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DATE

Tuesday, May 19, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Thomas Philip Majewski
• Chief Financial Officer and Chief Operating Officer — Kenneth Paul Onorio

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TAKEAWAYS

• Net Asset Value (NAV) -- $4.17 per share at March 31, down 26.8% from $5.70 per share at year end, reflecting a material quarterly decline.
• Portfolio Rebound -- NAV increased to an estimated $4.49–$4.59 per share by April 30, with management citing a "nearly 9% increase at the midpoint."
• Portfolio Composition -- CLO equity constituted 67% of the portfolio at quarter end, while 31% was allocated to other credit asset classes, and the remainder held in cash.
• Recent Investment Activity -- $100 million deployed into new investments in the quarter, with a weighted average effective yield of 18.9%.
• Non-CLO Allocation -- 75% of first quarter new purchases were in non-CLO investments, with 25% in CLO investments.
• GAAP Net Loss -- First quarter GAAP net loss was $148 million, or $1.12 per share, compared to a GAAP net loss of $0.84 per share in both the previous quarter and prior year.
• NII Less Realized Losses -- Net investment income (NII) less realized losses totaled $19 million, or $0.14 per share, versus -$0.26 per share in the fourth quarter and $0.33 per share in the prior year.
• Distributions -- Paid $0.42 per share in cash distributions for the quarter; declared three monthly distributions of $0.06 per share for the next quarter.
• Recurring Cash Flows -- $62 million, or $0.47 per share, slightly below aggregate common distribution and total expenses, with a shortfall of $0.11 per share.
• Leverage -- Pro forma leverage at 47% after April performance and debt redemptions; management targets a long-term leverage ratio of 27.5%–37.5%.
• CLO Portfolio Metrics -- Weighted average remaining reinvestment period of 3.4 years, above the market average of 2.8 years and up from 3.3 years at year end.
• Loan Default Rate -- ECC’s look-through default rate was 32 basis points, notably below the syndicated loan market average of 1.4%.
• Software Sector Exposure -- Portfolio exposure to software sector was approximately 10.8% at quarter end, with CLO fundamentals noted as “relatively stable.”
• CLO Equity Effective Yield -- Weighted average effective yield based on fair value for CLO equity portfolio is 26.3%, and approximately 9.3% based on amortized cost.
• Cost of Debt -- Four resets and three refinancings completed on CLO equity positions reduced weighted average CLO debt costs by 43 basis points for those CLOs.
• Insider Buying -- Advisor senior investment team purchased over 167,000 shares of company stock during the quarter.
• Financing Structure -- All financing remains fixed rate with no maturities prior to January 2029; a significant portion of preferred stock financing is perpetual.
• Redemption Activity -- Fully redeemed ECCW and ECCX notes after quarter end as part of leverage reduction.

SUMMARY

Management cited market-driven pressure from falling loan prices, particularly in the software sector and due to risks emanating from the war in Iran, as central to the substantial reported NAV and earnings declines early in the period. The company signaled a strategic expansion in non-CLO investments, illustrated by new allocations to infrastructure credit, regulatory capital relief, and specialty credit, constituting 75% of gross investment activity in the quarter. Portfolio exposure management included resets, refinancings, and tactical redeployment of paydowns into loans trading at discounts, while executives pointed to significant insider share purchases as a public demonstration of long-term confidence.

• Executives stated the first quarter decline was mainly the result of "short term mark to market pressure," as April’s portfolio rebound restored a significant portion of NAV loss.
• Refinancing and redemption of outstanding unsecured notes extended the nearest maturity to 2029 and increased the share of perpetual liabilities, enhancing structural flexibility.
• Weighted average junior overcollateralization ratio stood at 4.4%, approximately 10% above the market average.
• The weighted average CCC-rated loan exposure in the portfolio was 4.1%, lower than the 4.9% market average.
• Discussion indicated management plans to reduce leverage from a temporarily elevated 47% back toward their target range as market conditions normalize and as assets are monetized.
• CLO issuance for the quarter was $47 billion, with reset and refinancing activity totaling $32 billion and $24 billion, respectively, despite overall market volatility.
• S&P/LSTA Leveraged Loan Index fell 0.5% in the first quarter but rebounded 1.2% in April, contributing to positive year-to-date loan returns.

