Corporate Capital Trust Planning to List Shares Sooner than Expected
Corporate Capital Trust, a non-traded business development company sponsored by CNL Financial Group and KKR & Co., is taking steps to list its shares sooner than previously planned, according to a filing with the Securities and Exchange Commission.
As previously reported by The DI Wire, the company was planning to list its shares within a 12-month timeframe but is now taking steps to execute a listing shortly after receiving shareholder approvals for proposals that will be voted on at the annual Meeting of stockholders scheduled for August 3rd.
Corporate Capital Trust recently filed an application with the New York Stock Exchange to list its shares of common stock under the symbol “CCT.”
The company also decreased its annualized per share distribution rate by $0.09 from $0.805 to $0.715. The change in the distribution rate is intended to align the distribution rate to the company’s net investment income, the company said.
Corporate Capital Trust noted that the distribution rate change is expected to more closely align the company with its listed BDC peers, and post listing, the company plans to move from monthly to quarterly distributions.
Corporate Capital Trust expects to issue two special cash distributions totaling $0.09 per share to supplement the new distribution rate. The first special distribution of $0.045 per share is anticipated to be paid on or around December 31, 2017 and the second special distribution of $0.045 per share should be paid within six months following the listing.
The company also expects to terminate or suspend its distribution reinvestment plan before listing its shares, but will pay shareholders in cash should a distribution be declared before an amended DRP is adopted.
Corporate Capital Trust plans to end its quarterly share repurchase program after it completes its latest tender offer that is scheduled this month. However, the company said that it expects to conduct a “sizeable tender offer” to shareholders at the time of the listing which will remain open for at least 20 business days.
If the proposals and related listing is approved, Corporate Capital Trust will likely become the third-largest traded business development company in the country.
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. Corporate Capital Trust’s investment portfolio, totaled $3.9 billion as of the first quarter of 2017.
