Ellington Credit Company Raises $54M via 8.50% 2031 Notes, Rated BBB
Ellington Credit Company closed an underwritten public offering of $50.0 million aggregate principal amount of 8.50% notes due 2031, with underwriters exercising an additional $4.0 million over-allotment to bring total proceeds to $54.0 million. Rated BBB by Egan-Jones, the notes include a 30-day option for $7.5 million extra.
1. Offering Details
Ellington Credit Company issued $50.0 million of 8.50% unsecured notes due 2031 and saw underwriters partially exercise a $4.0 million over-allotment, bringing total issuance to $54.0 million. Underwriters hold a 30-day option to purchase up to an additional $7.5 million of notes on identical terms.
2. Rating and Listing
The 2031 notes received a ‘BBB’ rating from Egan-Jones Ratings Company, and the company intends to list them on the New York Stock Exchange under the symbol “ELLA.”
3. Use of Proceeds
Net proceeds will be deployed for general corporate purposes, including purchasing additional assets in line with the company’s investment strategies and repaying short-term borrowings under reverse repurchase agreements.
4. Underwriting Syndicate
Piper Sandler & Co. served as lead book-running manager, with Lucid Capital Markets LLC and A.G.P./Alliance Global Partners as joint book-runners, and B. Riley Securities, Clear Street LLC and Muriel Siebert & Co. as lead managers.