Eagle Point Income Company Inc. Announces Offering of Preferred Stock

Rhea-AI Summary

Eagle Point Income Company Inc. announced a public offering of its Series C Term Preferred Stock, rated 'BBB' by Egan-Jones Ratings Company. The offering includes an option for underwriters to purchase additional shares and is expected to list on NYSE under the symbol 'EICC'.

Insights

Financial Analyst

The commencement of an underwritten public offering of Series C Term Preferred Stock by Eagle Point Income Company Inc. is a strategic financial move that warrants attention from various market participants. The issuance of preferred stock typically aims to raise capital for the company without diluting existing shareholders' equity to the same extent as common stock offerings. The 'BBB' rating by Egan-Jones Ratings Company suggests a moderate level of creditworthiness, which may appeal to risk-averse investors seeking stable dividend payments.

Furthermore, the option granted to underwriters to purchase additional shares could indicate the company's anticipation of strong demand or a strategy to stabilize the price post-listing. The involvement of reputable financial institutions as joint bookrunners and lead managers could potentially boost investor confidence in the offering. However, it is critical for investors to consider the terms of the Preferred Stock, such as dividend rates and redemption features, as these will impact the investment's risk-return profile.

Market Research Analyst

The expected listing of the Preferred Stock on the New York Stock Exchange under the symbol 'EICC' within 30 days of the original issue date introduces a new investment vehicle into the market. This move may diversify the Company's investor base by attracting those who prioritize income generation and lower volatility compared to common stocks. The market's reception of this new issuance can be indicative of the current appetite for fixed-income securities, especially in the context of the broader economic climate and interest rate environment.

It is also noteworthy to consider the timing of such an offering, as it may reflect the Company's strategic financial planning in response to market conditions or internal capital requirements. The performance of this newly issued Preferred Stock could serve as a bellwether for similar future offerings in the sector, influencing the capital raising strategies of other firms.

Legal Expert

The issuance of Preferred Stock and its subsequent trading on a public exchange necessitates compliance with regulatory requirements, including the filing of a preliminary prospectus supplement and an accompanying prospectus with the SEC. These documents are critical as they provide investors with essential details regarding the investment, including the Company's objectives, risks, charges and expenses. Potential investors must exercise due diligence by reviewing these materials to make informed decisions.

Additionally, the legal framework governing the 30-day option for underwriters to purchase additional shares is an important aspect of the offering. This mechanism often serves to cover over-allotments, which can help in managing supply and demand dynamics post-offering. The legal disclosures in the prospectus can also shed light on the rights of Preferred Stock holders, including voting rights, dividend policies and liquidation preferences, which are significant factors in evaluating the attractiveness of the offering.

GREENWICH, Conn.--(BUSINESS WIRE)-- Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC, EICA, EICB) today announced that it has commenced an underwritten public offering of its Series C Term Preferred Stock (the “Preferred Stock”). The public offering price and other terms of the Preferred Stock are to be determined by negotiations between the Company and the underwriters. The Preferred Stock is rated ‘BBB’ by Egan-Jones Ratings Company, an independent rating agency. In addition, the Company plans to grant the underwriters a 30-day option to purchase additional shares of Preferred Stock on the same terms and conditions.

The Preferred Stock is expected to be listed on the New York Stock Exchange and to trade thereon within 30 days of the original issue date under the symbol “EICC.”

Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc. and Piper Sandler & Co. are acting as joint bookrunners for the offering. InspereX LLC and Wedbush Securities Inc. are acting as lead managers for the offering.

Investors should consider the Company’s investment objectives, risks, charges, and expenses carefully before investing. The preliminary prospectus supplement dated March 26, 2024 and the accompanying prospectus dated June 29, 2023, which have been filed with the Securities and Exchange Commission (“SEC”), contain this and other information about the Company and should be read carefully before investing. The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The preliminary prospectus supplement, the accompanying prospectus and this press release are not offers to sell these securities and are not soliciting an offer to buy these securities in any state where such offer or sale is not permitted.

A shelf registration statement relating to these securities is on file with and has been declared effective by the SEC. The offering may be made only by means of a prospectus and a related prospectus supplement, copies of which may be obtained by writing Ladenburg Thalmann & Co. Inc. at 640 Fifth Avenue, 4th Floor, New York, New York 10019, by calling toll-free 1-800-573-2541 or by sending an e-mail to: prospectus@ladenburg.com; copies may also be obtained for free by visiting EDGAR on the SEC’s website at http://www.sec.gov.

Egan-Jones Ratings Company is a nationally recognized statistical rating organization (NRSRO). A security rating is not a recommendation to buy, sell or hold securities, and any such rating may be subject to revision or withdrawal at any time by the applicable rating agency.

ABOUT EAGLE POINT INCOME COMPANY

The Company is a 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 collateralized loan obligations (“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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240326494066/en/

Investor Relations:

ICR

203-340-8510

ir@EaglePointIncome.com

www.eaglepointincome.com

Source: Eagle Point Income Company Inc.

FAQ

What type of stock is Eagle Point Income Company Inc. offering in the public offering?

Eagle Point Income Company Inc. is offering its Series C Term Preferred Stock in the public offering.

What is the rating of the Preferred Stock offered by Eagle Point Income Company Inc.?

The Preferred Stock offered by Eagle Point Income Company Inc. is rated 'BBB' by Egan-Jones Ratings Company.

Which underwriters are involved in the public offering of Eagle Point Income Company Inc.?

Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc., and Piper Sandler & Co. are acting as joint bookrunners for the offering. InspereX and Wedbush Securities Inc. are acting as lead managers for the offering.

Where is the Preferred Stock expected to be listed for trading?

The Preferred Stock is expected to be listed on the New York Stock Exchange (NYSE) and to trade under the symbol 'EICC' within 30 days of the original issue date.

What documents should investors review before investing in the Company's offering?

Investors should review the preliminary prospectus supplement dated March 26, 2024, and the accompanying prospectus dated June 29, 2023, filed with the Securities and Exchange Commission (SEC) before investing.