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Ellington Credit Postpones its Annual Meeting of Shareholders

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Ellington Credit Company (NYSE: EARN) has announced the postponement of its 2024 Annual Meeting of Shareholders, originally scheduled for October 30, 2024. The delay aims to allow more time for proxy solicitation. While over 90% of received votes support the Conversion Proposals to transform into a closed-end investment company, insufficient total voter turnout has prevented reaching the required threshold for approval. The Board of Trustees, ISS, and Glass Lewis all recommend shareholders vote 'FOR' all proposals. The August 6, 2024 record date remains unchanged, and previously cast votes will still be counted at the rescheduled meeting.

Ellington Credit Company (NYSE: EARN) ha annunciato il rinvio della sua Assemblea Annuale degli Azionisti del 2024, originariamente fissata per il 30 ottobre 2024. Il rinvio ha lo scopo di consentire più tempo per la sollecitazione di deleghe. Sebbene oltre il 90% dei voti ricevuti sostenga le Proposte di Conversione per trasformarsi in una società di investimento chiusa, l'insufficiente affluenza totale degli elettori ha impedito di raggiungere la soglia richiesta per l'approvazione. Il Consiglio di Amministrazione, ISS e Glass Lewis raccomandano a tutti gli azionisti di votare 'A FAVORE' di tutte le proposte. La data di registrazione del 6 agosto 2024 rimane invariata e i voti espressi in precedenza saranno ancora conteggiati durante l'assemblea rinviata.

Ellington Credit Company (NYSE: EARN) ha anunciado el aplazamiento de su Junta Anual de Accionistas de 2024, originalmente programada para el 30 de octubre de 2024. El retraso tiene como objetivo permitir más tiempo para la solicitud de poder. Aunque más del 90% de los votos recibidos apoyan las Propuestas de Conversión para transformarse en una empresa de inversión cerrada, la insuficiente participación total de los votantes ha impedido alcanzar el umbral requerido para su aprobación. La Junta de Fideicomisarios, ISS y Glass Lewis recomiendan a los accionistas votar 'A FAVOR' de todas las propuestas. La fecha de registro del 6 de agosto de 2024 permanece sin cambios, y los votos emitidos anteriormente aún se contarás en la reunión reprogramada.

엘링턴 크레딧 컴퍼니 (NYSE: EARN)가 2024년 주주총회의 연기를 발표했습니다. 원래 2024년 10월 30일로 예정되었던 이 회의는 위임장을 요청할 시간을 더 가질 수 있도록 연기되었습니다. 받은 투표의 90% 이상이 전환 제안서를 지원하고 있지만, 총 투표자의 수가 부족하여 승인에 필요한 기준에 도달하지 못했습니다. 이사회, ISS, Glass Lewis 모두 모든 제안서에 대해 주주들이 '찬성' 투표를 할 것을 권장합니다. 2024년 8월 6일의 기록일자는 변경되지 않으며, 이전에 투표한 것들은 재조정된 회의에서 여전히 집계될 것입니다.

La société Ellington Credit Company (NYSE: EARN) a annoncé le report de sa Réunion Annuelle des Actionnaires pour 2024, initialement prévue le 30 octobre 2024. Ce retard vise à permettre plus de temps pour la sollicitation par procuration. Bien que plus de 90 % des votes reçus soutiennent les Propositions de Conversion pour se transformer en société d'investissement fermée, un taux de participation insuffisant des électeurs a empêché d'atteindre le seuil requis pour l'approbation. Le Conseil d'administration, ISS et Glass Lewis recommandent à tous les actionnaires de voter 'POUR' toutes les propositions. La date d'enregistrement du 6 août 2024 reste inchangée et les votes précédemment exprimés seront toujours comptabilisés lors de la réunion reprogrammée.

Die Ellington Credit Company (NYSE: EARN) hat die Verschiebung ihrer Hauptversammlung der Aktionäre für 2024 angekündigt, die ursprünglich für den 30. Oktober 2024 angesetzt war. Die Verzögerung soll mehr Zeit für die Proxy-Solizitation ermöglichen. Während über 90% der abgegebenen Stimmen die Umwandlungsbeschlüsse unterstützen, hat die unzureichende Gesamtwahlbeteiligung eine Erreichung der erforderlichen Zustimmungsschwelle verhindert. Der Vorstand, ISS und Glass Lewis empfehlen allen Aktionären, für alle Vorschläge zu stimmen. Das Aufnahmedatum vom 6. August 2024 bleibt unverändert, und bereits abgegebene Stimmen werden während der neu anberaumten Sitzung weiterhin gezählt.

