- Net investment income ("NII") and realized capital gains of $0.45 per weighted average common share 1.
- NAV per common share of $16.67 as of September 30, 2017.
- GAAP net income (inclusive of unrealized mark-to-market losses) of $2.2 million, or $0.12 per weighted average common share.
- Weighted average effective yield of the Company's collateralized loan obligation ("CLO") equity portfolio was 15.29% as of September 30, 2017.
- Deployed $39.8 million in net capital and received $26.3 million in cash distributions from the Company's portfolio in the third quarter of 2017.
- 4 of the Company's CLOs refinanced their debt tranches and 1 CLO was reset during the third quarter of 2017.
- Completed underwritten public offering of $31.625 million in aggregate principal amount of 6.75% notes due 2027 ("2027 Notes"), including the full exercise of the underwriters' overallotment option. The Company received total net proceeds of approximately $30.4 million.
- NAV per common share estimated to be between $16.95 and $17.05 as of October 31, 2017.
- Deployed $8.1 million in net capital from October 1, 2017 through November 8, 2017; received cash distributions from the Company's portfolio of $22.4 million over the same period.
"In terms of our capital position, we completed a new, 10-year notes offering during the quarter, locking in the lowest cost of capital that the Company has ever achieved," added Mr. Majewski. "Our long-term strategy remains unchanged - to work to create additional value for our shareholders by deploying capital opportunistically into new investments and actively managing our portfolio, including pursuing refinancings or resets of our CLO investments, where appropriate."THIRD QUARTER 2017 RESULTS The Company's NII and realized capital gains for the quarter ended September 30, 2017 was $0.45 per weighted average common share, which reflects the impact of a $0.02 expected tax refund related to a previously recorded December 31, 2016 excise tax expense. This compared to $0.53 per weighted average common share for the quarter ended June 30, 2017, and $0.54 per weighted average common share for the quarter ended September 30, 2016. For the quarter ended September 30, 2017, the Company recorded GAAP net income of $2.2 million, or $0.12 per weighted average common share. Net income was comprised of total investment income of $16.4 million, partially offset by net unrealized depreciation (or unrealized mark-to-market loss on investments) of $6.0 million, and total expenses of $8.2 million. Net realized capital gains on investments were modest for the quarter. NAV as of September 30, 2017 was $307.9 million, or $16.67 per common share, a reduction of $0.86 per common share from the Company's NAV as of June 30, 2017, and an increase of $0.01 per common share from the Company's NAV as of September 30, 2016. During the quarter ended September 30, 2017, the Company deployed $74.7 million in gross capital which included $50.8 million in new CLO equity investments. The weighted average effective yield of new CLO equity investments made by the Company during the quarter, which includes a provision for credit losses, was 16.65% as measured at the time of investment. Additionally, during the quarter, the Company received $34.9 million of proceeds from the sale of investments and converted 2 of its existing loan accumulation facilities into new CLOs. 1 of the Company's CLO investments was called during the quarter. During the quarter ended September 30, 2017, the Company received $26.3 million of cash distributions from its investment portfolio, or $1.44 per weighted average common share, including amounts received from called investments. Excluding proceeds from called investments, the Company received $1.23 per weighted-average common share.
During the quarter ended September 30, 2017, 4 of the Company's CLOs refinanced their debt tranches and 1 CLO was reset, bringing the total number of such CLO equity positions that were refinanced or reset since August 2016 to 28 and 4, respectively.As of September 30, 2017, the weighted average effective yield on the Company's CLO equity portfolio was 15.29%, compared to 15.68% as of June 30, 2017 and 17.27% as of September 30, 2016. Pursuant to the Company's "at-the-market" offering program under which the Company may issue common stock and 7.75% Series B Term Preferred Stock due 2026 ("Series B Term Preferred Stock"), the Company sold 295,462 shares of common stock at a premium to NAV and 27,584 shares of Series B Term Preferred Stock during the third quarter for total net proceeds to the Company of approximately $6.7 million. PORTFOLIO STATUS As of September 30, 2017 on a look-through basis, and based on the most recent CLO trustee reports received by such date, the Company had indirect exposure to approximately 1,213 unique corporate obligors. The largest look-through obligor represented 0.90% of the Company's CLO equity and loan accumulation facility portfolio. The top-ten largest look-through obligors together represented 6.51% of the Company's CLO equity and loan accumulation facility portfolio. Spread compression in the loan market has been a factor for credit investors and the Company is not immune. Whereas in December 2016, the look-through weighted-average spread of the Company's CLOs' loans was 3.97%, that value was 3.71% as of September 2017. However, recently the rate of decline has slowed. As of September 30, 2017, the Company had debt and preferred securities outstanding which totaled approximately 38% of its total assets (less current liabilities), due primarily to the issuance of the Series 2027 Notes in August 2017. Over the long term, management expects the Company to operate under current market conditions generally with leverage within a range of 25% to 35% of total assets. As market conditions evolve, or should significant opportunities present themselves, the Company may incur leverage outside of this range, subject to applicable regulatory limits.
