share as of March 31 versus $13.39 as of December 31, 2021.

Net investment income and realized capital losses in the first quarter were $0.30 per share, including $0.10 of non-recurring expenses and losses. Excluding one-time items, Q1 net investment income and realized capital losses were $0.40, up from $0.37 in Q4 2021.

Total common stock distributions for the quarter were $14.3 million compared to $57.7 million in the prior year quarter.

The weighted average effective yield of the portfolio of loan obligations guaranteed by Eagle Point Credit (ECC) (excluding called CLOs), on an amortized cost basis, was 16.78% at March 31, 2022, compared to 17.04% at December 31, 2021.

The company deployed $66.3 million of net capital in equity and CLO debt investments and received $41.1 million in recurring cash distributions from its investment portfolio in the first quarter of 2022. This compares $24.7 million deployed and $47.8 million received in recurring cash distributions in the fourth quarter of 2021.

During the quarter, Eagle Point Credit (ECC) completed an offering of ECCV Notes at 5.375% at its lowest cost of capital to date. The proceeds were used to retire the higher-cost ECCB preferred stock, ECCY notes, and half of its ECCX notes, “significantly reducing the company’s overall funding costs on a forward-looking basis,” CEO Thomas said. Majewski.

Conference call at 10:00 a.m. ET.

Earlier, Eagle Point Credit (ECC) releases its first quarter results

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