Corporate Capital Trust Raises $101 Million in the First Quarter of 2016
Corporate Capital Trust, a non-traded business development company sponsored and advised by CNL Financial Group and KKR, announced its operating results for the quarter ended March 31, 2016. Corporate Capital Trust will host its earnings call to discuss these results today at 1:00 p.m. Eastern Time.
First Quarter 2016 Highlights:
• Originated investments comprised 55.4 percent of total investment activity for the quarter ended March 31, 2016, compared to 37.2 percent during the quarter ended March 31, 2015.
• The company raised $101.3 million from the sale of common stock, and $30.7 million from reinvested distributions. As of March 31, 2016, the company had raised more than $3.3 billion in gross proceeds since its inception.
• For the quarter ended March 31, 2016, the company declared distributions of approximately $59.9 million, or $0.20 per share, compared to $45.8 million, or $0.20 per share, during the quarter ended March 31, 2015.
• Approximately 51 percent of the distributions declared in each of the three months ended March 31, 2016, and March 31, 2015, were reinvested in shares of our common stock representing an additional source of capital.
• Distributions for the quarter were estimated to be fully covered by taxable income available for distribution.
• The company sold investments and received principal payments of $58.8 million and $133.3 million, respectively, during the three months ended March 31, 2016, from which it realized net losses of $12.1 million.
•The total cumulative return on an initial investment of $10,000 made in June 2011, assuming dividend reinvestment, grew by 26.5 percent to $12,650 as of March 31, 2016 (for an annualized return of 5 percent), when including sales load. Excluding sales load, the initial investment grew by 40.6 percent to $14,056 (for an annualized return of 7.4 percent).
Investment Portfolio Update:
Corporate Capital Trust’s investment portfolio consisted of investment interests in 141 companies as of March 31, 2016. The portfolio companies are diversified across multiple industries, with the largest portion invested in capital goods (16.9 percent), software and services (12.9 percent), and retailing (7.6 percent).
The primary investment concentrations included senior debt and subordinated debt securities, which represented 78.4 percent and 12.4 percent, respectively, of the investment portfolio at fair value.
As of March 31, 2016, 77.2 percent of the company’s debt investments, based on fair value, featured floating interest rates, primarily based on London Interbank Offered Rate, and 22.8 percent of the debt investments featured fixed interest rates. Approximately 94.8 percent of the company’s floating interest
rate debt investments had base interest rate floors; the weighted average base interest rate floor was 1 percent.
Recent Events:
In April 2016, the company entered into an amended and restated senior secured revolving credit agreement in the amount of $928 million, with an accordion feature allowing borrowing of up to $1.34 billion. The stated interest rate also improved from Libor plus 2.50 percent to Libor plus 2 percent or
Earnings Call:
Corporate Capital Trust will hold its first quarter earnings call today at 1:00 p.m. Eastern Time. To listen to the call, dial 800-672-8961; a passcode is not required.
Corporate Capital Trust invests in the debt of privately owned American companies. CNL Financial Group is a private investment management firm providing global real estate and alternative investments headquartered in Orlando, Florida. Since inception in 1973, CNL Financial Group and/or its affiliates have formed or acquired companies with more than $33 billion in assets. KKR & Co. L.P. is a global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.