INDUSTRY GLOSSARY

• CLO (Collateralized Loan Obligation): A structured finance product backed by a pool of senior secured loans, divided into tranches with varying risk and return profiles.
• Reinvestment Period: The span in which the CLO manager may actively reinvest loan repayments or proceeds into new collateral before principal distributions begin.
• WARP (Weighted Average Remaining Reinvestment Period): Portfolio-level metric showing the average time left in reinvestment periods across all CLO holdings.
• Junior Overcollateralization Ratio: A measure indicating the amount of collateral exceeding the minimum required to support more junior debt and equity tranches in a CLO.
• NII (Net Investment Income): Earnings from portfolio investments after deducting expenses but before realized or unrealized capital gains and losses.

Full Conference Call Transcript

Thomas Philip Majewski, Chief Executive Officer and Kenneth Paul Onorio, chief financial officer and chief operating officer. Before we begin, I would like to remind everyone that the matters discussed on 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 such projections. For further information on factors that could impact the company and the statements and projections contained herein, please refer to the company's filings with the Securities and Exchange Commission. Each forward looking statement or projection of financial information made during this call is based on the 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. Earlier today, we filed our first quarter 2020 financial statements and investor presentation with the Securities and Exchange Commission. These are also available in the Investor Relations section of the company's website eaglepointcreditcompany.com. A replay of this call will be made available later today. I will now turn the call over to Thomas Philip Majewski, Chief Executive of Eagle Point Credit Company. Tom?

Thomas Philip Majewski: Thanks, Darren. Good morning, everyone. We are glad you are joining us today on Eagle Point Credit Company's quarterly call. I will start by providing some perspectives on the recent quarter. CLO equity faced challenging market conditions in the 2026 and the company was not immune to those broader dynamics. While CLO fundamentals remain relatively stable, a decline in loan prices especially in the software sector, and a cautious tone in the credit markets broadly due to the ongoing war in Iran weighed on our financial performance during the quarter. The software sector was particularly an area of focus during the quarter as investors continued to assess the potential impact of AI on certain business models and revenue streams.

Importantly, however, our exposure is principally through broadly syndicated loans not middle market lending that is commonly found in BDCs. The loans in our CLOs are typically larger, more liquid, institutionally syndicated credits, that have observable market pricing. Which can result in more immediate mark to market volatility during sector specific pressure. ECC's software exposure at quarter end stood at roughly 10.8%, While there is not 1 definitive number, many market sources would say BDCs typically have software exposure in the mid 20% range.

While the volatility in loan prices impact our quarterly valuations, we believe it also created opportunities for many of our CLO collateral managers to reinvest paydowns and sale proceeds into discounted loans with attractive forward return potential. While these factors led to a decline in CLO equity valuations during the quarter, we believe the market typically undervalues the reinvestment option embedded in CLOs during times of dislocation. The ability to buy loans at material discounts to par, has allowed CLO equity to deliver attractive intermediate and long term returns following short term periods of volatility. During the quarter, we deployed $100 million into new investments at a weighted average of effective yield of 18.9%.

As we took advantage of compelling relative value opportunities created by a particularly uncertain macro environment. Throughout the quarter, we continued to actively manage our CLO portfolio by completing 4 resets and 3 refinancings of our CLO equity positions. Resulting in weighted average CLO debt cost savings of 43 basis points for those CLOs. In addition to lowering our debt costs, the reset positions extended their reinvestment periods to 5 years. Our portfolio's weighted average remaining reinvestment period or WARP, ended the quarter at 3.4 years. This is higher than the market average of 2.8 years. And also higher than our year end level of 3.3 years.

This reflects our continued focus on extending the reinvestment optionality in our CLO portfolio. We also continue to broaden ECC's opportunity set across credit. While CLO equity remains central to the company's strategy, as we have mentioned on the prior call, we have selectively increased our exposure to complementary asset classes. Including infrastructure credit, regulatory capital relief, portfolio debt securities, and certain other structured and specialty credit investments. These investments are sourced through dedicated teams across the Eagle Point platform, and are designed to enhance income improve diversification, and capture attractive relative value beyond just traditional CLO equity. 1 recent example of this strategy is a directly originated infrastructure investment that we made in the 2025.

