Sound Point Meridian Capital, Inc. Announces 9.1% Increase in First Calendar Quarter 2025 Common Distributions and Declares Preferred Distributions

Rhea-AI Summary

Sound Point Meridian Capital (NYSE: SPMC) has announced a 9.1% increase in its monthly common stock distribution to $0.24 per share for the first calendar quarter of 2025, up from the previous $0.22. The distributions will be paid on January 31, February 28, and March 31, 2025. Additionally, the company declared distributions of $0.1667 per share on its 8.00% Series A Term Preferred Stock, reflecting an annual rate of 8.00% on the $25 liquidation preference, payable from December 2024 through March 2025.

Positive

• 9.1% increase in monthly common stock distribution from $0.22 to $0.24 per share
• Consistent preferred stock distributions maintaining 8.00% annual rate

Negative

• None.

Insights

Financial Analyst

This dividend increase announcement represents a significant development for SPMC investors. The 9.1% hike in monthly distributions from $0.22 to $0.24 per common share signals strong underlying portfolio performance and management's confidence in sustainable income generation. The annualized common dividend now amounts to $2.88 per share.

Additionally, the company maintains its 8% annual distribution rate on the Series A Preferred shares, providing $0.1667 monthly payments on the $25 liquidation preference. This dual-track distribution strategy offers investors options between higher-yielding preferred shares with fixed income characteristics and common shares with potential for distribution growth.

The consistent payment schedule and clear communication of tax implications demonstrate solid corporate governance and shareholder-friendly policies. For income-focused investors, this increase materially enhances the investment proposition of SPMC's common shares.

NEW YORK--(BUSINESS WIRE)-- Sound Point Meridian Capital, Inc. (NYSE: SPMC, SPMA), a closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the “Company”), today is pleased to announce the declaration of distributions on shares of the Company’s common and preferred stock for the first calendar quarter of 2025 (fiscal fourth quarter 2025).

The Company is declaring a monthly distribution of $0.24 per share on its common stock, a 9.1% increase from the prior monthly distribution of $0.22 per share, on each of January 31, 2025, February 28, 2025, and March 31, 2025.

The distributions are payable based on the following schedule:

Record Date	Payable Date	Amount per Common Share
January 15, 2025	January 31, 2025	$0.24
February 14, 2025	February 28, 2025	$0.24
March 14, 2025	March 31, 2025	$0.24

Distributions on common stock are generally paid from net investment income (“NII”) (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 2024 calendar year.

The Company is also pleased to announce the declaration of distributions on shares of the Company’s 8.00% Series A Term Preferred Stock due 2029 (the “Series A Term Preferred Stock”) as follows:

Record Date	Payable Date	Amount per Preferred Share
December 13, 2024	December 31, 2024	$0.1667
January 15, 2025	January 31, 2025	$0.1667
February 14, 2025	February 28, 2025	$0.1667
March 14, 2025	March 31, 2025	$0.1667

The distributions on the Series A Term Preferred Stock reflect an annual distribution rate of 8.00% of the $25 liquidation preference per share.

About the Company

The Company is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation (“CLO”) equity and mezzanine tranches of predominately U.S. dollar-denominated CLOs backed by corporate leveraged loans issued primarily to U.S. obligors. The Company is externally managed and advised by Sound Point Meridian Management Company, LLC, a Delaware limited liability company. For additional information, visit https://www.soundpointmeridiancap.com.

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 Company’s filings with the Securities and Exchange Commission. 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/20241107544659/en/

Investor Relations:



Garrett Edson – ICR; Julie Smith – Sound Point Capital

(833) 217-6665

ir@soundpointmeridiancap.com

www.soundpointmeridiancap.com

Source: Sound Point Meridian Capital, Inc.

FAQ

What is the new monthly distribution amount for SPMC common stock in Q1 2025?

Sound Point Meridian Capital (SPMC) will distribute $0.24 per share monthly for Q1 2025, payable on January 31, February 28, and March 31, 2025.

How much did SPMC increase its common stock distribution for Q1 2025?

SPMC increased its monthly common stock distribution by 9.1%, from $0.22 to $0.24 per share.

What is the distribution rate for SPMC's Series A Preferred Stock in Q1 2025?

SPMC's Series A Preferred Stock maintains an 8.00% annual distribution rate, with monthly payments of $0.1667 per share based on a $25 liquidation preference.