Eagle Point Income Co Inc | 7.75% Series B Term Preferred Stock Due 2028 (EICB)
Prospectus excerpt: We are offering 1,130,500 shares of our 7.75% Series B Term Preferred Stock due 2028, or the “Series B Term Preferred Stock.” We are required to redeem all outstanding shares of the Series B Term Preferred Stock on July 31, 2028, at a redemption price of $25 per share, or the “Liquidation Preference,” plus accumulated but unpaid dividends, if any, to, but excluding, the Mandatory Redemption Date (as defined below). At any time on or after July 31, 2025, we may, at our sole option, redeem the outstanding shares of the Series B Term Preferred Stock at a redemption price per share equal to the Liquidation Preference plus accumulated but unpaid dividends, if any, to, but excluding, the Redemption Date. In addition, if we fail to maintain asset coverage (as defined in Section 18(h) of the 1940 Act) of at least 200%, we will be required to redeem the number of shares of our preferred stock (which at our discretion may include any number or portion of the Series B Term Preferred Stock) that, when combined with any debt securities redeemed for failure to maintain the asset coverage required by the indenture governing such securities (if applicable), (1) results in us having asset coverage of at least 200%, or (2) if fewer, the maximum number of shares of preferred stock that can be redeemed out of funds legally available for such redemption. In connection with any redemption for failure to maintain such asset coverage, we may, in our sole option, redeem such additional number of shares of preferred stock that will result in asset coverage up to and including 285%. We intend to pay monthly dividends on the Series B Term Preferred Stock at an annual rate of 7.75% of the Liquidation Preference, or $1.9375 per share per year, beginning on August 31, 2023. The Series B Term Preferred Stock will rank senior in right of payment to our common stock, will rank equally in right of payment with any shares of preferred stock (including our 5.00% Series A Term Preferred Stock due 2026 (the “Series A Term Preferred Stock”)) we have issued or may issue in the future and will be subordinated in right of payment to our existing and future indebtedness. Each holder of the Series B Term Preferred Stock will be entitled to one vote on each matter submitted to a vote of our stockholders, and the holders of all of our outstanding preferred stock and common stock will generally vote together as a single class. The holders of shares of the Series B Term Preferred Stock (together with the holders of our Series A Term Preferred Stock and any additional series of preferred stock we may issue in the future) are entitled as a class to elect two of our directors and, if dividends on any outstanding shares of our preferred stock are in arrears by two years or more, to elect a majority of our directors (and to continue to be so represented until all dividends in arrears have been paid or otherwise provided for).
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