Positive
  • 90% of received votes support the Conversion Proposals
  • Unanimous support from Board of Trustees and leading proxy advisory firms
Negative
  • Insufficient shareholder participation forcing meeting postponement
  • Delay in implementing strategic transformation due to low voter turnout

Insights

The postponement of EARN's Annual Meeting amid a critical vote on conversion to a regulated investment company structure is strategically significant. While 90% of current votes favor the conversion proposals, insufficient total voter turnout has prevented reaching the required threshold. This conversion would fundamentally transform EARN's business model and tax treatment.

The strong endorsement from ISS and Glass Lewis, coupled with Board support, signals potential benefits from this structural change. A successful conversion would allow EARN to operate under the Investment Company Act of 1940, providing additional regulatory oversight and potentially broader investment opportunities. The RIC tax status could offer more favorable tax treatment, directly impacting shareholder returns.

Company’s Board of Trustees, ISS, and Glass Lewis All Recommend Shareholders Vote “For” Strategic Transformation

OLD GREENWICH, Conn.--(BUSINESS WIRE)-- Ellington Credit Company (NYSE: EARN) (the "Company") today announced the postponement of its 2024 Annual Meeting of Shareholders (the "Annual Meeting"), scheduled for October 30, 2024. The Annual Meeting is being postponed to provide the Company further time to solicit proxies from the Company’s shareholders.

The rescheduled date for the Annual Meeting will be determined by the Company’s Board of Trustees (the “Board”) in accordance with the applicable provisions of the Company's Declaration of Trust and will be announced in the near future.

As of the close of business yesterday, over 90% of votes received have been cast in favor of each of the proposals that would allow the Company to convert to a closed-end investment company registered under the Investment Company Act of 1940, as amended, which would be treated as a regulated investment company for federal income tax purposes under the Internal Revenue Code of 1986, as amended (such proposals, the "Conversion Proposals"). However, given the number of shareholders who have not yet voted at all, the Conversion Proposals have not yet received the number of affirmative votes required for passage.

The record date of the Annual Meeting, August 6, 2024 (the “Record Date”), remains unchanged. Shareholders who have already cast their votes do not need to take any action, unless they wish to change or revoke their prior proxy or voting instructions, and their votes will be counted at the rescheduled Annual Meeting.

The Company’s Board of Trustees, along with leading independent proxy advisory firms Institutional Shareholder Services Inc., and Glass, Lewis & Co., recommend that shareholders vote “FOR” all of the proposals included in the Proxy Statement.

ADDITIONAL INFORMATION AND WHERE TO FIND IT

The Proxy Statement was mailed to all shareholders of record as of the close of business on the Record Date that were entitled to receive notice of and vote at the Annual Meeting. In addition, the Proxy Statement is available free of charge at the SEC’s website located at www.sec.gov.

BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS SUCH DOCUMENTS AND FILINGS CONTAIN IMPORTANT INFORMATION ABOUT THE ANNUAL MEETING AND THE MATTERS TO BE ACTED UPON AT THE ANNUAL MEETING.

About Ellington Credit Company

Ellington Credit Company, formerly known as Ellington Residential Mortgage REIT, was initially formed as a real estate investment trust ("REIT") that invested primarily in residential mortgage-backed securities ("MBS"). On March 29, 2024, the Company’s Board approved a strategic transformation of its investment strategy to focus on corporate collateralized loan obligations (“CLOs”), with an emphasis on mezzanine debt and equity tranches (the "Strategic Transformation"). In connection with this transformation, the Company revoked its election to be taxed as a REIT effective January 1, 2024, and rebranded to Ellington Credit Company. The Company intends, subject to shareholder approval of the Conversion Proposals, to convert to a closed-end investment company registered under the Investment Company Act of 1940, as amended, which would be treated as a regulated investment company for federal income tax purposes under the Internal Revenue Code of 1986, as amended, and complete its transition from an MBS-focused company to a CLO-focused company later in 2024.

Ellington Credit Company is externally managed and advised by Ellington Credit Company Management LLC, an affiliate of Ellington Management Group, L.L.C. (collectively, “Ellington”).

Important Additional Information and Where to Find It

In connection with the Conversion Proposals and the Annual Meeting, the Company has filed with the SEC a definitive proxy statement on Schedule 14A, as amended by Amendment No. 1 thereto filed with the SEC on October 1, 2024 and Amendment No. 2 thereto filed with the SEC on October 23, 2024 (as further amended, supplemented or otherwise modified from to time, collectively, the "Proxy Statement"). The Proxy Statement contains important information about the Company, the Conversion Proposals and related matters. This release is for information purposes only and is not an offer to sell any securities and is not soliciting an offer to buy any securities. The information contained in this release does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever.