We were able to successfully realize this investment just 4 months later. Crystallizing an attractive return. This outcome demonstrates our ability to originate and monetize differentiated credit opportunities outside of CLO equity while still maintaining ECC's income oriented investment focus. As of March 31, CLO equity represented 67% of our portfolio, while other credit asset classes represented 31%. The balance was held in cash. As of March 31, our NAV stood at $4.17 per share. And this represents a decrease of 26.8% from $5.70 per share at year end. For the first quarter, the company generated a GAAP return on equity of -20.2% And during the quarter, we paid $0.42 per share in cash distributions to our common shareholders.

That said, ECC's portfolio rebounded sharply in April. Our NAV increased to between $4.49 and $4.59 per share. A nearly 9% increase at the midpoint. Last week, we declared 3 monthly distributions of $0.06 per share for the 2026 This is in line with our distributions for the second quarter Our current distribution level is aligned with the company's near term earnings profile and reflects our focus on maintaining a sustainable distribution over time. Separately, as disclosed in our recent public filings, members of our advisor senior investment team purchased more than 167 thousand shares of the company's common stock during the first quarter.

Reflecting their confidence in the company's long term value and our view that the current trading levels do not fully reflect the intrinsic value of our stock. Subsequent to quarter end, we completed the full redemption of our ECCW and ECCX notes. With that, turn the call over to Kenneth Paul Onorio to discuss the financial results in more detail.

Kenneth Paul Onorio: Thank you, Tom, and thanks, everyone, for joining us today. For the 2026, the company recorded NII less realized losses from investments of $19 million or $0.14 per share. This compares to NII less realized losses from investments of -$0.26 per share in the 2025 and NII and realized gains from investments of $0.33 per share in the 2025. Including unrealized losses, the company recorded a first quarter GAAP net loss of $148 million or $1.12 per share. This compares to a GAAP net loss of $0.84 per share in both the previous quarter and the 2025. Recurring cash flows for the first quarter was $62 million or $0.47 per share.

This $0.11 per share shy of our aggregate common distribution and total expenses for the quarter. A reminder that all of our financing remains at a fixed rate and we have long duration capital with no maturities prior to January 2029. In addition, a significant portion of our preferred stock financing is perpetual with no set maturity date. Providing additional flexibility to support our investment strategy. We are unaware of any other publicly traded entity that invests primarily in CLO equity with perpetual financing and consider this to be a significant competitive advantage for the company.

As of April 30, pro forma for April performance and the redemption of ECCX and ECCW our leverage was 47% based on the midpoint of management's unaudited estimated range of the company's April NAV. Over time, we plan to bring the company's leverage ratio back to our target range of 27.5% to 37.5% when generally operating the company under normal market conditions. Through April 30, we have collected $51 million in recurring cash flows and expect additional collections during the remainder of the quarter. Management's unaudited estimate of NAV as of April month-end, was between $4.49 and $4.59 per share, the midpoint being a 9% increase from quarter end.

Thomas Philip Majewski: With that, I will turn the call back to me. Thanks, Kenneth Paul Onorio. I would now like to share some additional thoughts on the loan and CLO markets as well as how we are positioning the portfolio. During the first quarter, new CLO issuance totaled $47 billion while reset and refinancing activity remained strong at $32 billion and $24 billion respectively. Despite the volatility in the markets. The S and P UBS Leveraged Loan Index fell 50 basis points in the first quarter, but in April, it rebounded by 1.2%. Bringing the total return positive for the year. Corporate revenue and EBITDA growth remained positive during the first quarter, supporting overall credit fundamentals across the broadly syndicated loan market.

Despite the decline in loan prices. While the trailing 12 month default rate ended the first quarter at 1.4%, modestly higher than year end levels it still remains well below the long term average of 2.5%. ECC's look through default rate remains low at 32 basis points. Significantly below the broader market average. And we believe this reflects both the quality of our underlying loan holdings and our dedication to a robust collateral manager selection process. While lower loan prices may have impacted CLO valuations in the near term, they have also created attractive reinvestment opportunities for our CLOs.

