Carlyle Credit Income Fund issues convertible preferred shares

Carlyle Credit Income Fund (NYSE: CCIF) entered into a purchase agreement with institutional investors for approximately 17,500 shares of 7.25% Series E Convertible Preferred Shares due 2030, according to a company statement. The fund expects to receive net proceeds of approximately $16.275 million from the sale, with closing expected around October 30, 2025.

The convertible preferred shares carry a liquidation preference of $1,000 per share and pay quarterly dividends at a fixed annual rate of 7.25%, or $72.50 per share annually. The fund must redeem all outstanding convertible preferred shares on October 30, 2030, at the liquidation preference plus accumulated unpaid dividends.

Starting May 1, 2026, the fund may redeem the shares in whole or part at its discretion. Holders can convert their shares into common shares six months after issuance, with the conversion price determined by the greater of either the average closing price over five trading days prior to conversion or the fund's most recent net asset value per common share.

The convertible preferred shares will not be listed on any exchange and cannot be transferred without the fund's consent. The offering was conducted directly without placement agents or underwriters.

The fund plans to use net proceeds to redeem its outstanding 8.75% Series A Preferred Shares Due 2028 (NYSE: CCIA) and for general working capital. The fund announced it will redeem all Series A Preferred Shares on November 3, 2025, at $25 per share plus accumulated unpaid dividends.

Carlyle Credit Income Fund is an externally managed closed-end fund that invests primarily in equity and junior debt tranches of collateralized loan obligations. The fund is managed by Carlyle Global Credit Investment Management L.L.C., a subsidiary of Carlyle.

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