Eagle Point Credit Company · NYSE:ECC
Eagle Point Credit — Q4 2024 Earnings Presentation
39 slides from Eagle Point Credit's earnings presentation, Feb 20, 2025
Slide 1: Eagle Point Credit Company Quarterly Update – Q4 2024
EAGLE POINT CREDIT COMPANY QUARTERLY UPDATE – Q4 2024 FEBRUARY 20, 2025
Slide 2: Important Information
I M P O R TAN T I N F O R M AT I O N This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with Eagle Point Credit Company Inc. (“ECC” or the “Company”) or any of its affiliates. This present
Slide 3: Table of Contents
TAB L E O F C O N T E N T S 1. Introduction to Eagle Point Credit Company (ECC) 2. Senior Investment Team and Investment Process 3. CLO Equity Overview 4. ECC Supplemental Information 5. Selected Market Data 3
Slide 4: Introduction to Eagle Point Credit Company (ECC)
INTRODUCTION TO EAGLE POINT CREDIT COMPANY(ECC)
Slide 5: Company and Adviser Overview
I N T R O D U C T I O N TO E C C Company and Adviser Overview The Company: Eagle Point Credit Company Inc. (ECC) IPO Date October 7, 2014 Primary Investment To generate high current income by investing primarily in equity and junior debt tranches Objective of collateralized loan obligations, or
Slide 6: ECC Highlights
I N T R O D U C T I O N TO E C C ECC Highlights CLO Equity is an The S&P UBS Leveraged Loan Index has generated positive total returns in 30 of the Attractive Asset Class past 33 full calendar years1 Eagle Point believes CLO equity provides an attractive way to obtain exposure to senior secured
Slide 7: Cumulative Common Stock Distributions
I N T R O D U C T I O N TO E C C Cumulative Common Stock Distributions ECC currently pays a monthly regular distribution of $0.14 per share1 ECC Cumulative Distributions Per Share2 $25 IPO Price: $20.00 $21.91 $19.99 $20 $18.13 $15.76 $14.12 $15 $12.80 $10.40 $10 $8.00 $4.75 $5 $2.35 $0 2015 2016 20
Slide 8: Track Record: Common Stock Total Return and Price to Book Ratio
I N T R O D U C T I O N TO E C C Track Record: Common Stock Total Return and Price to Book Ratio For the period of October 7, 2014 – January 31, 2025: ECC generated a total return1 of 123.64% versus 143.93% for the S&P BDC Index2 (annualized net total return of 8.11% for ECC versus 9.02% for the S
Slide 9: ECC By The Numbers
I N T R O D U C T I O N TO E C C ECC By The Numbers Number of 19.1% 181 Current Resets Refis Re-Pricings Monthly Distribution $0.14 1 Distribution Rate 1 Calls 2 Exposure to 21 95.9% Average Years of CLO Experience of Senior Floating Rate Investment Team Senior Secured Loans 3 Number of Underlying N
Slide 10: Securities Outstanding
I N T R O D U C T I O N TO E C C Securities Outstanding Advisor and Senior Investment Team have approximately $13.7 million invested in ECC, ECCC and ECCX1 Common Stock Preferred Stock and Unsecured Notes NYSE Ticker / NYSE Ticker ECC ECCC ECC AA/AB ECC PRD ECCF ECCU ECCV ECCW ECCX Series Name Serie
Slide 11: Senior Investment Team and Investment Process
SENIOR INVESTMENT TEAM AND INVESTMENT PROCESS
Slide 12: Investment Process: Senior Investment Team
INVESTMENT PROCESS Senior Investment Team THOMAS MAJEWSKI DANIEL KO DANIEL SPINNER, CAIA Founder and Managing Senior Principal and Portfolio Senior Principal and Portfolio Partner Manager Manager 30 Years of Experience 19 Years of Experience 29 Years of Experience Direct experience in the credit mar
Slide 13: Private Equity Approach to Fixed Income Investing
INVESTMENT PROCESS Private Equity Approach to Fixed Income Investing Eagle Point employs a process that we believe is more akin to a private equity-style investment approach than the typical process used by many investors in fixed income securities Proactive sourcing of investment opportunities
Slide 14: CLO Equity Overview
EAGLE POINT GCREDIT COMPANY
Slide 15: Why Invest in CLO Equity?
