Ellington Credit Company has entered into an equity distribution agreement dated October 23, 2026, with five placement agents. The agreement allows the company to issue and sell common shares of beneficial interest, no par value, through Citizens JMP Securities, LLC, B. Riley Securities, Inc., Lucid Capital Markets, LLC, and Armstrong Securities LLC.
Under the terms of the agreement, the Fund may, but is not obligated to, sell up to $125,000,000 in aggregate offering price of its Common Shares. The shares will be offered and sold pursuant to the company's registration statement on Form N-2, which was declared effective by the Securities and Exchange Commission on October 21, 2026.
Sales of the Common Shares may be made through various methods permitted by law, including at the market offerings as defined in Rule 415. The company intends to use any net proceeds from these sales for general corporate purposes, including to acquire investments in accordance with its investment objectives and strategies.
The Agents will receive commissions from the Fund of up to 2.0% of the gross sales price of any Common Shares sold through them under the Equity Distribution Agreement. Dechert LLP, counsel to the Fund, has provided a legal opinion regarding the legality of the issuance and sale of the Common Shares.
