03/29/2024 | Press release | Distributed by Public on 03/29/2024 15:31
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Per Share
|
| |
Total(1)
|
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Public offering price
|
| | | $ | 25.00 | | | | | $ | 30,500,000 | | |
Sales load (underwriting discounts and commissions)
|
| | | $ | 0.78125 | | | | | $ | 953,125 | | |
Proceeds to us (before expenses)(2)(3)
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| | | $ | 24.21875 | | | | | $ | 29,546,875 | | |
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Page
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ABOUT THIS PROSPECTUS SUPPLEMENT
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| | | | S-i | | |
PROSPECTUS SUPPLEMENT SUMMARY
|
| | | | S-3 | | |
THE OFFERING
|
| | | | S-7 | | |
RISK FACTORS
|
| | | | S-12 | | |
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
| | | | S-14 | | |
USE OF PROCEEDS
|
| | | | S-15 | | |
CAPITALIZATION
|
| | | | S-16 | | |
DESCRIPTION OF THE SERIES C TERM PREFERRED STOCK
|
| | | | S-17 | | |
UNDERWRITING
|
| | | | S-26 | | |
U.S. FEDERAL INCOME TAX MATTERS
|
| | | | S-29 | | |
LEGAL MATTERS
|
| | | | S-30 | | |
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
| | | | S-30 | | |
ADDITIONAL INFORMATION
|
| | | | S-30 | | |
INCORPORATION BY REFERENCE
|
| | | | S-30 | | |
APPENDIX A: CERTIFICATE OF DESIGNATION OF % SERIES C TERM PREFERRED STOCK DUE 2029 OF EAGLE POINT INCOME COMPANY INC.
|
| | | | SA-1 | | |
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Page
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PROSPECTUS SUMMARY
|
| | | | 1 | | |
FEES AND EXPENSES
|
| | | | 12 | | |
RISK FACTORS
|
| | | | 13 | | |
USE OF PROCEEDS
|
| | | | 51 | | |
SENIOR SECURITIES
|
| | | | 51 | | |
PRICE RANGE OF COMMON STOCK
|
| | | | 51 | | |
ADDITIONAL BUSINESS INFORMATION
|
| | | | 52 | | |
THE ADVISER AND THE ADMINISTRATOR
|
| | | | 55 | | |
MANAGEMENT
|
| | | | 61 | | |
DETERMINATION OF NET ASSET VALUE
|
| | | | 65 | | |
DIVIDEND REINVESTMENT PLAN
|
| | | | 65 | | |
CONFLICTS OF INTEREST
|
| | | | 65 | | |
U.S. FEDERAL INCOME TAX MATTERS
|
| | | | 71 | | |
DESCRIPTION OF OUR SECURITIES
|
| | | | 82 | | |
DESCRIPTION OF OUR CAPITAL STOCK
|
| | | | 83 | | |
DESCRIPTION OF OUR PREFERRED STOCK
|
| | | | 89 | | |
DESCRIPTION OF OUR SUBSCRIPTION RIGHTS
|
| | | | 90 | | |
DESCRIPTION OF OUR DEBT SECURITIES
|
| | | | 92 | | |
BOOK-ENTRY ISSUANCE
|
| | | | 101 | | |
PLAN OF DISTRIBUTION
|
| | | | 103 | | |
REGULATION AS A CLOSED-END MANAGEMENT INVESTMENT COMPANY
|
| | | | 105 | | |
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Page
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ADDITIONAL INVESTMENTS AND TECHNIQUES
|
| | | | 109 | | |
CONTROL PERSONS AND PRINCIPAL STOCKHOLDERS
|
| | | | 113 | | |
BROKERAGE ALLOCATION
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| | | | 114 | | |
LEGAL MATTERS
|
| | | | 114 | | |
CUSTODIAN AND TRANSFER AGENT
|
| | | | 114 | | |
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
| | | | 114 | | |
ADDITIONAL INFORMATION
|
| | | | 114 | | |
INCORPORATION BY REFERENCE
|
| | | | 114 | | |
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Actual
