Eagle Point Credit Company Inc. Soars on Strong Fourth Quarter Results

As an investor, I'm always on the lookout for companies that can deliver consistent, strong financial performance. Eagle Point Credit Company Inc. (ECC) has certainly caught my attention with its impressive fourth quarter and year-end 2024 financial results. Let's dive into the key takeaways and explore what makes this company a compelling investment opportunity.



Strong Net Asset Value (NAV) and Net Investment Income (NII)

ECC reported a NAV per common share of $8.38 as of December 31, 2024, a slight decrease from the previous quarter but still a solid performance. The company's NII for the quarter was $0.24 per weighted average common share, net of a non-recurring expense related to the issuance of the Company's 7.75% Notes due 2030. Excluding realized capital losses, NII less realized capital losses was $0.12 per weighted average common share, which compares favorably to the previous quarter.

Cash Distributions and Capital Deployment

ECC received $82.0 million in recurring cash distributions from its investment portfolio, exceeding its aggregate distributions on its common stock and operating costs for the quarter. The company also deployed $223.5 million in net capital into CLO equity, CLO debt, loan accumulation facilities, and other investments. The weighted average effective yield of new CLO equity investments made by the Company during the quarter was 17.8% as measured at the time of investment.

CLO Portfolio Yields and Debt-to-Asset Ratio

As of December 31, 2024, the weighted average effective yield of the Company's CLO equity portfolio (excluding called CLOs), based on amortized cost, was 14.61%. The weighted average expected yield of the Company's CLO equity portfolio, based on fair market value, was 19.31%. ECC's debt-to-asset ratio stood at approximately 38.0% as of December 31, 2024, indicating a relatively low level of debt compared to its total assets.



Strategic Issuance of Common Stock and Preferred Stock

ECC's strategy of issuing common stock at a premium to NAV and perpetual preferred stock has contributed to its competitive advantage. The company generated $0.05 per share of NAV accretion during the quarter through the issuance of common stock. Additionally, ECC has continued to issue Series D and Series AA/AB perpetual preferred stock, which it considers to be a unique competitive advantage over other traded CLO funds.

Looking Ahead

ECC's strong fourth quarter and year-end 2024 financial results demonstrate the company's ability to generate consistent, high-quality returns for its shareholders. With a solid balance sheet, a well-managed portfolio, and a strategic approach to capital raising, ECC is well-positioned to continue its impressive performance in the coming quarters.

As an investor, I'm confident that ECC's strong fundamentals and strategic approach make it an attractive investment opportunity. By staying focused on its core competencies and maintaining a disciplined approach to portfolio management, ECC is poised to continue delivering strong returns for its shareholders.