Ellington Credit adopts tax asset preservation rights plan to protect NOLs

Ellington Credit Co

Plan effective April 23, 2024; triggers at 4.9% ownership to deter Section 382 ownership change.
Expires upon conversion to closed-end fund/RIC (planned later 2024) or April 23, 2025, whichever earliest.
Rights initially trade with common; if triggered, holders (except acquiring person) get 50% discount shares or exchange.
Existing 4.9% holders can keep shares but cannot acquire additional >0.5% without triggering plan.
Board may exempt persons; rights redeemable for $0.01 per right before trigger.

item 1.01 item 3.03 item 5.03 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Governance Changes SEC 8-K Item 5.03/5.05/5.06 confidence 0.9

Ellington Credit Co: Board adopted a Section 382 rights plan to protect NOLs, authorizing a dividend of one preferred share purchase right per common share (effective 2024-04-22).

Change: bylaw amendment
Effective: 2024-04-22

Exact text from the filing

On April 22, 2024, the Board of Trustees (the “Board”) of Ellington Credit Company, a Maryland real estate investment trust (the “Company”), approved the Company's entry into a rights plan and authorized a dividend of one preferred share purchase right (“Right”) for each of the Company's outstanding common shares

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Ellington Credit Co filing history →

Source: SEC EDGAR

accession 0001560672-24-000036

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