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Ellington Credit Confirms April 1 Conversion Date

1. EARN will convert to a Delaware-registered closed-end fund by April 2025. 2. The conversion includes selling Agency MBS pools and acquiring CLOs.

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Why Bullish?

The conversion to a closed-end fund may enhance EARN's investment strategy, similar to past conversions that improved market positions for similar companies. Historically, such moves have led to improved investor confidence.

How important is it?

The strategic shift towards CLOs and compliance with regulations signifies a substantial change in EARN's operational framework, potentially increasing its attractiveness to investors.

Why Long Term?

The full benefits of the conversion will likely be realized post-effective date in April 2025, influencing long-term investment strategies and perceptions.

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CLOAGNCNRZ
OLD GREENWICH, Conn.--(BUSINESS WIRE)--Ellington Credit Company (NYSE: EARN) (the “Company”) announced today it has obtained all necessary approvals from its Board of Trustees and shareholders to convert to a Delaware-registered closed-end fund, effective April 1, 2025 (the “Conversion”). Upon effectiveness of the Conversion, the Company intends to sell its remaining Agency MBS pools, acquire additional CLOs, and operate in compliance with the Investment Company Act of 1940. Laurence Penn, Chie.

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