The percentage of loans trading above par has declined meaningfully creating the potential for price appreciation across the broader loan market in quarters ahead. At the same time, repricing activity has slowed considerably resulting in wider spreads on new loans and improving the forward return outlook. This is an important shift as repricing activity led to spread compression, which was a key headwind to the CLO equity market. In 2025. Turning to our portfolio positioning. Our CLO equity portfolio metrics continue to compare favorably to the broader market. As of quarter end, CCC rated exposures in our portfolio were 4.1% which is lower than the market average of 4.9%.

And our weighted average junior over collateralization ratio stood at 4.4% roughly 10% above the market average of 4%. These metrics reflect our disciplined approach and focus on higher quality collateral managers and help position the portfolio to navigate periods of challenging market conditions. Beyond CLO equity, we continue to see compelling opportunities in credit investments that offer strong structural protections contractual or asset based cash flows, and attractive risk adjusted return potential. These investments are not intended to entirely replace CLO equity, but rather to complement it in our portfolio by adding differentiated sources of income and return. Looking ahead, we believe the current environment is considerably more attractive than the headlines of the first quarter would suggest.

Lower loan prices reduced loan repricing activity, and continued market dispersion have improved the opportunity set for new capital deployment. At the same time, April's NAV recovery reinforces our view that the first quarter decline was largely driven by short term mark to market pressure rather than fundamental deterioration in the long term earning power of our portfolio. We remain focused on allocating capital to the best relative value opportunities across CLO equity and complementary credit investments. Our goal is to produce durable, attractive, long term returns for our shareholders focused on income oriented investments and supported by a stable or growing NAV over time. Thank you for your time and interest in Eagle Point Credit Company.

Anne and I will now open the call to your questions. Operator?

Operator: Thank you. If you would like to ask a question, please press * on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. To allow for as many questions as possible, we ask that you each keep to 1 question and 1 follow-up. Thank you. Our first question comes from the line of Erik Zwick with Lucid Capital Markets. Please proceed with your question.

Analyst (Eric Zwick): Hello. Good morning. I wanted to start with a question. In the press release, you mentioned that the weighted average yield on new investments that it includes a provision for future credit losses. Curious, just given the magnitude of geopolitical and macroeconomic uncertainty today. Could you maybe talk a little bit about, you know, what level of credit losses you provisioned for today and whether that is unchanged from what you have typically done you know, in the past or was pretty consistent, over the market cycle?

Kenneth Paul Onorio: Yeah. Certainly. Here, it is Kenneth Paul Onorio here. So there is a standard default rate that we have. With each cycle evaluation that we include as a constant default rate as a credit loss. And then I would say we also calibrate to market which is a little bit more fluid and reflective of current economics and the current standing of the market. For credit and CLO equity. So there is a portion that is standard. And there is a component that is variable to market conditions. And a few you know, if you wind back to February and also to November, those are significantly volatile months with significant impact to credit, which we reflected in our valuations.

As that dynamic improves, as the market improves, you will have the reverse effect which obviously in this past April was a very solid month for loans and credit. Where that variable component of credit loss adjustment is considered on in a positive way. So the way to look at it, standard default rate, matter what quarter or what market dynamic is in play, and a variable component based on, the current market environment which changes month to month or we update on a month to month basis.

Thomas Philip Majewski: Thanks, Kenneth Paul Onorio. that is very helpful.

Analyst (Eric Zwick): And that kinda leads into my next question a little bit. I am curious if you could talk just a little bit about what factors specifically drove the increase in NAV in April, whether it was you know, spreads or market liquidity or some other factors and guess, are you seeing a continuation of that through May at this point?

Kenneth Paul Onorio: Yeah. Sure. So I would I say we saw we seen a broad rebound of what we experienced in the first quarter. So credit fundamentals across the board, market sentiment particularly in the software SaaS space has also improved. So I would really look at April as a rebound for the first quarter or a normalization to the first quarter down a downdraft in valuations, And then certainly to this extent as where we where we stand today, we do see a continuation of strong performance in loans and in our CLO equity portfolio as well as our non CLO portfolio. Thank you for taking my questions this morning.