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Pro Forma
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Pro Forma
(as adjusted) |
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(Dollars in Thousands)
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Assets: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 944 | | | | | $ | 10,464 | | | | | $ | 39,730 | | |
Investments at fair value
|
| | | | 234,917 | | | | | | 234,917 | | | | | | 234,917 | | |
Other assets
|
| | | | 7,867 | | | | | | 7,867 | | | | | | 7,867 | | |
Total assets
|
| | | $ | 243,728 | | | | | $ | 253,248 | | | | | $ | 282,514 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Borrowings under credit facility
|
| | | $ | 14,520 | | | | | $ | 0 | | | | | $ | 0 | | |
Deferred financing costs - credit facility
|
| | | | (33) | | | | | | (33) | | | | | | (33) | | |
Series A Preferred Stock, par value $0.001 per share; 20,000,000 shares
aggregate preferred stock authorized; 1,521,649 shares issued and outstanding, actual, pro forma and pro forma (as adjusted) |
| | | | 35,241 | | | | | | 35,241 | | | | | | 35,241 | | |
Series B Preferred Stock, par value $0.001 per share; 20,000,000 shares
aggregate preferred stock authorized; 1,372,482 shares issued and outstanding, actual; 1,480,452 shares issued and outstanding, pro forma and pro forma (as adjusted) |
| | | | 34,243 | | | | | | 36,943 | | | | | | 36,943 | | |
Unamortized share issuance premium - Series B Preferred Stock
|
| | | | 3 | | | | | | 3 | | | | | | 3 | | |
Series C Preferred Stock, par value $0.001 per share; 20,000,000 shares
aggregate preferred stock authorized; 0 shares issued and outstanding, actual and pro forma; 1,220,000 shares issued and outstanding, pro forma (as adjusted) |
| | | | 0 | | | | | | 0 | | | | | | 30,500 | | |
Other liabilities
|
| | | | 1,547 | | | | | | 1,547 | | | | | | 1,547 | | |
Total liabilities
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| | | $ | 85,521 | | | | | $ | 73,701 | | | | | $ | 104,201 | | |
Net Assets applicable to 10,997,398 shares of common stock outstanding,
actual; 12,853,284 shares outstanding, pro forma and pro forma (as adjusted) |
| | | $ | 158,207 | | | | | $ | 179,547 | | | | | $ | 178,313 | | |
Net Assets consist of: | | | | | | | | | | | | | | | | | | | |
Paid-in capital
|
| | | $ | 191,378 | | | | | $ | 219,239 | | | | | $ | 219,239 | | |
Aggregate distributable earnings (losses)
|
| | | | (33,605) | | | | | | (40,126) | | | | | | (41,360) | | |
Accumulated other comprehensive income (loss)
|
| | | | 434 | | | | | | 434 | | | | | | 434 | | |
Total Net Assets
|
| | | $ | 158,207 | | | | | $ | 179,547 | | | | | $ | 178,313 | | |
Underwriter
|
| |
Shares of
Series C Term Preferred Stock |
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Ladenburg Thalmann & Co. Inc.
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| | | | 651,400 | | |
B. Riley Securities, Inc.
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| | | | 265,800 | | |
Piper Sandler & Co.
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| | | | 102,000 | | |
InspereX LLC
|
| | | | 144,100 | | |
Wedbush Securities Inc.
