Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC,
EICA) today announced financial results for the quarter and fiscal
year ended December 31, 2021, net asset value (“NAV”) as of
December 31, 2021 and certain additional activity through February
11, 2022.
FOURTH QUARTER AND FULL YEAR 2021 HIGHLIGHTS
- Net investment income (“NII”) and realized capital gains of
$0.14 per weighted average common share.1 The Company’s NII and
realized gain per common share for the quarter ended December 31,
2021 is net of non-recurring expenses of $0.23 per common
share.2
- NAV per common share of $16.76 as of December 31, 2021.
- Fourth quarter 2021 GAAP net loss (inclusive of unrealized
mark-to-market losses) of $1.6 million, or ($0.24) per weighted
average common share.
- Weighted average effective yield of the Company’s
collateralized loan obligation (“CLO”) debt and equity portfolio,
based on amortized cost, was 10.77% as of December 31, 2021.
Weighted average expected yield of the Company’s CLO portfolio,
based on fair market value, was 11.10% as of December 31,
2021.3
- Deployed $34.9 million in net capital in the fourth quarter of
2021.
- Completed an underwritten public offering, including a full
exercise of the underwriters’ over-allotment option, of 1.4 million
shares of 5.00% Series A Term Preferred Stock due 2026 (NYSE: EICA)
(the “Series A Term Preferred Stock”), resulting in net proceeds of
approximately $33.6 million.
- Completed an underwritten public offering of 648,000 shares of
common stock at a public offering price of $18.45 per share,
including a partial exercise of the underwriters’ overallotment
option, resulting in net proceeds of approximately $11.2
million.
SUBSEQUENT EVENTS
- NAV per common share estimated to be between $16.89 and $16.93
as of January 31, 2022.
- As of February 11, 2022, the Company had approximately $7.2
million of cash and capacity on its revolving credit facility
available for investment.
- From January 1, 2022 to February 11, 2022, issued 38,773 shares
of common stock and 121,649 shares of Series A Term Preferred Stock
pursuant to the Company’s “at-the-market” offering program for
total net proceeds of approximately $3.7 million.
- Paid a special distribution to common stockholders of $0.20 per
share on January 24, 2022 to stockholders of record as of December
23, 2021.
- Declared a 4% increase in common stock monthly distributions to
$0.125 per share beginning in April 2022.
“Our fourth quarter performance capped off a successful year for
the Company. We continued to generate strong cash flows during the
quarter, and raised nearly $45 million in capital that we have been
deploying into new CLO debt and equity investments to further
increase our NII,” said Thomas Majewski, Chairman and Chief
Executive Officer. “For the quarter, we generated NII and realized
capital gains (excluding non-recurring expenses related to our
issuance of preferred stock) that were in line with our common
distribution level. Overall, we are pleased with our results in
2021, as we materially grew our portfolio, increased our monthly
common distribution on three occasions and also declared a special
distribution. Looking ahead, we remain confident in the Company’s
positioning and ability to generate attractive risk-adjusted
returns for our shareholders.”
FOURTH QUARTER 2021 RESULTS
The Company’s NII and realized capital gains for the quarter
ended December 31, 2021 was $0.14 per weighted average common
share. This compared to $0.31 of NII and realized capital losses
per weighted average common share for the quarter ended September
30, 2021 and $0.29 of NII and realized capital gains per weighted
average common share for the quarter ended December 31, 2020.
NII and realized capital gains for the quarter ended December
31, 2021 is net of non-recurring expenses of $0.23 per weighted
average common share, which includes $0.21 per weighted average
common share related to the issuance of the Company’s Series A Term
Preferred Stock, and $0.02 per weighted average common share
related to estimated excise tax expense and accelerated ATM program
costs.
For the quarter ended December 31, 2021, the Company recorded
GAAP net loss of $1.6 million, or ($0.24) per weighted average
common share. The net loss was comprised of total investment income
of $3.7 million and net realized gain on investments of $0.2
million, offset by unrealized depreciation (or unrealized
mark-to-market losses in the value of the Company’s investments and
certain liabilities at fair value) of $2.6 million and total
expenses of $2.9 million.
