Eagle Point Income Co Stock Price, News & Analysis

Eagle Point Income Company Inc. (NYSE: EIC) is a finance and insurance sector company classified within the securities and commodity exchanges industry. It is structured as a closed-end management investment company with a stated primary investment objective of generating high current income and a secondary objective of capital appreciation. According to its public disclosures, the company seeks to achieve these objectives by investing in junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by portfolios of below-investment-grade U.S. senior secured loans to a large number of distinct underlying borrowers across various industry sectors.

Eagle Point Income Company Inc. has its principal executive offices in Greenwich, Connecticut. Its common stock is listed on the New York Stock Exchange under the symbol EIC. In addition to its common stock, the company has multiple series of term preferred stock that have been listed on the New York Stock Exchange, including its 5.00% Series A Term Preferred Stock due 2026 (trading under the symbol EICA) and its 8.00% Series C Term Preferred Stock due 2029 (trading under the symbol EICC), as disclosed in its Form 8-K filings. The company has also issued 7.75% Series B Term Preferred Stock due 2028, which has traded under the symbol EICB.

The company’s investment approach, as described in available information, centers on exposure to CLO securities backed by below-investment-grade U.S. senior secured loans. These loans are made to a diversified group of corporate borrowers across different industries. By investing in junior debt tranches of CLOs, Eagle Point Income Company Inc. provides investors with access to a specialized segment of the credit markets that involves exposure to leveraged loans and structured credit instruments.

Eagle Point Income Company Inc. is externally managed. Its proxy materials state that Eagle Point Income Management LLC serves as the company’s investment adviser, and that the adviser’s senior investment team is responsible for day-to-day investment management and implementation of the company’s investment strategy and process. The proxy statement further explains that a change in the company’s legal form, if approved, would not alter its investment objectives or strategies, and that the adviser would continue in its role.

Capital structure and listed securities

The company has used both common equity and term preferred stock as part of its capital structure. Its common stock trades on the New York Stock Exchange under the symbol EIC. The company’s preferred stock series have also been listed on the New York Stock Exchange, including:

• 5.00% Series A Term Preferred Stock due 2026 (EICA)
• 7.75% Series B Term Preferred Stock due 2028 (EICB)
• 8.00% Series C Term Preferred Stock due 2029 (EICC)

Public announcements describe underwritten offerings of both common stock and preferred stock, as well as the exercise of underwriters’ options to purchase additional shares of preferred stock and common stock. For example, the company has reported full exercise and closing of underwriters’ options in offerings of its Series A and Series B term preferred stock, and a partial exercise of an overallotment option in an offering of its common stock. These transactions have provided additional net proceeds to the company after underwriting discounts and commissions, as disclosed in its press releases.

Net asset value and income reporting

Through its current reports on Form 8-K, Eagle Point Income Company Inc. has provided management’s unaudited estimates of ranges for net asset value (NAV) per share of common stock as of specific dates, as well as estimates of ranges for net investment income and realized gains or losses per share for certain quarters. These estimates are presented as ranges and are identified as unaudited management estimates. Such disclosures give investors additional insight into the company’s estimated NAV and income metrics between periodic financial reporting dates.

Governance and legal form

In a definitive proxy statement filed on Schedule 14A, Eagle Point Income Company Inc. called a special meeting of stockholders to consider a proposal to change its legal form from a Delaware corporation to a Delaware statutory trust pursuant to a Plan of Conversion. The proxy materials state that the board of directors unanimously approved the Plan of Conversion and recommended that stockholders vote in favor of the proposal. The proxy statement explains that, if the proposal is approved, the company would be governed by new organizational documents required under Delaware law, including a declaration of trust.

The proxy statement outlines several potential benefits of converting to a Delaware statutory trust, such as greater flexibility and the potential for operating efficiencies, the ability to issue an unlimited number of common and preferred shares without the same shareholder approval requirements as a corporation, and the absence of Delaware corporate franchise tax. It also describes potential risks, including possible dilution of voting rights and earnings if additional shares are issued, the impact of certain voting restrictions and anti-takeover provisions under the Delaware Statutory Trust Act and the proposed declaration of trust, and the potential for increased use of leverage through the issuance of preferred shares.

The proxy materials further state that, after the conversion, each existing share of common stock would become a common share of beneficial interest and each existing share of preferred stock would become a preferred share of beneficial interest of the same series. The company’s investment adviser and its senior investment team would remain responsible for investment management, and the conversion is not anticipated to be a taxable event for the company or its stockholders.

Relationship with Eagle Point platform

Eagle Point Income Company Inc. is part of a broader group of investment vehicles and offerings associated with Eagle Point. A Business Wire press release relating to Eagle Point Securities LLC notes that Eagle Point Securities acts as dealer manager for offerings by Eagle Point Income Company (NYSE: EIC), among others. Eagle Point Securities is described as a wholesale distributor of alternative investments focused on delivering institutional private credit strategies to financial advisors and their clients, and the funds it supports are managed by Eagle Point Credit Management LLC and its affiliates (together, “Eagle Point”). This context indicates that Eagle Point Income Company Inc. is one of several entities within an affiliated platform focused on private credit and CLO-related strategies.

Listing and regulatory status

Eagle Point Income Company Inc. is registered under Section 12(b) of the Securities Exchange Act of 1934, as reflected in its Form 8-K filings, which list its common stock and certain series of term preferred stock as registered securities on the New York Stock Exchange. A Form 25 filing by the New York Stock Exchange relates specifically to the 7.75% Series B Term Preferred Stock due 2028, describing the removal of that class of securities from listing and/or registration on the exchange. The Form 25 indicates that the exchange has complied with its rules to strike that class of securities from listing and/or withdraw registration. This filing pertains to the Series B term preferred stock and does not state that the company’s common stock or other preferred stock series have been removed from listing.

Investor considerations

The company’s public communications emphasize that investors should carefully consider its investment objectives, risks, charges and expenses before investing, and refer prospective investors to its prospectus and prospectus supplements filed with the Securities and Exchange Commission. Risk disclosures in related Eagle Point materials highlight that investments of this type may be speculative, illiquid, and subject to leverage and credit risk, and that there can be no assurance that investment objectives will be achieved. While these risk statements are provided in the context of specific offerings, they illustrate the types of considerations that may be relevant to investors evaluating exposure to CLO securities and related strategies.

How Eagle Point Income Company Inc. fits within the finance and insurance sector

Within the finance and insurance sector, Eagle Point Income Company Inc. occupies a niche linked to securities and commodity exchanges through its listing on the New York Stock Exchange and its role as a closed-end management investment company. Its focus on CLO securities backed by below-investment-grade U.S. senior secured loans positions it within the structured credit and private credit ecosystem. The company’s use of listed term preferred stock and common equity provides multiple layers of capital structure for investors seeking exposure to its investment strategy.