Thomas Philip Majewski: Thank you.

Operator: Our next question comes from the line of Gaurav Mehta with Alliance Global Partners.

Analyst (Gaurav Mehta): Yeah, thank you. Good morning. I wanted to ask you on the new investments that you made in January. How much was how much of that was in non CLO versus CLO equity?

Thomas Philip Majewski: Sure. I have gotta look that up. Hang on 1 second. That 1. Hold on. If you have another question, could ask while I go to the tape here.

Analyst (Gaurav Mehta): Okay. As a follow-up on the balance sheet, just curious to learn more about the preferred stock redemptions that you guys did in 1Q and 2Q. Was there any specific driver to redeem those stock?

Thomas Philip Majewski: So we did a buyback or a redemption in full of or of 2 baby bonds. Those were redeemed a week or 2 ago at this point. And that was part of a broader so that was unsecured debt of the company, not a preferred stock. But looks and feels very similar. The rationale on that was getting the company back towards its target leverage ratio. We target over the long term to run the company at a certain leverage We are still above that right now. But we have been proactive in retiring debt to get the leverage back on sides. 1 of the benefits of that is on sides with our targets pushing out our nearest maturity.

Previously, I think we had some 2027 paper outstanding. Now our nearest maturity is 2029. And an increasing portion of our portfolio of our debt portfolio or our liabilities, be it debt or preferred, is now perpetual in nature both through the ECC PRD and then the ECC series double a and double a b. Which obviously we like that from a stability perspective. We also have ECCC, which is preferred stock outstanding and that does trade at a little bit of a discount to par.

Kenneth Paul Onorio: Yep. And we do buy that sometimes in the open market. that is correct.

Thomas Philip Majewski: So we are we are active buyers of our debt where it makes sense where it is trading at a discount. So we gradually and the purpose of that is twofold. 1 is it helps build cushion to our leverage ratio. In addition to that, we do make a little bit of gain on it on retirement. So it is a quick way to make a few bucks. So we are opportunistic when we see our debt trading at a discount, and we buy it back and retire it.

Kenneth Paul Onorio: And then to the first question we have got here, this is in the investor deck on page is our yeah. This is just an internal report we have. But do you wanna share that?

Thomas Philip Majewski: Yeah. Sure.

Kenneth Paul Onorio: So the purchase percentages for the first quarter were roughly 75% of purchases were in the non CLO investments. With its with the remaining 25% being in CLO investments. So 25 split weighted towards non CLOs.

Analyst (Gaurav Mehta): Okay. Thank you. that is all I had.

Thomas Philip Majewski: Okay.

Operator: Thank you. Our next question comes from the line of Christopher Nolan with Ladenburg Thalmann. Please proceed with your question.

Analyst (Christopher Nolan): Hey, Tom. When you mentioned the lower loan prices for loans, as a clarification, are those for loans already in the CLO or for loans being bought from the banks or the CLO?

Thomas Philip Majewski: A little of everything. So broadly, you know, through the first quarter, the loan market was down. Not every single loan, but, you know, the vast majority were. So both the loans in the CLOs in general are down At the same time, loans continue to prepay. And repay typically at a, you know, double digit percentage per annum such that there is always while loans are at a discount, money coming back into the system at par within a CLO, which when loans are at a discount, collateral managers can go buy those loans instead of paying par.

They can buy them at $97.98 cents on the dollar or whatever the price may be. there is been a relatively limited supply of new issue loans, not none, but, you know, there is not a ton of new loans coming out. And while I do not have data, on them, typically, loan would come out at, like, 99 and a half issue price.

I am gonna wager to say the price that of loans that came out in the first quarter was probably a smidge lower than normal, but not a lot lower where the market was probably getting compensated on new loans was probably a little bit of a higher spread than where it would have otherwise been on a new issue loan. So when we say prices are down, that is referring to both loans in the portfolio CLO portfolios in general and the reinvestment option in the secondary market. To new issue loans, probably a tiny bit of price movement, but not a ton. Great.

Analyst (Christopher Nolan): And as my follow-up, if I understand correctly, the new deployments have reflective yield of roughly percent The existing portfolio has an effective yield to CLO equity of 9.3%. That and that 9.3, I believe, is that amortized cost, not at fair value.

