The following is a summary of the Eagle Point Credit Co LLC (ECC) Q4 2023 Earnings Call Transcript:
Financial Performance:
Eagle Point Credit Company reported a GAAP return of equity of 20.79% and a total return on common stock of 18.92% for 2023.
Net income and realized capital gains for Q4 totaled $0.33 per share.
The company received recurring cash flows on its portfolio in Q4 of $60.7 million, or $0.82 per common share. NAV per share as of December 31 was $9.21, a modest decrease from September 30, but up 2% for the full year.
Aggregate common distributions and expenses for the quarter were exceeded by $0.14 per share.
The company paid $0.48 per share of cash distributions to common shareholders in Q4, taking the total for the year to $1.86 per share.
Business Progress:
Eagle Point deployed $34 million in net capital into new investments for the fourth quarter and raised an additional $47 million of net proceeds through the issuance of a new Series F term preferred stock due in 2029.
The company issued approximately 4.5 million common shares at a premium, generating NAV accretion of $0.03 per share during the quarter.
The company declared additional variable supplemental distributions of $0.02 per share for aggregate monthly common distributions through the end of June 2024.
The company's CLO equity portfolio's weighted-average effective yield was 16.7%, an increase from 16.29% end of September.
The company's CLO equity portfolios weighted average remaining reinvestment period stood at 2.4 years, well above the market average of 1.6 years.
The company is prepared for an increase in third-party new issue CLO activity throughout the year, suggesting promising returns.
Distributions for Q2 have been declared in line with recent distributions, with the variable supplemental distribution to be reviewed on a quarterly basis.
More details: Eagle Point Credit IR
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