C L O E Q U I T Y O V E RV I E W Why Invest in CLO Equity? Eagle Point believes that CLO equity provides an attractive way to obtain exposure to loans Distribution of CLO Equity IRRs CLO Equity Attributes U.S. CLOs (2002 – 2011 Vintages)1 CLO equity has historically generated strong absolute Pot
Slide 16: The CLO Market is Large and Important to the Loan Market
C L O E Q U I T Y O V E RV I E W The CLO Market is Large and Important to the Loan Market The CLO market is the largest source of capital for the U.S. senior secured loan market1 U.S. Leveraged Loans Outstanding1 U.S. CLOs Outstanding2 CLOs Oustanding ($B) CLO Count (#) $1,088 $1,500 $1,416 $1,399 $
Slide 17: Positive Loan Market Track Record
C L O E Q U I T Y O V E RV I E W Positive Loan Market Track Record From 1992 through 2024, the S&P UBS Leveraged Loan Index generated positive total returns in 30 of the 33 full calendar years S&P UBS Leveraged Loan Index Annual Total Return1 44.9% Annualized Return: 5.6%1 13.0% 11.2% 11.0% 10.3% 10
Slide 18: Senior Secured Loans are the Raw Materials of CLOs
C L O E Q U I T Y O V E RV I E W Senior Secured Loans are the Raw Materials of CLOs Senior Secured Loans Represent “Pure” Credit Exposure Illustrative Underlying Loan Obligors in CLOs3 Senior Senior position in a company’s capital structure Secured First lien security interest in a company’s assets
Slide 19: The Spread in Loan Market Remains at High End of Historical Range
C L O E Q U I T Y O V E RV I E W The Spread in Loan Market Remains at High End of Historical Range Historical Leveraged Loan Spreads 450 bps Spread Long Term Average Ten Year Average Ten Year Average: 370 bps 409 398 400 bps Long Term Average: 391 386 386 387 315 bps 376 376 361 369 352 357 359 358
Slide 20: Loan Market Repayment Rate
C L O E Q U I T Y O V E RV I E W Loan Market Repayment Rate Loan repayments provide capital for reinvestment within CLOs Annual Repayment Rate Annual Repayment Rate Average 60% 56.4% Average: 48.9% 48.2% 31.0% 46.9% 44.7% 40.1% 40% 38.7% 38.1% 37.3% 29.6% 30.0% 27.6% 27.9% 26.9% 23.6% Cumulative 24.
Slide 21: CLOs are Securitizations of a Portfolio of Senior Secured Loans
C L O E Q U I T Y O V E RV I E W CLOs are Securitizations of a Portfolio of Senior Secured Loans The Company invests primarily in the equity and subordinated debt tranches Assets Liabilities + Equity Key CLO Structural Features Senior Debt Typically AAA rated 1. Actively managed portfolio Primarily
Slide 22: ECC Supplemental Information
ECC SUPPLEMENTAL INFORMATION
Slide 23: Income Statement and Balance Sheet Highlights
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Income Statement and Balance Sheet Highlights Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) U.S. GAAP Net Investment Income ("NII") before Non-Recurring Expenses2 $0.27 $0.29 $0.28 $0.30 $0.33 U.
Slide 24: Distribution and Expense Coverage
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Distribution and Expense Coverage ECC Portfolio Recurring Cash Flows2 CASH DISTRIBUTIONS RECEIVED3 RECURRING PORTFOLIO $0.82 $0.79 $0.74 $0.70 $0.03 $0.14 $0.13 $0.66 $0.20 $0.22 $0.18 $0.18 $0.23 $0.48 $0.48 $0.48 $0.48 $0.48 Q4 2023 Q1 2024 Q2 202
Slide 25: Quarterly Snapshot Trend
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Quarterly Snapshot Trend Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Figures below are in millions, except for per share amounts and shares outstanding) Distributions Received From CLO Equity2
Slide 26: Portfolio Details – Q4 2024
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Portfolio Details – Q4 2024 Income Weighted Years Remaining Q4 Cash Received Weighted CLO Equity Holdings Years Remaining in Accrued Cash Received Income Accrued Return of Capital CCC+ Junior OC Senior AAA Average Diversity Vintage Refi/Reset/Call i
Slide 27: Portfolio Details – Q4 2024 (Cont.)
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Portfolio Details – Q4 2024 (Cont.) Income Weighted Years Remaining Q4 Cash Received Weighted CLO Equity Holdings Years Remaining in Accrued Cash Received Income Accrued Return of Capital CCC+ Junior OC Senior AAA Average Diversity Vintage Refi/Rese
Slide 28: Portfolio Details – Q4 2024 (Cont.)