Kenneth Paul Onorio: Is that correct, Kenneth Paul Onorio? Yeah. So the 9 and change weighted average effective yield, that is the yield on the overall portfolio? Christopher. But you might have that we disclose each quarter, so that includes historical positions, legacy positions. That were on the books. The new CLO equity, were was still deploying at a 20-plus percentage. that is actually Maybe that is a severity. Yeah.

Analyst (Christopher Nolan): Given that disparity, at what point do we start seeing these much higher yields and these new investments start lifting the effective yield in the portfolio. And starting to have a cascading effect into earnings and so forth.

Thomas Philip Majewski: So the 9% number 9% area number you are citing is based on original cost. Correct. The Amortized cost. Amortized cost rather. The effective yield based on the market value of the portfolio is much higher because the portfolio does have unrealized appreciation then.

Kenneth Paul Onorio: Do you know, do we publish the Yeah. Why do not we give that other number as well? K. I will grab that. Hang on 1 second. We are just pulling it up. 1 second for that. Expected yield is 26.3%. On the portfolio based on fair value. Is that the CLO equity portfolio or whole that is CLO equity portfolio.

Thomas Philip Majewski: So on the CLO equity portfolio based on fair value, it is a smidge over 26% on a loss adjusted effective yield basis. And 1 of the complications so if you were to take the NAV, which reflects unrealized gains and losses, you use that 26%. If you were to use amortized cost, then you would use that lower number. The 9%.

Analyst (Christopher Nolan): Okay. And so would it be fair to say that the new investments do not necessarily offer a material yield advantage over the existing portfolio.

Thomas Philip Majewski: Positive of that is correct. If you look at the existing portfolio, we are talking, you know, you know, maybe billion dollars in assets. Roughly, maybe a little less. Versus new purchases that are maybe in the tens of millions. So just on a you know, a weighting perspective, it would not have a material effect.

Analyst (Christopher Nolan): Okay. And when we are thinking about what if the book is marked to 26, why buy in the 20 lower twenties? Would be a would be a logical question.

Thomas Philip Majewski: 1 of the things and we published the effective yield on an investment by investment basis in our investor presentation, so you can see how different investments are carried Most of the investments we are buying new or even in the secondary market today are gonna be skewed towards those that have a longer remaining reinvestment period. Things with longer remaining reinvestment periods typically trade at a tighter effective yield than thing than in bonds that have our CLO equity that has a shorter remaining RP. So there is a dispersion and a material fact in what yield of CLO equity trades, that is how much time is left.

And in general, the purchases we are making are gonna be longer RP paper.

Analyst (Christopher Nolan): You would have made a great college professor. Yes. it is very good way to stop explain this stuff. Just 1 last question. Anything I am doing. So thank you. Oh, 1 more if I if I may.

Thomas Philip Majewski: The dividend Sure. The new $0.18 quarterly dividend annualized is roughly 17% on the first quarter NAV. That seems awfully high and potentially unsustainable from my perspective given everything that you said, or am I looking at what is wrong?

Kenneth Paul Onorio: Well, our earnings are roughly our NII is roughly in line with that even a smidge above. Yep.

Thomas Philip Majewski: And we obviously did make a significant change x months ago to the distribution rate. But where we looked at that, we look at the earnings power of the portfolio and the rate we set the distribution to was below the NII we have had over the last few quarters. So with the view of, obviously, we cannot accurately predict the future again and again, but we did seek to make that a number that we believed we could sustain for the foreseeable future. Obviously, market conditions will be a factor. But where we look at where our historic earned NII has been that was a key factor in our best guesstimates for forward NII all drove that.

Analyst (Christopher Nolan): Great. that is it for me. Thank you very much.

Thomas Philip Majewski: Thanks, Christopher.

Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. I will turn the floor back to Mr. Majewski for any final comments.

Thomas Philip Majewski: Great. Thank you very much. We appreciate everyone's time and interest in Eagle Point Credit Company. Kenneth Paul Onorio and I will be available later today if anyone has any other follow-up questions. Thank you.

Operator: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.