Eagle Point Credit Company Inc. Q4 FY2025 earnings call

• In 2025, CLO equity faced market headwinds but disciplined portfolio management and opportunistic increase in credit assets beyond CLO equity helped. Completed 34 resets and 27 refinancings in 2025, leading to 42 basis points of CLO debt cost savings on average. Weighted average remaining reinvestment period of portfolio stayed roughly flat. Deployed $184 million in gross capital in fourth quarter with weighted average effective yield of 15.4%, with new investments in other credit assets totaling $147 million. Advanced strategic initiatives like supporting Muzinich’s U.S. and European CLO collateral management platforms and launching a new joint venture. Implemented initiatives to optimize capital structure, including redeeming 8% Series F term preferred stock, repurchasing securities, and issuing 7% Series AA and BB convertible perpetual preferred stock. Distributed $0.42 per share in fourth quarter and declared distributions for 2026. Board authorized $100 million common stock repurchase program.

In 2025, CLO equity faced difficult market conditions. The company generated a GAAP return on common equity of negative 14.6%. NAV was $5.70 per share as of December 31, down from $7.00 per share on September 30. Net investment income less realized losses was negative $0.26 per share in 2025. Recurring cash flows from the portfolio increased to $80 million, or $0.61 per share, in 2025. Non - CLO portion of the portfolio was approximately 26% of the total investment portfolio at year end. Of $97 million of investments that went full cycle and were fully realized, gross IRR was approximately 18%.

• Looking ahead to 2026, see attractive opportunities for capital deployment in CLO equity and other credit asset classes. Plan to retain more capital for investments with attractive risk - adjusted returns by resetting distribution rate. Expect portfolio strategy of increasing assets away from CLO equity to continue as opportunities present. Anticipate continued activity in resets and refinancings of CLOs in portfolio, with focus on where there are top line revenue shares or attractive investment opportunities in other credit sectors.

• Market - wide conditions such as spread compression in loan market and negative sentiment towards credit can weigh on financial performance. Leverage ratio above target range currently. Uncertainty around future market trends and impact on credit quality and expense. Potential for CLOs held in captive vehicles not being properly stewarded or called when should be. LMEs can have varying impacts on performance with different outcomes for lenders.

Q: Mickey Max Schleien asked about impact of captive CLO equity funds on fee structures for third - party CLOs and outlook for third - party competition.

A: Thomas Majewski responded discussing how fees are borne at shareholder level of JVs, spread compression impact, and that it's an other - than - short - term phenomenon, with focus on pivoting investment strategy to areas with top line revenue shares in CLO collateral managers and increasing allocation to credit assets other than CLO equity.

Q: Erik Edward Zwick asked about stock repurchase program and what's needed for stable NAV.

A: Thomas Majewski said it's a collage of factors balancing share price, leverage ratios, and investment opportunities, and that husbanding capital to keep it on balance sheet and other factors like capital loss carryforwards could help increase NAV.

Q: Timothy D’Agostino asked about outlook for resets and refinances in 2026 and private credit investments outside of CLOs.

A: Thomas Majewski said it's nontrivial to predict exact number of resets and refinances, with focus on AAA spreads, and shared about various private credit investments like asset - backed securities, collateralized fund obligations, etc., with mid - teens type return opportunities.

Q: Christopher Nolan asked about higher provisioning at banks originating loans in CLOs and adverse selection.

A: Thomas Majewski said it's an originate - to - distribute model, not an adverse selection situation primarily, and the bigger issue is loan spreads vs AAA spreads.

Q: Christopher Nolan also asked about possibility of dividend supplements.

A: Thomas Majewski said board will consider factors, no expectation of special or supplemental distribution anytime this year but potential in future if under - distributed.

Q: Gaurav Mehta asked about leverage expectations and sources of capital.

A: Thomas Majewski said portfolio generates gobs of cash, expects excess cash flow to continue investing, and not particularly focused on raising new debt or common stock at ECC itself.

Q: Gaurav Mehta followed up on redemption of preferred stock being done with cash.

A: Thomas Majewski said it was paid in full January 31 with strategy of paying off high - cost financing and considering future perpetual programs