NAV as of December 31, 2021 was $115.3 million, or $16.76 per
common share, which is $0.93 lower than the Company’s NAV per
common share as of September 30, 2021, and $0.13 lower than the
Company’s NAV per common share as of December 31, 2020.
During the quarter ended December 31, 2021, the Company deployed
$34.9 million in net capital.
As of December 31, 2021, the weighted average effective yield on
the Company’s CLO debt and equity portfolio, based on amortized
cost, was 10.77%, compared to 10.27% as of September 30, 2021 and
9.03% as of December 31, 2020.
PORTFOLIO STATUS
As of December 31, 2021, on a look-through basis, and based on
the most recent CLO trustee reports received by such date, the
Company had indirect exposure to approximately 1,449 unique
corporate obligors. The largest look-through obligor represented
0.9% of the Company’s CLO debt and equity portfolio. The top-ten
largest look-through obligors together represented 5.7% of the
Company’s CLO debt and equity portfolio.
As of December 31, 2021, the Company had outstanding borrowings
from the revolving credit facility and preferred securities which
totaled approximately 32% of total assets (less current
liabilities). Over the long term, management expects the Company to
operate under normal market conditions generally with leverage
between 25% and 35% of total assets (less current liabilities).
Based on applicable market conditions at any given time, or should
significant opportunities present themselves, the Company may incur
leverage in excess of this amount, subject to applicable regulatory
and contractual limits.
FIRST QUARTER 2022 PORTFOLIO ACTIVITY THROUGH FEBRUARY 11,
2022 AND OTHER UPDATES
As of February 11, 2022, the Company had approximately $7.2
million of cash and capacity on its revolving credit facility
available for investment.
Pursuant to the Company’s “at-the-market” offerings, the Company
issued 38,773 shares of common stock and 121,649 shares of Series A
Term Preferred Stock from January 1, 2022 to February 11, 2022 for
total net proceeds to the Company of approximately $3.7
million.
As previously published on the Company’s website, management’s
estimate of the Company’s range of NAV per common share as of
January 31, 2022 was $16.89 to $16.93.
DISTRIBUTIONS
The Company paid a monthly distribution of $0.12 per common
share on January 31, 2022 to stockholders of record as of January
11, 2022. Additionally, and as previously announced, the Company
declared distributions of $0.12 per share of common stock payable
on February 28, 2022 and March 31, 2022 to stockholders of record
as of February 8, 2022 and March 11, 2022, respectively. The
Company subsequently declared distributions of $0.125 per share of
common stock payable on April 29, 2022, May 31, 2022 and June 30,
2022 to stockholders of record as of April 11, 2022, May 11, 2022
and June 10, 2022, respectively. The ability of the Company to
declare and pay distributions is subject to a number of factors,
including the Company’s results of operations.
The Company paid a monthly distribution of $0.104167 per share
of the Company’s Series A Term Preferred Stock on January 31, 2022
to stockholders of record on January 11, 2022. The distribution
represented a 5.00% annualized rate, based on the $25 liquidation
preference per share for the Series A Term Preferred Stock.
Additionally, and as previously announced, the Company declared
distributions of $0.104167 per share on its Series A Term Preferred
Stock, payable on February 28, 2022, March 31, 2022, April 29,
2022, May 31, 2022 and June 30, 2022 to stockholders of record as
of February 8, 2022, March 11, 2022, April 11, 2022, May 11, 2022
and June 10, 2022, respectively.
Distributions on stock are generally paid from net investment
income (regular interest and dividends) and may also include
capital gains and/or a return of capital. The specific tax
characteristics of the distributions will be reported to the
Company’s stockholders on Form 1099 after the end of the calendar
year.