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| | | | 56,700 | | |
Total
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| | | | 1,220,000 | | |
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No Exercise
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Full Exercise
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Per Share
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| | | $ | 0.78125 | | | | | $ | 0.78125 | | |
Total
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| | | $ | 953,125.00 | | | | | $ | 1,096,093.75 | | |
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Page
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PROSPECTUS SUMMARY
|
| | | | 1 | | |
FEES AND EXPENSES
|
| | | | 12 | | |
RISK FACTORS
|
| | | | 13 | | |
USE OF PROCEEDS
|
| | | | 51 | | |
SENIOR SECURITIES
|
| | | | 51 | | |
PRICE RANGE OF COMMON STOCK
|
| | | | 51 | | |
ADDITIONAL BUSINESS INFORMATION
|
| | | | 52 | | |
THE ADVISER AND THE ADMINISTRATOR
|
| | | | 55 | | |
MANAGEMENT
|
| | | | 61 | | |
DETERMINATION OF NET ASSET VALUE
|
| | | | 65 | | |
DIVIDEND REINVESTMENT PLAN
|
| | | | 65 | | |
CONFLICTS OF INTEREST
|
| | | | 65 | | |
U.S. FEDERAL INCOME TAX MATTERS
|
| | | | 71 | | |
DESCRIPTION OF OUR SECURITIES
|
| | | | 82 | | |
DESCRIPTION OF OUR CAPITAL STOCK
|
| | | | 83 | | |
DESCRIPTION OF OUR PREFERRED STOCK
|
| | | | 89 | | |
DESCRIPTION OF OUR SUBSCRIPTION RIGHTS
|
| | | | 90 | | |
DESCRIPTION OF OUR DEBT SECURITIES
|
| | | | 92 | | |
BOOK-ENTRY ISSUANCE
|
| | | | 101 | | |
PLAN OF DISTRIBUTION
|
| | | | 103 | | |
REGULATION AS A CLOSED-END MANAGEMENT INVESTMENT COMPANY
|
| | | | 105 | | |
ADDITIONAL INVESTMENTS AND TECHNIQUES
|
| | | | 109 | | |
CONTROL PERSONS AND PRINCIPAL STOCKHOLDERS
|
| | | | 113 | | |
BROKERAGE ALLOCATION
|
| | | | 114 | | |
LEGAL MATTERS
|
| | | | 114 | | |
CUSTODIAN AND TRANSFER AGENT
|
| | | | 114 | | |
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
| | | | 114 | | |
ADDITIONAL INFORMATION
|
| | | | 114 | | |
INCORPORATION BY REFERENCE
|
| | | | 114 | | |
Assumed Return on Our Portfolio (Net of Expenses)
|
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-10%
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-5%
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0%
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5%
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10%
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Corresponding net Return to Common Stockholder(1)
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| | | | -18.86 | | | | | | -11.05 | | | | | | -3.25 | | | | | | 4.55 | | | | | | 12.36 | | |
Period
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NAV(1)
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Closing Sales Price
|
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Premium
(Discount) of High Sales Price to NAV(2) |
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Premium
(Discount) of Low Sales Price to NAV(2) |
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Distributions
Declared(3) |
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High
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Low
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Fiscal year ending December 31, 2021(4) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
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| | | $ | 16.90 | | | | | $ | 15.48 | | | | | $ | 14.60 | | | | | | (8.4)% | | | | | | (13.6)% | | | | | $ | 0.26 | | |
Second Quarter
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| | | $ | 17.38 | | | | | $ | 16.20 | | | | | $ | 15.29 | | | | | | (6.8)% | | | | | | (12.0)% | | | | | $ | 0.27 | | |
Third Quarter
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| | | $ | 17.69 | | | | | $ | 17.65 | | | | | $ | 16.11 | | | | | | (0.2)% | | | | | | (8.9)% | | | | | $ | 0.36 | | |
Fourth Quarter
|
| | | $ | 16.76 | | | | | $ | 19.36 | | | | | $ | 16.79 | | | | | | 15.5% | | | | | | 0.2% | | | | | $ | 0.56 | | |
Fiscal year ending December 31, 2022(5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 16.52 | | | | | $ | 17.38 | | | | | $ | 15.85 | | | | | | 5.2% | | | | | | (4.1)% | | | | | $ | 0.38 | | |
Second Quarter
|
| | | $ | 13.66 | | | | | $ | 17.91 | | | | | $ | 14.75 | | | | | | 31.1% | | | | | | 8.0% | | | | | $ | 0.38 | | |
Third Quarter
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| | | $ | 13.05 | | | | | $ | 17.29 | | | | | $ | 13.60 | | | | | | 32.5% | | | | | | 4.2% | | | | | $ | 0.42 | | |
Fourth Quarter
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| | | $ | 12.91 | | | | | $ | 16.11 | | | | | $ | 13.57 | | | | | | 24.8% | | | | | | 5.1% | | | | | $ | 0.48 | | |
Period
|
| |
NAV(1)
|
