GREENWICH, Conn. - Eagle Point Income Company Inc. (NYSE: EIC, EICA, EICB) has announced the pricing of its underwritten public offering of 1,220,000 shares of 8.00% Series C Term Preferred Stock due 2029 at $25 per share. This move is expected to generate net proceeds of approximately $29.3 million for the company after deducting underwriting discounts and commissions, alongside estimated offering expenses.
The preferred stock has received a 'BBB' rating from Egan-Jones Ratings Company, an independent rating organization. The offering, which is slated to close on April 3, 2024, subject to standard closing conditions, also includes a 30-day option for underwriters to purchase up to an additional 183,000 shares of preferred stock under identical terms and conditions.
Eagle Point Income plans to list the preferred stock on the New York Stock Exchange under the symbol EICC within 30 days from the issue date.
The joint bookrunners for this offering are Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc., and Piper Sandler & Co., with InspereX LLC and Wedbush Securities Inc. serving as lead managers.
Investors are advised to read the company's investment objectives, risks, charges, and expenses carefully before investing. The preliminary prospectus supplement and the accompanying prospectus, which contain detailed information about the company and the offering, have been filed with the Securities and Exchange Commission (SEC) and are accessible to the public.
The company, a diversified closed-end management investment firm, primarily focuses on generating high current income and, to a lesser extent, capital appreciation by investing mainly in junior debt tranches of collateralized loan obligations (CLOs). It may also allocate up to 35% of its total assets in CLO equity securities.
This press release includes "forward-looking statements," which are based on current expectations and projections about future events. The company cautions that these statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ.
The information disclosed in this article is based on a press release statement from Eagle Point Income Company Inc.
InvestingPro Insights
Eagle Point Income Company Inc. (NYSE: EIC) has demonstrated a strong financial performance with several key metrics indicating robust growth and shareholder value. An impressive Revenue Growth of 40.79% over the last twelve months as of Q4 2023, coupled with a substantial Gross Profit Margin of 100% for the same period, showcases the company's ability to maximize its earnings efficiently.
The company's dedication to shareholder returns is evident through its significant Dividend Yield of 14.62%, which is particularly attractive for income-focused investors. This commitment to returning capital to shareholders is a cornerstone of Eagle Point Income's value proposition.
Additionally, the company's stock has been performing well in the market, trading near its 52-week high with a price 99.39% of that peak. This could indicate market confidence in the company's prospects and stability. However, potential investors should be aware of the company's short-term financial obligations, as InvestingPro Tips reveal that these exceed its liquid assets, which could pose liquidity risks.
For those looking to delve deeper into Eagle Point Income's financials, InvestingPro offers additional insights, including InvestingPro Tips such as valuation implications on free cash flow yield and the company's performance over the last three months, which has been strong. There are a total of 6 InvestingPro Tips available for Eagle Point Income, which can provide a more comprehensive understanding of the investment potential and risks associated with the company.
Investors interested in exploring these metrics further can find additional tips and real-time metrics at InvestingPro's dedicated page for Eagle Point Income: https://www.investing.com/pro/EIC. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, further enhancing your investment research capabilities.
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