Key Takeaways
- • Eagle Point Credit Company (NYSE: ECC) reported Q3 2026 NII of $0.31 per weighted average common share and NII less realized losses of $0.29, while GAAP net loss was $16.4 million ($0.12 per share) driven by $55.8 million of net unrealized investment losses.
- • NAV per common share fell to $4.17 at September 30, 2026, from $4.51 at June 30, 2026, and management estimates NAV between $3.73 and $3.83 as of October 31, 2026.
- • The company will fully redeem its 6.50% Series C Term Preferred Shares due 2031 and redeem $20,885,375 (25%) of its 5.375% notes due 2029 on December 22, 2026, at $25.00 per share or note plus accrued amounts.
- • Management declared three monthly common distributions of $0.06 per share for Q1 2027, along with distributions on its 6.75% Series D and 7.00% convertible perpetual preferred shares.
- • As of September 30, 2026, 38% of the portfolio was invested in private credit, with 60% in CLO investments; CEO Thomas P. Majewski said more than $800 million has been invested in non-CLO strategies since 2020 at a gross IRR above 18%.
Summary
Eagle Point Credit Company, a non-diversified closed-end management investment company externally managed by Eagle Point Credit Management LLC, reported financial results for the quarter ended September 30, 2026, according to a Business Wire release. The company reported net investment income of $0.31 per weighted average common share and NII less realized losses of $0.29 per share, compared with negative $0.62 in the prior quarter. GAAP net loss was $16.4 million, or $0.12 per weighted average common share, reflecting total investment income of $63.7 million offset by net unrealized losses on investments of $55.8 million and financing costs and operating expenses of $21.9 million. Net asset value per common share declined to $4.17 from $4.51 at June 30, 2026.
During the quarter, the company received $46.2 million in portfolio cash flows, or $0.35 per share, and deployed $62.3 million into new investments at a weighted average effective yield of 19.6% at the time of investment. At quarter-end, the portfolio consisted of 60% CLO investments and 38% private credit investments, with the remainder in cash. The weighted average effective yield of the CLO equity portfolio, excluding called CLOs, was 8.4% on an amortized cost basis, down from 9.0% at June 30, 2026, while the expected yield on a fair market value basis was 24.2%. The company completed seven CLO resets and nine refinancings during the quarter. Debt and preferred equity securities equaled 49.1% of total assets (less current liabilities).
Through October 31, 2026, the company received $41.5 million in cash flows, deployed $5.6 million in new investments, and repurchased $9.7 million of its 2029 notes and $0.5 million of its Series C Term Preferred Shares. Management estimates October 31 NAV per common share between $3.73 and $3.83. The company declared three monthly common distributions of $0.06 per share for the first quarter of 2027, and also declared distributions on its 6.75% Series D Preferred Shares and its 7.00% Series AA and Series AB Convertible Perpetual Preferred Shares.
The company will redeem all outstanding 6.50% Series C Term Preferred Shares due 2031 (NYSE: ECCC) at $25.00 per share plus accumulated unpaid distributions, and 25%, or $20,885,375, of its 5.375% notes due 2029 (NYSE: ECCV) at $25.00 plus accrued interest, on December 22, 2026. The Series C shares will be delisted from the NYSE, while the remaining 2029 notes will stay listed. Equiniti Trust Company, LLC is the redemption and paying agent.
Mr. Majewski said ECC's net investment income, net of realized losses, more than covered common distributions during the quarter, and attributed the expansion into private credit strategies to portfolio diversification and incremental earnings. A conference call was scheduled for 10:00 a.m. Eastern Time on the release date, with a replay available until December 13, 2026.
During the quarter, the company received $46.2 million in portfolio cash flows, or $0.35 per share, and deployed $62.3 million into new investments at a weighted average effective yield of 19.6% at the time of investment. At quarter-end, the portfolio consisted of 60% CLO investments and 38% private credit investments, with the remainder in cash. The weighted average effective yield of the CLO equity portfolio, excluding called CLOs, was 8.4% on an amortized cost basis, down from 9.0% at June 30, 2026, while the expected yield on a fair market value basis was 24.2%. The company completed seven CLO resets and nine refinancings during the quarter. Debt and preferred equity securities equaled 49.1% of total assets (less current liabilities).
Through October 31, 2026, the company received $41.5 million in cash flows, deployed $5.6 million in new investments, and repurchased $9.7 million of its 2029 notes and $0.5 million of its Series C Term Preferred Shares. Management estimates October 31 NAV per common share between $3.73 and $3.83. The company declared three monthly common distributions of $0.06 per share for the first quarter of 2027, and also declared distributions on its 6.75% Series D Preferred Shares and its 7.00% Series AA and Series AB Convertible Perpetual Preferred Shares.
The company will redeem all outstanding 6.50% Series C Term Preferred Shares due 2031 (NYSE: ECCC) at $25.00 per share plus accumulated unpaid distributions, and 25%, or $20,885,375, of its 5.375% notes due 2029 (NYSE: ECCV) at $25.00 plus accrued interest, on December 22, 2026. The Series C shares will be delisted from the NYSE, while the remaining 2029 notes will stay listed. Equiniti Trust Company, LLC is the redemption and paying agent.
Mr. Majewski said ECC's net investment income, net of realized losses, more than covered common distributions during the quarter, and attributed the expansion into private credit strategies to portfolio diversification and incremental earnings. A conference call was scheduled for 10:00 a.m. Eastern Time on the release date, with a replay available until December 13, 2026.
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