Ellington Credit Company filed a current report on October 27, 2026, disclosing that it entered into an equity distribution agreement on October 23, 2026, allowing the sale of up to $125,000,000 in common shares through an at-the-market offering.

Key Highlights

  • Offering size: The Fund may issue and sell up to $125,000,000 in aggregate offering price of its common shares of beneficial interest, no par value.
  • Agreement date: The Equity Distribution Agreement was dated and entered into on October 23, 2026.
  • Agents: Four agents are named: Citizens JMP Securities, LLC; B. Riley Securities, Inc.; Lucid Capital Markets, LLC; and Armstrong Securities LLC.
  • Commission rate: Agents will receive commissions of up to 2.0% of the gross sales price of any common shares sold through them.
  • Offering type: Sales may be made as an "at the market offering" as defined in Rule 415 under the Securities Act of 1933, including directly on or through the New York Stock Exchange.
  • Registration statement: The offering is made pursuant to a Form N-2 registration statement (File Nos. 333-298702 and 811-24071), declared effective by the SEC on October 21, 2026.
  • Use of proceeds: The Fund disclosed it intends to use any net proceeds for general corporate purposes, including to acquire investments in accordance with its investment objectives and strategies.

Ellington Credit Establishes At-the-Market Program With Four Broker-Dealers

According to the filing, Ellington Credit Company (NYSE:EARN) entered into an equity distribution agreement on October 23, 2026, with its investment adviser, Ellington Credit Company Management LLC, its administrator, Ellington Credit Company Administration LLC, and four broker-dealer agents. Under the agreement, the Fund may, but has no obligation to, issue and sell common shares of beneficial interest from time to time at up to $125,000,000 in aggregate offering price. The filing notes that the Fund is not obligated to make any sales under the agreement.

The common shares, if sold, will be offered pursuant to a Form N-2 registration statement initially filed on September 1, 2026, amended by a pre-effective amendment dated October 19, 2026, and declared effective by the Securities and Exchange Commission on October 21, 2026. The accompanying prospectus is dated October 19, 2026, and the prospectus supplement is dated October 23, 2026. According to the filing, sales may be made by any method permitted by law and deemed an at-the-market offering, including sales directly on or through the New York Stock Exchange, through a market maker other than on an exchange, at prevailing market prices, at prices related to prevailing market prices, or at negotiated prices.

The Equity Distribution Agreement, the filing states, contains "customary representations, warranties, covenants, indemnification obligations of the Fund and the Agents, including for liabilities under the Securities Act, and other obligations of the parties." The filing further notes that the representations, warranties, and covenants in the agreement "were made only for purposes of such agreement, were solely for the benefit of the parties to such agreement, and may be subject to limitations agreed upon by the contracting parties." Dechert LLP issued a legal opinion relating to the legality of the issuance and sale of the common shares, a copy of which is attached as Exhibit 5.1 to the filing.

What Was Disclosed

Ellington Credit Company disclosed the entry into an at-the-market equity distribution agreement dated October 23, 2026, permitting sales of up to $125,000,000 in common shares through four named agents at commissions of up to 2.0% of gross sales price.