— Total return from June 2011 through June 30, 2013, was 27 percent (1) —
(ORLANDO, Fla.) Aug. 20, 2013 – Corporate Capital Trust, a business development company that offers individuals the opportunity to invest in the debt of privately owned American companies, has released its financial results for the quarter ended June 30, 2013.
“We are pleased with the performance of the company over the past quarter and are excited about the addition of directly originated transactions to the portfolio,” said Andy Hyltin, CEO of Corporate Capital Trust. He added, “We now have over $1.4 billion in assets and over $650 million is invested in primary issuance and originated transactions. The continued growth and development of the portfolio is a testament to the breadth of the investment platform, the effective investment process, and the strength of the partnership between CNL and KKR.”
Second Quarter and Year-to-Date Highlights
- Total investment return was 4.3 percent (2) for the six months ended June 30, 2013.
- Total cumulative return on initial investment from June 2011 through June 30, 2013 was 27 percent.(1)
- Corporate Capital Trust has invested more than $650 million in primary issuance transactions.(3)
- After being granted exemptive relief on May 23, 2013, which expanded its ability to co-invest in privately negotiated transactions with other investment funds affiliated with KKR, the company invested $46.7 million in a directly originated co-investment transaction.
- The company’s allocation to senior debt securities was 71.4 percent, and the allocation to subordinated debt was 28.5 percent at quarter end.(3)
- Corporate Capital Trust paid distributions of $17.8 million in the second quarter of 2013, which were primarily covered by estimated taxable income.
- As of June 30, 2013, the company had raised more than $1.1 billion since inception from its initial offering of common stock, $232.6 million of which was raised during the second quarter of 2013.
| Financial and Operational Highlights
|
($ in millions except per share data) |
|||
| Quarter Ended June 30, |
2013 |
|
2012 |
|
| Total assets: | $ |
1,409.92 |
$ |
426.67 |
| Borrowings – credit facility: | $ |
169.44 |
$ |
77.94 |
| Borrowings – TRS deemed senior securities: | $ |
33.03 |
N/A |
|
| Total net assets: | $ |
1,012.02 |
$ |
284.03 |
| Net asset value per share: | $ |
9.78 |
$ |
9.64 |
| Leverage ratio (borrowings/adjusted total assets): |
17% |
|
21% |
|
|
|
|
|
||
| Portfolio Activity for the Quarter Ended June 30, |
2013 |
|
2012 |
|
| Cost of investments purchased: | $ |
549.05 |
$ |
208.48 |
| Sales, principal payments and paydown proceeds: | $ |
256.66 |
$ |
24.29 |
| Number of portfolio companies at end of period(3) : |
109 |
|
141 |
|
| Number of investment positions at end of period(3) : |
138 |
|
185 |
|
Investment Portfolio Update (3)
As of June 30, 2013, the investment portfolio consisted of investment interests in 109 portfolio companies. The primary investment concentrations included senior debt and subordinated debt securities, which represented 71.4 percent and 28.5 percent, respectively, of the debt portfolio at fair value, excluding Corporate Capital Trust’s short-term investments. The debt investments in the portfolio were purchased at an average price of 99.7 percent of par value or stated value.
As of June 30, 2013, 60 percent of the company’s debt investments, based on fair value, featured floating interest rates, primarily based on London Interbank Offered Rate (Libor), and 40 percent of the debt investments featured fixed interest rates. Approximately 89.5 percent of the company’s floating interest rate debt investments had base interest rate floors; the weighted average base interest rate floor was 1.24 percent as of June 30, 2013.
Recent Events
On June 28, 2013, Corporate Capital Trust, along with its advisors, sourced and funded a directly originated co-investment transaction for $46.7 million. Since then the company has participated in three other originated co-investment transactions totaling more than $125 million.
(1) Corporate Capital Trust’s net asset value per share was $9.00 and $9.78 on June 17, 2011, and June 30, 2013, respectively. After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.37, $0.76, $0.39 per share in the period of June 17, 2011, (inception) to Dec. 31, 2011, the year ended Dec. 31, 2012, and the six months ended June 30, 2013, respectively, and (iii) the assumed reinvestment of those distributions at 90 percent of the prevailing offering price per share, then the total investment return was 27 percent for shareholders who held Corporate Capital Trust shares from June 17, 2011, (inception) through the quarter ended June 30, 2013. (This cumulative return does not take into account any sales load that was incurred by our shareholders.)
(2) Corporate Capital Trust’s net asset value per share was $9.75 and $9.78 on Dec. 31, 2012, and June 30, 2013, respectively. After considering (i) the overall changes in net asset value per share, (ii) paid distributions of approximately $0.39 per share in the six months ended June 30, 2013, and (iii) the assumed reinvestment of those distributions at 90 percent of the prevailing offering price per share, then the total investment return was 4.3 percent for shareholders who held Corporate Capital Trust shares over the entire six months ended June 30, 2013. (This calculation does not take into account any sales load that was incurred by our shareholders.)
(3) The information presented provides analysis of Corporate Capital Trust’s investment portfolio which includes total return swap (“TRS”) reference assets. These are assets owned and held by counterparty to a TRS agreement. Please see our prospectus for additional information concerning the TRS agreement.
About Corporate Capital Trust
Corporate Capital Trust is an innovative non-traded business development company that offers individuals an opportunity to invest in privately owned American companies. The Company is externally managed by CNL and KKR and its investment objective is to provide shareholders with current income, capital preservation and, to a lesser extent, long-term capital appreciation. The Company intends to meet its investment objective by investing primarily in the debt of privately owned companies, with a focus on originated transactions sourced through the networks of its advisors. For additional information, please visit www.CorporateCapitalTrust.com.
About CNL Financial Group
CNL Financial Group is a leading private investment management firm providing global real estate and alternative investments. Since inception in 1973, CNL Financial Group and/or its affiliates have formed or acquired companies with more than $28 billion in assets. CNL Financial Group is headquartered in Orlando, Florida. For more information, visit www.CNL.com.
About KKR & Co. L.P.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $83.5 billion in assets under management as of June 30, 2013. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platform. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR’s website at www.KKR.com.
This is not an offer. Securities can be offered only by the prospectus which must accompany or precede this advertisement. Since investing in Corporate Capital Trust is not suitable for all investors, the prospectus should be read carefully by an investor before investing. Investors are advised to consider the investment objectives, risks, charges, and expenses before investing. The prospectus, which is available at www.sec.gov, www.CorporateCapitalTrust.com or may be obtained by calling 866-650-0650, contains this and other information about Corporate Capital Trust. Broker/Dealers are reminded that communications to any person must be accompanied or preceded by a prospectus in accordance with the Securities Act of 1933, as amended. Neither the SEC, the Attorney General of the State of New York nor any other regulatory agency has passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense. Managing Dealer of Corporate Capital Trust is CNL Securities, Member FINRA/SIPC.
The information in this press release may include “forward-looking statements.” These statements are based on the beliefs and assumptions of Corporate Capital Trust’s management and on the information currently available to management at the time of such statements. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law. Forward-looking statements generally can be identified by the words “believes,” “expects,” “intends,” “plans,” “estimates” or similar expressions that indicate future events. Important factors that could cause actual results to differ materially from Corporate Capital Trust’s expectations include those disclosed in the current prospectus for the public offering of Corporate Capital Trust’s common stock.
CNL Fund Advisors Company (CNL) and KKR Asset Management LLC (KKR) are affiliates of CNL Financial Group and KKR & Co. L.P., respectively.
###