Eagle Point Income Company Inc. Prices Offering of Preferred Stock

Rhea-AI Summary

Eagle Point Income Company Inc. announced a public offering of 1,220,000 shares of its 8.00% Series C Term Preferred Stock at a price of $25 per share, aiming to raise approximately $29.3 million. The offering is rated 'BBB' by Egan-Jones Ratings Company and includes an option for underwriters to purchase additional shares. The Company plans to list the Preferred Stock on the NYSE under the symbol 'EICC'.

Insights

Financial Analyst

Eagle Point Income Company Inc.'s recent pricing of its Series C Term Preferred Stock is a strategic move to raise capital. The offering size and the fixed 8.00% dividend rate are competitive, especially considering the current interest rate environment. The 'BBB' rating by Egan-Jones suggests a moderate level of creditworthiness, which could appeal to risk-averse investors seeking stable returns. However, the market's reception will hinge on the company's performance, sector outlook and prevailing economic conditions.

The potential for an additional 183,000 shares through the underwriters' option could indicate confidence in the offering's success, but it also introduces the possibility of dilution. The net proceeds of approximately $29.3 million will likely be used to finance the company's operations or pay down existing debt, which could improve its financial stability and potentially enhance shareholder value in the long term.

Market Research Analyst

The decision to list the Preferred Stock on the New York Stock Exchange under the symbol 'EICC' within 30 days of the issue date is a significant step towards increasing liquidity and visibility in the market. This move could attract a broader investor base and potentially improve trading volumes. The involvement of established financial institutions as joint bookrunners and lead managers, including Ladenburg Thalmann and Piper Sandler, lends credibility to the offering and may boost investor confidence.

Investors should be aware that Preferred Stock typically ranks higher than common stock in terms of claims on assets and earnings, which provides an additional layer of security in the event of liquidation. However, the fixed dividend rate also means that investors will not benefit from any potential increase in the company's profitability beyond the predetermined dividend yield.

Securities Law Expert

The offering's compliance with SEC regulations and the filing of the preliminary prospectus supplement are important for transparency and investor protection. The investment community should review the prospectus supplement and accompanying prospectus to understand the risks and charges associated with this investment. The legal framework ensures that all material information is disclosed, allowing investors to make informed decisions.

It's also important to note that the rating by an independent agency does not guarantee the investment's performance, but it does provide a benchmark for assessing risk. The legal implications of the underwriters' option to purchase additional shares should be clear in the terms and conditions to avoid any future disputes or misunderstandings.

GREENWICH, Conn.--(BUSINESS WIRE)-- Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC, EICA, EICB) today announced that it has priced an underwritten public offering of 1,220,000 shares of its 8.00% Series C Term Preferred Stock due 2029 (the “Preferred Stock”) at a public offering price of $25 per share, which will result in net proceeds to the Company of approximately $29.3 million after payment of underwriting discounts and commissions and estimated offering expenses payable by the Company. The Preferred Stock is rated ‘BBB’ by Egan-Jones Ratings Company, an independent rating agency. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 183,000 shares of Preferred Stock on the same terms and conditions.

The Preferred Stock offering is expected to close on April 3, 2024, subject to customary closing conditions. The Company intends to list the Preferred Stock on the New York Stock Exchange 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/20240327422408/en/

Investor Relations:

ICR

203-340-8510

ir@EaglePointIncome.com

www.eaglepointincome.com

Source: Eagle Point Income Company Inc.

FAQ

What is the public offering announced by Eagle Point Income Company Inc.?

Eagle Point Income Company Inc. announced a public offering of 1,220,000 shares of its 8.00% Series C Term Preferred Stock at a price of $25 per share.

What is the expected net proceeds to the Company from the public offering?

The public offering is expected to result in net proceeds of approximately $29.3 million for the Company.

Who is the rating agency that rated the Preferred Stock?

The Preferred Stock is rated 'BBB' by Egan-Jones Ratings Company, an independent rating agency.

Which underwriters are involved in the offering?

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.

What is the symbol under which the Preferred Stock will be listed on the NYSE?

The Preferred Stock will be listed on the NYSE under the symbol 'EICC'.