Eagle Point Executives Offload $24 Million Worth of OFS Credit Preferred Stock, According to Investing.com

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Eagle Point Executives Offload  Million Worth of OFS Credit Preferred Stock, According to Investing.com

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Eagle Point Credit Management LLC, together with its related entities Eagle Point CIF GP I LLC and Eagle Point DIF GP I LLC, announced the sale of preferred stock in OFS credit Company, Inc. (NASDAQ:). The transaction, which occurred on March 21, 2024, involved the sale of 6.125% Series C Term Preferred Stock due 2026 at a price of $24.12 per share, for a total of $24.

The recent filing with the Securities and Exchange Commission revealed that the sale reduced the reporting entities’ holdings to 42,325 shares of the same series of preferred stock. Additionally, the entities hold 36,294 shares of 5.25% Series E Term Preferred Stock due 2026, which were not part of the announced transaction.

The reporting entities, which are managed by Eagle Point Credit Management LLC, are considered to have an “indirect pecuniary interest” in the securities, according to footnotes in the SEC filing. The general partners – Eagle Point CIF GP I LLC and Eagle Point DIF GP I LLC – serve as general partners for certain funds that hold securities directly. However, the reporting entities disclaimed beneficial ownership of the securities, stating that the inclusion of these securities in the report does not constitute an admission of beneficial ownership for any purpose.

Kenneth P. Onorio, Chief Financial Officer of Eagle Point Credit Management LLC and the general partners, signed the SEC filing, dated March 25, 2024. Investors monitoring Eagle Point’s investment movements will note this transaction as part of their ongoing efforts. assessment of the financial activities of the enterprise.

InvestingPro Insights

In light of Eagle Point Credit Management LLC’s recent sale of preferred stock in OFS Credit Company, Inc. (NASDAQ: OCCI), investors may find the following InvestingPro data and tips useful for further financial analysis of OCCI :

The market capitalization of OFS Credit Company stands at a modest $109.88 million, reflecting a relatively small-scale operation in the financial market. Despite this, OCCI demonstrated solid revenue growth of 15.8% over the trailing twelve months as of Q1 2024, which could signal a positive trajectory for the company’s financial performance. This is further supported by quarterly revenue growth of 17.32% in Q1 2024, indicating a steady upward trend.

Investors looking for income-generating investments might be attracted to OCCI’s strong dividend yield of 17.42%, which is particularly noteworthy in today’s investment landscape. This performance is supported by OCCI’s strong profitability over the past twelve months, as suggested by an operating profit of $21.54 million. Indeed, the company’s ability to pay such dividends is supported by its liquidity, which exceeds its short-term obligations, as one of the InvestingPro tips points out.

However, those focused on long-term value can heed the InvestingPro advice which warns that the company’s valuation implies a low free cash flow yield. This could suggest that while the company is profitable and able to reward shareholders in the short term, its ability to generate cash after accounting for capital expenditures could be less attractive to value investors.

For those who want a more in-depth analysis, there are InvestPro Advice available for OCCI, available at: https://www.investing.com/pro/OCCI. Use promo code PRONEWS24 to get an extra 10% off a Pro and Pro+ annual or bi-annual subscription, and discover deeper insights that could inform your investment decisions.

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