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Q1 2021 Earnings Conference Call
spk_0: greetings and
spk_2: welcome to Eagle Point Credit Companies first quarter 2021 financial results conference call at this time. All participants are gonna listen only mode, question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, Please press star zero on your telephone keypad. As a reminder this conference is being recorded. I would now like to turn the company over to your host Gary Edson with I. C. R. Thank you. You may begin.
spk_1: Thank you, rob and good morning by now everyone should have access to our earnings announcement and investor presentation station, which was released prior to this call, which may also be found on our website at Eagle Point credit company dot com, where we begin our formal remarks, we need to remind everyone that matters discussed on the call include forward looking statements to projected financial information that involves risks and uncertainties that may cause the company's actual results differ materially from those projecting such forward looking statements and projected financial information for further information on factors that could impact the company and the statement and projections contained here in. Please refer to the company's filing with the Securities and Exchange Commission each forward looking statements projection of financial information made during this calls based on information available to us as David. This call, which claimed any obligation to update it for looking statements and what's required by law. We play this called Comey access for 30 days via the company's website, Evil Point credit company dot com. Earlier today, we filed our first quarter 2021 financial statements in our first quarter investor presentation with the Securities and Exchange Commission. Financial statements and our first 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 presentations and events link. As a reminder, Eagle Point income company will also be holding this conference call this morning at 11:30 a.m. Eastern Time. A web link for that event can be found at the investor relations section of www dot eagle point income dot com. Or you can dial in by calling 8774070789 and reference conference I. D 13719174 I would now like to introduce tom Majewski, chief executive officer of a one credit company.
spk_0: Thank you Garrett and welcome everyone to Eagle Point credit companies first quarter earnings skull 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 our portfolio and the underlying corporate loan, a big ours for today's call, I'll provide some high level commentary on the first quarter and some recent events. I'll then turn the call over to ken who will walk us through the first quarter financials, I'll then return to talk a little bit more about the market environment and of course we'll open the call to your questions. We've had a great start to 2021 and frankly, the company is hitting on all cylinders during the first quarter. Nav per share increased by approximately eight ending the quarter at $12.02 per share. That trend continued in April and we estimate are nab at month end to be between 1262 and 1272 per share, Reflecting an additional gain in April of about 5%. At the midpoint of that range, Recurring cash flows on our portfolio in the first quarter were $32.5 million. April's total was $34.2 million, representing a quarter over quarter increase of about 5%. Perhaps even more notably April 2021's total was about 70 greater than our collections. In April 2020, almost all of our c. L. O. S that were scheduled to make payments in april did so as planned. Our net investment income and realized capital gains for the first quarter was $28 per share exceeding the total distributions on our common stock page. During the first quarter, that number is net of a four cent per share charge incurred for recurring and non recurring expenses related to the w 6.75% note issuance without those non recurring expenses, N. Ii and realized gains for the quarter would have actually been 32 cents per common share. We strengthened our balance sheet during the quarter with our new 10 year fixed rate issuance. The notes have a 6.75 coupon. They trade under ticker symbol E CCW. And from that issuance we generated about $43 million of proceeds importantly issuing new 10 year paper and materially extends are weighted average debt maturity, looking at the little at the broader market. The corporate default rate that we're looking at continues to decline. Um The 12 month default rate during the 1st 4, 12 months default rate has fallen significantly. Um During the first four months of 2020 less than five companies have defaulted on their loans frankly. So we're in a very, very low default environment with the year off to an excellent start and the economy.