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Corporate Capital Trusts Releases Earnings Report for 2Q15

Corporate Capital Trust, a non-traded business development company sponsored by CNL Financial Group, announced its operating results for the second quarter and the six months ending June 30, 2015.

The financial highlights of the quarter are as follows:

• Net investment income increased by 61 percent to $42.8 million, or $0.17 per share, for the quarter ended June 30, 2015, as compared to $26.5 million, or $0.16 per share, for the same period in 2014. For the six months ended June 30, 2015, net investment income increased 73 percent to $82.0 million, or $0.35 per share, as compared to $47.2 million, or $0.30 per share, for the same period in 2014.

• Total cumulative return to shareholders on an initial investment of $10,000 made in June 2011, assuming distribution reinvestment, grew by 33.0 percent to $13,297 as of June 30, 2015,1 (for an annualized return of 7.3 percent), when including sales load. Excluding sales load, the initial investment grew by 47.8 percent to $14,775 (for an annualized return of 10.2 percent).

• Originated investments at fair value on June 30, 2015, totaled approximately $1.66 billion, representing approximately 51 percent of the total portfolio.

• The company exited investments and received principal payments of approximately $188.8 million and $239.1 million, respectively, during the six months ended June 30, 2015.

• As of June 30, 2015, the company had raised more than $2.81 billion in gross proceeds from the company’s continuous public offering of common stock. Net proceeds to the company from the current common stock public offering and reinvested distributions were $361.2 million for the six months ended June 30, 2015.

• For the six months ended June 30, 2015, the company declared distributions of approximately $95.6 million, or $0.40 per share (26 record dates), compared to $59.9 million, or $0.38 per share (25 record dates), for the six months ended June 30, 2014. Distributions year to date were estimated to be fully covered by taxable income available for distribution.

Corporate Capital Trust’s investment and total return swap portfolios consisted of investment interests in 141 companies as of June 30, 2015. The portfolio companies are diversified across multiple industries, with the largest portion invested in software and services (15.1 percent), consumer durables & apparel (11.3 percent) and capital goods (9.4 percent). The primary investment concentration was senior debt, which represented 79.9 percent of the portfolio at fair value.

As of June 30, 2015, 75.9 percent of the company’s debt investments, based on fair value, featured floating interest rates, primarily based on London Interbank Offered Rate (LIBOR), and 24.1 percent of the debt investments featured fixed interest rates. Approximately 95.3 percent of the company’s floating interest rate debt investments had base interest rate floors; the weighted average base interest rate floor was approximately 1.0 percent as of June 30, 2015. The company had unfunded investment commitments of $230.6 million and $519.2 million in immediate liquidity.

In recent Corporate Capital Trust news, on July 14, 2015, the company commenced an offer to purchase up to 5,424,683 shares of its issued and outstanding common stock for $9.67 per share. The offer will expire Aug. 26, 2015, at 5 p.m. CT, unless extended.

On July 28, 2015, the company’s board of directors declared distribution rates of $0.015483 per share for nine weekly record dates beginning on Aug. 4, 2015, through and including Sept. 29, 2015. With the new offering price, the annualized distribution yield will increase from 7.32 percent to 7.49 percent.

On Aug. 10, 2015, the company’s board of directors decreased the offering price of its common stock from $11.00 per share to $10.75 per share. The offering price decrease was effective for subscriptions accepted after Aug. 4, 2015. The purpose of this action was to ensure that the net asset value per share is not less than 97.5 percent of the net offering price. As a result of the change in the public offering price, the maximum sales load and the net proceeds per share will correspondingly decrease from $1.10 to $1.075 and from $9.90 to $9.675, respectively.

Corporate Capital Trust is a non-traded business development company that provides individuals an opportunity to invest in privately-owned American companies. The company is externally managed by CNL and KKR.

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.