Shalabh Mehrish's questions to Eagle Point Income Co (EIC) leadership • Q2 2025
Question
Asked about the potential for a special dividend given the new lower distribution rate, questioned the stability of the CLO debt coupon, inquired about a recent decline in the OC cushion, and confirmed the attractiveness of share buybacks at the current discount.
Answer
The company responded that recurring cash flow is now roughly in line with the new distribution level, making a special dividend unlikely unless taxable income significantly exceeds distributions. The CLO debt coupon has been stable due to a wide variety of available opportunities, including wider-spread deals. The OC cushion decline was attributed to the expected Altice default, not widespread downgrades, and remains ample. They strongly affirmed that buying back stock at a double-digit discount is a highly attractive use of capital.