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Portfolio Details – Q4 2024 (Cont.) Income Weighted Years Remaining Q4 Cash Received Weighted CLO Equity Holdings Years Remaining in Accrued Cash Received Income Accrued Return of Capital CCC+ Junior OC Senior AAA Average Diversity Vintage Refi/Rese
Slide 29: Portfolio Details – Q4 2024 (Cont.)
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Portfolio Details – Q4 2024 (Cont.) Income Weighted Years Years Remaining Cash Received Income Return of Q4 Cash Received CLO Equity Holdings Accrued CCC+ Junior OC Senior AAA Average Weighted Average Vintage Refi/Reset/Call Remaining in in Reinvest
Slide 30: Changes in Effective Yield
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Changes in Effective Yield The following table represents changes made to effective yields from the prior quarter end CLO Equity Holdings Effective Yield Effective Yield Change in Effective CLO Equity Holdings Effective Yield Effective Yield Change
Slide 31: Changes in Effective Yield (Cont.)
E C C S U P P L E M E N TAL I N F O R M AT I O N 1 Changes in Effective Yield (Cont.) The following table represents changes made to effective yields from the prior quarter end CLO Equity Holdings Effective Yield Effective Yield Change in Effective CLO Equity Holdings Effective Yield Effective Yield
Slide 32: Portfolio Investments and Underlying Portfolio Characteristics
E C C S U P P L E M E N TAL I N F O R M AT I O N Portfolio Investments and Underlying Portfolio Characteristics As of December 31, 2024, ECC’s portfolio was invested across 238 CLO investments Summary of ECC’s Portfolio of Investments and Cash1 CLO Debt 7.5% Loan Accumulation CLO Equity 78.8% Facili
Slide 33: Obligor and Industry Exposures
E C C S U P P L E M E N TAL I N F O R M AT I O N Obligor and Industry Exposures As of December 31, 2024, ECC has exposure to 1,895 unique underlying borrowers across a range of industries Obligor and Industry Exposure Top 10 Underlying Obligors1 % Total Top 10 Industries of Underlying Obligors1,2 %
Slide 34: Maturity Distribution of Underlying Obligors
E C C S U P P L E M E N TAL I N F O R M AT I O N Maturity Distribution of Underlying Obligors Maturity Distribution of Underlying Obligors 40% 31.6% 30% 27.6% % of Fund Exposure 20% Prior to 2027, only 3.7% of 15.9% ECC’s underlying loan portfolio matures 12.1% 10% 8.3% 2.9% 0.8% 0.8% 0% 2025 2026 2
Slide 35: Selected Market Data
EAGLE POINT GCREDIT COMPANY
Slide 36: Credit Fundamentals
S E L E C T E D M AR K E T D ATA Credit Fundamentals Average Leverage Multiples of Outstanding Loans Average Interest Coverage Multiples of Outstanding Loans (Debt/EBITDA)1 (EBITDA/Interest)1 5.8x 5.1x5.1x 5.6x 5.9x 4.8x4.8x 4.8x4.8x 4.8x 4.6x 4.5x 4.3x 5.4x 5.3x 4.3x 4.5x 4.8x 5.5x 5.3x 5.3x 4.6x 5
Slide 37: Credit Fundamentals
2Q12 12.2% 2Q12 9.1% 3Q12 9.3% 3Q12 9.9% 4Q12 8.3% 4Q12 8.9% 1Q13 6.8% 1Q13 10.5% 2Q13 6.1% 2Q13 9.3% 3Q13 6.8% 3Q13 11.0% 4Q13 8.8% 4Q13 13.5% 1Q14 7.1% 1Q14 16.3% 2Q14 8.8% 2Q14 12.4% Credit Fundamentals 3Q14 9.5% 3Q14 12.5% 4Q14 10.2% 4Q14 13.6% 1Q15 5.8% 1Q15 10.3% Source: Pitchbook LCD. As of S
Slide 38: Liquidity Considerations
S E L E C T E D M AR K E T D ATA Liquidity Considerations Secondary trading is conducted through BWICs (“Bids Wanted in Competition”) and privately negotiated sales CLO debt and equity tranches typically settle electronically via DTC and trade on a T+1 basis Annual CLO Trading Volume $200.4 $200
Slide 39: Company Information
COMPANY INFORMATION Eagle Point Credit Company Inc. 600 Steamboat Road, Suite 202 Greenwich, CT 06830 www.EaglePointCreditCompany.com ICR (Media and Investor Relations) [email protected] (203) 340 8510
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