This release relates to the Proxy Statement that the Company has filed with the SEC and mailed to shareholders. The information relates to the proposals for which the Company seeks shareholder approval in the Proxy Statement, including the Conversion Proposals (the “Proposals”). The Proxy Statement contains important information about the Company, Ellington, the Proposals and related matters. Shareholders are urged to read carefully and in their entirety all relevant documents filed with the SEC, including the Proxy Statement, as well as any amendments or supplements thereto, because they contain important information about the Company, Ellington, the Proposals and related matters. SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS THAT ARE FILED OR MAY BE FILED BY THE COMPANY WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, AND THE PROPOSALS. Shareholders will be able to obtain the documents filed with the SEC free of charge from the SEC’s website (www.sec.gov). Copies of the documents filed by the Company with the SEC are also available free of charge on the Company’s website at www.ellingtoncredit.com.

Participants in the Solicitation Relating to the Conversion Proposals

The Company and certain of its respective directors and executive officers and certain other affiliates of the Company may be deemed to be participants in the solicitation of proxies from the common shareholders of the Company in respect of the Conversion Proposals. Information regarding the Company and its trustees and executive officers and their ownership of common stock of the Company can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 12, 2024 and amended on April 12, 2024, and the Proxy Statement. These documents are available free of charge on the SEC’s website and from the Company, using the sources indicated above.

Cautionary Statement Regarding Forward-Looking Statements

This communication may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical in nature and can be identified by words such as "anticipate," "estimate," "will," "should," "may," "expect," "project," "believe," "intend," "seek," "plan" and similar expressions or their negative forms, or by references to strategy, plans, or intentions. Forward-looking statements are based on our beliefs, assumptions and expectations of our future operations, business strategies, performance, financial condition, liquidity and prospects, taking into account information currently available to us. These beliefs, assumptions, and expectations are subject to numerous risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations and strategies may vary materially from those expressed or implied in our forward-looking statements. The following factors are examples of those that could cause actual results to vary from those stated or implied by our forward-looking statements: changes in interest rates and the market value of the Company's investments, market volatility, changes in the default rates on corporate loans, the Company's ability to borrow to finance its assets, changes in government regulations affecting the Company's business, the Company's ability to maintain its exclusion from registration under the Investment Company Act of 1940, our ability to pivot our investment strategy to focus on collateralized loan obligations ("CLOs"), a deterioration in the CLO market, our ability to utilize our net operating loss carryforwards, our ability to convert to a closed end fund/RIC, including our ability to obtain shareholder approval of our conversion to a closed end fund/RIC, and other changes in market conditions and economic trends, such as changes to fiscal or monetary policy, heightened inflation, slower growth or recession, and currency fluctuations. Furthermore, as stated above, forward-looking statements are subject to numerous risks and uncertainties, including, among other things, those described under Item 1A of the Company's Annual Report on Form 10-K, which can be accessed through the link to the Company's SEC filings under "For Investors" on the Company's website (at www.ellingtoncredit.com) or at the SEC's website (www.sec.gov). Other risks, uncertainties, and factors that could cause actual results to differ materially from those projected or implied may be described from time to time in reports the Company files with the SEC, including reports on Forms 10-Q, 10-K and 8-K. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Investors:

Ellington Credit Company

Investor Relations

(203) 409-3773

info@ellingtoncredit.com



or



Media:

Amanda Shpiner/Grace Cartwright

Gasthalter & Co.

for Ellington Credit Company

(212) 257-4170

Ellington@gasthalter.com

Source: Ellington Credit Company

FAQ

Why did Ellington Credit (EARN) postpone its 2024 Annual Meeting?

Ellington Credit postponed its 2024 Annual Meeting to allow more time for proxy solicitation, as the Conversion Proposals haven't received enough affirmative votes for passage despite 90% support from those who voted.

What percentage of votes support EARN's Conversion Proposals?

Over 90% of votes received support Ellington Credit's Conversion Proposals to convert to a closed-end investment company.

Will previously cast votes for EARN's Annual Meeting remain valid?

Yes, shareholders who have already cast their votes do not need to take any action, and their votes will be counted at the rescheduled Annual Meeting unless they choose to change them.

What is the record date for EARN's postponed Annual Meeting?

The record date remains August 6, 2024, unchanged from the original meeting date.

Ellington Credit Company

NYSE:EARN

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168.42M
28.34M
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23.8%
2.11%
Asset Management
Real Estate Investment Trusts
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United States of America
OLD GREENWICH