Eagle Point Credit Management LLC and its affiliated entities have recently sold a portion of their holdings in OFS Credit Company, Inc. (NASDAQ:OCCI), according to a new SEC filing. The transaction involved the sale of non-derivative securities, specifically 5.25% Series E Term Preferred Stock due 2026, with a total value of approximately $30,328 at a price of $23.24 per share.
The sale was executed on May 7, 2024, with the securities directly held by private investment funds managed by Eagle Point Credit Management LLC. Eagle Point CIF GP I LLC and Eagle Point DIF GP I LLC, which serve as general partners to certain funds, could be deemed to have an indirect pecuniary interest in the securities reported herein.
Following the transaction, the entities still held a substantial number of shares in OFS Credit Company, Inc. The remaining holdings include 34,989 shares of the 5.25% Series E Term Preferred Stock and 42,088 shares of the 6.125% Series C Term Preferred Stock due 2026.
The involved entities have disclaimed beneficial ownership of the reported securities and have stated that the inclusion of these securities in the report shall not be deemed an admission of beneficial ownership for purposes of Section 16 or for any other purpose.
Kenneth P. Onorio, Chief Financial Officer of Eagle Point Credit Management LLC and the affiliated entities, signed off on the filing, which was submitted on May 9, 2024. The transaction reflects the ongoing portfolio management activities of the Eagle Point entities within the regulatory framework provided for significant shareholders.
InvestingPro Insights
In light of the recent transaction involving Eagle Point Credit Management LLC's sale of OFS Credit Company, Inc. (NASDAQ:OCCI) securities, it's worth noting that OCCI has been a profitable investment over the last twelve months. The company's market capitalization stands at $118.66 million, reflecting its position in the market. With a Price/Earnings (P/E) ratio of 16.33, investors may find the valuation reasonable in the context of its earnings.
For income-focused investors, OCCI may be particularly attractive due to its significant dividend yield, which was 16.94% as of the last dividend's ex-date on April 18, 2024. This is a compelling figure for those seeking cash flow from their investments. Moreover, OCCI's financial strength is underscored by its liquid assets, which exceed short-term obligations, providing a cushion for operational needs or unexpected expenses.
On the growth front, OCCI reported a solid revenue increase, with a growth of 15.8% in the last twelve months as of Q1 2024, and an even higher quarterly revenue growth rate of 17.32% in Q1 2024. This suggests that the company is not only maintaining its financial health but is also managing to expand its operations effectively.
With these insights in mind, readers interested in a deeper dive into OCCI's performance and future potential can explore additional InvestingPro Tips. In fact, there are 5 more tips available on InvestingPro that could provide further guidance on OCCI's investment profile. For those looking to access these insights, remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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