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Potential Listing for Non-Traded BDC Valued Over $2.4 Billion

Corporate Capital Trust (CCT), a non-traded business development company (BDC) externally managed by CNL and KKR, has indicated a listing is forthcoming.

In a recent job posting seeking a Chief Financial Officer (CFO) for the non-traded BDC, CCT says that “Upon public listing of Corporate Capital Trust, the position [CFO] is anticipated to be solely focused on the publicly traded vehicle.”

See the full posting on CNL’s website here.

Through September 30, 2014, CCT had raised more than $2.16 billion during its continuous public offering. Its total assets at the time were valued at $2.4 billion, which includes investment interests in 112 companies.

Senior debt makes up about 75 percent of CCT’s portfolio and subordinated debt securities account for 19 percent.

In October, CCT issued a tender offer to repurchase up to 4,000,694 shares of its common stock at $10.06 per share. The offer expired November 26th and resulted in 405,722.281 shares, 10 percent of the offer, being validly tendered in which the company purchased for a total price of $4,081,566.19.

For investors who initially purchased shares at $10 a piece, per share returns through the end of Q3 2014 equal 30.2 percent and annualized returns are about 8.4 percent.

Taking additional steps to solidify its financial position, CCT recently sold investments that resulted in a $1.4 million net realized gain. Through the end of the third quarter, its realized net gain on sales totaled $15.7 million.

CCT feels strong about its financial ability to take advantage of opportunities in the debt markets.

“Our balance sheet is well positioned to capitalize on the recent volatility in the debt capital markets in the fourth quarter,” said Steve Shackleford, president of CCT, in a statement.

Michelle Rash, a company spokesperson, indicated CNL’s appreciation of The DI Wire’s interest in this topic, but declined to comment at this time.