Carlyle Credit Income Fund completed a private placement of 17,500 shares of its 7.25% Series E Convertible Preferred Shares due 2030, raising net proceeds of $16.275 million.
The Series E shares carry a $1,000 liquidation preference and a 7.25% annual dividend, payable quarterly. They can be converted into common shares after a six‑month period, with conversion price set at the higher of market price or net asset value per share. The fund can redeem the shares starting May 1 2026 and must redeem them by October 30 2030.
Proceeds will be used to redeem all outstanding shares of the 8.75% Series A Preferred Shares due 2028 on November 3 2025, reducing the fund’s cost of capital, and to support general working capital needs. The redemption price for Series A shares is $25 per share plus accrued 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 transaction follows a pattern of using preferred equity to optimize capital structure, after earlier issuances of Series C and Series D preferred shares in 2025.
Management emphasized that the move aligns with the fund’s strategy to lower interest expense and improve financial flexibility amid a high‑yield market environment.
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