SPECIAL DISTRIBUTION
For the Company’s tax year ended December 31, 2021, the Company
estimates taxable income will exceed the aggregate amount
distributed to common stockholders for the same time period. As a
result, the Company paid a special distribution of $0.20 per common
share on January 24, 2022 to stockholders of record as of December
23, 2021. The Company’s final taxable income and the actual amount
required to be distributed in respect of the tax year ended
December 31, 2021 will be finally determined when the Company files
its final tax returns. The Company has incurred a 4% excise tax on
the estimated amount of remaining undistributed taxable income
pertaining to the 2021 tax year which is estimated to be $0.01 per
weighted average common share and which is recorded as a liability
in the Company’s December 31, 2021 financial results.
CONFERENCE CALL
The Company will host a conference call at 11:30 a.m. (Eastern
Time) today to discuss the Company’s financial results for the
quarter and year ended December 31, 2021, as well as a portfolio
update.
All interested parties may participate in the conference call by
dialing (877) 407-0789 (domestic) or (201) 689-8562
(international). Please reference Conference ID 13726314 when
calling and you are invited to dial in approximately 10 to 15
minutes prior to the start of the call.
A live webcast will also be available on the Company’s website
(www.eaglepointincome.com). Please go to the Investor Relations
section at least 15 minutes prior to the call to register, download
and install any necessary audio software.
An archived replay of the call will be available shortly
afterwards until March 17, 2022. To hear the replay, please dial
(844) 512-2921 (toll-free) or (412) 317-6671 (international). For
the replay, enter Conference ID 13726314.
ADDITIONAL INFORMATION
The Company has made available on the investor relations section
of its website, www.eaglepointincome.com (in the financial
statements and reports section), its 2021 Annual Report, which
includes the Company’s audited financial statements as of and for
the period ended December 31, 2021. The Company also published on
its website (in the presentations and events section) an investor
presentation, which contains additional information about the
Company and its portfolio as of and for the quarter ended December
31, 2021. The Company has also filed these reports with the
Securities and Exchange Commission (“SEC”).
ABOUT EAGLE POINT INCOME COMPANY
The Company is a non-diversified, closed-end management
investment company. The Company’s primary investment objective is
to generate high current income, with a secondary objective to
generate capital appreciation, by investing primarily in junior
debt tranches of CLOs. In addition, the Company may invest up to
35% of its total assets (at the time of investment) in CLO equity
securities. The Company is externally managed and advised by Eagle
Point Income Management LLC.
The Company makes certain unaudited portfolio information
available each month on its website in addition to making certain
other unaudited financial information available on its website
(www.eaglepointincome.com). This information includes (1) an
estimated range of the Company’s net investment income (“NII”) and
realized capital gains or losses per share of common stock for each
calendar quarter end, generally made available within the first
fifteen days after the applicable calendar month end, (2) an
estimated range of the Company’s net asset value (“NAV”) per share
of common stock for the prior month end and certain additional
portfolio-level information, generally made available within the
first fifteen days after the applicable calendar month end, and (3)
during the latter part of each month, an updated estimate of NAV,
if applicable, and, with respect to each calendar quarter end, an
updated estimate of the Company’s NII and realized capital gains or
losses per share for the applicable quarter, if available.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described in the
prospectus and the Company’s other filings with the SEC. The
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the
date of this press release.
Source: Eagle Point Income Company Inc.
____________________________ 1 “Per weighted common average
share” data are on a weighted average basis based on the average
daily number of shares of common stock outstanding for the period
and “per share” refers to per share of the Company’s common stock.
2 Includes $0.21 per weighted average common share of offering
expenses related to the issuance of the Company’s Series A Term
Preferred Stock, and $0.02 per weighted average common share of
estimated excise tax expense and accelerated at-the-market (“ATM”)
program costs. 3 Weighted average effective yield is based on an
investment’s amortized cost whereas weighted average expected yield
is based on an investment’s fair market value as of the applicable
period end as disclosed in the Company’s financial statements,
which is subject to change from period to period. Please refer to
the Company’s 2021 Annual Report for additional disclosures.
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Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
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