Corporate Capital Trust, a non-traded business development company sponsored and advised by CNL Financial Group and KKR, announced its operating results for the third quarter and nine months ended September 30, 2016.
• Net investment income was $156.7 million, or $0.52 per share for the nine months ended September 30, 2016, as compared to $127.6 million, or $0.52 per share, for the same period in 2015.
• Total cumulative return to shareholders on an initial investment of $10,000 made in June 2011, assuming distribution reinvestment, was 37.7 percent to $13,768 as of September 30, 2016 (for an annualized return of 6.2 percent), when including sales load. Excluding sales load, the cumulate return was 53 percent to $15,2971 (for an annualized return of 8.4 percent).
• Originated investments at fair value totaled approximately $2.6 billion, representing approximately 65 percent of the investment portfolio.
• Proceeds from sales of investments and principal payments totaled $891.7 million, during the nine months ended September 30, 2016.
• For the nine months ended September 30, 2016, the company declared distributions of $183 million, or $0.60 per share, compared to $148.7 million, or $0.60 per share, for the nine months ended September 30, 2015. Year-to-date distributions were estimated to be fully covered by taxable income available for distribution.
• For the nine months ended September 30, 2016, $93 million, or 51 percent of total distributions were reinvested in the company.
• Net asset value increased to $8.97, which is an increase of $0.16 above the second quarter of 2016, and $0.35 above the first quarter of 2016.
Investment Portfolio Update
The company’s investment portfolio, joint venture and total return swap portfolios consisted of investment interests in 157 companies. The portfolio companies are diversified across multiple industries, with the largest portion invested in capital goods (20 percent), software and services (12.8 percent), and diversified financials (8.7 percent).
The primary investment concentration was senior debt, which represented 71.5 percent of the portfolio at fair value. As of Sept. 30, 2016, 79.6 percent of the company’s debt investments, based on fair value, featured floating interest rates, primarily based on LIBOR, and 20.4 percent of the debt investments featured fixed interest rates. Approximately 93.5 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 percent.
On October 14, 2016, the company offered to repurchase up to 7.4 million shares of common stock for $8.97 per share. The tender offer will expire today, November 17, 2016 at 5:00 p.m. Central Standard Time.
In October 2016, the company closed its follow-on offering to new investors. Throughout the course of the offerings, 321.96 million shares of common stock were sold for gross proceeds of $3.44 billion, including reinvestment of distributions. The company will continue to issue shares of common stock pursuant to its distribution reinvestment plan.
Corporate Capital Trust invests primarily in the debt of privately owned companies, with a focus on originated transactions sourced through the networks of its advisors. CNL Financial Group is a private investment management firm providing global real estate and alternative investments. KKR is a global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.