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Closing Sales Price
|
| |
Premium
(Discount) of High Sales Price to NAV(2) |
| |
Premium
(Discount) of Low Sales Price to NAV(2) |
| |
Distributions
Declared(3) |
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High
|
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Low
|
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Fiscal year ending December 31, 2023 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
First Quarter
|
| | | $ | 13.20 | | | | | $ | 15.48 | | | | | $ | 13.85 | | | | | | 17.3% | | | | | | 4.9% | | | | | $ | 0.48 | | |
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Registered Investment
Companies |
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Other Pooled
Investment Vehicles |
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Other Accounts
|
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Number of
Accounts |
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Total Assets
(in millions) |
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Number
of Accounts |
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Total Assets
(in millions)(1) |
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Number of
Accounts |
| |
Total Assets
(in millions) |
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Thomas P. Majewski
|
| | | | 2 | | | | | $ | 774.6 | | | | | | 10 | | | | | $ | 2,652.4 | | | | | | 55 | | | | | $ | 4,617.9 | | |
Daniel W. Ko
|
| | | | 2 | | | | | $ | 774.6 | | | | | | 10 | | | | | $ | 2,652.4 | | | | | | 55 | | | | | $ | 4,617.9 | | |
Daniel M. Spinner
|
| | | | 2 | | | | | $ | 774.6 | | | | | | 10 | | | | | $ | 2,652.4 | | | | | | 55 | | | | | $ | 4,617.9 | | |
Name of Portfolio Manager
|
| |
Dollar Range
of Equity Securities in the Company(1) |
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Thomas P. Majewski
|
| | | $ | 100,001 - $500,000 | | |
Daniel W. Ko
|
| | | $ | 50,001 - $100,000 | | |
Daniel M. Spinner
|
| | | $ | 100,001 - $500,000 | | |
|
Audit
|
| |
Nominating
|
|
| Scott W. Appleby | | | Scott W. Appleby, Chair | |
| Kevin F. McDonald | | | Kevin F. McDonald | |
| Paul E. Tramontano | | | Paul E. Tramontano | |
| Jeffrey L. Weiss, Chair | | | Jeffrey L. Weiss | |
Name of Director
|
| |
Dollar Range of Equity
Securities in the Company(1) |
| |
Aggregate Dollar
Range of Equity Securities in the Fund Complex(1) |
|
Interested Directors | | | | | | | |
Thomas P. Majewski
|
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Over $100,000
|
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Over $100,000
|
|
James R. Matthews
|
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None
|
| |
None
|
|
Independent Directors | | | | | | | |
Scott W. Appleby
|
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$50,001 - $100,000
|
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Over $100,000
|
|
Kevin F. McDonald
|
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$10,001 - $50,000
|
| |
Over $100,000
|
|
Paul E. Tramontano
|
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$50,001 - $100,000
|
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Over $100,000
|
|
Jeffrey L. Weiss
|
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$10,001 - $50,000
|
| |
Over $100,000
|
|
|
(1)
Title of Class |
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(2)
Amount Authorized |
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(3)
Amount Held by Us or for Our Account |
| |
(4)
Amount Outstanding Exclusive of Amounts Shown Under (3) |
|
|
Common stock, par value $0.001 per share
|
| |
150,000,000 shares
|
| |
-
|
| |
8,908,108 shares
|
|
|
Series A Term Preferred Stock, par value $0.001 per share
|
| |
20,000,000 shares
|
| |
-
|
| |
1,521,649 shares
|
|
| | |
Common Stock
Beneficially Owned(1) Immediately Prior to Offering |
| |
Preferred Stock
Beneficially Owned(1) Immediately Prior to Offering |
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Name and Address
|
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Number
|
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%
|
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Number
|
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%
|
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5% Owners | | | | | | | | | | | | | | | | | | | | | | | | | |
Enstar Group Limited(2)
|
| | | | 3,764,580 | | | | | | 43.8% | | | | | | - | | | | | | - | | |
Karpus Management, Inc.(3)
|
| | | | - | | | | | | - | | | | | | 183,386 | | | | | | 12.1% | | |
|
Ladenburg Thalmann
|
| |
B. Riley Securities
|
| |
Piper Sandler
|
|
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Lead Managers
|
| | | |
| InspereX | | | | | |
Wedbush Securities
|
|