EIIA Is a Preferred: Common Tender Price Fell From $9.62 to $5.34

Which EIIA do you mean?

Quote pages list EIIA as a stock. It is one of three securities of the same fund, and only one of them is in the tender. The fund’s own report describes the preferred as “NYSE: EIIA” and the Series B as unlisted, and the Offer to Purchase says “There is no established trading market for the Shares.”

The $25.19 is the fund’s own figure, an average of closing prices that it uses in the senior securities table. At June 30, 2026 each Series A share was covered by $67.93 of assets against its $25.00 liquidation preference (asset coverage on all preferred: 272%, down from 287% at December 31, 2025). The Series A first became callable at the fund’s option on October 19, 2026. We found no redemption notice among the fund’s EDGAR filings through October 24, 2026; a press release would not appear there. A preferred holder is in a different position from a common holder: the preferred can be sold on the NYSE on any trading day, the common cannot be sold anywhere except in a tender.

What the Offer to Purchase says about price and proration

The tender price is not a discount to NAV. Exhibit B to the Schedule TO-I filed August 27, 2026, the Offer to Purchase, sets the price at NAV itself: “each Share tendered for purchase will be purchased at the net asset value per Share calculated as of the Valuation Date.”

The practical effect is that a holder who sends in the Letter of Transmittal by September 25 cannot withdraw after that date and learns the price only on or after September 30. Proration is a right the fund keeps, not a rule it promises: the offer does not say what share of each holder’s request would be bought if requests passed 5%, only that any proration would be by aggregate NAV tendered by each shareholder.

Seventeen offers since August 2022

The fund has opened 17 quarterly offers. The first four, from August 2022 to May 2023, drew no shares. The next 13 each drew some, and every final amendment says the fund “accepted for payment all of the Tendered Shares.” The price paid per share fell from $9.62 on December 30, 2024 to $5.34 on September 30, 2026, a 44.5% drop in 21 months (our arithmetic). From the highest price paid, $10.29 on March 28, 2024, the fall is 48.1% (our arithmetic).

The offer NAV is the per-share NAV on the last month-end before the offer opened, from Item 2(b) of each Schedule TO-I. The request against the limit divides the amount paid by 5% of the aggregate NAV in the same item; the offer’s own base is the NAV at the prior calendar quarter end, so the percentage is approximate. For the August 2024 offer the table uses the November 4, 2024 amendment (see the section on conflicts below). In total the 13 offers bought about 2.44 million shares for $18.17 million (our sum).

Two readings of the table. First, the price at valuation was below the month-end NAV printed in the offer in 10 of 13 offers, in a falling market by 3.1% to 20.4% in the last five. The one large rise, 10.5% in the May 2025 offer, followed a fall in month-end NAV to $7.74 on April 30, 2025. Second, the requests are small against the limit: the last three offers used 31.6%, 32.5% and 30.1% of it, so nothing has tested the proration language.

Why the price fell

The tender price is the NAV, so the question is what moved NAV. The semi-annual report of June 30, 2026 gives five periods.

Net investment income per share is on a weighted-average share count and the gains and losses line is a balancing figure, so the columns do not add exactly. The fund also reports that 2025 distributions of $1.00 included $0.18 of return of capital, and that the first-half 2026 distributions were estimated at $0.50 from net investment income, an estimate that can change when the tax return is final. The fund counts something else as coverage: “recurring cash flows from our investment portfolio of $17.2 million, or $0.94 per weighted average common share,” which it says exceeded distributions and expenses. Both are the fund’s numbers; they measure different things, and the filings do not reconcile them.

On the cause, the shareholder letter says that uncertainty about artificial intelligence and software borrowers and geopolitical developments “weighed on leveraged loan prices and CLO valuations during the first quarter” of 2026, with a recovery in the second. Leverage magnifies a move like that: investments were 138.61% of net assets at June 30, 2026, CLO equity 80.65%, CLO debt 22.98%, and $65.0 million of preferred sat ahead of the common. The filings do not split the 2026 loss between credit losses and market marks.

The payout looks different on a $5.34 price. The fund pays $0.083 a month; it states an annualized rate of 17.4% on the June 30 NAV of $5.71, and the same $0.996 a year is 18.7% of $5.34 (our arithmetic). Since inception the fund had paid $3.84 a share by June 30, 2026. A share bought at the $10.00 starting NAV that was still worth $5.71 had returned $9.55 in NAV plus payouts, before sales load, reinvestment and timing (our arithmetic).

What it costs to get in, and who is buying

The common shares are sold continuously at NAV plus a sales load of up to 6.75%, up to 6.0% selling commission and up to 0.75% dealer manager fee. The dealer manager is Eagle Point Securities LLC, an affiliate of the adviser, and it earned $2.3 million of sales loads in 2025. The adviser charges 1.75% of managed assets (total assets including leverage) plus an incentive fee with a 2.00% a quarter hurdle. The adviser, its affiliates and senior team held 9.3% of the common shares at June 30, 2026.

Distribution reinvestment added 696,854 shares ($5.6 million) in 2025 and 658,861 ($3.8 million) in the first half of 2026, at a 5% discount to NAV per share. The fund’s performance table in the annual report for 2025 shows the cost of the load:

The fund is not a BDC; it picked the index for comparison because BDCs also hold high-yield credit. For the same adviser’s listed CLO-equity fund, see our Eagle Point Credit Company (ECC) page; the closest listed peer is on our Oxford Lane Capital (OXLC) page.

Where the filings disagree

Prices agree everywhere. The 433,306.355 shares at $7.15 multiply to $3,098,140.44, which is the amount the final amendment reports, so that filing is internally consistent; the 382,069 in the semi-annual report is 51,237 shares lower, and the filings do not say why. A holder checking a confirmation statement should compare it with the final amendment for that offer.

What a reader can do with this

• If you hold the common shares and want out: the offer documents describe one route, the quarterly tender, and say the fund’s board has “sole discretion” over whether to run one. The last four opened on November 28, 2025, February 27, 2026, May 28, 2026 and August 27, 2026. No offer for the quarter ending December 31, 2026 had been filed on October 24, 2026. If the fund keeps its pattern, the next Schedule TO-I would come in late November 2026; that is a pattern, not a commitment. See the dates on our Q4 2026 redemption and tender deadlines page.
• Before you tender: the price is NAV at the valuation date, not the month-end NAV in the offer. The two differed by up to 20.4% in the last 13 offers. A sale is taxable; the offer text covers Section 302(b), the 30-day wash sale window and average-cost basis reporting, and our wash sale page shows how the window works for tenders.
• If you hold EIIA, the preferred: it is a separate security with a market price, an 8.125% rate and a $25 liquidation preference, and the fund may redeem it from October 19, 2026. It is not what the tender buys.
• To compare the structure: every offer in the quarter is on our tender offer census and the BDC results are on our Q3 2026 BDC tender results page.
• What to read next: the next Schedule TO-I and its final amendment, the annual report on Form N-CSR for 2026 (due in early 2027), and the fund’s monthly Section 19(a) notices.

FAQ

All figures are from the filings cited, read on EDGAR on October 24, 2026: the Schedule TO-I and Offer to Purchase of August 27, 2026, the 17 offers and their final amendments from August 2022 to October 22, 2026, the Form 8-A12B and prospectus of October 2024, the annual reports on Form N-CSR for 2024 and 2025 and the semi-annual report for the six months to June 30, 2026. Percentages, price changes against the offer NAV and requests against the 5% limit are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.