Eagle Point Credit Company Inc. (NYSE:ECC) Q2 2019 Earnings Conference Call - Final Transcript

Aug 15, 2019 • 10:00 am ET


Eagle Point Credit Company Inc. (NYSE:ECC) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Eagle Point Credit Company Incorporated Second Quarter 2019 Financial Results Conference Call. [Operator Instructions] At this time, I'd like to turn the conference over to Garrett Edson, Senior Vice President at ICR. Please go ahead.

Garrett Edson

Thank you, Keith, and good morning. By now, everyone should have access to our earnings announcement and investor presentation, which was released prior to this call, which may also be found on our website at eaglepointcreditcompany.com.

Before we begin our formal remarks, we need to remind everyone that the matters discussed in this call include forward-looking statements or projected financial information that involve risks and uncertainties that may cause the Company's actual results to differ materially from those projected in such forward-looking statements and projected financial information. For further information on factors that could impact the Company in statements and projections contained herein, please refer to the Company's filings Securities and Exchange Commission. Each forward-looking statement and projection of financial information made during this call is based on information available to us as of the date of this call. We disclaim any obligation to update our forward-looking statements unless required by law. A replay of this call can be accessed for 30 days via the Company's website, eaglepointcreditcompany.com.

Earlier today, we filed our Form N-CSR, half year 2019 financial statements and second quarter investor presentation with the Securities and Exchange Commission. Financial statements and our second quarter investor presentation are also available within the Investor Relations section of the Company's website. Financial statements can be found by following the Financial Statements and Reports link and the investor presentation can be found by following the Presentation and Events link.

I would now like to introduce Tom Majewski, Chief Executive Officer of Eagle Point Credit Company.

Thomas P. Majewski

Thank you, Garrett, and welcome everyone to Eagle Point Credit Company's Second Quarter Earnings Call. If you haven't done so already, we invite you to download our investor presentation from our website, which provides additional information about the Company, including information about our portfolio and the underlying corporate loan obligors.

As we've done previously, I'll provide some high level commentary on the second quarter, then we will turn the call over to Ken, who will take us through the second quarter financials in more detail. And I'll then return to talk a little bit more about the macro environment, our strategy and provide updates on our recent activity, and of course, we'll open the call to questions.

During the quarter, our portfolio continued to generate strong recurring cash flows; our recurring cash flows totaled $1.05 per weighted average common share, and that's an excess of our common distribution, as well as interest and other expenses that the Company faces. While retail loan mutual fund outflows continued in the quarter with approximately $9 billion of outflows, we believe pressure from those forced sellers was offset by demand for loans from other institutional investors, both in the form of CLOs and through separately managed accounts.