Terms

Series

6.75% Series D Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.75%

Rate Type

Fixed

Annual Dividend

$1.69

Payment Frequency

Monthly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

November 29, 2026

First Call Price

$25.00

Capital Stack Ranking

Junior To: Senior Indebtedness, 2027 Notes, 2028 Notes, 2031 Notes; Pari Passu With: Series B Term Preferred Stock, Series C Term Preferred Stock, Any Other Series Of Preferred Stock; Senior To: Common Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Ordinary

Shares Offered

1,000,000

Prospectus Summary

Eagle Point Credit Company Inc. is issuing 1,000,000 shares of 6.75% Series D Preferred Stock with a $25 per share liquidation preference. This perpetual preferred stock pays cumulative monthly dividends at a fixed 6.75% annual rate ($1.6875 per share per year), commencing December 31, 2021. The issuer is a registered closed-end management investment company investing primarily in collateralized loan obligation (CLO) equity and junior debt tranches. Beginning November 29, 2026, the company has the option to redeem outstanding shares at $25 per share plus accrued dividends; otherwise, the security remains perpetual. As a cumulative preferred, unpaid dividends accumulate and must eventually be paid before any distribution to junior securities. The Series D Preferred Stock ranks senior to Eagle Point's common stock and pari passu (equally) with its other outstanding preferred series (Series B and Series C Term Preferred Stock), but is structurally junior to all senior indebtedness including the company's 2027, 2028, and 2031 Notes. This subordination means dividend and liquidation payments to Series D holders are subordinate to debt obligations. The company must maintain an asset coverage ratio of at least 200% (total assets minus liabilities not represented by senior securities, divided by total senior securities and preferred liquidation preferences) as required under the Investment Company Act of 1940. Failure to maintain this threshold triggers mandatory redemption: the company must redeem sufficient preferred shares within 90 days to restore coverage to 200%, which could force redemption at an inopportune time. At par, the Series D Preferred yields 6.75% annually ($1.6875 per share monthly). Dividends are paid monthly on the last business day of each month to shareholders of record 7–20 calendar days prior to the payment date. The prospectus does not explicitly confirm that dividends qualify for preferential tax treatment (15%/20% qualified dividend income rate or dividend-received deduction); preferred shares of registered investment companies typically do not qualify for such treatment. If the company fails to pay a dividend on the scheduled payment date, the dividend rate increases by 2% per annum until redemption or payment occurs, providing some protection but also creating default risk. While the certificate of designation contemplates dividend stopper mechanics common in preferred financings, no explicit stopper provision blocks common or junior preferred dividends if senior debt payments are missed; dividends remain subject to the board's discretion and asset coverage maintenance requirements.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

Board may decline to pay dividends on Series D Preferred Stock if it believes such payment is not in the best interest of stockholders or if asset coverage falls below regulatory minimums; no automatic dividend stopper mechanism triggered by missed payments to senior debt holders.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 50 (Average)