FOURTH QUARTER 2017 PORTFOLIO ACTIVITY THROUGH NOVEMBER 8, 2017 AND OTHER UPDATESFrom October 1, 2017 through November 8, 2017, the Company received cash distributions on its investment portfolio totaling $22.4 million, or $1.21 per weighted average common share. As of November 8, 2017, some of the Company's investments had not yet reached their payment date for the quarter. Also from October 1, 2017 through November 8, 2017, the Company made net new investments totaling $8.1 million. In the fourth quarter, through November 8, 2017, 3 of the Company's CLOs were reset. In addition, 2 of the Company's loan accumulation facilities were priced into new CLOs. As of November 8, 2017, the Company has approximately $14.9 million of cash available for investment. As published on the Company's website yesterday, management's estimate of the Company's range of NAV per common share as of October 31, 2017 was $16.95 to $17.05. PREVIOUSLY DECLARED DISTRIBUTIONS The Company paid a monthly distribution of $0.20 per common share on October 31, 2017 to stockholders of record as of October 12, 2017. Additionally, and as previously announced, the Company declared distributions of $0.20 per share of common stock payable on November 30, 2017 and December 29, 2017, to stockholders of record as of November 10, 2017 and December 12, 2017, respectively. The Company paid distributions of $0.161459 per share of the Company's 7.75% Series A Term Preferred Stock (NYSE: ECCA) and Series B Term Preferred Stock (NYSE: ECCB) on October 31, 2017, to stockholders of record as of October 12, 2017. The distributions represented a 7.75% annualized rate, based on both the Series A and Series B Term Preferred Stocks' $25 liquidation preference per share. Additionally, and as previously announced, the Company declared distributions of $0.161459 per share on its Series A Term Preferred Stock and Series B Term Preferred Stock, payable on each of November 30, 2017 and December 29, 2017, to stockholders of record as of November 10, 2017 and December 12, 2017, respectively.
CONFERENCE CALLThe Company will host a conference call at 10:00 a.m. (Eastern Time) today to discuss the Company's financial results for the quarter ended September 30, 2017, as well as a portfolio update. All interested parties may participate in the conference call by dialing (833) 231-8253 (domestic) or (647) 689-4099 (international), and entering Conference ID 4297115 approximately 10 to 15 minutes prior to the call. A live webcast will also be available on the Company's website ( www.eaglepointcreditcompany.com) - please go to the Investor Relations section at least 15 minutes prior to the call to register, download and install any necessary audio software. An archived replay of the call will be available shortly afterwards until December 14, 2017. To hear the replay, please dial (800) 585-8367 (domestic) or (416) 621-4642 (international). For the replay, enter conference ID 4297115. ADDITIONAL INFORMATION The Company has made available on its website, www.eaglepointcreditcompany.com (in the financial statements and reports section) its unaudited consolidated financial statements as of and for the period ended September 30, 2017. The Company also published on its website (in the investor presentations and portfolio information section) an investor presentation which contains additional information about the Company and its portfolio as of and for the quarter ended September 30, 2017. The Company has filed these reports with the Securities and Exchange Commission. ABOUT EAGLE POINT CREDIT COMPANY The Company is a non-diversified, closed-end management investment company. The Company's investment objectives are to generate high current income and capital appreciation primarily through investment in equity and junior debt tranches of collateralized loan obligations. The Company is externally managed and advised by Eagle Point Credit Management LLC. The principals of Eagle Point Credit Management LLC are Thomas P. Majewski, Daniel W. Ko and Daniel M. Spinner.
The Company makes certain unaudited portfolio information available each month on its website in addition to making certain other unaudited financial information available on its website ( www.eaglepointcreditcompany.com). This information includes (1) an estimated range of the Company's net investment income ("NII") and realized capital gains or losses per weighted average share of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company's NAV per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company's NII and realized capital gains or losses for the applicable quarter, if available.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 U.S. Securities and Exchange Commission ("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. 1 "Per weighted average common share" data are on a weighted average basis based on the average daily number of shares of common stock outstanding for the period and "per common share" refers to per share of the Company's common stock.