GREENWICH, Conn.--(BUSINESS WIRE)--Eagle Point Credit Management LLC (“Eagle Point Credit” or the “Adviser”), a specialist credit asset manager with over $10 billion of assets under management,1 announced that Eagle Point Institutional Income Fund (the “Fund”) generated a net return of 9.9% over the 12-month period ending October 31, 2024.2 In addition, the Fund’s total assets, inclusive of available borrowings under a revolving credit facility, have exceeded $150 million. During the month of October 2024, the Fund completed its 28th consecutive monthly distribution payment, which represented a 10.2% annualized distribution rate.3 The Fund’s net asset value per share as of October 31, 2024 was $9.96.
The Fund’s sources of financing include a revolving credit facility and term preferred stock, which trades on the New York Stock Exchange under the ticker symbol “EIIA.”
The Fund’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in diversified pools of senior secured loans called collateralized loan obligations (“CLOs”). As of October 31, 2024, the Fund’s portfolio of 74 CLO equity investments provided exposure to 1,365 different U.S. companies across 61 different industries.4
The Fund is a non-traded closed-end fund registered under the Investment Company Act of 1940 and it currently offers its shares on a continuous basis via monthly closings. Please refer to the Fund’s website at www.EPIIF.com for additional information.
About Eagle Point Credit Management LLC
Eagle Point Credit, based in Greenwich, Connecticut, is a specialist investment manager focused on income-oriented credit investments in niche and inefficient markets, including CLO Securities, Portfolio Debt Securities,5 Regulatory Capital Relief transactions and Strategic Credit investments. As of September 30, 2024, Eagle Point Credit and its affiliates managed over $10 billion of assets under management (including committed but undrawn capital). Learn more about Eagle Point Credit at www.eaglepointcredit.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 Fund’s filings with the U.S. Securities and Exchange Commission (“SEC”). The Fund 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.
Securities Disclosure
This press release is provided for informational purposes only, does not constitute an offer to sell securities of the Fund and is not a prospectus. Such offering is only made by the Fund’s prospectus, which includes details as to the Fund’s offering and other material information. Securities are offered through Eagle Point Securities LLC, a member of FINRA and SIPC, and an affiliate of Eagle Point Credit. Investing in the Fund involves risk of loss of some or all principal invested. Speak to your tax professional prior to investing. This is neither an offer to sell nor a solicitation to purchase any security. Please refer to the prospectus available at www.EPIIF.com for additional information about the Fund. An investor should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing.
Risk Disclosures and Important Information
- The Fund is designed as a long-term investment, not a trading vehicle.
- Past performance is not indicative of, or a guarantee of, future performance.
- Shares of the Fund are not traded on an exchange and therefore the Fund’s shares have no liquidity.
- The Fund invests a significant portion of its assets in CLO equity and junior debt securities; these may have more acute risks than other types of credit instruments.
- An investment in the Fund is speculative and entails substantial risk, including the possible loss of some or all of one’s investment. There can be no assurance that the Fund’s investment objectives will be achieved.
- An investment in the Fund is not appropriate for all investors and is not intended to be a complete investment program.
- The Fund utilizes leverage, which uses various financial instruments or borrowings to increase potential return on the Fund’s investments. The use of leverage involves risk, including possible high volatility and declines of the Fund’s NAV, as well as fluctuating dividends and distributions.
- The Fund invests primarily in below-investment grade or unrated securities, commonly called “high yield” or “junk” bonds. Such investments may not pay interest or repay principal when due.
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1As of September 30, 2024, includes committed but undrawn capital and assets managed by Eagle Point Credit Management LLC and certain of its affiliates.
2Past performance is not indicative of, or a guarantee of, future performance. Total return reflects the percent change in NAV per share from the beginning of the period, plus the amount of any distribution per share declared in the period. Return calculation assumes reinvestment of distributions pursuant to the Fund’s distribution reinvestment plan and is net of all Fund expenses, including general and administrative expenses, transaction related expenses, amortization of offering costs, management and incentive fees, and expense limitation being in effect during the performance periods (if any). The Fund charges a maximum upfront sales load of 6.75%. Total return does not reflect the Fund’s upfront sales load. If reflected, the Fund’s total return would have been lower. Return information is not a measure used under GAAP. Valuations based upon unaudited reports may not correspond to realized value and may not accurately reflect the price at which assets could be liquidated. Performance reflects certain expense limitation arrangements in effect during the periods shown. Absent these arrangements, the Fund’s performance would have been lower. Certain expenses paid by Eagle Point Credit Management or its affiliates on the Fund’s behalf are subject to reimbursement by the Fund for up to three years (which reimbursement would have the effect of reducing the Fund’s performance). Performance does not reflect the impact of federal, state or local taxation to which an investor may be subject.
3Annualized distribution rate reflects distributions paid during the month ending in October 2024 annualized and divided by the prior quarter end net asset value. The annualized distribution rate is not a guarantee of future returns and future performance may vary. The timing and frequency of distribution payments is not guaranteed. Such variance may be material and adverse, including the potential for full loss of principal and no distributions. In considering returns, investors should bear in mind that historical performance is not a guarantee, projection or prediction and is not indicative of future results. Actual net returns in any given year may be lower than the historical returns. Investment return and principal value of any investment will fluctuate and may be worth more or less than the amount initially invested. Distribution payments are not guaranteed. Distributions may be comprised of any combination of 1) net investment income and/or 2) net capital gain, and, if the Fund distributes an amount in excess of net investment income and net capital gains, a portion of such distribution will constitute a return of capital. A distribution comprised in whole or in part by a return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” A return of capital distribution may reduce the amount of investable funds. The actual components of the Fund’s distributions for U.S. tax reporting purposes can only be finally determined as of the end of each fiscal year of the Fund and are thereafter reported to shareholders on Form 1099-DIV.
4The information presented herein is on a look-through basis to the CLO equity held by the Fund as of October 31, 2024 (except as otherwise noted) and reflects the aggregate underlying exposure of the Fund based on the portfolios of those investments. The data is estimated and unaudited and is derived from CLO trustee reports received by the Fund relating to October 2024 and from custody statements and/or other information received from CLO collateral managers and other third party sources. Information relating to the market price of underlying collateral is as of month end; however, with respect to other information shown, depending on when such information was received, the data may reflect a lag in the information reported. As such, while this information was obtained from third party data sources, October 2024 trustee reports and similar reports, other than market price, it does not reflect actual underlying portfolio characteristics as of October 31, 2024 and this data may not be representative of current or future holdings. Industry categories are based on the S&P industry categorization of each obligor as reported in CLO trustee reports to the extent so reported. Certain CLO trustee reports do not report the industry category of all of the underlying obligors and where such information is not reported, it is not included in the summary look-through industry information shown. As such, the Fund’s exposure to a particular industry may be higher than that shown if industry categories were available for all underlying obligors. In addition, certain underlying obligors may be re‐classified from time to time based on developments in their respective businesses and/or market practices.
5Eagle Point Credit defines “Portfolio Debt Securities” primarily as debt and preferred equity securities or instruments (including debt and preferred securities which are convertible into common equity) issued by funds and investment vehicles, such as BDCs, registered closed-end investment companies, unregistered private funds, REITs and sponsors of such vehicles, to finance a portion of their underlying investment portfolios.
