Ellington Credit Co 8-K

What Happened

• Ellington Credit Company (EARN) announced on March 30, 2026 that it closed an offering of $50 million aggregate principal amount of its 8.50% Notes due March 30, 2031. Wilmington Trust, National Association is the trustee under the indenture governing the Notes. The underwriters have a 30‑day option to buy up to an additional $7.5 million. The Fund expects the Notes to be listed on the New York Stock Exchange under the symbol “ELLA” and trading to begin within 30 days of original issue.
• The Notes pay interest at 8.50% per year, with quarterly payments on March 30, June 30, September 30 and December 30 beginning June 30, 2026, mature at 100% principal on March 30, 2031, and may be redeemed at the Fund’s option on or after March 30, 2028 at 100% of principal plus accrued interest. The Notes are general unsecured obligations and their ranking vs. other claims (senior, pari passu, subordinated or structurally subordinated) is described in the indenture. The offering was made under the Fund’s effective Form N‑2 registration and the transaction closed March 30, 2026.

Key Details

• Principal amount: $50,000,000 (with underwriter option of $7,500,000 for 30 days).
• Coupon and maturity: 8.50% interest, quarterly payments, maturity March 30, 2031.
• Redemption: Callable by the Fund on or after March 30, 2028 at 100% of principal + accrued interest; no sinking fund; denominations of $25.
• Trustee / documentation: Indenture and first supplemental indenture with Wilmington Trust, N.A.; offering conducted under Form N‑2 registration (pricing term sheet and final prospectus filed).

Why It Matters

• This issuance creates a new unsecured debt obligation for Ellington Credit Company and provides the Fund with additional capital. The 8.50% coupon indicates the financing cost and relative yield for investors compared with other fixed‑income options.
• Investors should note the Notes are general unsecured obligations and are effectively subordinated to any secured debt and structurally subordinated to liabilities of subsidiaries or financing vehicles, which affects recovery priority in a liquidation. The indenture also includes covenants (including compliance with asset coverage rules of the 1940 Act) that may be relevant to fund operations and creditor protections.